tv Fast Money CNBC July 19, 2018 5:00pm-6:00pm EDT
shoot, aim i talked to schnatter's lawyer yesterday and she said she's been asking the agency, if there was audio recording and he was saying it wasn't a racial epithet. she told me if there is a tape, let's hear it. back over to you >> kate, thank you very much for that and that does it for "the closing bell". >> see you tomorrow. "fast money" starts right now. "fast money" starts right now live from the nasdaq marketsite overlooking new york city's time square your traders are pete najarian and guy adami. the company reporting earnings moments ago. and we'll bring you the latest headlines and tell you what the street is saying right now, plus bitcoin back in the saddle and the crypto holding steady above 7,000 after a massive breakout, but arthur hayes, mr. gq of
crypto, he'll be here. the comments from president trump that shocked wall street today. let's get straight to eamon javers for the latest. hi, eamon. >> melissa, that's right you don't often hear the president airing unvarnished opinions about the fed and what it ought to do, but nonetheless that's what we have from president trump in his interview with joe kernen here at the white house and here's what the president said earlier this afternoon. >> i've been a very good man of the fed, and i don't necessarily agree with it because he's raising interest rates i'm not saying that i agree with it, i must tell you, i don't i'm not thrilled because we go up and every time we go up they want to raise rate again and we don't really -- i am not happy about it, but at the same time i'm letting them do what they feel is best, but i don't like all of this work that goes into doing what we're doing you look at the euro and you look at what's going on with the eu and they're not doing what we're doing and we already have
somewhat of a disadvantage although i'm turning that into an advantage for years we've been losing $150 billion with the eu nations and with the european union and they're making money easy and their currency is falling and china, their currency is dropping like a rock, and our currency is going up, any i have to tell you it puts us at a disadvantage i'm saying the same thing that i would have said as a private citizen. someone will say maybe you shouldn't say that as a president. i couldn't care less what they say because my views haven't changed. i don't like the work that we're putting into the economy and i see rates going up i see china where -- i mean, look at what's happening with their currency pep it it's dropping like a rock. >> those comments got enormous reaction around the world. the president was treading on the independence of the fed in the minutes and hours after those comments were released on cnbc today the white house put out an additional statement after that
explaining, no, the president respects the independence of the fed, tuesday what the president was doing here today, the white house clarified after that interview was released, was simply restating as he said in the clip, restating his previously held views and of course, this is not the first time that donald trump has criticized the fed or the fed chairperson you remember back janet yellen in 2016 during the campaign, the president was very, very critical of her, suggesting that she should be ashamed of herself for keeping interest rates so low in order to help barack obama during a presidential year help his story on the economy. this is not a man, donald trump, whether president trump or donald trump shy about airing his views and it's not something that we've seen other presidents do recently and it's not something that this president has shied away from at all we'll see the full tape of the full interview tomorrow on squawk box at 6:00 a.m >> eamon javers at the white house for us let's get a check of the white house reaction because initially
we did see a market reaction the dow dropping more than 130 point, closing near the lows of the session and the reaction was really seen in the u.s. dollar before recovering some of those losses so the question here, we know about the trade war, of course we are back to see a trough-led war on the fed what could that mean for the market, guy? >> i don't think we will see a trump-led war on the fed i think what we're in is the new paradigm and i'm not an apologist for the president and i'll criticize him when criticism is due. i would be saying the same thing if i were a private citizen, whether that's true or not, i don't know i would say rising rates are a function of a stronger economy that's taking place after the things we put in place in my administration it's something we have to deal with i'm not thrilled about it, but that's the cost of doing business other countries are not following suit and in the short term we may suffer, but in the long term it will benefit the citizens of the united states and our economy. that's how i would have handled it, but i'm not the president of the united states. >> short term, are we at a
