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Will Apple Results Keep Market Rally In Tact?

After hours investors were sifting through results from Apple , Yahoo! and a string of other companies as they attempted to determine if earnings can keep the broad market rally going.

Companies' quarterly reports have largely exceeded expectations so far this earnings season, fostering a renewed sense of optimism in the market and helping to drive the Dow back into the black for the year.

AFTER HOURS ACTION: APPLE

Apple lifted investor optimism after the tech titan reported a stronger-than-expected profit and said sales of its iPhones, iPods and iMacs are all increasing.“ This is Apple’s best non-holiday quarter in its history,” explains CNBC’s Jim Goldman. “And half the company’s Macs were sold to first time Apple buyers.”

Apple also said it earned $1.35 a share in its fiscal third quarter; analysts who follow Apple expected the company to turn in a gain of $1.17.

This is how they perform in this kind of economy? Incredible, says Pete Najarian.

In post-market trade, shares popped nearly 4% on the bullish news.

> Click here for complete coverage of Apple quarterly earnings

AFTER HOURS ACTION: YAHOO

Shares of Yahoo! slipped as much as 4% in extended trade after the Internet search company projected a drop in income from operations for the current quarter.

However, Carol Bartz is very upbeat on the call, explains Jon Najarian. Bartz says Yahoo! is a "kingmaker that drives traffic to people that do business with them."

I’m bullish on Yahoo! adds brother Pete Najarian, the pullback may give investors an opportunity.

> Click here for complete coverage of Yahoo! quarterly earnings

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GLOBAL GROWTH NAMES BOOST MARKET

Global growth names boosted the market after Caterpillar posted stronger-than-expected quarterly earnings on Tuesday and raised its full-year outlook, citing what it said were growing signs of stability in the world's credit markets and economies.

The company, the world's largest maker of construction and mining equipment and a closely watched component of the Dow Jones industrial average, said fiscal stimulus programs, especially in China, were beginning to pay off and commodity prices were holding in a range that was positive for investment.

The upbeat outlook, which Caterpillar's chief executive said "set the foundation for an eventual recovery," sent the company's shares surging.

What’s the trade?

I’d stick with this name, counsels Tim Seymour. I like hearing that they see some recovery in the US side of the business.

My concern is that the Caterpillar move was a short squeeze, adds Steve Grasso. If I was long Caterpillar I’d take some profits.

The theme I took away from Caterpillar earnings is strength in mining and infrastructure, says Pete Najarian. And if that’s the case then Bucyrus and JoyGlobal should explode.

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CAN MACK KEEP MOJO GOING?

Morgan Stanley reports earnings for the fiscal second quarter on Wednesday with commercial real estate losses widely expected to weigh heavily on the firm.

Commercial real estate exposure has been one of the stark contrasts between Morgan Stanley and its largest competitor, Goldman Sachs.

What’s the trade?

I think Morgan Stanley has an incredible capital markets division, muses Tim Seymour, and I think they’ll be right there with Goldman over the next 20 years It should be a very profitable company. But for the time being, keep in mind that at $29 the stock keeps running into resistance.

Nobody needs to jump into this stock with both feet. However, I’d recommend averaging into Morgan Stanley on pullbacks, says Pete Najarian, for the long-term.




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Trader disclosure: On July 21st, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (APPL), (BAC), (DRYS), (EEM), (FCX), (FXI), (INDY), (SBUX), (UNG); Grasso Owns (OXY), (WMT), (XLF), (CSCO), (V); Grasso's Clients Own (UNH), (V), (WMT), (USB), (OXY); Najarian Owns (AAPL) Call Spread & Put Spread; Najarian Owns (INTC) Call Spread; Najarian Owns (ISRG) & (ISRG) Call Spread; Najarian Owns (JNJ) Call Spread; Najarian Owns (MS) & (MS) Call Spread; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (PALM) Call Spread; Najarian Owns (V) & (V) Short Calls; Najarian Owns (YHOO) Call Spread; Finerman Owns (RIG); Finerman's Firm Owns (MSFT), (NOK), (PBR), (RIG), (TGT), (TBT), (WMT); Finerman's Firm And Finerman Own (BAC) Preferred Shares; Finerman's Firm And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Finerman's Firm Is Short (IJR), (IYR), (IWM), (MDY), (SPY), (USO)

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