Consumerfacing businesses and both are on the move in the afterhours session and we have Team Coverage to break down both of these reports and lets kick things off with csx with the call now under way and lets get to Frank Holland with the details. Melissa, shares of csx up, and something weve seen in a number of other companies and one of its competitors, union pacific. On that call the ceo says production demand was too hard to forecast in this covid19 environment. Also during the call the cfo kevin boone said the Company Raised 500 million in debt and the Company Believes it is in position for a potential recovery and maintaining a strong cash reserve. Our Liquidity Position is extremely strong with nearly 2. 5 billion of cash and shortterm investments at the end of march this represents multiples of what we would consider normal, targeted cash levels cash may be strong, but volumes are weaker year over year to start q2 its been seen in the three weeks since the First Quarter ended with doubledigit declines each week. On the other side, ceo has praised its railroaders for their ability to work during these conditions and keep critical goods flowing on the rail the company set a new efficiency metric in the First Quarter and rid now, melissa, its all eyes on q2. Thank you Frank Holland. Guy, ill start off with you. How long have we been doing this show a long time. 13 years, actually longer than that. When have we started a show with csx earnings. Not that i can recall, melissa lee, but of course, my age, i dont remember what happened yesterday. Why theyre so interesting this time around is what theyll be saying about the economy and how they weathered this past quarter and what they have in common going into this particularly tough environment is that theyve already cut costs. Theyve cut labor and cut down on fuel costs and theyve gotten lean ahead of the pandemic and csx specifically, and theyre running these railroads so more efficiently than they were even three or four years ago. Steve grasso can probably speak to it, in a lot of ways these railroads have become technology, believe it or not. The efficiencies are all on the back of technology that theyve spent money implementing in terms of the stock understanding that all of these companies will pull guidance out of the Major Railroad in terms of multiples and its probably the cheapest i think it still has room to the upside, but if you want to play stock market here, if we were to get to 64, thats a sort of a 50 retracement of the recent high and the trough low we saw a few weeks ago. So although it was a wonderful quarter despite whats going on and understanding that the pulling guidance if it gets to 64 and you pull a rip cord and live to fight another day. Operating margins were the best on record steve grasso, if you were to believe that some sort of a recovery is around the corner, is this the first place you want to be . A place you want to be at all . Yeah. These places and this segment of the economy they actually lead to your point so theyre going to lead the first on the way down, so as you said in the introductory, theyve already cut and theyve already established where this economy was going. So youre going to see your first signs of life in this segment of the economy in the transportation segment i would go with csx if i was forced to choose, but id rather be in ups. Ups is great at shipping bulk. Fedex is not so great. They ship parcels better, but if youll see a real leading indicator, you could see it with the rails, but if you want to make some money early, ups is probably your best transport to buy. I like grasso pulling out your would you rather five minutes into the show. Thats strong, b. K. , where do you go from here i think csx is interesting because it will be a leading indicator, but a read on what inventories are like and we know we had this huge surge as people started to hoard goods into it, but now inventories are normalizing. So you watch csx and you watch csx for a couple of dint reasons and you will get a read on whats going on with the trucking sector, as well as the shipping sector, plus they have that export coal sector which is really important on what the Global Economy is doing. So no surprise they pulled guidance i think every ceo in the world should do that, but i think this is the place you watch you see csx leading the market and that will make you more bullish. Intermodal was weak, no surprise automotive was weak, no surprise, tim. How are you feeling about csx and if this is a breakthrough of what were seeing in the broader economy . To echo some of the sentiments and the most important thing to me in shipping companies is finding the best cost efficiencies which we brought to you in csx that put you in a good spot in terms was relative for formance to the market, the shippers have underperformed and csx was an 80 stock and doubling down around 47 before snapping back. Valuation on a trailing basis looks pretty attractive. The question is what are they going to do Going Forward . I do think for investors that are looking for those stocks that they say they have one to two years, im a medium to longterm investor and the best of read rails are certainly making sense and i think csx is one of those names openended question, guy. Favorite transport right here, right now. Openended question favorite, well, as you know, melissa lee, i spent a day working at ups so i would echo some of steve grassos sentiment, but i dont know i mean, im not looking i dont think theyre where you want to be theyve had significant runs off these lows weve made and i still think the market stops here at the 2800 level so if youre forcing me to choose which you did, ups, but i