NEW YORK (TheStreet) -- After selling off midday, the S&P 500 closed higher on Tuesday to start the holiday-shortened trading week.
International Business Machine (IBM) closed lower after reporting a miss on revenue while beating earnings per share estimates. On CNBC's "Fast Money" TV show, Guy Adami, managing director of stockmonster.com, said the EPS beat came largely from a tax break.
He added that it was not a good quarter and the company is unlikely to turn around its slumping business model any time soon because it's such a big company.
Tim Seymour, managing partner of Triogem Asset Management, said IBM is also lagging growth from emerging markets. He suggested not short-selling the stock or buying it at current levels.
Steve Grasso, director of institutional sales at Stuart Frankel & Company, said it was IBM's seventh consecutive quarterly decline in revenue. He added the stock seems set up for further declines.
Karen Finerman, president of Metropolitan Capital Advisors, said the valuation for IBM is getting very cheap but she is not yet a buyer.
Brian Marshall, senior managing director at ISI Group, was one of two analysts to have a sell rating on IBM. He said the company's long-term EPS targets are too high. He added that revenue declined 5% year over year and most of IBM's markets decreased in sales for the quarter. Most notably, its China sales fell 23% from last year.
Seymour said Google (GOOG) has been doing really well but is starting to seem overvalued at current levels.
Finerman agreed that GOOG was getting stretched on a valuation basis. She suggested selling some upside calls against a long position or trimming some of the position ahead of earnings.