Robyn Karnauskas, biotechnology analyst at Deutsche Bank, said the big theme among biotech companies is creating drugs that address big markets, such as the different liver diseases. She likes Achillion Pharmaceuticals (ACHN) , which is developing treatments for Hepatitis C. A similar peer to ACHN is Idenix Pharmaceuticals (IDIX) , which was recently purchased by Merck (MRK) .
She also likes Intercept Pharmaceuticals (ICPT) , which is developing a treatment for nonalcoholic steatohepatitis. Arrowhead Research (ARWR) could also be an attractive takeover target if its Hepatitis B drug data, which is scheduled to be released this fall, is positive.
Najarian said stocks like Amgen (AMGN) and Celgene have reasonable valuations and strong growth. He likes them on the long side.
Grasso reminded investors that biotech stocks can be volatile. He suggested using the iShares Nasdaq Biotechnology ETF (IBB) to diversify the risks.
Amazon (AMZN) announced that it will purchase Twitch for $970 million. Grasso said he likes the company's move into the gaming and video segment.
Burger King Worldwide (BKW) is in talks to purchase Tim Hortons (THI) and both stocks climbed roughly 20%. Seymour said this is a great deal for Tim Hortons and will benefit Burger King from a tax perspective. Najarian said it will help BKW boost its breakfast and coffee segments as well its exposure in Canada.
Adami said he still finds Burger King cheap, even after Monday's rally. If forced to choose between Burger King and McDonald's (MCD) as investment, Grasso is a buyer of McDonald's.
Dennis Gartman, editor and publisher of The Gartman Letter, was a guest on the show. Despite WTI crude prices falling 12% in the past two months, he said there is more downside ahead, possibly to $85. Until the front month contracts stop trading at lower prices than the back month contracts, the commodity is unlikely to rally.
However, Gartman is a buyer of natural gas, saying that bad news is no longer sending the commodity lower -- a sign that a bottom has been put in. He argued that below $4.00 BTU, natural gas seems attractive. Turning to soft commodities, he said grain rallies should be sold. But due to the bountiful harvest, consumer should enjoy lower meat and crop prices in the future.
Najarian said companies that have both oil and gas operations may be able to withstand falling crude oil prices.