Transcripts For CNBC Fast Money 20240714

The same as wall street saw the two previous market peaks, september and may. The pricetoearnings ratio below 17 for the next 12 months. Right now ahead of what could be a couple of fed rate cuts and a trade deal still in the works with china, is the market still a value trade or a value trap . Who is that dion warwick it is dionne warwick. Like that wasnt on in your car on the way over. I love that sothebys stuff. Deja vu my voice, i apologize to the people at home i know you think you know me, and you say, absolutely, value trapped in terms of the s p and you know what, mel youd be wrong wrong wrong, i think its a value trade. I think its 17 times for ward earnings and in this low Interest Rate environment the market is not expensive and it will not sell off because because of other reasons and theyre right at the top and the fact that maybe the fed will disappoint or maybe there is no china deal or maybe this situation with iran gets worse and the mark has a lot of reason to sell off and valuation, the s p 500. Lets go to the value queen youd think i would say its a value trade and i feel like its a value trap in that upside down. I can see a little bit of a case for value trade if you would say rates are much higher because rates are much higher the multiples are lower and thats reasonable and however, i am concerned about the trade issue and i am also concerned about it taking a much longer time and in that waiting period, assuming we even get to a deal, but in that waiting period that people are just more concerned. Ceos are more concerned and spending slows down and were going to start to see, maybe in july well start to see the banks. Im concerned about earnings losing some of the momentum that they have earlier in the year. So im concerned i get the argument that with Interest Rates low, that allows for a pe to be higher than maybe one would expect at this jufrnthure in time and the reason why Interest Rates are low because of slowing growth, how do you account for that . Its important to go back to. In about a day or two i would be focused on the fed the last time we saw the fed go from hiking to cutting was 1998. It was to avert a crisis here in the u. S. And it was that sharns c insurance cut in 1998 and we had the asian credit crisis and longterm capital. We dont have a crises right now. So the fact of the matter is weve had rate comes in which is making equities look more attractive and theyre coming in for the reasons that were worried about with Slower Growth and when we talk about the s p 500, the earnings part of that is really, really important here so if we dont have visibility on corporate earnings and we do not right now, then i would say it is a value trap at this moment given all the uncertainty because we dont want a surprise rate cut you may get a pop because shorts are going to cover and it will bust this market out in the 18month range and its failed in a meaningful fashion and to me i dont want see the inside outside trade. If i would go with the trade as well because i agree with you and when you have the opportunity to protect your portfolio on top of that in a very inexpensive as karen talked about last week, and volatility trading in the 15 16 its a great opportunity there are so many different values, mel, out there right now. The opportunities grow every single day look a couple of weeks ago, look at the fanfare and the panic about facebook and look at the panic about different names and there are names out there that still have opportunities to the upside obviously, it is a stock pickers world which i love. I would love to be in the stock pickers world and there are great opportunities in almost every single day and look at the housing names and the explosive move to that upside when everybody said they cant and you look at a lot of different areas and there are areas right now, and i look at the airlines, for instance, and there are many names where i think there is opportunity there because oil and the prices and the jet fuel is not as big of a deal right now and i dont think in terms of the valuation levels of where they are they have Pricing Power right now and i think thats very important. Having said that, the market overall is a value trap where youre finding value in the market a lot of stuff that we have, and i have airlines number one and they have Lower Oil Prices and jet fuel and thats a lot of the costs there. I like the banks and im still long the banks and clearly a lowrate environment and thats okay and a boom to the Housing Market and thats good for bank, as well so im long that, and then i like sort of idiosyncratic. We saw Something Like red robin and the deal stuff and thats interesting to me where we talk about the market risk and exchange that for specific deal risk. Theres been a lot of crowding you say youre a stock picker and i know youve been all over microsoft and a sales force and whenever they come in theyre strong and another area where theres a huge secular shift is the aggregation of content so weve been talking a lot about disney and disney at 140, and its one of those ones where i think it comes back to the breakout and thats a stock that you want to buy and some of the names that we want to talk about for a while here and the drivers are not being appreciated right now and you might have that aha moment with a disney so to me, i think you want to find some stuff leak that that resembles some of the stuff where the industry is moving in that direction has disney gone too fast . I look at it and i feel like it has the stock has gone too fast. Its been an absolute great move, and we dont need to go over that. Its been very rapid to where it is right now i think for the right reasons. My point, this is the end are sort of market that you want to do the pull back, did you see it going up, and i think you want to look for some of those names and you may want to buy it on a pullback only with the downgrade, only down per a per sfrnt, and its, troerd nair he well and even pt pruter market sell off will wail woods very start it i dont know roll some downgrades today. That doesnt auger particularly well for the bellwether for the broader economy. In terms of your question, gold miners continue to trade really well Newmont Mining up 0. 