say that she did actually, i asked you an openended question. I didnt force you to do anything but if you want to choose, you choose and thats exactly what you did. Oh, sorry Las Vegas Sands hitting afterhours highs and lets get to Contessa Brewer with the details. Contessa melissa, good to see you and gaming, of course, investors paid very close attention to the property ebitda, thats the earnings before interest and taxes, et cetera in macao which was the first of the properties to close and has already reopened that ebitda number down 92 from last year and also theyre burning 305 million in operating expenses monthly. Chairman and ceo says the impact of the pandemic is unprecedented and hes never seen anything like it in his more than 70 years in business and yet he remains optimistic things will turn around and soon i assure you, ive not said dividends and buybacks for the last time. Im looking forward to seeing them again and hopefully very soon he says, in fact, as soon as things turn around hes going to get back with the board and theyre going to revisit the whole issue of dividends heres more good news. Las vegas sands has a strong Balance Sheet and 2. 6 billion in cash and access to 4 billion in credit and its paying its employees globally and theyre anticipating a quote, unquote here, much better place in china this summer and they say far better than the u. S. And theyre look at a phase reopening in china, perhaps guangdong which is a big theater into macao, and that may be why youre seeing the stock now up in extended trading such a big jump as the call continues here, melissa. Contessa brewer with the latest on lvs which is up 6. 7 after hours. Steve grasso, is this best in breed compared to a wynn compared to an mgm so this has always been m favorite vegas i shouldnt say vegas stock. Its just a gambling sector stock and its more weighted to macao, but what this has that the others do not have is what contessa just said, the singapore revenue stream the others dont get that, and by the way, las vegas by market cap is multiples higher than mgm and wynn so that would make it best in breed and our guest if youre playing along with fast money has always been my favorite, but if you look at the charts, the charts say that mgm and wynn are a better buy, but las vegas seems to be the special one in the sector id still be a buyer of lvs. You have to wonder if the singapore exposure while a good thing right at this moment in time maybe a bad time since theyre seeing the number of covid cases rise as we speak here you have to give props to nomura because last year they upgraded lvs ahead to a buy rating that they expect it to begin normalizing in the beginning of june which is basically right around the corner here can we make that extrapolation for some of the other names that are more exposed to china . Yeah, look, i think you can i think the macao trends are obviously, we started getting this macao data in november and into december, but before that we were actually seeing gross gaming revenue begin to reaction cell ra reaccelerate into the Holiday Season and the one who has made prudent steps to managy fre Free Cash Flow and Balance Sheet is the one you feel more comfortable with in an environment like this. When covid19 broke out i remember saying this, mel, and you were probably home with two very cute ones and we have a dynamic where we dont have a Consumer Credit problem. We have a shortterm disruption and ive had to make an adjustment in that view and people have, but the case here for a recovery and what weve seen in other parts of the economy and look at taiwan semi and other parts of asia for those economies that didnt shut down and you have to be encouraged at some of these early signs even though we know this will not be a Straight Line higher. I ask myself the question very often, guys, what is the first thing im going to go out and do when things open up hopping on a plane to las vegas may not be among the top five or the top ten. Maybe it was never in the top five certainly not in the top 20 anymore, b. K to all of you, singapore has shut down again because theyve got more cases you look at what happened in beijing last week. They opened up their gyms, all of a sudden they had an explosion of cases and they had to close them down again so i think this is going to be whats happening in this economy. It will be fits and starts and the absolute last thing that i want to buy in this market, well, actually, the last thing i want to buy is cruise ships and the last thing i want to buy is casinos. Guy, last word. Well, hopefully youve used this time to watch the godfather and maybe youve learned something about the casino business, mel what i will say is take the other side of b. K. And say i think wynn resorts can probably go higher. I said it last week and it can levitate into earnings in the end of the month citi lowered the price target to 107 and this is a stock that can trade 85 into earnings and i think wynn will get you done and i would use again, the time you have at home to embrace both godfather one and two. Back to you. I have nothing else to do at home nothing else to do coming up, sounding the alarm, legendary investor mark mobius is with us, and why he says there may be more pain ahead for investors and the race against time for retailer and well tell you what sent shares of macys tumbling today fir fast money is back in two. