tv Fast Money CNBC June 27, 2018 5:00pm-6:00pm EDT
>> i'll tell you my secret for making sure you're the favorite parent, but i don't want do that publicly. >> very important. i also think the world needs to know about nap chat. when you're ready, michael -- >> school lunch napkin note is going to get out there. >> thank you. >> we will miss you and please don't miss us. thank you for tuning in. see you in five months. "fast money" starts now. "fast money" starts right now. live from the nasdaq marketside overlooking times square. i'm melissa lee. tonight on "fast," financials posting their longest losing streak ever and its make or break time for the group as they head into a crucial test tomorrow. could it be a no win situation we'll explain. it's a "fast money" first, the man, the myth the legend, william shatner will join us and get this, he's exploring the new financial frontier, bitcoin, as spock might say, logical. you won't want to miss that.
we start off with a trade war chaos and it has been a crazy week as white house trade director pete navarro attempted to soothe the markets and press secretary jumped in refuting some of those statements, trump then spoke up and said there's no uncertainty and then this morning, secretary mnuchin chimed in to soothe things up again. they were up and down and up again. our own bob pisani is -- turn that off and move away from all this trade chaos and uncertainty for just a second. here is what we do know. three main things. china's in a bear market. the yield curve is as flat as its been since 2007 and the fed still in hiking mode. if those three things don't change, are we heading back to retest the market lows of the year guy? >> the s&p, the market low was 25 or 35ish months ago. to test that level again would be devastating. i don't happen to think we're going to do it.
i think the market's had every opportunity to get down with those levels with the merging markets down considerably. with china in a bear market, we haven't been able to do it. today was a lot of noise, a lot of tariff noise and a positive comments out of the white house gets this all back. to me this is just noise. with that said, i do think the fed and we talked about it for the last couple weeks, they're hawkish tone, that wednesday at two and a half weeks ago is the biggest concern in the marketplace. >> i think -- i look at a market which is outside out of technology. look at the semi-conductors. intel looks like a chinese stock. it's down 16% in 17 days or something like that. i'm seeing lower lows for the rest of the market. the financials, the industrials. the dow is through the 200 day and people have rejoiced at how well, it's bounced. i don't think we've really been able to clear that and i look at the treasury curve in the ten year and you can start to make an argument for maybe we'll ask
our chart guy later, but a head and shoulders on rates that tells you things can go lower. the trade ranker, it's absurdly complicated for something that's already complicated when you get five different people saying five different things. >> today the action was different. we closed on the lows of the session for the s&p 500 as well as the nasdaq and as far as the yield curve, we went sub-32 basis points in terms of the spread between twos and tens. we haven't seen that in more than a decade. >> look, just to get back to the trading action today. we did close in the lows. we're closing right on support for the s&ps. i look at it and say, we're headed into a very, very, you know, long week of vacation. the risk tolerance is incredibly low for the institution. that sets up for a little bit more fear in the marketplace. today was a cluster of mixed messages and we got them across the board. the one thing the market hates is uncertainty. i'm with guy, it would be a disaster if we went back and
test those lows. i don't think we will. there's a setup here. the chance we do unless we get a clear message about what's happening regarding trade. >> we saw that this week. >> that's going to have to play out over time. we've got more volatility in the market. it started to come back out and right back in once again as we flipped in the second half of today. it's interesting to watch as obviously you talk about noise. this has been nothing but noise and having to navigate around that is not very easy. if the desks are thin, if trading starts to get thinner as we get closer to the holidays that does set up for some more lows potentially and that's concerning. again, if i like the fundamental stories of some of the companies that are getting swept down at the same time, i think there's opportunities. >> how do you use this dip to buy? >> i have bought a few things recently, absolutely, but i am definitely somebody who's looking at once, twice, three times, four times. do i think this is going to go lower? >> next week and a half is
tricky. next week we got the holiday. we have a jobs report on friday, too. what do you do close your eyes? go away for a while? >> you love to barbecue, by the way. you would be checked out, otherwise, right >> first of all, just so we all understand, i can barbecue like nobody out there. >> sounds like a challenge. >> i have one of those green egg things. >> slow down. >> you should come over and check it out. >> i wasn't invited, by the way. >> any way -- please. >> continue. >> i don't think -- i do think the trump administration focuses on the stock market more than any administration to date and i think that if the market does begin to get out of hand, they will waltz back out, mr. navarro or mr. kudlow. whether or not we've reached that or not we'll find out. they'll do everything they can especially with fourth of july week to assuage whatever fears are out there. >> that's the point. we said -- this administration's bench mark is s&p 500. they need to come -- >> i don't think they can control it. >> first of all, on july 6th
