tv Fast Money CNBC July 20, 2022 5:00pm-6:00pm EDT
the narrative has started to become. weeks, if not already here. we definitely kind of overextend ourselves in that direction. >> we will see. earnings matter. we will follow tessa of course for the next couple of days too and see what happens. >> 46% think it is going up 30% is probably too many. >> 54% saying no. that is mike with his last word. i'll see you right back tomorrow. fast money begins now. right now on fast, a week to remember. in the last five trading days, names like goldman, amazon, and royal caribbean, hopping 10% or more. the s&p 500 up over 4%. the nasdaq topping close to 6%. have we come too far, too fast? did two earning reports. missing on margins. united also dropping big time after hours.
ceo scott kirby will join us for exclusives minutes from now look at that popping over 40% just. it's good to be here and good to see all of you. >> take effort. >> it was like when queen played at wembley stadium, got on a plane -- >> that was phil collins? >> it was bad. >> tesla. the electric vehicle automaker were initially rallying after hours. missing on revenues. missing on margins. the stock covering around the flatline right now.
we are going to go inside the numbers. >> it was a beat in terms of earnings per share. tesla earning two dollars and 27's per-share. revenue falling just share of expectation coming in at $16.93 billion. the street was expecting $17.1 billion. it's a numbers within the numbers that are putting pressure on the stocks. quarter to automotive margins, gross margins, ask zero emission dd. it came in at 26.2%. the street was expecting 28.2%. for a point of comparison, in the first quarter, that margin was 30%. you have seen a drop of 4%. they knew that was going to happen as a ramped up two factors, one in texas and one in germany. they now are down to a four supply of autos in the second quarter. a year ago their day supply was at nine days supply. the berlin data factory now at
a production of 1000 vehicles per week. operating cash flow $621 million. they say very clearly they are seeing challenges when it comes to the supply chain, labor shortages. all of those are waiting on tesla. they also sold 75% of their bitcoin holdings. $936 million is what they gained from selling those holdings. they then put those into other currencies, and then finally, if you take a look at shares of tesla, keep in mind that the conference call is coming up in a half hour. the question is whether elon musk will be on that call. what does he have to say about the state of the business? he's had plenty of comments on the twitter in the past. whether it is about the factory or he doesn't like the look of the market. there you have delsea, again a beat and earns. revenue falling short of expectation. >> someone should ask him about that bitcoin say. when he bought bitcoin back in may of 2021, he tweeted i'm not going to sell it.
we are buying bitcoin. it looks like i was wrong. thank you, we'll see you in a few minutes. your take? >> like most tesla corners here there's a lot to pick at. they are going to say they are doing this in a very difficult environment. over a multiyear horizon we expect to achieve 50% annual annual growth in vehicle deliveries. the rate of growth will depend on equipment capacity, factory uptime, operational efficiency and capacity. stability of the supply chain. >> they just got in the 50% growth in deliveries. the near-term they have no visibility. what did we just hear? what do they have, two days worth of cars? a quarter ago they had nine days. i don't know how you can have any confidence in this guidance right now. also to your point about taking that game from the sale of bitcoin, which he said he wasn't going to do, i think that has some cash flow implications. >> they have been cash flow negative. >> correct.
>> it looks like a little funky slip. >> that kind of guidance is similar to them saying we expect to have a record- breaking second half. what does that mean? it could mean production, deliveries. it could mean you get the margins back to levels. back to those margins, it really depends on where you were sitting. while 30% last quarter, 28.2% expected 26%. i know a lot of outs had 40 downgrade as the margin coming into this. i think there is going to be a source through the sunday past. some of the shanghai difficulties, if you look at where they would have been, 27% deliveries in june. if not for shanghai, would 67%. you have to decide whether you are ready to write off shanghai. the biggest door that tells a can lean back on in his berlin and austin. that's really going to be the wildcard for what 22 looks like for the end of the. right now they are telling you everything you want to.
