NEW YORK (TheStreet) -- While the S&P 500 (SPY) is only slightly lower in Tuesday's trading session, equities did experience a wave of early selling, with the index dropping over 1% early in the day. Generally, the market pulls back after taking out key levels, but tend to rally even farther in the not too distant future, said Stephen Weiss, founder and managing partner of Short Hills Capital Partners.
On CNBC's "Fast Money Halftime" show, he said the U.S. market is in "phenomenal shape" and is a better investment than international equities.
The 12% pullback in shares of Spirit Airlines (SAVE) is a buying opportunity, said Mike Murphy, founder of Rosecliff Capital, who initiated a long position. He plans to buy of Delta Air Lines (DAL) and JetBlue Airways (JBLU) if they endure similar selloffs.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, is also a buyer of Spirit Airlines. And he likes the low valuation and growth prospects of financial stocks and big tech companies, he said.
The bad news seems priced into the financial stocks, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management. Financial stocks have lagged the broader market over the past few years, so they have a lot of potential as the U.S. economy picks up steam.
Investors should use pullbacks in Citigroup (C) , Wells Fargo (WFC) , Bank of America (BAC) and J.P. Morgan (JPM) as buying opportunities, Murphy said. The light trading volumes won't have too much of a negative affect, he added.
"They're fine," Weiss said of the banks. The fundamentals continue to improve, as does the economy.
"I bought Citigroup," Najarian said, after agreeing with Weiss. Najarian said investors should pay attention to the government's fines on the banks, but shouldn't be overly concerned about it.
The S&P 500 should end 2015 near 2,200, said Sovita Subramanian, head of U.S. equity and quantitative strategy at Bank of America. That would represent a 7% return, which is roughly in line with the historical return for equities.
Valuations are now near fair value, as opposed to "dirt cheap" like a few years year ago, Subramanian said. She suggested investors stick with large-cap stocks over small-cap stocks, but also to try some contrarian plays for 2015. She's a buyer of semiconductors, tech storage and insurance stocks.
Murphy said he would rather stick with the winners, rather than buy the stocks that haven't been working.
Brown pointed out that many strategies that have worked well in 2014 may not work well in 2015, like Subramanian said. For example, global cyclicals, which have not done well this year, could outperform next year, he said.
The conversation shifted to oil stocks. The commodity rebounded slightly on Tuesday, up 1.25%. Since no one knows where the bottom is, investors who are buying energy stocks should stick with high-quality names, Weiss said. Also, only take partial positions, he suggested. That way investors can average into their position over time and improve their cost basis.
"I still think the market is reasonably valued," said John Rogers, chairman and CEO of Ariel Investments. There's still a good deal of pessimism in the market, he explained, which could help fuel the stock market's rise. The U.S. economy is still in the early innings of its recovery, he said.
U.S. Silica looks interesting on the long side -- but "what's the next catalyst to take it higher?" Najarian asked. It seems too early to buy the stock, Brown added.
-- Written by Bret Kenwell
TheStreet Ratings team rates JETBLUE AIRWAYS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate JETBLUE AIRWAYS CORP (JBLU) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: JBLU Ratings Report