you'll get another round of trade sajss just because you have to. they're going to put those things in there so they can have a negotiation period to dial it down. the headlines won't be good. it's getting more complicated, i think we're seeing the business confidence dry up. either way in an environment where the fed was going to overreach a little bit, you have an environment where people are taking less risks. >> we talk aid number number os about the trump put. have we grown so accustomed to it that its losing its impact? >> it hasn't yet. >> we fell. >> for today. >> yeah. >> we'll see what happens tomorrow. each day, obviously, the tweets and everything else, mail comes in and all of those are factors and we have to be conscious of that. to tim's point, are they getting a little bit less? do they have a little less strength is sort of what you're -- >> that's what i think is happening. >> it's weakening a little bit, a little bit. but we'll see if, you know, there could be something that could really turn this thing.
today that flip from the premarket to the market itself and up 200 plus points, that seemed pretty good. >> it did. >> and then we started to see that thing tip back over again. >> for more on what trade uncertainties means for the markets and, let's bring in rebecca paterson. always great to see you. >> great to be here. >> we started off the top that this trade stuff, nobody knows how its going to turn out. if you strip it away there are a number of things to be concerned about in the markets themselves. how do you view the markets and where we are >> you mentioned already the yield curve. you mentioned chinese equities, you had one more on your list. >> fed hiking. >> yeah, that's there and i'd say of those three the one that i'm worried about most is the fed hiking, especially if we get more inflation than expected. oil, we saw today, we had a big rise in oil despite opec cuttin oil. gasoline prices weigh on the consumer. inflation and the fed to me would be the top of the list. the yield curve, if we go back to world war ii, after the curve
inverts, you have had six to 24 months before the recession starts, so i think everyone's getting very focused on this front page of newspapers and everyone thinks, oh, my gosh, i have to ring the bell, go to cash. historically that hasn't been a good trading strategy. and when we look at jobless claims, we look at business and consumer confidence, we're still seeing global growth that's over 3%, closer to 3.5%. second quarter usgdp is tracking around 4%. the recession isn't eminent. we're late cycle. the yield curve tells us we're late cycle and the policy era risk gets larger. >> this seems like it's been a game of giveth and taketh away so we're taking a look at the puts here and the give bangs in terms of the market direction. are we to assume that you're saying that things are sort of on the precipice right now where if the fed does hike that could really hurt the markets? >> the feds going to hike and the market is discounting some
of that and whether we get one more hike this year or two more i don't think matters a huge amount, but if we look at the next year or two years and the fed continues, at a certain point -- we don't know what the moment is, what's the yield where things tip, where it starts to hurt margin updates. we are seeing responses. you guys all saw china cut interest rates in the last few days. it's letting its currency weaken a little bit. it's stimulating, so the second biggest economy in the world is taking some action to try to offset possible trade wars. so it is a push and pull. it's not a one-way street. >> does a recession cause the market to selloff or does a market selloff cause a recession? i think it's the latter but i'm curious to see what you think. >> that's a great question. historically -- we all know this, the markets anticipate what's going to happen and so if we -- if we wait to see nonfarm payrolls decline we've missed the first ten or 15% of the s&p
500 decline. there are leading indicators to watch. we're all talking about the yield curve, business/consumer confidence for sure. that's a biggie. it's still holding up pretty well. if you look at pending home sales -- forget the home sales data we saw today, penting home sales, architectural billings, what people are planning before they break ground. there's leading indicators that tell us when it's time to start derisking more. i don't think we're there yet. once you see the data start to rollover, it exacerbates the market selloff. this next one's going to be nasty because of algos and the influence of exchange traded funds, i think it might not be as deep a recession but it could be a very fast equity selloff into the recession. we're not there yet, but when it comes, you don't want to be late to that game. >> last quick question, what sectors you like the best in this environment >> so that was pretty, wasn't it. i just did that on live tv.
