tv Fast Money CNBC April 7, 2015 5:00pm-6:01pm EDT
acknowledge. >> people are lying about it. cnbc.com, we have all the data, tons of numbers there. >> so disturbing. thank you guys all for being here this afternoon. really appreciate it. that does it for us on "closing bell." more on the story on the website. "fast money" is coming up with melissa lee and the gang. >> i'll take it, kelly. thanks so much. "fast money" starts now, live from the nasdaq market site overlooking new york city's time square, i'm melissa lee. here's what's on the fast track tonight. twitter topping the tape today as one big twitter bear turned over a new leaf. we've got the details. how to play today's 4% rally coming up. and can facebook beat out apple in our "fast money" madness challenge? the traders are split on the desk so you'll be deciding who wins the trophy. a big reversal in crude oil today. the commodity starting lower then closing at its highest of the year. we have new data coming out from the american petroleum institute. it's moving crude in the after hours. >> you saw the chart, melissa,
crude oil, $52.94. it was closer to $54 around 4:30. weekly crude oil inventories had a build of 12.2 million barrels versus expectations for a 3.4 million barrel build. significantly higher. bigger inventories mean lower crude prices. move lower intraday off the levels here. that's interesting data to watch. tomorrow morning, we get the eia's data on crude oil inventories as well. speaking of crude, also in energy, we're watching what's happening with a couple of multinational, international oil and gas companies. according to dow jones, citing sources familiar, the dutch/english oil giant, royal dutch shell, is in talks to acquire a large natural gas company called bg group out in the uk. this is a company that's worth around $46 billion. if a deal, if a deal were to happen, it would be one of the biggest deals of the year, and
just another in this industry that seems to be at least maybe consolidating because of the drop in oil prices over the course of the past year. so, again, bg gas, bg group, rather, a gas producer based in the uk. may be the target of an acquisition by royal dutch shell. this according to dow jones citing sources, melissa, guys. back over to you guys. >> thanks to much, dom chu. what did he make of the move in world? how should we factor in the massive build? >> two weeks ago you would have thought oil would be down $3, $4 on this. it's not. the sentiment changed quite a bit. you have the reflexive process. if oil going lower means the economy might be getting a little weaker in oil patch state which means a lower dollar which would boost oil prices. i kind of think that's what we've seen in the commodity space where you have this dollar correction within a longer uptrend and seen commodities really rally. for me, we'll have to see what happens tomorrow. oil has been all over the map
and has not responded to the fundamentals recently. >> if you think about what happened today, the dixie up almost 1%. it wasn't just oil that actually reversed that trend. in other words, held its own but also emerging markets, other curren currencies. if you look at oil, a lot of people were expecting this deal like this. the royal dutch deal is what we're going to see more of and the strong hands look over and pick over and be opportunistic to the upside. people thought exxon was going to buy whiting. they came out with a secondary. remember, that's when we pushed oil prices back down three weeks ago. i believe brent prices have definitely seen their lows of the year. i think it's a case where look at iran's supply. we digested that number yet oil continues to trade. brent is only a couple bucks off its highs for the year as well. so i think this is a time where you have to look at the global dynamics, positioning and right now it still feels fine. >> on the back of the gain in oil today, we saw big gains in equities. particularly the integrated. chevron and total. nice gains for them. >> i think people think oil can
outperform the overall market for near future. i think tim speaks to an important dynamic. when you see the dollar run, that means this unwind is happening right now in oil. you have guys covering, covering shorts, covering shorts with large integrated names, covering shorts across the space. longer term i don't think it's viable. longer term i don't think the market is viable. >> in terms of the equities -- >> look at how the market fell out -- i don't know if this was a hint of what data was coming out after the bell, but the market really fell in a precipitous fashion going into the close. that to me is a little bit nerve-racking for longs. >> the s&p traded in a fairly tight range today but we did close with the lows pretty much of the session. >> yeah, about 1:30 something happened. the bond market rallied. equities sold off. the way to play it since january, the refiners, been on fire, until recently. now, 85 to me is the line in the sand. down again today. it held 85 seemingly today in balance but i think it's important if you're playing the
refiners, to me 85 is the line in the sand. a broke close to 85, i think the trade is over. >> to you bdo you buy this if t happens it's a precursor to who is coming in terms of consolidation? that would be a good thing. >> it whoub good thing for oil. clearly a good thing for the oil market and those stocks. i think, yeah, if you want oil to go higher, what you really want to see is capacity taken out of the system. to the extent that these mergers do that, great, or you could have bankruptcies which we may see as well. >> and shorts taken o ut out ofe system. people are going to get spooked by this whole move to your point. the refiners had their move. >> it's done. >> i don't know in it's done. i'd rather jmpump on the servic names. two other things that were headlined today, saudi arabia's naini who is the czar of opec came out and said they do want opec nations to work together, they do care about stability in oil prices. that to me is the first time we
heard out of opec for a long time. the other side in support of that the eia saying they're looking at production in the u.s. while it's going to be growing next year and in 2016, they're down -- >> you're a buyer into this oil stability rally? >> absolutely. i'm not a buyer week to week. i'm a buyer 3, 6, 9, 12 months is nigh time horizon. >> our next guest says you should not trust the rally in oil. tom, it's always great to have you. why not trust this move? >> i think oil is still in trouble. i think maybe at best, it balances or starts to balance in the third quarter. in the second quarter, it's very rough. now, we had a build overnight reported by american petroleum institute. it speaks to a big deal tomorrow. i think oil continues to be sloppy, particularly on the crude oil side. i would disagree with the notion that brent may have seen its highs.
