NEW YORK ( TheStreet) — Stocks are taking a beating on Tuesday, with the S&P 500 ETF (SPY) down almost 2%. The strong U.S. dollar isn’t helping, Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said on CNBC’s "Fast Money Halftime" show.
Stocks have been trading poorly, especially since last Thursday, when the Federal Reserve announced it wasn’t raising interest rates. Investors who are looking for stocks to retest the August lows should realize those levels are just 3.5% away from current prices, Brown said.
It seems like those lows will be tested, said Pete Najarian, co-founder of optionmonster.com and trademonster.com. It’s also not good see oil and commodities moving lower, along with the stocks of companies such as Freeport-McMoRan (FCX – Get Report), Rio Tinto (RIO) and Petrobras (PBR – Get Report), the last of which TheStreet’s Jim Cramer expressed concerned about on Monday.
The S&P 500 could find support between 1,901 and 1,911, added Joseph Terranova, senior managing partner at Virtus Investment Partners. Crude oil could also find support near $44 per barrel.
One thing’s for certain, according to Stephanie Link: The market will be volatile. Link, a portfolio manager at TIAA-CREF, said investors should look through the volatility and focus on the long term. September and October tend to be rough months for the market anyway, but one bright spot could be earnings.
Darden Restaurants (DRI – Get Report), General Mills (GIS) and AutoZone (AZO) all reported impressive results, even with a strong U.S. dollar, Link said.
Ben Willis, a senior floor broker at Princeton Securities Group, pointed out that foreign stocks are weighing on U.S. equities on Tuesday. Long-term investors should get their "shopping lists" ready and prepare to buy stocks on a further decline. The Federal Reserve’s latest rate decision is driving uncertainty in the market. The selloff in biotech is also hurting investor sentiment.
Dr. Mark Schoenebaum, head of health care research at Evercore ISI, acknowledged that it’s been a tough week for biotech stocks. Even though it’s only Tuesday, the iShares Biotech ETF (IBB) is down 7.2% this week. Over the past few years, however, biotech seems to have one big selloff every year. With biotech down 16% from mid-July, Schoenebaum said that if history repeats itself, then biotech could be setting up for a nice recovery in the coming months. But the industry is likely to remain under fire from politicians, most recently, from Democratic presidential candidate Hillary Clinton.
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