>> do you get elon and tesla pass for the shanghai shut down? >> ultimately it's going to be a short term issue. it is not just them. i think what you want to look at is if they are going to get through this, it could be something to look at. ultimately i look at tesla and have a hard time with it because value is so much higher than ford or gm. at the end of the day i don't know how much upside there is going to be. yes, i think some of these things i'm not as concerned about hearing, but i'm still not a long-term buyer. >> that has always been a story on tesla. you would have missed out on a lot of profits. what do you make of the quarter? >> it was kind of a noisy quarter. as every company in this busy quarter. supply chain. bitcoin, which is really a sideshow. i don't know if tesla shareholders ever get sort of frustrated with his sideshows.
i don't know, maybe they don't. clearly it's an amazing company that he has built. however the valuation to me it just way too high to get comfortable with it. i wouldn't short it either because of its cultlike status. >> i think the other question is for tesla it has always been more demand than supply. if we are going into a recession, depending on what that looks like, will that still be the case for tesla? i've never had to really worry about the man, but there's a lot of competition. >> on the high end you would say they don't have to worry about demand. that's where a lot of the competition is coming. all the germans and japanese. if you put these things, you stack them up, you want to take the text that at 140. nine out of 10 people. i'm just telling you matter of fact. >> the porsche? >> i'm just telling you. >> what's the price? >> they are the same price.
here's the issue, i had an electric vehicle. i had to give it back. i had to take a loss on it. it's a great car versus a low end tesla. i think the service is going to be much better. the problem is the super charging station buildup is not there yet for anything other than tesla. that right now is going to give them that advantage on either one of those price ranges. to your point about the recession, at the end of the day if we have a recession and crude oil comes in, you're going to see less demand in the near-term until there is more options away from tesla for these things. i go back to that visibility on the back half of this year. we've all been around long enough. when you start your company talk about second half loaded sort of stuff, it doesn't make you feel good. >> a lot riding on that. there's also that report that ford is going to be cutting employees. let's bring in fast money friends. more reaction to tesla's numbers. what did you make of the
numbers? >> sarah, there is a near-term and a long-term. in the near-term it was negative. obviously that miss in the gross margin was worse than expected. now it is conservative going into it. it still missed those numbers and i think that is going to play into how investors process this quarter. ultimately i think this comes out, the stock trades down over the next few days. as investors really start to wrap their head around what dan is talking about. this production number for the back half of the year. so, just to frame it in as clearly as possible, i'm positive on tesla. this was a negative quarter. there were a lot of headwinds that they had, and i want to just add a piece that they had a tailwind related to gross margins. that did not offset some of the impact on gross margins. so, when i think you put it together and you can be realistic here, and ultimately the question comes down to,
these issues that have impacted this pressure point around gross margins. are they transitory, are they something that the company can work through? my sense is it could take a couple quarters to get through these to start to need to think about 2023 in terms of when we start to really see some lifts on the barge inside. i just want to quickly frame and why that matters. why are we talking so much about out of gross margin? i'm a believer that text the is a tech company. that belief is based on a margin profile similar to other tech companies. so to the extent that they can perform on that, and continue to expand margins, kind of bolds my case for this being valued more like a tech company. the reverse is happening right now for understandable reasons. i think when you put this together, it was a headwind for this quarter. it doesn't change my belief, and i would just leave the thought, i'm still bullish on tesla because i think they
can't keep up with demand. i think that's ultimately -- they may or may not get that back of have a year number, but they are going to continue to gain share. >> nobody here believes your call. >> let me just ask you about this gross margin issue. do you think that part of the solution or the expansion of gross margin comes from a higher sticker price, or do you think they are going to be able to operate more efficiently? >> it's the efficiency piece. that has been essentially three different headwinds that they've had on the gross margin. one of course was the shutdown of shanghai. that's just a huge headwind. there is the fx impact of that. then, also cost related to ramping berlin and austin. so, i think that again it was more of a negative impact than i was expecting it. this wasn't just about a lot of bad things thrown at tesla. it was worse than i had expected, but i do believe over the next six months they are going to
work through a lot of these. we are going to start to see a revision higher in terms of gross margins. >> the street i think is around 1.35 million units per year. tesla up 60%. if you look at where they could be with texas and berlin, annual capacity, is there a surprise to be upset? consensus is below even where tesla has guided. where are you? >> i think over the next six months is probably more risk to the numbers. to those delivery numbers. in part because essentially they are going to have to accelerate slightly above 50% for the back half of the year. we are still coming out of the shutdowns, and still just in the phases of ramping berlin. i want to be clear that i think the next six months, there can be some softness to these delivery numbers, because it all comes down to how the world is going to i guess a line for them to produce more.
