NEW YORK (TheStreet) -- The S&P 500 hit intraday record highs but closed flat on Friday following the release of February's nonfarm payrolls result.
On CNBC's "Fast Money" TV show, Pete Najarian, co-founder of optionmonster.com and trademonster.com, said Friday's negative reversal makes sense since the market has been going up all week. He pointed out the strength in the financial sector and reminded investors that tension in Ukraine is picking back up.
Steve Grasso, director of institutional sales at Stuart Frankel, said financial stocks are likely headed higher because of the upcoming stress tests. Investors seem hopeful the banks will do well and return more cash to shareholders.
Tim Seymour, managing partner of Triogem Asset Management, said the German DAX closed on its lows on Friday, signaling that U.S. equities could face more headwinds on Monday from escalating geopolitical issues.
Jon Najarian, co-founder of optionmonster.com and trademonster.com, said he did not want to sell his long positions but was becoming much more cautious of the market. In order to hedge his positions, he bought the March $15-$18 call spread on the CBOE Volatility Index (VIX.X).
Nigel Travis, CEO of Dunkin' Brands (DNKN), said customers should not worry about the cost of their morning coffee going up, despite coffee prices shooting higher so far this year. He admitted that the weather was affecting sales, but optimistically stated that full-year guidance would remain unchanged. Travis concluded that he's interested in acquiring another company but found it unlikely that it would happen any time soon.
Seymour admitted that DNKN has solid growth and impressive sales numbers but said it's overvalued at 38 times last year's earnings. As a pairs trade, he said to short DNKN and buy Starbucks (SBUX). Pete Najarian disagreed, saying he continues to like DNKN for its solid earnings and expanding margins. He added that on a forward-looking basis, the stock trades at a more reasonable 24 times forward earnings.
Seymour said he will wait to buy shares of Boeing (BA) near $120 because it has continually failed to hold $130. Grasso said investors should watch the $118 level, the recent low for Boeing. He said he's concerned about the stock's inability to break above its moving averages.
Disney (DIS) is making a stronger push into the Chinese content world and Pete Najarian viewed it as one more bullish catalyst. The stock is "going higher," he said.
FireEye (FEYE) fell 9% and was the first stock on the show's "Pops & Drops" segment. Jon Najarian said it fell on news of a secondary offering and he's eying a long entry at current levels.
Foot Locker (FL) jumped 9%. Pete Najarian said same-store sales were strong, up 5%, and he stock still trades at a low valuation.
Alpha Natural Resources (ANR) plunged 12%. Seymour said coal is a tough industry to invest in.
VeriFone Systems (PAY) fell 2%. Grasso said he bought shares Friday.
Tristen Najarian, daughter of Jon Najarian and teen trader, said she would not invest in Apple (AAPL) currently because it seems to be a bit "past its prime." She's a buyer of Lululemon Athletica (LULU) and Disney.
For their final trades, Tristen Najarian is a buyer of Disney, Jon Najarian is a buyer Scotts Miracle-Gro (SMG) and Pete Najarian is buying Nokia (NOK). Grasso likes VeriFone Systems and Seymour said to buy Sina (SINA).
-- Written by Bret Kenwell in Petoskey, Mich.Follow @BretKenwell
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