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 12 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Welcome back to fast money, crude coming back, and the Coronavirus Spread stalls global demand. What can be ahead for this commodity . Tim, are you in oil at all right now in do you dare dip your toe in there i i i own a couple of the integrateds. Chevron, i own some schlumberger and im of the view that the price action that we awe this week is the price thatmakes a bottom i recognize the supplies and know the storage issues. The demand cuts that will be difficult and more difficult to work off and aggregate oil demand will be higher by the end of the year and this will be a longterm opportunity with the best of breed. I want to be specific the price action convinces you a bottom in the equities or in the commodity . I think in the commodity. And i think in the equities, and its very difficult to make proclamations and have you seen it, and the equities traded fantastic and if you look at the performance of the xle you can make the argument on march 13th that its outperformed, but weve gotten more insight. Weve gotten insight into the integrated names like bp who might have to cut the dividend and others who i dont think, schlumberger and baker hughes this morning you got a sense of where Free Cash Flow was and capex and opex efficiencies are and for longer term investors theres an opportunity here and i think you dont have to dive in, but those are stocks that ive been nibbling at. B. K. , you look like youre being thoughtful about what tim is saying. What are you thinking . Whats in that noggin of yours i think what you saw this week in oil or at least today in particular is from the president , the strategy to blame prices higher, people are concerned that there might be a war in the middle east and your short sellers disappear. Thats step number one and lets hope it doesnt escalate and we dont have a miscalculation going on, but i think thats a strategy to tims point, i think youre starting to see the signs that a bottom is here that being said, we than in texas. In west texas, particular because its cushing the wti and cushing, oklahoma thats land locked and you may see some in the june expiration some fireworks again. In general, if we look at the brent crude price, i think youre looking at a bottoming type of action here. Well then, guy adami, does that tell me that tim may be right in terms of finding some sort of floor in those Energy Equities you have to be encouraged by the fact that june crude got walloped yesterday the Broader Market got walloped yesterday and as tim pointed out yesterday the Energy Stocks did reasonably well, if not very well, to b. K. s point, i 100 agree that president trumps tweet was absolutely aimed at the commodity market more so than our foes, and i think for a day, at least, that was successful so i think you have to take some encouragement of the fact that crude got smacked yesterday. The market got smacked yesterday and the Energy Equities, and sos steve grasso, where are you you have to be in the stocks and the equities and specifically in the e p companies, exploration and Production Companies these are the companies that wont be allowed to fail i cant speak to the overall commodity. They used to say your risk was down to zero that no longer applies you can go less than zero, but when you look at these companies, eqt is up 30 year to date cog is up 19 year to date the charts are unbelievable. Stay with the equities stay with the e and p companies and thats where you will make the money. Is that a reason that you believe that there will be a government backstop behind these industries because there are a lot of Industries Getting backstopped that dont look that great i agree with you, and yes, to a large extent when you look at these equities theyre relying on government interventionon a lot of Different Levels whether its supply demand levels and whether its actual bailouts where theyre going to get paid not to pump, so longer term, to answer your question, i dont want like the space, but if youre going to give me this deal right now where i can be paid not to produce and to cut back, then im going to use that as a reason why the stocks up 30 . So profits are agnostic at this point. Longer term, you have a multitude of problems and headwinds for the oil sector disagree, tim i dont disagree. I just want to say this. Im seeing Government Support oil prices is the wrong thing and that concerns me i want to get all of the damage on the table and i want to see shutins and i dont want to support the oil price and i dont want a job on it what were getting to the place is the supply dynamic and the spigot will be shut off and thats very good for oil prices and the price action this week and its the action in the market this week this is the kind of news you need to see. I dont want to see people funding bad Balance Sheets and keeping Bad Companies alive and its not about protecting american industry and think, you want to do that, but i think you have to be careful lets bring in now legendary investor of Mobius Capital Partners and mark, youre joining us in the midst of a conversation about crude oil and im wondering where you stand on the commodity and whether or not weve seen some sort of a floor and if equities will seemingly continue to take their cues at least in the short term from crude. I personally have made a bet that this low price will not last as soon as this say the middle of this year and later this year, i think the oil prices will be covered i actually made a bet on that, but the emerging markets its wonderful. The fact that you have these low oil prices is very good for these countries that are importing oil like china, india, turkey and go down the list, its very, very good news and you notice that china is stocking up and theyre filling up and i think theyre reserves are now up to 70 capacity and it will be more. Its good news, generally. Is that enough of a reason to be interested in emerging