disadvantage for having a stronger dollar and higher rate than the rest of the world >> not if the stronger dollar and the higher rates are because our economy is doing well. if those things are happening because of other reasons like people don't believe in our debt let's put it in context. i don't think it's necessarily war with the fed more than it is an opening salvo in a currency war because last evening, china did not defend the yuan that they had been defending. this morning you wake up to people in the currency markets asking, has china weaponized the yuan i'm not saying they have, but that's the beginning of it trump comes out today and says, you know what? i don't like a strong dollar to me this looks like the beginning of a currency war. >> when you think of the disparity and this is what trump seems to be focused on the trade deficit with china and we know that they could be targeted about what they applied tariffs to and they can let the yuan go lower and that's exactly what
happened in 2015 and we saw the volatility across risk assets all over the planet. if you look at the weakness it could be setting up in a similar manner because this is a massive tool that they have in this trade situation. >> you know, it's interesting because you know, you were stalking about talking about it as well, he was talking as president when he was speaking with joe. it's an interesting thing for all of us to watch and it's odd like the rest of us, but i do think because of the fact because it's a strong economy that we've got right now and that's something that has to be taken in and everyone has to look at that to determine whether or not we think that the fed is doing the right thing, right or wrong how many more hikes do we see the rest of this year? and i think that's sort of where he's trying to temper it down in his own way. >> why should he be tempering it down when you look at the data that we have and you look at the economic growth. if you look at the last two market cycles where you topped out, fed funds run 6% and look
where we are now i think we should go with the guys who understand how to run economies rather than guys who bankrupted five companies, and i want to take one other point this is a really important point. he's saying when he was talking as a regular citizen, eamon j javers, the interview he's talking about that janet yellen should be ashamed because interest rates should be going higher >> but also economically, everything that the white house has put in place and there's been some very positive things that happened, if our economy cannot handle a little bit of an interest rate increase because to their point we are still extraordinarily low relative to history. if we can't handle that then everything they put in place doesn't work >> let's say -- i. >> like when you play games. >> i think the question here is would the president's words influence the fed? >> we spoke to a lot of fed watchers who seemed to disbliss th dismiss that idea.
at the same time, from the market participant's perspective, say the fed is concerned about emerging markets and the impact to tariffs and so they don't raise it quickly, will we then look at that action through the prism of -- >> 100%. you'll absolutely come back to the joe kernen interview. >> was it politicized? >> unequivocally, 100%. >> is that a bad thing for the market >> in my opinion, whether he thought of this or not, i'm not suggesting either way, but if the market were to sell off those comments give him air cover to say, see what happens the fed raised rates and our economy is going so beautifully. they went too fast and we talked about this when he talked about the market being a report card for his administration, what excuse could they use if the market went down? in my opinion now this gives him a natural excuse if, in fact, the market does go lower. >> all right for more on this let's bring in cnbc senior economics reporter
steve liesman. steve, what do you think any influence at the fed. >> i don't think so. i wish i had a videotape that i can roll back and play what ryan kelly just said, and i think he may have hit the nail on the head here which is this idea that the trade war has now morphed into something of a fed war here and i think, melissa, i hadn't considered that, other than i do know that the thing the president mentioned here is that the chinese yuan is weakening apparently in response to these tariffs that are out there you have step number one that has the retaliatory tariffs and the yuan weakening and you have the dollar strengthening and now the president has to come back and has to kind of -- i don't know what the right word is, bully or otherwise cajole the federal reserve to say, you know what we need you to stop raising these rates so far because we're getting killed on the yuan so this, i think, what we have here is potentially, and i'm just speculating right now is
another fallout from the trade war. i think the fed has to consider this, and i don't know how much they have to consider it, but the idea that the dollar may strengthen which could have a negative impact on the economy because of the trade war does, indeed, become a fed policy issue. >> absolutely. >> i think you have an interesting take out there. >> it's a major problem for the markets and we heard that yesterday at delivering alpha. the dollar, the dixie is a one-year high right now and the yuan at a one-year low this could come into play when it comes to earnings season issue as well, right >> 100%. steve was there, and the comments were fascinating to me. the one thing j.p. morgan, the biggest thing there and one of the fears that keeps them up and i'm paraphrasing are the moves that they're seeing in currencies unprecedented moves that should typically happen over months now happen over days and that's in large part due, in my opinion to central bank steve can chime in, but the