i just save that for my children. we have been building since last fall and over eight position in commodities and energy equities and added some hard commodities to our portfolio in january this year. late cycle has a hedge against inflation. i like that position. we are overweight technology right now. that's today that didn't feel so good, but i think there's a bigger structural story there. i'm okay holding on to that, although i do worry when we finally see that suspended bear market, it's such a crowded trade, are we going to have a washout at least for a period of time >> rebecca, thank you. >> great to see all of you. >> pete, what did you do today >> the only thing i did all day long was one trade, conocophillip. it took me a long time to decide whether i wanted to jump in there or not. that was it. energy continues to just look so strong. it's been impressive to watch some of these names and we've
seen nothing but energy hitting into our system, so that's where i was today. >> interesting, even a free port mac mac or trade war is very positive for commodity prices. i think some of these minors, a lot of people were not in this trade and believe it or not this is a safety trade right now. you stay with it. >> boeing, buying boeing. i know this is the poster child for a trade war. it's pulled back -- >> i don't think so. >> it's not a trade war stock. >> it is a name in my opinion, china needs boeing. they have a backlog of seven and a half years. you got nine and a half years. they can't just pull out. they need to buy boeing planes. that's not going to shift. by the stock in weakness. >> great segment for us, trade war stock or not. >> the reason why i'm not trying
to be overly pessimistic it because some of these retailers hang in there. you have to find the good within the bad. the top technician says bitcoin is in no man's land. he will tell us the whole crypto universe is watching. tesla ceo elon musk taking his trolling to a new level and his next target gas. we'll tell you what his words could mean for the stocks. there's one energy stock that's about to break out to even higher highs. he'll step up to the plate and give us his fast pitch. we're live from times square. you always pay
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welcome back. tesla ceo striking back at all the tesla haters telling anyone who doubts the company's model 3 delivery expectations that they are in for a rude awakening. ft. lauderdale with t phil lebeau with the latest. >> that was regarding a note from goldman sachs where the analysts essentially reiterated his sell rating on tesla and here's the logic as far as goldman sachs sees tesla. they eligible model 3 deliveries will disappoint.
the analysts says the production rate in terms of being sustained at 5,000 per week, whether or not they hit it or not, it's too volatile and one of the things that people have talked about when they talk about that volatility when it comes to model 3 and the production rate there is this video. we sent a crew out to the tesla plant in fremont, that's a tent, a make shift tent and that's where they're doing some of the model 3 assembly work. it's not all of it, but some of and critics of the company have said, that's ridiculous. you can't be building vehicles out in the tent. this is an example of how tesla is just trying to jam these numbers through. earlier today, jean muenster we had a chance to talk with him from luke ventures. he's had a team out there. here's his perspective on tesla. >> tesla's going to produce some where between 2,300 model 3s. elon musk has been out saying it's 5,000, so this is a little bit of a miss, but i don't think that that changes the story here
which is a massiveimprovement of basically a doubling of model 3 production quarter on quarter and i would view that as a positive for the story. >> reporter: as you take a look at shares of tesla, remember the company does report its q2 deliveries sometime early next week. it's usually the first couple days of the first month of the next quarter, between sunday and tuesday. even if tesla does not hit 5,000 per week, i'm not sure this stock is going to selloff. people are to the point where they believe it's so close or it'll be over 5,000 per week that we may not see a big snap reaction purely on the number in terms of model 3 deliveries. >> i think this is the second time that i can at least remember phil in the past month or so where elon musk sort of chided the shorts out there. i'm wondering in all of your observations of musk, talking about the stock up or down, what his general track record has
been >> reporter: depends. he never gets too specific when he trolls the shorts or the except ticks on the company. he will say things like you wait and see. in this case -- he's pretty clear. they're in for a rude awakening, those who do not think they'll hit 5,000 per week in terms of a production rate at the end of the second quarter. so most people that i've talked with who tracked the company closely, analysts as well as those not on wall street, they are coming to the conclusion that he wouldn't have done this and he would not be as confident as he is if they cannot say, look, we made 5,000 per week at least as a production rate when you extrapolate it. now the big question as you guys are going to talk about is whether or not they can sustain that as you go into the third quarter and then build from there. >> yep. phil, thank you. about that gene muenster note, he was watching the flatbed, the enclosed flat beds that shift the model 3s to the dealerships and he came up with a run rate per week of 4,300.
