Transcripts For CNBC Fast Money 20240714

We begin with the most important week of earnings season. More than 130 s p 500 Companies Reporting results including three big fang names, facebook, amazon and google. So we thought we would play a game the good, the bad and the ugly in this weeks tech reports. Of those names facebook, alphabet, amazon which is the good, bad and ugly. This is a new game. Old song. Yes classic song any of the actors in good, bad and ugly why do you ask me oddly enough, im glad to be here on a monday very excited to play this new game the way you line them up on the screen is the way i would line them up in my head the good is facebook why is that . The bad news theyve thrown at it doesnt matter. The stock made a 50 correction when it traded down on 164 on huge volume. I dont want to like it but i think it will retest the old highs. The bad amazon not necessarily the quarter will be bad but the price action might be we pushed up against those levels we saw in september i believe of last year 2025. Theres potential for a double top. Thats why thats the bad. The ugly as much as i hate to say it, i think alphabet might be the ugly. Ugly because quite frankly over the last three or four quarters its been that i dont see why it will change do you think facebook could be ugly . Right it could its not an option. I am long sort of begs the question. If youre long youre not excited about earnings why are you long to me its a much bigger story than one or two quarters i dont like that last quarter at all there was a lot to not like about it and i dont know it will turn around right away. However the valuation at this level is compelling to me i can wait a while this is an extraordinary business, trading. If you back up cash at 16 times earnings 16 times for this kind of business. Thats extraordinary so i will hang on to that. Im nervous about it for sure. Facebook im in guys camp im more optimistic about that and google, you got to do a better job explaining yourself if you have another weak quarter which you might, thats okay, that happens we need more explanation i fit somewhere in the middle i tend to agree on google with karen. Guy had amazon as the bad. Facebook is good so my good would actually be amazon my bad would be facebook which makes a good fast money. Heres why amazon is good. They focused on profitability over the last four or five quarters much to, i think, at times disappointment because people were finally looking at this company as a Growth Company that stopped growing how do you have this multiple. Ultimately i do think they will start to give you north of 20 neutral growth and i think thats really the issue. When i look at facebook, despite the fact that its been and maybe because of its been such a great run for the stock the realities around the Regulatory Environment the libra coin is not a game changer for them revenue wise any time soon their expense margins continues to go through the roof that would probably be my ugly if it wasnt for google which i do think is a Great Company and agree with karen the problem with google right now and what makes this quarter ugly not the company and not the valuation, not a long position i have is that i do think there continues to be margin depression Google Properties this exciting Growth Engine of these things they own, frankly last quarter was showdeceleration dill they give me something out of youtube and until the Regulatory Environment changes its tough sledding. The price action of the stock into earnings play a role . It does for me. Absolutely so you take Something Like google which is my ugly. That has lagged behind all these others were talking about other stocks that are near their highs. Maybe they will do double. Maybe they will break out. Google has lagged behind put that in the ugly category until it proves itself the other two are trickier facebook has had some decent action, price action recently but also the news has been terrible on it they have been completely under attack libra and the libra coin is several years away they are trying to combine it to compete with this super app internationally so until that is resolved there will be a cloud over it. The price action is pretty decent put that in the middle there. There is no middle the bad, good and ugly. Facebook is bad good if i had a fistful of dollars i would buy amazon i bought that, i think. Very good the actors, by the way. Would you rate them the same way if . If the price action in the earning report were different. Youre changing the game. Im just wondering. When i asked is it about the earnings . Right i guess the question is was your ranking thats a varied question. Ill play along with your reindeer games there, young lady if amazon was still floundering at that 1800 level where it traded down toby the way last quarter i might give it a little bit different rating the Earnings Report ultimately is decent is the set up going into the stock. And its a little different because all the bad news, you had that flush to the down side. We test the highs. Traded down to 164 50 on monster volume. Now the stock with a myriad of bad news has only gone higher which in my book makes it good i dont understand how the price action for any company if we are talking about price action