NEW YORK (TheStreet) -- Shares of Apple (AAPL - Get Report) climbed 1.9% on Tuesday, and the stock is likely to continue "grinding" higher, Guy Adami, managing director of stockmonster.com, said on CNBC's "Fast Money" TV show.
Adami added that Apple Pay has gained much more traction, much faster than many investors would have previously thought.
Speaking at the Goldman Sachs Technology and Internet conference, Apple CEO Tim Cook also said the company isn't a "hoarder" when it comes to returning capital to shareholders and investors should look to the next earnings report in April to get more clarity on those plans.
It would be nice if Google (GOOGL - Get Report) would adopt some of those capital return philosophies, said Karen Finerman, president of Metropolitan Capital Advisors. She noted Apple finished the trading session with a market cap in excess of $700 billion, becoming the first U.S. company to reach that amount.
Apple's biggest challenge will eventually become itself, when it has to face its tough comparable sales from the year prior, said Tim Seymour, managing partner of Triogem Asset Management. For now, momentum remains quite strong but investors should be careful of becoming too bullish on the stock.
He added that if Apple does return more capital to shareholders in the form of an increased dividend payout, it could attract more income investors into the mix, especially if the dividend yield crosses 3%.
The upgrade cycle for the iPhone 6 and iPhone 6 Plus continues to be very strong, said Steve Grasso, director of institutional sales at Stuart Frankel. For investors, this is a stock that should be bought and held onto, not traded in and out of.
Oil dropped 4.2% on the session. While there is debate as to where oil prices are going, Tom Kloza, co-founder of Oil Price Information Service, said prices have yet to hit bottom. West Texas Intermediate could trade down into the $30s and possibly even $20s before hitting its low point. However, he said, if oil drops that low he doesn't expect it to stay there for long.
There is simply too much supply on the market, he explained. The falling rig count doesn't tell the whole story and the data can be misleading. There will be deeper production cuts to come, both domestically and abroad. Look for oil prices to bottom in the second quarter. U.S. refinery stocks should continue to benefit, Kloza concluded.
Adami pointed out Tesoro (TSO) hit a new all-time high on Tuesday. It reports earnings after the close on Wednesday and that will give investors an opportunity to see how refiners are really doing in this environment.
Oil equities are likely to bottom before the actual commodity does, said Finerman. In other words, forward-looking investors will price the worst-case scenario into the stocks, which will have likely hit their low before oil does. For all we know, that's already happened, she added.
Oil is headed lower and will go on to make new lows, Grasso added. Last week featured a large short-covering rally in oil, but it's now safe to short the commodity once again, especially with Wednesday's inventories report likely to reveal a supply glut, he said.
For their final trades, Seymour is buying General Motors (GM - Get Report) and Grasso is a buyer of Macy's (M - Get Report) . Finerman said to buy Google and Adami is buying Pfizer (PFE - Get Report) .
-- Written by Bret Kenwell