for instance, last quarter they built a fifth of all of the 9,800 model 3s in the final days of the quarter. so they're able in the past two quarters to dramatically ramp production to hit or come close to hitting that number. >> and if they do, the implied question is, what happens if they hit those numbers and my answer would be it's going to rocket through the all-time highs we made around this time last summer which was 380ish or so. what gives me greater concern than all of this and the tents and howard hughs making planes which is what he was doing, he was pretty successful is that tony earlier this month when he said they might be overstating their margins. that's a real concern. that is actually border line negligence, let's just say -- >> counting -- >> the market seems to have shrugged that off. i do think the stock trades higher. >> i think it's going to be about margins.
i want to see what happens when they get to 5,000. i've been outspoken -- not the company, just the share price and the valuation, and ultimately if we have margin pressure here, i think this begins to challenge -- what is the core asset that sets these guys apart it's their data. i think it's the ev side of what they do. it's not their production story. so let's see how the margins are. >> near term's a production story. going long next week based on what he's tweeted and basically stated i think is a no-brainer. the stock's going to go up -- >> he's been wrong before. he's taunted and chided and done this before and he's been wrong. >> with the specifics about 5,000, hitting that number and be careful goldman sachs, that's a real direct message. >> you're saying if he's out there saying this, boy, he must be right and he must know something -- >> there's no upside to tweeting that. >> no upside. >> he could just stay silent. >> he will lose credibility and investors will flee. >> he's done this -- you're telling me this is the first time he's been out there --
>> two weeks ago he was talking about the shorts and how they should be careful. >> where's their track record on deliveries >> you're right. it's terrible. is it a car company or software company and that's what it always comes back down to with tesla. those margins start contracting, that's going to be a problem, but the software side of this thing is why it's valued where it is and i agree with you. i think they deliver, it's going up. still ahead, bitcoin hovering near year-to-date lows and one technician says it is testing a key level that could mark a major turning point for the crypto. you're watching "fast money." in the meantime, here's what else is coming up on "fast." announcer: as markets teter on edge, one group of stocks have gone wild. ♪ announcer: oil and the moves are so down right obscene we can't even show you. but people will tell you how to catch in with one dow stock. plus -- >> gentlemen, beam me board.
