tv Fast Money CNBC July 6, 2017 5:00pm-6:00pm EDT
>> we did a beatles and michael jackson show now, we have this amazing pobty to grow at a rapid pace. >> congratlaces. how about a round of applause for the guys behind me thank you, everybody, for joining us here on "closing bell." "fast money" is next >> mu"fast money" starts now. your traders are -- tonight on the fast, the worst performing dow stocks this year could be the best deals in the market for one big reason plus, the ipo market is making a comeback this year for the hottest cities in the market could be stairing investors away and late e tesla entering a bear market jean muster says its model 3 is about to change the world. but first, we start off with what looks like a whole new
market the major indices selling off today. those losses accelerating into the close, falling about 1% with the nasdaq getting hit the hardest. wasn't just technology energy and health care taking it on the chin. this as high er rates and soft data sends a chill lew investors. simple question to want, with toks at one lows, is this the dip you buy or has something changed? >> you know what, i don't think something has changed dramatically about this rally. we've talked to death about what's happened with interest rates. the only thing that was different today to raised an eye breaux boroureaux was the financials with rates where they are, you would have thought they held up. that was a warning signal, but i think there are some places you want to look in tech that you might want to start picking some stuff up here. >> to me, the only place it's safe is in the banks i think you have a valuation fundamental and rates moving
higher i said this ten days ago, the of international sentiments said things have to change and almost said you're behind the curve ever since then, rates have exploded, especially across europe banks to me, which have been around an enormous part of market pressure, you have seen the yield curve. banks were cheap going into this, but right now, bleeding end of the credit. are you getting slower fwrout? that's okay for banks. >> 24.3 is the 50-day moving average in the s&p cash. we've seen a month ago, two months, we banged around here for eight or nine days. rally from there i think draghi is the only thing that's changed reflation havversus deflation not because of growth. you tell me what's happened about inflation that's changed the economic data. there hasn't been anything why the market spooked is it buying opportunity not for tech >> because trs no sign of
inflation yet rates are rising >> rates are rising. makes it difficult to be buying tech i think you want to be b a buyer still of financials, still of energy although tough day tr crude. it makes it tough to buy it. but it's down 12%, xle xlf had made up ground all right. that's a lot of ground baked in already. you could see plat flattening on the buy side >> i absolutely love the reaction of the banks today because all day long, they were virtually in the positive. did lip late when you consider where the banks were a week ago and where they are now and they only barely pulled back maybe half a percent, i think that says a lot about what people think of the banks and where they mightwant to have their money right now. they were still holding on to some of these names. i i still like the space we see paper in there every day.
including today. o. >> rotation, back half of the year when you have xlk up 13% or so and you have xlv up 16% with a lot of the regulation sort of out of the way and put on the back burner. what dupg the next 10% is going to be b? more in xle, xlf to a certain extent. >> the problem i have now is energy everybody's been trying to pick up and nobody's been right yet mark fibber was on today he said the only area you could look at is is naturcural gas it was more of a sooner or later, natural gas will perform. >> i have a question why do we have to assume there's another 10% in this market that's a question for tonight. >> that's been the way >> that's where the rate's coming we talked about the price you will pay for stocks given a
certain level. as interest rates go up, you are less willing to pay those higher multiples, so that to me why ultimately, the higher rate rs a problem in the the market. >> how much higher can they go >> you tell me i don't think they're stopping here we might get a pause but it wouldn't surprise me they were 3%. >> i definitely think something has changed. basically, they're saying it doesn't matter growth isn't strong we're going to do what we have to do to normalize again, we're still in uber accommodative central bank policy that's a different thing equity markets haven't lost central bank put for seven or eight years. you're telling me that's over? i'm telling you a lot has changed. >> you don't think there's concern in the market that with everybody, four of the five largest central banks in the world essentially say iing thatw are quoing to ease up on monetary, that things aren't a little different >> we know how that's going to
come out >> why is there a 10% or perceived 10% higher >> why do we have to believe that >> if trump gets tax reform passed or if health care, big ifs, those are game changers that's probably -- >> i'm not betting 10% on policy >> hang on hang on. they have. they have. >> are you betting 10% from here >> you could have said that when it was up two, three >> i didn't. no, but you could have >> but i didn't. i could say a lot of things that i don't. but i didn't you're here now. >> you said to buy technology. that's the place in the market where -- let's talk about a trade versus investment, you look at something we're going to talk about tesla later that has come down 20% in a