8 today on a day when gold really did nothing. I just want to follow up because we have a couple of charts and this was a name that got hit really hard when we had the mexican tariff bluff and the stock got hit and it came all of the way back after the president caved on that one, but look at this thing its starting to move lower and i think thats really an important point that guy just made you want to look at some of these names that should be performing better. I think you keep saying and we did have the 102 we did have the curve steepen and now theyve come all of the way back and to me that doesnt reinforce some sort of underlying strength with the homebuilders. You think the banks are a value trap yes lets see if we can say that for the next 18 months and theyve literally not made a new high the s p has made two new highs since january 2018, so to me, i dont know why thats an area where youd want to be in. I own the bank, but i would say youre probably right. It has been a value trap how doey woo deny it has been . Weve been waiting for the move that you would the dividend yield that you get and you use options and karen is doing this, as well and youre selling options against a position, even though the stocks arent performing you can outperform the market by an additional in the preview ask sucking in the premiums and it has been a trap for now, ill do the s p 500 very easily with those dividends on top. I just want to make a point, look at visa, American Express the xlf, it has arent gotten within 6, 7, 8 . I dont think thats true its true. No. I dont think thats true, j. P. Morgan the totality of the xlf. The totality. I like when they bicker i like when they split them up its just she immediately goes back to j. P. Morgan, you know what i mean yes. Obviously, j. P. Morgan has acted very well and it doesnt act well nows and the leader of the group and look at the xlf. Theyve split dan and pete and its supposed no more fighting. I do own mastercard, by the way. Congratulations. Thank you its been a long time. Our next guest says if youre looking for value in the market there sea one classic group of safety trades about to shine carter is at the plasma. Hi, guys, happy monday and theres a lot going on, of course, in the world of Precious Metals and alternatives like that there are a lot of dedicated etfs to gold, silver, some are triple witch leverage and so forth and its totality, the etfs have been net buyers of gold and net sellers of silver. We know year to date one is up 4. 5 and one is down 4. 5 and long term its fairly epic, and i think thats an opportunity for the laggard silver working through some of the numbers. Gold prices relative to silver at 26year highs this is the sort of gold silver ratio. Its right now above 90. How much does it take to purchase one ounce of gold and take a look at the following this is the gold silver ratio going back to 1960 and every one of these peaks when we have gotten to a certain level we have pulled back quite dramatically does this have to be a peak . Thats the judgment part i think that it is let me show you every other time when it peaked and then started to come off. In terms of performance, silver six months later and one year. Absolute these are the absolute dates of those peaks and what silver did, not relative, just outright performance, six months later, one year later and this is indeed another peak in the gold silver ratio, it would be by all accounts to buy silver who has lagged at 26year lows relative to gold its just over 90, several days to draw the line, you can only go so far back, and theed abouts like, youre not afraid to look at it, same, exact timeframe it is literally, youve been going from the bottom, to the top, top, top we reached a point for all of the reasons discussed so far that this is likely at a peak and when one wants to buy silver, it doesnt mean that both cant go up, the gold silver ratio at a peak and thats the judgment. So lets talk about one of the more exciting things bitcoin. And this has been a big thing year to date and what we know is theres a lot of standoff and i want to show you this setup here and take a look at some lines. Here we go ready . T has it broken above the downtrend line of course, it does lets put in the bottom line is it a wedge from which it just broke out . Thats fairly clear, too short term and with this, look at this chart and what weve got here is this and then a consolidation. This and a consolidation thats just breaking out so were back to the days of the bitcoin bug, perhaps. I think the important thing is not about how high it can go, and its that the lows of december are likely to stay as important lows and if this is an enduring thing to be played on