'Fast Money' Recap: Intel's Big Jolt
NEW YORK (
) --
Intel
(INTC) - Get Intel Corporation Report
jolted the market in after-hours trading with a strong earnings report and guidance.
Intel was the bright spot in a so-so day. The
Dow Jones Industrial Average
fell 14.74, or 0.15%, to 9,871.06 in the regular trading session, while the
S&P 500
dropped 3, or 0.28% to 1,073.18. The
Nasdaq
rose 0.75, or 0.04%, to 2,139.89.
Melissa Lee, the moderator of
CNBC
's "Fast Money" TV show said Intel rose 5% in after-hours trading after it handily beat expectations and issued an aggressive guidance for the fourth quarter.
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Guy Adami called it a "fantastic" quarter, adding it will be interesting to see Goldman Sachs' evaluation of the report. He said investors can now take Intel's closing price at $20.50 as the new support level for the stock.
Joe Terranova said investors can use Intel's earnings report to line up the market going forward. He said said the report signifies the PC upgrade cycle is "for real."
Pete Najarian said Intel's earnings was not just a beat, but a resounding "crush." He said the chipmaker's is saying that its entire portfolio is doing well and not just notebooks.
Karen Finerman said Intel's aggressive guidance of revenue growth and gross-margin expansion is "great for the stock."
Lee said Intel's strong report was lifting other tech stocks in after-hours like
Microsoft
(MSFT) - Get Microsoft Corporation Report
,
IBM
(IBM) - Get International Business Machines Corporation Report
and
Nvidia
(NVDA) - Get NVIDIA Corporation Report
.
Jim Goldman,
CNBC
reporter, said Intel is enjoying significant success in China and the emerging markets with its concept of low-cost notebooks. Moreover, he said the chipmaker showed it can increase sales without sacrificing margins.
CFO Stacy Smith told Goldman that the latest report underscores the strengthening PC market and the ability of the company to enjoy "excellent execution from its factory network" and "leadership in its product portfolio."
Lee shifted the discussion to noted bank analyst Meredith Whitney's downgrade of
Goldman Sachs
(GS) - Get Goldman Sachs Group, Inc. Report
to neutral from a buy.
Adami agreed with Whitney's assessment, adding "you've got to listen to her" because she does her homework. He said Goldman would have to deliver a "crushing" earnings report to get to $200.
Najarian downplayed the neutral rating, saying it just represents Whitney's level of valuation of the stock. He said he expects Goldman to deliver a "staggering" number in its earnings report.
Finerman said the earnings of
JPMorgan Chase
(JPM) - Get JPMorgan Chase & Co. Report
will go a long way in providing clarity on provisions for the big money center banks.
Terranova said the fixed income numbers will be phenomenal for Goldman. He said the market could soar if there are additional earnings surprises from the likes of
IBM
(IBM) - Get International Business Machines Corporation Report
and
(GOOG) - Get Alphabet Inc. Class C Report
.
Lee brought in Brad Hintz, an analyst for Sanford Bernstein, for a different view of Goldman. He has a $220 price target for the stock.
Hintz said Goldman's earnings should be strong because it is literally coining money in fixed income. Moreover, he said it continues to do well in trading, investment banking and merchant banking.
He agreed the stock is high but he said Goldman can do a lot of things to push its performance higher.
For the "earnings edge segment," Lee brought in Louis Navellier, CEO of Navellier & Associates. Navellier touted three of his favorite stocks. The first stock was
Amazon
(AMZN) - Get Amazon.com, Inc. Report
, which he likes because it helps consumers avoid sales taxes, has the Kindle and has displayed real sales growth.
He also liked
Apple
(AAPL) - Get Apple Inc. Report
and
Fluor
(FLR) - Get Fluor Corporation Report
for their top-line growth.
Lee brought in David Brandon, CEO of
Domino's Pizza
(DPZ) - Get Domino's Pizza, Inc. Report
who said his company has been performing quite well overseas where sales are up 4%. He said domestic sales are flat but noted that's quite an accomplishment in this environment.
He said his company's expanded menu and strong marketing campaign have helped deliver solid top-line growth.
In a short segment on stocks that doubled this year, Finerman mentioned one of her favorites:
Flowserve
(FLS) - Get Flowserve Corporation Report
. She said the stock, which is around $100, has reached a point where she decided to sell half her stake and keep the rest.
Zachary Karabell appeared briefly to talk about China. He said a common misunderstanding of U.S.-China trade relations is the benefit U.S. companies get from selling their goods to a viable market. "China is one of the sole sources of growth for U.S. companies.
He said so-called "old" companies like
Yum! Brands
(YUM) - Get Yum! Brands, Inc. Report
and
Nike
(NKE) - Get NIKE, Inc. Class B Report
do well in China while "new economy" companies like Google and
Yahoo
(YHOO)
don't because of stiff competition from new-age Chinese companies like
Baidu
(BIDU) - Get Baidu Inc. Report
.
In the final trades, Adami liked Cisco while Finerman stuck with her HMO calls. Najarian liked
Pulte Homes
(PHM) - Get PulteGroup, Inc. Report
. Terranova was left speechless without a call.
-- Written by David Tong in San Francisco
To watch replays of Cramer's video segments, visit the Mad Money page onCNBC
.
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