Earnings have been driving stocks higher, said Pete Najarian, co-founder of Optionmonster.com and Trademonster.com, on CNBC's "Fast Money Halftime" show. While the S&P 500 ETF (SPY) - Get SPDR S&P 500 ETF Trust Report is down slightly on Monday, the ETF is up a whopping 8% on the month.
Najarian also pointed out that the CBOE Volatility Index I:VIX is down 40% so far in October.
Jim Lebenthal, CFO and CIO of Lebenthal & Company, pointed out that Amazon's (AMZN) - Get Amazon.com, Inc. Reportstrong earnings results are weighing on bricks-and-mortar retailers. Traditional retailers without a strong e-commerce presence will struggle, he added. The fourth quarter will need to be strong for this sector to do well going forward.
Amazon shares surged following its earnings report last week. In fact, many tech companies have seen their share price rise. But one name in particular hasn't -- Apple (AAPL) - Get Apple Inc. (AAPL) Report .
Josh Brown, CEO and co-founder of Ritholtz Wealth Management, explained that because Apple is so big, its stock price can take a while to go higher or lower. A lot of investors already own the stock, and have big positions, he said. So while it may seem hard to believe, it's difficult for investors to go out and buy even more stock.
It doesn't help that Apple is lacking a catalyst to boost its stock higher. The iPhone 6 was wildly successful, Brown said. But not a lot of investors are optimistic that the iPhone 6s will meet or exceed the previous phone's success. It doesn't mean the stock is bad -- it still has a great dividend and buyback -- but it just means it may have trouble rallying.
It all comes down to Apple's holiday guidance, added Joseph Terranova, senior managing partner at Virtus Investment Partners. He's not too worried about Apple, but more so for its suppliers, which are very reliant on the tech giant.
Investors are selling Apple stock lower on Monday, pushing it down more than 3%. Najarian said this is mainly due to the poor earnings results from Dialog Semiconductor (DLGNF) . While it's an Apple supplier, investors may be acting too quickly to sell Apple on Dialog's results, especially when other suppliers have come out with strong results, Najarian said.
Apple reports earnings on Tuesday, so investors will find out soon enough how the company is doing. For his part, TheStreet's Jim Cramer said he is staying long Apple in his charitable trust, the Action Alerts PLUS portfolio.
Health care companies are starting to report earnings this week too. Najarian expects good results from the likes of Merck (MRK) - Get Merck & Co., Inc. (MRK) Report , Bristol-Myers Squibb (BMY) - Get Bristol-Myers Squibb Company Report and Pfizer (PFE) - Get Pfizer Inc. Report , but acknowledged that most of the focus will be on guidance and the companies' pipelines.
Terranova likes medical device companies like McKesson (MCK) - Get McKesson Corporation (MCK) Report , Medtronic (MDT) - Get Medtronic Plc (MDT) Report and Perkin-Elmer (PKI) - Get PerkinElmer, Inc. Report .
The conversation turned to housing, when Bill Pulte, CEO of Pulte Capital Partners, reacted to news that real estate titan Sam Zell will sell 23,000 apartment complexes for $5.4 billion.
Pulte called Zell a "smart" investor and said he agrees with the move. With rent prices rising so much, it's very possible for the market to plateau going forward, he rsaid. In general, the housing market faces some difficulties.
Pulte explained that while he's "optimistically cautious" and "still fundamentally believes very strongly in the housing market," a lack of supply in housing is causing home prices to climb too high. Without a robust economy, it's unlikely the housing market will take off the way that many investors are hoping.
The truth is, without a strong economy, it's very hard for consumers to put down 20% on a new house, Pulte said. Today's high housing prices are more indicative of a lack of supply rather than strong demand. However, do-it-yourself and home remodels will likely to remain strong, as consumers continue to invest in their homes, he said. Pulte likes Fortune Brands Home & Security (FBHS) - Get Fortune Brands Home & Security, Inc. Report and American Woodwork (AMWD) - Get American Woodmark Corporation Report .
Najarian also believes in the remodel story, saying he expects Home Depot (HD) - Get Home Depot, Inc. (HD) Report and Lowe's (LOW) - Get Lowe's Companies, Inc. (LOW) Report to go higher. Brown likes Lennar (LEN) - Get Lennar Corporation Class A Report and D.R. Horton (DHI) - Get D.R. Horton, Inc. Report .
At the time of publication, Cramer's Action Alerts PLUS had a long position in AAPL.