Transcripts For CNBC Fast Money 20240713

Dollars, but hes in luck and our traders are here to help him fix his portfolio and we start with the major news on gilead that weighed on the major averages gilead dropping on reports that the companys coronavirus des v remdesivir it is difficult to part through because it was halted from china that didnt have enough to finish the synopsis on these partial results were posted by the World Health Organization on its website immediately taken down, but not before the Financial Times and stat news got a hold of it. What that showed was that 237 patient were enrolled in this trial and 158 of them were on remdesivir and they had planned to enroll 453. One of the gauges they looked for for success was mortality and how many patient surs viefed at 28 days they found 14 of the patients on the drug passed away versus 12 in the control group. In a summary of the screen shot here they said that remdesivir was not associated with clinical or virological benefits. We regret that the w. H. O. Prematurely posted information on the study because the study was terminated early due to low enrollment and it was under power to enable statistical conclusions. Trends in the data suggest a benefit from remdesivir particularly among patients treated early in disease wall street analysts trying to parse through the data and it doesnt bode well for what we were going to see and we will note the Clinical Trial data from the trial from gilead and at the end of may, the Gold Standard of placebocontrolled study from the nih, mel. Some analysts and im thinking of brian scorny of baird was quick to write off this drug and based on this limited and incomplete study and im wondering, in general, are people writing this off right now and in the medical community. Is there a difference between what the Analyst Community and what the medical community see well, what im observing is it seems to further entrench people and their alreadyheld opinions about the drug. Brian never pulls any punches and put out a pretty clear note today saying it does not bode well for the drug actually working, if it didnt improve the viral load of the patients, it doesnt look good, but other people say we need to wait for the actual trial data to come in to know that, and bloomberg had a very interesting story out quoting a uva doctor who is apparently involved in this study in china who disputed the conclusions that the study failed ive emailed him trying to get more information trying to understand what he means by that and its a big question mark until we see the trials. Meg, thank you. Meg tirrell and we led with gilead because check out the Market Reaction and we started the day in the green and moved higher throughout the morning and just after noon the gilead news hit and the market took a big leg lower and the s p 500 finishing the day in the red and guy adami, what day is today today, i believe, is thursday its the day of the nfl draft which i know youll be glued to at 8 00 p. M. Absolutely. I am there it is the onemonth anniversary of the bottom and since then were up 26 thats what i was trying to get at oh or that or that, okay weve made this move. There are all these hopes in the market and what did we see today . We saw some hope come out and we saw the markets come out is this what were in for in the next couple of months . I believe so. Absolutely and in terms of the level, although its stayed around here a lot longer than i thought, 2790 or effectively 2800 in the s p, as many people have now pointed out is a 50 retracement of the alltime high in the s p we made february in the recent 2193 low and it was march 23rd or thereabouts and the numbers add up in why were sort of stalling here and to answer your question, volatility is definitely here to stay a while, despite the fact that vix has been cut in half, the vix is more than three times it was when you left for maternity leave. So vix is still high i think theres still a lot of apprehension and the volatility is here for the foreseeable future, melissa. Karen, it feels like were in a black box of sorts were being whip around and the volatility around the headlines about treatments and vaccines. We have an earnings season where so Many Companies will pull their 2020 guidance, so what are we trading on . What are you trading on . Well, we are in a black box all of the traders are in this kind of black box and this setup weve got when you dont see anything, but youre right we looked at that gilead move today and it makes me think, all right. This is what were trading on now. That and then also the hope and expectation about any other treatment because were far from a vaccine timewise and then some trepidation about the economy opening again, right you had Governor Pritzker of illinois saying that hes going to stay mostly closed through the end of may and you had trump backtracking and telling georgia theyre opening too soon then we even see some of the European Countries starting to open and yet people are still afraid to go out that to me is what well be trading on uncertainty. We just have no idea and companies are telling you you have no idea and so its hard to have fundamental analysis that you can base your valuation on unless we see some other big fed policy or Something Else from the government, thats a catalyst, but other than that, well just be whipsawed around, i think. Yeah. Tim, we spoke to mike novogratz. You sell on top and buy it below . Is that that sort of the attitu attitude that youve got 2800 is the 50 day. It looks like the market is responding very much to the 50day moving average where its bucked up against the average and early in the week weve started to run into that i think traders are ultimately looking at a handful of things that