NEW YORK (TheStreet) -- After two days of selling, the S&P 500 bounced back on Monday, closing up 0.72%. 

On CNBC's "Fast Money" TV show, the trading panel took a look at Michael Kors (KORS) following its disappointing earnings report.  

Karen Finerman, president of Metropolitan Capital Advisors, said the earnings were actually pretty good. But the CEO's defensive tone has investors worried, adding, the "momentum trade" seems to be over but the business is fine. She is a buyer near $70. 

Guy Adami, managing director of, said the earnings and guidance seemed pretty good. Margins slipped slightly but weren't bad. He said the business looks good and he is a buyer. 

Tim Seymour, managing partner of Triogem Asset Management, said the comparable-store sales growth is becoming difficult to beat. While the earnings multiple is not unattractive, he argued it's hard to stay long stocks when the momentum dissipates. 

Gordon Johnson, managing director and senior research analyst at Axiom Capital Management, said second-quarter comparative sales were disappointing and margins continue to weaken. This is what is causing the selloff, he said. 

John Morris, senior retail analyst at BMO Capital Markets, has a hold rating on Michael Kors with an $80 price target. There's near-term uncertainly, he said. Investors are worried about how low margins will go. Until that question is answered the stock will remains "dead money." 

Seymour agreed that KORS appears to be dead money and added that stocks such as Delta Air lines (DAL) - Get Report, Facebook (FB) - Get Report, and Molson Coors Brewing (TAP) - Get Report have all struggled as well following good earnings results. 

Finerman said investors should not buy shares of Microsoft (MSFT) - Get Report, based on its new deal with the National Football League. Seymour agreed, adding that investors should buy Microsoft when its valuation is low - which it is not right now. Adami reasoned that Microsoft is headed to $40. 

Seymour argued that shares of American International Group (AIG) - Get Report caused too much pain and disaster during the financial crisis. Because of that the stock will likely continue to trade at a discount to its peers, despite its strong earnings result. 

Deutsche Bank upgraded U.S. Steel (X) - Get Report to buy from hold and raised its price target to $40 from $28. Adami said the stock is "a little ahead of itself" and investors should buy when the news about the company appears to be at its worst. However, if investors are getting long they should use a stop-loss near $33 or $32. 

Johnson added that U.S. steel stocks such as U.S. Steel and AK Steel (AKS) - Get Report can continue moving higher. 

"It's far from the time to start selling steel stocks short," Seymour reasoned. 

Seymour said a lot of bad news is already priced into Yum! Brands (YUM) - Get Report and McDonald's (MCD) - Get Report. However, McDonald's has a low valuation and solid dividend yield, making it a buy near current levels. 

Adami said he doesn't see a bubble in biotech and continues to like Gilead Sciences (GILD) - Get Report, Celgene (CELG) - Get Report and Amgen (AMGN) - Get Report

Finerman said she wouldn't be a buyer of stocks such as BioCryst Pharmaceuticals (BCRX) - Get Report, Tekmira Pharmaceuticals (TKMR) , or any others based on the recent Ebola breakout. 

CNBC's John Jannarone said retailers know it would be cheaper and easier to let Amazon (AMZN) - Get Report have control of e-commerce for their products. However, they don't want to give up control. Wal-Mart (WMT) - Get Report seems late to the game, he said of the company's plans to go head-to-head against Amazon. Wal-Mart's shareholders are unlikely to approve of heavy upfront investments in shipping and pricing as Amazon's shareholders have been, he concluded. 

Adami said shares of Amazon appear to be in trouble. The stock seems likely to trade down to $285, where it may or may not find support. Johnson agreed, saying Amazon is likely to face pricing pressure from competition. Finerman said she cannot buy Amazon based on its valuation.

CNBC's Sarah Eisen, was a guest on the show. Inflation is on the rise, despite what the Federal Reserve says. The metrics the Fed uses are different than corporate America, she said. Corporate America has rising input costs that many will now be passing on to consumers. So far, wage inflation has remained relatively flat, she said. 

Seymour said that inflation could become a problem sooner than many investors think. Johnson agreed.

Adami said Hershey (HSY) - Get Report looks interesting near current levels. 

Tom Kloza, chief oil analyst at, said WTI crude oil and gasoline prices are likely to move lower over the next week, before increasing temporarily. After that he expects those prices to trend lower into the fourth quarter. This includes diesel and jet fuel as well, he concluded. 

Seymour said lower jet fuel is just one reason why the airline industry should trade with a higher valuation. Oil demand is not decreasing and General Electric (GE) - Get Report is a good way to play energy, he added. 

Realogy (RLGY) - Get Report climbed 4% and was the first stock on the show's "Pops & Drops" segment. Adami said investors can stay long with a stop-loss near $35. 

Disney (DIS) - Get Report popped 2%. Seymour said the company is good but the valuation seems too rich. Expectations could be too high headed into the earnings report, he said. 

ITT Educational Service (ESI) - Get Report plunged 46%. Finerman is not a buyer or a seller of the stock. 

SunPower (SPWR) - Get Report fell 1%. Johnson said the stock has been strong, but the recent earnings report was weak. He advised investors to avoid the stock.

Adami said investors in GT Advanced Technologies (GTAT) should take profits and wait for a pullback before getting long again. 

Niccolo De Masi, CEO of Glu Mobile (GLUU) - Get Report, said the company prefers to be conservative, and to plans to continue beating earnings expectations. He expects the "Kim Kardashian Hollywood" mobile app to continue doing well, possibly for the next several years. 

Seymour said Yahoo! (YHOO) continues to trade on Alibaba news. However, since the stock appears to be rangebound he called it a sell near $38 and a buy on pullback. 

Johnson is a buyer of First Solar (FSLR) - Get Report into earnings. He said the stock has some risks in 2015 but it's not something he is worried about at the moment. He expects the company to reiterate guidance. 

Finerman said she likes the biotech space over the long term but she wouldn't play with an individual stock. Instead, she likes the iShares Nasdaq Biotechnology ETF (IBB) - Get Report and the SPDR Biotech ETF (XBI) - Get Report

For their final trades, Seymour is a buyer of the iShares MSCI South KoreaCapped ETF (EWY) - Get Report and Johnson is a buyer of SunEdison (SUNE) . Finerman is selling Disney call options against her long position ahead of earnings on Tuesday and Adami is a buyer of Michael Kors. 

-- Written by Bret Kenwell in Petoskey, Mich.

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