and we have a great chart. Ultimately, if you got a company like amazon which is near all time highs and trading, if you look at that chart, almost essentially a move to the next level higher if you think about what facebook did. These are bold reasons why people should be cautious. Of course i was positive on facebook and on amazon if libra coin is something that it only invites more regulatory hassle for the company, gave it, i dont know 30 billion in market cap for what . For something that wont move the needle for me it goes to sentiment what is the sentiment going into the print. When i look at amazon and what the earnings estimates are compared to where we were the last time we were up at these prices earnings estimates are lower. Therefore people arent expecting as much out of amazon so theres more potential for upside surprise in the market. Lets settle this do it this disagreement as to what the good, bad and ugly will be what are the charts saying in this weeks reports . The chart master is here to break it down. Everything you said was very subjective, a lot of opinion and so too is with charts. Meaning you can draw the lines different ways, different charters come up with different concluings since im standing here lets draw them the way im going draw them i would start with the following. No drawings. No charts. Now something to bring it to life what we know and theres no way around this is that amazon, we discussed this has returned to its former high. And this set up typically, we call it ascending wedge represents a lot of tension. My thinking here is that this is the good amazon is going to break out its going to exceed this high backing and filling is normal when you first approach a high you contend with it and then exceed it. Amazon is the one i think is the best of the three. Moving on, lets go another way to look at the chart some people like to call them cups and handles either way same premise. With this set up you get to the high, you back away, reproach the high it gets resolved higher second, is google. Now this is just a big old mess. We know and you spoke of this the double top its not only double top, its a Double Bottom and basically the thing is all over the place. Its not rewarding winners its not rewarding losers. Its both buyable. Notice the gapping and dropping. This is the problem. Most problematic next chart for google its all about alpha. This stock made new two year relative lows as recently as four or five weeks ago its not performing. Thats a factor that comes back its very robust in all back test the one thats sort of in the middle my bias to the down side is facebook. The issue with facebook is this. Its all of these gaps so thats a gap. Yes. Well, theres another gap. Heres a huge gap. The problem with this action is that this is almost schizophrenic. You have the following a gap down a gap down then we have, of course, a gap up, a gap up, a gap up, a gap up next one down. This is almost untradeable on my bias here although in the middle of the road is do you know amazon from my point of view is best in class. Amazon then facebook then alphabet come on over to the desk well bring a chair over so carter explain the gaps. How do you think security when the market opens, markets used to open late overwhelming number of buyers and sellers. Most stocks open quite quickly, almost on the open to have so much selling pressure, the biotech did not come through and the stacks indicated down 20 thats what a gap is down or a gap up you need shocking news if they approve it of anything to have a security gap up or down. Whats happening with facebook theres so many gaps it turns out the quarter reporting is highly volatile, highly schizophrenic situation. Those gaps on the down side as been all about Earnings Announcement thats right. They gave you which makes it it was a fascinating thing because this is one of the most well observed companies in the world and yet somehow all the dcf cant predict the results. Thats the whole hope is somehow you can analyze it turns out nobody can lets talk volume on these moves. I look at amazon where it was the last time. Volume seems to be declining on average at these new highs does that factor into your analysis you want to approach the high on heavy volume and when you back you want the volume on drag theres no selling pressure. You stuck your landing most break outs are associated with big volume. I want to ask you about netflix which is the one stock that has already reported of the fang stocks. Its been terrible in a way that was a test. Think about netflix price action having your minds eye if youre looking at a chart now a huge move in january then dead flat february, march, april, may, june. Dead flat in a period when all equities are going straight up that was the problem it was foreshadowing that something was wrong. Then it gappeddown on its earnings news related i would say even here its to be avoided. To be avoided even now. Carter, thank you outside of earnings were continuing to follow a developing story in the oil market brent jumping again. New video released by irans revolutionary guard shows dramatic moments when soldiers seized a British Oil Tanker in the strait of hormuz on friday so with mideast tensions mounting why arent we seeing a