week that's some place i want to look to pick something up for a trade. which might last for another week or so >> the reason whey technology has outperformed so much is because we've been in a world where growth hasn't been as strong as people believe if you change the interest rate dynamic dramatically, there's no reason to chase technology here. and in fact -- >> not chasing it down 20% i'm not chasing anything >> i don't know what you're doing. >> i'm buying. >> trade >> i'm buying for a trade. >> it's 40% year to date >> you want momentum on your side >> come on you buy the ditches and momentum names. >> i end up agreeing with brian. you and i very rarely do this. you like financials and technology i'm looking at technology. i think you have to look at the
10% pullback just said he rarely agrees with you. if you've got something close, doesn't have to be -- close, i still liked them at those levels from a growth standpoint, we just got or cacles earnings it trades at the pe that it does >> i think apple is a tougher call here. two quarters away from where you're going to get any real news on the stop before you get into the best season of the year we made it two weeks ago when they gave us those numbers you're betting 23, 24 times as you're getting with sales force 150 times, so there are stocks to play where where you're
getting this, but to say tech's down 5%, making lower lows in an environment where people with still where we are >> i'm talking more individual the individual names >> a lot of people are obviously inv invested >> passive investors >> which is a mistake. >> sounds like you might be a little conscious >> my view -- if you look, these aren't blow it out the roof numbers. >> durable goods, the only spot you've seen it construction, but certain -- not telling you you're going to get a universal wage growth. >> let's settle this with the
charts, fellas off the charts with todd gordon of trading analysis.com. >> yeah, i put the bk trade on didn't even realize it to start, i have two long positions here, so i'll lay it out for you to start though, here's the s&p 500 and nasdaq nasdaq is in blue. s&p in orange. we have a clear diversion. the nasdaq has not made new highs where the s&p has. we've seen a big underperformance with technology namely apple can't get off of the 140 area. i think though however, this unz performance of tech has completed, begun to come off those lows i put nvidia on today. options are very expensive high volatility in the chips. i sold chips, which is a bullish position i think this underperformance is over if we then take a look at the s&p 500, this will just go back about three months we can draw a line around the 2400 mark. we have not broken through this support level even though it felt scary today it was a summer market
very volatile. very thinful we have earnings coming up and nonforeign payroll. feels a lot worse than it is i think the financials, went long goldman sachs, they look great. i don't see a stock market dropping significant through through this technical level with financials on the highs >> what do you see for rates, todd with rise rates, it might be difficult for the markets. are you seeing a bounce lower for rate sns. >> it's been such a directional move higher in rates mostly lower and bond, but i'm not seeing response from the currency market and to kind of tie that in, if we're getting rates lower to the rest of the world, i want to see a dollar to the bottom we're just not seeing it so here we are we have interest rates moving higher a beautiful little pullback here it seems to be b this global uptick in rates. i think it's just a little bit of a taper tantrum ahead of earnings and ploim, so it's just
a summer little move lower i think. >> all right todd, thank you. >> it was not an insignificant event for the markets. it was a, a period for markets in june of 2013 that took four months to play out steve talked about key levels of the market so did todd. we get to a place, close below 50 for the ninth time since leches can't tell me the market isn't under pressure >> it is and you've got to watch the 50-day moving average. i thought when we did the retracement, 2450 was the resistance area. we saw a bounce around that level. you've got to watch the 50-day if we don't make it out of this week, with that 50-day holding, the market's going a decent chunk lower. >> what did you do today
>> amd i talked ab bt the chips earlier and some of the performance, but mike ryan extremely active when you look at technology and get the numbers like we got today, unbelievable. demand is there. these names ar spoesed to >> i want to move next to pete we're buddies ton. gl flip-flop nd a bear suit and here you are welcome aboard >> i think amd looks great i like the action in nvidia today. in the tape like this. that was kind of nice. so those are the places that i think you want to look >> both currency plays >> both kryps toe currency plays. >> i've been below for the second time since the lows of december i clicked some off again