central banks have inserted themselves way too much into the conversation. >> go ahead, sorry >> i'm just not sure that's right because i think that what the fed is doing is they've been preannounced more than a year and a half ago and look, the fed is playing politics and raising rates under trump and it's trump's guy and also the vice chairman who were out there raising rates according to a prior plan that pretty much seems to be in the market which doesn't seem to be affected by it, but also in congress and if you noticed in the last two day, not much pushback on powell for the fed's rate hikes. >> steve, you talk to central bankers all day long and typically their response is the dollar or the currency is the treasury's concern, but when you talk to these bankers, how much do they really worry about a rising dollar and the impact that their policies are having on that? >> so, brian, you're saying i
talked to central bankers all day long and they're lined up for my job as you might imagine. here's the thing here's the line on the dollar on the currency which is that they don't worry about the currency until it ends up affecting the macro economic outlook, and that's sort of an operative comment which kind of works that if the dollar would fall sharply, fall abruptly or create some sort of change, of employment or inflation and that's where they get involved and i will say this, alan greenspan said to me several years ago and he said this publicly, there's no factor that can forecast the direction of the currency that's better than the flip of a coin so i don't know that that's something that they can take into account as to where the dollar will go and it's difficult for them to use that
in their forecast. i think they're much less concerned with it than i believe guys in the markets think they are. >> steve, thank you. >> pleasure. >> steve liesman, chief economics reporter all right. so -- >> here's one certainty. the market participants don't like uncertainty yesterday larry kudlow, the president's economic adviser, said he's a king dollar guy and he's doing a great job today we have basically the exact opposite from the president. this is the sort of messaging that makes no sense and it doesn't lend itself to confidence. >> to be fair, the president did not say anything about the dollar specifically. >> he would let him do whatever he wanted to do because he's a good guy that's what the president said i understand how you see the differences. >> and that's what he's supposed to do. nobody lets you do anything as the federal reserve chairman, right?
the president shouldn't let you do that. the president hired him to do the job and he's supposed to be independent. >> is this uncertainty in the market >> there's never certainty >> additional uncertainty? >> well, yes the fact that we're now talking about we have mentioned the chinese dollars have been going down steadily over the last month, month and a half. august 2015 as dan mentioned, china devalued the yuan. it was trading down from 1810. will they weaponize it i have no idea to me, that's it >> steve mentioned whether or not the president was bullying the fed or not. >> i would say no, because i think what we've seen out of the fed over the years and including mr. powell, they have the mandate. they go with it and they're giving you the facts and a lot of people don't always like that, but that's how they've been going when they decided to raise rates and when they made those moves and they've done it based upon a strict criteria >> still ahead, microsoft higher in the after-hours session and
the company's conference call kicking off in 15 minutes' time. we'll bring you the headlines and have instant analysis from top technician chris maron bitmix arthur hayes will be in later this hour. we are li we are live at the nasdaq marketsite in new york city's times square much more "fast money" on this very busy night. atta, boy. & yes, some people assign genders to machines. & with edge-to-edge intelligence, you'll know your customers love this color, & don't love this one. never getting grape again. & you can adjust in near real time. & if someone tries to breach your firewall in london & you start to panic... don't. you've got allies on the outside, & security algorithms on the inside. & if it's jammed up here, & it's hot in here.
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welcome back to "fast money," check out shares of microsoft after better-than-expected earnings. the tech giant has been on a big run this year. 21 and 20% sitting near all-time highs. 1% right now pete, what do you think? >> the focus has been on the cloud and you said slowly, and that is why i think we're seeing this move that's not exactly a violent move to the upside as people digest it just like they did last quarter. last quarter they released their numbers and suddenly the stock was down 4% and stocks started moving higher and by the time they opened the next day we were up 4% or something like that it's slowed down it was 93, and 93% growth and that's incredible and what they're doing is eating away at aws. as that continues to grow and that growth rate is much faster than amazon right now.
