tv Fast Money CNBC June 6, 2019 5:00pm-6:01pm EDT
the market before is a good number and a soft wage number. >> that is true, although we're talking about a risk management insurance cut and not so much a let's try to foster inflation type thing >> do you have a number? >> think the market thinks it might want a weaker number, but i'm not sure it will play that way. >> we'll hear on how sarah huckabee sanders comments on trade. that does it for "closing bell". >> fast money starts right now live from the nasdaq marketsite overlooking new york city's times square your traders are pete najarian, guy adami. one top technician says one of these names is a screaming buy plus one of wall street's biggest bulls is turning bearish. he will be here to explain what has him running scared and we start out with the market rally and the dow jumping 200 points as trade talks continue ahead of monday's deadline. the dow is up more than 900
points for its best weak of the year and the true test comes tomorrow and it is the final countdown to the jobs report we are less than 16 hours away from what could be the most important moments for the market as investors wait to see if the report will signal the fed's next move. with wall street betting on a fed rate cut or two this year will the jobs report give the fed the green light, guy >> welcome back! >> good to be back. >> you are missed when you're not here >> joe kernen does yeoman's work >> who's joe >> that clears it up, because there are a lot of things -- >> welcome back. >> that song is a miserable song, number two >> i knew you would play that. we'll play it the whole entire show anyway, green light? >> the fed does not need the jobs report to have a green light. they told you everything you need to know in terms of targeting inflation and i think they're on the wrong path and it doesn't matter what i think. pete said something yesterday
that sticks with me. wh the machines that take the market higher and the market is off to the races and today the word was maybe this thing with mexico pushing off and maybe we'll have further conversations. that works in the opposite, as well and i think you can see that tomorrow. tomorrow could be a day and tim seymour said this yesterday where good news is bad news and maybe bad news is bad news for the first time in a while. >> dan, what do you say? >> a good number i don't think crushes the market by any means and i don't think a number that is below, last month we had this huge uptick and we had the 263 well above the multi-year average. so i think if you're looking at this the proper way you're not going to take them month to month. i think it flies in the face of the narrative that the administration would like to see and they love seeing the jobs numbers and seeing jobs, job, jobs and they're seeing that some of their tariff threats are slowing the economy here and justifying a rate cut and obviously confusing, stay with
me here, pete. >> you lost me at 263. >> what i'm saying is that it's a difficult narrative. i think trade is the most important thing. i don't think one jobs number that flies in the face of what we saw last month is going to change what the fed does >> i don't think -- i do think trade matters because obviously it's affecting the charts. i think you'd be an idiot to say it doesn't matter. at the end of the day it's the fed. the fed stays soft and the market goes higher. >> isn't this all the same conversation >> the fed has turned more dove earn or the markets believe the fed has turned more dovish because of these trade threats because of the tariff threats, right? >> i don't know if you could make it the same i hear you, and it's an argument that you change your tail on, but i do believe that the reason that we sold off in the fall was the reason based on the fed. there might be a 20% trade issue so, yes, you can combine the two. he stays soft and the market goes higher. >> for right now, what's it all about? is it the fed? is it trade? are they one in the same
>> i think it's trade. it's want just china anymore, it's everywhere. president trump has made it very clear that it's not just a china story. it's a mexican story it's the rest of the world in terms of tariff talk and i think trade is still number one and i think powell and the fed is obviously still sitting there somewhere not too far away and they're the second part of this equation, and i do think at some point are they going to do two or three from what we're hearing in terms of cuts, what are we looking at right now and is it going to be something as soon as june because if so, mel, we raised back in december and here it is in june. >> and the shortest amount of time and 155 days between two moves since 1995 if you say it's trade, then what was the last two days about? >> what were they based on they were based on the fed >> the fed making its first pivot since the january pivot or december pivot so it can't be about trade
trade can't be the most important thing. >> listen, we were obviously pretty oversold and sentiment was pretty bad and that's when we got the surprise threats about tariffs with one of the biggest trading partners and obviously, not an adversary and one of our allies right before we were supposed to re-ratify this nafta deal and to me that was out of left field and that would be bad to put the tariffs in place on monday and then you start thinking about, okay, you have to think about corporate earnings and as we get into q2 warnings season in july. what are these tariffs that people are trying to factor into their spending and how is it weighing on the consumer what does that mean for the global economy is there anybody who can win this protracted stalemate and that's what starts weighing on risk assets over the course of the summer if we do not have a substantive deal at some point by the fall. >> they keep buying time, too. isn't that something that we continue to watch, each the deal with mexico --