he's going to react first then later. i don't care this is the same thing as it was in other rate scares, but been probably the best performing class could go down >> when you're long something in this mark, you better have a good reason. there's a lot of passive investing guys, but i'm long monosan monosanto, kb homes. there's a housing recovery that's why i'm long those stocks square has a bunch of different level levers they could pull sq monosanto. 11% upside >> real quick on top, the ee measuring. huge put buying in august. a put spread to the downside, so somebody b expegting maybe a little further >> coming up, could president trump block one of the biggest media deals of the year? a juicy nugget in "the new york times" has vinvestors nervous. plus, the two hottest ipos of the wreer struggling to stay afloat could it be a warning sign for
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welcome back we've got news alert on qualcomm's fight with apple. >> over the past few minutes, we have seen this news cross. qualcomm hitting back at apple with a dual pronged approach, making a complaint to the international trade commission, arguing for a ban on the importation of certain iphones this is going to be a subset of overall iphones, many of which do not have qualcomm's modem technology in them a statement from qualcomm from executive vice president and general counsel don rosenberg reads in part, the patents we are asserting represent six important technologies out of a portfolio of thousands each is vital to iphone functions. apple continues to use qualcomm's technology while refusing to pay for it apple on the other hand, they've just rereleased a previous
statement. old dis but goodies, reiterating their illegal business practices are harming apple and the entire industry for years have been demanding a percentage of the total cost of our product. interestingly though, this particular argument that qualcomm is crafting, seems to be framed specifically to combat this because this is not about the modem. they've asserts six patents that don't have to do with the modem. so apple and others can't say see, they're using their power the fact their technology ideas were built into standards to try to bully uz. these aren't standards they don't have to do with the mode el. support supporting qualcomm's argument we know how you like to squeeze widget suppliers for profits these are technologies that allow performance to be high while also con serving battery
live, which we know consumers are interested in. so, whatst the impact if qualcomm wins on this? >> well, this probably suspect going to begin to be heard until august and then it's going to take more than a year to be heard, so no impact on the impending iphone release that we expect to see in september. and plus, when these bans even do go into effect, they tend to be maybe less fireworks and more whiz bank poppers. we've seen scisco win a case against networks, but companies have some wiggle room to tweak their products and perhaps not be in violation of certain patents or settle before these rulings come down. saying that in the past ten years, it's om brought a case like this once before that was last year and it was settled before the itc made a determination, melissa >> all right, jon, thank you on the fight between qualcomm and apple.
presumably, if this is going to take that long to hear and figure out, then that hold left on qualcomm's balance sheet with with revenues that it used to get from royalties from apple, which they said they're no longer going to pay, which they aren't going to pay, that will remain unfilled, so this really doesn't change the story of qualcomm >> and if you look apple, jon's right. this is such a long, drawn out thing. t not really affecting either stock in any way, shape or form, really apple specifically is still sitting there and it's, i'm look ing at it now, i think it's trading flat there's no reaction now whatsoever i would love to see a reaction because whatever reaction woul probably be an overreaction and a buying opportunity for sure. zpl i think on the year to date basis, qualcomm's down apple's up not necessarily having anything to do with this. >> the level now as -- i was sort of getting, i do think it has to do with it on a macro basis. a lot of other moving parts, but
the market has picked apple, so if you're making me pick, which you're not. >> would you rather? >> apple because we know, always talks about it the level 14 t2. apple is buying apple. it's a monster buy back. >> for qualcomm, how about the -- >> i think it's the key in the driver and i don't think people are giving them the credit they're going to close this deal i think the news is in the price and it's a lot of bluster by both sides i think thai going to get this deal done. it expired apple needs qualcomm i know it's hard for anyone to hear that. they can work with intel, other people and they will >> from one battle to another, president trump's hatred for cnn could throw a wrench in the time warner deal. in an article, "the new york times" reporting growing tensions between president trump and cnn could put the $85 billion deal in jeopardy
the piece calling trump's disdain for cnn a wild card as the justice department mulls the merger this comes as david "faber report"ed today could close within 60 days >> this is unprecedented in term of the plitization of our media in this country and it's frankly very scary, except for the fact that i think you have to give people the ability to see through what part of the media and both sides, i think there's a clear case to be made for somebody overreaching. tink real issues is that they traded to levels on valuations that historically significantly higher because people are expecting them to move into higher territory immediate yarks con tenlt tent et scetera part of the reason why at&t and verizon, they killed each other wireless and broad ban that's the biggest problem for these stocks now this deal i think will go
