Brian Kelly, founder of Brian Kelly Capital, pointed out that the bond market sold off on Tuesday morning despite the positive economic news. However, geopolitical issues continue to weigh on stocks, which is why he sold-short German equities.
Guy Adami, managing director of stockmonster.com, said geopolitical issues haven't helped the stock market but neither have the transport sector or small-cap indices. He said the S&P 500 could decline to 1,860.
Dan Nathan, co-founder and editor of riskreversal.com, argued that small-cap stocks actually held up relatively well on Tuesday compared to the broader market. However, it's concerning that the financial sector has not participated in the rally.Read More: Disney Sees Record Profits With ‘Frozen' Success and Franchises to Come Karen Finerman, president of Metropolitan Capital Advisors, said markets seem poised to rally once the "noise" of the Ukraine-Russia situation is in the past. The energy sector declined 2%. Adami and Finerman said Eaton (ETN) is beginning to look attractive on a valuation basis, but could decline further before becoming a buy. Kelly said a lot of good news is already priced into shares of Intel (INTC) and he is not a buyer at current levels.
Nathan agreed with Kelly, adding the company has a great balance sheet and solid dividend yield but the stock has moved too much to the upside. Adami added that when margins peak at Intel, typically the stock price does, too. That may be the case today. Sucharita Mulpuru, vice president and principal analyst at Forrester Research, discussed the brutal selloff in shares of Groupon (GRPN) in the after-hours session. Read More: Jim Cramer's 'Mad Money' Recap: It's Russia's Fault She said the company's move into fashion items and its acquisition of Ideeli have been a drag on the overall business. She added that Groupon's "goods" business is also very capital-intensive but has promise over the longer term.