>> reporter: you got it because captain kirk, aka bill shatner is beaming on board "fast money." he's got a business that makes money on what else bitcoin. >> logical. >> he'll be here to explain when "fast money" returns. once there was an organism so small no one thought much of it at all. people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel
welcome back to "fast money." bitcoin sill stuck just above 6,000 and that's got market watchers worried that the crypto is about to reach its breaking point. bob pisani is breaking it down. >> reporter: crypto's are having a tough time bouncing back from a really deep funk. bitcoin posted modest declines today but it's been a disastrous month for the digital currency. it's down 18% just this month. not only is there a straight line down trend in place for most of this year. we're near that psychologically important 6,000. now, cryptos will continue to
fall this week. today, for example, facebook reversed its ban on crit crypto ads. some thought that would help cryptos. on monday tether issued 250 million tokens just two days ago and some including lake coin factor charlie lee said this in the past has been a precursor for prices to go up above cryptocurrencies. that's not happening either. on balance the bad news far outweigh the good news. bitcoin fell 6% in one day last week after japan's federal regulator orderered several cryptocurrencies exchanges to improve their practices against money laundering and terrorist financing and who could blame the japanese authorities. there were two break-ins at two different south korean exchanges last week and that's been a blow to security and confidence overall. they've got to get their hands around that one. back to you. >> thank you, bob. our next guest says bitcoin
is stuck in no man's land and there's one key level for it to come back. >> so let's take a look at the chart. there's some key points here. if we go back to the action that we've seen through the late part of 2017 and 2018, going all the way back through '16, higher lows, higher lows -- higher lows here, then we come to this point here right around 7,000 and the last time we were on the show we were talking about 7,000 being very critical support. we're big fans of the 15 day moving averages. we can see all the way through the late 2017 through '18. it's not perfect, but as a proxy for whether the trend is positive or negative it's pretty g. that was one of the reasons when we talked about this 7,000 -- 7,800 level being a very critical resistance level that bitcoin had to get through in order to reverse that down trend, that 7,000 was very important on the downside. what we have now is a series of
higher lows being broken and by definition you're now starting to see lower highs. you have a down trend in place and bitcoin's now below that trend line. this level here, right around 6,000/58 hundred is critical support. it takes bitcoin down to 5,500 and that takes you all the way back to that trading range between 5,000 and 5,500. let's take a look -- the down trends takes us back to the beginning of may. that's the 15 day moving average represented on a four hour chart. here again, that's that 7,000 level or 7,800 level that was so important and that critical support level first at 7,500 and then at 7,000. that's broken. what do you? it's in no man's land from a trading standpoint. if you're a very short-term trader, we have a critical stop level right here. that's just around that 5,800,
6,000 level. and then the key resistance level that bitcoin has to get through is around the 15 day moving average, that's 63 to are 6,400. you have a chance that big coin will turn. until then the down trends in tact. you got to wait for confirmation before implementing long side trades. >> should we invite robert over to the desk? i'm asking you the question. >> oh, yeah. >> sometimes you make a statement. >> you're not answering, so i'm deciding, robert, come on over. bring the chair in. >> he's talking about bitcoin in limbo. we left him out there. >> it's crickets here on the desk. thank you, michelle, for bringing the chair over. it has to rally. bitcoin has to rally through 63 or 6,400. how convincing does it have to be in terms of volume, in terms of how sharply it goes up? >> it's a sustained move. i'm not sure the volume is particularly important given
what we see on the sbechlz. it's hard to see where those volumes are. if we think about what is happening, we have a down trend, what defines a change in trend you have to bottom or momentum has to turn positive, trend has to reverse and that trend has to turn positive and that 15 day needs to turn back up. we're just seeing recovery rallies back to the 15 day, back to the down trend and its failing. i'd like to see it get through that 15 day moving average before i have confidence that you're seeing another tactical shift in bitcoin. >> is there any significance to the 6,000 level because it seems to be holding there? >> it's the february lows. so maybe 6,000's an important round number, but i think 5,800's the key line in the sand. >> is tom lee also a -- your colleague, maybe your boss, does he sell 25 k as year-end target? >> yes. >> you see that in the charts? >> i had that at the beginning of the year. >> do you see that now >> it's going to be tough. i think tom's made a very good
argument why most all coins are in purgatory into the latter part of the year. we're seeing that -- if you look at ethereum, bitcoin cash, all of those are coming down to april lows. that's still -- bitcoin's broken that level but the others are still holding at that key support index. >> where are we now? what's the reading on that now. >> pretty ugly. pretty ugly. i think if you think about the sentiment that you hear either on twitter, it's pretty nasty. people are pretty unhappy. >> we play this game on the desk. >> which one >> we say if we showed you this chart and you didn't know what it was -- >> i was thinking of the same game. >> we're so inside each other's head sometimes. i don't want to know what he thinks, i want to know what robert thinks. >> sorry. >> are you at all -- i don't want to say biased because that's not quite the right word, but are you influenced by knowing that this chart is bitcoin versus it being a stock? if you saw the same -- if you
saw it go up to 20,000 six months ago and then now languishing here at 6,000? >> as a technician i like -- >> you're agnostic. >> i'm agnostic. price is price and again when we talked about bitcoin a couple weeks back. it had to get to those levels. it didn't. it failed. you now have a series of lower lows. you have to err on the side of caution. >> i'm going to ask you that question now. >> i like to think i'm handsome as well. that ain't true either. if you play the game and play the game you want to play, here we are, market doesn't give you the long time to sell the high as we learned in december and it doesn't give you all that much time to buy the low and we've been here for quite some time. maybe we selloff. the selloff in china which is in a bear market, maybe that's effecting bitcoin. who knows? >> you're not a technician. >> the reason i before that up -- >> he's a tara card reader.