the long side. Carter, why dont you come on over weve got lots of questions here he works that machine ever. Jonah, come on can we give my man, jonah. How great is jonah fantastic we do have the bitcoin bug up just in case you didnt notice carter, i read today that one bitcoin strategist type person said there is a nearperfect negative correlation between bitcoin and the s p 500 since may and that happened to be when china decided to raise tariffs on the united states, and im wondering from your standpoint, from a technical standpoint is there any sort of inverse correlation to the markets the thing about correlations, as you know, is theyre enduring until theyre not. They have duration and for certain, lets take oil and there have been times when oil are very, very strong and yet the transports are doing well and that shouldnt be the case and sometimes its also with all commodities and theyre moving in a certain direction it doesnt matter what the currency will do and it means the corner will move up. Its in effect sometimes not the bitcoin goes hire the temptation with caller level, who knows the point is it bottomed in december when everything bottomed and it also is gapping of late which is fairly rare and it hasnt had a lot of gap and something that trades 24 7 is very likely to have a gap and its got two gaps this year and thats a very bullish and aggressive thing it reflects insensitivity to price where people are paying almost anything to get in. Do you have any kind of volume overlay there that. Not so much as the setup is so remarkable and people who are dealing with pencil and paper talked about wedges going back 150 years and theres a perfect wedge and it broke out. Its kind of nice. Im going ask you to take your technician hat off for a moment, carter are you surprised with how well gold traded despite the fact that gold has traded well and is that a tell in your world . Thats the hope as the rate environment collapses and thats a sort of a negative for the dollar and yet the dollar is a safe haven and the state of the dollar has been fallow carter, thank you would you rather . Gold, silver or bitcoin thats a good one the gold and silver charts are constructive and the knit koin are more dangerous to me because it was at 3,000 a few months ago and people are saying it will breakout about 10,000 and i dont have a good feel for it and the chart suggests that the gold and silver are a nice uptrend and you will continue to be worried as some people at this desk are, ex, pete. I made a bunch of them. Gld has been all over the place. I know dan has seen it gld, gdx, and all of the mine names have been hitting like crazy from newmont ssrm hit the other day which ive never heard of andits another mine and its canadian and most of their assets are down here and those are all hitting and ill tell you, mel, and its been consistent and large and a lot of movement there and people are using this now again as quote, unquote, protection and well have to see and im in all those different names. All right, coming up. Fang on fire facebook and netflix, big techs and big worries behind them . The traders will weigh in plus the hot ipo market is getting hotter and one wall street strategist says if history is any indication, all of the fury can be a sign of the top and hell explain. Later, infamous tweeter and elon musk just said he is deleting his twitter account and the stock was soaring today. Is musks sporadic behavior on twitter over weve got the details. Ua, w rke live from times sqreneyo city. Much more fast money right after thisk exchan every day, invesco combines ideas with technology, data with inspiration, investors with solutions. Because the possibilities of life and investing are greater when we come together. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Theres a reason we keep having the privacy scandals that come week after week after week and its because theres nowhere else to go just last year everyone said ill delete facebook and i cant do it anymore and how many of your friends went to instagram not realizing its the sail. That was facebook cofounder chris hughes with the vastness of the facebook empire and the threat of a potential break up, it is seemingly impenetrable, and the release of the white paper on the cryptocurrency and the move praised as a way for the social media giant to have into pages and finance bouncing back from the privacy scandal. I dont know that crypt ott is there to save facebook and as chris mentioned in that interview how many of you knew that instagram was owned by facebook theyre one of the different verticals all of the time and different ways instagram in a couple of years 30 of the revenue for facebook and are they going to split these guys up, there will be cash to be made, too, and the sum of the parts on facebook would be an astronomical number and you asked about crypto i think it could be big and the idea that at t has made it something that its not just cool for kids and its cool for other areas as well and Companies Like at t and you can pay crypto are you kidding me all of them moves them that much closer to, and that could be a vertical for them that could be big and i dont know how long that will take karen i agree with pete i am not so afraid of the idea if it were to be split up quickly and easily, that would be a big benefit to the stock. I think thats not so likely to happen and maybe it has, what . Eight points from today, its crypto, and i think the weight on the stock from the ftc situation and whatever further we dont even know and whatever further penalties they have weighs much more heavily on facebook and all of that having been said, i still like it here and its not expensive. The idea that facebook could finally potentially become a transactional platform hasnt that been the holy grail especially for core facebook which has been declined. We are misusing the term here and its about whatsapp and its about a 1. 