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tv   Fast Money  CNBC  June 23, 2017 5:00pm-5:31pm EDT

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spend a lot of time together the it's excite, but we don't know what's going to happen or how we're going to get along >> they're extraordinary 110 students chosen from more than 3,000 applicants. tougher odds than getting into harvard. >> and you can catch the premier of billionaire's bet this sunday 10:00 p.m. eastern time here cnbc >> sarah's catching a flight mike's taking a young child to a baseball game and i got to get ready for "nightly business report." "fast money" begins right now. >> "fast money" starts now live from the nasdaq market side overlooking times square i'm melissa lee. your traders on the desk -- he'll lay it out in the charts plus, walmart not considering a bid for whole foods. the stock still trading above the price. so could someone else step in and make an officer? and later, home depot is
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suddenly tank g. hitting three month lows we'll tell you what's behind the move, but first, we start off with markets in week where the dow moved a total of get this. ten points there were a number of stocks trading at extremes. advanced micro, up 27% oracle rallying 15% on its earnings ros restoration hardware has been on a stump rally. that stock up 2% then there's gilead and the rest of the space breaking out. expedia, an all time high in today' session so should you trade or fade these extreme stocks guy? >> restoration hardware, we've talked about it being oversold owning it for trade with the short interest that it had now, i didn't think it would rally to the extent that it has, but the move has been unbelievable i think deutsche bank was the latest to upgrade the stock. i think you're getting into
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nosebleed territory. because valuation is still expensive. that was the knock against these guys in first place. they haven't turned their business under nufund menially where you can consider buying it now if if you've written up the stock, 50 or so, you got to take >> i disagree a rit l bit. you think about this committee, the big issue was inventory. i think they turn ed things in the right direction. i agree. it's expensive if you look at 2018, 23 times home improve space, the stock, i think it's in the workdays >> i am not in it. i was in it from the bottom you know, 2936 area and got a little bit of stage freight >> it was not subscription or lace based they had a lot of inventory
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issues, a lot of margin issues i would go with gilead, to me, of all the name, i know we talk about celgene, to be long! this isy valuation is stupid cheap. i know it has been for a long time, but at some point, it begcomes a relative point and fr a sector where not only is the regulatory target coming off, but this is a company whose core businesses are doing fine. >> what's been extraordinary is that it's been made on heavy volume for days in a row wasn't just one day of heavy volume >> then you add in everything else that we've seen with the health care sector when you talk about the drug companies, the insurance companies, everything is adding up to this bio tech, i still long that because i still think there's a wave of m&a coming if you can clear waway some of the uncertainty that big pharma has to buy, to me, i like that i also like a and d. i think there's multiple reasons to buy that. one is because of the mining
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phase. that's going on. but there are other reasons to buy amd, which we've seen in run up and we haven't seen the 2017, february 2017 highs. so i think there's more to go in a and d. >> expedia, price line, can't stop either one of those but gilead is down on here. for me, ibb is is is up 20%. i think you've got to buy that versus a binary risk you buy at the risk. you buy the index versus the individual >> two of the hottest stocks this year. >> if you believe in the home improvement area, you believe in homebuilders, i'm in the homebuilders i think this is a profit taking segment. i believe you're going to see them recover you can't believe in one without the other. guy has mentioned that home depot is good when housing is good
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it's good when housing is bad, so i believe this is a little reprieve and you could buy these. >> we've had bob on the who for the first time we get dressed exactly, this talks about what environment did home depot not do well we've had the conversation we've seen this magnitude before i don't think it's anything to be concerned about where do i get concerned break up 145 a and then we have a conversation until then, this is a sell off and aening longer bull rally >> i'd be taking profits of these stocks, but you saw median home prices hit a record high, so at some point, the flipping game, the buying new houses, the rental game, come to an end and perhaps, people are just getting ahead of it here, so if i remember long, which i'm not, if i were long both of these, i would be a profit taker. >> i hear you say that and i agree with steve's call, we have some good numbers this week. that says to me remodel. i hear that housing models are up 5 to 6% with interest rates so low
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i think home depot's biggest problem is its valuation i have to wonder whether historic valuations are even relevant especially when you think about whether these guys talked about how they're capitalal a kags has been to smart in terms of what -- >> it's a housing recovery this is a household -- it's true it is. adam's out of the the parents basement for the first time first time ever. these are up over 30%. >> i'd rather play expedia price line because they're looking for an experience. >> buying their new home >> these tiny homes which are ridiculous >> it's still a housing recovery i think you have to --
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>> a tiny housing recovery >> just because you're still in your parent's basement, i don't think you have to prove who the whole -- >> >> and nintendo >> this show has produced an angle of clips you just came from there we have a crack staff and amanda just whispered in my ear, you have to mention bed bath and yopd it was down 12%. on the back of a lousy week, so one has to question that's -- >> why not >> why not you ever go? >> towels. >> that is -- that is consumer durables staples. it's not durables. it's staples consumables. this is what amazon is taking to the wood shed and not a home improvement store. >> so, lowe's, you're in lowe's. it's the weaker player of the two. rather be in a cheerp valuation.