what we're seeing is record investment money flow into brent on the long side and that scares me. >> highs or lows? i'm sorry. >> highs. a lot of buying in brent. much more than wti. there's a huge long bias -- i think oil still has a period where it's going to go down and maybe retest the lows. >> you know, yesterday we saw some bullish calls. we saw that new -- the iranian deal or proposed deal was going to add product on to the marketplace, but we're not going to see that until 2016. >> right. >> then you said as tom said saudi bullish talk about prices firming. where do you think wti goes? have we seen the lows there? >> i think we retest the lows. whether we see a day or moment with $39, i don't know. i think we re-test the lows. it gets very, very ugly in the next 40 days. you spoke about refinery maintenance. there are other aspects. we have another round of crude oil maintenance. we're done with most of the gasoline maintenance. we're going to see some of the surplus in crude transfer into a
surplus or very uncomfortable stocks of gasoline. i agree, you mentioned refining could be a little bit weaker as we go through the second quarter because they've had the glory days in march and so far in april. >> so, tom, you mentioned the api build which was massive tonight. now, we also talked on this desk about the fact that cushing may fill up at systome point. it may push some people to think it fills up sooner than faster. what happens? when is that? what happens if that does occur? >> i wish i knew when it happened because i would play it as a trade and retire to france. but i think it happens in this -- >> sorry to hear that. >> -- quarter. i belief ve it happens late apr or may. cushing will fill but get uncomfortably high and have too much oil at the gulf coast. it's easy to move oil from cushing to the gulf coast now. they're going to run the oil. we're going to have a lot of refined products production. imagine this scenario. imagine if you had a gulf coast
hurricane this year knock out refining capacity. what would happen to crude oil under those circumstances? because there's a lot more on shore and a lot more of a dynamic with that than off shore at the moment. >> bottom line for us in terms of the lows because you say don't trust the rally, could we still see 30 which was your previous prediction the last time you were on? >> i think we could see a $39 number or something in the 30s. i wouldn't put anything out of reach at this point, and, you know, the eia says gas prices will average $2.45 this year. i think they may be from $1.80 to $2.75 on the year. it's a cheap year. consumers will have the dividend. when are they going to spend it? they haven't been so far. >> tom, great to see you. thanks for coming by. >> i think refiners are interesting. till mentioned maybe it's the second round. in terms of trade, you have to own it above $85. below $85 it gets dicey in terms of the technicals. i think everybody has been trying to play exxon conoco.
