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tv   Fast Money  CNBC  August 17, 2022 5:00pm-6:00pm EDT

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elliott management through $2 million in an investment there. next year their eps will start to grow 20% plus and at a 20 price-to-earnings multiple. seems like a goodbye to me on a recovery story >> yeah. one time a very extensive stock. as you mentioned, it has come back down toward, i guess, a broad market multiple and not paying too much of a premium. great to catch up with you. thanks so much. >> thanks a lot. that does it for overtime. fast money begins right now. three right now on fast, so little. that is the warning on one of the most widely held stocks on the market. the name he is getting sour on and what that means for the rest of the market. plus, the dow breaking a five- day win streak. at least one top economist thinks the central bank is making all the right moves. spin-co chief economist joins us with his take on what is next for the feds. later, beyond belief. shares of bed bath and beyond dropping after a new filing from
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ryan:. what he is doing with the stock and how the markets are responding. we get some answers and we also get heated up about this one. this is fast money. on the desk. we start off with the chart master's big warning on apple. his latest note calling an end to the tech giants a week running which gained nearly 30% and climbed within 5% of ts all-time high. let's bring in carter worth of worth charting. carter, our viewers know you quite well. you are a man who is level in your motion, yet this call went out today and it had exclamations in the headline. that really caught my eye. walk us through. >> while, no explanation points. i hold off on those. sell it all. that's certainly dissident and emphatic.
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here is the thing, we know, before we look at the charts, we know that makes the market is just exactly what you see in apple. the largest stock out there at 7.3% of the s&p. it's covered by some 40 or 50 analysts. there are people whose twelve- month price targets are as high as 220. and as low as 140. from top 10, top five brokerage firms. how can one man or woman or one analyst think it's worth 220 and one think it's worth 140? the same access, the same information, the same spreadsheets? here is a technician, i'm sure the technicians -- my thinking is this technician is just too steep, uncorrected, almost unnatural. let's focus on angles. the first chart is a comparative chart. it is just apple versus q2 two. it's a one year comparative
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term. we know the spread is what it is but the numbers are apple is up 16, 17% and the q is down 10. if we take this back further, take a look at an 85 year chart. we have the same spread, meaning apple is a big part. there is some autocorrelation. applets 340% q up 130. the tenure final comparative chart we know that, again, apple has more than doubled the other large 100 stocks in the nasdaq 100, represented by the q2. the here and now gives me pause. let's look at two charts. what we know from the absolute low, june 16, apple is up 35%. and the angle of the line is becoming increasingly unnatural. no givebacks. not even a down two day sequence. so, not only do we have that unnatural lined, we are up against a downtrend line, which is annotated by that on the screen. it's also otherwise known as a
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megaphone. forget about that kind of talk. it's a move to a difficult level. if you pull this back and do one more chart it is just putting this in context of going back to a pre-pandemic wipeout. so, again, people say you are stable going into it. righted in tight it shows reasons not to. my thinking is, this is almost the face of the fear, people are hiding or wanting to be in this particular stock. maybe it's explosion or the sprints of the stocks in the q2 q. there were only 10 up today. apple leading the way yet again. just a little too popular, a little too happy, a little too good. >> could fear mccarter, in this market context we are in, keep that unnatural line unnatural? >> well, i mean, it certainly can get -- the expression goes
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over borrow, oversold, and stay that way for a great time. you could look at a rsi, a bullinger event. or one can just look at where this is in relation to where it has been. a move like this is hard to sustain much longer. at a minimum, you take a little off or if you have the dexterity you try some options to do something rather than just blindly sell off. >> we had to do a correction here. there is no exclamation point. i looked again. i felt emphasis in carter's tone in the notes. it came through the email. leapt out at me. what you make of this? >> i got this email from work charting today. i medially thought about dexterity. okay?