through. >> it should be free and fair markets. it will impact that could evaporate quickly if you have unfair markets. >> i think if a deal goes through, it's probably 6% to the deal price left in time warner i'm long monosanto 11% to the upside. nxpi is already in that's 110, so not much juice left in the tank there but deal stocks are still there. those are the fundamental reasons there. >> do you see options activity that would int kate this deal to clo close? >> i was studying that the last little while no people seem to think this deal is is going to get done. >> all right still ahead, one o f f the big bank setting a winning streak today, we'll give you the name and trader later this hour
here's what else is coming up on fast >> tesla shares are in free fall, but top ten -- says now the time to buy. plus, the worst performing stocks h the dow have some of the biggest dividends. >> it's a trap maybe not. because one of our traders sees o btedo sckn wnto he'll give you the name when we return
earnings next week the market is is finally showing signs of life, but the two most highures of the year have been disasters first, tesla's terrible week continues. the automaker officially in bear market as of today phil has more on this developing story from chicago hi, phil >> you know, we thought at the beginning of this week it could be a big week especially with elon mus bk tweeting out we're beginning production this week a will the of hoopla around those. well, guess what, it has been anything but a great week for tesla shareholders, the stock is now down more than 20% in what people would call bear territory. you're look at couple of other questions. one, goldman sachs saying are we seeing a plateau in the sales o f model s and x and then you had model 3, production begins
tomorrow there's a lot of uncertainty about whether tesla will be able to meet the target as i mentioned, model 3 production, the first one, is skred scheduled to be finished tomorrow that's the first completed model 3 with delivery starting on july 28th, but this brings up a broader question b about production from here over the next 18 month frs tes louisiana ev demand grow as fast as forecast? yes, they say they have well over 400,000 reservations for the model 3 and that they plan to make 500,000 vehicles in 2018, but keep in mind, we are looking at a market where there's more than a few people that are skeptical that the market will be as robust as what tesla has forecast, so as you look at this, one last thing to keep in mind, we have the folks at our partner in kensho crunch the numbers in terms of when tesla shares have fallen at
least 15% in one day, what happens aftera wards it's happened over the last couple of days, but it's happened three times since tesla went public and in all three cases within a week, the stock rebounded on ovrnaverage going p more than 11%. i would not be surprised if we see a rebound from here for tesla. maybe not back up to the heights we saw just eight days ago, but it does have a history of when it has a big sell off it starts to regain some of that momentum over time. >> yeah. all right, phil, thank you from chicago you bought some tesla today. >> i did i didn't buy it today, but around 300ish, around these levels i'd be looking to buy. you have something that's down 20%. the markets decided the focus for this short period of time on deliveries i didn't own this stock because of the car company aspect of it. so at 300, i've got a good risk reward, i'd buy it >> that would be a trade for bounds >> probably at this point, a
trade for a bounce i'd have to see how the news foled out. if for some period of time, if the next quarter, everybody's going to focus on car sale, you probably want to step away >> you know this is going to fold out people focus on that >> well, again, people forget also, the battery production was second quarter head wind the news that seems to fall out seems to at least confirm over and over again this company is not hitting any targets. that they earn bigger. >> i don't think it does >> they are manufacturing the first model 3 on schedule, they are going to start delivering. just for pushback, they have confirmed things are on schedule >> july start. but you're going to get 500,000 cars by 2018 i don't know this is a company that's burning an incredible amount of cash. it seems like every time things get less in terms actual delivery, literal delivery, elon
musk -- he's out there saying all kind of things >> we don't agree on why it sold off. i don't believe it had anything to do with that. that was a reason why everyone would b point to it f. you chart the xlk, their identical it's trading down with tech, on rotation if that continues, it goes lower. >> it's down 13% in two days >> it's a higher beta. can't tell me a bad miss on second quarter >> also outperformed the nasdaq by a certain percentage. >> because of the fact it's a disrupter, it's going trade more volatile >> it trades off on a larger percentage if you look at the hundred day moving average is 306.70 it flirted with that, broke it as long as it holds that level, that pop, that next resistance is 338 that is the 10% move >> all right, despite the terrible week, gene money center says the automakers upcoming model 3 could be its saving
