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Texas Instruments, Amazon and Other Market Movers

Shares of Texas Instruments fell as much as 6% in extended trade following quarterly results on Monday.

The move may seem counter-intuitive; second-quarter income and revenue jumped as demand continued to recover. Also the company predicted even better results in the new quarter.

"Orders were strong in the quarter, backlog increased and we expect to grow revenue again in the third quarter," the company said in a press release Monday.

What gives?

The desk says as good as it was - the results were already priced in. And looking ahead, Texas Instruments guided in line with analyst estimates.

Also, I think the sell-off had everything to do with Intel, muses Guy Adami. Investors expected to hear results more along the lines of what Intel said and they were blockbuster. In other words Texas Instruments performed well, just not well enough.

By the number net income nearly tripled to $769 million, or 62 cents per share, for the quarter that ended June 30. That matched the average forecast of analysts polled by Thomson Reuters.

In the same period last year, TI earned $260 million, or 20 cents per share. Revenue rose 42 percent to $3.5 billion, matching the average analyst forecast.

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AFTER HOURS ACTION: AMAZON

Shares of Amazon gained in the after hours after the firm said that the recent price cut to its Kindle electronic reader has spurred sales of both the device and e-books.

Last month Amazon cut the price of the Kindle to $189 from $259 to fend off competition from Apple's iPad and from Barnes & Noble's Nook device.

Perhaps most noteworthy Amazon said e-books were outselling hardcover books. Specifically, it has sold 143 e-books on its Kindle for every 100 hardcover books sold on its website.

The timing of the announcement drew attention from the Fast Money desk with the traders noting that Amazon reports earnings later this week.

What should you make of it?


I was stumped by Amazon's decision to release this info now, says Citi's Mark Mahaney. I would have expected them to put out this kind of data during the earnings report. However, I do find the results impressive. It seems they've hit something big with the Kindle and e-books. It's notable that the move to digital media is positive for Amazon's margins going forward, he adds.

If the adoption of e-books is happening so quickly I can’t help but wonder what it means for the brick and mortar booksellers, says Karen Finerman.

The questions is how will Amazon reinvent itself, muses Anthony Scaramucci. The emergence of e-books isn’t a great thing for Amazon either.

I’m a buyer of Amazon around $110 - $115, says Joe Terranova.

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S&P 500 BIG RESISTANCE AT 1100

Stocks ended higher on Monday, with gains largely triggered by optimism over forthcoming technology earnings and in the wake of strong orders from Boeing .

Although fundamentals have at leaset some positive momentum, the technicals are a different story. Lately it seems every time the S&P has made a run at 1100 it’s met serious resistance at that level.

What must you know?

The technicals in the S&P are very bearish, says Guy Adami. And they’re bearish in the Nasdaq and Russell as well as Japan’s index. My bias is that we’re going lower.

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TOPPING THE TAPE: GOLDMAN HIGHER BEFORE EARNINGS

Goldman Sachs closed flat ahead of its earnings release on Tuesday with the stock losing its momentum following its settlement with the SEC.

What’s the trade?

I expect Goldman to put up a strong number and it could put a downside floor on the market in the wake of IBM weakness, says Anthony Scaramucci.

Long-term I’m concerned that CEO Lloyd Blankfein may leave the company, speculates Guy Adami. If he goes I think we see a larger management change and that leads to a different company.

If Goldman misses and the stock goes down, I’m a buyer on any dip, says Joe Terranova.

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MARKET BUZZKILL: FINANCIALS

Financials were the big market buzz kill on Monday after analysts slashed their price targets on BofA and Goldman removed the firm from its Conviction Buy List.

What’s the trade?

I didn’t buy more stock on the dip, but it’s getting attractive, says Karen Finerman. frankly, I’m thinking about adding to my position in BofA.





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Trader disclosure: On July 19, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (C), (MRVL), (EMC), (ADI), (ADBE), (SWN), (ABT), (CVS); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Scaramucci owns (AAPL), (BAC), (DIS), (GS); Kelly owns (BP) puts; Kelly is short (GS); Pete Najarian owns (AAPL) call spreads; Finerman’s firm owns (BAC); Finerman owns (BAC) & (BAC) preferred; Finerman owns (BP) calls; Finerman’s firm owns (IBM); Finerman’s firm owns (JPM); Finerman owns (JPM); Finerman owns (RIG)

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Anthony Scaramucci
SkyBridge Capital owns (AAPL)
SkyBridge Capital owns (BAC)
SkyBridge Capital owns (DIS)
SkyBridge Capital owns (GS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (AUY)
Accounts managed by Kanundrum Capital own (GFI)
Accounts managed by Kanundrum Capital own (C)
Accounts managed by Kanundrum Capital own (GME)
Accounts managed by Kanundrum Capital own (BIG)
Accounts managed by Kanundrum Capital own (NWL)
Accounts managed by Kanundrum Capital own Japanese Yen
Accounts managed by Kanundrum Capital are short (BA)
Accounts managed by Kanundrum Capital are short (USO)
Accounts managed by Kanundrum Capital are short (GLD)
Accounts managed by Kanundrum Capital are short Aussie Dollar
Accounts managed by Kanundrum Capital are short (AMZN)
Accounts managed by Kanundrum Capital are short (KMX)
Accounts managed by Kanundrum Capital are short (FXI)
Accounts managed by Kanundrum Capital are short (EWO)
Accounts managed by Kanundrum Capital are short (EWI)
Accounts managed by Kanundrum Capital are short (JOE)
Accounts managed by Kanundrum Capital are short (RSX)
Accounts managed by Kanundrum Capital are short (SLX)
Accounts managed by Kanundrum Capital are short (CSX)
Accounts managed by Kanundrum Capital are short (FCX)

Dennis Gartman
Funds managed by Gartman are short the Euro
Funds managed by Gartman own the Canadian Dollar
Funds managed by Gartman own Gold
Funds managed by Gartman own (AAPL)

Mark Mahaney
Employees Of Citi Own (GOOG), (YHOO)
Citigroup Global Markets Or Affiliates Own 1% Or More Of (YHOO), (EBAY), (NFLX), (AKAM) Citigroup Global markets Or Affiliates Has Acted As Manager Or Co-Manager Of An Offering Of (PCLN) In Past 12 Months Citigroup Global Marekts Or Affiliates Has Received Investment Banking Compensation For Services Provided In Past 12 Months From (PCLN) Citigorup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (YHOO), (GOOG), (AMZN), (EBAY), (EXPE), (WBMD) In Past 12 Months
(PCLN) Is Or In Past 12 Months Was An Investment Banking Client Of Citigroup Global Markets (YHOO), (GOOG), (AMZN), (EBAY), (EXPE), (WBMD) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking Non-Securities Related Services) Citigroup Global Markets Is A Market Maker In (YHOO), (GOOG), (AMZN), (EBAY), (NFLX), (AKAM), (PCLN), (EXPE), OpenTable, VistaPrint, (NILE), (WBMD) Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (YHOO), (GOOG), (AMZN), (EBAY) Citigroup Global Markets Or Affiliates Owns 5% Or More Of (YHOO)

For Victor Sperandeo
Vic Sperandeo Owns Gold

For Mike Khouw
Cantor Fitzgerald makes a market in (DE)
Cantor Fitzgerald makes a market in (JOYG)

For Carter Worth
Oppenheimer & Co. Is A Market Maker In (AAPL)


CNBC.com with wires

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