bigger reaction in the price of oil . Would oil be a lot lower without these tensions we talked about this on friday why isnt oil higher. Five or ten years ago it would have been significantly higher the world has changed. I dont think geopolitical is a proxy to make oil go higher as it was a decade or so ago. I dont think it would be anywhere meandering where it is now im surprised if you want to go second level that the Broader Market hasnt sold off, didnt sell off today on the back of all this i think people are discounting this a vix at 14 or wherever we are now prior to this was too cheap. Now i think its really too cheap. If you look at oil prior to this a well supplied market. Particularly if youre talk about a Global Economy thats slowing. Biggest buyers out there china, thats slowing down. You dont have as much demand for it i was surprised we didnt see oil up i thought it would be up 4 or 5 to me it goes to what the investors in oil are thinking is that you know what we got plenty of oil the economy isnt that great the demand isnt going to come in there perhaps this is a one off. If you talk about war in the middle east that doesnt do anybody any good iran doesnt want it we dont want it perhaps they are thinking theres some sort of resolution here as well guy mentioned volatility. Its amazing we have mideast tensions, earnings week and the vix came down 13 and a half im long put happy to own them at this price. I agree. You think in days past, years past oil would move substantially. But i think as brian said neither side wants war they both know its just talk. I believe its just talk so were seeing this response. Im surprised the market is up today, s p is up 12. As far as oil goes price disruption does not work in a period when you have Global Growth concerns. Weve seen this over and over again. The time you see gap higher on this kind of news or sustainable gap when there was underlying demand, in the commodity super cycle. Interesting on a relative basis. The other performance of the Energy Sector and stocks is more extreme when you look at the oil services sector. Halliburton reported today the numbers were not good they were better than expected. Halliburton is up today on the fact that they effectively, profitability in a very poor environment means these guys are running much more efficiently and thats the story stock is down 51 yearoveryear relative to the market again the under performance is staggering. Well hear much more about the rising tensions in the middle east and the impact on the oil market catch our interview with David Petraeus gnome coming up got the call of the day. And later the one stock that could be a big canary in the coal mine for federal. Were live from times square in chw york city. Mu more fast money after this you should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Mno kidding. Rd. But moving your internet and tv . Thats easy. Easy . easy . Easy. Because now xfinity lets you transfer your Service Online in just about a minute with a few simple steps. Really . Really. That was easy. Yup. Plus, with twohour appointment windows, its all on your schedule. Awesome. Now all you have to do is move. That thing. [ sigh ] introducing an easier way to move with xfinity. Its just another way were working to make your life simple, easy, awesome. Go to xfinity. Com moving to get started. Welcome back to fast money shares of micron surging have Goldman Sachs upgraded the chip maker to a buy its our call of the day getting bullish saying they will trade. The stock is up 40 over the past month do you chase here, tim lets note the difference in the chip stocks. One thing to be bullish on memory, another thing on be going after some of the higher tech chips and look at gaming and the sector overall which if you want to be cynical you can say thats great for goldman upgrading semis after they moved 21 in the last four days. The one part they upgraded is the one part that underperformed the argument here for micron is that a reduction in supply coming out of toshiba is something that should be bought and you worked through some of the over supply for this alone valuation is not a reason to buy these stocks as i talk to the the broader base of that sector i do think semis are starting to price in almost perfection not only trade deal but recovery and cyclicality. Were back at the top where we failed a lot of calls. Part of this call was gold mapp also upgrading downgrading marvel, intel getting a downgrade. So its a little more nuance than just general semis upgrade. What i thought was interesting when you look at some of gold mapps other research where they talk about the market has topped out in general if you thought you were going to have this semi surge higher maybe theres better places to go. Micron close to 50. Thats where it broke down before youre not discovering anything new. Youre not lewis and clark here. You gate chance to buy lower i agree with what tim said about, you know, its pricing in a lot of optimism on the china deal and a lot of optimism on the u. S. Economy but mainly the u. S. Economy. Im nervous about boston those things to me, you know, they are all going to move together and i just dont have a lot of exposure to this space we talked about this. Micron was definitely