'Fast Money' Recap: Worrying About the Fed, Again

NEW YORK (TheStreet) -- Investors pushed equity markets lower because of renewed fear the Federal Reserve will cut back on its current economic stimulus.

On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said the S&P 500 could now pull back to 1,750 since 1,786 failed as support. 

Stuart Frankel & Company's Steve Grasso said everyone has been wrong about whether the Fed would taper its asset purchases so far, so investors shouldn't worry about it just yet. He suggested investors stay long the stocks they love. 

Josh Brown, a financial adviser at Ritholtz Wealth Management, said investor sentiment is at levels that have generally led to 5% pullbacks. 

Dan Nathan, co-founder and editor of riskreversal.com, said the pullback isn't surprising when one considers the recent decline in European stocks. He added that rising interest rates could also be partly responsible for the decline. 

Regarding Twitter (TWTR), Kelly said investors should wait for a pullback to $45 before buying. He added that strong support was near $40. 

Brown said TWTR could pull back when it reports earnings and when share lockups expire. 

Trisha Dill, the senior analyst at Wells Fargo who upgraded Groupon (GRPN), was a guest on the show. She said the company has a ton of potential and has a sizable customer base. That customer base helps defend it against competition. 

Nathan said the stock is not a long-term hold because of its upcoming competition with Costco Wholesale (COST) and Amazon (AMZN) through direct selling. 

Grasso called Home Depot (HD) the best way to play the housing recovery. He added that operating margins should expand significantly by January 2015.

Nathan said he is looking to cover his Pandora (P) short at $25, and suggested investors could look to buy near that level. 

Brown said Bank of America (BAC) could initiate up to $25 billion in share buybacks, which he said could be a huge catalyst in 2014. 

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