i do think there's another leg lower in oil which means i think exxon has a little room. >> i'm still long gse which is the crb index. it's really heavy oil. that's the way to play it. even if you get a pullback tomorrow, crude oil has not responded to this oversupply in the recent weeks. you have to be long it still. march 27th, steve over here explained why he was cashing out a number of stocks ahead of the start of the second quarter. take a listen. >> if you look at the quarter we're having right now, we have the potential on 03/31 next week to have a negative quarter. that would put the kibosh on this whole marketplace right now, so we're very close to the top in the s&p. i would be very careful. i sold my positions because this makes me nervous as all hell. i sold all the marquee names. google, facebook. i still own twitter. i was a little iffy on that. i sold my southern utility name, which i thought was saving for a rainy day. i got out of everything because i think the market goes down, there's not a whole hell of a
lot that's going to survive if the market comes in 45% to 50%. >> wow. >> a short would have survived which is weird. >> i heard the "h" word a couple times there, i heard kibosh. >> now what? >> we did not have a negative quarter but did have a negative quarter in the dow industrials. the level to watch is 17,776. those take two quarters to confirm. long-term trade. we were close to having an overbought negative quarter for the s&p. that's off the table right now. we'll have to wait and see come the end of the next quarter. i'm not in a rush to buy back anything. i did buy back apple. i feel like you need to open annen in your portfolio. it's a binary situation but i think it goes higher. >> taking all the profits and the rest of your stocks, though, i mean -- how many times have you done that in your career? walked away from the end of a quarter just liquidated? >> first time. >> first time ever. >> first time. i felt that strongly about it. >> wow. >> because potentially the losses if we did have the negative quarter, on an overbought status, the only times this has happened is 2000 and 2007 and we lost basically
40%, 47% value of the market. a twitter bear becomes a twitter bull. the social stock rallied reports on today of takeover chatter. is it too late to get in on the twitter action? we'll debate that. analyst sentiment is negative this earnings season. that could be a good thing for the markets. we'll outline this contrarian indicator this earnings season. the madness is not over here on "fast money" tonight. facebook takes on apple in the "fast money" madness challenge. you'll decide which stock takes the trophy. get on twitter now and vote. we have the results coming up on "fast." it took tennis legend serena williams, fencing champion tim morehouse and the rockettes years to master their craft. but only moments to master paying bills at chase.com. depositing checks at the atm and transferring funds on the mobile app. technology designed for you.
fedex looking to boost its footprint in yueurope. they'll acquire tmt express for $4.8 billion. two years ago u.p.s. attempted to buy tnt for $7 billion. fred smith was on "squawk on the street" earlier today, had this to say about the impact on oil and the u.s. dollar. >> the dollar exchange ratio is very favorable. the quantitative easing and the lower oil prices mean that the european economy has a better outlook now than it has for some
period of time, and we thought that the planets lined up perfectly for this move. >> guy adami? >> makes a lot of sense. if you listened to him this morning, it makes a lot of sense. timmy talked about europe improving. i don't know if that matters because this is clearly much longer term. u. u.p.s. tried to pull this off a couple years ago with no success. don't know why it's going to happen now. with that said, how do you trade federal express? look at the transports, it's the same chart as federal express since november. had trouble at 168. for that fedex deal today, iyt would have been lower on the day. i think it's breaking down which almost by definition means fedex is breaking down. got to avoid the transports here. they feel heavy to me. they don't trade right. fedex should have done much better than it did. it gave up the ghost late. i think everything is going lower on that end. >> is the corollary is the transports breaking down, the markets will break down? >> i think that's what you need to look at.
if you look at the spy versus iyt, you're seeing this big divergence open up, it's the first time we've seen it in a long time. the transports break down. now today it bounced right back but at the end of the day with everything falling off t failed at that level. this has to resolve one way or the other. you know, my guess is the spy coming down rather than the iyt goes up. >> transports have been down for rails and airlines largely. this deal is huge for fedex. in fact, i think it helps fill a void in europe. calling dow theory based upon the transports here is actually a dangerous thing to do. because i think you have fesk things going on with energy prices that were spooking the airlines. capacity issues. i don't think it's relevant. >> is this deal more of a state on europe? >> absolutely. >> and corporate america's feelings to europe? >> they didn't have intra-european expression. this is exactly -- >> in terms of the transports,
oil is down, one, because of supply and also because of demand. the transports still tell us something. don't the rails tell us something? >> i don't agree with that. >> i mean -- >> the demand fallout, we're still going to consume 94 million barrels of oil next year. it's not growing at 4%, 5% -- >> something happened. we didn't have a 50% increase in supply. something happened on the demand side. let's go back to the rails. look at ksu, right? they warned last week or two weeks ago. they said things aren't as good as everybody is talking. we saw the consumer credit today. that has been declining. so there is a slowing in economy. that's my only point with the transport. there's a slowing in the economy. not saying the world is falling apart, but there's a divergence there. to me i think the s&p has to come to the transports. >> the s&p, just to piggyback on you there, the oil -- oil collapsing being cut in half was the demand side of the equation, so everyone thinks, oh, it was a supply shock, an overabundance of crude. the truth is it was a foreboding example of what was happening to the world. global growth is coming in.