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there exclamation points in my head. i have been looking for reason why this stock should correct a little bit. i agree, that slope is unnatural. when you think about that 35% ride that has pushed this valuation -- i know tim will have a lot of say about this -- 25w■ a quarter on an out year. one quarter away from their fiscal 2023 earnings and revenue guidance. they are expected to be mid- single digits. when you think about how unnatural of a move that is maybe he gets back to that 182 all-time high on january 2. maybe gets back, you know, maybe only 20 high in march or so. i think the risk reward sets up really well to the downside. i bought puts in september looking at a month. if you look at volatility, the price of options right now at 24%, in line with the historical ball. how much it's been moving. that says to me that directional bets using options long premium look very attractive. that's what i'm doing. i'm looking down and risking by 2% of the stock price over the next month for a 4% breakeven
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to the downside. i like that risk reward. >> i have been flat on apple. got around 164 on the one way down. i'm going to echo a lot of support for the same call here. again, you had 175 to 180, highs in december. in january and then later in march. i think there's a ton of resistance out there, but it's a 27 times but this is a company that part of the argument here is this is the greatest pull forward story and history. i know we talked about covid has bins and those that have been in the sweet spot. i just think that apple and apple demand is not something we have heard anything about. we heard about supply chain, china, this and that. we have heard a little bit about the pressure in the services business and where we probably won't see some of the same recurring revenue. this re-rating in apple has been all about the services revenue over the last three or four years. you have been asked whether that can be different on multiple i struggle with it. s&p by 16% since that june low. the only side of the is that worries me is that if you look at cash levels, whether looking and reading bank of america's
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fund manager server or -- we are still a very high cash levels, leasing the institutional community. this is a stock, again, you don't get fired for missing the way down, you're fired for missing the way back up i think the manager still feel like they have donis. >> how about the reports that apple has signal to suppliers that it plans to sell as many phones as it did last year? and the cash. the cash on the balance sheet. didn't this stock have a premium, because of how torturous its balance sheet is in this market environment >> yes. you should have a premium. obviously, they have a gigantic cash forward. all of that is known and should be replayed and reflected in the marketplace. that told us they could sell as many phones as they could. i think all of that is reflected
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. normally, i don't like to trade around a long-term holding. i actually, looking at the multiple tier, -- remember, a big part of this multiple is hardware multiple, which should be much lower. that means you're getting a much higher multiple for the services. in this environment with rates going up, i feel like the multiple is too high. i look to buy some puts instead of selling it. if you're a long-term holder you can buy puts and that -- you don't need to realize a thing. it stops the:00, but if you are already long-term it doesn't matter. ultima, when you sell it will still be long-term. it's tax-efficient for me to buy a put in i think that's what i'm going to do. because it has come too far, too fast. >> we are on television right now. >> i know. i'm ashley putting on some hedging strategies >> it is after hours, so you can do that on certain trading platforms, apparently.>> i just cracked myself up. >> i know. apparently >> if he didn't know what
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company it was an you just had all of those -- you talk about the company with a 6.5% eps growth, maybe. four point eps growth, maybe. 4.5% revenue growth, maybe. the aforementioned 26.5 times next years numbers. and an environment where it just went up 34% in basically two months in a rising interest rate environment while the fed is continuing to raise rates with a consumer that is seemingly levered at $1.120 now in credit card debt, unemployment probably going higher. this is a stock that, believe it or not, does go down as well. we have seen that a number of times over the last years. this level makes as much sense as any. please, don't ask me on twitter. i can't do it on this thursday night, but i'm with carter worth on that one.>> it's not thursday. >> so we can go ahead and ask you. >> i'm kidding around. >> in terms of the bricks in the bear case for apple at this point, tim, you mentioned the
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greatest pull forward story. i'm also worrying about the consumer. if you are a consumer you love your iphone. you will do anything but you will not eat a meal per day and keep your iphone and cell phone service. at the same time, you might cut back on services. >> i think that's right. i think, again, a lot of these apple services were even applecare and people things thought when they bought new devices, these have a run time. maybe you can argue until had to reinvest 119 things thought when they bought new devices, these have a run time. maybe you can argue until had to reinvest $119 to get the two year warranty. i just think that the consumer at some point has a watch, has an ipad, and air probe, a lot of these things. i think the iphone can continue to be almost a subscription revenue. we have seen with their asp, they're getting higher number >> that's why the stock trades at the premium it does. >> again, it is becoming a utility. is a luxury utility. not something. i think where they have done
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the upgrade program it's not something people think of. when we talk about the average selling price most people are not going out and paying $850 or whatever the asp is right now. i think with $1.8 billion installed base decibel case for the services you are going to continue to grow that starbase and have the higher blended multiple. right now a 43% gross margin. let me say something, there are very few hardware companies and history of the world who have been able to maintain that. this company has been growing up because of the services, because of the install base. i'm not bearish on the company. i'm bearish on the stock but i think that's important, because the stock makes no sense in the context of the market environment we are in right now. >> isn't that the market call? at the end of the day if you are bullish on the market you get out of the way of apple moving higher. >> in mansion when i started buying the to to qi was buying microsoft and apple and some of these big names down 30% and i thought it was a little much for them. i don't like the straight move higher 35% or so. i also think it's a little
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ringing of the bell. apple is basically down 1% on the year right now. i don't think anybody in may or june thought it was a high probability of that happening. >> i like via idea of differentiating. this is a call on the stock as opposed to icon the company. at the same time, sounds like you're skeptical of some of the aspects of the company in terms of hitting forecast. i never believed in the supercycle >> like, 5g, i have been saying this for 5 years, was not a supercycle. it's just a thing people do. they can gravitate for the next technology. we have never seen that sort of thing. this new 14 pro coming out on september 7, it's going to be very much like the 13 pro.>> i get a little hot. >> listen, i guess the point is what is your time horizon? in about 40 minutes jim cramer on is going to say don't trade it, own it. he has been right about that. the stock as 30% peak to trough climate over the last seven or 10 years or so.