>> isn't that bad for the markets? tell me companies will give clear guidance for the rest of the year because we don't know whether the next round of tariffs. >> doesn't it give them cover? and when you talk to traders, don't traders think, all right, the same way that brexit was the hot topic for so long and no one cares about brexit until you have something done. so they say, brexit, i've got it and i'll be concerned. has it given fedex cover has it given u.s. steel cover? you have to look at the macro market yes, there aren terms that aren't healthy and those are internals and you have large-cap tech that's been suffering and i agree with you, there are a lot of companies that cannot escape the trade target on their back companies that can't connect the last two quarters and does it give companies cover to not give guidance >> of course, it does. >> really? so if the company said -- situations -- we're sht going to
get guidance for the rest of the year. >> they're not going to say -- they have the air cover of chinese tariff talks, mexico tariff talks and all of the different things going in the world and the situation in europe so, yeah, companies can hide behind them and companies have i understand the market and everyone is extraordinarily excited and they should be are you excited about an xlu outtiments index making an all-time high in this environment and you can't be gold continues to rally and we've been talking about it for weeks and a name like procter & gamble procter & gamble is about to make an all-time high and a company that trades 23 times next year's earnings and that valuation in this environment makes zero sense, but people are reaching i don't think that's particularly healthy >> do we think about the jobs number and the quality of the number that we get tomorrow and whether or not it is more likely that the mexican tariffs will be put on on monday and i put that forth because for
a while president trump could bank on the fed cutting rates and right now that's what fed funds futures are pricing in. >> i think that's -- maybe that's -- maybe that chapter for the week is over, and i don't think a good number or a bad number matters either way and i'll take the op sitd and that good is not bad. i think good and bad are both good tomorrow. >> despite the fed euphoria one of wall street's biggest bulls is turning bearish, let's bring in jan than gallop good to see you. >> good to see you. >> are you, in fact, turning bearish? >> there's a part of the conversation that's being missed, if you took the fed out entirely and trade out entirely we've had lousy economic data and what you've had since september is the fed is bullish and bearish and bullish and bearish and we're not going to have a problem with china and we are, but if you put that aside
we've had a 110 basis point drop in the ten-year bond yield since november we've gone from 60 to 51 you've had industrial production and that's the good stuff because that's in the united states and it's weaker abroad, and so i think the key here is there's risk to the downside in economics and that's obscured by all of this conversation on short-term news flow >> they're getting more cautious on the markets and is it causing them to wonder where the markets end the year >> i don't think so. i'll tell you what i wouldn't be doing. i've been on the show before where the volatility goes higher and i say if you'll want to buy into this volatility and this is the one time in a long time i'm saying i wouldn't be buying it right now until you get this data to stop deteriorating so if you see more downward pressure interest rates and inflation, i would be holding off for a better opportunity do you think this all resolves itself fine, yeah, but i don't
think you'll be buying today and the reasons have been so bad and it's because of this china tariff information since last march. the reason why things are slowing down is because of what's happening between the super powers. >> first of all, what's the big issue? we had a huge boost to the economy coming from the tax cut, coming from the spending bill and that's rolling off and that was probably, you know, two-thirds of the weakening of the economy is in fact that we're losing that. why is it that the rest of the world is weaker? because they didn't have the boost they were losing is this trade weighing right now, how do companies have a long-term capital commitment on retooling a plant or deciding whether to put something in one country or another, and i think that they have no choice, but to sit on their hands, but i think if you get beyond this, what the reality is is that it has to be
about the economics and right now whether it's trade or something else, the economic data and interest rates and inflation expectations are just sloppy do i think this works out fine yes, but i wouldn't be going and jumping in today if we have a tiny pullback. >> as a trader, whenever you see the market's got it wrong i'm thinking about it right, you're usually wrong. >> i'm not saying you're wrong. >> okay. >> but when you look at the market in the last couple of days does it make you feel like the market doesn't care about the internals right now and it's macro? >> in the near-term the news flow will dominate everything and what's really very hard to do is to say if we simply put aside the fed and trade what would this thing look like i think that's what you have to do because if anyone thinks they can predict what donald trump will do with mexico, i'd like it meet that guy because my confidence on that is whether or not we'll get one move or three moves. >> impossible.