it's still not ratcheting any higher. the fed cannot raise rates. they're backed up into a corner. they have no more slack between short-term rates, longer term the ten-year rates. they could create a problem here on inverted yield curve very quickly and stops everything. i think that's what you're seeing on the growth. next up, twitter, big day of gains for the stock. takeover chatter once again giving the stock a boost. the company also releasing a new feature this morning making it easier to retweet and add comments on its platform. alpha one capital's dan niles who had been long the stock changing his tune announcing he's now long twitter earlier today on the halftime report. take a listen. >> with twitter, obviously the valuation is something that's impossible to get comfortable with, and relative to other names out there, but the real problem with twitter and why we've been short this stock pretty much off and on since they came public is because their user growth had massively slowed down, and what we finally see is them making moves between
different features such as instant timeline or while you were away. more importantly, the search deal with google that they went ahead and signed where google will be able to access all the tweets coming in, be able to show that when you do a search, we think that's going to really help get their monthly active users which has been the big problem with this company. they only hadd added 4 million sequentially in the most recent quarter, for example. that will enable them to get that cranked up and moving in the right direction. >> monthly log-in users. come on. >> i tell you, people are getting more comfortable with what we were told, you should be listening to our logged out and third parties are picking us up. i know steve believes that. if you want talk about the stock, what's going on, 52 is a key level to break out. today we had a break out past that level on 2 1/2 times volume so it was a real move. some of the things i think dan is talking about, the move to mobile is something -- some
point video in mobile -- actually video overall is going to be a $17 billion market by the end of 2017. these guys will have a meaningful share. so to say these guys aren't growing and growing into 288 million and 500-plus logged out users is to say they're totally missing. i think they're going to get it. i think the stock is breaking out. people see they're still in the early stages of that. >> why was twitter the only stock you held? >> because i think you're going to see a deal one way or another whether it's dan niles' point they're going to sign little jvs here and there. i don't think you're going to see google take out twitter. i would love to see it. i don't think -- >> somebody else, though, you think is going to take out twitter. >> i don't know if it can happen anymore. >> it doesn't matter to your long -- >> it doesn't matter because i think maus are growing. there's going to be probably a surprise number to the upside. i think that as tim said, third parties, you're seeing these twitter feeds whether you're logged in or logged out, i can follow this twitter feed. it doesn't matter whether i'm logged in or logged out. but on a trading range, it's
50/56. until it breaks out, don't do anything. >> couple years ago, facebook, everybody was calling for the head of management. facebook's stock was in the gutter. it couldn't have been worse. you obviously saw the turnaround. i think we made this point. twitter is where facebook was a couple years ago. it does feel like it's going to break out. a dole on twitter, somebody to buy twitter would be a $40 billion deal. that's not insignificant. we throw around billions like nothing. that would be a huge deal. there's clearly something happeni happening. the report on the 28th of april. stay long the stock. >> i liked it. the reason i got into it originally because the sentiment had gotten so bad. you had this kind of facebook moment for twitter. now i think they're doing a couple things right. people are starting to see the story. whether you -- you know, it's all about users whether logged in or not, and i do think it's a unique property on the web. where else do you get this type of property if they can just figure one or two things out, they're going to do all right. still ahead, the street may be bracing for a rough earnings season ahead but the negative
sentiment could be a good thing for the markets. we have the data you need to see. later betting on bonds or not? why one top strategist is staying underweight the fixed income trade and where she's putting her money to work right now. stay tuned. the great thing about "fast money" you're getting multiple perspectives. >> my specialty is watching u.s. equities. >> i'm a long-term investor for sure. >> i've always looked at technicals more than fundamentals. i don't just look at one entity. i look for unusual options. >> i do tests. stock market manias. >> i'm the global trader. i believe the global perspective. >> our investors want to make their own decisions. >> we deliver dozens and dozens of trades. that's what we do. >> "fast money" weekdays 5:00 eastern on cnbc.
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and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. a slowdown in economic activity, low energy prices and a strong dollar have driven analysts to very low expectat n expectations heading into this earnings season. in the last four weeks analysts lowered estimates for 697 of the s&p 1,500 companies and raised estimates on only 305. while sentiment may be negative our next guest says that could be a good thing for the markets. let's bring in paul. we talk about sentiment being a contrarian indicator all the time. same thing.
