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tv   Fast Money  CNBC  June 26, 2019 5:00pm-6:00pm EDT

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>> for your preview tomorrow, what are we watching in the market in terms of this sector rotation in the market internals to tell us what the next move is >> i think it's still going to be yields will lead, whether the cyclicals can continue to bounce you have to have more than one day's little bounce to say there's a rotation going on. >> i think, mike, you should do the good-bye you're the anchor. >> who's preview was better. >> yes we're out of time. "fast money" begins right now. "fast money" starts right now, overlooking times square, i'm scott. tim seymour, brian kelly, guy adami. one top strategist says there's too many bears on wall street, but that could be a good thing she'll explain. plus, the man who called the semisurge is back, and he says a number of beaten down dow stocks could be the next to break out we start with the semishocker, the chip maker surging more than
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3% after demand for the second half of the year is improving. that's all investors needed to hear today check out the moves. micron, best day in three years. amd, all soaring, are they giving the market an all clear sign, guy? >> welcome back, scott. >> thank you, guy. >> we missed you last time we had brian we have you back. >> what would the show be like without that greeting. >> i don't think it gives the market the all clear the micron numbers were better than the street was anticipating b on revenue, steve knows this, 64% of the company's revenue down 45% year over year. so you're saying how does the stock rally off of that because this time last year, it was a $62 stock. it becomes a math problem. the rally today makes sense. we discussed it last night, but to think you have the all clear based on this, i think is foolish.
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i think you're having a relief rally, analysts will catch up. i think there's going to be another leg down over the next couple of weeks. >> the guy says you're way off the highs for names like micron and western digital, and vidia we're talking double digit percentage points. >> western digital has the story. micron, there's nothing constructive on the d ram chart. to guy's point, 60% of revenue from there sales down 39% what are we getting so excited it's a one day off, sell that space, take a look at the market next week. >> i go back to the ever core note mid june where they said don't count on a semi come back. you're going to push that to the second half of '20, and they took price targets and earnings down for micron and a whole bunch of other names in that space. maybe that's more the reality than today is that what you're saying >> i'm not saying that not to pick on ever core, you have seen semis, are you measuring the phillies
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indetectioindex up about 6% they probably bottomed to the s&p, third week, fourth week in may. granted, we still have a jury out in terms of what is going on in terms of the global economy, a trade war, what's the fed going to do, et cetera, et cetera, we have certainly in terms of the bond market, put the fed out there as being the savior of last resort. i'll let mary anne bartells, talk about the bears contrarian view those were times the fed was a head fake and drew people into the market, and it was a dangerous time bears were out in full force i actually think that the semitrade is a place to be tactically optimistic in the short run. i don't think the structural stuff goes away, but i do think you have a case -- >> not necessarily micron. >> i think it's fair to say within semis, you have a diverse class of companies, and i agree that the commoditized version of what they do at micron is.
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>> are we saying we don't trust micron's outlook >> the outlook wasn't that great. that's the problem. >> the demand was going to pick up later in the year. >> slightly. it was just a fact to me it was just a fact that too bearish on this. but in this particular case, the outlook was better than expected it still wasn't great. these guys have cited all the numbers that things aren't great. if you think we're going to get a trade deal and the global economy is mid cycle, semis are the place to be. if you take a semiconductor chart and overlay it with pmi, it's almost a perfect match, right, so this is the economy right now. this is the roots of the economy, so if you're rooting for higher prices, you want to root for the semis. >> a lot of these have done really well. to tim's point, when you have that call they bottomed and they had come back already, amd is up
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over 60% year to date. they have a story behind it. they could be replacing intel in the chips in the surface in the next generation xbox, but the other ones, i don't really see wdc western dij, i seem them growing cloud infrastructure, but i don't see it with a handful of the other. >> are you a buyer of western dij then >> i think vidnvidia. >> that's basically what you're trading. each one of them have a -- >> a huge investment, i think that's where people are trying to give that the benefit of the doubt. >> scott you asked another question, are semis the place to run in and buy, and i think for an overall market die namynamic certain parts of tech have stopped working and you want to point to relative weakness in
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microsoft or adobe apple is breaking out. you're getting different leadership, rotation, we saw staples break down, we'll talk about that later in the show the bottom line is if you're looking for a place where market participants and again they don't have to be all, you know, full steam ahead in terms of the global economy back on, enterprise spend, et cetera, et cetera, i think you can be tactical on semis. >> what if you're trying to get in ahead of what could be positive headlines out of osaka >> i think the names that had huge runs, limb research, i think those make sense they're still significantly off their all time highs which were probably made last year. we have the bitcoin baller on the desk tonight to your right, and we're lucky to have him. >> where is he >> amd is beating intel but there's a sort of asymmetrica l
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tale, i don't think it's coincidental that as bitcoin has rallied a couple hundred%, amd has gone from 18 to 30. >> if you think there's going to be anything incrementally positive coming out of o saka, things went fine, we enjoyed each other at dinner, right now no tariffs stocks continue to rip. >> they talked about huawei and resuming shipments to that that was incrementally positive. yes, if you think you're going to get something out of osaka, the g20 meeting that moves the ball forward, then these are the places to buy. it's just not without risk >> i would also say if you think about where semis begin to break down, july of 2018, somewhere between 10, 112, i think it would be bullish if you see this break above the 115 level. that was a fresh breakout level that we had.