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if you never did anything and your backyard $175 you are fine. it's the sort of thing you don't look at the volatility of the stock picks that karen, are you bearish on just the stock or the company as well >> just the stock. i find myself in the uncomfortable position of agreeing with dan. >> that really says something when karen agrees with dan. >> and she pointed out the three times it has happened in the last decade. >> another headline here. let's move on. we have cisco shares in the company network higher after hours beating estimates in the top of the bottom lines in the fiscal fourth quarter. frank holland has been listening on and join us now with all the details. a, frank expect hey, melissa. higher after the earnings stock carded at 4:30 sometimes. guidance was makes. revenue higher-than-expected. profit, however, soft throughout the quarter and the full year. on the call that began at 4:30 chuck robbins, the ceo,
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addressed the supply-chain issues that have led the company to after five new suppliers. in some cases redesign product . he says he expects that to lead to higher costs in q1. as the year goes on he expects those new components new suppliers to ease as the fiscal year continues. investors appear to be encouraged by some of the forward-looking financial metrics, including record remaining performing acquisitions at $31 billion. that something robin says gave the company increase confidence about their guidance. back over to you >> squawk on the street. i almost forgot the most important part. breaking down the corner. >> thanks. frank holland. guys, your take on the quarter?>> the guided revenue four to 6% is higher than previous guidance. it's a fine quarter. there's nothing wrong with it. it's not expensive stock or a particularly exciting guide in this environment. the fact that it went from 60 down to 41, 42 pretty much at a
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straight line and we are getting a bounce but i think this balance can continue. i don't think it's a bounce that is, in my opinion, i don't think we will revisit 60 anytime soon. i concede in the low to mid 50s. >> mesh is appropriate. from 1000 feet i will say this is kind of like an apple story. this was a hardware company that has been moving into software and security. i think these are the reasons why there is multiple, which is cheap relative to anybody. it's interesting. >> bed bath and beyond bloodbath. shares sinking in the after hours. i have all the traders up in arms and all of that story next. ca> chief economist paul mcrthy will give us his take on rate hikes and inflation. next. don't go anywhere. back in two. u're a l aver. have a nice day. i'm so glad we did this. i'm so glad we did this.
