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tv   Fast Money  CNBC  July 10, 2018 5:00pm-6:00pm EDT

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getting hit pretty hard and there is a headline that trump is preparing to lift another $200 billion of imports on china to tax. >> and the news earlier this week that that was kind of on the back burner and nobody expected that to be in vogue so maybe that is taking traders a little bit by surprise we haven't seen the list itself yet. that does it for "the closing bell." fast money starts right now. live from the market overlooking new york city's times square i'm melissa lee. your traders on the desk are pete najarian, brian kelly and dan seymour. tonight on fast, bitcoin stuck in no-man's-land at the 6300 level as fresh concerns over the ico market sent the crypto space tumbling today, bart smith of susquehanna says ignore all the noise. bitcoin is not only the best bet in crypto, it's a safe haven and he'll be here to explain you're looking at a live shot of sun valley, idaho, where the moguls and tech titans are
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gathered we will bring you the very latest from the ground, but first we start off with the market in what we're calling the long of the yard for stocks. we're not talking about the burt reynolds classic sorry, we're not we're talking about 2800 on the s&p 500 for seven of the last eight sessions and it just can't break through. we've been here before in fact, the last three times we've been here the market has sold off do you know what that's called a fakeout. as we make another run for 2800, will this be a breakout or a fakeout? >> i know there's risk going on right now and i would stick with -- and you could have been in that movie. >> sure. >> goldman was in part two i think the breakout and the reason i say that is when i look at what's been going on in the market of late, we've seen a nice movement around the market and it's not just tech and they've pushed the s&p up higher and the broadness of the different sectors i think really makes this amuch more
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interesting market right now and we're getting energy participating and we have stronger consumers and a lot of different areas and earnings kicking out on friday. >> the small caps underperformed tremendously >> and underperformed and it was from google and not only that. look at the bond market and junk yields and they're not back at lows like they would be at the height >> to me, there's a lot of caution here and i don't think you have to buy this market at 2800, and you can wait until it proves itself. >> yanny >> fakeout >> oh! >> it's a fakeout! >> thank you thank you. >> i would say that 2800 is kind of a big number and the next number is 2900 which is where we topped out in late january so if you're a trader and you want to play for that breakout you'll see the same thing and we're talking about this, and if you get up 3% and we'll be talking about it in a few weeks or months and we'll braeak out o
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new highs. listen, the rally off the lows in march is pretty impressive and it's a series of higher lows and higher highs and we're back up at this resistance level and when we have technician comes on and they say i don't care about the news and fundamentals. we're going into a very important newsy period which is hurrying and this is why you could see this stalling at 2800 and listen, i don't think we're taking a new high. >> fakeout >> yeah. >> the higher lows as we bump up against the 2800 mark. >> on getting thefakeout, let me start right out of the way. i think take-out price or breakout -- whatever >> busted! >> and the stock market. >> this is not that hard, guys >> here's why. first of all, those other three periods when we ran into resistance on 2800 on the s&p, it's different >> if you look at the data and the spec long positions on s&p
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futures going into this, whatever you're going to call this and i'm calling this breakout and not take-out price it's significantly lower and there's been long liquidation. so what does this mean i think if you look at the city surprise index came in a couple of days ago and also, we were with extreme negativity and the market is in a different place going into this earnings season than we were going into the last one. trump's heading off to nato meetings and we'll talk with headlines and tactically that would be want out of character right now for this president to go in there and make some bold statements in the next couple of days, but i do think that the market's positioning on what this is about. i'm going breakout >> is it concerning that earnings estimates have been revised gradually higher as we go into this earnings season as someone who sees this as a potential breakout. >> it's a different setup. >> and the performance today, if that at all is a reflection of what we're going into, i think the breakout is a real --