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a couple days before trump set out on those tweets in early may. >> the bears haven't left wall street just yet. a bank of america survey shows global fund managers are feeling the most bearish since the financial crisis let's bring in mary anne bar tells, head of strategy at bank of america welcome back. >> thank you for having me. >> too many bears? >> we're all shocked because of the level of bearishness, we can't find as you said back to the financial crisis, and we're nothing like the financial crisis there's a lot of noise going on here over in europe but the extreme seems way too much from a contrarian basis, that leaves a lot of dry powder as a potential to come into the market so we're actually calling for a strong summer rally. we have been, we continue to say
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the s&p can go up. >> you have to get a rotation out of defensive areas and into some offense >> i think what you pointed out is, yeah, i love that you pointed that out because it really doesn't make sense, right, how could staples be making a new high, bonds making recent new lows in yields and gold is breaking out, but the dollar is also weakening part of that to me sounds like there are concerns for deflation, gold, bonds and of course cash. i'm not convinced the move in gold is defense, more of a concern about the bear mark. the-year-old on ten-year treasuries is 2% our clients need income. part of what's going on in consumer staples is that sector has good yield i'm not sure, again, it's a
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defensive play i think that's an income play, and i think there's a deflation trade, meaning that the market is very confused on where to be, and again, that gets back to our survey that there's so much bearishness out there, and we don't see a recession. yes, we see a slow down here domestically, we see a slow down globally, but we're looking for 3% global gdp growth is earnings slowing down, yes, but they're not negative so we can't come up with a reason for a recession or going into a bear market and the argument that i knemade you just had the bear market we don't see clients talking about this at all. you had a bear market in the 4th quarter. and when i talked to our technical analyst, steve sutmeyer, has there ever been a time we had two bear markets back to bark, and he came back, clarified, never before in a secular bull market have we had two bear markets back-to-back. and i trade under bob farrel for
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a time, investors invest on the last cycle, and that's really what's relevant to our survey. they're investing on us being in a financial crisis we have completely moved out of that the interesting part is bob said by the time they figure it all out, it will be the end of the cycle and we're nowhere near that >> but mary anne, so when you say the financial crisis, do you mean 2008, 2009, or do you actually mean december, which is the mindset because first of all, anyone that went through '08, '09, basically feels like i could see this in my lifetime, and they trade that way. december felt like that. i'm wondering is that the hang over you're talking about. >> well, certainly we're not '08, '09, the data that we're quoting that we have never seen clients this bearish, goes all the way back to '08, '09 eng having a bear market creates
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a mindset that goes back to very similar to 2008 and 2009 when we talked to our financial advisers, even though the market year to date recently was up 17%, clients are not behaving as if the market is up 17%. they're getting a lot of calls, concerns and worries, obviously china, then iran. >> so your price target for the s&p, your target is 2,900? >> for the year end. >> how does that work out, though >> a lot of volatility. >> you think we're going to have a ramp up and. >> and then a selloff. >> the selloff is based on what? >> i'll let you know, but basically i'll let you know, why the volatility because we're only looking for -- >> you're looking for a selloff but don't know why there's a selloff. >> the reason we're not pricing the market higher is we're only looking for single digit earnings growth, so we have been forecasting a slow down in the earnings growth rate, so with the slow down in the earnings
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growth rate we're not sure how much the pe multiple can expand. the ten-year treasury yields keeps falling, yes, you might wind up with tina, there's no alternative, and people just chase stocks and expand the multiple, we're just not comfortable doing that so we think the gains are modest with a lot of volatility >> got you >> so i'm curious how much the demographics play in this. i have to think that most of the people you're surveying are approaching retirement, baby boomers, they need that income it's less about a play on the market or the economy, and more about the federal reserve is going to raise my cost of living and lower what i can earn on savings so i have to buy staples. >> so the survey that we're quoting are professional fund managers from around the world those are not individual investors, but individual investors, i meet them all the time they're not generating enough income for sure, and they're trying to find ways generating income and generally they take more risk in trying to find
