'Fast Money' Recap: Bond Volatility Leaves Stock Market Yawning

NEW YORK (TheStreet) -- For now, U.S. equities are shrugging off the volatility being seen in the bond market, where yields on the 10-year Treasury bond shot higher by 4.4% and are higher by nearly 13% this week alone. 

However, equities will eventually start to suffer if the bond market remains this volatile, Brian Kelly, founder of Brian Kelly Capital, said on Wednesday's CNBC "Fast Money" TV show. The European Central Bank has already stated that it's not worried about volatility while pushing through with its QE program, which could also cause volatility in the U.S. stock market, he added. 

The stock market has had a lot of opportunities to selloff, yet it has traded relatively well. That leaves Guy Adami, managing director of stockmonster.com, thinking that the S&P 500 could go on to make new highs. The fact that the index is lingering around its all-time highs makes it seem like a selloff is not on the near-term horizon, he added. 

The lack of liquidity could create a problem in the bond market, as the iShares 20+ Treasury Bond ETF (TLT) declined another 1.6% on Wednesday. However, the higher yields bode well for financial stocks, a sector that Pete Najarian, co-founder of optionmonster.com and trademonster.com, is bullish on. 

Najarian pointed out the bullish options activity in stocks such AIG (AIG) and JPMorgan Chase  (JPM). "I think they all have room to the upside," he said of the different industries within the sector. 

Karen Finerman, president of Metropolitan Capital Advisors, likes JPMorgan, Citigroup (C) and Bank of America (BAC). These companies should benefit from an eventual rate hike from the Federal Reserve, she explained. 

Kelly added that insurance companies like MetLife (MET) and Prudential Financial (PRU) will also benefit form higher interest rates. Adami added that Prudential seems likely to move higher and believes it can hit $103. He also thinks Goldman Sachs (GS) can rally to $240. 

Facebook (FB) ad revenue has Robert Peck's attention. The managing director at SunTrust Robinson Humphrey said Facebook now receives four billion daily video views, although Peck acknowledged that sometimes these views are from users who only watch for several seconds. 

This is in contrast to Google's (GOOGL) YouTube, where users come with the intent to watch videos, Peck explained. Either way, both companies are poised to command plenty of ad dollars from advertisers looking to shift some of their marketing dollars away from television and over to online video.

"I've liked Facebook for a while," Adami said, but the stock has struggled with $85 as resistance. "I think Facebook goes a lot higher from here," he added, saying he expects the stock to eventually "blow through" that level and make new highs. 

Shares of GoPro (GPRO) have climbed a robust 47% in the past three months. However, Brad Erickson, a research analyst at Pacific Crest Securities, said the company could report just an in-line quarter for September, which may be seen as disappointing by investors. Likewise, he believes the company will face tough comparable sales when it comes to this year's holiday season. 

Adami is bullish on GoPro, saying he expects the stock to go higher. He also pointed out that analysts at Piper Jaffray recently increased their price target on the stock to $68, while the company plans to speak at a Piper Jaffray conference on June 10. 

GoPro is more of a content company than a hardware company, Kelly added. While he doesn't like the stock's short-term prospects, he is bullish on GoPro over the long-term.

For their final trades, Najarian is buying JP Morgan and Kelly is a buyer of Prudential Financial. Finerman said to buy Mylan  (MYL) and Adami is buying Goldman Sachs. 

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