3 billion active users on whatsapp and they bought five years ago for 20 billion and theyve not done anything with it well see, thats what im saying and its agreeing with you guys and the payment opportunity and forget using the term crypto because it is a stable coin and something that 1. 3 billion active users on whatsapp and that expands to 2 billion network wide and companies will have more reasons to be on their platform, right if people can transact easily so to me this goes straight at the heart of all that apple is trying to do with pay. Samsung is trying to do with pay and google is trying to do with wallet and the amazon pay button all over the web and this is a massively defensive thing and i think its great i dont think its just been 8 today. This stock was trading near 160 at the start of this month and its now nearly 190 and thats when they started leaking out and i think theres a lot of good news in it and i dont want expe to expect to see them for a while. Report july 24th assuming the market is benign from now until then and you can make the assumption 197 will be a huge level, but we talked about this a couple of weeks ago and we flagged that 160 level that dan just mentioned and said hey, folks, huge volume on the day and it traded down to 161 50 retracement of the december 24th low and the recent high we made after earnings and the risk reward sets up and here we are some 25, 27 later and heres the stock been get to 197 which it should and you have the alltime high on the 24th of july for more on facebook and more from its cofounder head over to cnbc. Com im melissa lee, youre watching cnbc, first in business worldwide. Im melissa lee. Heres whats coming up on fast. Im forever blowing bubbles ipo mania is heating up, but could it be a bubble thats about to burst a top strategist says yes and hell be here to explain why plus doctor, doctor, give me the news a 10 billion biotech deal has investors running to the group. And the former fda commissioner Scott Gottlieb will tell us why there could be more deals eaahd. Theres much more fast money right after this went straight on rabbithoe like a tunnel for some way. Ive seen a cat without a gri, but a grin without a cat. Hey, mercedes, end audio. Change lighting to soft blue. The completely reimagined 2020 gle. With Intelligent Voice control and available third row. Your adventure awaits. Visit your local mercedesbenz dealer for exceptional lease and financing offers. Mercedesbenz. The best or nothing. Weveryone, looknk isntat your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. Welcome back to fast money. Its been a redhot year for ipos and investors have been flooding into the stocks with the handful surging triple digits beyond meat leading the pack over 500 , and it doesnt look like the necessary is about to stop and bob pisani is at the nyse seven this week are coming and weve had 66 ipos so far this year and theyve raised 26. 7 billion that is a very strong first half considering the ipo market was not even open in the first two months of the year due to the government shutdown. So incredible returns here its the overall returns that are impressive 57 of those 66 ipos trading above the ipo price and thats fairly typical look at this the average return so far this year is 22 , way above average and the average firstday pop is 28 . Heavens, that is way above a typical number so what exactly is going on . The companys doing best, the ones that are really popping are high growth companies. So we saw beyond meat, we saw zoom and pagerduty and theyve had pinterest, tradeweb theyre all 40 all very high growth and even the last three ipos from last week, chewy, fiber and crowd strike, theyve had huge gains in a few days and they cant say its cybersecurity and anything is popping that has any growth and well see what happens when we get the serve more ipos and slack via a direct listing and were counting it that way not all high growth have been the winners and uber and lyft number three and uber is closing the gap a little bit what do they lack that the others have . Investors are not impressed with the economics of the deep losses theyve seen there and in addition, both suffered from valuation issues and remember, neither of them have had a successfully publicly traded peer, and both priced well above their last round of funding. Theyre off on a little category by their own back to you, melissa bob, thank you. Bob pisani if history is any indication the history can spell trouble for stocks noah from stanford and bernstein. The number of ipos that go out in earnings . The returns what we found going back 30 years is peaks in ipo activity tend to be correlated with more muted forward returns and not negative, and a headwind to the market and interpreting that im not sure if its that the ipos are just too much supply for the market to take down or if corporates clever and when they time the ipos and they do it after the markets rallied and is it causing one or the other and i dont know whats the answer and it is a consistent, historical pattern what weve seen