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income staples are not considered risk because they're considered defensive. i'm just saying, generally they're not considered as risky. and i looked at them in the marketplace. there's actually some really nice yields that you can find in consumer staples, so i think that's why they're poking around in that space, not a sector that we have overweight, though. >> mary anne, good to see you. bank of america, meryl lyncrill >> i know mary anne knows this but talking about procter & gamble, 11% eps growth probably trades at a standard deviation at its multiple. i understand why people chase it but i think it's wrong i get exactly what she's saying. not ridiculous to think the s&p, i could cite five reasons and probably none will come to fruition i'm nor cautious maybe the consensus is right. >> what's encouraging for the market is that she talked about the reach for yield, and what you're seeing is a dynamic,
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first of all, if you look at high yield, we're basically back to the tights, krecredit spreads from the blow off topic, if you look at duration risks, people have been pushing out the curve in terms of duration, without getting overly technical, buying longer term debt, where you have more volatility is something people have been doing and something where people get concerned. the rotation in the market the last two days tells you people are going back to big cap tech. >> icto your point, people got o overlevered with the defensive names or the growth names, and i think lenore set the stage, was up year to at a time very well, and you saw everyone bash the space, and kb has a better report home builders that's where i have been adding. >> home builders, perhaps, there's no tariffs on home builders, yields are low but in general, i just don't think at the market highs, we're relatively close to the highs with all of this uncertainty that you have to get over your
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skis and start buying everything here for me i'm just in a cautious model. take a bit of profits off the table. coming up facebook's mark zuckerberg taking the stage moments ago with the aspen ideas festival, we're going to bring you his comments on everything from bitcoin to privacy, and check out shares of kb homes, the stock higher after reporting earnings moments ago the conference call is underway. live from mes ua itisqren new york city tonight, and there is york city tonight, and there is much more fast money after this. to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.
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knc general mills stock dropping more than 4% and weighing on the broader consumer, the group has serious games as we mentioned, making it to record highs, but is the party in your pantry coming >> you missed something there scott. >> i didn't write it >> there's a party going on in terms of their balance sheet that's where people were concerned today. this is a weak number. it's a couple that has been tradi trading aggressively into those numbers. debt to revenue, it's a case where you have enormous and a net 4.1 times leverage for a food company where margins are
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not high i think people are getting to a place, and it's kind of been across the whole sector, certainly here, these are companies who have managed through acquisitions to continue to grow and bolt down a lot of assets and frankly at what cost. i'm not telling you it's a major blow up but the market treated this country like it's about to happen, at least it's a major concern. >> one of the acquisitions they made is actually doing quite well, which is the blue buffalo segment, again, pet footds, that's where general mills has said this is the future. you have the chewy ipo, the pet med express, other ways to play this we know people spend money on their pets, lord knows i do. >> you have to look at how the market treated this back in may, when goldman sachs downgraded the name, they clobbered the stock. all the profits and returns are going to be short lived, the stock was decimated. that tells you a lot when you see negative news and the stock keeps rebounding it is a yield play, it is a growth plate, 3.8% on a yield
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right now. i think you can still buy gis. >> what would that yield do today with all due respect. >> when you see the stock rebound, maybe you want to wait until it bottoms out >> for more on general mills and what's next for the stock go to here's what's coming up. >> bitcoin, bitcoin, bitcoin fever is back as it soars toward record highs, and you won't believe how high one top investor thinks cryptocurrency is headed next plus well, we're not quite sure but the man who called the semi surge said the three laggers set for a breakout, he'll tell us what they are. there's much more fast money there's much more fast money right after this right now? what's now? he says they're surveying our property now they're probably at the wrong house i don't see any hovering