too cheap. We had those conversations reported earnings. Earning were not great we talked about how it made sense. With that said i thought it fell 39 1 2 as a matter of fact a couple of options ago, i picked the stock, dont get mad at me it was me. We were bearish on micron. Thats not working out but weve been steadfast on other games. The one you should take a look at and start taking money off the table is Lamb Research look where it trade in may, look where it traded down to. The stock has had a tremendous run. Take profits in Lamb Research now makes sense to me. Notice headline at the bottom of your screen apple is in talks to buy the smartphone modem business tim, you were mentioning various parts of the supply chain. How they get rid of this business good for intel yeah. This is a failed start for them. Again remember intel was finding it very hard to get themselves in the hand set business and im not sure what this does for apple. I will say if you listen to distributor arrow who just last week basically gave poor guidance for the first time in 15 quarters. They are seeing in components really a lot of weakness and actually seeing a build up in inventory. I do think its a case where below the surface theres a lot of different stories to be told. The this headline is very interesting from the apple side. Qualcomm is trading lower the theory i guess being apple moved away from buying chip sets elsewhere. The signalling for apple this is a company thats supposed to be going into the service, growing that weve all been waiting to find out what they will do in that area now they come out and buying a chip maker they want to lock in that supply chain. I understand that. I think apple would be up a heck of a lot more if they bought somebody else out. Lets say they bought square or Something Like that. That type of business would make a big difference it doesnt preclude the other. They need the problem with apple they dont have an app thats great we talk about these service. On my phone i can look at a bunch of different apps and none of them are apple apps youre buying them on the app store. Thats the biggest concern i think apple investors should have right now the app store doesnt need to be the place to go and thats the major part of the Services Growth i would be worried intel, 240 billion market gap company. Many reasons to be bullish intel or bearish but im hard pressed to understand why this deal which on the headline is at least valued a little over a billion dollars. Moving the stock to the upside, up 2 today. Again you can be bullish intel thats fine. I dont know why this moves the needle at least in the aftermarket as much as it is this deal according to dow jones, well closely monitor this more on our website. Im melissa lee. Youre watching fast money announcer time to take cover or time to get in . Why one top strategist says a pull back is coming. But that could be the perfect buying opportunity hell make his case. And later, a star is born. No, were not talk being hollywood. Were talking china. Well explain when fast money returns. These folks, they dont have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again welcome back to fast money a strategist says a pull back is on its way but resist the urge to sell. Lets bring in chief Market Strategist welcome. What kind of pull back are we talk about almost like the may pull back its not that first of all think of it in terms dont fight fed. Why not follow the fed human nature theres always something is wrong when the fed is cutting rates dont fight the fed, its not fed related, not fundamentally related. It comes down to we had a heck of a move off the may low and things got overbought a little too enthusiastic where we were on april 30th and made the call. Youre saying like a 5 or so pull back. At that point you should buy that dip youre fully invested here dont do anything. I said it so many times on this show its almost boring until credit shuts down you want to buy every dip thats the fact of being at a new high i think its a really important point as long as credit is oranges which sirkts you want to buy the dip. As long as theres a race to the bottom in rates dont fight the fed does that still hold water . Theres an ecb meeting this week theres talk of a preemptive cut. If dont fight the fed still hold water theres been a shift, a major shift. I almost called it a generational shift in fed thinking unemployment at the lowest level in history one of the lowest levels in history. They raised rates because they are worried about the impact on inflation. And you got 1. 6 core pc e which for the viewers thats core inflation. You got to be pretty scared. If you got unemployment at the lowest level its been at, solid gains in average Hourly Earnings and the best you got is 1. 