NEW YORK (

TheStreet

) -- The markets slid Tuesday on a troubling housing report that kindled fears of a double-dip recession.

The

Dow Jones Industrial Average

133.96, or 1.32%, to 10,040.45. The

S&P 500

fell 15.49, or 1.45%, to 1,051.87, while the

Nasdaq

lost 35.87, or 1.66%, to 2,123.76.

Tim Seymour said on

CNBC

's "Fast Money" show that the data looks terrible. "Everybody has gone bearish in the last couple of days."

But Steve Cortes, taking a contrarian view, said most of the bad data has been priced in. He also reminded the panel that the market is down after a "fantastic" July, with 40 points to go before reaching the lows in July.

Karen Finerman said she sensed the market is getting toward the bottom, adding "at some point valuations do matter."

For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw onTV

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Seymour agreed, saying earnings aren't falling off the cliff and valuations are falling to the point where they look decent. He said S&P earnings are projected to be 25% over what they were in 2009, and that 2011's earnings are supposed to be 15% above the 2010 level.

In this environment, Seymour said he liked global names with entrenched businesses like

McDonald's

(MCD) - Get Report

,

Unilever

(UL) - Get Report

and

Pepisco

(PEP) - Get Report

.

Terranova sensed a turning in the market, with all the leverage on fixed income and a limited downside to equities. Before that turnaround occurs, the market has to endure a lot of headwinds coming from economic reports in the next two weeks, including reports this week on new homes sales, durable goods orders and a GDP revision and next week's China's PMI report, ISM report and monthly jobs report, he said.

Finerman she liked

BP

(BP) - Get Report

, which got hit pretty hard today despite nothing in the way of new news.

Lee noted a bounceback by homebuilder

KBH

(KBH) - Get Report

after hitting a 52-week low. Cortes attributed the bounceback to an overshort market conditions. He said the market responded favorably after concluding today's housing data wasn't that significant

Barry Ritholtz, CEO of Fusion IQ, didn't subscribe the gloom and doom about the economy. He said the housing market is missing drivers like suburban growth, baby boomer growth and a bull bond market to propel sales. He said those drivers are not going to be around over the next decade.

Still, he said those predicting an economic depression are overstating the case. Rather, he believes the question people should be asking is how long will it take to get pass this post-recession slowdown and return to normalized growth of 2% to 3%.

Ritholz, whose firm is 80% in cash, said he sees good buying opportunities between now and the end of the year and will be aggressive.

Seymour put in a caveat for those in emerging market debt plays like the

Morgan Stanley Emerging Markets Debt Fund

(MSD) - Get Report

. He said they are expensive and priced to perfection.

Looking at tomorrow's headlines, Jeff Degraaf, chief technical analyst for ISI, said the market will discount the midterm election outcome on Oct. 7. He presumed the Republicans will take both houses.

He expressed concern about the tumbling two- and 10-year yields as signs of a weak economy. Overall, he told Lee that investors are playing in a bear market that's headed to 960.

Is the U.S. going to be another Japan? David Riedel, president of Riedel Research Group, said the U.S. economy is very different from the two lost decades in Japan. He said the U.S., by October, will be focused on the risk of inflation and return of global growth.

As the yen rises against the dollar and euro, he said investors should be looking at buying Asian properties in Hong Kong and Korea.

In the call of the day. Joseph Parkhill, a Morgan Stanley analyst, liked

Dollar General

(DG) - Get Report

, which he said will see healthy margin growth in the future.

Lee shifted the panel's attention to M&A and asked why it has been a market catalyst.

Terranova said he was worried about the lack of impact from such M&A activity from

BH Billiton

's

(BHP) - Get Report

pursuit of

Potash

(POT)

and

Intel

's

(INTC) - Get Report

acquisition of

McAfee

( MFE) .

Finerman floated the ominous thought that the market may have already priced in the activity. She also said time is running out for deals to close by the end of the year.

In the final trades, Cortes liked crude oil. Finerman liked BP, while Terranova said he liked

Marvell Technology

(MRVL) - Get Report

.

--Written by David Tong in San Francisco.

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.

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.

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.

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