'Fast Money' Recap: Retailers on Sale

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 TheStreet.com on Twitter and become a fan on Facebook.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

More from Jim Cramer

Regions Financial, Edwards Lifesciences: 'Mad Money' Lightning Round

Regions Financial, Edwards Lifesciences: 'Mad Money' Lightning Round

First Horizon National: Cramer's Top Takeaways

First Horizon National: Cramer's Top Takeaways

Waste Management: Cramer's Top Takeaways

Waste Management: Cramer's Top Takeaways

Jim Cramer: Will Apple or Amazon Become the World's First Trillion Dollar Stock?

Jim Cramer: Will Apple or Amazon Become the World's First Trillion Dollar Stock?

Not Thankful for Fridays: Cramer's 'Mad Money' Recap (Friday 4/20/18)

Not Thankful for Fridays: Cramer's 'Mad Money' Recap (Friday 4/20/18)