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welcome back to fast money, the dow is on track for its best month since january, up 7%, and just about 1% away from its all time high. a few key names have lagged behind bob pazani is breaking down the dow's winners and losers. >> walt disney is the biggest gainer on the dow, up 26%, on fire since they announced bundle products on april 11th growth in its cloud business has been powering microsoft. up 14% it helps it's not one of the tech companies getting caught up in the debate about tech regulation, ensnared facebook and amazon walmart up 13%, slowly convincing it has the tools to compete against amazon visa up 10% this quarter and just off a historic high on double digit payments volume growth in most parts of the world. on the other side, disappointing
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earnings and cautious guidance were the main reasons why some dow stocks were laggards, the global slow down hurt several multinationals including 3m which dropped after disappointing guidance in april. intel dropped. they issued disappointed guidance also in april, walgreens also had disappointing earnings guidance and exxon mobil went into a decline after its earnings report in april energy is the biggest sector loser on the quarter down about 4% but still fuelling the gains this month back to you, scott. >> good stuff, bob thank you so much. let's trade on the desk. who wants a piece of this. >> i think disney is the one if you're going to be in the market, that's probably the place to be. they have multiple levers they can pull they have said their business is doing quite well, and you have an east boards play there. in general, look at the difference between disney, and what's going on with 3 m i think that tells the whole story of the market for the last year we have effectively been trading in a huge range, two huge companies that, you know, are
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affected by the global economy one more than the other. and 3m looks horrible, looks like death, that's the one i would stay away from. >> i think energy is interesting here if you go back five years, it's down 6%, so you could make some money on these rebound effects we have some volatility, get some geopolitical stuff. but you couldn't have scripted a more bullish scenario for energy and it really hasn't come to fruition i think if you're going to play in it, you can't play long-term, you can pick your spots. >> i like names not mentioned. thanks for staying alive for 500. and the name would be conocophillips, you weren't her last night, but out of the three names, cheapest on valuation, held 59 which was the level six months ago, that's the play up 5% today, i think that's your ketchup trade. >> guess what our call of the day was at half-time. >> conocophillips. >> they were watching the show
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yesterday. >> if you think energy is at least a place you want to nibble, i think you have to be looking at the dollar. we have been below the 200 day on the dxy for five straight days, which is the first time we have done this in a year is the dollar dead in its tracks, i'm not sure as europe weakens, you would think the euro, which is about 60% of this dollar index would be giving some ground. you can't invest to me in energy without a view that the dollar is going to stay weak, and i think that's in the short run. >> the next guest called the semisurge just last week and says three dow laggards are about to break up. mark newton of newton advisers, back to take us off the chart. >> let's take a look at three dow laggards, stocks that can come back that are technically attractive nike, we see the breakouts, multiyear highs, consolidation, the stock lag is in the bottom quartile but sitting near all
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time highs the underperformance, it's really not all that dramatic these are the kinds of stocks you want to buy when the market is breaking out to new all time highs, not too stretched to the up side or laggards like energy stocks in my opinion nike is one. i think it does move up towards 90 you get over that, you get towards 100 by the early part of august, september. another one, united health, health care typically tends to be the best performing sector in june and july the last five years, united health is one that's just starting to make a come back. this stock arguably has exceeded this longer term down trend that's been in tact the last few months it is starting to show signs of progress, and really on any pull back like you have seen today, it's right to own the stock, any move over 250 should send the stock to 290 that's my second pick. the third will be intel, this is a playoff the semiconductor group. we spoke about this last week. micron made its move today
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look at what intel did, it moved to the highs, just today it moved over the highs of the last six trading days that is very bullish short-term of the three, this is the one near term that has the most up side, specifically on what it did today. i like intel to move currently from where it is, up at least 5 or 10% before it finds resistance, it is a play on the semigroup and of course technology making a rebound which we have seen over the last week. >> hey, mark, with an intel and with that group. we debated semis significantly is the point, though that you would be buying a laggard in the semis and an intel and i would argue and i own it, it's certainly the most diversified integrated play of all of them do you want to grab weakness in a sector that's outperforming right now. >> you want to grab a stock that's weak or starting to gain momentum that's different than grabbing a pure laggard it double bottomed near the former lows and now it's starting to show real momentum on the upside.