>> invariably when you come into each other where sentiment is, has a good deal to say where the market is going to go the following earnings season. in quarters over the last six years, where we've seen positive analyst sentiment, more positive revisions than negative, s&p averages the decline of 1.2% positive returns less than half the time, conversely like now, where analyst revisions outnumber negative revisions outnumber positive revisions. the sp with positive gains 80% of the time. 2-1 negative right now. even if you took out energy, it would be 2-1 negative. not just energy but across all sectors. >> let's go secotor than stock. therefore, which sector has the most negative sentiment i guess going into the quarter? >> energy has the most negative sentiment but is less anythineg this quarter than last quarter. there's only been three other quarters in last six years where
the sentiment has been more negative, and the s&p -- the sector averaged a gain of 5% to 9% in the ensuing six weeks positive all three times. so that's the good -- that's a sector you may want to focus on as we get into earnings seasons here. as an individual stock, ibm, nobody likes ibm right now. only five analysts rate it a buy out of 30. the stock has gapped down following its last six earnings reports and it's the only stock in the dow with a price target that is below where it's currently trading right now. so, consensus target by analysts. so a lot changed, though, in the stock i think in october when they had the big warning. we had the most volume, and guy likes to say when you see that big volume, it's a sign of things. the most volume since the financial crisis in the stock, and, you know, ever since then we've seen the stock stop going down. it's been solid support in the 150s. i think we can see all the bad news is out on the stock.
you can see the potential for upside surprises. >> the issue is not necessarily that there's a lot more bad news. the issue is there may not be a lot of good news to come. and so, i mean, how do you view ibm from a fundamental -- i mean, maybe sentiment is really negative for a good reason? >> yeah. negative may be -- sentiment may be negative for a good reason. when you look at the stock, it's down in an environment where we have a strong bull market. i'm not going to make the fundamental case for the stock here, but we're looking at a contrarian indicator of sentiment and sentiment here doesn't get much more negative than on ibm now. >> would you make the fundamental case for the stock? >> i don't think there's a fundamental case. valuation is still stretched. what's the right multiple for ibm? i can make the argument an eight forward momentum is right, it's a $130-something stock. that's the way i look at it. paul makes a good point in terms of where it's traded down to and where it's sold. i don't like it. >> people have been buying it in the 150s here.
buffetstr buffett increased the stake. a transition from weak hands to strong hands. the boogeyman of that earnings target for 2010, they withdrew guidance and, you know, sets the stage with all the bad news is out. >> paul, good to see you. thank you. >> thanks for having me. coming up next, stocks versus bonds in the hunt for value. why one fixed income strategist is saying bonds are not your best bet right now. plus, alcoa kicking off the next round of earnings tomorrow. why one trader says the stock could move 4% on that report. ahead. than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions
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♪ still ahead on "fast money" live from the nasdaq in times square, bond king jeffrey gundlach is defensive on the u.s. bond market. find out why coming up. which stock will be named champion of "fast money" madness? apple going head to head with facebook. you can decide. vote now on twitter. the unofficial start to earnings season starts tomorrow with alcoa. we'll tell you why the stock could see a 4% move on this report. we start off with bonds.
the bond king jeff gundlach, here's what he told investors. >> basically i turned defensive on the u.s. bond market near the end of january which turned out to be very close to the absolute low in yields, and so we are really not that interested in being aggressive in the bond market right now. i think that the message of the market seems to be having rejected the low of the 30-year treasury. watch that very carefully. i think we're going to come to a pivotal point in the market if the 30-year treasury can find its way below 245 again, we'll see the other parts of the bond market rally as well. if it can't get below 245, it would seem we're going to have some of the choppiness that i predicted for 2015. >> our next guest says bonds are not your best bet. joining us now is heather loomis, west director of income at jp morgan private bank. heather, good to have you with us. >> thanks so much. great to be here. >> specifically in the sound bite we were playing the bit
when he was addressing the 30-year yield. he also talked about ten-year treasuries more likely to hit 1.5% than 2 preside.5%. you agree with that? >> i actually don't agree with that. i think there's possibilities for everything especially in a world with quantitative easing. nigh my expectation, something closer to 225 by year end moving up to 250. >> bonds, do you think they're overvalued by what's going on around the world? on a relative basis, are there better places to put your money? >> you got it. it a relative basis there are better places to put your money. it's more of an expression that we like other things like equities and alternative investments where we've been overweight for a very long period of time. there are pockets of opportunity in the bond market, but i agree with gundlach in the sense they're getting harder to find now. >> it's brian kelly.
