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After Hours Action: Dell

In extended trade shares of Dell slipped as much as 6% after the PC maker reported results that were worse than last year and also fell short of Wall Street expectations.

Dell, which is battling a slump that's caused it to lose its ranking as the world's No. 2 personal computer maker, reported third-quarter earnings of 23 cents a share excluding one-time items. Last year this time, Dell earned 37 cents a share.

Sales for the most recent quarter fell to $12.9 billion, compared with $15.16 billion last year.

“This earnings report is lousy,” muses Guy Adami. “I don’t know why Dell didn’t preannounce with numbers this bad.”

Rivals Hewlett-Packard and Acer have stolen business from Dell as the company grapples with anemic spending on technology by corporations and government agencies. Those large customers make up 80 percent of Dell's business.

Dell says some areas are improving but repeated its earlier prediction that a meaningful improvement in technology spending by big businesses won't come until next year.

Although Dell did not provide a formal outlook, CEO Michael Dell did say, "We are seeing improvement in overall underlying IT demand that is continuing into the fourth quarter."

“I think Michael Dell is steering the company in the right direction,” adds Pete Najarian. “But I think we have to give them time.”

What’s the trade?

I’m a seller, says Gary Kaminsky. There are better places to put your money.

The stock has already run 50%, adds Joe Terranova. If you’re in this name I think it’s time to move to the sidelines.

I think the play is to buy rival Hewlett-Packard on the dip, counsels Guy Adami.

> For complete coverage of Dell earnings click here

> To find out what CNBC’s Jim Goldman has to say about Dell results click here

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AFTER HOURS ACTION: GAP

Shares of Gap traded about 2% lower in the after hours, after the retailer posted earnings inline with expectations.

The clothing chain said it earned 44 cents a share in the third quarter, compared with 35 cents a share in the same period last year.

Sales for the most recent quarter reached $3.59 billion, up from $3.56 billion in the same period last year

The bad economy has been good for the chain's lower-price Old Navy brand, which was retooled last year to resume catering to frugal moms after an ill-fated foray into trendier fashions.

In addition to its namesake stores and the Old Navy chain, Gap owns Banana Republic, Piperlime and Athleta.

What’s the trade?

They needed to beat more than they did, muses Guy Adami, however I still think the company is doing everything right.

> For complete coverage of Gap earnings click here

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IS THIS THE CORRECTION?

Stocks closed lower on Thursday and the dollar finished higher largely due to fears that the market may be badly overextended.

Investors appear to be turning cautious after new data showed mortgage delinquency rates as well as foreclosure rates not only jumped in the third quarter – they reached record highs.

The same report also said the trend that will likely continue into next year.

The forecast triggered concerns that the sharp rally in riskier assets – such as stocks -- may have been overdone.

What’s the trade?

The S&P closed below 1100, says Joe Terranova. That’s critical. I’d cut my position, The next line in the sand is 1070.

The action in the S&P on Friday will also be my market ‘tell,” adds Guy Adami. If we slide about 15 points I’ll get concerned.

I don’t think Thursday’s pullback was that major, says Gary Kaminsky. I still think portfolio managers will continue chasing performance through the end of the year.

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GOLD HITS 5TH STRAIGHT RECORD HIGH

US. gold futures ended a shade higher on Thursday, rebounding from losses early in the session as strong demand by investment funds more than offset a higher dollar and risk-aversion.

During an interview on CNBC, Jim Rickards, senior managing director of market intelligence at Omnis, said he’s been bullish on gold for a while and said he sees gold rising to $2,000 an ounce “without breaking a sweat” in 2010.

Should you bet on gold here?

I’m cautious gold, says Joe Terranova. I think we could see a correction in the near-term.

Gold seems to be moving outside fundamentals that are driving the rest of the commodity space, explains Gary Kaminsky.

But the people who are buying at these levels are the same people who sold it at $700, adds Guy Adami. What makes everyone so certain they’re right this time around?

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BULL MARKET OR BS?

With Wall Street’s favorite fear gauge, the Vix, spiking higher on Thursday investors are preparing for volatility to return to this market.

Combined with concerns that a correction is at hand, how should you game this market.

Find out why Jim Iurio of TJM says the best way to play is long gold as well as long defensive names such as Walmart, McDonald’s and more.

Get all the details. Watch the video now.




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Trader disclosure: On November 19th, 2009, 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), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (BP) Calls; Najarian Owns (DELL) Dec. Call, Is Short (DELL) Nov. Calls; Najarian Owns (INTC), Is Short (INTC) Calls; Najarian Owns (MCD) Call Spreads; Najarian Owns (TXN), Is Short (TXN) Calls; Najarian Owns (UUP) Calls; Najarian Owns (YHOO), (YHOO) Puts; Najarian Owns (BG) Calls; Najarian Owns (KG) Calls; Terranova Owns (POT), (GOOG), (AAPL), (SU); Terranova Owns (UNG) April 2010 Calls; Terranova Owns (FDX) Dec. 2010 Calls; Terranova Is Short Crude Oil January 2010; Terranova Owns Crude Oil December 2010

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 (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBC)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)

For Jim Iuorio
Iuorio Owns (UN), (MCD), (FXE), (FXC),( DELL)
Iuorio Owns (GLD), (GLD) Puts, Is Short (GLD) Calls
Iuorio Owns (ABX) Calls
Iuorio Owns (NEM) Calls
Iuorio Owns (SLV), (SLV) Calls, Is Short (SLV) Calls
Iuorio Owns (GIS), (GIS) Calls
Iuorio Owns (WMT) Calls
Iuorio Owns Put Spreads In S&P Futures, Is Short Call Spread In S&P Futures




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