>> how do you know what the market's telling you because you can buy and sell in the futures market, four fed rate cuts is what the market's saying if you have one or two that means the market will be disappointed and that means it is offsides in terms of interest rates. >> jonathan, good to see you >> the issue is this, and we know we have a fed meeting coming up and the fed funds futures are pricing a 25% chance of a cut and if they cut that web a big surprise and that's not something that investors of risk assets would feel favorably about and especially our last month's jobs data is a huge surprise and i think surprise rate cuts in the next couple of months is very bad for equities and when you think of the double top that i have and the 2945 and i think there's plenty of room to be around, 2600 and we'll get a chance to buy it at jonathan's levels if things bottom out toward just $3,000. >> what did you do today it was a let of trimming
when you see the markets move around like we had and we had a lot of great trading days and when i say algorithm and trading and when we're moving up going 500 plus points in just a few days and they create the opportunities to take off some of those positions and that's exactly what i'm doing the one thing that i actually added to today was the gld you know it's something that the guy knows a lot about including the arabs market we've seen the stocks and is that an area where people are trying to flock to. iechl not sure i can only see huge sums of money. >> check out the action with beyond meat and zoom video and we have the details next and the fang fallout the group of stocks all spiralling downward and one top technician says they're dead
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♪ ♪ ♪ welcome back to "fast money. we've got a special earnings whip of shares of beyond meat and zoom video, digging into beyond meat while deirdre bosa is with beyond meat. >> stuff that isn't in the earnings report that the company went over. they are seeing 40% to 50% repeat rates of the beyond burger and in certain markets they don't have a whole lot of information on customer repeat, but they are seeing some of that, that's what they've told us the company says q2 and q3 will be the strongest quarters of the year they will account for 55% of net sales. so i expect to see the changes in the way the analysts have laid out the year so far and it's tripled manufacturing capacity since last summer and when asked about how it is having full-year guidance that goes beyond $210 million, here's
what ceo ethan brown said. >> we're being very conservative i view this as a floor i believe that it's important to note that we really don't count in our forecast onboarding of customers until we're in post-trial distribution. >> that's important. they don't start counting that in their guidance until tim horton's have been completed and ethan brown says they have several tests coming up that he cannot comment about and when those tests are completed they will fold it into guidance and fresh out driving frozen it's all about the fresh especially beyond burger they quit having their frozen chicken strips in the first quarter and that's why frozen sales fell expect more changes, more products they'rity rating as they go. he talked about something that he called the manhattan beach project which is a so cal project of the manhattan project where you have scientists in there constantly tinkering and
they're trying to get new protein sources and trying to drive down the price of this stuff so it's cheaper than meat and he talked about growing international demand, europe, south africa, south korea, parts of south america, but really, guys, the story of this particular earnings report was this huge jump and the gross profit margin and they really do believe they can get to ebitda break even by the end of the year >> wow all right, jane. great to see you in person >> jane wells. >> great to have jane onboard. >> i wish she were here? she should be physically here. >> that would be amazing >> what do you think of beyond meat >> joe asked me the same question and i would say it again. last night he said what did you do the stock ipoed and opened at 46 and even if you bought it at $50 a day you're up double take half off and you're in the stock for free and i stand by that what do i say now? you talk about scientists making your food now. think about what she just said,
manhattan beach project. >> have you rdz the ingredient list on this >> it's want a pretty situation for viewers at home. >> which is what you're talking about, once you did a deeper dive into what they're made of it will be worse for you than actual meat, but that's not the state we're in right now i do think they have an incredible amount of competition going forward, but it doesn't seem to matter to them and 50% of net sales are in supermarkets so i think guy's advice is to sell and sell and take your chips off the table. >> what about the possibility with qsr, with companies like burger king. they have the whopper, the special whopper what about a deal with mcdonald's or someone like that down the line? there are possibilities that do exist for this company. >> do you think mcdonald's would like that same -- >> does mcdonald's do a deal with somebody, maybe not the same vendor. --