i think what's more important is just that the market has a flashlight that looks into 2023, i think we forget that when we get our heads wrapped around these quarterly earnings. the question for me is not about what the margins are this quarter, what they are going to be he next quarter, what the deliveries are next quarter, it's more what are they going to be in 2023. i think we are going to see expanding margins and separately deliveries that are going to be in the 50% plus range. >> i'm sort of surprised to see the stock up given what you're saying although it is fluctuating. keep us posted please with any details from the call. >> it is just the lack of visibility. i think that elon has a whole host of reasons, and as it relates to his deal with twitter, to make sure his stock doesn't fall out of bed. if it does, he has a hard time coming up with equity to get that deal done if he is forced to do it. >> he was never asked about twitter. >> they should also asked why is larry ellison quietly
leaving the board on a friday afternoon? no one in the press, none of the analysts have asked about that. that was his big buddy on the board. >> there was a lot of turnover on the entire team. clearly not everyone in love. >> i know the bitcoin, but i still think it's interesting that he said we are never going to sell. >> he was going to sell for 20%. >> he is a liar. >> we'll keep you posted on any headlines from that earnings call that kicks off. coming up, and earnings alert on united airlines. shares on the move, sharply lower after reporting outs. the ceo scott kirby will join us. first, the semtre i ad continues to fizzle. is there more room to run here? fast money back in two minutes.
(ted) it seemed like the responsible thing to do. (jane) and then, just yesterday, my sister told me about visible. (sister) yeah, get unlimited data for as low as $25 a month. no family needed. (vo) family plan savings without the family. get visible. single-line wireless with unlimited data for as low as $25 a month. ♪♪
will become even smaller. of course, how can you have your national security address to manufacturing for you? this is why we need to have chip. >> that was the micron ceo. i spoke with him earlier about the kickback which just had a key procedural vote. if it can pass the full senate and house it will provide more than $50 billion worth of subsidies and tax credits to semiconductor companies to grow u.s. production. some companies took off on that. they fizzled. tim, does the sizzle continue? >> i think the sizzle continues. we've had a 19% move. that's not a bad thing. i think if you look at where we went, i think it was march 14th to 28, we had the same 19% move. semi conductors and the part of the economy, i think, at least the part of the in the market,
you want to see outperform is the most cyclical part and the part that has been under the most pressure. it has outperformed the s&p by 12.5%. we have been here before. technically i'll let the chart point this out. a very significant level to get through. is an argument for it. some companies, these are the companies that are going to get the u.s. to that place where we feel more comfortable. if you look at valuation, there are places i think you could have been investing. we talked about qualcomm and taiwan semi is a better risk versus reward. it may not be a political friend. >> the second the market starts worrying about recession, what happens? >> there is this concern about demand deterioration and the rising costs. ultimately there has been a lot of increase in inventory. if they have too much inventory, that's going to be one of the largest risks. we are going to have to
continue watching the guidance. i'm still a little bit cautious. >> micron not too hot a few weeks ago. here is what is coming up next. >> united airlines. we'll be joined exclusively by ceo scott kirby with an inside look at the numbers, next. speaking of flying high, the cannabis stocks are in rally mode. will be's names continued to see green? those trades ahead. radicular wasim fast money live from times square. we are back right after this. ♪ ♪ imagine a community where millions share ideas and trade stocks, crypto and beyond. to the moon? in other words... etoro.the power of social investing.
