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Amid Earnings Deluge, These Results Inform Pros

Of the 19 percent of S&P 500 companies reporting earnings so far, 65 percent have beaten expectations, slightly better than the yearly average since 1994, according to Thomson Reuters data.

But the Fast Money pros says statistics like these aren’t really a guidepost for anything.

Joe Terranova tells us that the results that inform his trading thesis are large mega-cap names that have the ability to move the needle.

“For me in financials it’s names like JPMorgan and Goldman Sachs,” he says. And this earnings season, both beat the Street. For Terranova that suggests upside.

And in tech Terranova is focused on IBM and Microsoft . “Those results also spoke to me - they say things aren’t as bad as the bears would have you believe.

Pete Najarian says much the same.

In tech he looks at Intel which said PC market growth rose 3% to $8.7 billion. “I’m not a perma-bull,” he insists, “but when everyone else says the PC market is dead, I look at these numbers and say it’s not quite that bad.”

And for a read on global growth he relies on GE .

Najarian says don’t get confused by GE’s sales or currency risk - what matters is guidance. “And GE forecast double digit growth,” he reminds. That suggests to Najarian that global growth, though not robust, is still strong enough to drive some gains in the market.

Posted by CNBC's Lee Brodie

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Trader disclosure: On July 20, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long EBAY CALLS; Pete Najarian is long MRK; Jon Najarian is long GLD; Jon Najarian is long SBUX; Jon Najarian is long FB; Jon Najarian is long EBAY; Jon Najarian is long KYAK; Jon Najarian is long GLUU; Jon Najarian is long SNDK; Jon Najarian is long BHI; Jon Najarian is long CIGX; Jon Najarian is long GLUU; Jon Najarian is long CME; Jon Najarian is long CBOE; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long USB; Joe Terranova is long GS; Joe Terranova is long JPM; Joe Terranova is long YHOO; Joe Terranova is long SBUX; Joe Terranova is long NKE; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU

For Paul Richards
Nothing to Disclose

For Jeff Kilburg
Nothing to Disclose

For Dan Niles
We have positions both as a firm and individually in GLUU
We have positions both as a firm and individually in AAPL
We have positions both as a firm and individually in MSFT
We have positions both as a firm and individually in FB
We have positions both as a firm and individually in INTC
We have positions both as a firm and individually in PAY
We have positions both as a firm and individually in QCOM
We have positions both as a firm and individually in DIS
We have positions both as a firm and individually in TWX
We have positions both as a firm and individually in LGF

For Barbara Ryan
Company an Investment Banking client of DBSI: JNJ
Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within the past year: JNJ
This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities related services: JNJ

For Bryan Elliott
This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-investment banking securities related services: CMG


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