NEW YORK (TheStreet) -- The broader markets opened lower, but were led higher by the Nasdaq, closing near the highs of the day as a deal to end the government shutdown still appears close.
Guy Adami, managing director at stockmonster.com, said the S&P 500 seems likely to trade up to 1,725 on positive D.C. rumors this week. He likes Exxon Mobil (XOM) above $85, where a double-bottom support level was formed.
Karen Finerman, president of Metropolitan Capital Advisors, said she is focusing on earnings now and not the issues in Washington.
Dan Nathan, co-founder and editor of riskreversal.com, said that equities appear to be trading on news and rumors from Washington and the Federal Reserve instead of on fundamentals. He is long Apple (AAPL) and Exxon Mobil via calls.
Andrew Busch, founder of research and consulting firm andrewbusch.com, said that a deal by Oct. 17 is unlikely, but should be completed around Oct. 22. He added that traders should sell if the S&P 500 fails, with 1,711 on the upside.
Finerman said that while Foot Locker (FL) may decline in the short term, it's going to make investors money in the long term because of its strong balance sheet and very low valuation. She concluded the selloff in retail is overdone.
Dan Nathan disagreed, saying consumers appear tapped out when it comes to spending, especially with names like McDonald's (MCD) and Coca-Cola (KO) struggling.
Richard Kovacevich, former chairman and CEO of Wells Fargo (WFC), was a guest on the show and said there will be long- and short-term consequences of the government shutdown. Aside from bond yields shooting higher in the short term, the situation is rattling global and domestic confidence in the U.S. government. He said default would be catastrophic to the economy and both political parties are responsible.