Market Equities thats one reason, but the other interesting thing, its amazing. Ive just been doing some numbers and from the peak, the s p 500 was down about 28 and the emerging markets index about 29 . So the difference was amazing to me because i figured that emerging markets would be hit more theres been a recovery from the low as youve seen, 15 roughly for s p and 10 for emerging market, but generally speaking, the declines for s p have been about 20 to where we are now and about 23 for emerging markets. So the different is not significant, but the big difference, of course, is that there are many more bargains in emerging markets now because some of the companies, of course, have gone down by 60, 70, 80 from their peaks so theres great opportunity. Is there one name in particular that is catching your eye that we can be watching that people at home could be trading . I think because these emerging market stocks are not trading and if you look at our portfolio, and this is not a recommendation, we dont know if theyre selling or buying, but yum, for example, is listed in china. Its a chinese branch, kentucky fried chicken, and thats one name we have in the portfolio, but generally speaking were looking at these emerging market Retail Companies that are taking advantage of the internet and trying new things in terms of delivery and so forth. Thats where the story is now. Mark, great to speak with you. Thank you so much for your time. Thank you mark mobius, mobius capital tim seymour, i go to you yum, alibaba and those are the kinds of names that it sounds like mark was talking about. Mark is talking about the consumption demographic, dynamic and emerging markets that also as a veteran weve been investing in for a long time, so yes, alibaba has been very defensive throughout a lot of this crisis and i think it will continue to be we talked about their investment in cloud we talked about the earnings to, un, the growth ratio the peg ratio is very strong and how about Mercado Libre and russia, and where the consumer is playing some type of online e ecommerce or cloud and essentially media. These are ways to get exposure and thats how you will outperform in emerging markets and its making tenyear lows and it will probably continue to mark mentioned the tailwind that the economies can get from this crude price. I know youre worried about japan. This theoretically should be great for japan which imports all of its energy, but not enough its a tailwind for japan its a tailwind for china and thats the very important thing that mark pointed out is that you have to, in this environment, really know your emerging markets you cant just blanket go say hey, im going to buy emerging markets because some of these countries are going to be losers and some of thesecompanies nee revenue from commodities which have cratered. So i think its helpful to japan, but just like when the oil price fell here in the u. S. Thats great gas prices are low, but if youre not driving anywhere, who cares . Good point there. Coming up, the clock may be ticking for macys, but can the embattled retailer make the right moves . Fast tracking the data and what is in store for us when the coronavirus threat subsides . Fast money is back in two. Welcome back to fast money, macys falling 7. 6 to ride out the coronavirus pandemic and avoid bankruptcy. The clock may be ticking for macys macys has four months left before it runs out of cash while kohls, nordstrom, j. C. Penney may only have a few months more than that before theyre tapped out. Guy, this seems like a race against time for the retailers, but if we flip the switch and we open tomorrow would that change your mind . In terms of macys . No because the trajectory for macys prior to this coronavirus was this direction now maybe we got here faster obviously, we probably did, but this just sort of sped up the process, unfortunately so no. 5 billion for macys is not an insignificant number at all. Thats a Staggering Number the only reason i think to buy macys here is youre hoping for a Short Covering rally into earnings in the beginning of may. Short of that, i dont see any compelling reason to go plowing into letter m at these levels. The market capitalization of macys is is a fraction of that, right, tim a fraction of 5 million at this point. Yeah. Its 1. 6 billion, i think, Something Like that today. I think if you look at the sum of the parts and you start to weigh some of these dynamics in terms of the acid base and herald square, they have 5. 5 billion in debt today before they do a raise so thats how investors are doing their calculous right now. Lets bring in oliver from cowan. Great to speak with you. You put together the report outlining the various number of months that each retailer might have in terms of liquidity and youre concerned about other retailers that might number position to trip their covenant. If you were to formulate a list of the poster children of troubled retailers, who would be out there . Well, unfortunately, we are cautiously optimistic. Whats happening here is the mall is in trouble we are looking at mall retailers much more at risk. Jc penneys as well, and were watching that. Working capital is a key need. So these retailers are delaying the accounts payable and theyll need to purchase goods for the important fall season and so what were looking at is the disruption in Consumer Confidence and also a transformation at the same time, weve had a lot of problems in the mall and mall traffic had been negative so store closures and the debt covenants and theyre all key risk factors and that being said, chinas starting to see some brighter spots and the consumer is still there, and as we survey consumers, they will