includes credit spreads and oil and these are the dynamics that were driving us all along and not a terrible surprise on a day when were getting conservatism and i know well get into target and cautious guidance there so, look, this is what we should be expecting after market his such a dramatic run, were getting a combination of technicals and the bottom run of companies who have no reason to give you the green light, but again, its a pretty constructive backdrop overall and people should not be worried about a bit of a pullback here grasso, do you agree. Constructive backdrop overall . Yeah. I do believe its a constructive backdrop because we havent tested those lows again. Anything other than tefrtisting lows and cascading lower is a constructive backdrop. When you look at the retracements and the guys talking about retrace aments at 2792 and its 2650 2934 so its the 50 and the 618 retracement and that 2800 level all of the way up to that 2934 those are the levels that you want to trade the market and back to gilead if you look at the day that you had in gilead, amazing 84 was the upside and 7440 is the low today. The low was important because a week ago when that news broke, we bounced from the 7440ish level so it held that gap zone is when they called it on a technical basis and that is constructive on gilead if you overlay gilead over the markets or vice versa you really look at direction within the marketplace, but i would not be buying gilead. I would be buying the ibb and you get all those names all put together, but if you look at what this markets trading off of its trading off of therapies, testing, timelines, when does the economy get back to work so you have to look at all those three the prism of yes, a constructive backdrop. We have not tested the lows and thats a win for the bulls all right lets get to intel here on the move earnings alert here moving lower down 5. 5 . The call is under way and lets get right to josh lipton who has all of the details josh i checked in with matt bryson, and i just wanted matts quick take his bottom line was a good quarter and intel did beat on the bottom and the top and he noted the strong Segment Results relative to expectations and solid revenue guidance and operating margin guidance really weak in his words. We have to wait to hear on the call what they say about that, what does the ceo bob swan has to explain that disappointment as for the segments and dcg and the pricier for servers and that was better than expected and as more people work, learn and play from home that should drive greater cloud demand and good news for intel there was a ccg segment and that includes chips for pcs and 9. 8 billion that was also better than expected again, though, some concern clearly here from investors about the guidance from the company. Tomorrow, by the way, our own john force will talk to bob swan hell have good questions about the quarter including other topics as well. Nothing yet on capex, josh and its plan for the year . No, no, no. That call starting right now and well certainly bring you headlines as we get them josh lipton, thank you guy adami, what you make of the quarter is nearly an irrelevant question at this point, right . No, but you always ask fantastic questions although in this case it is irrelevant. What do you make of the guidance and in the Conference Call what will you be looking for . I wanted to ask about capex and i wanted to see if it would stand for expansion because that is where the growth would be and if they go back on that they might not be well positioned my questions would be what happened to margins and thats something that i thought prior to josh saying it. Thats number one. Number two, i think they said theyre pulling the stock repurchase plan. Id be interested as to know the reason being behind that obviously, lack of clarity for the rest of the year is part of it and the third thing and im not suggesting were burying the lead at all and theres talk that apple might be getting into their own sort of doing their own chip thing and how impactful potentially is that for intel. To be honest with you, im surprised its down as it is because intel wasnt that expensive going in and i didnt think it was a complete disaster and sometimes a little knowledge is a dangerous thing my inclination is this weakness say chance to get this at a very reasonable price and i thought it was reasonable 8 ago, mel. Tim well, you have a case where first of all, the exposure they have are better than most and theyre not immune to whats going on and 80 is data center and we shouldnt be surprised by a conservative guide and this is a Management Team where the last three quarters has been overly conservative and that has been an opportunity for investors and i hear what youre saying, guy, but this stock rallied and outperformed its peer group. Its up roughly 10 to the sox year to date it shouldnt surprise you, and i think its an important time. Shares of target taking a hit today and well tell you what Brian Cornell had to say about the impact of the coronavirus. And steve iseman will join us and where hes spotting the next opportunity. Fast money is back in two. Sometimes the challenges of todays world make it tough to take care of yourself, thats why you can rely on natures bounty. To give you the support you need. To stay motivated keep active and sleep well. Add a little more health to your day. With natures bounty. Swithout even on yoleaving your house. Add a little more health to your day. 