still ahead, financials posting the longest losing streaks ever as some of the biggest names in the space plunge. the traders will tell you which stocks they still love and which they are kicking to the curb. it is the final frontier for bitcoin. hollywood legend william shatner will be here in just a few minutes to break down how he's latest crypto project could change the world as we know it. and later pete is bringing the heat with one surging energy stocks that could soar even higher. the name when "fast money" returns. are you done yet?
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welcome back to "fast money." chipotle holding an investor call this afternoon. kate rogers is in the newsroom. >> we're hear from brian nickels with a focus on brand recognition and moving customers through its restaurants faster a few highlights here. the company will be closing between 556,500 under performing stores. this will cost between 115 and $135 million in restructuring charges in the next few quarters. they talked a lot about digital and innovation. delivery is coming to the app this summer, which is interesting because they partner with doordash. this isn't done internally. nickel says -- he sees this as a multi billion dollars in the future. they're testing a mobile order pickup window in denver where they actually piloted this. they said sales increased by
double digits on digital. they're going to be testing a new loyalty program that will launch in 2019. they also want to be seen as a lifestyle brand. they'll focus on advertising in sports and fashion to become more relevant. the stock up nearly 60% since niccol was announced in february. >> thank you. the massive stock run and a pretty big valuation. pe is 68 right now. >> i think this is very spicy at these levels. >> spicy in a bad way. >> absolutely. maybe it was the spiciness that got it here. this multiple is no way defended with this kind of growth and this stock, the niccol very important but i would be fading this. >> in this world of fast food and all the rest of it, technology's become a huge part of it and he's coming from yum, the new ceo and the idea that he was a taco bell and all the different changes he made there. right now when you look at the valuation, they've got to be able to show us the growth that
actually makes us think that this valuation -- >> in their glory days they weren't trading at 68 times. no mas. >> very clever. >> that's what i do here. >> super clever. from burritos to banks and financials, as the fed prepares to deliver the financial results of its annual stress test tomorrow and if there's one thing we know is that wall street loves the banks. >> banks derated a lot, already. i think -- i think probably the worst is behind us. >> we love financials. >> we like u.s. financials. >> the banks are setup. >> i like the financials. ♪ sometimes love stinks. shares of goldman sachs, waiving, morgan stanley all down double digits this year as the entire sector is in the midst of its worse losing streak ever. we thought it would be a great time to play a brand-new game. this is a new game, guys. we're calling love it or leave
it. the rules are pretty simple. we'll go around the horn on the bank stocks, you tell us if you love it, in other words, buy it or you leave it, meaning you don't kick it to the curb. you don't want it. very clear i hope so. >> they'll screw it up. >> goldman sachs down 13%, pete, love or leave it >> love it. i love it. i like where it's trading right now. it's not -- that smooch. the fundamental side of the story, it's all been there. i think also, what we're seeing right now, they'll have a different leader in not too many long from now and the direction that i think goldman sachs is moving is growth and that's -- it's like going to technology when microsoft had to transition from where they were to the next level of cloud and all the rest of it. this is what goldman sachs is going through. >> could be exciting. i agree, but it could also be a sign that these guys need to reinvent themselves. >> the reason i would disagree is i still think there will be trading that's great for them.