6 so what theyve been saying in the last month is very important, Steve Liesman picked up and not everybody picked up, they said they dont want to beat japan and now europe. They are telling you japan and europe are in this negative rate environment they cant get out he told you he doesnt want to be there that tells you, that tells me there will be a lot more aggressive weve been looking for a fed rate cut in the summer time since december this will get aggressive not because the economy is tanking but if Inflation Expectations go too low and you start to spiral down in Interest Rates you got a problem. They will try to beat that before it happens and they may beat you if all we have to worry about is credit shutting down, what does that look like . What does credit shutting down look like . Its a great question corp operate credit spread high yield debt. Barclays high yield debt theres something that anybody can get, go the chicago fed website. On there find the National Financial conditions three indices that major 105 of credit risk. I wake up every day trying to figure out how im wrong i dont come out here and figure out how to be billish. I look to see if the story has holes. Only time theres holes in buying a dip when the credit indicators are going bonkers two of the three indices are lower or at a cycle near to it look at 2018, look at 2015, 16, 2011 the way i categorize the economy, bumper bowling. You know bumper bowling with your kid you cant get in the gutter. Bumper bowling is you throw the ball down the lane you cant fix debt with more debt this is not going to end well. When you get up to 3 youre hitting the left bumper and come back in. Slows the economy down back to 2 wow we get to refi that debt. Picks the economy up why could you have a reacceleration next year because rates went from 3. 25 to 2 theres a massive refi going on the whole story in the first half it will slow down now its the opposite. Tony good to see you. Thank you. Putting aside the discussion of bumper bowling that will smash controversy. I was going to talk about that we should go bumper bowling tony is talk about potential asset bubbles and leverage loans and u. S. Treasuries. You cant disagree with that correlation between stocks and bonds right now is almost one that concerns me still ahead a big tech meeting on huawei wrapping up at the white house. Well take you to washington for the details. Well break down the Key Headlines when fast money returns. Welcome back to fast money im melissa lee. Big tech leaders wrapping up a meeting at the white house on huawei lets go washington for the latest reporter melissa that meeting lasted for just over an hour, so you can see the ceo of bro broa broad broa broadcom President Trump attended a portion of the meeting he heard directly from u. S. Chip makers and other Technology Companies about the impact restrictions on doing business is having on their own bottom line the administration is trying to strike a balance on one hand trying acknowledge Global Supply chains are very difficult to unravel but doesnt want to be seen as walking back from its hard stance on huawei earlier today President Trump spoke to reporters in the oval office and says the u. S. Wants to be a leader in 5g i know all about huawei i know all about 5g. Were working on it. We have companies that are now getting very, very strong in that department. Were doing to have 5g well have the best 5g in the world. Our silicone valley cannot be competed with. Nobody can compete with the silicone valley for the brain power or what we do. Reporter trump said he also wants to find out more about a report that you had way helps north korea build its Wireless Infrastructure, so, melissa, this is one reason that china hawks on capitol hill say that you had way remains a National Security threat. Back to you. Thank you theres a lot of ways to go on this huawei story in terms of trading. Impact on chip makers but potential impact on any sort of china trade deal here. I think the trade deal is the most i wanting thing right . I think the president is trying to walk this fine line there are bipartisan hawks adamantly against huawei doing business with them in any way, shape or form. The president said we can strip out the stuff that is risk to our National Security and still do business. I dont know if you can walk that tight rope. I think thats what hes trying to do to get that deal done. With that said i dont think were close to getting a deal done Washington Post article, i dont know if you had a chance to read it fascinating stuff. They found over the span of eight years huawei along with state owned enterprise helped develop Wireless Infrastructure for north korea. Effectively, i mean it sounds like huawei and this other company, this Chinese Company helped north korea violate or get around sanctions in terms of building out its own structure i think china has been very opportunistic with north korea and theres enough cooperation all the reasons to want to control not only huawei but 6 other companies that were banned its not just huawei its about reaching into that network and web and its not just the u. S. Government the rest of the european government, uk met today, essentially talked about they are waiting until the u. S. Is clear. They are not going to do anything on this too the rest of the world waits while we figure this one out i hate to make it sound u. S. Centric but i dont think the u. S. Stands alone on this issue and as guy said not something easily resolved. This is right up there with one belt, one road, made in china. Who do you think wants to be first . Everybody. Heres another big story were following overseas german auto parts supplier continental slashing its outlook. Its changing consumer demands and