NEW YORK (TheStreet) -- The S&P 500 was resilient in Friday's trading session, closing marginally higher after opening in the red.The big story this week, aside from earnings, was the decline in the housing stocks. On CNBC's "Fast Money" show, Josh Brown said he doesn't want anything to do with them. He added that it's too late to be short and ultimately not a dip you want to buy. They have lost their momentum and will likely go on to make a series of lower highs, he concluded. Guy Adami disagreed. He said this dip is one to buy but only as a trade, not as an investment. He likes PulteGroup ( PHM). Steve Grasso said that he would rather be a buyer of Home Depot ( HD), even though it is not directly related to the housing sector. He added that the earnings have been consistent and HD has a nice chart. Starbucks ( SBUX) was the first stock on the show's "Top Trades" segment, after making all-time highs following a favorable earnings report. Despite beating on the top- and bottom-lines and raising quarterly and full-year guidance, Adami said that he would not recommended chasing the stock and would wait for a pullback. J.C. Penney ( JCP) and Microsoft ( MSFT) were in the news when hedge fund manager David Einhorn said he would be covering his short position on the former and selling out of his long position in the latter. Brown said that this would really concern him if he was a Microsoft shareholder, adding that a lot of problems remain at the company. Adami said that just because Einhorn is covering his short bet does not mean J.C. Penney doesn't have issues. He said he was neither a buyer or a seller of the stock. Finally, with Tesla ( TSLA) up over 270% on the year, Grasso said that traders need a strong stomach to own the stock. However, if they can handle it, he agrees with Deutsche Bank's upgrade and $160 price target. While 10-year Treasury rates have pulled back slightly, they are still up 50% over the past three months. With the FOMC meeting next week, Adami doesn't think it's too late for the Federal Reserve to push rates lower once again. He added that he is looking for rates to drop below 2%.
Tim Seymour said that rates failed to break 2.45% on the downside and that would need to happen before we saw 2%. He said the Fed had horrible communication in June and has put a lot of pressure on the markets for this meeting. The Nikkei was down 3% in the overnight session on news of higher-than-expected inflation results. Brown said that if traders have missed the upside move in Japan, the WisdomTree Japan Hedged Equity ETF ( DXJ) is a buy on the pullback. Seymour added he is a buyer of Japan and that it could outperform the S&P 500 over the next nine months. TripAdvisor ( TRIP), Broadcom ( BRCM), and E-Trade Financial ( ETFC) were on the show's "Pops & Drops" segment. Adami said that after the 22% jump in shares of TripAdvisor on the back of strong earnings results, the valuation was too steep and he would not be a buyer. Broadcom fell 18% from poor earnings and downgrades, with Seymour adding that the group has been under a lot of pressure and he would not be buying this dip. Grasso said that he was a buyer of E-Trade Financial even after the strong week, where shares gained 10%, citing the upside momentum is not finished. For their final trades, Seymour is a buyer of BHP Billiton Limited ( BHP). Grasso is buying Arch Coal ( ACI) with a stop at $3.90. Brown is a buyer of SPDR S&P Bank ETF ( KBE), while Adami is buying PulteGroup. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Follow TheStreet.com on
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