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seen something that is ubiquitous online. it's no different and i could buy anywhere >> it's great, i was just saying the other night. i get the potpurri, you put the candle under alito, light it up. very lovely. >> i don't know if this could be the canary in the coal mine. this has been a problem for months on end and as tim said, i think this is a problem indefinitely >> 20% off coupon problem. every single week, a 20% off coupon so, guy, did you use the 20% off coupon >> do you get those on the a p pp store >> on the interweb >> coming up, a report just crossing the line suggesting walmart will not bid for whole foods, so why is the street
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calling for a bidding war? traders are have clue, plus, oracle and microsoft surging trading near all time highs and another classic tech name that our traders think could follow suit later, chart master carter worth has the hot hand predicting two key breakouts. now, he's back with an even bolder call. look at him. chor"ft ne rhtki bd. mu me asmoy"ig after the break. liberty mutual stood with me when this guy got a flat tire in the middle of the night. hold on dad... liberty did what?
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with welcome back. it has been a week since amazon shocked the market with with its nearly $14 billion bid for whole food, but the rumor mill is swirling that someone else could step in and make an offer. >> hi, melissa, so a number of analysts including jpmorgan thought walmart could be interested, but -- not interested in making a bid walmart told cnbc the day the dial it was announceded, they feel great about its position noting its fast growing business and 4500 store, but the country's largest grocer isn't the only possible suitor and whole food shares are trading above the offer price, saying some investors do believe there
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could be other bidders they put the organ donors at 60% to consummate the deal for whole foods. they may do anything it takes to keep whole foods away from jeff bezos. the problem is, a few others may have the ability to outbid amazon, but others could make offers to least push amazon to pay more for the grocer. barclay's karen short moved her rating on whole foods to overwigt with weight with a price target of overweight andrew wolf thinks kroger could make a play. he said their capabilities with big data and analytics in grocery could be more critical than what amazon offers whole foods. he says an offer could be considered an offensive and defensive move at $50 per share. they said that would be about neutral to their earnings. now, john mackie has a duty to accept the higher offer, but what we've heard, he's pretty e
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ma' nam mored with amazon and jeff bezos. >> thank you we thought this would be the perfect time to play the whole foods dating game. our four traders are are standing by to reveal who they think should sweep in and block amazon's deal. bachelor number one the tim seymour. the ladies like to call him the ambassador been neen to take exotic trips to canada. he's got a mind for business but a mullet for sin and next is brian kelly. he loves o eat and has expensive tastes just tony expect him to pick up the tab. bachelor number three, steve grasso, a sweet guy with a sensitive side, but be warned, he gets a little grumpy when you talk about his one true love, trump. and last but not least, guy, a why collar man with a blue collar attitude. ups delivery man, lyft driver,
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and dominos pizza chef, this guy can carry a load these are your bachelor's tonight. who should step in and buy whole foods? >> tesla ha ha ha they're buying everything else they're streaming. going to put a man on the move this is really my way of saying no one else but amazon does this make sense for people forget whole foods was so left for dead, probably going to be amazon themselves, now is suddenly amazon the missing piece for kroger or walmart, it's not the consume bable business for amazon is something they're going to recraft and those stores whole foods has aren't as useful, so why not tesla because it's not going to be anybody else >> brian kelly >> i'm going to go with target here it's more just a foil the whole plan i think that's part of the thesis is that a lot of these players are going to be defensive about this and try to keep jeff out. i agree with tim they're unlikely to do that. they don't have the financial backing or the ability that amazon has, but i'd say target
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should get in there and be a troll. >> steve grasso. >> i think it's a defensive move i would think costco has to do something to try to off lay some of their membership weakness i think it makes sense for them to do it, but ultimately, i think it makes sense for wall mrt to take them out even though they say no, maybe they're playing is >> why did you put walmart >> they said they weren't interested i think costco has to get in there, but something to think about. what about starbucks makes your scratch your head a little bit there >> small little white board. >> a couple more on there. >> that's it any way. doesn't know how to play the game >> any of these three, so amazon will take them out >> guy after that, those three, it's clear i may be the bachelor who fins this with the fair maiden without question i like shakespeare in the park
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>> first time for everything there. >> amazon, tesla guy, you recall april 2016 why coi bring that up? because apollo group made a bid and acquired fresh market! oh, yes. my answer to this little riddle would be private ek quity. >> private equity. >> just playing the game >> why why? >> knows exactly who's playing the fwam if right way. >> who is the lovely bachelorette melissa or whole foods >> it's whole foods. >> wow what are you talking about >> private equity is interesting. all these guys are -- it all goes away. makes a lot of sense not this lovely damsel for
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everybody. >> in the eye of the beholder and in fact for amazon, this is a much prettier girl >> i'm not sure private equity can make it any better amazon brings something to the table. what does private equity bring just cash, which i guess is okay, but amazon could change the company. >> coming up, oracle surging to its highest level since the dot com bubble and another tech name could join the party you're watching "fast money" on cnbc in the meantime, here's what else is coming up on fast. >> card cutting is heating up. and there's a new study that suggests it's about to get worse. we'll tell you how to profit plus, he called. now carter worth is is back with al even bolder cl. the name when "fast money" returns. [vo] when it comes to investing, looking from a fresh perspective can make all the difference.
