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After Hours Action: Intel, CSX

The traders were closely watching the action in Intel and CSX after these two bellwethers released earnings and wowed the Street.

AFTER HOURS ACTION: INTEL

You could almost hear the applause on Wall Street on Tuesday after Intel -- the first major tech company to release third-quarter results - posted stronger-than-expected third-quarter results on Tuesday and forecast sequential sales growth of about 2.7 percent and a higher gross margin in the fourth quarter.

“Looking forward, we continue to see healthy worldwide demand for computing products of all types and are particularly excited about our next-generation processor, codenamed Sandy Bridge," said Intel Chief Executive Officer Paul Otellini in a prepared statement.

Taking a closer look at the number Intel forecast revenue of $11.0 billion to $11.8 billion in the final three months of 2010, in line with analysts' expectations of $11.32 billion, according to Thomson Reuters.

The world's biggest semiconductor company reported a profit of 52 cents a share in the third quarter, up from 33 cents a share last year.

Sales rose to $11.1 billion, against $9.389 billion a year earlier.

Equity analysts who follow Intel saw the company reporting a profit of 50 cents a share in the quarter, according to a consensus estimate from Thomson Reuters. Sales were seen at $10.991 billion.

What’s the trade?

If you're a trader, my inclination would be to take profits on Wednesday, says Guy Adami. Because we've had a big run up in the stock, I think investors will be able to buy it cheaper in the days ahead.

If you're a long term investor and believe in risk-on, Intel looks attractive, adds Tim Seymour. At 10.5 times I'm not worried about owning it.

I agree with that, says Karen Finerman.

I look at Intel as a dividend yield play, adds Patty Edwards. It's safe. If you're looking for something more exciting I'd look elsewhere.

I think the results bode well for the stock and probably for the entire sector, adds Brian Kelly. But if you want to play the space I'd look at Qualcomm , because they're involved in both the BlackBerry and iPhone.


> Click here for even more coverage of Intel earnings

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AFTER HOURS ACTION: CSX

Shares of CSX spiked as much as 3% in extended trade after the railroad giant beat the Street citing rising freight volumes. “As the economy continued to improve, CSX saw volume growth in nearly all markets," said the company's CEO Michael Ward.

Taking a closer look at the numbers, CSX reported third quarter earnings of $1.08 a share. CSX earned 74 cents a share during the same period a year earlier.

Sales for the most recent quarter rose to $2.7 billion, up from $2.29 billion last year.

The company was seen earning $1.04 a share on revenue of $2.66 billion, according to a consensus estimate from Thomson Reuters.

What's the takeaway?

I'm impressed by the increase in rail car loadings, says Brian Kelly.

It looks to me like the stock wants to make a move higher, adds Guy Adami.

> Click here for even more coverage of CSX earnings




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Trader disclosure: On October 12th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman’s Firm owns (ARO); Finerman owns (GOOG); Finerman’s Firm owns (IBM); Finerman and Finerman’s Firm own (JPM); Finerman’s Firm own (MCD); Finerman’s Firm owns (RIG); Fienrman’s Firm owns (WMT); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Finerman’s firm owns Russell 2000 puts; Seymour owns (AAPL), (GE), (GOOG), (INTC), (MON), (MSFT), (MOS), (POT)

For Brian Kelly
Accounts managed by Kanundrum Capital own (ANDE)
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Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
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Accounts managed by Kanundrum Capital own (AGM)
Accounts managed by Kanundrum Capital own (MSFT)
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Accounts managed by Kanundrum Capital own (GLGC)
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Accounts managed by Kanundrum Capital are short (HYG)
Accounts managed by Kanundrum Capital are short (SLF)
Accounts managed by Kanundrum Capital are short U.K. Pound
Accounts managed by Kanundrum Capital are short Mexican Peso

For Patty Edwards
Edwards Owns (GLD) For Clients
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Edwards Owns (QQQQ) For Clients
Edwards Owns (SH) For Clients
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Edwards Owns (JPM) For Clients

For Craig Moffett
Bernstein own more than 1% of outstanding common stock of (CMCSA), (CVC), (TWC), (S), (DTV)
Bernstein makes a market in (CMCSA), (DISH), (DTV)
Bernstein’s non-investment banking service clients in the last 12 months include (TWC), (T), (VZ) (S)
Bernstein receive compensation for non-investment banking services from (CVC), (TWC), (T), (VZ)
Bernstein intends to seek compensation for investment banking services in the next 3 months from (CMCSA), (CVC), (TWC), (T), (VZ), (S), (PCS), (DISH), (DTV), (LEAP)

For Zachary Karabell
Karabell Owns (IBM)
River Twice Capital Owns (IBM)
Karabell Owns (NKE)
Karabell Owns (CSCO)
River Twice Capital Owns (CSCO)
River Twice Capital Owns (EXPE)

For Derik Debruin
UBS owned 1% or more of (ILMN) as of last month`s end
A member of DeBruin’s team, or one of their household members owns shares of (TMO)
(MTD) is, or within the past 12 months has been, an investment banking client of UBS
(MTD) is, or within the past 12 months has been, a non-investment banking securities-related client of UBS
Within the past 12 months, UBS has received compensation from (MTD)

For Brian Stutland
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For Kurt Hallead
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