i'm curious, what we've seen happen in the market, when yields rise, equities tend to sell off. people are concerned about that. so why would you rather be in equities if you think bonds are going, ten-year bonds are going to 225? >> right. well, i think that if you think about -- if you think about where we are in the economic cycle, we think that the economy is strong in the u.s., consumers are strong, corporations are strong, housing is strong. we've seen real economic progress. and equities have not been the recipient of a tremendous amount after flows to, you know, to corroborate that. bonds have received far more knows over the cycle than equities and we think there's probably a bit of catch-up yet to come combined with the strong fundamental the. >> heather, it's tim. in terms of flows and other places you're allocating, what do you think about globals? reversion of the mean trades says europe has been underallocated over the last 12 months, emerging markets over the last four years. what do you think of the two asset classes that are
outperforming? >> no. we're positive on europe. we have large allocations to europe within our portfolios second only to the united states. and we also have allocations to the emerging markets. certainly not the biggest position. we think that the u.s. will continue to be the strongest part of the equity market. >> all right. heather, going to leave it there. thanks so much for your time. we wreesappreciate it. >> thank you. >> heather loomis. >> i disagree. the tlt today, the same time the s&p started selling off is when the bond markets started to rally. i think the tlt is a buy. i think ten-year yields are going down, when i say down, south of 1.5%. if rates wanted to go higher, they would have done so by now. they don't want to go higher. >> it's interesting because gundlach at the beginning of january said the ten year would test the low of 1.38%. >> listen, it still could do
that. i'm still long tlt. the relative value trade is still on. negative rates all around the world. why wouldn't the ten year trade below 1%? >> too late to go into europe? >> i don't think so at all. this to me is the catalyst to see europe outer be form that much more. the earnings momentum is a tailwind you have not discussed. something that's not in a lot of the models. i think there will be upgrades there and absolutely brought to life by earnings seasons. time for pops and drops. big movers of the day. a pop for fire up 2%. >> this is a stock i think sentiment has been so extremely low. the guys don't report until the end of the month. revenues to bookings numbers, the bar is very, very low. both could go higher. this is company you want to take a look at at these levels. >> yesterday downgrade edowngra. today we had -- >> higher in space. >> the opposite axp. she said last week. she said it's headed lower. they report on the 16th. the stock has not traded well
for a year. >> nice. grasso? >> a day ago this was a target for kyle bass. avoid this one. more negative headlines to come. more negative than positive. stay clear of this one. >> drop for gm. down 3%. >> going to sell 70 some odd million of this stock. gm has actually been down quite a bit already. starting to approach 35 which it supports. so i would not dump out of this yet. >> we got a pop for beefier burgers, mcdonald's is rolling out a trio of sirloin third pounders. the biggest burgers on the menu since dropping one in 2013. it's the latest push to beef up the fast food sales as competition heats up. >> forge ahead with the healthier menu. >> nothing wrong with good protein. >> did that look like good protein?
>> they should just clean the stores. make it like a shake shack. >> the ball pits, ever been to the ball pits at mcdonald's? >> no, why would i got into a ball pit? >> what's a ball pit? >> a pit of balls. >> you dance around. dave and busters moving higher in the after hours session. dom chu with the story. >> up by 1.25% here on relatively heavy volume. dave and buster's profits are growing. earnings per share came in at 33 cents. revenues of $207 million. those both beat estimates. comparable store sales grew by 10.5% in the quarter. much better than .7% rise in the previous year ago. the company did issue a little bit of a conservative bit of guidance for the coming year. some would say it's in line, but still the arcade and restaurant chain went public in october after buyout talks broke down. also see there the shares moving. lion scape film taking a hit
afterhours announcing a stock by a shareholder funds affiliated with mhr funds. the chairman and largest shareholders of lions gate entertainme entertainment. they'll say 10 million of the stake of 51 million shares in the studio. the company not getting proceeds of this but a big shareholder sharing part of their stake, melissa. back over to you guys. >> dom chu. thanks for that. >> you see that and a $6.2 million share by him alone, it's something that makes you wednesday wonder. i'm long the stock. ultimately sometimes a liquidity infusion, it's actually positive for a stock. i don't think liquidity is that crucial of an issue for lions gate. this is the kind of thing, stocks down a couple percent in after hours. it's something they should shrug off. >> this is definitely -- is this a dip to buy? >> might be. i don't know where it's been priced. that's the tell to see how well it trades once it's priced. typically the secondaries get priced and thing to rallies,
gives you a level to trade against. i'm with tim on this one. i like the name. >> the way you trade it is you wait for the secondary to come out, wait for that low to hold then get in and use that as your stock. >> lot of congestions in the charts around the $32 level. use that as your stop loss. whatever way you play it from 3rks32 is the number that sticks out. you know i'm going to walk on to mad men this year? >> no, you're not. >> lie to america. >> not too funny. coming up after the break, duke may have sealed the deal in march madness but the "fast money" madness trophy is still up for grabs. tonight, our championship matchup between facebook and apple and the competition, take a look a that, getting fierce on the desk. tim and grasso make their case for apple and guy cheers for facebook. will it be a slam dunk for apple? or will facebook come out on top? the final battle is up next.