i think that's going to be something very, very beneficial and investors will see that. >> that gave you all of the metrics and they reported slowing growth in the crowd. what would you say the stock reaction would be? >> i think it's important to put in context what pete's saying they did $7 billion in the commercial cloud and that grew 53% and it's 25% of their total sales and i think it really is about expectations and to your point, the fact that the stock is basically unchanged and the applied move is 3.5% either way, they're pretty happy about the run rate of $40 billion. >> and this is as the stock that's very close to its high. >> all-time high >> listen, they've done a great onand i am not concerned over slowing growth when you're talking about numbers with 50%, 80%, 90% and i don't think it will concern the market one bit. i want to say as we go through this, what that acquisition will
do for them. >> 58% margins in the cloud business which means they're operating margins in the entire company which is 34.5% which is better than what the street was looking for. if you're looking for a reason to sell and i'm not suggesting it should be and the one thing is valuation and now trading at 28 times is that valuation, is it justified by the growth rate if the cloud continues to grind higher, but if there's one fly in the ointment, i guess it would be valuation >> that's important on the p-e to growth basis on the fiscal 2018 and this was a mid-25 p-e growing at mid-25 earnings growth if you look at 2019 estimates, we're getting to mid-to-high single digits sales growth so you put a mid-25-ish, p-e on it, it is expensive all of a sudden you might, at 105 have much of the growth priced into this thing, in my opinion. >> microsoft's conference call is about to start in just a few moments and we will be monitoring that call, and in the
meantime let's get a check on the technicals and chris verrone. >> hi. they tried to sell this. 102, boom. right back to 105. that's how we want to see names in up trends respond and when we look at the longer term's microsoft picture, there's no other word here to describe it than an up trend every single time that it checks its trend line it responds it did it a few weeks ago and it responded again. we think the 100 level is great support and ultimately you stay long two more names that i think are in that context are worth highlighting here and this is apple, biggest stock in the world and for a stock that gets a lot of bad rap here. it's still a big outperformer this year, up 13% and when we look at the price action this year, rate reversal off the january lows, retested and held the lows and now holding the 50-day average we think that 190 and 191 level of good support and ultimately
210 is your target here and then alphabet another name that held up to really interesting news this week, already making and when we take a look back at the chart over the last several years, every single time it consolidates it resolves higher. it's doing it right now. we think ultimately that means alphabet up. microsoft good, apple good >> i own this. >> come on over, chris >> michelle will bring the chair in >> what happened to -- what happened to the days when you say hey, guys and gals. >> long gone ancient history. >> it should be. >> do they look as good as those three? >> what's interesting, when we look at tech, 80% of the sector it's still in an uptrend right here that number was 90% a year ago and it wasn't quite as broad as it was 12 months ago, no, but is it narrowing not really i think when you look at this group it's not just this one look at the payment processors and paypal and square. there are a lot of names in this
group that are there. >> the s&p tested the lows three or four times and now we're here with 2800. is it a foregone conclusion that we test the highs that we made in january, whatever it was, 2885 or so >> i think you'll see the highs here probably sooner than later and the one idea i kind of reject is that this market has narrowed dramatically and i know that's been a popular topic recently if you reversed weight the s&p right now it's still up about 5% year to date >> reverse s&p up five that doesn't sound like a market that's narrowed dramatically >> that's the biggest four stocks that account for 84% of the s&p 500 for the year >> that's true almost every year actually in a year where the s&p is not up that much it's very easy. >> and i get that narrative. it's simple to debunk, but i don't think we've ever had four or five stocks that had 800 billion market caps and so if
you ever had them all going in the same direction, isn't that sort of the risk >> right now we have a situation where netflix is much smaller and it was down 15% the other day for a quick, but it didn't really shake too much. you know what i'm saying isn't that the risk? if they all were to go in the same direction >> what i think is notable it would be a greater risk if there were four or five names working in the entire market that's not true. talk about sectors that haven't been involved that are starting to show up recently. biotech is dead money. >> and things have been dead money for five or six months and they started to show up here a little bit and if it were those four or five names working and i still think we have time before this gets too narrow >> chris, good to see you. chris verrone. there are sectors showing up to the take as chris says, would you rather >> would you rather? >> i would rather -- i would rather bank in this environment. i'm not worried about the yield curve. i think the banks have good
support here. >> pete, you're in both. >> is it banks or biotech? is that what it was? >> you got to jump the shark on me >> i would lean right now toward biotech because i think there is incredible upside right now. >> yeah. >> i know that everyone's high on the backs now and they've had a good week, you know? they're still down 8% for their highs and they just don't act well i know that they had a balance they just don't act well and i don't know what it is, but they have not shown up, in my opinion. >> it's interesting we talk about leadership and i like to bring sports analogies i know you do, as well red sox are playing 700 baseball and there are 25 guys on that team, but all 25 guys aren't ripping the cover all the ball they're being led by a handful of seven or eight guys it doesn't mean that they're not a great team the stock market's the same. >> oh! >> not a bad analogy >> i don't know. it's all right still ahead, okay. all right. we'll have much more on microsoft later this hour.
