NEW YORK (TheStreet) -- The S&P 500 closed higher and the November nonfarm payrolls report came in stronger than expected.
Guy Adami, managing director of stockmonster.com, said he was surprised the market didn't fall on the positive news since it now increases the likelihood of tapering from the Federal Reserve.
Stuart Frankel & Company's Steve Grasso said no one has been selling yet, and the seasonality is probably helping.
Tim Seymour, managing partner of Triogem Asset Management, said market participants like certainty. Once investors know for sure about tapering, they might even respond favorably to it.
Dan Nathan, co-founder and editor of riskreversal.com, questioned how long the rally in equities could last. He added that the 10-year Treasury yield could jump to 3.5% when tapering begins, which may weigh on equity prices.
Adami said Apple (AAPL) is finally pulling back and looks likely to retest the $550 level.
Jon Hilsenrath, chief economics correspondent at the Wall Street Journal, was a guest on the show who said November's nonfarm payrolls report increases the odds the Fed could taper its asset purchases in December. He added that the economy is doing much better than just a few months ago and this report confirms it. He concluded that the Fed's 2014 estimates look okay now.
Nathan said he would stick with cyclical stocks such as industrials and avoid staple stocks, which have gotten overvalued. He likes General Motors (GM).
Adami likes Prudential Financial (PRU) and the insurance sector in general.
Seymour said investors could look to emerging markets through the iShares MSCI Mexico Capped ETF (EWW) and iShares MSCI South Korea Capped ETF (EWY), because of the region's industrial output and strengthening currencies.
Adami said investors should wait for Intel (INTC) to break out above $26 before buying.
Nathan said Macy's (M) is the standout retailer this year and suggested investors buying the stock use $50 as their stop-loss.
Seymour disagreed, saying he would avoid all retail stocks because margins will be under pressure and the sector usually tops out around this time of year.
Grasso is a seller of natural gas, which is up roughly 20% in the past month. He said investors who are long coal should take profits as well.
Adami said Apache (APA) failed at $92 resistance and suggested traders now have to wait for it to fall to $86 before stepping back in to buy.
J.C. Penney (JCP) fell 9%, making it the first stock on the show's "Pops & Drops" segment. Adami said investors should not own the stock.
LinkedIn (LNKD) was up 3% and Nathan suggested the stock looks ready to run to its old highs.
Gap (GPS) dropped 2%. Seymour said he would avoid the stock because comparative same-store sales look difficult to achieve and competition is fierce.
GOOG was up 1% and made new all-time highs. Grasso said he's a buyer but is a waiting for a pullback.
-- Written by Bret Kenwell in Petoskey, Mich.