so far does that make you concerned about forward returns and how far out would you be concerned about it . I would say two things. First, the wave of activity in terms of the big booms weve seen and the late 90s and the postrate financial period and 2016, we saw Economic Activity pick up and thats correlated with ipo activity and it could be that weve been waiting for some of this to come to market and it looks like a big flush of activity and im not sure exactly how worried i would be just on the activity alone that said, i think it does dove tail with the broader set of market views we have a target for the end of this year and thats not a lot of headwoom and it goes to speak to the fact that whats the optimism and whats getting you excited about the stocks and things are telling you thats old and long in the tooth we spent it at the top of the show, and it was cheap or wloo the deal with and now you have all these issues coming out and its such a crowded fashion at crazy valuations with no real earnings per se if you take a whole lot of them does it make you worried that we have expensive names and six months from now well have tons more stock because they have very small floats. On the one hand, i would argue that valuations at the index level start to compress here because of the accelerants and the margin growth doesnt exist anymore and that usually means a bit of multiple compressions and that said, where were less worried are the growth names and so as Economic Growth slows that the point in the cycle, we think there should be a premium for quality growers and quality compounders and we think idio sasyncratic growth ad if the fed will cut or not and with Interest Rates where they are or not, be patient theres no reason for there to be longterm growths and maybe there is a hiccup in the middle and what is the duration im burning the candle at both ends and im not worried that youre paying a high multiple from a levels perspective for a longterm growth story. Noah, thanks so much for coming by. Fascinating stuff. My pleasure karen, what do you think . I dont know. I sort of feel like seeing markets react as they have for the last few that have just gone berserk that the private equity are rushing to get anything out the door so im concerned about qualityg. In terms of what it might mean for the markets not what it might mean for the markets and are they, you know, do they see this as they normally would and now they might and just shove anything out the door pete . No one talked about quality of growth and i totally agree. You mentioned at the top of the show, selective. You pick around and you find quality with growth and i think you have a great combination there and this ipo market, something that speaks to me is you look at lyft and everybody was waiting for that and uber, right . That was the excitement of the two biggest and you look at where they and are what theyve done since the ipo and people are being more careful about overpaying for some of these names that dont have any earnings they dont make money yet. Those are problems that persist for years and thats a real pob lemm for me. Tesla shares jumping 5 hers as ceo elon musk tweeted that he dloo deleted his twitter account. Should you trust the bounce . Plus former fda commissioner Scott Gottlieb will be here to weigh in on the biotech boom and what hes calling as a day of reckoning for the cannabis craze. That is after the break. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Welcome back to fast money. It was the tweet heard round the world. Elon musk tweeting, just deleted my twitter account it is still active and hes changing his handle from daddy. Com back to just elon musk in just the past few hours you what they say, there are no coincidences and shares of tesla now up more than 20 in june is the markets message to elon delete your account . Dan . Yeah. I think its pretty clear it was the secs message and some of the Board Members message, and i think that obviously, he is a tremendous attribute to the company, but hes been of late a big headwind to the stock or positive Performance Today you search around and theres no other news here and thats it. I think if you just put his head down and did the things that you would expect out of an automaker going against a massive competition it might be okay for the stock. Let me play devils advocate for a second if that is why that he felt pressure to delete his account, might he have less bargaining power. If say, deliveries arent going to be strong and say listen, you have to focus because this isnt working right now. Ill succumb to the pressure to delete the account he should wait for the deliveries to come out for the june time period and then delete the twitter account that they didnt meet expectations im just wondering, is that an interpretation that also could be reasonable . I dont know. I dont know the position long or short i thought this might be the ultimate joke on the part of elon musk to say that hes deleting the twitter account and going back in there and changing his name and apparently dan points on ut th points out, and you wait and dont log in for 30 days and then they decide to remove your account. So it takes some time. So we just need to see him we know he logged in recently because he changed his name from daddy. Com back to elon musk and the clock resets so hell have to wait another 30 days. First of all, i love to throw out accolades when i give dan accolades all of the time. What part of Braxton Wirth a couple