Is life with more. The white house put huawei on the blacklist a year ago, but the administration is still worried that it is relying too heavily on u. S. Technology and on u. S. Software so today the white house is tightening the restrictions around a supply chain. Companies will now be banned from providing huawei with chips made using American Parts or American Design unless they receive special permission from the commerce department. Of course, this also applies not just to huawei, but also to its affiliate including its inhouse chipmaker silicon and it comes at a time when the white house is trying to blame china for spreading the coronavirus. Just today this afternoon President Trump told reporters that he is not thrilled with the possibility that china wont fulfill its obligations under the phase one trade deal and on this move against huawei, the president does have the backing of the gop china hawks on twitter senator rubio said the u. S. Has to take strong action to cut off the network of surveillance and repression arne the world. Marco rubio told us that china has been trying to sidestep the existing u. S. Export controls. He said over the past several months chinas maligned behavior has been on display for the world to see and that includes techenabled surveillance and censorship we did reach out to huawei for comment and it declined at this time while it reviews the details of these regulations ylan mui in washington for us we saw the reaction across the semiconductor space. Most chipmakers out there global plea use chip equipment in the united states, kla tencor and lam research, guy adami, you were quick to say when we first got the headlines that tensions with china would flare up. Theyre flaring. Theyre flaring, yet the nasdaq are you a fan of hank stram is you know i dont know who hank stram is, go on when he was head coach of the chiefs and he said lets continue to matriculate the ball down the field and the nasdaq continues to matriculate itself to alltime highs regardless of the news flow. Its remarkable. We have flagged that and im shocked that the market isnt taking this more seriously you mentioned some of these names and amat was a name we talked about last night and we collectively said to take profits after earnings and it proved to be correct the fact that the nasdaq doesnt seem to care about this news is remarkable, mel. Why doesnt the market seem to care about this news, jeff mills . I think it actually does a little bit if you look back a couple of weeks ago so trump ramped up that china rhetoric on april 30th and guess what . April 29th was the peak of the most recent rally. I think under the surface the market is actually paying attention a little bit and if you look at polling, its clear that voters look like china handled this in a way that wasnt appropriate and there is a will to pursue this, and the issues with the virus. It doesnt take a genius to figure out that thats probably not going to be good for the market overall specifically as it relates with whats going on with semis Taiwan Semiconductor in the crosshairs and the 10 of the revenues is sourced from huawei directly if you look at the companies in the u. S. And some of the suppliers. I would look at kla and i dont know the company intimately, but it is worth taking a look at it was down 5 today, it was up 8 yesterday and still trading 17 times forward earnings and if you look at the chart, this is why its interesting, there seems to be an upward slope in the 2 hunday moving average the xlk sources 15 of its revenue from China Companies like apple, 10 and its an area of risk worth paying attention to. Tim . Well, this week we got to levels of relative overbought, if you will on both the nasdaq and semiconductors and none of this should be a surprise and it comes at a time when you could have cooled it off and theres a real challenge to be caught between a politically popular view on china and one that probably also globally has support and the reality that if we go toe to toe with further engaging on this dynamic huawei which we have seen before and it hasnt gone well in terms of sentiment and then stepping up trade war rhetoric again, its an administration that also recognizes how important the market is to its staying in power. So you have a case here where i do think youve got a headlinegrabbing moment i think china will continue to be the dominant theme, and i actually give a lot of respect for throwing caution to the wind in terms of the market now to the market, this may be that opportunity where the underperformance of value relative to growth has an opportunity and you have seen some of that in the last couple of days. Obviously retail sales is not a great number and so retail outperformed today and youve seen some of the miners and some of the more industrialbased stocks outperforming a bit this may be this ebb and flow which also weve seen over the last couple of years, but agree with the other guys. I dont think the market should have loved this news and over the last couple of days you have had headwinds and the market does a great job it almost feels and they point out the reaction to the trade tensions, but b. K. , it almost feels like the market