Yahoo said late last month it would continue with the planned spin-off despite the IRS declining to rule if it would be tax-free. Regardless, Yahoo could report disappointing margins, which would drag its shares down even more, said trader Steve Grasso.
Read MoreYahoo to spin off Alibaba stake despite no IRS ruling
Chipotle Mexican Grill
Fast casual chain Chipotle also reports Tuesday. The stock has climbed about 5 percent this year in what trader Guy Adami called "extremely volatile" movements.
He would look to buy only if the stock falls on a disappointing report.
Verizon posts earnings Tuesday, but trader Grasso sees more upside in competitor T-Mobile. The stock has soared more than 50 percent this year.
Tim Seymour is long AAPL, BAC, CLF, DIS, F, FCX, GE, GM, GOOGL, INTC, JPM, KO, LGF, T, TWTR, Tim's firm is long BABA, BIDU, MCD, NKE, NOK, SBUX, YHOO.
Steve is Long AAPL, BA, BAC, CC, DD, DIS, DECK, EVGN, FIT, KBH, MJNA, MBLY, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long BP, COP, CVX, IBM, NE, NEM, OXY, RIG, WYNN kids own EFA, EFG, EWJ, IJR, SPY
Karen is long BAC, C, FINL, FL, GOOG, GOOGL, JPM, KORS, KORS call spreads, M, URI, she is short SPY, Her firm is long ANTM, AAPL, BAC, C, DIS, FINL, FL, GOOG, GOOGL, GPS, JPM, KORS, KORS call spreads, M, M calls, M call spreads, SUNE, SUNE call spreads, URI, URI long puts, her firm is short IWM, SPY, MDY, USO, Karen Finerman is on the board of GrafTech International.
Guy Adami is long CELG, EXAS, INTC, Guy Adami's wife, Linda Snow, works at Merck.