you flagged this you thought this would be a canary in the coal mine. We have ford reporting later this week. Last week european car sales were terrible. Continental comes out and says listen things are not that great. What i found interesting about this is volkswagen is one of the largest customers. You already had the ecb at negative rates tony was here talking about the fed doesnt want to be trapped in this. You start to see stuff like this you get the fed tube lot more aggressive we have ford coming out this week well see how auto steals are here in the u. S. Thats a big part of courtroom demand again talk about stagnating and slowing economy makes me cautious i am long gm. I rather be in gm over ford. Gm pared down their exposure to europe ford the still has exposure to europe thats where i rather be but i mean they all just trade well gm, doesnt trade well at all. Given the earnings power that it has. I would like to see them put up another good quarter hopefully one day epithet get credit for it. Think about the warnings and bad news we got out of a lot of german copes sap, bosch not bosch. And then continental now ahead of an ecb meeting on thursday one of the things that Global Markets and investors should be happy about is the German Economy needs the ecb to be as dovish as possible germans have been pushing back in days before driving inserted themselves but brian brings up a great point. Auto sales have been under pressure that it. When i look at u. S. Stars were not expecting any miracles peak auto was a trade three years ago. Gm is up 20 off those lows with six and a half times earnings multiple i agree with karen i dont know what it takes to knock it out of this range i feel very comfortable in holding this Company Still ahead boeing hitting more turbulence. How you can trade around the negative headlines well tell you what wall stetadre h to say about its report much more fast money right after this welcome back to the fast money two rating agencies slashing their outlook on boeing. Lets go to phil lebeau. Its coming from finch and moodies both taking their credit outlooks for boeing from stable moving it down to negative and they all basically said the same thing when you look at both of these. They said host potential issues regarding the 737 max whether its can they deliver or get these planes back in the air by Fourth Quarter which is the assumption will things have to be pushed out to next year increasing cost and financial exposure they are not lowering the Credit Rating of boeing remember boeing reports earnings on wednesday now just last week that the company said you can expect the earnings to be reduced by at least 5 billion that happens before the bell the Conference Call and what analysts get to ask him thats the focus on wednesday also in regards to airlines that have exposure to the max, dont forget american has 24 737 maxs. It will be reporting on thursday morning. Well talk about the max and where this airline is as they head into the second or fly now in the second half of this year. Phil, thanks. Lets trade boeing first of all. One of the points that fitch is making is operating margins would be impacted for years to come i dont think it will be for years. Maybe im wrong. Fitch should know better than i. Im hard pressed to believe its three years. Boeing will rebound from this. I understand the stock was down. It makes sense especially given the bounce ill say this. The rating agencies historically have been late to the dance and i think they are late to the dance on this one. I would favor being long on boeing or short it the risk to boeing is that this delay goes on for longer and longer and people go after it go and switch some orders. Thats the risk. We dont know what the investigation will valley. Just buying the stock i think youre subject to all these headline risks that i rather not be subject to. Which brings us to the question how do you trade stocks with headline risk we saw some instance in todays news Johnson Johnson going to court over the issue that talc causes cancer. We have a settlement with the ftc over the huge breach, privacy breach how do you separate what is worth taking pause and what is worth sort of putting stock into its hard to know ultimately. I look at Something Like boeing and obviously weve had tons and tons of bad news at some point the market gets bad. It stops going down on news that a month or two ago would have been negative. This i look at as really not important to the boeing story because this isnt a credit story. Maybe the margins would be impacted but still that wouldnt i dont think the credit story is important here i just think scenement gets washed out we saw it in facebook when they had bad news and then more bad news and more recently they had what would have been more bad news ftc said it was positive but there was, i forget, 100 million. A very large number of accounts the that they had been exposed to i dont know who i dont even remember the news exactly. Thats my point. At some point the markets get they are tired of hearing bad news and reacting to it and weve seen it. We still have facebook boeing bottomed a month or so ago. How about a case with Johnson Johnson which talc is a tiny percentage of revenues and we saw the stock move down. Its