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. Target getting hit after the retailer warned profits this quarter would be lower than expected its spending more on labor and writing down apparel and other items that arent selling. The company is seeing a huge surge in Online Shopping heres what target ceo Brian Cornell told cnbc today. We went into the month of april and millions of americans are sheltering at home and theyve heard from Public Health officials that its best to minimize your time in physical store locations. We saw a huge spike in digital comps. For the quarter, were seeing up over 100 , but in april alone our digital growth is over 275 and weve just seen cyber monday occur almost every day except the volume is twice the size than weve normally seen on even a cyber monday peak. Thats all well and good, karen, except on cyber monday im not buying toilet paper and other staples and grocery, right . Youre buying sweaters and all of that and that is exactly what target is not selling and that is exactly targets problem. Right i do think thats a nearterm problem. Something else they pointed to which i think is not a bad thing necessarily is theyre paying their employees more theyre providing more benefits for their employees in terms of child care, employees that are 65 or older that they can have time off and thats an important investment in their business to have their employees feel that theyre important to the company. So im not against that at all it does create, of course, higher expenses in the short term, but i think that one the other things he said that was interesting is he believes that customers will want to consolidate the number of vendors they do business with and maybe that lasts longer than just the pandemic and i think theyd be in a very good spot having been so successful at buy online, pickup in store and making it easy for the customer to get what they want online thats been obviously, those numbers are absolutely gigantic. Those margins, however, are smaller. But i do think that the other thing that target has going for it is its one of those stocks thats benefiteded from t from pandemic and its not crazy expensive. Those multiples are significantly higher so im long target im sure there are money calls that are a little more out of the money now. I like it right here i dont think this was bad or particularly surprising. They gave you a heads up about this i think around march 25th. Grasso, you think the premiums for walmart and the costco are worth it, in your view yeah. I think they are worth it, and i think they are susceptible once we start to come out of this of people thinking that youre paying a premium and selling those and trying to get into Something Else, and i think that will be short lived and the premiums as were starting to see it these are the companies that can survive and navigate through these difficult times, but getting back to target for me it goes costco, walmart and then i bottom fish with target, and i think that when youre looking at target, its so much different than a kohls stores and if theyre building up and taking market share even though the category mix is not what they want it to be right now, once we get through this time period those durscustomers not going anywhere and theyre buying stuff with better margins on it. I would be a buyer of target on this weakness. Tim, youre shaking your head quickly. Im not shaking my head so much at steve. Im thinking about the sector and im thinking how much sales are pulled forward were talking about a recession, folks. Walmart is the biggest Consumer Shopping opportunity in the country. It trades at a 30 premium to the s p during other recessions while its been mores diddive than oth defensive than the retail sector, that to me also relative to the s p means this multiple should come down 25 to 35 . Im not saying that it will and i know walmart has been rerating on their digital dynamic here, but everything target told you is that consumables are low margin and this is a case where not only do we have a pull forward, but that we have a consumer that is not in the same position coming out of this as they were going into this. You should not be overpaying for these names especially now i dont know, guy i think youll keep your closet full of toilet paper while beyond this pandemic when you get to my age mel, you know . I mean, im just saying. I hedge myself, by the way ive cut back on my cheerio intake and thats way too much information. You go back this time last year, target was a 70 name so if youre just looking for an entry point as cliche as it sounds i agree with tim i thought walmarts too expensive all along and i thought target would have a higher valuation and walmart should come down so if youre looking for that trade. At 100, target looks interesting. The man behind the big short, steve esman, and the founder of bar stool sports took a shot at day trading and he is down big the traders are here to help him out and well have a bar stool trade School Coming up when we return since 1926, nationwide has been on your side. Weve been there in person, during trying times. Today, being on your side means staying home. Nationwide office of customer advocacy. But we can still support you and the heroes who are with you. Were giving refunds on Auto Insurance premiums, assisting customers with financial hardships, and our foundation is contributing millions of dollars to charities helping with covid19 relief. Keeping our promise to be on your side. Make it tough to take care of yourself, thats why you can rely on natures bounty. To give you the support you need. To stay motivated keep active and sleep well. Add a little more health to your day. With natures bounty. Welcome back to fast money. Our next guest made a fortune betting subprime during the financial crisis and with the markets again in turmoil where is he finding the opportunity now . Steve esman. Always great to speak with you thanks for joining us. Thanks for having me. The composition and the cause