come back to retail stores, and were watching Consumer Confidence and unemployment and this happening with Curbside Pickup and social distancing, these are all huge factors and also Unemployment Rate a lot of variables, but you also dont want to forget macys has about 5 billion of real estate and they also have credit card cash flow of about 500 million. Those are some underlying assets to consider in this distress situation. Its important to look at the Balance Sheets,oliver, but as you had said, it is all about the consumer and their ability to continue spending and lets say things remain shut down almost through the summer and were pretty much at back to school, almost near the Holiday Season and consumers arent feeling that much better unemployment is not improving too much how do you then, foresee the future for some of these Department Store retailers. It will be problematic and the months back to school in school and august, school is transforming what happens with retail and the holiday selling period is where retailers make their money so these capital raises are really essential and theres no doubt well have filings and well have bankruptcies and that will spiral. As we get closer to july, august, these are big issues the other big issue is what if we have openings and closings . That will be extremely painful because clothing and apparel is a lot like food. It expires quickly and that will be disrupt testify manage as well and keep in mind, there are tons of promotions and were recommending costco. Were recommending target and were recommending walmart beauty has been essential for some customers and so the online trends that retailers like ulta, that being offmall are more positively positioned. I saw your note about ulta i think it was last week or so and their Balance Sheet was surprisingly strong. Yeah. Its in a good position, ulta. I think furthermore, the online trends even accelerating as people think about skincare, hair care at home and the essentials that you need in beauty and thats a great longterm Business Model with a very good Loyalty Program and a good online interface and prestige its a concept for the future for the long term and furthermore its offmall and were generally much more positive offmall and keep in mind, as we look at this event happening there will be market share gains with pain. J. C. Penney has the los of beauty and macys has lots of beauty and its been tougher for them beauty is a resilient industry as you think about the recession, how do you play stocks in recession, the lipstick effect. Right and thinking about lower access price points, as well so there is a thesis there in terms of being interested in that name in the recession and the context of the recession and thats something were thinking about for clients and investing, as well. Oliver, thank you oliver chen of cowan and company. Grasso, you like to go for best of breed here. Yeah. So costco and walmart are best in breed in this space so just think about it costco has built this world around bulk buying way before coronavirus, and i think that peoples behavior has changed and i dont think theyre going to stop bulk buying after we even come out of this and then you get the kicker of the membership rates and the renewal rates on membership are off the charts and its an annuity with costco walmart, i would like to be there, as well and it is up 10 year to date for all of the obvious reasons. Theyre very strong ecommerce so i dont think you can go wrong either way the other one thats been thrown out, target down 16 year to date maybe you can bottom fish a little bit there because i think theyre a strong brand they will survive, but all of these names you want to think about who will be best coming out of this and whose behavior will not change, and ill throw one more in there, amazon, we think about it as the amazon stock. Think of amazon pantry and how many people are getting things delivered monthly now that never did that before, me included and theyre not going to cancel that, you have prime video and prime music and thats all shelter in place stuff and aws was the original catalyst to the amazon story cloud was more important than ever with shelter in place feel like if you opened that door thats behind grasso youre going to find dozens of rolls of toilet paper, talking about bulk buying guy adami, when we say best in beat, were talking about the ones that have held up like a walmart which is basically at highs. How do you wrap your head around valuation there . You cant i mean, thats been my concern all along about walmart. Its just expensive and what ive said for a while, incorrectly, correctly, that if you like walmart and its valuation, you have to love target i find ulta interesting because people like me are going to flock there for our grecian formula taken or whatever we use for the little grays we get during these times. Just for men. In terms of best of breed is that the one . Just for men the one you comb in i dont have any, as you can tell its funny you mention that you could tell that obviously, i havent used it in quite some time, but what i will tell you is and something that weve been steadfast and if you recall the game we used to play of whats that thing we call that, the power pitch . Many moons ago we talked about this Little Company called gener Dollar General and that sucker continues to go higher dg is the one that gets it done. Fast pitch for fast money anyway, coming up, our call of the day. Well tell you what j j strategy one calls a master stroke and later, a massive comeback in the semi space as das rgsialmotoysue gns re for the sector well look for more when fast money returns every Financial Plan needs a cfp® professional confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Welcome back to fast money. Shares of Johnson Johnson getting a boost today. Analysts at bank of america upgrading the stock to a buy saying it should fare best in this unprecedented environment and j j has outperformed the s p 500 during the last two recessions by 20 or more and this time around, tim, it was interesting because just last night final trade was providence which by the way, hit a new high in todays session yes thats true. It was also my power pitch, fast pitch whatever we were calling that game last year. I like j j its a Great Company and the fact that its a Great Company in recessionary times, i get that report. The reality is that j j, in their q1 actually gave a vshaped recovery guidance the stocks done a vshaped recovery when we talked about it last year it was trading at a 15 to 18 discount to the multiple its closed that gap and you can make an argument that it can trade at a small premium i want to own the company a bit cheaper and despite what we know is a decent environment for pharma and medical devices well see. I think there are other risks for the company that i dont know that are material, but i dont see how this company is going to lose you to the upside and therefore by taking profits i stand by for pharma as a whole, one convenient side effect of the whole pandemic, if there is a upside, but for the pharma industry, its removed the attention from pricing pressure. Thats gone by the wayside. We are thankful now that these Pharma Companies and big pharma, and Biotech Companies are working so hard to make vaccines, cures, et cetera, that all of that pricing pressure talk, thats all out the window, grasso yeah. That was the biggest tailwind that i take away from this space where j j,s pharma unit is getting hundreds of millions of dollars to work on vaccines and were throwing money at any company that can put anything together that could do anything to battle this virus so gone are those day, at least for now. We know that d. C. Has a short memory, but at least for now, were not dealing with pricing concerns until somebody screws up on the pharma side. Having said that, 155 running into tremendous problem. To tims point it looks like the recovery was front loaded. So somebody already bought this worrying about a recession that was going to take place that was a forced recession so it could be front loaded already, but without that worry where you let into this question with me about pricing concern, you might have a little bit of juice left in the tank and then dont discount when you start to see any more positive headlines on therapies and vaccines moving forward, this space and the entire biotech space, biotech and pharma are right down the line well see their next spike in prices well. Thats when you can sell them com plately. Up next, we are fast trackin the data on what might be in store on the other side of the coronavirus pandemic dont forget markets in turmoil. Thats coming up tonight at 7 00 p. M. Eastern time on cnbc. Wl rhtack. Welcome back to fast moneys as the coronavirus continues to spread across the u. S. , we have fast track, to show what life might look like on the other side. Flags out of china today, why dont you walk us through this this is really interesting, b. K. We are all trying to get an edge on what does life look like and for our purposes, what does the economy look like on the other side how are people going to react . Tomtom, the gps company does traffic indices. They do it for every city out there and this is from wuhan which was the center of the outbreak and you look at what it was like in 2019 thats in orange and in blue is what its like today and what you see is weekday traffic down about 21 . On the weekend its absolutely flat lined so if we kind of project that in saying thats how people will behave here in the u. S. , theyll go to work monday through friday, but on the weekend theyll still hunker in place, stay in place and maybe thats what the world looks like Going Forward. Tim, how would you trade this data you can go a couple of ways. You can do the extrapolation of the United States and you can do the extrapolation to the Chinese Consumer and you may think that maybe the Chinese Consumer, while they are coming back there isnt that return to quote, unquote, normal yet in china yeah, and i think the Chinese Consumer has potentially more of a tailwind from stimulus and came into this weaker and at the same time we also have chinese macro data were a couple of weeks away from getting another well get april pmis and well get april import exports and those numbers that we got a couple of weeks ago were very encouraging on imports showing that the consumer were effectively flat on march so that was encouraging for the economy that was the first to go down i think these are interesting, but were questioning throughout the world where theres going some boomerang effect on sickness and the news over the last couple of days and it doesnt really tell you how were going to respond to wave two if, in fact, that unfortunate error happens. Or maybe it tells us that there will be a tepid, a cautious response, guy adami, and that when things opens up, las vegas, for instance. Wynns ceo is urging the country, the state, the governor, the mayor, whoever who will listen to him to reopen the strip there, but if they reopen will people come i think thats the question here, you reopen the economy, whos going to go . Yeah. Thats the thing they can open anything they want, but if nobody wants to go, its not going to really help. Quickly, ill say this its not coincidentally that the market, the s p closed at a spoton 50 retracement of the recent