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it's well off its highs that it was a few weeks ago, so if anything, that's the kind of stock you want to buy, either stocks basing near the highs or ones that have been laggards that are now starting to show momentum on the up side. mark, thank you, mark newton with newton advisers nike, united health, intel. >> i want to throw this fly in the ointment that's what we need to do on the show, we need to prepare people. what's tonight and tomorrow night, don't have so answer that. >> debate. >> and who's going to be in the cross hairs. >> health care. >> gold star for you you could see a weakness on the back of whatever rhetoric you hear the phrase, lower than the trade historically is a buy. >> to pick my poison, nike versus under armour. year to date, up 11% they have more triggers, more
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growth potential to pull from international. they can grow there so that's an ability. they're coming out with a sneaker. they're patented they file for a patent on a sneaker that's going to take your blood pressure. sounds pretty cool k used to be nike was the innovator, now under armour has taken the reigns. >> mark made a point about momentum two out of three of these stocks are stuck in this range, whereas intel started, we started the show talking about semis, how do you play positive news coming out of the g20, i would look at intel if you want to make that play because it has momentum when you're talking about big trading ranges for me, you have to wait for that momentum to kick in because the guy's point, you can get a stray headline and it gets crushed. >> the key is getting through the $85. that's a level it has struggled at it has broken through once the valuation to me, not an issue, if in fact, north america is healthy, and innovation is really what's going on at nike
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so nike a name that i think through multiple cycles here has found a way to move. >> check out bitcoin going on a wild ride in the last hour or so down like 2,000 bucks in just the last couple of hours >> it's a wild ride. the boss is going to tell you what's behind that move. plus, facebook ceo mark zuckerberg on stage at the aspen ideas conference, lktaing privacy and regulation, we'll bring you the comments when fast bring you the comments when fast money returns. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilitlife anr when we come together. ♪
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we're back on fast money with an earnings alert on that stock right there, kb home, and shares are jumping after hours let's go to diana in d.c. who knows exactly why. >> it was a strong beat, but they give mixed guidance going forward on the earnings call that's light revenues for the full year, 4.45 to 4.6 billion, that is above estimates ost estimates take it or leave it. ceo pointed squarely to big growth in community count for
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the big beat in q2 especially in california, a 15% increase in the new orders, it expanded in the bay area and opened its first community it wasn't just community count he also mentioned drum roll, mortgage rates and improved affordability. >> the combination of a decline in mortgage interest rates along with steady economic growth, high consumer confidence, and favorable demographics in particular household formation continues to provide a healthy backdrop for our industry. >> now, kb's average selling price in the quarter did fall 8% year over year to 367,700 but that was mainly due to a shift in the geographic mix of the homes delivered and a changing mix in its west coast communities but pricing was actually up on the homes themselves the cancellation rate, though, as a percentage of orders improved from 15% to 18% this was interesting to me, first time buyers were 55% of
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their business a growing share as for incentives, big growth and incentives, they were up slightly on closings for kb but not on new orders and they did say we don't have a heavy incentive model. scott. >> diana, thanks, thank diana olick. >> all stocks have been up to 20% year to date yesterday, lenar, orders were basically in line, so i think that a lot of this stuff is sort of, i don't want to say kitchen sink but when the ceo says he's blaming tariffs on $500 per home, i think that's a little bit granular for the industry. i don't know what he's trying to point at but lumber prices have come in. that was a huge head wind. when you look at kbh, it sold off 7% ahead of this earnings report i'm staying in it. i have added to them. >> who else. >> if you think about the xhb,
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the outperformed the s&p by 16%, the move we have had in interest rates and the dynamic, which despite reasonable consumer confidence, and reasonable, you know, numbers on the employment side, do these trends get better in the short run we could see rates go to 175 in the ten-year yesterday's home sales numbers tells you that actually the short-term trend is running into head winds. >> the place i would be concerned is home depot. that is the company that will be hit the most or will have to raise prices if we have tariffs. if you want to play the space, i would go with what graphs have been talking about, buy the home builders, don't play the reno trade. >> we have been bullish on home depot. we have rallied back there if we fail here you're going to have a major double top, and people will talk about 19 times being expensive. i would rather take profits in
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hd here, maybe buy it back on a breakout, otherwise i'm looking to buy -- >> there you go. i'll take that. >> thank you >> split them up. >> again, i look at big box retailers, hd, and their ability to control their business, especially from the professional side, i think they have margin insulation i like it. >> bang. >> coming up, facebook ceo mark zuckerberg speaking right now at the aspen ideas festival we'll tell you what he said that has wall street abuzz. bitcoin on a wild ride, soaring to just under 14,000 this morning, then droppingeay rll fast this afternoon. more on that when fast money returns.