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welcome back to basmati. bed bath and beyond taking a big leg lower in the last few hours. now 17.25% right now. the stock had been up as much as 45% earlier in the day, but started selling off after a regulatory filing by brian:. filing an intent to sell as much a 7.7 million shares of the home goods retailer. karen has been taking a look at
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this filing. just yesterday we were talking about him buying way out of the money calls in the stock and the shares went sharply higher on the back of those purchases. >> yeah. i don't know why that came out yesterday, because that was in the original 13 d. he spent not a lot of money to buy those. if that's what he started selling -- he has 11.8% of the company. just looking through this filing i'm not sure where he sold out what price clearly, way up from where does, but actually, he did pay mid teens for his stock. it wasn't quite as much of a home run as i was thinking. i was thinking he actually would have to forgo some of his profits, because he owned more than 10% and sold some of that within six months. there's a short swing profit rule. i don't think it applies here, because i think he may have
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sold it at not very different of a price. that's sort of interesting. from the low he has made a ton of money. i'm not sure all in what the sale price is. i'm not sure how much money he made expect let me get this straight. the disclosure that he had bought all those call options january 6 80 and 75 strike calls, that was made in the 13 d that was stated, how long ago? we traded it yesterday. >> i'm sorry >> four months ago.:4 months ago. okay. somehow it came into circulation yesterday. it moved the stock higher, regardless of when it actually came out. people are latching onto that idea yesterday and thought it was up a lot. >> he has impacted -- >> there is no evidence to me that he did anything in those calls yesterday. >> all right. here is a deal. in march of this year, okay, assuming he was building a
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position he launched an activist campaign. he had an agreement with the company. they the three have is the representatives on the board. the stock shot up. it came back in and when it was $5 after that. whatever he was investing fundamentally wasn't working. at least in the near-term. the idea that he bought up a bunch of calls knowing at some point he would disclose it come in knowing that would maybe get this, i don't know, activity going in the stock and options and then a day later after acknowledgment of the option he unloads it. listen, if you're a hedge fund, pine. have added. buying things, having them go up and sell them when they're up. if you're an activist investor and placing people on the board of this company who have a fiduciary responsibility to help management guide this company to a successful outcome this doesn't seem appropriate. >> karen, wanted to add something? >> yeah. i don't think that's what he did. i think cbsn denver that information was out there. why it was all just so
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exciting yesterday, even though it was months old, i don't know. if you're thinking he did a pump and dump i don't actually think i agree with that. humid this filing months ago >> it's interesting, the timing. i'm not saying you did anything at all, but it's interesting the timing that the stock has this huge pop yesterday on information that is old. it somehow -- and then he sells. >> we forget the bed bath and beyond has had many, in the last two years, you have had a number of these it squeezes in the stock. short and over 30% sometimes and sometimes over 70%. there's a lot of dynamics at work. ryan:is almost at the spark here. the debate is, does he know he is the spark? that's where there is a fiduciary responsibility to not move the market. we are not saying that right here, but it's, clearly, was a
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strange confluence of events yesterday. >> i feel bad for retail traders . what a roller coaster this i . i guess you know what you are getting into, but still. >> do they know? i think some people know what they're getting into. i think that's exactly right. that is who winds up getting hurt and all of this, i think, the retail investor. this stock has traded, what, i will be close to 600 million shares over the last couple of days. my sense is the lines at share of the people that bought this probably bought it at higher levels than its trading now. trying to tread lightly here. i'm not suggesting, i don't think any of us are suggesting, he did anything illegal at all. in my world it doesn't pass the smell test. i will throw that out there. it seems a little bit much for me. those calls were never -- you know, i think those calls were bought thinking that here is the chip we can play at some
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point, understanding the impact it would probably have on the market. i think that to a certain extent what dan is and. were not suggesting pump and dump. those were low-cost ways to get things moving in your direction. >> how different is this than a lot of the main stock activity we have seen over the past couple of years? there was an argument we are saving amc, we want movie theaters. there was a groundswell of emotion around the company. is that here with bed bath and beyond? i don't know, can you get your scented candles and potpourri and other places? i'm not sure. is this healthy for the market? this is a retail investor that has been emboldened in the last few years and has money to spend. we argue wasn't actively selling even through the worst of the market lows. or the institutional guys. maybe it's a pat on the back and we leave these guys alone. i'm not saying -- a lot of these folks have been making money in this market. >> it could be the retail investor was behind getting that disclosure out in the marketplace.