but to manage that volatility there, if they got other areas that are more consistent, i think that's going to help. >> next up, wells fargo, love it or leave her >> leave her. they've made fatal mistakes. it's a broken heart, folks and it should be. they've broken a lot of people's hearts. i'm not leaving the banks. i would rather be in jpmorgan or citibank. so bye-bye wells fargo. >> is the feds going to slap them on the wrist because of the past misdeeds? >> i think it's just management's not having their eye on the ball as far as managing the business properly. i leave it as these levels and i agree with tim. there are better alternatives within the space to buy them. >> i'm so glad this game is very clear. in the past we've had some bad ones. it seems like we're spot on here with this love it or leave it. okay. citigroup, love it or leave it
>> i love it. especially down 12% on the year. this is a name they've done a tremendous job cleaning up their balance sheet. obviously -- i love the fact that we're -- it's a tailwind for them. this is one of three banks you must own here. it's a second half story. >> i love this name as well. i own the name. here's the one problem we both have to deal with. the exposure outside the united states and how do you -- >> they sold after a tremendous amount of divisions and i know they've done a lot of work to clean it up specifically. i've talked to a lot of people on the line that have given me that feedback and this is a name that is going to be a second half play. >> these guys were never in a position to give back capital. they now are. that's a driver. now you've observed all these guys play this game, so now you're ready. morgan stanley's last line, guy, do you love it or leave it >> trade it. no. no. >> is it a trade war stock
>> trade war stock. >> love it or leave it let's get back on track. >> love it. >> thank you. >> give me the heart and throw that -- you go back to last quarter. 145, 1.26. fixed income had great quarter. equities had a great quarter. book value in morgan stanley is now $39 and change. if you just put -- what i think is a reasonable multiple on that of about 1.5 you get till about 53, $54 stock. i think there's something with deutsch bank that's causing systematic damage in our banks here. that concerns me. >> you think -- you think that's impacting the banks? >> the reason why these big money bank centers are lower is all because of european banks. the regionals until today have traded well which leads me to believe there's something else going on. >> even when the feds have said they're getting rid of these tests -- >> so much capital. >> they've never been better. >> i'm saying it could be
potential systematic risk in deutsch bank. >> your heart looked like it was stucco. >> that's because our -- the last two days -- >> i know one man's who's leaving it, morgan stanley, that is, let's get to dan nathan out in san francisco. dan? >> oh, surprise. >> can we rename this game, laugh it or leave it it's laughable. the parade of bulls. the stocks do nothing but just go down every day and we have to hear about how everyone loves this group. it's laughable. if this group can't rally after c car -- >> dan, we already did this. >> look at that. mr. bear, himself. >> who else is shocked by that reaction >> you should throw a broken heart up there. >> you just got smooshed and it wasn't by me. >> "options actions,"dan. >> really interesting today, the
implied move between now and friday's closed because of the c car in jpmorgan and bank of america, about 2%. that's really hefty but in the xlf where all of those are components, large components, the implied move is about 1.5%. it doesn't have that risk. today, call volume was actually really hot in the xlf, about two times that of puts. the most interesting trade i saw was the largest trade of the day was an opening buy of 21,000 of the july 27 calls in the xlf paying 41 cents. was interesting to me about july is not only do you get c car but you're going to get nine of the top ten holdings in the xlf are going to report between now and then. to my eye the implied move in the xlf between now and july 20th close is about 3.5% in either direction. when you consider how badly these banks act and you consider the catalyst, 3.5% in either direction seems pretty fair for the next three and a half weeks that could be the way to play it no
matter what your directional view is being long options in the xlf. >> thanks, dan. >> danny downer. >> sure. that's a good one. more "options actions," check out the full show friday 5:30 eastern time. energy stocks have gone wild. the group tracking for their best quarter up nearly 13%. there's one name that could see an even bigger breakout. find out what it is when he delivers his fast pitch. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated.
