NEW YORK (TheStreet) -- After a sharp decline on Monday, the S&P 500 bounced back on Tuesday.
On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said rising heating costs for consumers could crimp spending. Natural gas is up 25% in 2014 and propane costs could double for some customers.
Kelly said he would likely exit his long natural gas position sometime later this month. He added the S&P 500's selloff could continue if Wednesday's ISM data is weaker than expected.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, said consumers are continuing to buy select items from Michael Kors (KORS) and Under Armour (UA) while ignoring retailers such as J.C. Penney (JCP).
Guy Adami, managing director of stockmonster.com, agreed consumers are spending, but only in specific areas. He said the consumer does not appear as healthy as investors seem to think.
Dan Nathan, co-founder and editor of riskreversal.com, said the SPDR S&P Retail ETF (XRT) has drastically underperformed the S&P 500, down 12% versus 5%, respectively. He added the weak January auto sales show that U.S. consumers are drained at the moment.
Paul Hickey, co-founder of Bespoke Investment Group, was a guest on the show. He said the recent 5% pullback in U.S. equities has been "very textbook." He added that at this time there doesn't seem to be anything that investors should worry about. His top sector picks include consumer discretionary, financials, industrials and materials. Of those industries, his top picks include Comcast (CMCSA), Bank of America (BAC), Alliant Technology (ATK), and Dow Chemical (DOW).