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>> his people leaked that. okay? let's be clear. that's how that got out. i'm just saying. here's the deal, the guy becomes this lord, because he joins gamestop and becomes the chairman there. that's a poster child for this thing. then he goes over to bed and bath in march when we see the stock to that. the stock doesn't work. and him had this whole activity this week. it doesn't pass in the smell test. >> karen?>> yeah. to dan's point, i'm curious what will happen the next time we see ryan:. this 144 the came out today, this says he started selling yesterday. >> after the option information was leaked. >> can you blame him >> yeah. >> who is going to blame him? all those people, you know, all of those bag holders who had the rug pulled out from under them. this has the potential to turn against these sort of folks
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too. >> we have seen this so many times. again, because of social media, because of reddit, because of chat rooms this is why you get pronounced and exaggerated moves. there's a lot of people involved in this trade. >> by the way, i'm sure a lot of retailers, retail investors, benefited and profited from yesterday's run, because of that information. it may have played a role in propagating that information. let's not discount that either. coming up, minutes many. affect signaling more rate hikes as a fight with inflation continues. how will the markets react? details next. we will see what else might be stacked against the chip. you are watching ft asmoney live from the nasdaq in times square. we will be right back after this
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welcome back to fast money. the dow breaking a five day win streak and the nasdaq taking hit, down by more than 1%. move lower comes as wall street digest the minutes from the feds last policy meeting. paul mcauley is from the chief economist and now teaches at georgetown mcdonough school of business. great to see you. >> good to see you. >> you think they stick to the landing here >> so far, yes. i think so. i think today's minutes were fully consistent with what tara powell had to say at the press conference on july 27, which is the first leg of this tightening campaign was completed. that first leg was what i can call the hair on fire or the
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expeditiously getting back to neutral. they knew they needed to get away from zero and get back to neutral as quickly as possible. and they did that. i think that's essentially what tara powell said back on the 27th. the markets celebrated. i think the minutes confirmed that. now they're moving into major probing into restricting, but not guiding us to specific large increases that become more data dependent. i think leg two is still to come. i think it will probably be another 100 basis points over the next six to 12 months. leg one is over and the markets were validated with the minutes today on the rally off the bottom. doesn't mean we are going to go at this pace going forward. but this rally based upon the completion of the first leg of the tightening campaign, i think, was justified. >> leg two seems treacherous as
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well when it comes to the economy. that's just from a layperson's point of view. they have remain sufficiently restrictive. rate levels are from sometime in order to control inflation. it sounds like there still some question over whether or not they got the situation under control. why do you believe leg two won't be, you know, won't have the possibility of hair on fire -- i'm not trying to say that i think that you should think there's a recession, but why can we take that off the table >> i don't think you can take recession off the table as a risk event. clearly, that's not what they are aiming for. there any for a soft dish landing. sometimes called a growth recession, in some respects but not an actual contraction and growth, but a contraction in the growth rate with an increase in the unemployment rate. that's what they are aiming for. i think they will be committed
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to getting interest rates higher at the policy level. i think they will do it anymore data dependent fashion and less of a shock and awe fashion. and that they will get up to, call it 3.5 or so. the important issue is i think they will stay there for a while. that was in the minutes as well. i think this notion that wall street is romancing the people be simply a.and then will come right back down is overblown. i think the people being more of a plateau as they bear down on this inflationary pressure over time. i think it's going to be difficult to get down to, call it, 3%. we can come from a present 5% pretty easy. i think they will want to bear down on it by having a plateau as a point to a point b. >> you said this is what the fed aims to do.
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what do you believe and why do you think the fed can do this? >> first, the fundamentals of the economy remained sturdy. i think a lot of the slow down that we are seeing now is taking the frost out of the economy that develops, because of the reopening number plus the extraordinary physical and monetary stimulus. i don't think there is something corrosive in the economy at all. that we got above trend. we got above potential. we got too hot coming out of the pandemic. and they are dialing back the heat. but we don't have huge excesses in the economy that need to be run ou . that would be consistent with a old-fashioned blood and guts recession. i just simply don't see that on the horizon. >> paul, it's tim. go hoyas. and reminding you everything about i know about macro and
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economy that you taught me in the mid-90s. what you just talk about, where we really are 100 basis points possible of additional hiking. is that the new rate and is at slightly above neutral? i don't think so based upon the inflation readings we have. is that the place to stop? >> i think it could be the place to stop. and the incoming data would tell you if that's the place to stop we should see signs that is actually restrictive. that it is putting traction on the economy. and that we are low trend. therefore, opening up some slack . i'm putting out 3.5 as the number where they will stop. that would be restrictive. this whole debate in the marketplace about neutral, in some respects, is talking way too much. i think the fed use it appropriately, because they print what they think the