grace. gene, good to have you >> hi, melissa >> this is a really interesting note because you compare the mod l 3 to tesla, to the iphone and apple. in the iphone completely revolutionized mobile computing. what does that mean for tesla because some might say the model 3 could revolutionize ev, but tesla may not be the beneficiary of that. well, they're a light year ahead and a distance ahead of the competitors. volvo says they're going to do ev doesn't mean anything they've got so much work to do >> they're a niche player. how about mercedes, audi, bmw gm all the other automakers >> that's a labor they have to deal with. they have this legacy supply chain that's been a gravy train for them the battery is a third piece, so tesla is is ewe neeblgly
positioned to capitalize on this chip and i want to emphasize that the shift isn't just to ev. it's to autonomy elon musk has said every car that sold today with a free software upgrade will be b fully autonomous in two to three years. it's hard to believe, but compare that 13% differential in cost between a toyota camry and a car that will be electric and autonomous in two to three years. i think it's a no brainer. this car has the potential to really ignite the shift away from traditional auto to this new paradigm >> meaning it's 13% more costly. correct, over a toyota camry >> that's correct and we were conservative on that, too, we didn't include federal and state tax credits because they're going to be burning off in 2020. there's another factor here. tesla is going to have a fleet and allow you, if you want, to give you car back while you're at work during the day to even earn money so that's why this car is an important part of how the future of transportation is going to
play >> you know what, the bears will say it sounds like you're drinking the kool-aid. this is a cult stock like any other cult stock and you're crediting the company with things that are not part of the business model so how do you put the fact or the hope that owners will be b able to put their cars back into a fleet and earn money while they're at work? how do you put that into a model here how do we know what tesla is worth? >> we don't have that in a model. in our total cost of ownership exercise that was at 13% difference that's something that is that's drinking the kool-aid, totally agree. what's the sub tans stance is, the battery technology is is a light year ahead that's a critical piece to it and second is what's happening around the workforce that's something that's hard for traditional auto now, it also mentioned is we move to autonomy this isn't drinking the kool-aid every model a tesla has driven today is giving them more
insights, so, i think that's the substance that makes us confidence this car is is going to be a pivotal moment >> i think the miles driven. people don't think about the data that's just accumulated and believe the data gives tesla, but going back to labor costs, doesn't it cost more money for tesla to buy to make a car than for gm or ford to make a car >> it does but the gm and -- >> that's going to dif wrennuate? >> but the gm and ford cars, they're combustion engine, haven't change nd the last 100 years and it does cost more. but if these other man fufacturs were going to build an electric car, it's not dwoipg to cause 42,000 like a model 3. it's going to be 1 is $00,000, so yes, they are losing money. that's a problem but if you believe in this paradigm shift, they'll make it up in scale over time. >> thanks for joining us >> thank you >> gene money center, loop ventures yesterday, we had a
robust discussion about tesla at the top of the show. 18 minutes we asked you guys out there whether or not at that moment in time, you'd be more inclined to be long or short tesla here you have it 57% of you said you'd be more inclined to be b short >> right thing to do for tonight. >> for today that was a good move how about for tomorrow >> pete, yesterday, you said you'd be inclined to be b in tesla a total drawdown of 15 or 20%. we're there. >> talking about 300 you were talking about $300. that makes sense i think what gene say ss the most important thing he was outstanding when he was covering apple for so many years. now, he's out on his own i think the fact he called this a software company selling hardware is exactly correct, by the way. one of the things we discussed last night, it's more about the gig factor there are angalysts who give tht a $50 billion valuation. the automobile part of this thing is not trading at a
premium. because of where they are trading now in terms of the market cap so i think there's plenty of opportunity going forward. now, it's all about deliveries in terms of what he's talking about where the hardware side ch he was focused and you had a guest on today they're focuseded more ton deliveries, i'm not. i'm more on the batteries. >> batteries are hardware. buy apple. because apple is going to be in the autonomous car, too. >> why can want you have both? don't you think there's an extra torque that apple doesn't have >> probably have both ways though >> we get to a place where we assume no one else is going to compete in the space >> the maker o f the ford pinto is not going to compete. >> one other car is out there. what about the gm bolt that thing is u ugly a brand-new car. >> who cares what it looks like?
