NEW YORK (TheStreet) -- Things started well for the Standard & Poor's 500 Friday. The tracking exchange-traded fund, the S&P 500 ETF (SPY) - Get Report, rose over 1% only to start falling in the closing hours of trading, ending flat on the session. One of the big reasons for the late drop -- biotech stocks. The iShares Biotech ETF (IBB) - Get Report fell 4.9%, down 13% on the week. 

Guy Adami, managing director of, saidthe biotech ETF could fall to$285. It closed Friday at $310.20. Adami said on CNBC's "Fast Money" TV show investors should avoid biotechs until some of the larger companies -- Gilead Sciences (GILD) - Get Report and Celgene (CELG) - Get Report -- report earnings later next month. 

Brian Kelly, founder of Brian Kelly Capital, said the Health Care Select Sector SPDR ETF (XLV) - Get Report fell by 2.75%. It has been a "mass liquidation" out of health care, he said, adding that the biotech sector could do poorly until next year's presidential election because of contender Hillary Clinton's comments on price gouging and what she'll do to end the practice. 

Tim Seymour, managing partner of Triogem Asset Management, said biotech stocks are hard to value, but there is clearly value in big-cap pharmaceutical stocks. He likes Merck (MRK) - Get Report

Federal Reserve Chair Janet Yellen made it clear in her Thursday night speech that the Fed wants to raise rates. Steve Grasso, director of institutional sales at Stuart Frankel, said this bodes well for energy and utility stocks and poorly for health care. Investors are just trying to lock in gains in biotech given the big rally over the past year, hence the heavy selling, he said. 

Nike (NKE) - Get Report reported strong sales results in China while Caterpillar (CAT) - Get Report announced weakness. So which is more telling about companies that do business in China? 

Seymour said there is a big difference between Chinese consumption, which affects Nike's business, and China's macro conditions such as the mining and infrastructure sectors, which affect Caterpillar's. He said Nike's results speak strongly for other consumption-based companies such as Starbucks (SBUX) - Get Report. Clearly the faltering stock market is not having an impact on the economy, he added. 

Apple (AAPL) - Get Report could also be included as a company likely doing well in China, Adami said. However, companies that export materials to China, such as Caterpillar and Freeport-McMoRan (FCX) - Get Report, are likely to keep suffering due to lack of demand. 

Grasso said Caterpillar is more important than Nike because he considers the machinery maker a leading indicator on China. When Caterpillar's business improves, China's economy will, too. 

Emerging markets are a big business for Coca-Cola (KO) - Get Report. The stock was upgraded by analysts at Deutsche Bank, who assigned a buy rating and $45 price target. Trading at less than $40 per share with attractive upside and a solid dividend makes Coca-Cola a solid pick for investors searching for yield, Grasso said. 

Seymour is long Coca-Cola, saying the company's iconic brand, impressive distribution and the stock's reasonable valuation makes this a name to own. He's a buyer on pullbacks. 

Adami is not a fan, saying the stock has traded poorly over the past year. He would avoid the name.  

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