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longer run appropriate value should be if they have perfect equilibrium in the economy. that's about 2.5. i think it's also true that what tara powell did was to say the first leg of the tightening campaign was over or put differently, they are no longer behind the curve. they're not trying to catch up or atone for their sins of being too easy for too long.. dev reached the point where they are neutral and they will keep tightening, but not with hair on fire, but responsive to the slowing of the economy. and they will stop. they're not trying to induce a recession. they are trying to induce some opening of an output gap, if i can be wonky with you, tim. >> thank you. for men that has great hair hair on fire is problematic. georgetown is lucky to have you. the feds would be lucky to have
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you. i will bring up the fact that the bond market -- what it will bring up is that they're going to try to, basically, reduce their balance sheets starting in september. $9 trillion. obviously, not all nine >> that's going to be a difficult thing to pull off in the midst of all of this, paul. >> i would naturally take the other side of that to trade with you. i don't think it's going to be terribly difficult. because, remember, there is a huge amount of excess liquidity in the marketplace. measured in my favorite way with the reverse repo facility at the fed, which is, simply, the banking system parking excess liquidity that was a result of the qed, because there's nowhere to go for it in the marketplace. that's over $2 trillion. the first two train dollars of quantitative tightening should have the minimus affect on the marketplace from a pure supply
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and demand perspective. i would not get wrapped around the actual about this whole qt thing going forward, at least for the first $2 trillion. >> great to have you. we hope you come back sometime. now of georgetown. karen, what you think? do you think that hair on fire recession is a much, much smaller risk now? do you feel better after these minutes? >> know. i don't. i don't really feel better. i feel like they still have a lot of work to do. i think that inflation is coming down and i think we have reached peak inflation, but it's still so far above where it needs to be. i think, you know, i read that two weeks ago there was no pivot. that was no pivot. i thought it was hawkish. these minutes say otherwise. i'm still in the hawkish camp unless we see inflation come so far down. i'm not that optimistic on that but if they have to put us in recession
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they will. >> yeah. i don't think that is their intent, to put us in recession. to guide's point about cutie, think about what happened to risk assets in the volatility of some of these largest assets we have seen it's 2022 since the feds acknowledged they had to attack inflation. we have housing rollover, stockmarket rollover, a lot of things that weren't particularly comfortable for the better part of this year. going into the back half of the year we might see qt have that same sort of affect as it did in the lead up to the end of 2021. when the fed did acknowledge that. coming up the former walmart see how and why he says small retailers could still see big trouble ahead. first, a dip in the chips. dropping today. what is behind this slump? we are all over that trade, next
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welcome back to fast money. another roughed day for -- a bigger drop in bigger market. nvidia could guide lower for a second time this month when it reports earnings next week. a matt materials, option traders are betting this in my slump will continue.
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tony wang has the option. >> that's exactly right. we saw almost 2 times the average daily volumes in a-mac. the option market isn't buying a larger than sual mood. about 4.75% going into the earnings event versus the average we have seen over the last three quarters of about 3.6%. we saw more bearish flow today versus bullish flow. an example was to enter contracts purchased for about $2.03. these are options that expire this friday. meaning this stock will decline by lease 4.5% by this particular friday. betting that we will see a disappointing earnings tomorrow. >> tony, thanks. tune into the full show friday. coming up llbi sammon has a warning for some retailers out there. the trouble he sees brewing next. don't go anywhere. back in two. you can e markets? yeah, actually i'm taking one last look at my dashboard
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welcome back to fast money. check out tall good falling more than 2% today after reporting a big earnings miss.
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posting a 90% drop in profit from your go. on the other hand, retail sales rose better than expected 4., excuse me, better than expected 0.4% in july. for more on the targets reporting let's bring it former president and ceo of walmart u.s., bill sammon. he joins us now on the fast line. great to speak with you again. >> how are you doing? >> good, thanks. there seems to be a difference or dichotomy between what walmart reported and target reported. do you see that gap as being very big >> yeah. i don't really see a gap. target decided to clean up their inventory and took massive markdowns. walmart did to a certain extent, but not much. walmart sales are impacted by their huge percentage of their food business and target didn't have that going in. i think that is the difference >> it's karen. thanks so much for being on. it would seem to be a big mistake they still had big inventory. do you think one should read and be optimistic on how the back to school and early fall
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and halloween sales are going? or will go, i guess? >> i'm concerned about the inventory levels. they are still really high. i think not getting enough coverage in walmart's report yesterday, midteens inflation. that's brutal. the consumer has got a real struggle to get through that. back-to-school is really critical. it's really delete into the fourth quarter where all the money is made in retail. target's position where they have cleaned up inventory seems like a little bit better place to me than walmart but they took a beating for it today. >> in terms of miming, it's walmart and target, which are the best retailers in terms of execution in the industry. if they are having this difficulty how do you impute this on smaller retailers? and retailers that may have entered this period in not as, you know, good shape? >> i think that's exactly the point.
