Pete Najarian, co-founder of optionmonster.com and trademonster.com, says investors should stick with the financial and health care sectors. Specifically, he pointed out bullish options activity in KeyCorp (KEY), a regional bank.
Regional banks are the place to be, added Joseph Terranova, chief market strategist for Virtus Investment Partners. In addition to being long regional banks, he is a seller of utility stocks.
As the economy continues to improve, most investors are expected the Fed to adjust its economic outlook going forward. This has led many investors to believe that an interest rate increase is on the table. One among them is Jim Lebenthal, CFO and CIO of Lebenthal & Company.
Lebenthal "strongly believes" the Fed will raise rates in September, and he expects the overall market to rally as a result. However, he was quick to point out that Greece is still a big factor when it comes to which direction stocks are headed.
Terranova was beside himself. Challenging the call, he questioned why anyone in their right mind would short-sell the stock at $65 with hopes of it trading down to $60. Bristol-Myers Squibb "could be bought tomorrow," given the strong M&A environment in the pharmaceuticals sector, he asserted.