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welcome to holiday inn! ♪ ♪ whether for big meetings or little getaways, there are always smiles ahead at holiday inn. new studies show cord cutting on the rise and that has cable providers shaking in their bundles. hi, julia. >> that's right, melissa cord cutting is accelerating in the second quarter according to a new study from m signs
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now, most likely people to drop are not netflix customer, but who subscribers. they see the service as a direct replacement. hulu is owned by come cast along with disney, 12 12ist century fox and time warner. the study found elevated cord cutting specifically at both charter and comcast, but says this is more pronounced at chart e. while charter reported it fell, worth noting that comcast added 42,000 video subscribers in the first quarter, continuing from the fourth quarter when it reported best net additions of new video subs in ten years, now, just yesterday, naitson issued a report saying that hulu's live tv service could generate $570 million and $2.3 billion. that's quite a widespread
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depentding on subscriber numbers. the report notes that the service will be break even based purely on subscription dollars not including ads. wu wuone thing that a number of of analysts say has been holding it together has been lai sports with amazon beginning to snap upstreaming right, we'll see if that could be a catalyst for more cord cutting. see how that plays out in second quarter results. >> so, how do you interpret this >> just having a hard time hearing you >> if we're seeing hulu subscribers are more likely to cut the cord, is it a good thing that people are are willing to watch or watch on demand through the network as opposed to -- >> i think for the broadcasters is they want to make sure they're paid in a bundle no matter how people are watching so, it's good if you're playing for bundle if you're playing for bun l from hulu.
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the companies that are going to suffer from the skinnier bundle are the second and third tiers those are the ones to watch. in that report, they pointed to companies like discovery as potentially being cut out of that skinnier bundle so, those are the companies that are going to suffer, but the hulu's owner, disney or 21st century fox, they're going to make sure they get paid the same if if you're subscribing to the tv bundle rather than comcast or charter. >> julia, thank you. in los angeles grasso, how do you trade this? >> got to go to amazon or google it's starting to become another option cutting the cord myself when you start to get live sports and live tv. it's not as if you're watching live tv anymore. you only care about that for sports people dvr >> exactly >> people dvr this show and
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watch it later at night. so i don't think you need a whole lot of live tv other than some newsy events. >> you were watching live tv until last week. >> i still watch live tv >> amazon prime thing. the fire stick thing bk loves it. not so much. i like live tv i like the randomness of live. so, to me, i like something that's happening right now, so you know how i trade this? the end of twitter it's an underappreciated space and i heard you. congratlation yourself i go back to viacom again. there are brands there that are regaining momentum they will pay for it somehow and whether there's value there, disney is already, it's not h y hulu, it's >> count them out, but you have to ask yourself what's the right
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evaluation for disney and what we find ourselves in, i don't think it's 17 times forward earnings, but i think they deserve the premium if tem to to the space. with that said, the stock has not traded well. >> quick note, next week, fast is going hollywood not hollywood, florida we're speaking with key names from tinsel down including mitch low, michael burns and jeffmy pavin. you don't want to miss these interviews shift iing from la la land to armageddon someone might say they're in the same place get to your nearest shelter because ek perts are saying that ab asteroid may come close to earth this come week four stock picks that could destroy your portfolio before the world ends these are stocks just to underscore this, that you want to avoid, tim. >> snap. a lot of people exposed to this asteroid no way >> for me, it's amazon is the asteroid heading for that. >> hasbro has outperformed them.
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that will continue >> coming up, it's going to be hot with cbw they got a lifeline at the end of may i don't think it's enough. avoid htz. >> that does it for us here on fast see you back here on monday. options anchor starts right after this quick break oughnut. oughnut. right away, it was a success. i mean, it really took off. what people don't know is that it all started with points from my chase ink card. i bought the ingredients, utensils, even custom donut cutters. wow! all with 80,000 points. what will you create with your points? learn more about the ink business preferred card. you're searching for something. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if there was a single site where you could find the right hotel for you at the best price? there is.
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we're live at the nasdaq market side on a hot summer friday breaking the market. relax. there's one dow stock that's setting up for the perfect catch up trade wooechl give you the name plus, nike's set to report earnings do you know which way the stock is going to go there are some interesting options trades that might shed some light break it town. and talk about hot in the last two


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