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>> well, but this is a global company, and they've got different nines and the soda pop and all of that. >> it was down 8% on the year. >> no doubt. >> expectations were lower. >> yeah. >> the expectations are lower for financial, for instance. >> probably will. >> the technology is the biggest component of the market and i think technology will outperform and still beat the numbers >> what do you think >> i'm still rangebound, and the market is trying to wrestle with it is trade war good or bad if i extend it's going to be bad, but what if it works? what if we get free trade or we get more products into china, then that will be extraordinary for earnings and we go back to, i don't think you have to rush into this market you can wait because if it does brake out and we have great earnings and we have a great economy and the trade car subsides, you have more upside. >> whether you say breakout or
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fakeout on the overall markets there are individual means that we want to talk about that have seen some pretty big moves since the s&p 500 bottomed on june 28th so the first thing here, wells fargo, it's up about 6% since then same rules apply fakeout. >> no. it's a fakeout. what concerns me about the financials and again, the junkier part of the bond market is concerning me about the market in general, wells fargo in and of itself is a big part of the financial market right there. some. >> no. notally, but it starts there and i'm a little concerned about that and we've already had a move and to me it's a fakeout. >> when you think about the second-quarter earnings the banks have the earnings of any sector and guys like you say look at what they did and they
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languished all quarter on the back of the yield curve. the fundamentals of the banks going into this earnings season especially we're getting growth in the second quarter and it's impressive year over year, up about 5.5% this is the first time people are paying attention to fundamentals and banks. >> next stock, freeport-mcmoran is up 7% in the last eight sessions >> i'll go breakout on this and this is why. we saw copper go from 3.30 to 2.80 which by the way, was last year's resistance and it became supported. i think dr. copper will make another move again and sds which has been correlated to the copper, outperformed during a copper stock market. i think this is not the company it used to be, to be clear i don't love freeport, but it will help perform here and look at the ppi last night in china and it was a very important read for commodities. >> did copper continue to go higher because if it does -- >> sure. i pretty good break, and i would
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fidence, and better more per formed. >> best stop, nike >> it's up 9%, peak. i think it's a fakeout and here's why >> wait, hold on >> so my opinion is this is going to be a packout, but it is breaking out he's looking at the chart. >> but it's a fakeout. >> i'm saying it's a fakeout i sold the stock yesterday i like when nike is doing right now, but i look at the valuation levels and we look at the various metrics and the growth, obviously, international is great and north america is slower and that's been the biggest concern, but it's made up that gap and because of that, trading at 78 and 79 somewhere in that range you're talking about 28 time. because of that it's a fakeout and it will pull back and you'll have a better opportunity closer to seven. >> it is a real breakout and not the fakeout that he
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gave. >> he faked him out and it's a breakout i think that level we rallied to is the flag pole chart and that's interesting to me >> last stock here, biogen, it's up 20% and almost 20% in a little more than a week. >> dan >> this thing went from 300 to 370 on the piece of news that the analyst was calling ambiguous and you have the 20% news on the piece of data that people can't exactly quantify right now and i would say it's a bit of a fakeout here. >> the thing was wobbling. i think it's a full fakeout. >> this is not phase 2 and some of the numbers were manipulating the number, but that makes this whole thing fool like a fake oit and it's a huge move in the stock. >> that's a fair statement based upon what biogen has done over the last five years.