you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price. invest with confidence. welcome back to fast money.
and earnings alert on united airlines. after reporting a big miss on the top and bottom line, we are here with an exclusive interview with united ceo scott kirby. over to you. >> thank you. scott, first profitable quarter without payroll support since just before the pandemic. that's the good news. the bad news is you fell short of expectations, as well as your concerns with capacity. what's the biggest challenge right now? >> first i say we are really glad to be returning to profitability for the first time since covid began. solid profitability. in the quarter, the miss was about fuel prices. fuel prices went up a lot. particularly new york harbor fuel. the biggest challenge that faced us, that faces us probably for the next 12 months, is all the infrastructure challenges around aviation. it is maddening to us at united right now.
we got ahead of the curve. we got 10% more pilots than we had in 2019. you look at the mess at heathrow and some of the other challenges we've had with air traffic control. other things around the systems. the systems can't support our flying and the customers and the airlines are at risk. what we've done is pull our capacity back. all the costs are still there because we are prepared to be a much bigger airline. we have the people. we are going to be a small airline until the system can support it. >> you are pulling back your capacity and not growing as much as you previously plan. how long does this last? is this something you expect to be worked out by the end of the year or does is go to the middle of next year? >> we are not sure. a lot of these are things that aren't in our control, but we do see progress. to take newark, which was frankly a disaster in the second quarter. the faa has worked with us and has been very responsive once they saw the impact of cutting flights and static the air traffic control desk better.
we are seeing progress across parts of the system. our base assumption is know that it's going to gradually get better, and we are not going to get back to normal utilization and normal staffing levels until next summer. we are going to gradually improve. >> i was just in the uk. came back yesterday. heathrow is an absolute mess. i got out, but i know other people who were on a united flight, their flight got canceled because of a crew shortage. they were notified just a couple hours before hand. couldn't get rebooked for a couple days. ultimately had to fly on another airline back. it raises the question, there's so much demand to go to europe, but when people hear the stories or see the lines at heathrow, does it cut into the future demand? how do you do better by the customer? >> that's the reason we are pulling down the schedule. to do better by the customer. this is frustrating, we told heathrow how many passengers we were going to have. heathrow told us you are
smoking something and they didn't staff or it. we are being forced to cancel flights because heathrow can't accommodate the flights. that winds up being crew issues because you have delayed flights and this is a ripple effect. it's really frustrating to what it means to our customers, especially when we planned and prepared for this. we staffed up to support this level of operation. that's the reason we are cutting capacity for the balance of the year. we are essentially going to keep flying the same amount that we are today, which is less than we intended to, but not grow the airline until we can see evidence that the whole system can support it. we, and our customers on the front lines, we were prepared for london, heathrow. but when landing, heathrow calls us the day before and says you have to cancel three flights, and you have the cap the load factors at 75%, there is nothing we can do. what we are doing is building more buffers so we have more opportunity to accommodate those customers. >> hi, scott.
a lot of the problems you're talking about gas prices and capacity. haven't heard much on demand. are you seeing any shift here when it comes to the consumers? especially in the u.s. as we start to worry about the impact of high inflation and higher interest rates. what that's going to do poor consumer discretionary spending. >> the short answer is we don't see any evidence of it at all. one of the things that's unique for united airlines in particular, but aviation in general, while we do have a slowing economy right now, that would cause revenue to go down. we have a tailwind that is increasing every day, which is we are still in the covid recovery. festival, we expect another step up. all our clients tell us we are going to see another step up in september. international is coming back. we are in the sixth or seventh inning of the covid recovery. that is contracting any of the headwinds from a slowing economy. we actually see 5% sequential improvement in revenues in the third quarter. >> given that, what do you tell
somebody that is looking at booking a ticket for the holidays? they usually book it about a month or month and a half in advance. is are going to be fewer seats available? >> unfortunately there still are going to be fewer seats available around the system. this is because the infrastructure around aviation can support it. the responsible thing for us is to pull the schedule back so we can be confident in reliability. you should probably book early for christmas. we are going to fly less so we can make sure we have reliability. we were planning to be back to 2019 levels at christmas. we are now going to be 10% smaller, even though we have the staff and the resources. we are going to be smaller to make sure we can cover for all the things outside of our control. >> scott kirby, on a day where they are back in the black. that's the good news. you see the operational challenges, jet fuel, a lot of the cost issues. they are facing them along with the rest of the industry. >> heathrow asking what he is smoking. thank you. ceo scott kirby.