the conference call is kicking off in just a few minutes and we'll hear from the ceo. i'm melissa lee. you're watching "fast money," first on cnbc worldwide. here's what's coming up on fast. ♪ when you wish upon a star ♪ to be a disney shareholder enjoying the winning streak in five years and one trader sees more gains to come we'll explain. plus bitcoin is surging, but could it y wouill be one short squeeze. the ceo of a top crypto exchange, arthur hayes will weigh in when "fast money" returns. ♪
giddy up bitcoin getting back in the saddle and the cryptocurrency rallied 20% in its highest level. our bob pisani joins us from the new york stock exchange. hi, bob. >> melissa, it may not be roaring back to life, exactly, but bitcoin has been definitely picking up its head up off the floor. some reports are calling this a
short squeeze and up four consecutive days from 7,000 to $7400. bitcoin is on google it's dropped dramatically in the past few month, but cryptos tend to move on two things. number one, they tend to move on regulatory news and number two, any indication that more users might be coming online in this case, this week's news is mostly about more potential users and traders of crypto. so on tuesday, we noted mastercard had published a document saying how they would speed up cristo transactions holding both fiat currencies and crypto currencies. mastercard getting involved in cryptos and bitcoin was up 3% and its best performance in three months on friday we reported coinbase was considering adding to its platform, bitcoin cash, ethereum and litecoin on their platform these coins all jumped and even
bitcoin was up 5% that day so bitcoin volume is only modestly higher and then only in the last few days and futures volumes haven't changed too much so don't get too excited yet there's one other possible positive here. regulatory, on tuesday, fed chair jerome powell said the fed was not thinking of creating a crepto currency. sounds like a negative the purists are seeing this, they don't want government intervention or oversight. if the fed gets into crypto business there is potential for much more regulation in their minds, the purists' mind, this would be a negative so powell saying this could be viewed as a mild positive for prices, i think is an interesting idea if you accept the fact that more regulation would be negative for cryptos. melissa, back to you >> bob, thanks bob pisani at the new york stock exchange let's trade it when we were speaking to barry.
>> the amazing thing is crypto had no reaction. >> that was the best scenario. >> and that's how it should work and that's how the asset classes are designed to do, and the fiat currency markets and here's a currency, alternative currency they doesn't sway necessarily with the global political whim we've had a lot of positive news and i've been at the plasma talking about all of these positive developments and bob just laid a lot of them out and i think we just got to the point where the sellers were done. the sellers were exhausted and buyers came in we popped tires. 6800, big technical resistance and we busted through that, up 9% it looks to me like we may have bottomed here. >> some traders out there saying that it was all part of a short squeeze. let's welcome back arthur hayes, the co-founder of bitmix, the largest crypto trading exchange by volume. we've just given you a nickname arthur, mr. gq of crypto not a bad one, huh >> no. i like it. >> all right
let's get down to the short sellers here and there's a lot of twitter, and tweets going back and forth about the heavy volume on bitmix and how this could be a short squeeze are you see anything evidence of that >> well, during the pump from 6800 to 250 and in about 15 minutes we lick we dated within short positions and bear in mind we're a futures market there's not an imbalance of shorts, per se, but many people probably entered the position around the same lechls which is probably why we got a little pop there. >> do you think we've seen the worst for bitcoin this year? >> i don't actually think we've seen the worst this is a strong reality on good volume and we definitely could see 8,000, 9,000 and maybe just shy of 10,000. we've been here before earlier in the spring. we rallied for 5800 to the high 9,000 level and didn't quite crack 10,000 i think similar action will
