Some investors say this dip is a buying opportunity and list their favorite stocks

Published Fri, Nov 26 20218:37 AM ESTUpdated Fri, Nov 26 20219:52 AM EST

Stocks are under pressure Friday as a new heavily-mutated Covid variant raises concern about a slowdown in the economic recovery, but some investors said the pullback is a buying opportunity and shared which names they are picking up. The variant known as B.1.1.529 is linked to a surge in cases in South Africa and has also been found in Botswana, Hong Kong and Israel. Little is known about the variant, but scientists have detected a large number of mutations in the variant, which could have implications for vaccine efficacy and transmissibility. The World Health Organization is holding a special meeting Friday to discuss the new Covid variant. A number of European and Asian nations have suspended flights from southern Africa. Financial markets around the world have reacted to the news, with a sea of red in European and Asian equities, oil, U.S. Treasuries and U.S. stock futures. Kevin Simpson, portfolio manager at Capital Wealth Planning, said he is buying more of his favorite stocks in this pullback. "This is an opportunity here for investors to take a look at really high-quality names. I would not be afraid to buy the dips here," Simpson said on CNBC's " Squawk Box ." With oil and financial names hit hard in this downturn, Simpson said he is adding to his positions in Chevron , JPMorgan and Goldman Sachs . He said he will also be looking at big retailers like Amazon, Target , Walmart, Lowe's and Home Depot on Black Friday, as consumer spending looks strong this holiday shopping season. "Everyone is consuming," Simpson said. "It's telling me that what happens with Covid, what happens with the economy is not something that's going to put the consumer at peril. If anything, they're putting the economy on their back. So I want to be buyers of these big names." However, the portfolio manager cautioned investors about "going all in," saying "it's a gradual situation" and "we're getting used to this Covid mutation." Barry Knapp, managing partner and director of research at Ironsides Macroeconomics, similarly said he is eyeing sectors hit hardest Friday. "I would be inclined to try and take advantage of what is probably an overreaction," Knapp said. "I'd be inclined to for sure buy energy this morning and likely buy some financials as well." Ajene Oden, an investment strategist at BNY Mellon Investor Solutions, highlighted that some of Friday's market action could be explained by the holiday. With a shortened trading session and many professionals taking the day off, lower liquidity could be causing some of the pullback. "Ultimately, this is a buying opportunity," Oden said. Oden advised investors to pick up large-cap quality growth names that "have the potential to navigate through potential inflationary pressures and have the buying power and staying power to move throughout situations such as this."

Traders work on the floor of the New York Stock Exchange in New York.

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