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Clean Up With Clorox?

With Wall Street facing a subprime mess that might not be tidied up all year your best trade may come from the cleaning closet.

From bleach and wipes to the toilet wand and more, does Clorox know the formula to clean out the competition?

Clorox CEO Don Knauss joins the panel for this conversation. Following is a synopsis of his main points.

Why the cautious guidance, Monday?

“We took our annual guidance up,” replies Knauss. “I think when we beat consensus by almost 9 cents Monday there was some expectation that we would float more of that through the whole year. But we took guidance up.

He adds, “As we look out into the second half of the year, we continue to see commodity pressure out there like most folks do. We went into the year with a $25 million headwind on commodity costs and we’re seeing that headwind go north of $100 million. But despite that we took our outlook up, slightly.”

Are you running more efficiently or are you passing along some of those prices increases.

“I think it’s a little bit of both, replies Knauss. “The top line is growing quite a bit ahead of where (the Street) had thought. We grew volume 6.2% in the first half of the year. Guidance was 3% - 5%. So we over-delivered volume. And we run effective cost savings programs. So it’s a combination.”

When commodities go up which of your brands take the hardest hit?

“The biggest brand that has exposure to commodities is our glad trash bag business,” says Knauss. “But we deal with hundreds of different commodities.”

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Dylan asks the panel, "How do you trade it?"

I like Unilever says Tim Seymour for growth in emerging markets.

Or keep an eye on some of the chemical companies, adds Pete Najarian. I like that play better than consumer staples.

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Trader disclosure: On Feb.4, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (INTC), (DIS); Najarian Owns (AMR), (BIIB), (C), (CSCO), (YHOO), (XLF), (MCD); Najarian Owns (AAPL) Calls, (GOOG) Calls, (NYX) Calls, ; Najarian Owns (WM) Puts; Finerman Owns (GS), (RTP), (YHOO), (AEO), (WMT); Finerman's Firm And Finerman Own (CROX), (KALU); Finerman's Firm Owns (NMX) And (NMX) Options; Finerman's Firm Is Short (SPY), (IJR), (IYR), (IWM), (MDY), (CME), (COF); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Is Short (MHGC); Seymour Owns (CSCO), (GOOG), (INTC), (MSFT), (SBUX), (YHOO), (SHLD), (UN); Seygem Asset Management Owns (CTCM), (FMCN), (GAF), (GFI); Charles Schwab Is A Sponosr Of "Fast Money"

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