happen this time and i would like to see us test 5,000 to really see if we put a bottom in >> do you think we'll see more volatility that's what traders want to see, right? and that's what's good for your business volatility either up or down. >> absolutely. given that it's the summer and everyone is in the hamptons and the french riviera or bali, i think people are taking a little bit of a chill time and come back in q3 and q4 and the party will start again. >> hi, aurth you are been it's b.k., you're talking about an awful lot, and what's the character of the person trading on bitmix? are you seeing a change in that? >> so we're primarily a north asian platform, and as i said many times, the penetration of internet, the penetration of mobile makes it a fertile ground for digital currencies and you also have a great culture of gaming where i live. so that's why we've seen the majority of the customers come
from that region and in general if you look at the largest exchanges in the world by trading volume they are in north asia >> everyone is at the hamptons or on their yacht? that's our kind of crowd, arthur you know, power to the people kind of crowd. power to the people doesn't exist on yachts, but i guess it does. >> it depends on who can get on the yacht. >> that's true in terms of volume, where are we relative to the peak volumes that you probably saw back in december, where are we in terms of getting that volume back? >> so for that we've extended our share of the market in 2018 and we actually had our best month in march, but definitely for the spot exchanges that don't have any leverage, the peak volumes were in december and i think we've seen them pick back up slightly and we've definitely seen volumes increase as we continue this rally, but through the third and fourth quarter has generally been a positive time for bit coin because everyone's come back from their summer vacation >> arthur, we'll leave it there.
great to speak with you. >> thanks for having me. >> arthur hayes, otherwise known as mr. gq of crypto or henceforth known as. >> henceforth -- >> that's a guy kind of word >> i think his commentary is interesting. when you asked him a question, has it bottomed? no, it's a test of 5,000 when you look at the q1 rally, it had a 100% rally and here we are quietly up 25 and almost 30% in bitcoin and it's an interesting point. if it doesn't hold it will make a new low and it will probably go back to that 5,000 level relative to the whole move from last october. >> i have a quick question for you. barry silver was sitting there next to us yesterday and i thought it was the most intriguing thing and i thought it was nice of you to re-tweet what he said, he has to spread it across multiple other currencies
how do you view how you invest in the whole crypto world that the rest of us are still trying to put our arms around >> i look at it and say there will probably be a half dozen twists in coins that are actually the foundational protocols of the ecosystem so say bitcoins are currency and perhaps the feeling are a smart contrast platform, and we'll have a bunch of different currencies interacting with each other as foundation to web 3.0 which i know you guys have talked about a lot >> all right still ahead, microsoft is up a percent in the after-hours session. the company's conference call jeff is kicking up and we'll bring the wall street reaction from the ceo in just a few minutes. >> plus comcast, our parent dropping the bid for fox sending disney on a magic rally datoy. shares doing something they haven't done in five years we'll tell you what that's all about when "fast money" returns.