>> really? come on. >> that was the whole reason why tesla -- >> finish your thought, tim. >> ford and gm while obviously having first sustained a pretty tough run for their stocks, are spending a lot of money to be in same part of the business. it's very clear that tesla is significantly ahead in terms of what they're doing in autonomous, but you can't tell me that the competition, think about what happened in the auto industry with the japanese in the late '80s. should you be trading at an absurd valuation for that when they're not even -- >> that goes back to the automobile >> five different people get five different answers is that good or bad? i don't know i don't think it's good because in fact, the reason are buying the stock, most people got to this point is because it was an auto company >> that's what i'm saying. it's being valued as a tech company. when you could get over air.
>> that's clear. very clear >> because the tech technology is trading down. >> 2%. >> we already discussed this it's a higher data >> we could go on forever. still ahead, remember the biggest loser this is year still shelling out money to shareholders, but are these bargain buys really worth the risk more "fast money" still ahead. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value.
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welcome back a news alert >> they say the recent cyber attack will shave off 3% off of o second quarter growth. they've beggiven the timing, despite our best efforts the ship and invoice during the last four days of our second quarter at june 27th global cyber attack that impacted several companies including mondelez >> sounds like this is something that pushes those orders into the next quarter >> until we think of this as a
secular issue for a lot of people, i think for them, it's a story of a stock that ran up on consolidation in the soector. they got way ahead of themselves the whole foods deal put a lot of pressure on them. the stock is 9% off of highs i wouldn't do anything to this >> i think thest a no toucher, but you're probably going to have other companies it's a big number. to me, it was shocking when i heard the news, but remember, mares glides, wouldn't be able to ship a lot of goods here. i'm surprised to see other companies dom out with this morning. >> investors may find value in the index's biggest laggards here to el us why is a man who's never a downer hi, dom. >> well, melissa, i don't enjoy being the bearer of bad new, but some of the best dif depd stocks are some of the worst performers
a big part of the story that many are an out of favor sector. you take verizon, those shares hit a 52-week low today. they're down 18% so far in 2017. and the yield there now 5% ge's been on a down trend over the last year. hit a fresh 52-week low today as well it's down 15% year da it yields close to 4% there no surprise energy stocks like exxon and chef rorn on that list both have lost around 11% this year and of course, big blue, ibm still fighting to convince investors its turn around plans are working. it's down about 8% this year and yields around 4% as well now, if you're a glass half full kind of person, maybe you look at this downward move in prices as a way to see about getting more attractive dividend yields. in fairness, lower prices did contribute to the fact many of these stocks are even higher up on that yield screen, so melissa, these are dow stocks with dividends
generally safe, so will traders use dividend yields as trade or investment time k factor we'll save that whole con v conversation for a later time. >> thank you >> buyer of any of those names steve. >> yeah, i would buy exxon chevron. i would start nibble there the worst, i know every time you try to pick a bottom in the energy space, it winds up killing your portfolio, but i believe you're going start to see these names tick a little higher as you see by the performance dom gave us, it's easy to lose that dividend. you're down 8% for a 5% yield. doesn't make sense >> if you have a play oil -- >> take a look at exxon most of the decline in exxon came during january and for the rest of the year, we've traded sideways with about $80, so if i'm buying something purely to get paid the dividend, i want something near its low for the year trading sideways and relatively lower risk so i like exxon, too
>> general electric, pete. i know how would you think. >> i thought that was overdone overstated >> makes good points the reason i wasn't in it was management was frustrating me. they made the change that needed to happen. i understand there are some activists in there that don't have a big enough stake to really move the stock around most likely, but i think at least, we have seen the start of a change i look at one of the other maims up there ibm. until there's a management change, i think it's a difficult stock to own >> that's why you don't own ge >> who said it was a quick fix >> tim, nobody said there was a quick fix. i'm saying the stock has been punished because of the management that was there. and at some point, the reward will be b there. this is not a trade. this will be an investment >> i think ge is a great company and have made some poorly timed bets into energy and chased