karen, it's tricky because a lot of these things are out of their control. clearly it's affecting their size. >> right, just the business model being an airline. there is so much fixed cost, and you need that infrastructure. to have the ability to fly and i mean, things have been thrown at him in the last two years is kind of amazing. extraordinary job, but unfortunate, i sort of think they are pulling forward some of that are you going to go another time? no, this will do for now. >> i mean maybe not your in- laws, but your friends. >> i wouldn't be surprised if demand does pull back some, but what a difficult environment to be in. >> what's really troubling is the cost per available seat mile is up about 32% relative to 2019. the total revenue hasn't even gotten there yet. they are talking about where they load and capacity is, and
where some of their numbers are relative to 2019 and a pre pandemic environment. it's good news, but it is the things they can't control. for airlines it's always the things they can't control. we worry about airlines and cost because airlines have never done a good job with this. right now airlines are on a multiple basis which we rated four years ago. estimates i think are probably coming down on 23, even though the demand profile looks better. >> kirby mentioned not seeing any weakness. he said they are expecting a step up in business travel demand as well. if we are heading into a recession and seeing job cuts go up and spending cut back, you do wonder what happens to that core very profitable piece of business. >> the question is how much. demand is currently not the problem with the airlines right now. i think what you want to take a look at is united specifically, there are a lot more international focuses. that's worth something were
delta, southwest, might be less susceptible to some of those changes. if companies are going to start sending people out, still having people in offices, they are not going to be quite as effective. stick to more of your u.s. best airlines. >> jet blue, i think that makes a whole heck of a lot of sense. your point about business travel is a big one. we spent a lot of 2020 and early 2021 saying that zoom was taking market share from the airlines. now, i think a lot of businesses have a very logical solution. you also have a hybrid work environment. at some point i do think as companies are rationalizing costs, is a really easy want to do. >> especially with these ticket prices. >> no doubt about it. the pull forward, if we are going into a recession, you're going to see this activity slow. he is not seeing it right now, they will. great job executing in a very difficult environment, but i think it was kind of heavy handed. there's a lot of blame being placed on the airports and
stuff like that. that seems like an easy one right now but in a quarter or so i don't think it's going to be as easy to blame that if you don't see the recovery they are expecting and the demand wanes. >> you could see the cancellations cut back too. that's a pain. when we come back, teslas conference call just kicking out. we are dialed in. plus, las vegas bans on the move after reporting earnings. stick around and we'll dig into that quarter and those details coming up. addict first, client base shares have had one heck of a week, but not so fast. one options trader is making a big bet on the scriptural company. we'll tell you who and why. you are watching fast money. we'll be right back.
moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. break up with bad banking. get 1.50% interest, pay no account fees, and get your paycheck up to two days early. download the sofi app and earn up to $300 when you set up direct deposit. sofi get your money right.
