Adami agreed with Finerman, saying that between Ford (F) and GM, he would buy GM. He also likes BorgWarner (BWA) and Delphi Automotive (DLPH) on the long side. Grasso is a buyer of Ford.

Yahoo! (YHOO) jumped 2.5% following an analyst upgrade based on Alibaba's valuation. Yahoo! has a 22.6% stake in the Chinese Internet company. Nathan said investors are discounting shares of Yahoo! because they are unsure of what CEO Marissa Mayer will do with the proceeds from the Alibaba IPO, and they are also pessimistic on Yahoo!'s core business. He is a buyer near $30, not $35. 

Adami said Yahoo! should appreciate by $6 to $7 per share based on its stake in Alibaba. 

D.R. Horton (DHI) is "very exposed to the first-time homebuyer," Grasso said. The stock has a lot of room to the upside. He is long KB Home (KBH). 

Dennis Gartman, editor and publisher of The Gartman Letter, was a guest on the show. He said the corn and soybean crop this year is "huge" while the wheat crop is also relatively large. This drives prices down, making input costs lower for companies like Kellogg (K) and General Mills (GIS), he reasoned. 

Adami said shares of GIS are still not cheap based on valuation, despite the recent selloff. He added that Archer Daniels Midland (ADM) needs to break through $46 on the upside or it could risk forming a "double top," a bearish technical formation. 

Grasso is a buyer on Monsanto (MON). 

Alexandra Lebenthal, president and CEO of Lebenthal & Company, suggested that Puerto Rican debt, 66% of which is held by U.S. mutual funds, could be at risk of default. The bonds are currently trading at 40 cents on the dollar but a restructuring of the debt could reprice the bonds at just 10 cents on the dollar. She suggested investors avoid this investment. 

GoPro (GPRO) jumped 14% and was the first stock on the show's "Pops & Drops" segment. Adami said traders should buy the stock because it has upside momentum. 

Micron  (MU) climbed 5%. Grasso suggested that investors take some profits near current levels despite the positive catalysts currently driving the stock higher. 

Allergan (AGN) fell 3%. Finerman said a deal between Allergan and Vertex Pharmaceuticals (VRTX) appears likely to happen. 

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