'Fast Money' Recap: S&P, Jobs Report Were Higher Than Expected

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. 

Grasso suggested investors stick with what's been working --he likes Yahoo! (YHOO), Google (GOOG) and Twitter (TWTR). 

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. 

For their final trades, Seymour is buying EWW and Grasso said to buy Comcast (CMCSA). Adami is buying Mylan (MYL) and Nathan said to buy the Financial Select Sector SPDR ETF (XLF). 

-- 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.

If you liked this article you might like

What to Watch From Samsung, Google and Others at the Mobile World Congress

What to Watch From Samsung, Google and Others at the Mobile World Congress

Warren Buffett Is Sticking to His Strengths By Selling IBM and Buying More Apple

Warren Buffett Is Sticking to His Strengths By Selling IBM and Buying More Apple

Buffett Letter to Shareholders May Detail How He Intends to Spend $109 Billion

Buffett Letter to Shareholders May Detail How He Intends to Spend $109 Billion

General Mills Buying a Natural Pet Food Company for $8 Billion Makes Sense

General Mills Buying a Natural Pet Food Company for $8 Billion Makes Sense

Apple's HomePod Is No Amazon Echo-Killer, But It Doesn't Need to Be

Apple's HomePod Is No Amazon Echo-Killer, But It Doesn't Need to Be