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Halftime: Intel, Baidu, Goodyear and Other Hot Trades

Monday, 25 Apr 2011 | 1:36 PM ET

On Monday the S&P fell, as investors worried that inflation might emerge as a wild car this earnings season, straining corporate outlooks.

Jitters were triggered by Kleenex tissue maker Kimberly-Clark; the company posted a steeper-than-expected drop in quarterly profit on Monday and cut the low end of its full-year forecast as costs of pulp and other goods rose more than twice as much as it expected.

”Everyone is watching margins because of the energy price situation," says Eric Green, senior portfolio manager at Penn Capital Management in a Reuters interview.

In this kind of environment, the Fast Money traders always recommend taking a hard look at what’s working.

What should you be watching?

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INTEL & MICRON

According to published reports,Intel and Micron are set to open a new $3 billion manufacturing plant in Singapore to make chips used in smartphones and tablets, highlighting the need for additional production capacity at a time when demand is strong.

What’s the trade?

Both trader Steve Grasso and Pete Najarian suggests playing Intel and rival Micron within a range. Right now both stocks are approaching resistance they say, however on pullback, they’re buyers.

Looking at Micron, Grasso says the range has been $10.50 on the downside and $11.70 on the upside. "And at $22. Intel butts its head,” he adds.

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FAST FLASH: BAIDU

The traders are also watching the action in China based Baidu , a Chinese language Internet search provider.

Shares hit an all time high in Monday’s session.

How should you position, now?

Trader Zach Karabell says, “I think the space is in the early innings of a multi-year growth story.” However with that said, he admits valuations in Baidu are very high.

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UNUSUAL ACTIVITY: GOODYEAR

Pete Najarian has spotted unusual action in Goodyear .

A higher than usual volume of Goodyear May 17 calls suggests to Najarian that the stock could make a sharp move higher.

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CALL OF THE DAY: SELL NETFLIX BEFORE EARNINGS!

Netflix hit another record high on Monday ahead of its earnings report. Shorting this stock has been one of the most painful trades on the Street. But, is it the right call?

Wedbush Morgan analyst Michael Pachter has maintained his sell rating on the stock and still has an $80 price target.

Find out why he’s so bearish. Watch the video now!

No, No, Netflix
Michael Pachter, Wedbush Securities analyst, discusses his opinion that Netflix is a sell, in spite of the fact that the stock hit another high today. Pachter says the cost of content will continue to rise and, as a result, has placed an $80 price target on the stock.



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Trader disclosure: On April 25, 2011, 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 (PFE); Pete Najarian is long (TCK); Pete Najarian is long (AAPL); Pete Najarian is long (AKAM); Pete Najarian is long (C); Pete Najarian is long (HPQ); Pete Najarian is long (TEVA); Pete Najarian is long (MS); Pete Najarian is long (RSX); Pete Najarian is long (GE); Pete Najarian is long (RIMM) calls; Pete Najarian is long (AVL) calls; Pete Najarian is long (NTAP) calls; Pete Najarian is long (XLF) calls; Pete Najarian is long (PMCS) calls; Pete Najarian is long (CVS) calls; Pete Najarian is long (XL) calls; Pete Najarian is long (BSK) calls; Pete Najarian is long (HBC) calls; Pete Najarian is long (EWZ) calls; Karabell owns (BIDU); Karabell owns (COH); Karabell owns (GOOG); Karabell owns (AAPL); Karabell owns (AGQ); Grasso owns (AMD); Grasso owns (ASTM); Grasso owns (BA); Grasso owns (BAC); Grasso owns (C); Grasso owns (CSCO); Grasso owns (D); Grasso owns (JPM); Grasso owns (LIT); Grasso owns (LPX); Grasso owns (MHY); Grasso owns (NDAQ); Grasso owns (PFE); Grasso owns (PRST); Grasso owns (TEVA)

For Steve Grasso:
Stuart Frankel & Co and its partners own (AMD)
Stuart Frankel & Co and its partners own (AOL)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HPQ)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (MSFT)
Stuart Frankel & Co and its partners own (NYX)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners own (UAL)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)

For Michael Pachter
Wedbush Securities Is A Market Maker In (NFLX)

For Brian Kelly
Accounts Managed by Brian Kelly Capital own (SLV)
Accounts Managed by Brian Kelly Capital own (GLD)
Accounts Managed by Brian Kelly Capital own (DIA)
Accounts Managed by Brian Kelly Capital own (SU)
Accounts Managed by Brian Kelly Capital own (CNQ)
Accounts Managed by Brian Kelly Capital own (RVBD)
Accounts Managed by Brian Kelly Capital own (BCSI)
Accounts Managed by Brian Kelly Capital own (DBA)
Accounts Managed by Brian Kelly Capital are short gold
Accounts Managed by Brian Kelly Capital own silver futures
Accounts Managed by Brian Kelly Capital own wheat futures
Accounts Managed by Brian Kelly Capital own soybeans futures
Accounts Managed by Brian Kelly Capital own natural gas futures

For Zachary Karabell
River Twice Capital is short (NVDA) puts
River Twice Capital owns (JCI)
River Twice Capital and Karabell own (GS)
River Twice Capital is short (XLF)

Comcast Is The Parent Company Of CNBC
Comcast Is The Parent Company Of NBCUniversal
GE Owns 49% Of NBCUniversal
GE Owns 49% Of CNBC





CNBC.com with wires.

  Price   Change %Change
S&P 500
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BIDU
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GT
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INTC
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1767
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MU
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NFLX
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