NEW YORK (TheStreet) -- The S&P 500 trended lower throughout Wednesday before closing near session lows.Retail has shocked many investors with its recent disappointment. On CNBC's "Fast Money" TV show, Karen Finerman said that it was not a great day for shareholders of Macy's ( M) after a poor earnings report. She added that she considers Macy's the best in its group and that it made her worried of other retailers who have yet to report. She was a seller of Kohl's Corp. ( KSS) and J.C. Penney ( JCP). Brian Kelly added that he was not a fan of retail, and higher gas prices will likely add to the weakness. He also said the tapering effects would hurt high-end retailers. Dan Nathan said it seemed like we made it out of the second quarter earnings season without too much pain, but weakness in high-end and teen retailers have a lot of investors second guessing. Steve Grasso suggested that the shakiness in the retail sector could just be the beginning for the overall market, especially after Cisco Systems ( CSCO) delivered poor guidance in its earnings report. Regarding Cisco's earnings, Kelly said the stock had become a bellwether name once again and that it wasn't promising to see the company cut jobs in order to reach certain levels of profitability. Nathan said he would be a buyer of Cisco if it traded down to $23, which is the level the stock gapped up from on its previous earnings report. Steven Wieting, global chief strategist at Citi Private Bank, said he expects a slowdown in the markets for the second half of 2013. Stocks are near record highs, but he said he still prefers equities to fixed income although he doesn't expect returns to be as robust. Steinway Musical Instruments ( LVB) was the first stock on the show's "Pops & Drops" segment after it agreed to be acquired by Paulson & Co.. Nathan said there was nothing left here for traders to go with. Grasso said hedge fund managers were scooping up names such as Freeport-McMoRan ( FCX), which have been lagging the broader market, to try and make up some ground before the end of the year.
Peabody Energy ( BTU) was up 4% on Wednesday. Kelly said he didn't believe in the move and would take profits. Moody's Corp. ( MCO) fell 5%, and Finerman said it's likely from the expected slowdown in bond offerings since the company collects fees on these offerings. Google ( GOOG), which is down 5% in the past month, was the featured stock on the show's "Street Fight" segment. Kelly said he loves when stocks are down 5%, which in this case presents a buying opportunity. He cited Google's cash flow, innovation and technical support from the 100-day moving average as reasons to get long. Nathan argued that the stock looks very weak on a technical basis, with three consecutive closes below the 50-day moving average. He added that the company has reported seven consecutive quarters where cost-per-clicks have declined and that operating expenses are increasing faster than revenue. Howard Lindzon, co-founder of Stocktwits.com, said hedge fund manager Carl Icahn didn't do anything wrong in the way he revealed his position in Apple ( AAPL) via Twitter. He added Twitter has become the new "human ticker." Regardless of whether or not people like it, it's here to stay. Kelly said traders should be careful with the bank stocks, citing headline risk in JPMorgan Chase ( JPM) over the London Whale incident. Grasso said Wal-Mart ( WMT) will be challenged when it reports earnings on Thursday, and he is avoiding the stock. Finerman said that despite hedge fund manager George Soros increasing his stake in J.C. Penney, she still is not optimistic on earnings next week and remains short. For their final trades, Grasso said he was a buyer of McDonald's ( MCD) and Nathan was selling Whole Foods Market ( WFM). Finerman said she's taking profits in some of her Apple position and Kelly said he was a seller of the iShares High Yield Corporate Bond ETF ( HYG). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Follow TheStreet.com on
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