'Fast Money' Recap: Intel's Big Jolt

The trading panel said the market should get a big lift from Intel's strong earnings.

Author:: David Tong
Publish date:: Oct 13, 2009 9:04 PM EDT

NEW YORK (

TheStreet

) --

Intel

(INTC) - Get 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.

For a breakout of some stocks from a recent "Fast Money" TV show,check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw onTV

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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 Report

IBM

(IBM) - Get Report

and

Nvidia

(NVDA) - Get 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 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 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 Report

and

Google

(GOOG) - Get 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 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 Report

and

Fluor

(FLR) - Get Report

for their top-line growth.

Lee brought in David Brandon, CEO of

Domino's Pizza

(DPZ) - Get 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 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 Report

and

Nike

(NKE) - Get 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 Report