Stocks Soar Day After Fed Statement; Fitbit Up 50% in Market Debut

NEW YORK (TheStreet) -- U.S. stocks are soaring on Thursday, as investors are apparently caring less about Greece and more about the Federal Reserve. Investors seem relieved, Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said on CNBC's "Fast Money Halftime" show. Greece is becoming less relevant, too, he added. 

Brown pointed out that growth assets, such as the iShares Russell 2000 ETF (IWM), biotech stocks and the Nasdaq 100, are powering higher. He also said investors should buy Citigroup (C), which is in the midst of a breakout. 

The U.S. dollar dove to a one-month low, as investors took the Fed's statement as a dovish sign. The lower dollar and notion that the Fed will hike rates only one time this year are pushing stocks higher, said Paul Richard, head of FX, rates and credit distribution at UBS North America. 

He argued, however, that the Fed will raise rates "at least twice," this year, especially if the U.S. economic data are good and the Greece situation gets resolved. He expects the Fed to raise rates in October and December. 

The Fed will want to raise rates slowly, added Jon Najarian, co-founder of optionmonster.com and trademonster.com. He believes the Fed's statement has given investors the green light to buy stocks, pointing out that even utility stocks are rallying.  

Pete Najarian, co-founder of optionmonster.com and trademonster.com, said he's still bullish on financial stocks, specifically Goldman Sachs (GS), Morgan Stanley (MS) and JPMorgan Chase (JPM). He also likes health care stocks and said he's not worried about the recent underperformance of transportation stocks. 

Despite the recent slide in that sector, investors have been "aggressive buyers" of transportation stocks on Thursday, Brown said. Perhaps the sector has put in a bottom. 

Airlines have been one industry within the sector that has been less than spectacular this year, and some analysts aren't expecting much upside. Specifically, analysts at Barclays downgraded Southwest Airlines (LUV) to underperform, citing valuation. 

Despite the downgrade, Barclays still has a price target of $39, almost $6 higher than the stock's current price. That shows that there might not be a lot of conviction behind the call, Pete Najarian said. It's time for the airlines to prove themselves to Wall Street, he added. Najarian likes United Continental Holdings  (UAL) and American Airlines  (AAL). 

Jon Najarian said Southwest Airlines' oil hedging program has hurt the stock, because the company did not benefit as much as some of its competitors did when oil prices dropped toward $45 per barrel. 

The conversation turned to Fitbit (FIT), which soared more than 50% from its IPO price of $20, climbing over $30 on its opening trade. 

It's a real company with real earnings, Brown acknowledged, but it is not a stock he wants to own. It's "not my cup of tea," he said, adding that while Fitbit could be a good niche product, he believes Apple's (AAPL) Apple Watch will take significant market share. 

"I love it," Jon Najarian said. Fitbit is already profitable, and the stock should continue trading strong.

Pete Najarian was torn. In the short and intermediate term, Fitbit looks great. The company isn't a one-trick pony and it has an impressive line of products. Its revenue growth is "absolutely staggering," and Fitbit commands a lot of market share, he said. However, Apple will eventually catch up and "eat their lunch," he concluded.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks or fund mentioned.

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