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it's been a sideways play and you guys are right to be there there issal zi alzheimer's newsd it forces people to make a call in the stock. >> that was the end of july. >> they actually have to be in the stock and it's not like that stock was -- it was not that much of an outsized move considerably how well the stock has done in the last five years. >> well, it's not just the s&p that's been on fire. the dow gained 800 points in eight days and our next guests there are two names you can buy is with strategic research partners >> hi, chris >> exactly we brought along three names with us today. two longs and one short. we'll start with the long. this is home depot, over the last two years, here is the chart. >> i think what's important, when you go back two years ago, test at 200 and resume higher. >> last year, test to 200 and resume higher. what happened here over the last five or six months we had a 20% drawdown right to the 200 and we held and reaction
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cell rated and we think ultimately a 220 target is appropriate and home depot, relative to the s&p 500 is still very much in this uptrend. so you have the new trend that's good and relative, it is still a leadership stock let's go to apple and the most important name and we think it's okay here. another name that was in the 190 range and it's held to 200 and it exploded off the 200 back in may. it's held all of the big levels and it made new relative highs and only about four or five weeks ago and we still think this is leadership and look to a 210 target going forward and then on the short side, not everything here is perfect and mcdonald's does worry us right now. most importantly, this is just not a leader big, relative top for the s&p and made four-month relative lows today and unlike those other two names, what mcdonald's has not been able to do is retake the 200 so you had the 20% drawdown, has not been able to reclaim
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resistance and that's a problem here we like home depot, we like apple and mcdonald's is a sale >> chris, we have questions for chris. >> come on over, chris michelle, i'll bring the chair in thank you, michelle. chris, as you know, we have very astute viewers of "fast money" and i'm sure people out there saw carter black out there on the plaza who talked about apple and he showed the exact same charge in terms of apple above and relative to the s&p 500 below and then when he also did was he did ex-apple and what we saw was real underperformance of apple that led him to the conclusion that there's more downside here or downside to come for apple so what -- how are you guys looking at the same chart and coming up with completely different -- >> it's the battle of the pantheon. >> we're talking about the biggest stock in the world. >> right >> it has been a source of safety in an otherwise challenging market over the last
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four or five months and let's give it bonus points for that. it's provided a margin of safety if you look at the bar going into earnings, i think it's very low. the analyst buy ratings on apple is the lowest since the lows since 2009 so the analysts are pretty bearish going into numbers in two weeks and i think that sets the stage for this stock to rally and we made new relative highs versus the s&p, that's a stock that still sounds like a leader and i recognize the pause and ultimately, that gets resolved higher. >> my question is on the relative strength versus the s&p, it's paused here. if that starts to outperform, is there information embedded in that if an analyst is bearish and it starts to relatively better than the s&p 500 i would think it's a massive breakout and you get a panic buy. >> i'm right there, and i think what's telling about the name is before earnings every quarter you hear the same stories. peak iphone, peak margins and
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they rally away the upside and that's reflected in the price in the weeks and months ahead, but when you put this in context with the market, right, largest stock in the world it's not a bearish development that you have apple in here we know how bad the headlines have been stock traded well. >> the last question to you and i'll kick to you the question i posed to these guys. s&p 500 near 2800. breakout or packout? >> i think it's a fakeout. it's i put well fargo in that camp i put freeport in that camp and i'm skeptical of biogen here there are probably other better names within healthcare. >> look how nicely chris played the game. >> the only guy who played the game and getting tiresome that our guests are better than we are, frankly >> coming up, amid the carnage, bitcoin is the best performing large-cap coin and wall street's queen of crypto says it could be a safe haven in the space.
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tesla going all in on china. shares rallying after it said it would build a new gairm plaplan. >> it could be a summer sizzler to investors and the stock is up 6% in the last week. how do you spell giddy up. >> we're live. it's the nasdaq and times square much more fast coming up straight ahead honey, this gig-speed internet is ridiculously fast.