>> i think there are possibilities that exist out there, that all being said, to your point, you've got to take some of that profit off the table and that move in the options market and mike ko talked about it the other day and i think mike totally nailed it i think he said 12% to 15% move and the stock's up 15%. >> let's move on to zoom earnings and that stock is also soaring in the after-hours session and deirdre bosa is in san francisco. >> pager duty and both of them are continuing their climbs and that's really widening the gap further between their successful ipos and uber and lyft which continue to struggle since their debuts and zoom is up more than nearly 10%, i should say in the after hours aside from continued profitability and the company is attracting bigger customers that are spending more money and the group of customers spending more than $100,000 in trailing two-month revenue and it grew 120% year over year. the analyst said the results were really strong and he noted that zoom is also growing its
wallet share inside of those big customers quickly. >> he wants to hear more about the enterprise sales on the call and now shifts because it's a public company zoom has quickly become one of the most highly valued tech stocks on a price-to-sales ratio. paid your duty and another public unicorn has taken off as a public company and continuing that streak in the after hours and it is currently up more than 2% on the back of its results and it has given up some of its earliest gains as the analyst call kicked off. >> deirdre bosa in san francisco. >> you nailed it at the very end and it's one of the most expensive companies on the price to sales basis and here's the thing and this is something that's the guide to ebitda positive this company zoom is a positive and when they were going through their roadshow about a month or two ago, and here is a company that, yes, has a very expensive valuation on a price to sales, but if they can start booking
real earnings, then it can grow into that valuation and it is a well-run company and in talking to a lot of investors who were on the whole roadshow thing that were going on in the last few months with a lot of companies that were most impressed with that company >> is that something that concerns you 25% sales growth for the next few years. >> just like all these other cloud-based enterprise focuses. >> do you think this even existed, though? apple has face time? how does this even exist having said that, i don't think there's a need we just signed up as a company and we spent a ton of dough on this and it's something that you would think that no one wants to collaborate online and people want to text and people don't want to be seen and people are out of the office and they work remote as long as that is going on and people on all sides of the earth that want to chat. this thing makes total sense >> we have a conference call twice a day for the show >> can you imagine if we zoomed it
>> i don't know if we want to do that >> he's not wearing pants all day. >> you say that and people -- nice slacks on that's true. >> he does have slacks >> all right we have to take a break. i'm melissa lee. you're watching "fast money" on cnbc, first in money worldwide here's what's coming up. >> that's what fang stocks have looked like this month and one technician says the group is dead money except for one stock. he'll give us the name and the trade. plus -- >> sure, greg. illinois just became the 11th state to legalize weed and it could send one hot pot stock blazing higher the ceo will be here to explain. there's much more "fast money" right after this
welcome back to "fast money," the fang's fall from grace. down double digits as washington regulators target big tech those declines amounting to half a trillion in lost market cap as the scrutiny grows with google parent alphabet taking a hit just since april so are these stocks dead money, pete >> i don't think they're dead mono p money and any time it's regulatory issues and it's something concerning because if the government decides to get involved that does change the equation it's no longer how the companies operate, and it's how the government thinks they should operate and that's more concerning to me and i'm more concerned and rightfully so on how they make the most sense to
me facebook is probably next. netflix, on the other hand, i don't see that as being as big of an issue because i see there's less competition and i'm still long netflix and i don't plan on getting rid of it any time soon. facebook is another one where i'm keeping a very close eye on it, but i don't think it's time to jump just because it's gotten pushed out >> i'm more of a maga guy. what's interesting in this whole conversation is that microsoft is not going to have those same headwinds and the relative strength by microsoft is just crazy. i just want to say one thing about netflix and it's interesting to me and that stock has been rangebound and it's shown this relative strength, and it's come back down from the year-ago levels and it doesn't seem too worried about the disney threat. >> our next guest says fang is de dead money with the exception of one stock. todd, what are you looking at. >> melissa, let's take a look at the original fang here and what i've done here is taken a
percent change chart from january 2016 and this chart struck me. so jan up '16 is somewhere in here and this is the zero line, right? up to today we have four stocks, and obviously, we have the haves and the have notes no surprise, we have netflix, amazon, facebook and google. google is only up 30% to 40% from 2016 and it's amazing where netflix is up by 225%. so what we'll focus on and dan was mentioning relative strength and let's get off of this and let's just take a look at the fang, and this ny fang index over netflix and before we do that, i want to make another point. a lot of people are talking about the underperformance of fang in the last couple of months and it's been underperforming since between 2015 and if you put the nasdaq 100 on this, you will see that the nasdaq made a new high where the fang index has not made a
