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'Fast Money' Recap: Focus on Apple

NEW YORK (TheStreet) -- The markets had another quiet session, closing slightly lower after the S&P 500 made another all-time intraday high.

The biggest news on Tuesday was Apple's (AAPL) third-quarter earnings results. On CNBC's "Fast Money" TV show, Guy Adami said he still likes Apple on the long side. The double bottom aids in price support and the June low can act as a stop-loss for traders.

Karen Finerman said she was really focused on Apple's gross margins, which came in at the upper end of the company's range and are estimated to be higher for the next quarter. She added that iPhone sales of 31.2 million seem to be enough to spark a relief rally.

Tim Seymour didn't like the revenue guidance from the company and said it needs new products. However, he acknowledged that margins are starting to improve.

Turning to a chip supplier for Apple, Broadcom (BRCM) had a rough day of trading Tuesday from a harsh downgrade, before reporting worse-than-expected revenue figures after the close.

Adami said that traders could certainly get in this name on the long side. He pointed out the stock has been rangebound for years and that right now the stock is at the bottom of that range.

Peabody Energy (BTU) was the first up for the show's "Top Trades" segment. Seymour likes Peabody, which was up 5% on Tuesday after posting a surprise profit. He pointed to higher productivity, higher coal prices and higher demand as reasons to own the stock.

The next trade was defense stocks including Lockheed Martin, United Technologies (UTX) and Northrop Grumman (NOC). Adami said Lockheed Martin crushed it on earnings, but investors don't have to chase it and can own it on a pullback.

Finally, the bar was so high for Netflix (NFLX) when it reported earnings late Monday that it fell 4% in Tuesday's session even after an earnings beat. Finerman said that she just couldn't be a buyer at such lofty valuations.

AT&T (T) also reported earnings on Tuesday. While the results weren't great, Adami said that if the stock doesn't have a violent selloff on these numbers, it's probably a safe dip to buy, especially with a 5% dividend yield.

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