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It’s a ‘stock-picking market’: Pro

Monday, 22 Jul 2013 | 1:19 PM ET
It's a 'stock-picking market': Pro
Monday, 22 Jul 2013 | 12:00 PM ET
Quarterly earnings results show it's crucial to choose stocks carefully right now, Rosecliff Capital's Mike Murphy says.

Corporate earnings season shows that broad sector plays aren't the best bet, Rosecliff Capital's Mike Murphy said Monday.

Financials, he noted, were attractive, gauging from quarterly earnings results. "No one really had any missteps here," Murphy added.

On CNBC's "Fast Money," he also pointed out that a few big names had fallen short of Wall Street expectations.

"This is 100 percent a stock-picking market. You can't just throw a bunch of money in any one sector and just let it go for you," he said.

Joe Terranova of Virtus Investment Partners said that his top sector pick remained financials.

"You're seeing a little bit of a transition from the mortgage banking revenue side of the investments into the capital markets," he said, adding that he remained invested in Goldman Sachs, Morgan Stanley and American Express.

Insurers stand to do well, too, Terranova said, adding that he was long Travelers.

"Financials are going to lead us here," he said.

TheStreet CIO Stephanie Link looked positively at industrials.

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"I was actually pretty impressed last week on the margin story, if you look at Honeywell and you look at GE," she said.

Other companies such as CSX and Union Pacific sounded optimistic going forward, Link added, "And the guidance hasn't been as, really, gloom-and-doom as we were expecting."

Guidance from Honeywell, she noted, showed that the company believes China has turned.

"I think that the industrials are pricing in that China is going to have this hard landing, so I think the valuations are still pretty attractive in that particular segment," she said.

(Read more: S&P heading toward 1,800: Strategist)

OptionMonster's Jon Najarian pointed out an 8 percent run-up in the utilities exchange-traded fundXLU.

But he also noted that another area was stalling.

"You don't have the housing sector coming back big yet," he added.

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

Trader disclosure: On July 22, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long TRV; Joe Terranova is long AXP; Joe Terranova is long OXY; Joe Terranova is long EMC; Joe Terranova is long MS; Joe Terranova is long GS; Joe Terranova is long CRUDE OIL FUTURES; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long FB; Stephanie Link is long EBAY; Stephanie Link is long GS; Mike Murphy is long BAC; Mike Murphy is long C; Mike Murphy is long FB; Mike Murphy is long LEN; Jon Najarian is long AAPL; Jon Najarian is long GLD ; Jon Najarian is long ABX; Jon Najarian is long NUGT; Jon Najarian is long BBRY; Jon Najarian is long PBR; Jon Najarian is long ITUB ; Jon Najarian is long WLL; Jon Najarian is long ZNGA.

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FINANCIALS
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GS
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MS
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AXP
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TRV
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HON
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GE
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CSX
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UNP
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SPDR UTL SEL
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