NEW YORK (TheStreet) -- The S&P 500 muddled along within a tight trading range on Friday, but ended the session higher by 0.17% and closed at another record high.
On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said Owens Corning's (OC) earnings report seemed "most concerning." He added that the housing starts and building permits data have been weak and the iShares U.S. Home Construction ETF (ITB) appears to be "rolling over." He suggested consumers could get pinched if oil prices remain elevated.
Tim Seymour, managing partner of Triogem Asset Management, said the U.S. consumer seems to be fine, with disposable income increasing. He added that consumer staples companies like Coca-Cola (KO), Walgreen (WAG), and beer companies have been doing well.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, said the previous market leaders are not hitting new 52-week highs because other sectors, such as financials, are now leading the overall market higher.
Seymour said he continues to like KO, Kimberly-Clark (KMB) and other large-cap valuation stocks in the consumer staples sector.
Kelly said investors could sell-short the ITB if they want to have a hedge on the housing market.
Nathan said he likes Apple (AAPL), but not until it pulls back to $85.
Seymour said he bought a half-position in Oracle (ORCL) following the slight selloff caused by the company's earnings result. He pointed out that the company missed earnings per share estimates by 3 cents, 2 cents of which came from Venezuelan currency swings. He likes the company's valuation and dividend yield.
Kelly said Oracle is facing a lot of competition from Salesforce.com (CRM) and Microsoft (MSFT), and he's a buyer of Microsoft. Nathan argued that investors should avoid Oracle since it has no organic growth.
Justin Gover, CEO of GW Pharmaceuticals (GWPH), said his company will continue to conduct trials of its epilepsy drug, Epidiolex, which could launch in 2016. Another drug, Sativex, which is used to treat pain in cancer patients, should have its phase III results released in late-2014, with the drug planned to launch in 2016. He said the company's cannabinoid treatments could stem into oncology, psychiatry and even diabetes.
Kelly called GWPH a "well-run company" with real products and said it's not a penny stock.
Molson Coors Brewing (TAP) climbed 2% and was the first stock on the show's "Pops & Drops" segment. Kelly said investors should use the recent move higher to take profits.
AutoNation (AN) jumped 5%. Najarian said to wait for a pullback before getting long.
Yandex (YNDX) rallied 5%. Seymour said investors who are currently long the stock should stay long the stock.
Advanced Micro Devices (AMD) dropped 6%. Nathan didn't pick a bullish or bearish side but pointed out the bearish activity in the July $3.50 put options ahead of the company's earnings report.
Najarian pointed out the bullish options activity in shares of Emerson Electric (EMR), specifically the September $70 call options.
With the official start to summer underway, the trading panel picked certain stocks they wanted to avoid for the coming months, or "summer vacation" picks.
Najarian wanted to hold off on Apple. While he likes its longer-term outlook, the company's lack of catalysts until autumn has him looking elsewhere for investments.
Seymour picked Disney (DIS). He said the valuation looks a little high, the stock is struggling near current levels, and it has no upcoming catalysts either.
Kelly is a short-seller of Boeing (BA) based on valuation.
Nathan doesn't like Wynn Resorts (WYNN), which is sitting on "massive support" and can't seem to rally along with the broader market. If it breaks support, it could drop to $180.
For their final trades, Seymour is buying International Flavors & Fragrances (IFF) and Kelly is buying the iShares MSCI Brazil Capped ETF (EWZ). Nathan is a buyer of July put options on WYNN and Najarian is a buyer of MSFT.
-- Written by Bret Kenwell in Petoskey, Mich.