of this crisis is very different from the last crisis and still, theyre both crises and the comparisons in terms of what were seeing in asset classes. Im wondering in your view are there broader themes in this crisis that youre taking advantage of i think theres an interesting opportunity in the very large banks and the way i think about it is in the great financial crisis, the banks failed the bond markets basically failed and the fed and the federal government had to come in and bail out both and this time around the banks are fine and the federal government had to come and bail out the bond markets again id like to think about it if you put it in kind of a catchy phrase way, the banks are one for two and the bond markets are 0 for 2, and why is that and i think the reason is that post great financial crisis 2008 the regulatory apparatus spent years working on the banks making sure this would never happen again, and led by former fed governor daniel tarulo, the banks were forced to delever, to derisk and to wield multiples more liquidity than they ever imagined they complained about it all the way, but they had to do it anyway and so now that we had a second great crisis, the banks are fine they have an earnings issue nearterm which theyll probably get through mostly in the Second Quarter because thats when the reserving will reach its peak and then start to come down. So i actually think long term the best cyclical play out there are the very large banks because the great financial crisis they destroyed book value and had to raise capital at the bottom and this time around they wont have to raise capital at all and they wont destroy book value getting through, though, steve might not equal a great Equity Opportunity and when you think about the banks and say its a longterm holding and how long of a term is that, because if we are looking at some sort of crisis that puts us into a recession of some degree, wont the banks feel the pain . Well, heres where not to bore you with details, accounting actually matters a lot. The accounting rule could change this year under a rule called cecil and in the past what the banks would have done is they would have taken the losses gradually. So if the recession was a very Long Duration they would have kept taking losses throughout the recession, but under the new accounting standard they have to essentially estimate what all of the losses are going to be and take the pain now. They did a lot of that in the first quarter. Theyre going to do a lot more of that in the Second Quarter, and i think after that the Loan Loss Provisions of the major banks will actually decline even if the recession continued so i think you have to get through the Second Quarter and hopefully it will be good sailing from there the last time we spoke you had a short on Deutsche Bank which you had held for a long time and i understand youre not in that rid now and do you see any opportunities short of the european banks because it seems that they didnt shore up as well as the u. S. Banks and here we are in the next crisis. I think one of the more interesting positions to put on is the very large u. S. Bank and to be short some european banks and to be short canadian banks i think the canadian banks are the more interesting short the european banks are obvious the canadian banks, i think, have not had a credit cycle in literally 30 years theyre, i think, extremely illprepared for it and theyre going to have real problems. Are you short canadian banks right now . Ive been short them for a while and im still short them any particular names . That i dont want to get interest i call it potato, potato pick any of them it doesnt really matter okay. Karen, youve got a question yes thanks for coming on, steve. I fully agree with you well see big writedowns in q2 and q3 and that sort of brings up the question thats often talked about is the dividends and normally the payout ratio say for j. P. Morgan is 30 this year they may not earn enough to have a big cushion for a dividend for that payout ratio, but do you believe theyll keep the dividend at this level anyway and earn it back in the following years . If its up to the banks solely they will definitely keep their dividends. The only way theyll keep the dividends is if the regulators do, and at this point its unlikely by the way, i want to correct you on one thing that you said i think the peak in reserving will be in the Second Quarter and in the third quarter, the loan loss positions will be lower in the first or Second Quarter. Thats why we have one more quarter of real pain to go the last time we spoke, steve, you were also short zillo as well as tesla we spent a lot of time on tesla, but i am interested in zillo because it seems like now would be a great time to be short that sort of name particularly when they have houses on their Balance Sheets and the market is virtually frozen right now im not sure about zillo anymore because of the collapse. Ive replaced it with Something Else with what its a Company Called trex. It sells decking, and the stock is only down 6 this year. The analysts have barely reduced the analysts of the company and the symbol is trex, and i think the estimates could go down by 40 to 50 from where they currently are. I understand the notion that this company hasnt gone down as much as perhaps the broader market, but is there anything else about this company do they make loans, for instance, to their customers they dont make loans they make no loan, but it is not an insignificant percentage of their customers by their product by taking out loans and it will be much harder for those customers to take out any loans for something that cost 15 to 20,000. Tim, youve got a question . Yeah. Hey, steve, thanks for joining us i know youre