NEW YORK ( TheStreet) -- October's nonfarm payrolls were slightly lower than expectations but unemployment hit a six-year low and August and September numbers were revised upward.
With the S&P 500 at another all-time high, Pete Najarian, co-founder of optionmonster.com and trademonster.com, said it's time to start buying stocks. On CNBC's "Fast Money Halftime" show Friday he said he particularly likes rail stocks.
The Federal Reserve is finished with quantitative easing and now it's the European Central Bank's turn, said Jon Najarian, co-founder of optionmonster.com and trademonster.com. Republicans controlling both houses of Congress he said he likes fracking stocks and pipeline stocks.
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Stephanie Link, chief investment officer of TheStreet and co-manager of the Action Alerts PLUS portfolio, said she's beginning to sell some financial positions in favor of beaten-down energy stocks including Ensco (ESV) , Royal Dutch Shell (RDS.A) and Kinder Morgan (KMI) .
Fund managers with underperforming assets on the year are likely to start loading up on stocks going into the end of the year, said Steve Grasso, director of institutional sales at Stuart Frankel. He thinks energy stocks can outperform but he likes Disney (DIS) on the long side.
Disney shares sold off slightly after reporting in-line earnings. Mike Murphy, founder of Rosecliff Capital, agreed with Grasso that the stock is a buying opportunity. On the broader market, he noted stocks generally outperform in November and December.
"It's time to be invested," said David Kudla, CEO of Mainstay Capital. Investors who were looking for a 10% pullback got what they wanted and now the market is in a risk-on state, he said. The labor market, GDP and earnings are all strong. He likes financials, technology and small-cap stocks.
The traders were split on Twitter (TWTR) . Link argued the company still has a "very good growth story," with ad revenue up 109% year over year in the most recent quarter. Margins are increasing and the company has an upcoming analyst day that could be a bullish catalyst, she said.
Murphy disagreed. He pointed out Facebook (FB) had similar growth struggles when it first went public. However, Facebook had 1.3 billion users so the turnaround was more impressive. Twitter only has a few hundred million users. Even if the company can turn things around, the growth might now be strong enough. If the stock breaks below $40, it could have a lot of downside ahead.
Don't be short Twitter, Jon Najarian said. If the CEO decides to step down, the stock could jump 5% to 10% on the announcement. Twitter has "tremendous upside," Pete Najarian added, but the company needs to find a way to grow its user base and boost engagement.
Andy Nahas, founder of the Prospect Fund, didn't comment on Twitter specifically but offered guidance on growth stocks. Investors need to seek out three main characteristics: that the company does not sell harmful products or services like cigarettes, soda or guns; has recurring revenue; and has the ability to grow that revenue substantially from current levels, ideally by tenfold. His top pick is Vipshop Holdings (VIPS) .
El Pollo Loco (LOCO) climbed 1.5% following its third-quarter earnings. Revenue were "very strong," Pete Najarian said. He is a buyer of the stock.
Don't forget about Starbucks (SBUX) , Murphy added. The company has very strong pricing power and the stock seems poised to make new all-time highs.
For their final trades, Link is buying Marathon Oil (MRO) and Pete Najarian is a buyer of United Continental (UAL) . Murphy is buying Disney and Jon Najarian said to buy Emerge Energy Services (EMES) .
-- Written by Bret Kenwell