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we have a news alert on bj's wholesale. seema. >> reporter: reuters is reporting that the wholesale club priced at $17 a share the upper end of its indicated range of 15 to $17. it goes public tomorrow on the new york stock exchange where it is looking to raise about $700 million. back to you. >> thank you. is this a good time for retailer to go public? guy? >> no, i would say in a nut shell. no, it's not a great time but is there ever a good time market influence, external factors, if we're lined up to go public, you go public and then you play the long game. it's not the best time for retailers, but quite frankly there's never a great time. from a hot ipo to hot sector, energy stocks going
wild. names like marathon oil, conocophillip all surging out of control but if you missed the move, pete says there's one name you can still buy. pete's over at the plasma for his fast pick. >> i love chevron. this guy's been around for a really long time. the ceo, he's been directing it from the mid-stream and all over the different map, all over geographically. earning strength, this company has so many different fundamental stories to it, its cash flows and some of the earning strength we're seeing here and the diversity of what this company is and lastly i want to just point out because we're going real quick. acquisition strategy. the fact that they've gotten themselves into the marcellus as well as the permion, that is something they never had any idea how big that was going to be. it has huge for chevron going forward. this is a company that absolutely reward shareholders, they're buying back stock, and doing everything right. trade's a little bit of a high valuation but that free cash flows unreal.
>> straight to the vote? >> i think the integrated names it's the name i want to own. >> i agree. oil up here, the integrators is the safest way to play it right here. i'm a buyer. >> it's a very valuation. >> what does that mean >> are you buying? you can't write fair valuation on the white board. clean sweep, are you at home buying pete's hit for chevron. results later in the show. and the man, the myth, the legend, william shatner, aka captain kirk will be here to talk about how he's changing the future of bitcoin mingni. more "fast money" right after this. your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement
a year with xfinity mobile. plus, ask how to keep your current phone. visit your local xfinity store today. welcome back to "fast money." you've seen the highs in bitcoins and the lows. now it's time for the final frontier to seek out new coins and new crypto bulls or bears or bears to bulls, to boldly go where no man has gone before. our next guest is doing just that. he's the legendary captain kirk. nowadays, william shatner has moved from space to navigating the crypto universe as a spokesperson for solar alliance, a company that's about to build the world's first solar powered bitcoin mine in illinois. thank you for joining us. >> the mistake is thinking i know anything about bitcoin mining. i know about how to power the computers that mine for bitcoin,
but that is a strange area for everybody. >> how did you get involved in this i'm curious because the big push here is this conversion of this former illinois power plant into a solar powered bitcoin mining operation and you've been brought out as a spoke person. you at one point called bitcoin a cyber snob currency. how did you get into this? >> well, i got into solar power because of my interest in the environment and i solarized my house using solar alliance as the company and then i started to speak to this -- the ceo jason bach, a bright canadian, as most canadians are i might add. >> of course. >> and he leaked the company so solar alliance has done a phenomenal thing along with the town of murphiboro and it's a great mayor, we've taken an
empty building that was standing idle and we're electrifying it with solar -- and much from the grid and we're supplying power to the vast number of computers that are needed to mine for bitcoin, and that's where we come in. as against the gold mining rush days where miners would sit around and pan for gold, we're supplying the pick axes for the mining of gold, which is the electric power. >> do you have any sort of internal debate or did you have it when you got involved because obviously bitcoin mining in general consumes so much power so basically you're still using power and granted its solar power but we're still using that power instead of powering homes by that illinois plant to mine bitcoin. >> many jobs are being offered in the town which was a former coal town, suddenly they're in green power and our company,
solar alliance, is all for educating the company and supplying solar power to the public in business, in commercial and in personal and in homes, so that this change from fossil fuel to power from the sun is a necessity for the world, really, let alone the country and we solar alliance are in the forefront in looking for opportunities like we've taken to partner in other towns who are languishing, bringing business as this with computers. >> mr. shatner, thanks so much for joining us. hope you'll keep us posted on "fast money." >> thank you for having me. >> william shatner, aka captain kirk. up next, final trades. whoooo.
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it's done. >> i'm buying tesla in next week's event. i'm just a doctor, mel. >> you know what that's from 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 just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. every nagt -- night i come out here and tell you what happened during the