here's to breaking more glass ceilings in golf and everywhere else. kpmg. continuing our commitment to the next generation of women leaders. all right. breaking news here. earlier this hour we told you about talking possibly between bg group and royal dutch shell. we have confirmation. bg group says it's in advanced talks for a possible deal with the likes of british/dutch oil and gas giant, royal dutch shell. again, bg group has acknowledged that they are in discussions in
advance talks. they dalso say, though, there can be no certainty that any offer will ultimately be made for bg. still, it's interesting here that bg group has acknowledged the fact there are advanced talks going on between its two companies. royal dutch shell diversified exploration, gas, oil. bg gas, a company in the uk that specializes mostly in liquified natural gas. back over to you. >> thank you, dom chu. after 14 exciting battles in our "fast money" madness tournament it comes down to this the big dance of tech. two companies remain in the bracket, each knocking out three competitors to make it to this point. check out summaries of each match that brought us to the battle at cnbc.com/pro. tonight, apple and facebook. apple already bumped out hp, cisco and intel to move on to this final round. facebook kicked out google, salesforce and paychecks to make it here. in tonight's final round, it's
all up to the viewer vote. the polling opened this morning on twitter. keep voting on twitter using #fastmoneymadness until we announce the winner. though the final decision is up to you our traders still get to make their case for why their pick should be crowned champion. let's put 30 seconds on the shot clock. kick it off with tim. >> a lot of people felt apple, my choice, i think they're going to dominate this game. they may have picked too soon going into the tournament. they were clicking on every cylinder. the iphone 6 dominated. if you look at the first quarter for fiscal 2 swq the numbers ar coming through better. an uplift from china you didn't see quarter over quarter. a company that can beat you short term, long term, and a company to me that is going to ultimately ware you down. this is ultimately why i want to own apple for the long material, it's a company that's going it stay with you and a company you can count on every time. >> b.k.? >> for me it's the exact opposite. it's facebook, primarily because they have a lot easier ways and
levels levers to pull so they can grow. apple, a one-trick pony. facebook have multimillion properties experiencing the network effect. they're just starting to get the fruits of the network effect right now. we had that break out above 82. sell settled off with a little bit. we saw the support. even today on the selloff came back to 82. it's facebook over apple. >> the choice for me is apple. they have apple pay, a pretty big pony. that's their second pony. the other one is their never-ending upgrades. >> stop horsing around. >> oh. >> very good. >> anyway. >> so, it's a never-ending upgrade cycle. i'm also playing for the capital allocation. so we don't know what earnings are going to look like for them. i'm sure they're going to be positive. but i think the apple watch is going to move the needle more than people suspect. i am a half in position, and i'll wait whether it's 150 or
115 to buy it. apple is the choice. >> guy? >> i'm with b.k. on facebook. >> really? >> not that we planned this, by the way. was not planned. >> it was coincidence. >> happened that way. >> 7% of the revenue now is mobile. that number is a good number. head he headed in the right direction. more and more advertisers are using facebook for their platform. guess what? instagram, as was mentioned, my favorite, and messenger, talk about pulling levers, they can pull the levers there. stock has traded well. they report in couple weeks. i think it's going to be fine. valuation might be a little bit rich but the mojo is behind facebook. gets you done. >> clearly split right down the middle. two votes for apple. two votes for facebook. keep the votes coming on twitter. we'll reveal the big winner right after this break. so far apple is winning. so if you want facebook to win, vote now.
