Skip to main content

NEW YORK (TheStreet) -- The S&P 500 fell roughly 1% in the morning before closing flat in Thursday's session. 

On CNBC's "Fast Money" TV show, Steve Grasso, director of institutional sales at Stuart Frankel, said Thursday's price action did not feel like "aggressive buying." The S&P 500 still seems like it could decline to the 200-day moving average, especially if it fails to climb above its 100-day moving average in the next few days. 

Tim Seymour, managing partner of Triogem Asset Management, said that while global economies are questionable the U.S. economy is doing well and the labor market looks "very healthy."

Karen Finerman, president of Metropolitan Capital Advisors, said when the CBOE Volatility Index I:VIX climbs above $17 it's time to be a seller of volatility, although she  admitted that it's hard to do. She finally took off her long S&P 500, short Russell 2000 trade that she's had on since November. 

Dan Nathan, co-founder and editor of riskreversal.com, said the S&P 500's reversal was "impressive" but there still seems like more downside ahead.

Lori Calvasina, small- and mid-cap U.S. equity analyst at Credit Suisse, said she is "very, very worried about the mid-cap space at the moment," arguing that it has the worst valuation in U.S. equities. Large-caps look the most attractive, followed by small-caps, she concluded. 

Finerman said she likes health care stocks such WellPoint (WLP) . Seymour said he likes large-cap tech stocks. He added that small-caps look oversold near current levels. 

Ben Kallo, senior equity research analyst at R.W. Baird, has an outperform rating and $275 price target on shares of Tesla Motors (TSLA) - Get Tesla Inc Report . He expects the Model X to be unveiled next week, along with an all-wheel-drive version of the Model S, which should boost the average selling price of the model. He said analysts still seem to have their delivery estimates for 2015 too low. The stock may be hard for some investors to buy after the big run but it's definitely not a stock to short, he concluded. 

Seymour said capital spending for Tesla is going to rise, not fall as many investors are hoping. He called the Gigafactory a "money pit." Grasso said China could be a very bullish catalyst for the company, especially if it has strong orders. 

Paul Sankey, managing director at Wolfe Research, said WTI crude oil would need to decline significantly in order for there to be a major reduction in oil production. His top picks include EOG Resources (EOG) - Get EOG Resources, Inc. Report , Hess (HES) - Get Hess Corporation Report , Western Refining (WNR) and Marathon Oil (MRO) - Get Marathon Oil Corporation Report

Seymour said there appears to be upside in natural gas. He likes Devon Energy (DVN) - Get Devon Energy Corporation Report and ConocoPhillips (COP) - Get ConocoPhillips Report . Grasso likes Anadarko Petroleum (APC) - Get Anadarko Petroleum Corporation Report , Occidental Petroleum (OXY) - Get Occidental Petroleum Corporation Report and Marathon Oil, as well as the service stocks. 

CBNC's Meg Tirrell said Chimerix (CMRX) - Get Chimerix, Inc. Report could have an Ebola treatment, based on one of its other treatments against various viruses, including smallpox. The drug has already been tested in humans and could be viewed as a "safer play" by a large agency looking to stockpile it, a move that could be worth $100 million for the company. 

Seymour said most investors do not have enough in-depth knowledge to invest in specific biotech companies for Ebola treatments. He pointed out that airline stocks bounced back on Thursday after Wednesday's Ebola-related scare. 

Grasso said he is a buyer of the iShares Nasdaq Biotechnology ETF (IBB) - Get iShares Biotechnology ETF Report because it offers investors diversification. 

Nathan pointed out the bearish put option activity in shares of Transocean (RIG) - Get Transocean Ltd. Report , specifically after someone bought 20,000 May $26 put options. The breakeven is roughly 20% below the current market price. 

TheStreet Recommends

Grasso is a buyer of Amazon (AMZN) - Get Amazon.com, Inc. Report going into its seasonally strong time of the year as the economy continues to recover.

Seymour said he is a buyer of Banco Macro SA (BMA) - Get Banco Macro SA Report , Telecom Argentina (TEO) - Get Telecom Argentina SA Report and MercadoLibre (MELI) - Get MercadoLibre, Inc. Report

Garmin (GRMN) - Get Garmin Ltd. Report fell 2% and was the first stock on the show's "Pops & Drops" segment. Nathan said the stock broke below its "key support" at $50. He is not a buyer. 

Honda Motor Company (HMC) - Get Honda Motor Co. Ltd. Report dropped 5%. Seymour said he would avoid the stock, which continues to make new 52-week lows. 

Wayfair (W) - Get Wayfair, Inc. Class A Report debuted for trading and soared 30%. Finerman said the company has huge growth but is a little too expensive for her based on valuation. 

Global Payments (GPN) - Get Global Payments Inc. Report popped 5%. Grasso said he would not buy the stock because it is hitting resistance near $75. 

CNBC's John Jannarone said Starboard Value, an activist investor in Yahoo! (YHOO) , is seeking to have the Yahoo! core business spun off, so only the Yahoo! Japan and Alibaba (BABA) - Get Alibaba Group Holding Ltd. Report stakes would be left. That way the company could unlock up to $16 billion in tax savings. A merger between AOL  (AOL) and Yahoo!'s core business is a possibility but is not the main catalyst. Starboard is also getting involved with RealD (RLD)  because it believes the company can be run more efficiently. 

Finerman said that if the tax efficiencies can be realized, then there is still value in Yahoo!. Seymour argued that there is "significant value" in Yahoo!, if it is handled correctly. 

Grasso said investors can buy Deere (DE) - Get Deere & Company Report  but should use a tight stop-loss of $80. 

Seymour said investors can stay long Starbucks (SBUX) - Get Starbucks Corporation Report , which has support near $72. 

For their final trades, Grasso is a buyer of Mobileye (MBLY) and Finerman is a buyer of Navios Maritime Acquisition (NNA) - Get Navios Maritime Acquisition Corporation Report . Seymour is a buyer of iShares MSCI Emerging Markets ETF (EEM) - Get iShares MSCI Emerging Markets ETF Report and Nathan is a seller of the Nasdaq 100 Trust ETF (QQQ) - Get Invesco QQQ Trust Report via put options, if the ETF moves higher in the next few trading sessions.


-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

Follow TheStreet.com on Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.