NEW YORK (TheStreet) -- The S&P 500 should still enjoy a "Santa Claus rally" despite the fall in oil prices, Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC, said on CNBC's "Fast Money Halftime" show.
On Wednesday, oil slid over 4% to make new lows at $60.43 per barrel. While this has a negative impact on the energy sector, investors should realize this sector has been under pressure since July, Weiss said. Utilities and health care have lead the rally, while Saudi Arabia -- not demand -- continues to drive down oil prices.
Investors should also stick with individual stocks and sectors headed into year's end, he said. But those who prefer to buy the indices should stick with the S&P 500, which tends to outperform the Dow Jones Industrial Average, Nasdaq and Russell 2000 in the month of December.
This huge drop in oil prices is like a "big tax cut" for the consumer, said Josh Brown, CEO and co-founder of Ritholtz Wealth Management. The longer prices stay near these levels, the better off the economy is, even though the energy sector accounts for roughly 10% of the S&P 500.
Since no one knows where the bottom is for crude prices, investors should avoid the energy sector for the time being, according to Pete Najarian, co-founder of optionmonster.com and trademonster.com. Investors shouldn't shy away from the financials, pharmaceutical companies or airline stocks.
The airline sector has undergone a large reconstruction to generate record profits with oil at $100 per barrel. Now that oil has drastically declined, they should be even more profitable, according to Jamie Baker, airline analyst at JPMorgan.
The additional profit should find its way into the pockets of many shareholders, he added. Despite the large run in share prices, many of these companies are still cheap on a valuation basis. American Airlines (AAL) doesn't hedge its fuel costs, so if prices stay this low it will be the biggest beneficiary, he said.