×

What traders are buying on a down day

With the U.S. stock market slumping more than 1 percent on Friday, some traders are looking for sunshine in building materials and consumer stocks.

The plunge was driven by a drop in European equities and revived concerns about Greece. Michael Block of Rhino Trading Partners said the selloff was "just a little correction" that represents a trading and buying opportunity.

"Everyone's freaking out about the DAX's down two days in a row, heck it was up 23 percent year to date. The thing keeps moving," Block said on CNBC's "Halftime Report." "Nothing's really changed here. We've got some big data coming out next week. … The data has been fine at worst."

The Dow was down by 300 points Friday afternoon. However, some traders said there were still a few bright spots in the market.

Rob Sechan, an institutional consultant at UBS, said the recent stabilization in oil prices, even at low absolute values, may boost consumer stocks.

Read MoreOil field services stocks due for comeback: Analyst

"Low energy prices, broadly lower rates, although trending in the other direction right now, is broadly supportive for the consumer sector," Sechan said on "Halftime Report."

On the other hand, Bill Pulte, CEO of Pulte Capital Partners, which focuses on building products, said he sees a strong housing market ahead.

"We certainly had a slower Q4 and a certainly slower Q1 than we would have thought, but if you ignore the noise, the housing market is still strong [and] it continues to grow," Pulte said on "Halftime Report."

Read MoreGet used to volatility:Strategist

Pulte pointed to increased merger and acquisition activity among building product companies, and said that trend could expand to the housing market in the coming months.

In a report Thursday, March housing starts came in much weaker than expected, but Pulte said the slower growth is "actually allowing people to underwrite transactions."

"I think the buildings products stocks are still very attractive," Pulte said. In particular, he sees Fortune Brands, Masco, Builders FirstSource as stocks with upside potential.

The aforementioned stocks have gained 11 percent, 16 percent and 52 percent, respectively, over the last year.

DISCLOSURE: Bill Pulte doesn't have any financial interest in the companies he mentioned.