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and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today. welcome back to fast money, facebook ceo mark zuckerberg speaking out on big tech privacy and regulation concerns. at the aspen idea festival a little bit ago, for all the details let's go to julia boar st -- borsten. >> talking about the company's efforts to protect the platform from manipulation in saying it's on the government to make the rules to define everything from what is appropriate free speech to what substitutes manipulation
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on the platform. >> we don't have the tools to make the russian government stop right, or for, you know, i mean we can defend as best as we can, but our government is the one that has the tools to apply pressure to russia, not us right, so, you know, one of the mistakes that i worry about is, you know, after 2016 when the government didn't take any kind of counter action, the signal that was sent to the world was that, okay, we're open for business >> zuckerberg also explained why facebook did not pull down a deep fake edited video of nancy pelosi saying that the company is still evaluating what their policy around deep fakes should be. >> there was a question, though, about whether misinformation, whether these deep fakes are completely different category of thing from normal kind of false statements overall, and there's a very good case that they are,
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which is what you're saying, and now when we put this into place, when we think through our policies, we need to be very careful. >> zuckerberg mentioned a number of different types of regulations he thought would be useful to enact, such as the honest ads act to enforce transparency around advertising, scott, he also stressed the importance about data portability, making it easy for consumers to bring their data from facebook to other platforms and other platforms to facebook. that should be regulated as well. >> it's pretty striking listen to him talk at the top there it sounded like somebody who wasn't ready to accept responsibility even still for some of the misinformation that has been and may still get out on facebook. >> well, scott, he definitely seemed to be pointing fingers at the government for not taking strong enough action after it was revealed that there was russian manipulation of the 2016 presidential election. i think his emphasis on the importance of regulation is really in a lot of ways giving
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up responsibility for really making those tough decisions and he talked about how a lot of these calls should be regulated country by country, whether it's around speech or whether it's around manipulation. he gave a couple of examples of that but if he can get different countries to make the laws and he can just play by those rules, that takes a lot off his plate for sure. >> the conversation still going on what do we make about that >> i don't want to like facebook there's nothing about it i want to like, but i say this, the people that get hurt by regulations aren't facebook. the big guys, actually, they want regulation because it squeezes everybody else out. so it's actually good for them, number one number two, this whole crypto thing, maybe that's a tail wind for them, good for them. >> i'm told he hasn't addressed libra at all. >> and they probably won't nobody leaves the platform, advertisers have nowhere to go the move from 125 to 200, you had a 50% correction on 162, on huge volume.
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it's done everything right technically, leads me to believe in earnings july 24th, we make a run at all time highs. >> were you upset at his answer? >> i thought it was genius, i looked at it the opposite what you looked at. someone is teaching him to spin it now, instead of trying to wear it and have this whole you know, poor little us, we're going to try it figure it out, the client first, we're not interested in making money, i think he's doing the right thing, spinning it right on the u.s. government saying you guys can't figure it out, why should we figure it out you have the technology to do it more so than we would. >> by the way, the stock is up 43%, the advertisers aren't going anywhere, it's leading the group. >> the stock has under performed for the last 2 1/2 years when i hear the guy say we don't have the tools, that's the same line i have heard him say for the last year and a half when he talked about his own business. he doesn't know how to measure
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security he doesn't know what the cost of security is going to be. to me, there's no question this is one of the most powerful platforms in the world to me, how do you explain the stock? i don't think the stock has performed well at all, and i think the valuation should be higher >> i look at it as the fence they're going on offense, and my concern, however, with that is that you're poking the bear. they're not exactly the most loved company in washington at this point and now you're poking him with a little bit of a stick. i would be concerned if i was a shareholder. >> speaking of facebook, all the buzz around it it new libra crypto county, the cryptocurrency jumping as much as 18% today before pulling back and trading now just above the 12,000 level bitcoin still up triple digits this year, and our next guest case it's heading back to the highs, let's bring in michael morrow, crowe of genesis capital. it's good to see you that was kind of wild told is that just normal? that's how we should just accept the way bitcoin is going to