not short tesla, but for someone who thinks the bond markets open and 0 for 2, names like tesla and names that look like there have been Balance Sheet issues will be names that are most vulnerable here and either talk about tesla and why youre not short anymore and this is a classic environment when the ocean recedes back on the beach and weve seen courage on the beach with free money and if its not free, its a dangerous time. I mean, thats fair and the reason why im not short tesla is i think its a crazy stock. It consumed too much of my time and it moves on data that i felt was meaningless. So its a very difficult stock to live with i do agree with you. Balance sheet is key now and anybody that has any problems with Balance Sheet will have major problems. Steve, thanks for calling in. Always great to hear from you. Thank you steve eisman of Neuberger Berman guy adami, do you like any of steves trades j. P. Morgan you talked about the large banks and karen and tim would probably agree with this. Whether or not tangible book means anything right now, i dont know, but ill take j. P. Morgan at their word when they said it was 61 and at 89 now its trading at 1. 45 times tangible book. Its just too cheap, in my opinion, and i dont think it should go back to its peak of 141 stock price, but it should get damn close to two. So i think out of the names in the space, j. P. Morgan is more interesting to me and im surprised it hasnt done better than it has. Grasso, youve been in the housing sector a lot does that sound interesting to you . I would actually push back against him on that. I think that the buyer is a more affluent buyer that uses the product so i dont know if this stint in the marketplace mideconomy will take out the majority of people that actually want the product and think about this, were all sheltered in place. I go around my house every day when i finish the show or finish watching the show and i look around at what i need to do in the house. Were all getting stir crazy so i think these improvement products actually have a tailwind as we come out of this Economic Cycle i know. I was thinking of regrouting the shower the other day and im thinking, what am i doing here karen, i dont know if we know the extent of the impact even on an affluent buyer. Do you feel comfortable that these that this segment is insulated . No. I dont. I mean, by the way, the stock is down about 5 in the after market i definitely see when hes saying this is not a necessity. This is for this is an addon that someone wants to do, an improvement, i guess, so i would think in an environment like this you may be afraid of losing your job that it would hurt their revenues yeah. All right coming up, the miners making some mega moves, where traders are finding opportunity in the new gold rush and the Credit Card Company slashing spending limits to cap losses should you charge into any of those names. Stay with us much more fast right after this you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. 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Its planning to slash its Marketing Budget as far as half and thats internal documents by google viewed by members of the cnbc staff directors there were also told there could be hiring freezes for both full time and parttime employees and contract workers that could take place and these cuts send to go through this whole process of rescaling and recalibrating were the words that business over at google given some of the impacts from coronavirus thats having ripple effects across Many Industries across america so it just goes to show that a top Tech Communications Services Company like alphabet and google are not immune to whats happening right now, but we will keep a close eye on this and bringing more details and melissa, that full story worth the read about the tech issues happening with covid19. Back over to you thank you, don chu. Is this good news or bad news . Its bad news for advertising for google and others. Thats been the case post covid and facebook, and that companies whats the easiest thing to cut and it will be advertising and well see some other companies and many other companies telling you the same thing im long google and thats my biggest position the market expects a very significant top line cut in the first this quarter were currently in and probably the next couple of quarters. Gold miners shining today the group up 50 since the start of the month, ferret gold, Newmont Mining and freeportmcmoran we have to go to guy for this one. Youve liked them for a long time where were you in 1970, mel nowhere i was probably about 6 years old and about to turn 7, neil young released after the gold rush and i encourage you to get it on vinyl and were not even close to after the gold rush and we havent been talking about this in a vacuum and we started to talk about this in september when the overnight repo thing blew up in the fed and we talked about it then and weve continued to talk about it since and Newmont Mining has been a monster. Golds been a monster and will there be a pullback . Maybe, but in my opinion, despite the move these mining stocks to the upside, i think newmont and the miners continue to go up, mel. Quick, would you rather, tim. Gold the metal, gold miners the equities guys got a heart of gold, too. I tell you i would go with the metal. Having done what theyve done and i think gold moves higher. I think gold the metal actually looks overbought and despite whats going on out there, i do think that you could see a pullback in gold, and the economic backdrop nowhere. Any move on the economy and gold at 1800 runs into resistance pulls back and no need to buy the miners and they will underperform by a multiple of 3 is my view options traders are taking a big swipe at this credit card name heading into earnings and well break down the action and later el prez heads to day school and things havent been going his way, but he is in luck and our experts are here to help him fix his portfolio when fast money returns flexshares may look simple on the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. For a prospectus containing this information. 