'Fast Money' Recap: Buying Retail?

NEW YORK ( TheStreet) -- The markets were finally able to break their losing streak Tuesday, but still sold off in the final 30 minutes.

All the talk the last couple of weeks has been centered around the retail sector and its underperforming companies. On CNBC's "Fast Money" TV show, Karen Finerman said it's been a tough couple of weeks for bulls but she still likes Foot Locker ( FL) and Macy's ( M).

She added that she does not like J.C. Penney ( JCP) or teen retailers.

Brian Kelly said he doesn't really like the sector but would look to AMZN ( AMZN) and RadioShack ( RSH) as his top plays.

Steve Grasso said he continues to like Deckers Outdoor ( DECK) and Home Depot ( HD), but added that the big reversal in the latter shows that investors are skittish.

Paul Hickey said interest rates would be important to watch and could curtail consumer spending. However, he countered this negative point by saying the jobs outlook is positive and gas prices continue to go lower.

Grasso said he wants to avoid J.C. Penney's because any slightly bullish, or not horrible, news could constitute a short squeeze, which could be seen on Tuesday after the company completely whiffed on earnings, yet rallied higher.

International Business Machine ( IBM) was the first stock on the show's "Today's Trending Trades" segment, after making new 52-week lows.

Hickey said he still was not a fan of the stock, despite Warren Buffett initiating a position in the company earlier this year. He cited the company's increased competition and issues surrounding its cloud-computing business segment as reasons the stock could go lower.

Barnes & Noble ( BKS) dropped after reporting earnings. Finerman said she wasn't impressed by the company. She pointed to declining Nook sales, a worse-than-expected quarterly loss and lower sales.

Lululemon Athletica ( LULU) dropped briefly on Tuesday, from ITG's comments calling for comp sales to come in at the lower end of the company's guidance. Grasso said he thinks the stock is still safe on the long side.

Hickey said the S&P 500 has been positive seven of the last 10 years in the second half of August, with the average gain totaling 1.73%. He added that consumer discretionary, tech and energy have been the best-performing sectors.

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