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money. >> melissa, when this announcement came out today i immediately heard from people who said, waited a second, hasn't tesla made an announcement several times in the last couple of years that it's building a plant in china and that's true. tesla has done that or reports that were different today, elon musk signing this agreement with the mayor of shanghai and shaking his hand immediately had people saying okay, maybe this time it is truly going to happen it's not just a commitment although we should point out this is a memorandum of understanding to build this planted which could have the fast for 500,000 vehicles if it ever reaches that point, but there are a lot of questions out there. first of all, local production is unlikely to happen until 2021 at the earliest and that's if they really get cooking on this plant, more likely 2022 the way things get delayed whenever you're building a new manufacturing plant. what's the cost? nobody knows i was talking with a couple of
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analysts and they say 5 billion, 6 billion, 7 billion expect that to come up in the next couple of months and will tesla need to raise capital in order to fund this project yes, we know that elon musk has said repeatedly, the company does not need to raise capital, but should it raise capital? will it give them the cash position and the cushion they need over the last couple of years as they're building this plant. one other thing, tesla sold just over 14,000 vehicles in china last year. that's about 14% of its global sales. people have asked me today, what kind of a flare is tesla within china? you do see them in the streets of shanghai and beijing, but keep in mind there are a hal million -- half million electric vehicles sold in china last year so tesla is in a very competitive market the question is whether or not this plant, when it's finally up and running whether it's in two or three years from now, how much it will actually help tesla. >> and so this could actually mean potentially good things i
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would imagine for the other automakers that who want to increase their presence in china because tesla doesn't need a partner here and that could mean good things for the other companies, too. >> exactly this is wholly owned by tesla. this is a change by the chinese government in the past it was always a requirement that auto manufacturers from foreign countries would have to partner with a local manufacturer. china has changed that requirement and tesla's plant is one of the first examples of that don't be surprised if we see other automakers making similar moves in the future because clearly you would rather own the entire facility than have a 50/50 joint venture. >> phil, thanks. phil lebeau in chicago could tesla's new deal with china be a game changer for tesla. tim? >> i don't think so. this deal was talked about in april when beijing dropped the foreign producer was set to actually be somewhat owned by the chinese. phil talked about the ev market is now almost 500,000, up 82%.
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china demands that all players have at least 10% of the fleet. >> the tariff goes away in 2021. >> do you think we'll be in this environment by then? it doesn't affect u.s. production tesla's issues are very much around the mass market production here and it's great news and it's nicely timed on the same tariff on tesla >> it's nicely timed on the new story and we spent the fort night worried about whether or not it would be -- and is it a stone? >> yeah. anyway, the last fort night we worried about how much production they'll have here in the u.s. that's what's driving the stock today, not how many cars are they going to build three years from now in this fictional plant that they've announced about 16 times. >> they don't know how to pay for it, you said. >> it's maj ar caor cash burn >> don't you think they're
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getting massive incentives from the chinese government >> look at foxcon. >> you're doing a lot of talking here, bro, and i'm just saying there are other ways to think about it this. >> just look at foxcon they can make 500,000 iphones a day with a million workers in china that are there because the chinese government gives them a massive incentive to do so it's not too different than -- it was there, too. >> it's a fundamental game changer for these guys >> they're making model 3s. >> is that going to change because three years from now they'll have a plant in china? >> i've agreed with you and i'm agreeing with you again which we usually don't have as much >> i'm telling you, i think it is interesting and i think we will get all kinds of deals to be able to get this thing built, but they'll still have to put money into this, one way or the
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other they're giving up something and they've got to figure out. >> are the capital markets open to tesla right you in. it's up to $320. >> the burden of proof is if they're not and the tesla markets have been wide open for these guys and part of the reason why these companies -- >> let's just remember that. >> all right okay >> according to the options market, tesla could be gearing up for huge moves and dan, what did you see in the action? >> pretty interesting. >> the movement between nowand august 3rd which is the week that they should report the second-quarter earnings is about $40 in the stock and another way is 12.5% it's interesting for a stock up 3% it's a massive range and just look at the chart here we are literally right in the midpoint that was up on the upside and 245 on the downside which is down about 20% of the year it's obviously, we have the debate on the desk every night here and it's a massive
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bull/bear debate raging and that's one of the reasons why we've seen option price essex pa expand a whole heck of a lot and that's implied volatility and the price of options of tesla here and they're rising right now. so obviously as we head into the q-2 report a lot of investors and what are they going say about raise and about production so to me, this fight is on this 30% shortage. we know that so we can talk about it until we're blue in the face and it's not likely to resolve itself possibly until 2021. >> at least. >> in an environment where volatility has gone back down to the 12 and we have a volatility, and it's amazing because these earnings are aren't next week. >> options action. the full show is 5:30 p.m. eastern time still ahead. where are all of the beautiful people they're eating chilled salad,
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drinking hot tea in sun valley where the moguls are gathering to air kiss and potentially talking about the next deal. i'm melissa lee on kwoeft fast money," here's what else is coming up on fast. >> he's bringing the heat. pitching one biotech stock that's up, and he says there's much more to come. he'll give you the name. plus as the crypto carnage raises is, one coin has emerged as a safe haven and we'll tell you which one when "fast money" returns. h companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate.
