'Fast Money' Recap: Stock Market Reacts Ahead of the Fed Meeting

NEW YORK (TheStreet) -- The S&P 500 rallied 0.75% ahead of the Federal Reserve's meeting and Chair Janet Yellen's press conference Wednesday. 

On CNBC's "Fast Money" TV show, Brian Kelly, founder of Brian Kelly Capital, said the Federal Reserve's monetary policy is what's driving the stock market. He does not think the market is ready to embrace higher interest rates. 

Dan Nathan, co-founder and editor of riskreversal.com, said the current market does not feature robust jobs growth or revenue growth. He added that Wednesday could shape up to be a "sell the news" event and insisted that volatility is set to return to the stock market. 

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Guy Adami, managing director of stockmonster.com, said he was surprised by the S&P 500's big rally on Tuesday, as well as bonds closing lower. If rates are to stay low -- as reports suggest, which sent the S&P 500 higher -- then bonds should have rallied, he reasoned. 

Karen Finerman, president of Metropolitan Capital Advisors, said she is in wait-and-see mode. She will buy some portfolio protection when the CBOE Volatility Index (VIX.X) drops below $12.

Paul Sankey, oil and gas analyst at Wolfe Research, said refinery stocks and exploration and production stocks are poised to do well. The demand for oil in the U.S. is strong enough, and that should help refiners going forward. His top picks include Marathon Petroleum (MPC) , Western Refining (WNR)  and Delek U.S. Holdings (DK) . 

Kelly is a buyer of EMP stocks via the SPDR S&P Oil & Gas Exploration & Production ETF (XOP)  because there is likely to be a supply problem in the future. 

Adami is a buyer of Exxon Mobil (XOM) and Western Refining. Finerman is buying Dorian LPG (LPG) . 

Adami said investors can try taking a long position in Rackspace Hosting (RAX)  but admitted that it could be a rough ride for the stock on Wednesday. Nathan and Kelly disagreed, saying they would not be buyers of RAX.

Ramon Llamas, mobile phones research manager at International Data Corp., said the possible delay for Apple's (AAPL) iPhone 6 in China may not be that big of a deal, as long as it is released ahead of the Chinese New Year on Feb. 19. The fourth quarter is important in the U.S. but the first quarter is important in China when it comes to sales. Apple can't wait too long to release the phone because competition is moving fast for smart phones in the region. 

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Adami said he still thinks Apple is headed toward $88. Finerman said she is staying long Apple but is selling out-the-money call options to hedge her position. 

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