NEW YORK (TheStreet) -- The stock market closed lower on Wednesday and appears to be taking a much needed breather.
On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said the S&P 500 should trade down to at least 1,710. He suggested taking profits in Western Digital (WDC) and Seagate Technologies (STX).
Brian Kelly, founder of Brian Kelly Capital, said he took a small short position in the S&P 500. He said to take profits in Priceline.com (PCLN) but not to short it because the stock is getting slightly parabolic.
Stephanie Link, co-manager of the Action Alerts PLUS portfolio, said the current market is stock and sector-specific. She likes the aerospace and automotive industries as well as their suppliers.
Karen Finerman, president of Metropolitan Capital Advisors, said she is taking some profits in Navios Maritime Holdings (NM) and Navios Maritime Partners (NMM) because they have more than doubled in 2013. She added that she still likes the story but wanted to reduce her risk.
Craig Johnson, senior market strategist at Piper Jaffray, was a guest on the show and said the U.S. equity markets have had three major setbacks this year: Worries over a Syrian war, budget and debt ceiling issues, and a rapidly rising interest rate in the summer. He has a target of 1,850 for the S&P 500 by year's end. He likes industrials, consumer cyclicals and technology stocks.
Akamai (AKAM) beat on the top and bottom line but the stock is lower in after-hours trading. Adami said this move is typical for the stock and he expects it to be higher by next week, possibly above $52.
Microsoft (MSFT) reports earnings on Thursday. Kelly suggested traders take profits to avoid downside risk. He added that the company's core business is in decline and there is no product innovation.
Finerman said there doesn't seem to be too much downside left and Adami reaffirmed that, saying there is support near $31.
Link said in the low-$30s, Microsoft seems attractive, especially with its dividend yield.
Caterpillar (CAT) disappointed on earnings and Finerman remains short the stock, saying that the EPS guidance has fallen 37% from the start of the year despite the stock only being down 6% in 2013.
Link argued the stock could be worth buying in the low $80s because of its yield, but suggested that investors look at Joy Global (JOY) instead.
Bob Wetenhall, homebuilding and building products analyst at RBC Capital Markets, was a guest on the show and said he likes Owens Corning (OC) and believes it could trade as high as $48, despite facing some short-term headwinds. He likes KB Home (KBH), Lennar (LEN) and PulteGroup (PHM).
Amazon (AMZN) was the featured stock on the show's "Street Fight" segment. Link defended the stock, saying it's a top-tier e-commerce retailer and the company should benefit from its exposure to cloud and mobile. She added that fourth-quarter guidance will be key and the company should have strong revenue.
Adami disagreed, arguing the overvaluation is beyond ridiculous. He added that if holiday sales turn out to be weaker than expected, Amazon will be in trouble since it hired 70,000 seasonal workers. He concluded Wall Street cuts the company a lot of slack and at some point that will change.
Link said not to sell Morgan Stanley (MS) for three reasons: Earnings were pretty good, it trades at a discount based on tangible book value compared to its peers and the restructuring should boost performance.
Adami said Angie's List (ANGI) reported a bad quarter and investors who were looking to get long might be able to on Thursday.
Kelly said investors who are long E-Trade Financial (ETFC) should use any future pop to take profits.
Joe Lavorgna, chief U.S. economist at Deutsche Bank (DB), was a guest on the show and said the Federal Reserve could become much more hawkish next year because of new Fed members. As a result, the Fed may become less stimulus-friendly in the near future. He expects tapering to commence in March due to less-than-favorable economic data.
Link said she is a buyer of Weyerhaeuser (WY) on a pullback because the new CEO has a track record of returning money to shareholders, while the dividend and buyback program may get a boost when its real estate business spinoff is complete.