of weeks ago. You talk about nail on the bottom of tesla, that sucker cbw absolutely did and we asked him where do you sell the double on the way back up . He said somewhere between 225 to 230. Look where we are now and if you look in terms of a downtrend, this continues to make lower lows and lower highs and youre coming up from a trend line back from december when it was 375, good for carter and get out of your longs now. Pfizer said it would buy Array Biopharma and would this open the gates, former commissioner Scott Gottlieb will reo discuss that, the cannabis craze and much more when fast money returns. henry i thought it was unfair. When when you hear those words that you get diagnosed with cancer. osamah successfully treating it still remains one of the most enormous challenges facing us today. We realized that, if we developed the technology that could take 2dimensional patient imaging and convert it into 3dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. When we first started, we felt like this might just not be possible because Computing Power just wasnt there, but verizon 5g ultra wideband will give us the ability to do this. We wont rest until we see this technology being able to change lives. Look limu. A civilian buying a new car. Ug lets go. Limus right. Liberty mutual can save you money by customizing your car insurance, so you only pay for what you need. Oh. Yeah, ive been a customer for years. Huh. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back to fast money. Its big biotech deal with pfizer with Array Biopharma. Shares of arraysurge 57 as a result so far its been a big year for biotech m a including the acquisition of celgene and the 8 billion of oncology as a deal space he said which name should investors look to as the next takeout price target peter . Its tough to name what the next takeout price target might be and the reality is what did pfizer do here pfizer had a pipeline and they added to it. They didnt jump into the 70plus billion dollar deals and 50 billion deals. They have the cash and theyre willing to have a little bit on debt and i like what theyre doing and thats why i continue to hold the stock. This builds into the 15 different blockbuster drugs right now in the pipeline. This can add to that because of the fact that what array brings to them is more on cancer and colorectal and all of that will be huge for them and i just think that this makes total sense right now for fierz papfir a lot of guys were bashing this and i think thats the right thing to do right now and been there for 25 years and doing exactly the right thing and there were names that hit recently and i was talking to one of the producers and ffrmod and there are some that makes sense for someone along the line the problem is that everybody wants to make the big, big deals and i think there are small are names out there and this being one of them and there is a bigger opportunity for a name like this that could be for pfizer in the future. Former today commissioner and he oversaw a Record Number of drug approvals helping to combat everything from the opioid prices to the rise of ecigarettes and he just joined New Enterprise association which specializes in healthcare and Technology Investments where he worked before becoming fda commissioner cnbc contributor Scott Gottlieb joins us from washington, d. C. Great to have you with us. Thanks for having me. In your capacity back at your old job i oner how you look at the landscape and how you interpret whats going on with the m a wave particularly the focus on cancer and how you translate that into what you guys are investing in. In oncology were seeing a renaissance and the biology of cancer and thats leading to regulatory changes and thats creating the compounds and you are seeing early stage Clinical Trials with the cancer compounds because youre able to select populations of patients that are exquisitely targeted with the drugs being put into development because we are targeting the underlying mechanisms drawing disease. Thats ultimately good for patients of the 59 com pounds that were approved last year by the fda in 2018, novel compounds, 19 were in cancer and there were 38 supplemental approvals in oncologies this is a renaissance time for oncology over the regulation that enabled this to happen that facilitated these Clinical Trials and facilitated the path for approval the change in regulation followed the science you see tissue agnostic arrive willas and it is indications based and not just where the tumor arose in the body and the molecular trials of approval based on how the genomic and the things like basket trials that study drug effects and multiple tumor types and if it can show a response for tumor in organ systems and you can get approval, and previously we looked at oncology based on where the tumor arose and because the drug themselves that target the underlying basis of the disease and now the fda is approving drugs based on those molecular targets and recognizing that the disease is something the same regardless of where the tumors are rising. On the venture level, where is a lot of money going outside of oncology. Whats the next frontier the next frontier that we havent cracked the biology of is the brain and there are degenerative diseases where we really are in the early innings of understanding the biology of the brain. We have effectively drugged the major organ systems in the body and weve understood how they work and how they can go awry to create disease and we