'Fast Money' Recap: The Fed Acts and the Markets React

NEW YORK (TheStreet) -- The S&P 500 climbed 0.13% following the Federal Reserve's decision to postpone hiking interest rates for a "considerable time."

On CNBC's "Fast Money" TV show, the trading panel gave their views on what happens to the market now.

Pete Najarian, co-founder of optionmonster.com and trademonster.com, pointed out the CBOE Volatility Index (VIX.X) was pushed even lower on Wednesday despite its rally in the early part of the session. Large-cap technology, industrial metal companies and financial stocks continue to do well and look attractive. 

Tim Seymour, managing partner of Triogem Asset Management, said mining companies are likely to struggle due to the lower prices of gold as a result of the higher U.S. dollar. The rising dollar will also likely add volatility to the stock market and put downside pressure on companies with international exposure as well as commodities.

Brian Kelly, founder of Brian Kelly Capital, said that so far the rising U.S. dollar has not affected the stock market. However, he suggested it is only a matter of time before heightened volatility returns. He would start to look at commodities on the long side, he said. 

Guy Adami, managing director of stockmonster.com, said it is odd bonds sold off on Wednesday considering the Federal Reserve plans to keep interest rates low. Generally, it would make sense for bonds to rally as rates decline further.

Paul Hickey, co-founder of Bespoke Investment Group, said that in the week following Fed announcements the S&P 500 usually has trouble moving to the upside. The three sectors that struggle the most include consumer discretionary, transportation and industrials. Three companies he wants to avoid, in part due to the rising U.S. dollar, are Las Vegas Sands (LVS) , Caterpillar (CAT) and Boeing (BA) . 

Seymour is not a buyer of Caterpillar, which will likely see earnings headwinds emerge in Europe and Brazil. Kelly said he would be a buyer of Boeing if the stock can break out of its recent "consolidation pattern."

Adami said shares of Pier 1 Imports (PIR) could continue selling off following its recent earnings miss. He would avoid the stock for now. 

Najarian said he is not yet a buyer of General Mills (GIS) , which missed on earnings and revenue estimates in the most recent quarter. The company has rising costs and falling margins, he added. Seymour said General Mills has to improve its operations before he would be a buyer. He likes Pinnacle Foods (PF) . Kelly is also not a buyer of GIS. 

Adami said investors can stay long U.S. Steel (X) and other steel stocks. The industry likely has more upside. Najarian agreed. 

Kelly is a buyer of Cliffs Natural Resources (CLF) with a stop-loss at $14. 

The trading panel was asked to choose between buying Google (GOOG) (GOOGL) or Apple (AAPL) . 

Najarian would buy Apple for its upcoming products and potential to gain market share. The other three traders preferred Google for its dominance on the Internet, advertising and online search, as well as for its long-term growth prospects. 

Kelly said he is a buyer of Twitter (TWTR) near current levels. Seymour and Najarian suggested that Twitter has a lot of revenue growth potential and room for upside in the stock price. 

Robert Wettenhall, managing director at RBC Capital Markets, was a guest on the show. For most of the year he has been cautious on the housing market but he is now optimistic heading into 2015. He liked Lennar's (LEN) recent earnings report and made the company one of his top picks along with PulteGroup (PHM) , KB Home (KBH) and D.R. Horton (DHI) . He also likes Mohawk Industries (MHK) and Masco (MAS) . If lending standards ease slightly, the housing market could really take off, he concluded. 

Adami is a buyer of KB Home while Seymour is a buyer Home Depot (HD) . Najarian likes Whirlpool (WHR) . 

Sony (SNE) fell 7% and was the first stock on the show's "Pops & Drops" segment. Najarian said he would avoid the struggling company.

Activision Blizzard (ATVI) dropped 3%. Kelly said investors can get long the stock if it holds support near $21.40. 

Trina Solar (TSL) popped 7%. Seymour called it one of the cheapest and most profitable companies in the industry and he is long the stock. He also said investors who buy Trina Solar can sell Yingli Green Energy Holding (YGE) . 

Rackspace Holding (RAX) plummeted 18%. Adami said investors can buy the stock as a trade.

Najarian pointed out the bullish options activity in shares of MetLife (MET) , specifically in the December $57.50 call options. 

Aswath Damodaran, New York University professor of finance, said the Alibaba initial public offering is fairly priced near current levels. Although it is a very large company with very impressive growth and profitability, he is not a buyer for the long term. Damodaran reasoned the company's corporate governance is not attractive because it prevents shareholders from having control of the company. The stock would need to trade at a discount to its fair valuation in order to interest him as a buyer. 

Najarian suggested Goldman Sachs (GS) could be a profitable way to benefit from the large number of IPOs this year since the company has been an underwriter in many of the deals. Seymour said he is a buyer of Alibaba as well as Baidu (BIDU) . Kelly said Alibaba will perform well but he is a not a long-term buyer. Adami said he would take profits in Yahoo! (YHOO) between $42.50 and $45. 

Najarian said he would be a buyer of airline stocks on a pullback. 

Kelly said he has a long-term price target of $15 on shares of BlackBerry (BBRY) . 

Seymour said he would own MGM Resorts (MGM) near current levels.

For their final trades, Kelly is a buyer of the iShares MSCI Hong Kong ETF (EWH) and Seymour is buying Baidu. Najarian is a buyer of MetLife and Adami would buy CME Group (CME) .


-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

Follow TheStreet.com on Twitter and become a fan on Facebook.

 

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter.

More from Jim Cramer

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home