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welcome back to "fast money. we want to call your attention to some price action in the market as you see, the s&p 500 etf is trading lower by a half a percent. futures, we should note are closed for trading and they open at 6:00. this is moving lower on the bloomberg headline and president
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trump is expected to announce up to $200 billion on fresh tariffs and china. the yen is moving higher against the dollar as a safe haven bid again, this is a bloomberg report and it's the only news organization out so far, but we do want to bring this to your attention because we are seeing the move as well as in the currency markets >> i talked about the fact that we have this debate here and within the market, you are tariffs good or bad? right now if this is true, then the market is saying it's bad. the one thing that would get bk bulled up is if the market reverses on this if there are 200,000 more than a pair and we reverse and start moving higher then b.k. would like this market >> preparing a list is very different than going into an investigation. >> right. >> this process, folks, is very, i will just say involved and if we get to 250, we're more than half of total chinese exports into the country let's be clear
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i think the president is intentionally conflating nato and stuff, as he heads to europe having difficult meetings with people and playing hard ball in terms of positioning and settling is in a difficult place to handle this news two months ago. >> if we have tariffs on $200 billion more in goods. again, that would be half of what we bring in from china in total. >> would that officially be a trade war and would that make your breakout on the s&p 500 an elusive dream? >> it would make it elusive for the time being but how about the digestive process. we see this all of the time in this as we've been through the whole tariff back and forth kind of thing this is a huge number, no doubt about it if that's what's being report side correct 200 billion -- >> don't you think it's fair to say the first half of 2018 we saw the stock market go sideways and the market is up a few
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percent and that's digested the news that we know about the tax cuts that were in place at the end of 2017. so if the back half of 2018 is really digesting hundreds of billions of dollars of global tariffs there is a significant potential that that offsets any of the benefits we were expecting in the back half of 2018, of the tax cuts and i'll just say this, we're going to see this on guidance, q-2, what's going on here how people are projecting and i don't see any reason why the management should be anything other than cautiously optimistic at best. >> i want to show the side also because we're seeinging a move in t with the china etf and this continues the decline that we've seen in china on the tariff, onned trade war. >> it's been a nice bounce in emerging markets in china over the last four or five sessions it really began the day that this stuff became official on july 6th and the emerging market are 4.5 under lows 15% underperformance and an
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absolute terms north of 21%. pete's right i think we're all right when we say that if the markets have to deal with a real $200 billion tariff, that's a very different than an announcement that there could be a list prepared and you know, look, the impact if you want to think worst-case scenario, this puts 35 or 40 basis points of additional inflation which i think stocks haven't come close to pricing in i think in the second half of the year a lot of this is priced in, frankly. i think we heard it from companies for months that i think they allowed the tax cut to issue priced in. >> in terms of the inflationary pressure on the economy, we haven't priced that in, but isn't that more of a supply shock? we were speaking -- it's not something lasting, but the fed would actually incorporate in
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terms of deciding -- >> that goes are we in a trade war which is longer term or a trade skirmish which is just part of the negotiation process? so if this sticks and we have even 250 billion, then, yes, you will get a stagflationary environment. if it was a one-time shock then we would get it. >> i keep hearing how much leverage we have over the chinese given how much we can apply as far as tariffs. i'll tell you i think the chinese have a ton of leverage into the fall as we head toward the midterm elections and look at who they're targeting so to me, i actually don't expect any short-term fix this summer i think this will go on until where the chinese have the moment amount of leverage and let's not forget how much we trade with our allies to the north and the south and over double what we trade with china. so to me, this thing is exploding and we're not
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expectation short-term fix. still ahead, wall bull's new crypto says it could be the safe haven of the space he'll explain. stepping up to the plate and getting ready to pitch the one biotech stock he says could be a home run for investors what is it the name and much more when "fast money" returns