low and the alltime high as did a 276 did apple which is probably a lot of what this report was focused on. If you are in the bull camp, were making a camp. If youre in the bear camp and weve run too much, you take profits here i tend to be in the take profits. Morgan stanley putting out a note today highlighting the air quality of four major manufacturing cities in china. According to the report, cities like home to key apple manufacturer foxconn are seeing high levels of nitrogen dioxide which apple could be on the road it recovery. Steve grasso, do you take heart to this air quality chart . Yeah. Im always a skeptic of all this information, but i guess too much information is better than no information at all, and apple was one of those that we thought would be the first ones to get back to work so i do take heart if it, and to guys point that telephone 5 27, and im long apple as many viewers are. Im staying long apple if you want to use this to add money then use the 275 level, but think abouting some el some and services will have huge impacts from shelter in place. Right now its 46 billion. If you want to buy apple and best in brand. Youve talked to me about that in a number of other sectors and apple is best in breed apple has the brand. Apple also has 5g with the wind at its back. It also has the cloud. It has the 46 billion. Its not going anywhere. Its got a cash hoard. So if you are looking out on the horizon on companies that you want to invest in that are going to be around, apple is at the top of that list. Coming up, intel on deck to report earnings tomorrow what are the Options Markets licg wel have that trade up next. Yr always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. 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 Commission free today. Dont get mad get e trade and start trading i know that every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. 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Xfinity mobile. Welcome back to fast money. We will learn a whole lot more about the state of the semiconductors when intel reports earnings after the bell tomorrow that stock broke into positive territory for the year in todays session. One trader in the Options Market is betting tomorrows report could pave the way for a double digit summer surge mike khouw has the action. Hi, mike hi, melissa so intel traded about two times as many calls as puts today and the Options Market is implying a move of 6. 6 and that compares to the 5. 5 that its averaged over the last eight quarters given the environment were in and maybe thats a modest increase in anticipated volatility and the trade that i was looking at that i found interesting is the july 50, limited risk reverse and it sold the 50 puts a thousand times and it bought a thousand of the 70strike calls and collected 80 cents a share to do it in this trade theyre checking 1. 3 of the current stock price in yield between now and july expiration theyll own it at 50 bucks a share which are modestly higher than the lows and i can understand why you wouldnt want to buy the stock since then. Theyre getting nearterm appreciation and well see profits in the stock goes above the higher 70 strike price by july expiration three months from now thank you, mike, for that look at the semis surging 6 of todays rally. Tim, you would say semis are a leading Economic Indicator this could be a great sign, but do you buy into that we certainly have tremendous recovery off of yesterdays technical breakdown and i think with intel, we have the best exposure to the data center, et cetera, thats most insulated here they tend to be conservative on guidance and every time you expected semis in the fall in the midst of the trade war dialogue to be under pressure they outperformed through this and weve gotten good guidance on taiwan semi, et cetera, and i remain constructive, not negative guy adami, how do you feel about intel going tomorrow cheap on valuation. It was cheap on valuation. It was racing ahead of all this nonsense i think it was trading 69. It wouldnt surprise me to see it back there postearnings on the mike khouw commentary. All right for more options action and more mike khouw commentary, be sure to tune into the fl ulshow on fridays at 5 30 eastern time up next, final trade options tra, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now, youre binge learning. For a limited time, get up to 800 when you open and fund an account. Call 8663009417 or visit tdameritrade. Com learn. Were committed to making college more accessibley, by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Time now for the final trade. We go around the corn. Brian kelly. I think boeing will be the place to get in at right here. Wow i had to do a double take. Bk and boeing. Grasso west rock right now its a cyclical comeback if the market does this vshaped bottom, its a stock thats been under pressure and the cyclicals will pull us out of this if the economy is strong. Westrock, wrk. Tim seymour a funny thing has happened to the financials they reported and they went down and they started to pick back up as people understood the data and the context of the Global Economy. More the case now j. P. Morgan. Guy adami thats sunny out and such a lovely day i can see that out your window you know you can see psx, mel tim seymours got me thinking. Philips 66. Thank you all for watching fast my mission is simple, to make you money im here to level the Playing Field for all investors. Theres 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 just trying to make you some money. My job is not just to entertain you, but to educate, teach context. Call me 1800743cnbc tweet me jimcramer. Now, we know the market roared today