NEW YORK (TheStreet) -- After making record highs on Monday, the S&P 500 took a breather on Tuesday and closed lower by 0.13%.
On CNBC's "Fast Money" TV show, Tim Seymour, managing partner at Triogem Asset Management, said consumer spending remains much higher than it was in the past and that trend will likely continue. However, he said the valuation for U.S. equities is getting a little a high.
Steve Grasso, director of institutional sales at Stuart Frankel & Company, said rising energy costs such as natural gas are negatively affecting consumer discretionary sales.
Guy Adami, managing partner of stockmonster.com, pointed out that the iShares Russell 2000 ETF (IWM - Get Report) failed to make new highs, and looks like it could begin to decline. If so, it could be a prelude to the S&P 500 also moving lower.
Karen Finerman, president of Metropolitan Capital Advisors, said the overall market is starting to get a little "frothy," even for value stocks. She was a seller of upside calls.
Shares of Tesla Motors (TSLA - Get Report) made all-time highs, closing up 14% at $248. Craig Irwin, an analyst at Wedbush Securities, has an outperform rating on the stock and said the company's new battery plant will be a huge positive. It will allow Tesla to cut costs in a very significant manner while helping the company meet production demand.
Grasso said Tesla still has a big short interest and could continue to move higher. However, he suggested taking some profits after Tuesday's big gain. Seymour likes Tesla's products and technology, but is not a buyer of the stock. Adami and Finerman agreed they were not buyer or sellers of the stock.
Adami suggested investors wait for LinkedIn (LNKD) to break out over $220 before buying rather than stepping in it at current levels.
Seymour doesn't have a long position in BlackBerry (BBRY) but thinks it "interesting" at current levels because it is undervalued based on its BlackBerry Messenger asset and "sum of the parts" valuation.
Macy's (M - Get Report) jumped 6% after reaffirming its full-year guidance. Finerman said the company continues to do well despite the poor retail environment, while the stock is still cheap on an earnings basis.
Natural gas fell 8% and Grasso said he's not a buyer, even though he suspects $5 will hold as support.
Finerman likes Fifth & Pacific (FNP), which hit a new 52-week high in Tuesday's session. She added that it has a "great growth story."
Home Depot (HD - Get Report) beat earnings estimates and raised its dividend. Adami continues to like the stock because of its reasonable valuation. He added that if it can get through $84, it could make a move towards $90.
Adami suggested that Smith & Wesson Holding (SWHC) could make a move towards $15, based partly on its elevated short interest.
Adami said he prefers to play the wearable technology trend via Garmin GRMN.
For their final trades, Finerman is buying Apple (AAPL - Get Report) and Grasso is buying Qualcomm (QCOM - Get Report). Seymour said to buy General Motors (GM - Get Report) and Adami is buying Weatherford International (WFT).
-- Written by Bret Kenwell in Petoskey, Mich.