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Amid Market Pullback, These Stocks are Buys: Pros

On Monday investors ran for the exits with fears about the global economy again sending the market into a tailspin.

This time weakness was triggered by chatter that Greece may be looking to leave the EU somewhat soon.

The conjecture was sparked by Alexander Dobrindt, a leading German conservative who was quoted on Monday saying Greece should start paying half of its pensions and state salaries in drachmas as part of a gradual exit from the euro zone.

Also, the yield on the Spanish 10-year bond was last at 7.5 percent, well over what analysts consider a sustainable level

Are market headwinds getting just too strong? Not for the pros.

Trader Steve Grasso, director of institutional sales trading at Stuart Frankel, says on the floor of the NYSE where he works, pros are buying the dip. “1335 is a key technical level – and we bounced at 1337,” he explains.

Grasso takes it to mean the S&P isn't embarking on a sell-off but rather remains range bound and is currently at the lower end of its range. If you subscribe to that thesis, the strategy remains buy the dips and sell the rips.

Of course that begs the question – what should you buy?

Trader Stephanie Link, director of research at TheStreet, says, "I liked what I heard from Schlumberger . On the pullback I’m a buyer. And also I added to my position in JPMorgan . Tangible book is where Jamie Dimon is buying and its where I ‘m buying too."

Elsewhere in the market, Link suggests looking at Boeing. “If it gets to $70 ahead of earnings I’m a buyer. Eaton (results) suggest aerospace isn’t falling apart."

Trader Josh Brown, author of The Reformed Broker blog, suggests looking at McDonald’s . He thinks $85 will be support. And he likes Starbucks if it sells off to about $45 after earnings later in the week.


Posted by CNBC's Lee Brodie

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Trader disclosure: On July 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Stephanie Link is long AAPL; Stephanie Link is long JPM; Stephanie Link is long GE; Stephanie Link is long NKE; Stephanie Link is long ETN; Stephanie Link is long BRCM; Stephanie Link is long BA; Stephanie Link is long MCD; Stephanie Link is long WY; Stephanie Link is long EBAY; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU; Josh Brown is long JPM; Josh Brown is long WFC; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long SBUX; Josh Brown is long MSFT; Josh Brown is long F; Jon Najarian is long AAPL CALL SPREADS; Jon Najarian is long BHI CALL SPREADS; Jon Najarian is long HAL CALL SPREADS; Jon Najarian is long NXY CALL SPREADS; Jon Najarian is long GOOG CALL SPREADS; Jon Najarian is long INTC CALL SPREADS; Jon Najarian is long JPM CALL SPREADS; Jon Najarian is long CME; Jon Najarian is long CBOE; Jon Najarian is long CIGX; Jon Najarian is long GLUU; Jon Najarian is long GE

For Michael James
Wedbush Securities is long JNPR
Wedbush Securities owns Dec puts on NFLX

For Rachael Rothman
SFG is a market maker in the securities of MCD

For Sam Poser
Sterne, Agee & Leach, Inc. makes a market in the following subject company: DECK

For Dan Berenbaum
The Primary Analyst also certifies that there has not been, is not, and will not be direct or indirect compensation from MKM Partners LLC or the subject company(ies) related to the specific recommendations or views in this report.
The Primary Analyst (including his/her household) does not have a financial interest in the securities of the subject company(ies), nor does MKM Partners LLC habitually deal as principal in transactions in the securities referred to herein (or other instruments related thereto), including positions and transactions contrary to any recommendations contained herein held by the research analyst/household. The Firm has not engaged in transactions with issuers identified in the report. MKM Partners LLC does not make a market in the subject company(ies). The subject company(ies) is(are) not currently, nor for the past 12 months was(were), a client(s) of the Firm. The research analyst does not serve as an officer, director or advisory board member of the company(ies) and receives no compensation from it(them).


CNBC.com with wires.

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