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. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. Welcome back to fast money. Earnings alert on capital one. The company dropping after hours in a 1. 3 million quarterly loss capital one not the only credit card making headlines. Discover financial slashed credit lines as financial pressures mount due to the coronavirus pandemic and the move comes after Synchrony Financial and these are typically, the people would hold these credit cards are typically the ones that carry balances its a specific group in the population right its a specific group. Its obviously a very big spread when they do earn it, but the question when you have a recession or whatever were going to be in is what happens to that credit quality so they took a big charge to reserve for that, but i think there will be more charges to come theyre talking about 9 of their auto loans asking for barrons which is a pretty big number so this is a borrower that has a different fico score than j. P. Morgan and more pain to come were looking at the state of the consumer and Consumer Credit when American Express reports earnings tomorrow. The stock has been crushed this year and the results hit the wire and mike khouw has the options action mike hi, melissa so in axp what we saw today it might tick up to the market by the end of the day and after they report tomorrow morning and thats obviously above what weve seen over the past eight quarters and the 84, strike calls and the bare calls and the buyer of those is above 2 and as you pointed out, the stock has been very hard hit and if we take a look back at the 2008 period for axp, we can see that the revenues decline sharply and we can find out something similar is happening than that of the coronavirus impact. Thanks for that more options action friday is the full show at 5 30 eastern time we have breaking news coming out of washington. Lets get to Kayla Tausche with the story. Melissa, this 500 billion interim stimulus package has enough votes to pass the house of representatives remember, this bill includes 310 billion to expand the Small Business loan program. 60 billion of that will go to smaller Banking Institutions you also have a 60 billion of loans and grants from the sba Disaster Relief program and 100 billion going to hospitals and toward testing of course, this is not expected to be the last tranche of money thats needed out of washington and its needed as a stopgap or bandaid measure to keep Small Businesses going and to help hospitals cover treatment for patients who are being treated for covid who do not have insurance and it remains to be seen what would be included in that next major stimulus package for now, we await the final results of this vote, melissa and to the president s signing of this momentarily. Kayla, thank you. Kayla tausche in washington. Up next, pull up a bar stool the founder of barstool sports is with us and he took a crack at day trading and lets just say things havent gone his way, but our traders are here to help we have a special barstool trade school on tap. Stay with us make it tough to take care of yourself, thats why you can rely on natures bounty. To give you the support you need. To stay motivated keep active and sleep well. Add a little more health to your day. With natures bounty. Swithout even on yoleaving your house. Add a little more health to your day. 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, the wild week on wall street are bringing new traders Charles Schwab reporting a Record Number of new brokerage accounts opening if you dont know what youre doing you can get burned big time many of you know our next guest has his own cautionary tale to tell David Portnoy is founder of barstool sports. He took a crack at day trading and he put 3 million and hes currently down about 600,000. Dave, welcome. How are you if. I feel like we should play the sad trombone have you ever traded a stock before this . I was a twitter guy so my first foray, i think i bought twitter around 50 and then watched it climb back to 40. Whats your stride in your portfolio and how do you choose the stocks to go in there. So im flat right now today i was trading shop pify a amazon all day i look for stocks that i put a lot of money into it and i look for stocks that have high volatility and a lot of volume so i dont want to be shaping the market and i look at big stocks that a lot of people are trading a lot of. You mentioned two stocks that youre in. Are you trading millions of dollars worth at a time . Oh, yeah. So im learning a lot as i go. I will say i was down 1. 2 million so im hot rid nogh now, but with this margin thing which i have no idea about, ill have 12 million in play. So youre leveraging your million into much more oh e yeah yes, yes, yes a guy who likes to take a challenge. Davey day trader is the name you have given yourself and we do want to help you this is called fast money. We do want to help you and we have questions that you can pose to our trader. Our class is in session for trade school and we have to start with boeing. Apparently you got burned in this one i hate boeing, if i saw boeing id purchase it in the face boeing has accounted for all of my losses and i learned how to short and i didnt know you could do that. It went up to 170, 180 and forced me out when i sold it fell right back down to 140. I cant figure out day to day if anything has to do with why boeing has such tumultuous rises and falls. I know its in the news. I read it, but i cant tie it to why it has these wild swings i think is a very good question guy, im sure a lot of other traders out there are, you know, in this conundrum as well when it comes to boeing and right now were in the land of federal bailout so its a different dynamic. 