emerging market, but when i think about ibm, this is a massive company. they had to reinvent themselves and it's taken a long time no quick quick fix at ge wu i think the way they allocate capital could be different over the next couple of years ie, fewer buybacks >> they have some incredible assets they could sell off because i think part of the problem is that management got too wide they're in everything. there's nothing ge doesn't do it seems and that's mostly their problem. they don't do anything great >> shift gears, jpmorgan snapping its streak, but some are betting the bank's run isn't done yechlt hey, mike. >> reporting next week, normally jpmorgan moves about 2.7%. that's approximately what the straddle that expires next friday is implying for the stock next week. there's still a lot of time to
trade it, but we saw above average call activity today and what we were seeing was buyers of 94 strike calls, paying 1.30 for those. those are bullish bets going into the earnings number and actually, at this price, i think those are very reasonable price bets if you're inclined to make a bullish bet >> you like the bank >> do you like the jpmorgan b k bank >> it's not horrible i prefer the regional banks just because i want to be away from the trade iing part of the markt just because we've had no fairly little volatility here, but the chart was great on jpmorgan. >> it's the best bank out there. they really are. and i know karen loves, jamie dimon thinks he's the best ceo out there and he might be, especially in the financial world, but i think most of these financial banks are the place you want to be when you look at where they trade, i still think there's opportunity there. i saw that paper mike was talking about today.
that's reason enough >> thank you, mike for more options action, check out the full show tomorrow 5:30 p.m. eastern time >> mike must be getting hungry he's not been at the chinese restaurant >> at least a week >> coming up, call of disaster newly public blue apron tanking more than 8% today 19% from its wall street debut just last week is this casting an ominous cloud on the ipo market? we'vgoe t a special report more "fast money" coming up. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade
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welcome back the number of ipos in 2017 were up because numbers may not be the whole story. let's get to leslie at the new york stock exchange for more on this >> hey, melissa, that's right. we've seen 91 companies debut on u.s. exchanges this year, raising about $28 billion, that's more than double the 42 companies that went public during the first six month of the last year. that generated about $8 billion, so, yes. those numbers show a rebound, but more important for the ipo market is is performance of recent ipos. here's why investors who generate alpha from an ipo are more likely to
participate in the next one. with the performance so far this year has been a bis mall on average, ipos return ed 10.6% that's about one fifth the returns that ipos posted on average during the first six month of last year in fact, it's the second worst performance going back to 1995 and day one has been the worst of any period that wasn't a recession. some high profile ipos are among those that israelfizzled. snap shares are only up 1.8% and blue apron, the male kit delivery service continues as you mex mentioned, to decline and is now down almost 20% pr its ipo price, which was well below its initial marketing range. this shouldn't happen in the current environment. the market has been rushing record highs for months and volatility is low. the key challenge in the ipo market that few people admit is
that a lot of these so-called unicorns were mispriced in the private market then when they wanted a higher valuati valuation, investors weren't willing to pay up. >> thank you from the new york stock exchange i also feel like there's a certain amount of skepticism that met these two high profile ipos before they went public, this is very different from what we saw in the past >> and i think the market has to be higher. snap is still above its price. that has been tremendous support. blue u apron is a totally different beast. that's in a world of hurt. you have to have the right nichey ipo, so i wouldn't make blanket statements, but if the market finds its sea legs, ipos come back. >> what do you think, pete
>> blue apron, they're going up against amazon, at the very beginning, with the deacceleration of what they've been seeing and who are they going -- into the ipo. really difficult >> is it a coincidence, down 20% sin since guy's shrimp dish on this show needed a little salt he did a great job >> he's great. >> looks good. >> so, the other part of this is they talked about the private, guy should stay away from both ipos >> look like the grim reaper in the stock. the other part of this is the private market is different than it used to be. you have fidelities of the world
nvidia >> be defensive. iyt valuations and a better chart. >> thanks so much for watching see you back here tomorrow at 5:00, "mad money" starts 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 i'm just trying to save you some money. that's my job. not just to entertain you, but to educate you call me, or tweet me @jimcramer. market can be a brutal task master when you own stocks, you need to be worried eve