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my name is cynthia haynes and i am a senior public safety specialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. welcome back to "fast money," things were looking so good if you were a bitcoin bull. the happiness was unfortunately,
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fo short lived. despite the currency, why is that, pete why do you think >> you see a couple of things. one, bitcoin has asserted itself as the currency here of the internet, right? and that kind of is starting to pick up a little bit of steam so people are getting involved in that the sell-off today wasn't really much i think it was just more of a correction within this 6800, really big level for bitcoin. you're seeing a lot of sellers pop up there, although i am encouraged >> when you say currency of the internet, what exactly do you mean >> what bitcoin was designed to be is a currency we have all of this hype and those things will be great, but ultimately, bitcoin is going, in my view, be the money of the internet so if it's a currency, it's not a security and it's designed to be that way and it's getting some improvement, then that should give it value. >> all right what else could be behind the bitcoin resilience
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mark is behind the digital assets at susquehanna and we like to call him wall street's crypto king. >> what's going on in your view? >> i think the 5600 level has been important and the 5800 has been important and it's been a theme, but if you look at the lows that it bounced off of 5800 to 6,000 which was a couple of weeks ago and it bounced off in april and late february. if you go back to late october when you announced the bitcoin futures that was the level it was trading at then. when the bitcoin futures got announced they got excited about all of these other tokens and cases and the smart contract and decentralized apps and you saw the smaller tokens as people got excited about them, massively outperformed and we got way ahead of ourselves and we are in late december and early january, and we've been grinding back down here and we're back at that level where we were before bitcoin became a financial
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instrument if you're looking at these other cases and smart contracts and the technological advancements and people will realize those things are difficult and not coming in any time soon. the used place for bitcoin is valid toward i would say it's the digital gold it's a cross-border, money transfer which people use. >> if those are the two use cases today, it's hard to imagine to see them using the field. >> is involves money transfers to get around. i see that in terms of the store value argument, does it help here that bitcoin is, in fact, stabilized and that it's not skyrocketing, that it's sort of found this range it's trading at because to be a store value you would think it would have to maintain some value. >> the interesting thing and he points out, that 90 to 95% of
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the volume of crypto happens outside of the united states and in the united states we trade crypto for dollars outside of the united states for the most part, they trade other crypto assets in bitcoin so bitcoin is the currency with which you trade other digital assets so it has become the reserve currency of crypto and so it's not surprising at all, and i think that there are a lot of people out there and i talked to a lot of big investors who would love to buy it at 5,000 if it gets there if it were to break 5800 or 5,000 that would make a lot of bulls nervous. >> so, bart, what about the futures? you trade a lot of futures and i look at the traders report, who is net short position. >> are these people bearing ahead point coins and people are hedging their bitcoin positions. >> if you look at the futures they tried fair to sort of ugly younger in his traditional use
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of ags and metals and the like if it was $100 million in bit cohn united states that about is no definitive move up or down or people getting against bitcoin who are shorting it's difficult to tell what i would say is that i think -- i think that the fact that the volatility is going down, right? it's got a real volatility of 70 which is seven times more volatile than the s&p 500. volumes are lower across the board and to's lot of traders, there's a sense of is this bear market peer. you want to use the assets that you can actually use today it's bit coin >> there are a lot of people in this world who work in one coupry, and they use traditional banks because they're slow or
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expensive. with bitcoin, i can send money it's fast, cheap and no one can stop me. >> those are great and it's a proof of concept that you all work out you guys are building an infrastructure for institutional clientele to actually buy and sell this sort of stuff. with the crypto assets where they are, down 70% and the rallies are bear market rallies. are you seeing increased interest from institutions who aren't currently invested in crypto assets and to me that's the thing that breaks it out ultimately wider investment pieces for it. >> so there's generally in our way thinking of it and there are four pools of assets around the world and the european retail and asian retail and global institutional. there's only one player in bitcoin space right now and that's the asian retail and they're driving the bus in that case there's a little bit in the u.s., but it's small compared to those. if one of those areas were to get tapped like institutional, absolutely it's a humongous blow of money
