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Take Your Position: Home Depot, Walmart

With two of the nation’s largest retailers scheduled to release earnings on Tuesday morning, what should you be watching as they unleash potentially market moving results?

Home Depot: Nuts & Bolts

When Home Depot reports Tuesday before the bell, investors will be eager hear hear how lawn and garden products are selling. The spring season is home-improvement retailers' busiest, and how well lawn and garden products are selling is a bellwether for how consumers are feeling about spending money on their homes.

Investor will also want to know if customers are sticking to small maintenance projects or taking on bigger renovations. Home Depot usually reports if the number of transactions over $900 and under $50 rose or fell. As the economy slowly improves, consumers have begun tackling projects around the house that they delayed during the recession but they have yet to return to bigger projects.

Of course, strong sales would be a sign that consumers are willing and able to spend more in a sustainable way.

Home Depot: By the Numbers

Analysts expect net income of 49 cents per share on revenue of $17.06 billion, according to FactSet. Analysts typically exclude one-time items.

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Walmart: Nuts & Bolts

Also scheduled to report before the bell Tuesday, investors will be eager to hear how gas prices are affecting Walmart shoppers and whether the company is seeing any improvement in a key revenue indicator.

Analysts expect the company to report that revenue in its U.S. stores open at least a year fell 1 percent compared with a year earlier, including a 1.1 percent drop at Walmart stores and a 3 percent increase at Sam's Clubs, according to FactSet. That comparison is an important indicator of a retailer's financial health because it excludes revenue from stores that recently opened or closed.

As you may know, results from Walmart are used almost as a economic indicator. How quickly goods fly off the shelves provides a compelling checkup on the nation's middle class.

Walmart: By the Numbers

Analysts expect net income of 95 cents per share on revenue of $102.85 billion, excluding Sam's Club membership fees, according to FactSet.

Find out what Sanford analyst Colin McGranahan is looking for. Watch the video now!














Other Retailers

And if you're looking for other trades in this space, Karen Finerman says she likes Target more than Walmart. Joe Terranova is bullish on Kohl's and BJ's two stocks he thinks perform well in a environment of slower growth.

Guy Adami suggests watching Abercrombie & Fitch . "It's a name we've liked for a while although the stock may be ahead of itself.




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Trader disclosure: On May 16, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Stephen Weiss is short (X). Stephen Weiss owns (DVN), (COP), (QCOM), (BRCM), (TEVA), (KO), (RIG), (HK), (AKAM), (UUP), (DE), (UAL), (MRK), (HBAN), (KEY) and (JPM); Terranova owns (VRTS); Terranova owns (AAPL); Terranova owns (JPM); Terranova owns (V); Terranova owns (BX); Terranova owns (UPL); Terranova owns (BAX); Terranova owns (PFE); Terranova owns (PEP); Terranova owns (MCD); Terranova owns (TM); Terranova owns (DIS); Terranova owns (BJ); Terranova owns (APA); Terranova owns (OXY); Terranova owns (XOM); Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Karabell owns (RIMM); Karabell owns (SLV); Karabell owns (AAPL); Karabell owns (GE); Karabell owns (GOOG)

For Joe Terranova
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For Zachary Karabell
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For Amelia Bourdeau
**No Disclosures


CNBC.com with wires.