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trade, down like $2,000 in a matter of 15 minutes >> i think that even the biggest bitcoin bulls will tell you that a 50%, 60% price up in one week is unhealthy and volatility obviously kind of cuts both ways, leverage cuts both ways and so the fact that we have had that kind of run, 50%, 60% in a week, and seeing a 10%, 15% correction in a matter of minutes, it's hard for me to say that that's expected and normal, but that's what bitcoin has done. >> if any other asset class traded like this in a single day, we would say what in the world is that, i don't want to touch that are we accepting of that's the way it's going to be >> i'll tell you, this is exactly how volatility trades. >> 2,000 bucks in 15 minutes >> it was up 2,000 bucks, too. it was up $2,000 overnight. >> up 40% since the weekend. >> again, any asset class that's up 40%, you know, over any short
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period of time, that is extreme volatility you asked me, everybody is running into in bitcoin because of the safe haven plight and you asked a safe haven, and bk said no, it is the most volatile asset out there. this is not unusual to have it move in these big, big, 10% moves. it's not unusual for this asset. >> the relationship between the hype over libra, i think we can call it hype, and how bitcoin is going to trade here forward is what >> i actually think the effect of facebook libra on bitcoin is marginal at best bitcoin was up 200% before facebook came out with the libra announcement, and frankly, it may on the margin invite the retail investor who is getting used to the concept of a digital wallet for the first time, and the idea of having a nonsovereign store value to make
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payments is a new con cemecept institutionally, i don't get the sense this moves the needle for them. >> you were talking about getting close back to the highs, let's call it 20,000 sometime in the next couple of months. what are you seeing on that supy
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>> still ahead, nike racing into earnings on the verge of a correction and some traders, much more ahead in fast money straight ahead
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welcome back to fast money, nike racing into its earnings report tomorrow on the verge of a correction, down 8% from its april high, and options traders think it's time to bench the stock. mike ko is in massachusetts with options action >> look where he is. >> hey, scott, how are you the options market is implying about a 5.1% move on earnings when they report after the close tomorrow we saw about double the average
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daily options volume today now you people who are looking at the markets will say, well, we saw double the car volume and double the foot volume that doesn't tell you anything except that the largest call trailed was actually a sale of 3,400 july 90 calls. the larnlest fogest foot trade 4 puts for 30 cents. the buyer is betting the stock is going to fall below that would represent an 11% decline from where the stock was trading when they put the trade on today as we look at the options market basically we're seeing pessimistic views going into earnings they have identified that as a catalyst i would also add that put volume has outpaced putted on average over the last 20 days or so. apparently they're expecting some of the weakness to continue >> thank you let's get a comment here bench it or buy it >> i tell you what i actually like that a lot. >> i'm buying. >> bench it or buy it?
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>> bench it or buy, in other words, bench it means you don't want to own it i'm not that quick >> people say valuation is expensive but go back to last quarter and look their inventories are under control. they just authorized a new huge stock buy back i think you buy it in the earnings tomorrow. for more options action catch the full show, friday 8:30 p.m. eastern. eastern. up next, we do final trades. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i sale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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there's still a lot to like here but i'm right. you want to keep some powder dry so you can get some real bargains. it is time for final trades, we go around, start us off. >> i believe earlier in the show i mentioned, i take the other side of guy's home depot trade and to me of all the big box and retailers, this is the name i want to own. the valuation not demanding 22, 23. >> he benched it, you buy. >> the market yields went a little bit higher. i think yields are going much lower. buy the tlt. >> i thought you said the bong that's what it sounded like. >> i'm liking my boston accent coming up. it's wicked good. >> do you know what i'm not benching, west rock, buy it, don't bench it
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>> guy. >> i'm benching about 225 these days, yeah, i am listen, i missed "the halftime report" today but i did see fast money last night cop, that will get you catch fast money 5:00 p.m. easter my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer welcome to cramerica other people want to make friends, i'm just trying to make your money my job is to entertain and educate so-call me at 800-743-cnbc or tweet m me @jimcramer. i do play one on tv weekly, show you te


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