dont have that when it comes to neurodegenerative diseases and thats a huge medical need and a job opportunity. I want to talk about alt meat with beyond meat hitting the market, theres been such an interest in these alternative Meat Products out there. Do you think the fda should take any sort of is this in the purr slew of the fda at all to make sure that its safe. Well, absolutely. The plantbased Meat Products are squarely in the purview of being with the fda and impossible foods took an interesting regulatory strategy getting their team edited to the soy product that constitutes their burger, so it was a novel, regulatory path to the agency and where they more regulatory uncertainty is the cultured meat and meat being developed that mirrored Bio Technology processes as sort of substitutes for slaughtered meat this is another significant opportunity of Companies Like finless fish and memphis meats getting into the space and the costs are coming down to the point where these are going to be competitive products and we were fitting that this would constitute a significant portion of the Market Going Forward or eventually as the costs continue to come down the fish products fall squarely within fdas purview and when it comes to beef and poultry, there is some ongoing questions between usda and fda about which agency has jurisdiction over which parts of that culturing process of that manufacturing process . We settled a lot of it when i was at the agency, but there are lingering questions Going Forward about where the regulatory lines will be drawn. The term cultured meat gives me the chills. I want to ask you about cbd and thats a topic that we talked about a lot and were seeing more and more products hit the shelves at main stream Retail Locations like walgreeny and and whats your take on cbd and how much regulation will there be here . Cbd is not a benign compound and there are side effects associated with taking too much cbd. If you have cbd products in your food, you are getting a pretty high dose of cbd and theyd find a legal path to the marketplace so the fda needs to figure that out and what the fda path will be impea be to come in and file petitions with the agency demonstrating that this substance can be safely put in food the challenge right now and the political challenge is that cbd derived in hemp and hemp can grow in a lot of soil that isnt rich so you meet states and seeing this as a real opportunity to grow out of the a and its a highvalue derivative so Everyone Wants to find ways to put cbd into the food supply and create a new marketplace, but it needs to be done safely. You called it snake oil to me look, i think the science the uses of cbd have gotten well ahead of the science there is an approved compound by gw pharma that have shown efficacy in pediatric seizure disorders and there will be other yoosuses of highdose cbd if it will calm your dog while you go to work, and get it through a Lightning Storm and i think that sounds hokey. I think the uses of cbd and what people are trying to do with it has gotten ahead of where the science is dr. Gottlieb, thank you for your time. Scott gottlieb, guy adami, we covered a lot of ground. First of all, i think that was the first time he was on the show number one, great interview. In the stock world, i go to two places i understand they missed out on alzheimers and biogen, too cheap here blue bird bio, if you remember, that was everybodys favorite pick and serepta now is the crosshairs for somebody to buy them so those were my three snap coming up, its been clear skies for the cloud stocks and betters are getting big. We are live at the nasdaq in new york city. Much more fast money still ahead. Welcome back to fast money. Dans at the plasma with what t expect the Options Market is implying a 5 move in either direction and thats in line with the anke of the last four quarters and down about 5 this one looks kind of cheap to me as far as the implied move is concerned. Heres the oneyear chart since the start of 2018. Look at this thing its consolidated nicely at the prior year highs and it had a dip and it found some technical is up plight in the 200day moving average and how do we figure out the implied move and we take the weekly, and that is the call premium and the put premium and it expires this friday and thats about 12. If you have a directional bias and you wanted to find your risk either up or down, you can buy the at the money call for 6 or money put and that way youre risking 2 of the stock price. To me, this implied move in adobe looks fairly cheap. For more options aconti, full show friday at 5 30. Stick around final trades up next final trades, Pete Michelle and i talked about ipos and one of them thats really working and it continues to work for the upside dock you sign giddy up. Chairwoman . You have to own some s p puts and something bad could happen. Dan nathan. If youre along karens j. P. Morgan you can sell the xlf against it. Guy one thing i learned over the years you go with the hot hand there, mel you know who has a hot hand carter braxton, and that costco, he was right about thabrkit eang out. Dont g my mission is simple, to make you money im here to level the Playing Field for all investors. There is always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends, im trying to make your money. My job is not just entertain but make you money call me or tweet me jim cramer. Can investing be fun are we allowed to enjoy buying the stocks of companies we like . Maybe if there w