week for a hearing to discuss decriminalization. we vastus 100 million times. >> i'm not here doing jumping jacks saying i expect anything from this congress, and even into a lame-duck session. i might be probably bumming people out in the cannabis space. the senate subcommittee, cory booker's committee, is actually addressing it and using it as an opportunity to listen to the schumer bill. so overdone, so overreaching, and i don't think expectations should be for something to get done. there's been a number of different legislative pieces that i think are adding up to really where we get to. it's more that what's interesting is the cannabis sector, while all these all their multiple sectors happen have a rally, the cannabis has been too. what is driving what? when the announcement of this long-overdue schumer bill came out on thursday of last week, not a surprise that he's going to bring this bill forward. no one's expecting the bill as it's constructed to have any
shot. i'm not here to try to perpetuate that. i'm here to tell you i do believe we have a dialogue going on in washington where i think there's an understanding, either get to banking and capital markets, or get away from that and go straight to criminal justice. you're not going to get them both in the same room. the fact that there is conversation on the senate floor is very good news. that is what is driving this. we got second quarter numbers for the sector coming in. you priced in a lot of bad news, but every other high beta high multiple sector has rallied. you look at the rally in cannabis over the last month it has been 20% to 25%. >> it rallied. >> burn up. the conversation is a real one being having in the senate. don't expect it to pass is my view but a lot of good news. >> from cannabis to crypto. corn-based share so i more than 14% after the crypto- currency exchange said it had no exposure to bankrupt firm celsius, three arrows capital, and bridge digital.
it's up a whopping 40% this week and more than 60% in july. it is still down about 70% this you. one options trader is making a huge bet that the stock is come too far too fast. tony? >> yes. exactly right. coin is very active. >> working on his -- trying to get his shot right clearly. in the meantime, would anybody be a buyer of a coin based on the script a rally? >> the correlation we've seen in this space has been enormous. if you got coin based, it's probably trading with a beta of 1.5. a 60% move in the last month is certainly in line. the question ultimately for coin based is the broadening of the business and the platform and what you are willing to pay. >> tony, you're not buying it. i think we fixed your shot. >> great. what i was saying is that coin based was very active today, trading more than 2.5% the
average volume. the bankruptcy news. one trader seemingly is fading the strength. buying 5700 contracts of the august 12th $65. paying on average about $5.15 per contract. this is a put option that is about 15% out of the money. this trader is laying out more than $3.1 million in premium to bet that coin based is going to fall very sharply. these are going to expire in about three weeks or so. >> very interesting. thank you very much, tony. look at tesla, it is moving higher after hours. the call kicked off a few minutes ago. what have we heard so far? >> elon is on the call, which is notable, and he came out swinging. he is bullish saying they are going to have record production. he left the caveat that some of it is out of his hands. the number of users is over
100,000. that number surprised me. i would have guessed it is of 50,000. still not there for prime time, but tesla users are paying up for it. last, he gave a little tidbit about some production improvements in berlin. he talked about the body elements of building cars, that it requires 70% less labor compared to fremont. that is the machine that makes the machine. that is one competitive advantage that tesla has relative to other automotive. elon focusing people beyond the gross margins into the big picture. >> thank you very much. stay close. on the tesla call, musk said he would be routinely on every single earnings call. here he is and he comes out with big hopes for the second half. >> there is nothing more to say. i give him credit for going on, and there should be a lot of tough questions. we have no idea, he doesn't have great visibility's. if you're telling me the machines that bill the machines
are better in berlin, maybe i will believe you. if you tell me there are 100,000, when the guy that has been running that group for five years, right before they are supposed to announce level four, leaves but not for another job? i wouldn't be using that. read the reviews about it. it doesn't sound particularly safe. i think he's going to touch all the parts of the bear case. the stock trades well. the people who own it don't want to see the warts. >> especially if it is related to production issues and supply chain stuff like covid and what's happening in china. >> it's interesting that he is on the call. there is never a more beloved ceo that he is. you have to wonder though how much of it is unique to trust the stock to trade well because of twitter? >> the production here, he is just there to cheerlead and keep the stock at a level -- >> he could do that on twitter. the 100,000 number on self
driving clearly there is not a demand issues. >> the demand issues are strong. i'm not bullish on tesla. it is very expensive and there's a lot of reasons i'm not high. shanghai and supply chain are not reasons to sell the stock. those are not the reasons that are secular or fundamental are things driving the interest in tesla or not. >> that's what's driving the mission right now. >> he should get a pass on this. >> that's about as close as you're going to get it sounds like. when we come back, that stock reporting results in the last hour. we'll check the numbers. e > plus, stocks closing out in thgreen today overall with the tech heavy nasdaq leading the charge again. where to next? don't go anywhere. fast money back in two.
