NEW YORK (TheStreet) -- With the markets' steep pullback midday on Tuesday, CNBC's "Fast Money Halftime Report" panelists offered up their assessment of whether the market is due for a correction and explored how homebuilders figure into the picture.
The Dow Jones Industrials Average, Nasdaq and S&P 500 declined more than 1% across the board in midday trading,
"The market is due for a correction," said Joe Terranova, chief market strategist of Virtus Investment Partners. "Today is not the day to invest in the market. ... The market will continue to fall into tomorrow."
Jim Lebenthal, chief investment officer and CFO of Lebenthal & Co., agreed. Investors may believe the Fed won't raise rates until 2016, he said, adding, however, with reports of durable goods performing better than expected and other economic data pointing to a stronger economy, investors may begin to wonder if the Fed may raise rates sooner.
"All of a sudden, the market says, 'Whoa' and thinks the Fed may be onto something here and readjusts its expectations to a September or December rate hike," said Lebenthal, in explaining Tuesday's downturn. But even with this adjustment, he believes investors can pick stocks and that shares are likely to go higher from here.
Both Lebenthal and Terranova agreed, however, that if unemployment figures were to suddenly worsen, that could prompt a market correction.
Guest panelist Eddie Perkin, portfolio manager of investment management firm Eaton Vance, said he doubted a rate hike was likely to happen soon and advised investors to remain in the markets but act defensively. He suggested owning large-cap stocks, as well as shares of utilities, real estate investment trusts (or REITs) and companies offering consumer staples.