new high and you've been underperforming for a year and a half now and i think that's pretty impressive and dan hit the nail on the head here and this is netflix in blue and showing relative strength to the fang index and it is quiet and it is in a range and the market is in a lot of volatility right now. so if things were to stabilize and if this was not just a short covering rally and above 380 and very easy to say and that was one of my talking points that's handled the disney news and i would expect the bottom to fall out of netflix so it might be a breakout trade through 380 and you get the round number and the stocks will go off and i think i'll take a shot there todd, does the trading range in and of itself make you believe that it will break out or could it be in a range for a very long time >> especially a volatile stock like this. so, yes, ranges will end especially in the massive swings in the broader indexes and the fact that it's not breaking down, yeah, i do think that we eventually will break which
that's not going to happen todd gordon, trading analysis.com that's a fair point. trading ranges have to end do you believe they'll end to the up side or to the down side? >> it should end and it should conclude it to the upside. >> it's not much of a headwind for it and they get caught up on this and every time you should be a buyer on netflix and there's no trade influence for netflix and when you look at fang stocks there's nothing on congress or capitol hill that should affect netflix. i think they get thrown in, and every sell-off is a buying opportunity where dan started the conversation about disney. i think people will just have a bunch of these little packages where it's streaming and they have $10 here and $15 a month there. so i don't think disney is saying that people won't have netflix and they'll have both. >> i own disney and i own netflix. at some point in time disney will start to really be something that will be a thorn in the side of netflix i think that's down the line and that's why i think you can own
both because they have other factors moving into the upside and netflix, i have to tell you something, that competition will be real and there are so many dollars that can get spread out in the streaming world kate was on the conference call when you brought up disney >> it's remarkable how well he was on the conference call because we do it whilest the halftime report is in progress >> with that said, though, it is the strength of disney that's been pretty remarkable given the move we saw from 118 to 136. you had a huge volume day when facebook traded three and a half times normal volume and it was a 50% correction of the december 21st low and the recent high for the first time, facebook shakes out pretty well on the side >> we have to talk about apple in this conversation because what steve was just saying about net flishgs. th
they don't have to worry about trade and regulation it does trade on the trade issue. if that gets resolved this stock will want have the regulatory issues and that stock is back above $200 pretty quickly in my opinion. >> why would want they have the regulatory issues? haven't they already said -- >> i think tim cook has set the agenda and he's helped the regulatory framework of the way washington is thinking about their competitors. i think they think that they have the hardware and the combination of the software and they can dictate how their products are used. >> coming up, it is shaping up to be a cruel summer for crude as the commodity slips into bear market today and you won't believe how low one trader sees it going and the new streaming service. we'll bring you all of the details on that when "fast money" returns
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game. >> don't worry, guy, very simple we go around the horn and the traders will tell us where they think crude is going and it's either higher or lower straightforward. >> we'll start off and we'll discuss it how's that >> higher! giddy up >> grasso, lower. >> also lower. >> guy crud oil, we talked about right? higher or lower. >> denominated in u.s. dollars >> higher! higher >> there you go. >> the outers say higher and the inners say lower why lower? >> could you have scripted a more bullish market? you have iran and venezuela and dirty royal in russia and umpteenth amount of reasons why you should be a bare of it and yet it's collapsed yes, you could have a bit of a pop here and it breaks below 50 and it's 42 next what do you say to grasso about
that obviously crude should be significantly higher given what we've seen geopolitically or otherwise and now you have a fed about to torch the u.s. dollar and the u.s. dollar goes lower. >> and they've been saying that about the dollar as the fed has come in and the fed has gotten dovish and the dixie is down 1.5% from multi-year highs just the other day. >> on the dollar side of it, and i think the dollars will stay firm and i think these are safe haven situations and they'll continue to have this weakening data that we just had jonathan gallop talk us through in the a block and i just don't think that's bullish for crude right now. >> i raised my hand. >> very polite of you. >> i don't interrupt, and in school that's what we used to do >> there was a great group in
the '70s. do you recall the carpenters >> why do you bring that up? >> one of the great songs is "we've only just begun," and we bring it backs to dan in terms of the dollar going lower, we've only just begun. >> thank you, pete >> to steve's point, rates are down 1. -- you know, a full point in the last four months and one of the other thicks steve mention side if it drops below 50 do you think it goes lower. that was the if part of that whole statement. so if it starts to move higher does it go back up and test in those 60s? i would say yes, i'm with you, guy, because if you listen to mike wilson who sits here constantly he's like a pal of mine. >> he talks about the dollar all of the time and what does he say about the dollar, guy? >> it's going down going lower >> quickly