(heartbeats) introducing icy hot pro. ice works fast... to freeze your pain and your doubt. heat makes it last. so you'll never sit this one out. new icy hot pro with 2 max-strength pain relievers. (vo) get verizon business unlimited from the network businesses rely on. like manny. event planning with our best plan ever. (manny) yeah, that's what i do. (vo) with 5g ultra wideband in many more cities, you get up to 10 times the speed at no extra cost. get verizon business unlimited from the network businesses rely on.
tonight, new concerns for the american housing market. what it means for buyers, sellers and renters. plus, the emotional plea from ukraine's first lady. >> the facts, the truth, the news with shepard smith tonight. welcome back. be sure to stay tuned at the top of the hour, jim cramer on his new set up is new york stock exchange talking with larry fink tonight. cats at full exclusive interview at the top of the hour. mad money 6:00 p.m.
since hitting a close for the month last thursday, at the very start of earnings season, the s&p 500 has clawed back a whopping 6.6%. and got within 25% of the 4% handle. take a look at some of these individual names seeing even bigger gains over that period. carnival, netflix, citigroup, all of 20% or more. from reopening, to high gross, two financials. is it a sign that a bottom is in, or is the buying opportunity behind us? courtney? >> i want to say this is a start of a mold market. i'm a little bit cautious. ultimately we haven't seen that capitulation. there hasn't been an increase in volatility. hopefully we've seen the worst of it so far. ultimately we are getting close to a point where we are going to start to see inflation start to come down.
we are still seeing a really strong consumer and strong balance sheet, but i don't know if we are at the end of this yet. >> i can't imagine -- >> i don't want it to be. i think there needs to be more capitulation. you said something before, sarah. if we do have inflation or recessionary fears once again, one week does not change that. we still have a 10 year at 3%. we still have dixie at 107. i could go on and on. we still have an s&p valuation that is way too high. this kind of lines up with what we saw in june. i suspect we will see a hawkish fed that continues into september. in august we will see a new low. this has been the trading pattern of 2022. i just don't know why it's going to turn on a dime right now. >> this was ignited by extreme sentiment lowe's. we saw that on the fund management survey. the professional community.
i'll just say this, it smells a little bit like tech and -- i think people are under position. you don't necessarily get fired for losing money on the weekend. you get fired for missing the rally on the way back. i'm not saying this is that rally. i'm with everybody here but there is no question. >> also maybe i think everybody is expecting a hawkish fed. maybe this is the market telling you that maybe we are sooner to the pivot or the end. if the economy turns and inflation has indeed peaked. >> yes. as well as a very oversold conditions going in. if inflation is really turning, and there's a lot to think that it is. then, the fed is a lot closer to being done with the job. this rally though, it's uneven. it is made of so many different sectors. >> would you put money to work
on that? would you buy? >> yes i would. i would rather buy when things are trading down by integers, not up by integers. >> i think also, dan, the question of even if inflation peaks, it is 9.1%. it's not like it's going down to 2%. this is a fed that is fairly focused on bringing down inflation. even if it gets down to 6% or 7%. >> we haven't seen unemployment take up yet and that has to happen. that has to happen in this rate hiking cycle and we haven't seen it yet. we are still at pre-pandemic levels. that's happening. i think it's also important to remember these hikes are going to take 6 to 9 months to work themselves into the economy. we haven't seen the economy we can just get. we are starting to see housing rollover and the stock market rollover about 20%. this is not how a market bottoms after record, i mean
like the craziest experiment of fiscal and monetary policy to a black swan event. we are not going to bottom lazily in mid july. >> the housing data today super ugly on existing home sales. they might hike by a double 50 basis points. we haven't seen the effect of quantitative tightening. >> you sound bearish too. >> i welcome all the arguments. i had tom lee on. he said inflation has peaked and the fed is going to pivot. he is not worried. so that feeling is out there. when we are coming back, we are all over the las vegas news. jumping after reporting this early this hour. we'll bring you the details on that next one fast money returns.