a company that people were struggling with not just Consumer Products but their medical product business then their pipeline. I made the argument recently i like j and j relative to their big Pharma Business they are growing high Single Digits thats something other guys are not doing. Boston these Companies Back to your original question an environment where youre worried about Global Growth, these are both very defensive companies with fantastic Balance Sheets and i think you drive it breaking news out of washington on the debt ceiling Contessa Brewer has the details. Reporter the president has just twisted im pleased to announce a deal has been struck with Senate Majority leader chuck mcconnell, Chuck Schumer and nancy pelosi and Kevin Mccarthy on a two year budget and debt ceiling with no poison pills. The president then says this was a real compromise in order to give another big victory for our great military there has been the standoff over how to consider funding for the va mission, whether that was going to be considered on parity with the military and nonmilitary spending according to the president a deal has been done this was a big relief because the house goes into august recess on friday melissa. Just made it by the deadline. Thank you. I would think this is good news for the market on the other hand this removes one more reason why the fed might act aggressively next week you cant say the market has been well knwho knows. Its not bad news for the market but i cant believe well get a meaningful rally this goes back to one of tonys statements. Asset bubls. U. S. Government debt, the federal debt level is essentially at postworld war ii hines ten year recovery. How do you explain that. Talk about asset bubls created by too much money and lack of cal responsibility at some point the u. S. Government has to pay for it what percentage of the world stopping paper thats fine the asset the credit bubble, european debt and then leverage loans, may make look the u. S. A better relative value. Theres no way we should have this debt level ten years in recovery the point is the reason why the market hasnt reacted to this negatively or positively because Everybody Knows you have to come and buy u. S. Debt because you get 2 versus negative percent do the mh. At much more fast money after this for your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. Xfinity mobile is a designed to save you money. Whether you use your phone to get fit or to find the perfect gift, youll use less data with a network that automatically connects to millions of wifi hotspots and the best lte everywhere else. So you save hundreds of dollars a year on your wireless bill. Xfinity mobile has the best network. Best devices. Best value. Simple. Easy. Awesome. Click, call or visit a store today. Welcome back to fast money snap reportingearnings after the bell tomorrow. The stock has had an incredible run this year up more than 150 . One ochption trader is betting h rally will continue. Actually there might be several option traders that are betting that the rally can continue we saw calls out pace puts 4to1 this stock moves this week its implying a move of about 14 by the end of the week example of one of the bullets we saw was august 15 call somebody spent 85 currents to buy 1365 of those. As expensive as those calls seem that basically represent asimov of about 12 by august expiration to the upside at least just for these calls to break even that would be in just over three weeks. All right, thanks mike for that what do you think of snap. Our friend who appears on this show regularly has been bullish. Options are going hire make a lot of compelling argument why the stock should be lower. Its not it continues to go higher. The stock goes higher. Ow for more action check out the sh on friday sh on friday up next final trade. Aded option. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade is where people first gathered to form the stock exchangeee, which brought people together to invest in all the things that move us forward. 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. Take a look at whirlpool bouncing around. The stock was up big after reporting an earnings beat but since come down. The call is tomorrow we have a press release and they did say price increases were offset a lot of the impacts from higher input costs, raw materials. Thats why the stock was up from the beginning they came out and said we got these raw material costs but able to raise prices thats a double edge sword because they also said that sales volume could go lower. Thats what the market is trying to figure out right now. Are these increased prices reduce sales Conference Call tomorrow. Final trade time, tim. We talked about autos let me reiterate gm is a fantastic buy at 6. 2 times earnings karen yes in the retail space i do like target even though its had a nice run i think its still got some room to go. Not expensive relative to the walmarts of the world. When a market doesnt do what it thinks you think it should do oil should be up 4 , 5 . Sounds like a riddle. Number two Delta Airlines 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 my job is to entertain and teach you. Call me at 1800743cnbc or tweet me jimcramer. Dow up 18 points nasdaq gaining but