>> pallo mine was the ort in the episodes >> i'm with you, but i don't know where you're going. >> i don't think i needed to know that. still ahead, this red-hot chip stock is soaring and one trader said he'll spend $1 million, plus google taking the gaming world sbytorm with staidia. we have the details when "fast money" returns
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welcome back to "fast money," its new video game streaming service and josh lipton has the details from san francisco. josh >> so, mel, big news that could shake up the $166 billion video game industry and we got more details about google's new video game streaming service it's called stadium that will launch in november in 14 countries including the u.s., uk and canada with 31 games and 31 publishers starting today you can pre-order the founder's edition package and that includes hardware, and streaming device and three-month subscription and that will run
you $130 starting next year google will offer the stand alone service itself on the of it, phone, tablet with the chrome browser as well as pixel 3 and 3a smartphones and there will be a free service coming, too, and google doesn't see this as a subscription service gamers should expect to buy, not rent these games and the big idea is giving gamers the ability to stream complex and graphics-rich games right to their devices and no pricey pc or console needed so is this going to prove an immediate hit? sebastian not so sure and the tech what we see from google is not impressive and the company in his words, lacks punch and remember, google has plenty of competition here amazon reportedly pursuing the same tech and we know that microsoft is, too, testing similar particular tech with its own employees right now and the software giant is preparing to launch the first public trials
lat later this year. melissa, back to you >> if you were a tech giant going into the streaming service and going into top competition and the good part of this would be good content, what do you think you would do >> i would think that they would buy someone, either an lech ronnic arts or take 2 or activision and lech ronnic arts is outperforming the space and i don't know what that service even is. you get the ability to stream games and that to me is confusing and i'm not sure that's a winning trademark already and you should get a host of games or library that comes with the $10 a month and it's not a real streaming, vent and it's somehow taking $10 from each month. >> right i'm not sure google is in this for the stream of revenue. >> it's a broader strategy when you think about what accelerated amazon's space, and when you
think about youtube, that's a huge thing and gamers are watching how-to videos on youtube and it makes a stickier ecosystem and it's obviously content and that's whatting gooel sells ads off of is content and to me, i doubt it will move the needle any time soon. >> guy >> the stock has bounce and i think that's where to be and the loser and this clearly continues to be game stop which was a $45 stock in 2016 and closed at basically with a five handle today and probably headed even lower than that. advanced microgetting an upgrade sending one bull stampeding and one big bet. why don't you walk over to the plasma and show us the action. >> what do we call that one? amd and it's been a massive outperformer relative to the space and it's up 72% of the year and option volume went crazy and the call volume was two times that of puts on a day
like mel just said and morgan stanley, and a prior bear is turning bullish. here's the thing, with the stock's performance, it still doesn't have all of wall street analysts onboard here and there are more holds than there are buys in this thing and there was one trade that caught my eye and the it was a bullish rule and two weeks left when the stock was at 31.50 before noon today and there was a searle of 8,000 of the june 30 calls to close, but they rolled that up to the june 32.5 calls for 1.04 and those break even at 33.54 and 6.5% from the trading price and it closed up 8% on the day and we have a chart here and it broke out of a really nice consolidation and this is what i was talking about, about this relative strength and relative to the smh, the etf that tracks the semiconductor space which is down 60% from the all-time highs in less than two months and it
was on big volume and this was the prior multi-year high just below 35 and let's go to the four-year chart here and this thing has obviously been amazingly volatile and last year it broke out above that level and it nearly doubled and we did have a 50% peak to trough decline and this thing has been moving higher here so what are people excited about. the company a couple of weeks ago announced they have new desktop chips coming out and they have server chips coming out in q3 and they just signed earlier this week the licensing agreement with samsung with mobile chips and they have a lot of things going on and we know that intel has been tripping up on these things and the momentum's here when this company reports at the end of july if it's back near multi-year highs you may want to play further momentum with the fine risk that this trader was doing today. pete >> the biggest concern i have is these guys are stepping up and you know what? i think amd will finally move and just last week it was trading at $27 and i jumped in and i'm out today. would i want to get back in?
