Show Me Season

Traders appear reluctant to make bets before hearing earnings updates from companies. Is that an opportunity for you?

Dow component Alcoa officially kicks off earnings season on Tuesday. Investors are expecting a rough report from the aluminum maker, whose profits are expected to sink nearly 20 percent as escalating energy and other costs take their toll.

I wouldn’t jump infront of Alcoa, counsels Guy Adami. But with that said, Alcoa seems like a logical target for Vale . But their earnings probably won’t be spectacular.

And that about sums up this earnings season in general. Few analysts expect to hear good news about the state of Corporate America. Some have speculated, in fact, that earnings could be so bad that they'll precipitate a market-bottoming, or capitulation, that would ultimately lead stocks back up again. But that’s a theory that’s considered optimistic.

Don’t bottom pick, counsels Pete Najarian. I’d wait, be patient and look for a turn. I’d rather be late than wrong.

The only space I’d look at are the defense stocks. I think they could contain some upside surprises, counters Guy Adami. I mean companies like Lockheed , Raytheon and Northrop.

Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send your e-mail to

Trader disclosure: On July 7, 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 (ATVI), (WMT), (DIS), (MSFT); Najarian Owns (AAPL), (NOK), (TSO), (XLF), (XTO), (FNM), (ANR); Najarian Owns (FNM) Puts, (MER) Puts; Najarian Owns (RIMM) Calls, (SLB) Calls; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (GE), (MPG), (MSFT), (SUN), (TSO), (VLO); Finerman's Firm And Finerman Own (PDE); Finerman's Firm Owns SPX Index Puts; Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm And Finerman Own (FLS); Finerman's Firm Is Short (SPG), (IYR), (IJR), (MDY), (SPY), (IWM); Finerman's Firm Is Short (XME) And Owns (XME) Puts

GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC