NEW YORK (TheStreet) -- Japan surprised the global equities markets Monday when it announced third-quarter GDP fell 1.6% compared to estimates looking for a gain of 2%. The country will continue to weaken its currency, warned Brian Kelly, founder of Brian Kelly Capital, on CNBC's "Fast Money" TV show.
The country will continue to buy Japanese stocks and bonds and will likely hold off on raising taxes for some time, he added. Investors should stay short the Japanese yen.
The S&P 500, which closed flat on Monday, traded pretty well given this news, said Guy Adami, managing director of stockmonster.com. The Nikkei declined 3%, and he agreed that investors can stay short the yen.
The level of risk in the markets should certainly be elevated, according to Karen Finerman, president of Metropolitan Capital Advisors. For now, no one seems to care about this poor economic data but eventually there will be negative ramifications.
Lower oil demand is showing the global economy appears to be slowing, said Dan Nathan, co-founder and editor of riskreversal.com. Investors can buy the iShares 20+ Treasury Bond ETF (TLT) .
Japan's GDP miss was "egregiously large," said Dennis Gartman, editor and publisher of The Gartman Letter. The result will kill any speculation about a potential tax hike. Investors should buy gold in yen terms, buy Japanese stocks and sell the yen against a long position in the euro, U.S. dollar or Canadian dollar.
Facebook (FB) announced it will have a professional profile platform for its users. This is a great idea, according to Martin Pyykkonen, analyst at Rosenblatt Securities, but it won't put an end to LinkedIn (LNKD) . Two-thirds of LinkedIn's revenue are from corporations looking to recruit, and this model would be extremely difficult for Facebook to replicate.
Although LinkedIn is expensive based on valuation, Adami still likes the stock on the long side. Investors can sell short shares of Amazon (AMZN) with a "tight stop-loss."
Nathan says shares of Facebook can trade higher into year's end and perhaps approach its previous all-time high around $81. He added that Google (GOOGL) is having trouble gaining upside momentum and the stock looks likely to head lower.
Forget Facebook and LinkedIn, Twitter (TWTR) is the play, according to Kelly. The company has a unique property and a lot of potential but has trouble communicating with investors.
Halliburton (HAL) said it will pay $34.6 billion or $78.62 per share to acquire Baker Hughes (BHI) . The deal is expected to close in the second half of 2015. Adami said his top pick continues to be Schlumberger (SLB) and reasoned that General Electric (GE) should get back to its roots in the energy field by considering an acquisition in the oil services industry.
GE shouldn't do anything, Finerman and Nathan agreed. The company is well managed and pays a solid dividend yield of 3.3%. It may be an attractive catch-up play in 2015.
Low oil prices haven't just put oil service stocks in play but boosted the performance of convenience store vendor CST Brands (CST) . The company's CEO and President Kim Lubel said falling oil prices tend to take a little longer to push gasoline prices lower. The lower gas prices should result in an uptick in spending at gas station stores.
CST Brands is a buy on the pullback, Kelly said. He reminded investors that CVS Health (CVS) has stopped selling cigarettes, and those sales may be shifting to gas station convenience stores.
-- Written by Bret Kenwell