maybe. i think you're starting to reach because the stock has made this move up towards 32 and it was just trading $27 a week ago and i think i'll hold back to see if there's a pullback >> check out 5:30 p.m. eastern time and get your fix on cnbc.com illinois is passing recreational marijuana and the ceo of one of the biggest pot companies will tell us who could be giving the tell us who could be giving the green light to cannabis 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 eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
the flexible class schedules d me tremendously. allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through.
let's pause the internet on their devices. wohhh? huhhhh? [ grumbling ] all: sausages! mmm, mmmm. bon appetite. make time for what matters. pause your wifi with xfinity xfi and see the secret life of pets 2 in theaters. welcome back to "fast money," pot stocks blazing this year and check out the names up more than 50% and things could get hotter for these pot powerhouses. illinois passing legalizing recreational marijuana use the co-founder of klesko labs and one of the companies headquartered in illinois. charlie, great to have you with us >> thanks for having me. >> what are you doing to gear up with 2020? >> the supply that's needed to
meet that demand you're talking about a state that's going from a relatively conservative medical program and currently to the fifth largest state in the country, 13 million, that everybody over the age of 21 will have access to the program and we think it's a 10 to 20x over the current size of the medical market. >> illinois is one of the biggest or will be one of the biggest marijuana markets in the country by a state and i'm thinking of the example of california everybody looked to california thinking that will be one of the biggest markets in the country and the tax revenues were disappointing for the first full year of legalization in 2018 a big part of that was this thriving black market and a big part of the piece is for pot companies and the notion that you can convert every dollar in the black market to a dollar in the white market and the legal market >> sure. >> how do you view that in illinois and the rest of the country, for that matter in terms of that thesis and where we are in cracking down on the
illegal sales. >> great question. one of the biggest distinguishing factors between what we saw in california and what we'll see in illinois and california put regulations in place for the first time illinois already changed the way that medical cannabis was done and it created gen-2 of medical cannabis which was compliance focused and it's a very controlled program and a very professional and well-run program. so we're building on the back of that type of a program and the legislature did a great job of marrying increased opportunity, and increased access with the points of sale while at the same time giving the current operators and the current infrastructure the opportunity to be first to market because we have the infrastructure in place and flip the switch gen-1 2020 and get people up to speed which they will and the current infrastructure is there to take care of it from day one.
from the illicit market standpoint, illinois doesn't have its own inherent illicit ma market and that's all imported from out of state. as soon as we get launched we give illinois -- >> unlike opportunity where they actually grow the product there, in illinois it would be easier to get rid of the elicit market. >> where are you facing challenges and where do you see the most opportunity in various states >> our thesis lies in that we look at the regulatory strucker and we like regulation and we like there being obligations in the operators and controls in place and then we look for big pop lagss and with the 11-state footprint, of the most strategic value and massachusetts with adult on. >> is new york going to happen independent. >> that's one of the things about illinois pushing this off,
and the first place to pass the cannabis program through the legislature and in new jersey and likewise is can you do this or does this need to be a ballot initiative illinois has shown them you can do this through the legislature. thank you for being with us. grasso, you've been trading this space. >> b of a upgraded it. >> double upgrade. if you look at it it's up over 50% and charles' stock is up over 50% as well you have to buy the top best in breed maims and tnames and they that will gobble up all of the smaller names. instead of sticking with one name, buy a couple of these and make the cbd and etf or pot or cannabis etf >> up next, final trade.
final trade time pete >> they're coming after the yellow medal get long, gld, giddy up. >> steve >> electronic arts >> dan nathan. >> i know guy loves these big box retailers. >> which one >> most of retail space just looks like that. i think sell the xrt on any rally. >> the band's coming after me for final trade, and a mea culpa. it was a honeymoon, and the twitter people are killing me. >> ralph cramden and jaen
meadows. >> you're trying to fill my head with costco. do you remember carter worth said costco? smarter man. >> that does it for us and see stu back here at 5:00 for more fa "mad money" with my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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 make 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 we too often invest for the day. i hear people talk about what is working, and in the old days