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and it will drive prices higher. >> i think we're not even sure what regulatory agency will have jurisdiction over that, and so i think people feel like at any point in time they can jump in on the futures and so when there's clarity and when they feel better about it they will, but there needs to be some impetus and i said it last time i was on the show and it seemed to be bouncing around 6,000 to 6800 and it gets to 6800 and runs out of steam and it gets down to 8,000 and people feel oversold and that will be the indicator if new money is going to come in >> thanks for coming by. bart smith of susquehanna. >> he thinks i have a good point and for example, emerging market in the 2001, we wanted to see non-ded dated rushing guys and the brazilians, and that's a good story, and these guys are
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clearer to the front lawn and bitcoin being a base and i do believe the charts are telling you something and it's important that we are at the pre-futures level. >> you're not always 100% invested >> no. >> where are you right now and what level would cause you to go in for more? >> we are probably 95% long and bitcoin and ethereum is the biggest position right now if we break through 6800 i would be very bullish. in the last month what we've seen is these rallies have sold out off, but not as violently and as bart mentioned we haven't seen a lot of volume on the sell-off in the last month again, i could begrasping at straws, but it does appear that the character of the market is changing below 5,000 i would get very concerned particularly if we had a grinding bull market below that still ahead, tech titans embarking on beautiful sun valley, idaho, as we speak what will they talk about? we have got some clues, plus
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pete has made his way over to the plaza, pchiting a biotech that is up 20% in the last month and the name and what has him so bullish when "fast money" returns. good evening. glengarry chamberlin, esquire. welcome. jimmy crabtree, plus one. welcome. ♪ play just got serious in the all-new toyota avalon.
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welcome back to "fast money," time for everyone's favorite game. pete is at the plaza >> give us your next home run idea >> here it starts off. you always look for the top and you want to see what the
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leadership looks like. the leadership here is phenomenal it started in the investment banking world and then came over to amgen, worked his way up from 2006 all of the way until now and became the ceo in 271012 an this is a guy that understands the biotech world and the leadership stands out for me and that's important if you look at the fundamental story of the company right now, i always look at the buybacks. this isn't something that was done just the last couple of years. in the last decade, they had bought back over 30% of their outstanding shares that tells me a lot. they also have an incredible dividend yield and i like what i see there as well. when i look at different areas of what the fundamental side of what this company is doing, it's incredible and then i want to go towards growth the earnings growth has been spectacular, but forget that for just one moment and i'm going to go back ten years ago and they were earning $3.90 now they're earning $13.70 that tells me a lot about this company and by the way, i just had buying the other day in the
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option so i bought the stock just yesterday. i like this company. i like the direction they're going. i like the growth strategy that they've gone with. they've got a great pipeline and they have massive drugs and by the way, if you want to be u.s. centric, 80% of their revenue come to the united states. so i like just about everything that i see from amgen right now. >> hey, pete i have the question about the buybacks and dividends. >> i know they have a great growth strategy, but doesn't it concern you that they can't find anything better to do with the capital than to pay the dividend >> i think what they're doing is they're shareholder friendly and oh, by the way, one thing i didn't mention annually, 11 billion in cash flow they can look around and they can look for acquisitions if they'd like to, and i like what they're doing in terms of the shareholders first >> no more questions, are you buying or selling pete's pitch on amgen >> i'm buyer and long the name
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and i think the company is kicking it and i'm not concerned about the piece. >> some of the key drugs, so, yes. >> buy >> there you go. >> dan sold to pete, great story. where was he two months ago when the stock was -- i don't know, 165. thanks a lot >> that should be the ring tone. that sound >> p.k.? >> i'm a buyer with pete buyback stock and have a growth strategy p.k. likes. >> two buys and one sell from dan. the desk has spoken. it's your turn now, would you buy pete's pick? vote now on the twitter poll and we'll reveal the results later on in the show the world's top media moguls are descending on beautiful sun valley and our julia boorstin is there with the toughest assignment of the day. hi, julia. >> hi, melissa that's right did of the billionaires an mea moguls are jetting in and pulling into the sun valley lodge behind me and we'll tell you what deals are in the spotlight coming up after the break. helps your brain