♪ ♪ take it, pete. >> welcome back to "fast money," disney says anything can happen when you wish upon the right star or succeed in buying the bulk of rupert murdoch's media empire the stock rallied 6% and now up for nine straight day, its longest winning streak in five years. so is the magic back for the
mouse house, guys? >> what? >> he's cracking up because pete and i are singing. >> he clicked it -- ♪ when you wish upon a star ♪ it makes no difference where you are ♪ >> back to the trade >> coincidence or not, mel, when they legalize sports gambling, if you recall. >> i do. >> it was $100 and we had a conversation on the desk and this might be the catalyst and this might be what saves espn and we got bullish on disney 15% later, here we are is there room to the upside still? i believe so especially as we get into earnings season i think they staved off the death knell that they appeared to be in and this gambling thing, and i know we talk about comcast and fox, and i don't think that's got anything to do with it. >> i think that has a little something to do with it. >> i think you're right, though. we talked about that day and we talked about this could, i don't
know if it necessarily saves espn, but it is a great lifeline for espn and spent forward, but the idea of what they're going to get from this deal, i think, and i don't know that they even had to overpay as much as -- everyone's got an opinion on that whole thing they get the big chunk of hulu those are assets that mesh well with what disney would do. it dropped its bid and not going to engage in the bidding war and the stock is back to april levels >> i actually, if you're comcast, you have to compete for these assets, right? and drive up the price as much as you can from the key competitor and now they're focused on this international expansion which is what they had decided to do months and months and months ago to me, i think comcast is in good shape and they did everything they should have and they did not overpay >> did they overpay for the assets >> i don't know. i don't work for comcast >> they certainly played a great
game of chess here so the stock reacted i think fairly well the way it should after today. i would still go back to all of these people should be looking into the e gaming. >> and that to me is the media for the entire sector. >> they're betting disney's magical rally is about to run out of steam what did you see >> on a day like today this stock got back to its 52-week high and it might have got above 115. and total options volume was three times average daily volume the most active strike that i saw was the september 120 call, a little more than 8,000 of those traded for an average price upon 140 it looked to be selling and it looked like someone had this position in place and you get the pop of 115 to new highs and that doesn't mean that the run is over, but its had a reallyis in run over the last couple of months and the company will report on august 7th, i believe. i think the options mark between now and then is implying a 5%
move in either direction which seems fair that is the one-year chart right there and there's obviously some resistance up there at the prior highs. we have a five-year chart which this is the most important one to me for probably technicians and i'm a bit of a novice here, but look at that thing it broke up above that downtrend that's been in place since those highs and it was in 122 in 2015, guys >> sure. >> i think the interesting thing is if you go back and look at the last week and a half or so in disney, even wherever the stock has been, it's been running higher and higher, but they have been very aggressively positioning for a move to the upside and it was a 111 strike and they went out to october a week ago to 115, so people aren't expecting the stock to go higher and is 120 the cap? maybe, but there's been very, very aggressive buying in between the levels between 110 and 120. >> it's right near that all-time high which will be significant >> absolutely. >> for more options action check out the full show tomorrow friday at 5:30 p.m. eastern
time coming up, microsoft shares after hours. the conference call is going on right now and we'll get the reaction from the street plus, let's get a check on the cramer cam there's jim, sitting down th e w domino's ceo after the stock burned the investors today and we'll give you a sneak peek of that in a few minutes and much more fast after this. so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? whoooo. you rely on tripadvisor so you don't miss out on the perfect hotel... but did you know you can also use tripadvisor so you don't miss out on the best price? tripadvisor searches over 200 booking sites
we're really focused on our customers and our franchisees, and i think if we can continue to deliver great value, great food to our customers and to continue to support great cash on cash returns with our franchisees, i think we can continue to gain market share and we're fairly agnostic as to where that comes from. >> that was domino's pizza ceo sitting down with our jim cramer moments ago discussing the company's focus on value and quality and this after disappointing earnings this morning that sent shares down 2% today. despite today's move, domino's stock is still on fire shares are 15% in the past three months, along with names like shake shack, chipotle and dunkin given the rally on some of these names we thought this would be the perfect time for a brand-new game we are unveiling tonight and it's called order up or 86 got it order up or 86 here's how it works, very simple domino's is the example. if the trader thinks it will go
higher, they'll say order up and you'll see this. if they think it's going lower, they'll say 86 it. 86 it! >> see >> makes sense >> voiceover okay >> why is it a hamburger if it's a pizza joint? >> because we're talking about all sorts of stuff. >> diner talk. >> all right let's start with guy, order up or 86 on domino's. >> batter up, mel! order up, i mean whatever that means, i'm still bullish. the knock on domino's trading close to 30 times forward earnings and it's not etfs or revenue. the knock is domestic comp that's what people are focused on it's growth slowing down, maybe, as steve grasso pointed out, this is now a technology company and i have faith in this new management team and despite the valuation the stock probably could have been a letdown more today and given the pace, i think it's going higher so batter up. >> i don't like how it traded. i would avoid the noid, absolutely
you have the high p-e and not a place i want to be. >> i don't like the sound effects. i don't know let's get to the next one. >> chipotle. what do you say? >> obviously since they brought in the new ceo, this stock has absolutely taken off it's up 56%. >> it's an unbelievable run. so when i look at this company and what he's been able to do and what he wants to implement the stock is in front of itself. so for that reason, i'm 86ing it because when i look at the valuation at 67 times, it's just, and i look at domino's whether it's 30 or 40 or whatever and mcdonald's is about 25, i mean, this is just extremely fast to the upside i think there is a pullback coming >> order up or 86 it, dan? >> i think its had a good run and the easy money has been made and at this point, when you talk about lou do they get back to the peak ets which is on that trajectory so i'm going to 76 that thing. >> i thought -- 86 that thing.