my nai'm a lineman for pg&e out of the concord service center. i have lived here pretty much my whole life. i have been married for twelve years. i have 3 kids. i love living here and i love working in my hometown. at pg&e we are always working to upgrade reliability to meet the demands of the customers. i'm there to do the safest job possible - not only for them, but everybody, myself included that lives in the community. i'm very proud to do the work that i do
tsplit second stats. it's so close to the options floor. you'll bust your brain-box. all on thinkorswim. from td ameritrade options action is sponsored by think or swim by td ameritrade. >> alcoa set to report earnings tomorrow after the bell. some traders think the stock could rally as much as 4% by the end of the week. mike is in austin with the
action. >> two times the daily average daily volume in alcoa. the stock typically moves 3% on earnings. the options market is implying a larger move of well over 4% this time and the bullish bets were just beating out the bearish ones and maybe one of the better examples of that was some opening call buying on the 13 1/2 strike calls that are expiring at the end of the week. buyers were paying about 30 cents for those. those are bets the stock will be above 13.80 by week's end. >> all right. thanks for that, mike. for more options action, check out our live show 5:30 p.m. eastern on friday. all right. it's now time to reveal the big winner of our "fast money" madness tournament. the desk was split with tim and grasso picking apple. b.k. and guy, picking picking f. based on the vote from home, the winner of "fast money" 2015 is apple. hold on. hold on. to the winners goes the trophy. >> we won last year. remember the trophy last year?
it looked a lot similar to this. >> hey. >> congratulations. >> going to cut the net there? >> cut it down, baby. nice job. >> wow. >> there you go. >> wow. now, was it a surprise to you guys that apple won? because usually on twitter there are a lot of apple fanatics. people feel very strongly. >> just a few people on twitter that like apple. i would say it's not that i dislike apple. i just thought that facebook had a better shot at it. you know what, on twitter everybody loves apple. you say one bad thing about apple and watch after the show, my twitter stream is going it be on fire. >> you have said, you've agreed with cramer in saying apple is an investment, not a trade. >> we've got -- >> i know, i heard. i wasn't there, but i heard. >> listen, if this is a seven-game serioues, i think we all agree apple wins. in a one-game series, i thought facebook had ha shot. i still would go with fb though the fans at home picked apple. >> this is a them that is
positioned to win this year, next year and probably the next year the way they bring new young talent on to the squad. the watch is a -- >> facebook has the young talent. facebook has the what's app, the instagram, everything. what does apple have? it's a one-trick pony. >> apple has a system you probably -- >> apple pay. anyway, stop. if i had a whistle, i'd blow it. apple won. congratulati congratulations, guys. thanks out there for you guys who tweeted in your votes. we bring you exclusive previews on cnbc.com/pro. tomorrow the pro folks are bringing something special, an exclusive webinar for subscribers at 2:00 p.m. eastern time. the current leader of the halftime portfolio contest will answer all your questions about how to trade the rest of 2015. e-mail the questions to email@example.com or tweet them to @cnbcpro. this is for cnbc pro subscribers only. first move tomorrow when we come right back. stay tuned.
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>> coming up on "mad money," cramer is call a winner in a showdown over steel stocks and details aboard carnival's recent turnaround and going off the charts to see if the transports can start flying again. all that and more tonight on "mad money." time for the final trade. let's go around the horn. >> stay on the em breakdown, ewy korea which has lagged. get long. >> prato seemed to have bottomed here. keep it on a short stock. >> we saw the market sell off today and it really accelerated after the credit numbers, consumer credit numbers came out. people are not spending on their credit cards, their savings. that could portend something negative for the market. buy spy puts. protect yourself. >> guy? i think we should -- am i watching what? >> did you watch the game last night? >> yeah, sure. >> the rangers play tonight and devils. we're playing for the presidents cup tonight. >> speaking of cups. >> the rangers getting it done. >> go. >> final trade? >> twitter. something's weird -- we talked about it earlier. looks like it wants to trade
north of 55 bucks. >> i'm melissa lee. thanks for watching. see you tomorrow at 5:00 for more "fast money." don't go anywhere. "mad money" with jim cramer starts right now. my mission is simple, to make you money! i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm trying to save money. my job is not just to entertain but to teach and coach. call me or tweet me @jim cramer. at last, some things are making sense to me. at last
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