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Alcoa Results Contain Meaningful Signal for Traders: Najarian

Earnings season kicked off Tuesday with strong results from Alcoa.

Although the aluminum maker's results have not influenced the broad market lately, trader Pete Najarian thinks this time around could be different.

Najarian believes the company said something that no trader should miss.

“The CEO mentioned China and talked positively about China,” says Najarian. That's a meaningful change.

“All anyone hears is how bad China is. But Klaus Kleinfeld is talking about global demand growth at 7%. That’s pretty phenomenal. That tells us something about the global economy that we haven’t heard over the past month or two."

To Najarian, that data point suggests that materials stocks, which have led the market lower recently, may be oversold.

At the very least, Najarian says, “Maybe we’ll see a bottom in names like Walter Energy and other stocks that are trading near their 52-week lows.”

On a related note, Alcoa raised its 2012 global growth forecast for the aerospace market by 3 percent - that too is potentially positive.

Looking at the numbers a little more closely, After the close, Alcoa released quarterly results of 10 cents a share. Although earnings were down from 28 cents a share in the year-earlier period the number beat analysts' expectations in a big way: The consensus estimate called for a loss of four cents a share, according to Thomson Reuters.

* You can find our conversation about Alcoa approximately 4:30 into the video clip above.




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Trader disclosure: On April 10, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Dan Nathan is long AAPL JAN 450 PUTS; Dan Nathan is long BAC MAY 7 PUTS; Dan Nathan is long JPM APR 42 PUTS; Dan Nathan is long XLF APR 15 PUTS; Dan Nathan is long YHOO APR 16/17 CALL SPREAD; Dan Nathan is long IBM APR 200 PUTS; Dan Nathan is long WMT APR 60 PUTS; Dan Nathan is long RIMM JAN 20 CALLS; Karen Finerman is long AAPL; Karen Finerman is short AAPL CALLS; Karen Finerman is long BAC; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM CALLS; Karen Finerman is long BID; Karen Finerman is short SPY; Karen Finerman is short MDY; Karen Finerman is short IWM; Karen Finerman is short SPY; Pete Najarian is long AAPL ; Pete Najarian is long AAPL CALLS; Pete Najarian is long C; Pete Najarian is long JPM; Pete Najarian is long MS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX; Pete Najarian is long COP; Pete Najarian is long PEP

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