>> i agree with what they said. >> 86 it, 76. >> so annoying shake shack is up next dan, order up or 86? >> i think -- 76 or whatever -- >> 86 it >> i think it's an amazing product. i think it's an amazing growth story. i think when you bfrng this company it's growing sales at 30% a year, right now expected to be 480 million and i think mcdonald's does that in a week and i think they have an amazing opportunity, but the stock is up year to date here and you want to digest next quarter's earnings >> you got two 86s with the burgers. >> that's what i order at shake shack. i do two singles >> yeah. [ indiscernible >> i do the whole thing. >> jeff calls that an appetizer, by the way and he runs that -- [ laughter ] >> that's a takedown that's an 86 >> i order up, that takedown
last one, dunkin' donuts, dunkin >> that's an order upon or 86? >> that's an order up. for a guy that grew up in boston, it's wicked good. >> i would agree >> that's an order up. >> order up and giddy up, this thing's going higher >> you finally got the gist of the game >> the expansion on the giddy up >> i actually worked, as you know, i worked at the domino's and i worked at the shake shack. it's disingenuous. >> weren't you 86 'ed? >> he was 86ed tehos ssis higher in the afr-urseion and the conference call is under way and we'll tell you what wall street is saying about the quarter. much more fast, stay tuned two,.
that's why xfinity mobile can be included with xfinity internet. which could save you hunreds of dollars a year. plus get $150 when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. microsoft's earnings call is wrapping up right now. let's get to josh lipton in san francisco. >> i was at evercore isi and speaking of that commercial cloud revenue number of $7 billion, up 53%, saying when you see that kind of strong growth with the much bigger base with stronger leverage it reiterates the positive features around the cloud story. i did ask about azure, and it was 93% in q3 so why that deceleration, he believes that the large numbers are techingici
and the base is getting bigger and this is a $9 billion growing at 20% i checked in with richard davis and he was cautious heading into this print just because of the run the stock has haddy remindig us it was up 20% it's a tech stock you have to own. on the call, satya nadella talking about azure specifically take a listen. >> the most leading companies are running on azure and i am especially proud that walmart chose azure and microsoft 365 to accelerate its digital transformation for their associates and customers >> nadella spoke of office 365 they're known as the multibillion-dollar business as windows 10 is active on 700 million devices and linked in has 575 million members and revenue growth up 37%. >> great rundown of the quarter there and microsoft shares basically in after-hours session highs rid now. dan, what do you make of the
commentary >> i think kurt had it correct this is a good story here. you know, the valuation, as we mentioned is kind of challenging here, but when you're talking about the core growth initiatives and the way they're growing and what the greater percentage of the greater sales, i think it makes sense here. >> anybody >> what i really like is we finally got a report about linked in and the 36%, and that's a huge number and the one thing we haven't looked into that's another aside of all of this is the gaming side, which is something we mentioned with disney, but when you look at the microsoft side and it's another part of microsoft that everyone casts off. they've had growth there, as well and the last quarter was 18%. so going forward, they've got growth, growth, growth >> you're in the stock with the options? >> yeah. >> what do you need with the options to make money? >> you don't have to go through 110 to move, they'll start moving come tomorrow so i'm excited about that >> up next, final trade.
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make a play for the all-time highs. >> bring it on >> great music tonight you hear that, leigh van cleef stuff we had going on? >> ibm >> all right i' test test 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. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money." welcome to cramerica other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer when this market falls in love with something it just won't let go when