Stocks Attempt to Rebound Amid Volatile Oil Prices, Russia Ruble Problems

NEW YORK ( TheStreet) -- A rebound in oil prices helped the U.S. stock market stabilize on Tuesday, but other systemic risks have investors worried, Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said on CNBC's "Fast Money Halftime" show. 

The Russian ruble has been incredible volatile, as have Russian equities, with the Market Vectors Russia ETF (RSX) climbing some 20% from its lows made in the morning. Higher crude prices are boosting both U.S. and Russian stocks, he said. 

Oil is driving the price of many different markets, said Pete Najarian, co-founder of optionmonster.com and trademonster.com. However, as oil moved lower in the morning, many U.S. energy stocks were flat or even positive on the day. That's a bullish sign, he said, although volatility in the market is still quite high. 

Paul Richards, managing director and head of FX, rates and credit distribution North America at UBS, said Russia's currency issues are an isolated event within the emerging markets group. Falling oil prices have only exacerbated the issues. Overall, though, lower energy prices and lower rates will be good for global consumers. The global economy and Russian crisis will likely force the European Central Bank to initiate some form of stimulus in January, he said.

If oil prices do indeed stabilize, investors will calm down and the stock market should stop declining, according to Stephanie Link, chief investment officer of TheStreet and co-manager of the Action Alerts PLUS portfolio. Industrial stocks including 3M Company (MMM) and Honeywell (HON) both look attractive after positive 2015 outlooks, as does Boeing (BA) with its dividend and buyback boost. 

The credit market for exploration and production, and oil services companies are attractive and will become more attractive through the end of the year, said Wilbur Ross, CEO and chairman of WL Ross & Company. Many fund managers are selling energy positions so they will not have as much exposure on their books and for tax benefits headed into the end of 2014. 

Lower oil prices will be good for importing regions like Europe, Japan, China, India and the U.S., Ross added. There are certainly concerns right now about junk bonds. The continual selling is making it very hard to offload any of these positions.

Mike Mayo, bank analyst at CLSA, said Citigroup (C) has the most exposure to Russia, but has completely hedged its risk. For that reason, the recent selloff presents a buying opportunity. Citi has the most potential upside in March for its ability to boost its dividend and buyback program.

Morgan Stanley (MS) is attractive, trading at just 12 times earnings and 1.2 times tangible book value, said Link. It also has an attractive wealth management business. The company is an AAP holding.

Najarian reminded investors that Nike (NKE) will report earnings on Thursday. He expects the report to be positive news for the retail group, possibly giving a boost to Under Armour (UA) , Dick's Sporting Goods (DKS) and Foot Locker (FL) .

Shares of Lululemon Athletica (LULU) , another AAP holding, still have upside, according to Link. Brown added that restaurant mall traffic has been very impressive throughout the holidays, which is something for investors to keep in mind. 

For their final trades, Brown is buying the Energy Select Sector SPDR ETF (XLE) , Link is a buyer of Cerner (CERN) and Najarian said to sell Acgo (AGCO)  for those investors who bought on Monday, which was Najarian's final trade. 

-- Written by Bret Kenwell 

Follow @BretKenwell

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