100 different dynamic and i was watching the 2014 draft last night and everyone loved johnny mans man zell, and they thought he was getting a bargain at 22 and the browns and then we know what happened. I think thats exactly whats happening in boeing now. Everybody thinks theyre getting a bargain at 125 until they report earnings at the end of the month and i think boeing will turn into the Johnny Manziel at the end of april. I think youre right to short this thing and i think it could again be a doubledigit stock at the end of the month, dave. Karen, just quickly your thoughts on boeing and whether or not you see a value there youre a value investor. I am, but its hard to see anything there, right . You have so many macro issues and then you have so many microissues, right, with the 737 max. By the way, mr. Portnoy, i did catch a few minutes of unboxing. So thanks for that youre welcome. One last thing, you dont need to make it back in the same place that you lost it so if boeing isnt working for you you dont need to stick with it im done. People are sending me a lot of boeing merch now just to rub it in people like to see me lose and thats the other thing ive learned. I hate financial twitter and ive never seen so many know it alls nobody has ever lost on twitter. Welcome to our world, davey day trader you can burn the boeing stuff. Microsoft and shopify, this is one of the things, people always say im late and i know microsoft is way up and shopify was way up, but you know, i still like it, and i still have done pretty well for me and today was a good day and when things hit an alltime high like shopify and amazon should you run away, basically from a stock that is clearly at one of its high points like those two right now . Thats a good question. There are a lot of names like that that are more defensive stocks, tim that are at highs so what do you do dave, youre very brave playing hurt right here and with microsoft, this is like an original sixth franchise thats come back and won the stanley cup. Think about the microsoft and its now back at the top of the heap and its kind of another metaphor its kind of like the athlete and the bryce harper who has signed a huge contract and the expectations are so high and he has a decent year, but again, its really where its priced from i think in microsofts case you have a company that largely in the current environment is playing defense. You have a lot of cloud exposure and microsoft 360. I think this is just a function of that big contract it signed its expensive, but theres no question microsoft is a name, is the guy you want to have on your team and i would stay there. Running out of time, but i do want to get to the watch list, dave, because youre wondering about dominos youd like to buy this one yeah. Im a pizza guy so i consider myself the number one pizza expert in, like, the world i saw it was down today. I know the earnings were out and they beat earnings to me, pizza, thats recessionproof. Thats corona proof. Thats everything proof. Dominos seems like a nobrainer to me. I know it was high, but its down for me. I dont know why anyone wouldnt want to own dominos bad pizza, by the way, great Delivery Company steve grasso, what do you tell dave . Dave, i think youre 100 spoton. The problem in february it jumped 24 so you have the right idea and then it sold off with the overall market and rallied again. I think everything is in the news with dominos so theres a lot of people following that same thing, theyre a great company, great pizza, great delivery. You want to day trade, trade snap its a name that im long and this one is all over the map and its a much cheaper stock than a boeing and a dominos and it trades like water. Get in there, with your type of money you could really have fun with snap. Im not guaranteeing you make any money and it doesnt seem like you need to make money on a daytoday basis. Ill number there and if it does well, you wont hear from me it was your idea. Fun talking to you dave founder of barstool sports by the way, dominos ceo is sitting down with jim cramer at the top of the hour and you may not want to miss that. Coming up next, youve got the final trade. Time for the final trade lets go around the horn tim seymour. Yeah. Talk about playing defense verizon certainly in the wireless space is the defensive of the two i own at t, as well, but again, a lot of pressure. A lot of volume in the wireless names and i think this say name that youll want to hold on to steve grasso . Target. Like i said before, i think youre good to buy this one on weakness you do not have to place your flag in the sand on this one so 100, par level 100. You can shoot against that level and buy it in lots of 25 of whatever you want to own you dont have to rush in. Dont be a hero. Target on weakness karen finerman. Yes j. P. Morgan. I agree with steve, and i would like to be able to say, while well see more pain from all of the big banks and they obviously are the premier name and the stocks reflect a fair amount of pain already so j. P. Morgan. Guy adami mel, quick. The giants trade out of ford it get out of tackle and you stay at four and pick the stud. Stay. Netflix, mel 415. Thanks 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 but to educate and teach you call me 1800743cnbc tweet me jimcramer. We have to stop tonight thinking about the stock market as