NEW YORK ( TheStreet) -- The markets recovered from an early slump and closed with a rally Tuesday. The Dow Jones Industrial Average jumped 75.53, or 0.74%, to 10,229.96, while the S&P 500 gained 12.23, or 1.14%, to 1,083.48. The Nasdaq was up 24.26, or 1.10%, to 2,222.49. In afterhours trading, Apple ( AAPL)reported fiscal third-quarter earnings that blew past analyst estimates. The stock was more than 5% in afterhours. 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 on TV
Pete Najarian said on CNBC's "Fast Money" TV show that Apple posted strong iPad and iMac sales, which he noted were significant because it showed that the two product lines weren't cannibalizing each other. He also said the iPhone sales were strong as expected, as the company put another $4 billion in its cash reserves. Melissa Lee, the moderator of the show, said the gross margins were impressive at 39.1% vs. the consensus estimate of 38.9%. Karen Finerman said Apple's earnings report was "truly an impressive display." She said the stock is extraordinary because Apple is a premier name that still has a lot of value, despite its size. Joe Terranova said Apple once again demonstrated it can grow organically. More importantly, he said the earnings were an important tell on consumer behavorial trends. He mentioned two derivative plays off the earnings: Best Buy ( BBY) and Broadcom ( BRCM). Najarian noted Altera ( ALTR) was also impressive as it beat estimates in its earnings report. Terranova sees Apple heading north of $300 because money managers will feel compelled to own it, going into the fourth quarter. Lee noted that Yahoo ( YHOO) was down 5% in afterhours after it came in a little short in display ad and search revenues. Najarian was disappointed in Yahoo, saying it hadn't shown any signs of growth. Grasso said he was on buy side on Apple and Google ( GOOG) and the sell side on Yahoo. Brian Kelly acknowledged Apple's impressive earnings, but cautioned the panel about extrapolating the earnings to make a general statement about retail. He said consumers are "buying what they need" and "not necessarily buying what they want." He said a lot of retailers, including Gap ( GPS) are cutting prices to attract sales. Grasso agreed, saying a lot of the retail space is still under pressure.