NEW YORK (TheStreet) -- U.S. equities made new all-time highs on Friday after European central banker Mario Draghi discussed quantitative easing and China's central bank unexpectedly cut interest rates.
Investors had expected Draghi's announcement but stocks really started to move higher after the unexpected Chinese news, Mike Murphy, founder of Rosecliff Capital, said on CNBC's "Fast Money Halftime." Investors can buy Joy Global (JOY) and Caterpillar (CAT) as a result.
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Investors should look to the iShares MSCI Europe Financials ETF (EUFN) and the WisdomTree Europe Small Cap Dividend ETF (DFE) , according to Josh Brown, CEO and co-founder of Ritholtz Wealth Management.
Also, agriculture stocks appear to be breaking out, he said. Investors can buy the Market Vectors Agribusiness ETF (MOO) and the Materials Select Sector SPDR ETF (XLB) if they believe the rally will continue.
U.S. stocks will likely continue to grind higher into year's end, said Stephanie Link, chief investment officer of TheStreet and co-manager of the Action Alerts PLUS portfolio.
However, international stocks will likely play a bigger role in 2015, she said. She likes industrial and consumer cyclical stocks as well as U.S. companies with international exposure such as FedEx (FDX) , Yum! Brands (YUM) and Cummins (CMI) .
Many investors like the retail sector heading into the end of the year. Brown is one of those investors, saying holiday spending is likely to be strong. He advised investors to stay long the SPDR S&P Retail ETF (XRT) .
The retail industry has struggled until recently but can continue to rally, according to Dana Telsey, CEO and chief research officer at Kelsey Advisory Group. Kors, Under Armour, Best Buy (BBY) , Nike (NKE) , Tiffany & Co. (TIF) and Limited Brands (LB) should do well.
Telsey added that Lulemon could be a potential turnaround story in 2015, but expects teen retailers and women's apparel companies to continue struggling. Overall, the retail companies are stronger headed into this year's holiday, she concluded.
The analyst community was out with several big technology stock downgrades on Friday. CLSA downgraded Intel (INTC) to sell with a price target of $31. Najarian disagreed with the call, pointed out the company's strong guidance and higher dividend. Intel is "hitting on all cylinders" right now, he added.
There's nothing wrong with taking profits in Intel, which is up 39% on the year, Link said. However, the valuation is still somewhat attractive.
Evercore Partners downgraded eBay (EBAY) to a sell and assigned a price target of $49. Brown said the downgrade is reasonable, given that the payments space is getting "crowded," which could hurt eBay's PayPal business. Perhaps shares of eBay will trade better as the PayPal spinoff gets closer, Link reasoned.
Jefferies initiated coverage on Microsoft (MSFT) with a sell rating and $40 price target. "We added to our position," Link said, referring to Action Alerts PLUS. The stock is up 29% for the year to date, but it still only trades at 16 times 2015 earnings estimates. The company can easily afford to raise its dividend and buyback program as well.
"There's a lot more companies out there I'd be telling you to sell before Microsoft," Murphy said.
For their final trades, Link is buying Dollar General (DG) and Murphy is a buyer of Hertz Global Holdings (HTZ) . Brown said to buy the Financial Select Sector SPDR ETF (XLF) and Najarian is buying Realogy Holdings (RLGY) .
-- Written by Bret Kenwell