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Halftime Pt. 2: 'Fast' Traders: Two Earnings To Watch Tuesday

With earnings season in full-swing, the Fast Money traders share what earnings reports they'll be looking for after the closing bell Tuesday.

Joe Terranova of Vitrus Investment Partners is waiting for Broadcom to report after the bell Tuesday. The technology company, notes host Melissa Lee, is said to greatly benefit from Apple's iPad with as much as two of 61 cents comes from the device. Over the last few quarters, says Terranova, this semiconductor has beat the Street's estimates. There is heavy short interest in this Irvine, Calif.-based company now, he notes, so on a beat take the looks and profit into those short-coverings.

Patty Edwards of Storehouse Partners will be watching Panera Bread when it reports earnings Tuesday evening. What makes this company unique, she says, is that it's not quite a fast food establishment, but not quite a sit-down restaurant either. She thinks its earnings will be a "real tell" on consumer spending. Analysts are looking for 84 cents, but Edwards hopes the Richmond Heights, Mo.-based company will beat that.

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UNUSUAL ACTIVITY: MGM

There are take-over rumors regarding MGM Resorts International, says Jon Najarian of optionMONSTER.com. As a result, he notes that the stock is trading at almost a tenth of where it was in 2007, which is the last time these rumors were circulating. In midday trading Tuesday, the stock traded approximately 45,000 contracts, whereas a normal full day totals 19,000. Najarian is in both stock and options of MGM.

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CALL TO THE FLOOR: WORLD'S BIGGEST MAKER OF BUSINESS SOFTWARE

After revealing sales weakness in Europe and Asia when reporting quarterly earnings Tuesday, shares of technology company SAP fell by 3%. To talk about what's next for the tech name, CEO Bill McDermott spoke with host Melissa Lee live from the company's headquarters in Walldorf, Germany.

Watch the video to see how it went.

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CALL THE CLOSE

Jon Najarian of optionMONSTER.com is troubled by the VIX getting closer to that moving average and thinks the rally could run out of steam.

Patty Edwards of Storehouse Partners is being cautious and sitting on the side.

Brian Kelly of Kanundrum Capital recommends buying puts and being cautious.

Joe Terranova of Vitrus Investment Partners would buy some Pepsico .

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Trader disclosure: On July 27, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kelly owns (BP) puts; Terranova owns (AMZN), (EMC), (CREE), (CRCM), (LRCX), (COP), (AXP), (BMO), (CSX), (PEP), (CVS), (GS), (PCP), (C), (APA), (FCX), (JOYG), (MMM), (MOS), (UAUA), (WYNN), (GOOG), (BBY), (SU), (KOL), (BAX), (JNPR), (GLD)

Brian Kelly
Accounts managed by Kanundrum Capital own (UNG)
Accounts managed by Kanundrum Capital own (BAK)
Accounts managed by Kanundrum Capital own (ORI)
Accounts managed by Kanundrum Capital own (VIV)
Accounts managed by Kanundrum Capital own (XLF)
Accounts managed by Kanundrum Capital own (GME)
Accounts managed by Kanundrum Capital own (OIH)
Accounts managed by Kanundrum Capital owns Euros
Accounts managed by Kanundrum Capital owns Australian Dollars
Accounts managed by Kanundrum Capital own (TBT)
Accounts managed by Kanundrum Capital own (AAPL) calls
Accounts managed by Kanundrum Capital are short (GLD)
Accounts managed by Kanundrum Capital are short the Yen
Accounts managed by Kanundrum Capital are short the US Dollars

For Patty Edwards
Edwards owns (AKAM) for clients
Edwards owns (FCX) for clients
Edwards owns (BA) for clients
Edwards owns (TXN) for clients
Edwards owns (NVDA) for clients
Edwards owns (INTC) for clients
Edwards owns (DELL) for clients
Edwards owns (MSFT) for clients
Edwards owns gold for clients
Edwards owns platinum for clients
Edwards owns silver for clients
Edwards owns the Russell 2000 for clients
Edwards owns the S&P500 for clients

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 (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Whitney Tilson
Funds Managed by Tilson own (BP)
Funds Managed by Tilson own (MSFT)

CNBC.com with wires

Symbol
Price
 
Change
%Change
BRCM
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MGM
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PEP
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PNRA
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SAP
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AAPL
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