On CNBC's "Fast Money" TV show, the trading panel gave their analysis of the overall market.
Brian Kelly, founder of Brian Kelly Capital, said the economic news from this week was mostly positive. He said investors should stay long U.S. equities.
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Tim Seymour, managing partner of Triogem Asset Management, said that although the non-farm payrolls report did not look that impressive at first, it did show wage growth. Overall, it is a strong period for the labor market and he is a buyer of equities.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, said that between bonds and stocks, he is a buyer of the latter. Specifically, he likes large-cap pharmaceutical and large-cap technology stocks.
Guy Adami, managing director of stockmonster.com, said the TLT has done very well this year, up almost 15%, but has done very poorly over the past week. If rates move higher, the exchange-traded fund is likely to decline even further.
Walter Piecyk, managing director at BTIG, said Apple (AAPL) investors' expectations seem more in line with reality this year than they were last year when everyone expected a lower-priced iPhone for emerging markets. There seems to be less risk in the stock price because of the more realistic expectations, he reasoned. Of course, if the products are terrible, then the stock is likely to decline.
Adami said he wants to buy shares of Apple near $88. "We'll see how it trades" following its Sept. 9 event, he said.
Seymour said Apple is much different than it was in 2012 due to its share repurchase program, dividend and focus on software and services. He is a buyer on weakness. Najarian is long and looking for the stock to climb over $105.
Alibaba is scheduled to begin trading on Sept. 19. Seymour said Chinese Internet stocks could see some profit taking ahead of the event but he is a buyer of Baidu (BIDU) if it pulls back. He also suggested that Yahoo! (YHOO) could climb to $45.
Najarian said Yahoo! is still the best way to play the Alibaba IPO and suggested that it could reach $50 per share. Adami said Yahoo! should trade up toward $42.50 to $45. Kelly said that for now Yahoo! is still in play. However, following its big move higher the stock is setting up for a "sell-the-news" event.
Najarian pointed out some bullish options activity for two companies, both of which he is long. Delta Air Lines (DAL) saw bullish activity in the weekly Sept. 12th $40 call options and United Continental Holdings (UAL) saw bullish activity in the Oct. $52.50 and $57.50 call options.
Control4 (CTRL) fell 2% and was the first stock on the show's "Pops & Drops" segment. Kelly said the stock still seems like a takeout candidate and he is long via options.
Priceline.com (PCLN) dropped 2%. Seymour said investors should buy this industry-dominating stock on this pullback.
Gilead Sciences (GILD) lost 4%. Adami warranted caution on the stock that is seeing increased volatility. Investors that have been long the stock, should consider taking profits in half of their position.
Gap (GPS) closed lower by 4%. Najarian said any further decline in the stock price is a buying opportunity.
The trading panel was asked for their top calls on which stocks are too expensive. Seymour's pick was Netflix (NFLX) while Najarian named Caesar's Entertainment (CZR) . Adami called TrueCar (TRUE) overvalued while Kelly picked Amazon (AMZN) .
Shares of Tesla Motors (TSLA) dropped 3% after CEO Elon Musk said the stock seems "kind of high right now."
Seymour said the chief executive is trying to manage expectations, but the stock is certainly overvalued. He called the upcoming Gigafactory project a "money pit" and said costs will go up. Kelly said it seems likely that Tesla will soon do a secondary offering.
For their final trades, Seymour is buying the ProShares UltraShort 20+ Year Treasury Bond ETF (TBT) and Najarian is buying United Continental Holdings. Kelly is a buyer of Starbucks SBUX and Adami is a buyer of Jarden (JAH) .
-- Written by Bret Kenwell in Petoskey, Mich.