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and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
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welcome back to "fast money," no carbs, purified water and potential deals and all that could come up at this year's sun valley conference. our own julia boorstin is live there to break down what we can expect hi, julia. >> hi, melissa all of the heavy hitters are starting to arrive and of course, no deal is in more focus than stocks and the battle for those fox entertainment assets we already saw rupert murdoch arrive and he'll be joined by
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his sons lackland murdoch. comcast ceo brian roberts who we also saw come in earlier is planning in terms of a higher bid for fox and we've not seen disney's ceo bob iger yet and we're expecting him to be here and now in the middle of more chatter, cbs and via com the controlling shareholder, sherry redsten has arrived and we haven't yet seen les moonves and he is expected here and he and redstone are locked in a legal battle over those two companies' future. we spoke to aol founder steve case he told us he expects many more deals, but this time the buyers could be the tech giants such as apple and amazon >> we announced the aol time warner merger 20 years ago, 19 years ago and some of the things we talked about then are now happening in terms of stream beiin and i'm not surprised where they'll position themselves where consumers will have more choice and more control.
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>> another company that could be a stellar discovery, discovery ceo is here. he talk about the the advantages of merging to a crowd of reporters here >> just opens up a real opportunity for more consolidation. disney's approval in record time on the fox deal and it still has a ways to go i think justice has signaled that if you want to apply something that you want to be acquired and it is an open opportunity. >> with all of that eagerness to merge, it's interesting that steve case pointed out that there are also risks and there could be big, cultural differences between companies as there were with time warner and aol back in the day. so we'll have to see how the at&t-time warner deal plays out. of course, both of those ceos are also expected here back over to you. >> julia, aol and twx, we
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thought we'd play matchmaker here, media style, of course each of the traders will pick two names that they think will be a perfect match. >> i'll start it off with amazon because they're always going into a different area. i think they'll go after lion's gate i tfrpg makes a lot of sense and there are partnership deals with starzz, and they've got the film and the distribution and a lot of different reasons why this could make a lot of sense. >> it doesn't mean it's going to happen, but if i'm playing the game i think it could happen. >> i agree lion's gate is the perfect acquisition. why didn't amazon try to do this themselves, though this is also what amazon does. >> it speeds things up because they've got the infrastructure set up in terms of distribution, because right now, amazon when they distribute they go from lion's gate. >> your match. >> for me, it might sound unconventional, but i think that disney should buy activision
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>> i actually think that disney should buy any of the gamemakers you think about it, these are the new movies think about it, you have a great game you could have a whole park just on one game. >> or espn. >> exactly. >> with all of disney's characters and all of their established content, i think it's a great way to get on the cutting edge of where content is going and it's interactive and good for you, p.k. >> what's your pairing >> mine would be netflix, spotify. >> obviously, netflix is the leader as far as video is concerned and i think audio is a very important space and that's obviously what spotify has been able to carve out and apple music has not been able to do and amazon has not been able to do it. google has not been able to do lln nd netflix with a $180 biiomarket cap they should use that currency and buy another currency that would be fun. >> all right up, i next, final trade
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this is a first. it is a dead heat. >> 50/50 we looked at the bylaws and it reverts back to the desk when the count was two for pete and this is from dan pete is having the time of his life >> that's a heck of a job. >> all right. >> i don't know if this is fair. >> i mean, look. there are bylaws of the show and that's what they said so pete
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wins >> that's right. >> final trade for the winner. >> this weekend, a party tonight and constellation brands, giddy up >> party too much and you will need staples. >> dan >> iwn double top seller. >>cf1 o thanks for watching. "mad money" starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to madonna welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain, but to teach and educate so call me at 1-800-743-cnbc or tweet me @jimcramer. with earnings season kicking off today, the dow gained 142, nasdaq

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