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amazon is a beast online, between walmart, target, and costco on the physical retail there is just not going to be a lot of oxygen for people, particularly that those who came into the pre-covid thing with a little bit wobble. i think that's going to be a real challenge for them in the fourth quarter. >> bell, looking at you notes jumps off the page, department stores should no longer resist. talk about that. some people like to be in the store. >> i didn't say they no longer should -- i said they need to find a reason to exist. right now they have lost their reason to exist. it's difficult. they don't have anything that you can't get somewhere else. they have sort of lost that cachet about the shopping out situation, sort of experience has gone away. and pricing with inflation and
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the consumer being, you know, challenge right now, sort of puts them in the position that they have got to find a way back to relevance. >> great to get your take. thank you for joining us. >> you bet dix hills. >> bill sammon. a guy you are not reason enough for the department source to exist? you and your jeans. >> first of all, i mean, on the same size i have been, literally, since high school. number one. if you want to buy me jeans out there if you are in 30 4x 32. number two, the french have a saying for this. number three, target didn't get beat up all that much. if that's the worst take but that's not all that bad given the take today. i throw that out there. i still think dollar general is the best of the bunch in the earnings. >> they are still higher from when they started the day yesterday. i mean, yesterday they passed and lost a little bit, but they're still up, overall. the thing that got me was why
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not -- they stuck by the forecast for the back half of the year, which makes me think they are super confident about the back half of the year. why not take the opportunity to lower? >> or say nothing. we talk about this all the time. it's not a bad environment to say things are really moving quickly and we just don't know. i agree. i thought it was up too much yesterday. i really thought it was going to give back more than it did today. i thought that margin was terrible. they told us last time we have a very wide range around our margin. we don't know if it's going to be plus or-, you know, several hundred basis points. well, they were right. they had not a good handle on the margin. it was really bad. hopefully, that's because they just throughout the baby with the bathwater and the amatory they're left with is going to be good. i hope that's the reason for their confidence. i expected it to be delmore on that earnings release. coming up, not just soccer nst mabefa iy angry about elon
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musk's latest tweet. the job from the tesla ceo that could have put him in the penalty box. we have the details when we return
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alleys one billionaire is interested in manchester united. one of britain's richest man, jim radcliffe, announcing today he wants to buy a stake in a soccer club in hopes of eventually taking ownership. this comes less than a day after elon musk joked about making his own deal. the tesla ceo raising eyebrows after his initial tweet saying, i'm buying manchester united. you are welcome. musk added later that it was, in fact, a joke. he is, quote, not buying any sports team. shares of manchester united 7% higher today in the wake of those rumors. if you're the fcc what would you do >> elon seems to exist in his own lane of regulatory allowance. i'm not sure. i thought we called it football, not soccer? >> you are asking me? i don't know >> your point, this is similar to the funding secure
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situation. he did have this brouhaha with the fcc and did have to pay a big fine. there were some restrictions putting on his tweeting but it's not great for me. his board must be fed up with him. i go back to all of this as it relates to his twitter bid were all the jokes and stuff that goes on in twitter. if you are a shareholder it has been fine to date. it's a $900 billion archicad company. over the last year and half or so. at some point the chickens will come home to roost with this sort of activity. i think the tesla shareholders are left holding the bag. remember, he has been selling the stock hand over fist for bid every bs opportunity he has related to his few gaze the acquisition that he will be forced to do. he's going to be forced to buy twitter and has been selling tesla stock. up next, final trade ank them . kick pain in the aspercreme. ♪ ♪
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time for the final trade. >> tjx. on that conference call they were practically giddy about the amount of inventory and the price they could get for the inventory. even though it was up today we will see analysts upgrading tomorrow.>> guys?>> admitted, that hedging strategy -- just
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say it, ha ha. palermo pmo, sister. >> they weren't giddy, but they reconfirmed stock is cheap. >> no hedging strategy there. >> no. straight up. i like carter's'sthis is unusuay cheap. >> thank you for watching "fast money". we have "mad money" with jim cramer starting right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bulwark somewhere. i promise to help you find it. "mad money" starts now. i am cramer. welcome to "mad money". i what you try to make you some money. that is my job. i'm here to educate and put you in context, give us a


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