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Trades to make as the retail sector pops

The "Fast Money" traders discuss their favorite retail stocks as the SPDR S&P Retail Sector ETF (XRT) popped 2 percent higher on Tuesday following renewed optimism on tax reform.

Trader Brian Kelly said he likes Wal-Mart because the retailer is "addressing the structural shift that's going on" following its investment in e-commerce with its purchase of website Jet.com. Kelly also said he likes distribution facility developer and operator Prologis as a warehouse play.

Trader Guy Adami said he likes Whole Foods because of the stock's performance. Shares of the food retailer jumped nearly 19 percent in the last 30 days.

Trader Tim Seymour said people are spending money on renovations and home improvement as their wealth increases. Therefore he likes Home Depot, Lowes, Sherwin-Williams and Restoration Hardware.

Disclosures:

Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT; Tim's firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM

BK is long Bitcoin, GE, GDX, HLF, TLT, TSLA, WMT.

Dan Nathan is long GE, SPY May put spread, XLV long APR-June put spread, XLI long June put spread, XRT long April-June put spread.

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.