(vo) get verizon business unlimited from the network businesses rely on. like manny. event planning with our best plan ever. (manny) yeah, that's what i do. (vo) with 5g ultra wideband in many more cities, you get up to 10 times the speed at no extra cost. get verizon business unlimited from the network businesses rely on.
at xfinity, we're constantly innovating. and we're working 24/7 to connect you to more of what you love. we're bringing you the nation's largest gig speed network. available to more homes than anyone else. and with xfi complete, get 10x faster upload speeds. tech upgrades for your changing wifi needs. and advanced security at home and on the go to block millions of threats. only from us... xfinity. there's a reason comcast business powers more businesses than any other provider.
actually, there's a few. comcast business offers the fastest, reliable network... the protection of security edge... and the most reliable 5g network. want me to keep going? i can... whether your small business is starting or growing, you need comcast business. technology solutions that put you ahead. get a great offer on internet and security, now with more speed and more bandwidth. plus find out how to get up to a $650 prepaid card with a qualifying bundle. welcome back to fast money. elon musk just saying on a conference call that they have not sold any of their -- i'm sure you are all wondering they did sell 75% of the bitcoin. that was questioned. moving 3.6%. earnings report.
shares higher. earnings per share did fall short of estimates as international headwinds persist. contessa brewer here with more from the earnings call. >> on the call, the executives really grappled with the downsides here. they are burning $1 million per day and the covid outbreak is lowering revenue in the third quarter because the casinos are closed this week. they were closed last week. singapore, the most profitable properties pre-pandemic, and its importance this quarter, is clear. revenues just walloped expectations from this particular property. even though the company is dealing with higher costs from utilities and wage inflation, and higher taxes, it's still looking at even on margins of 47%. the ceo rob goldstein said on the call that air travel is a real challenge. it's bill at less than 50% of pre-pandemic levels, but what they've seen is the countries that are closest to singapore
have seen a big lift. then, he expects to see other asian countries increasing the visitors that they are sending. he says they have room to grow. marina based is not at capacity. the executives point out they have kept their team members, so they are prepared to deal as the airport is able to bring back staff and able to add in more flights. they can deal with this urgent business they say unlike some of their competitors. they think singapore is just beginning to flex its muscle. the important thing to note here, sarah, is that the conference business is going to be rebounding as well. then, this covid thing with macau, there's no real clarity about when that ends. the zero-tolerance policy from china is really getting in the way of any kind of significant rebound. >> contessa brewer, thank you. how do you do that without any clarity on china's zero- tolerance for covid policy? >> you don't need to presume
this is a china only play and that singapore marina based. they've actually divested some expensive assets. the haven't chased online sports betting. i think they've done a lot of things really smart. i stay long. >> i do have a little bit of mgm, which is more about building out their online business. they have a tiny bit of exposure in china, but mostly eurocentric. >> i think there is going to be a china story. it is still going to be one of the largest risks. longer-term, it could look good but short term i'm not a buyer. >> casinos have roared back like so many other groups we have talked about lately. up next, final trades here on fast money. don't go anywhere. edward jones
i'd go with more traditional autos like gm. >> it may come as a surprise, as good as teslas quarter was in q1, this one looks uninspiring to me. you should be buying this one. >> stocks up a little bit. that does it for us, thanks for my mission is simple, to make you money. i am here to level the playing field for all investors. i promise to help you find it. mad money starts now. hey, i'm cramer . welcome to mad money. i am not trying to make friends. i am just trying to make some money. my job is to educate and teach you, so call me at 1-800-743 cnbc or tweet me at @jimcramer. today we saw a headline
IN COLLECTIONSCNBC Television Archive Television Archive News Search Service
Uploaded by TV Archive on