NEW YORK (TheStreet) - All eyes were on the Federal Reserve on Wednesday, although a rate hike doesn't seem to be coming to the markets any time soon. If the Fed isn't raising rates, and the European economy continues to improve, it could drive the euro higher, said Paul Richard, UBS head of credit, rates and foreign exchange North America.
On CNBC's "Fast Money Halftime Report," Richards argued that the euro could climb to 1.15 versus the dollar, much higher than many would have expected a few weeks ago. It doesn't help that U.S. GDP and other economic data have been relatively weak, aiding in the recent dollar declines.
This has been a long awaited correction in the U.S. dollar, says Joe Terranova, senior managing director at Virtus Investment Partners. The drop in the dollar is driving oil prices higher along with Treasury yields, which is not having a "favorable impact" on U.S. stocks.
There's no reason to stay long MLPs or REITs if investors believe interest rates are headed higher, he added.
If buybacks don't take stocks higher in the May, then it's a sign that stocks could struggle for the next few months, Terranova said.
Some investors feel that the strong U.S. dollar contributed to the weak GDP number, Richards added. U.S. exporters suffered from the rising dollar, while European exporters benefited from a weaker euro.
Investors should look to the April non-farm payrolls report due out next week for more clarity on the economy.
Temporary events, such as weather and the port strikes, likely weighed on GDP results too, Pete Najarian, co-founder of optionmonster.com and trademonster.com said. He thinks there could be upside to the economy going forward.
The Fed is remaining dovish and a rate hike isn't imminent, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management. Investors should watch the Fed fund rates for a clue as to when rates will go higher.
Bonds yields seem likely to move lower after the 10-year Treasury yield recently eclipsed 2%, said Jon Najarian, co-founder of optionmonster.com and trademonster.com. He's also a buyer of German equities after the recent selloff.
The conversation turned to Twitter (TWTR) - Get Report, as shares have been decimated over the past two trading sessions. On Tuesday, the stock closed lower by more than 18% after its weaker-than-expected earnings results were leaked ahead of the close.
The selloff continued Wednesday, with shares down an additional 8%, and Brown says he's a buyer. The stock is extremely volatile, mostly because the company is still experimenting with different advertising methods.
Twitter is nowhere near Facebook (FB) - Get Report right now, he continued. The latter of the two companies knows everything about its users - their birthday, relationship status, and how many children they have - whereas Twitter doesn't know any of these details. This information is what allows Facebook to be far more effective for advertisers, Brown said.
The bull case could be argued that Twitter will figure out how to become more effective and increase its user growth, driving the stock higher, Brown added.
Management still hasn't figured out which metrics to present to investors, Jon Najarian added. Terranova called Twitter a "glorified news feed" and was uninterested in buying the stock.
Scott Devitt, senior analyst at Stifel Research, is one of two analysts to have a sell rating on Twitter who recently lowered his price target from $38 to $36. The valuation for the stock is still too high given how much its revenue growth is slowing, Devitt said.
While year-over-year sales growth of 76% is impressive, its growth rate is still decelerating, the analyst said. He believes the problems at Twitter are in the business model and can't necessarily be fixed.