is discounting for china to enact retaliatory measures and tit for tat and we resume that sort of you do this to us and well do this back to you sort of cadence, that market period wasnt a fun one for us. No, it wasnt, and i do think the market is probably under evaluating this and this is political bluster at this point if time because what we saw in the last trade skirmish is that we ultimately did come to a deal, but i think what the markets ignoring here is the fact that this is part of a broader trend towards onshoring. So bringing the supply chain back so if youre the ceo of a company, its no longer politically or logistically feasible to bring the supply chain and that means goods will cost a lot more as they come in. Companies like walmart who get a lot of their stuff from china potentially and this is a medium to longer term view, but potentially you could start to see price increases there as a result of this broad onshoring trend. So is that the i word that were starting to think of, brian kelly . Inflation. Inflation, yeah yeah inflation. So i actually think were in a part of biflation where you have rising prices on something where the onshoring causes that, you know, increase in prices, but at the same time things that are oversupplied, airlines, cars, hotel room, all those prices should continue to fall. So you kind of have this dichotomy out there. Its very weird. It looks a little bit like the 1970s, but not exactly and thats on top of a global pandemic, guy. Independence, if you want it, causes inflation im absolutely with b. K. On top of that you have food inflation that nobody seems to want to talk about because they think its magically going go away which it wont. The fed wont acknowledge it and we have inflation in all of the wrong places and theres a problem brewing. Im with b. K again, i think the market is underestimated how deleterious this rhetoric can be to the broader markets and its shocking to me on a day when we have every reason to go down in a meaningful way that the market ratcheted back the way it did. 24 hours does not a day make, mel, as you know gold star for deleterious, guy. We have google and lets get to deidre bosa with the details hey, melissa. An antitrust lawsuit against google could be coming as soon as this summer according to dow jones citing sources the report says that the department of justice and state attorneys general are well into planning for litigation. Melissa, of course, we know that investigations were under way and theyre focusing on googles Online Advertising business, but investors may have thought that the threat was not imminent given googles Critical Role in work from home and its creating a Contract Tracing app with apple thats going to be deployed by Health Authorities so shares fell quite sharply in afterhours trade. Lawsuits could threaten the largest business and its Digital Advertising and the eu has taken the hardest stance finding them in anticompetitive practices. Here the u. S. , critics are calling for more than fines and sanctions and even a breakup of the company. One thing, melissa, that is not clear in the report whether the states attorneys general will file a complaint and the doj declined to comment and we are awaiting a statement from google any minute now deidre, thank you deidre bosa keeping us posted on litigation against alphabet. The line that jumped out at me, tim, in this dow jones story is that theyre well into planning for litigation which means theyre not going to be happy with just some fine like in the eu, that this could be a protracted battle, legal battle with alphabet and that is costly and that is distracting and all those things and its been an overhang for the stock and the question is is this now remember june 20 sorry, june 3, 2019, when doj announced facebook, apple and google were potentially in the crosshairs and the stocks traded down 6 , 7 and ultimately went on to set new highs and the question for google is what has been the regulatory headwind largely, we had worked through most of that and if you looked at the last numbers that we got from them, clearly, whats going on with the growth and cloud, but the 2 billion in maus and youtube and the inflexion point of the business is one of the reasons why the stocks been rerating. I do think this is a headwind that will want go away overnight and we just heard about the schedule of doj during the summer and then the state starting in the fall i will say googles been through this before and theyve been through this around the world and they havent been through it here, but my sense here is unless theyre made to be a scapegoat there are a lot of other people that will be called into this and im not sure this is what the doj is ready for, but tough talk for a stock that largely has been defensive and has had a very good run. Weve got breaking news here this time on tesla and phil lebeau has it for us melissa, i am losing my voice, but i wanted to bring you some breaking news we have learned that tesla is zeroing in on two possible locations for its next gigafactory in the Central United states. One location, austin, texas, the other location, tulsa, oklahoma. We know tesla executives were evaluating two locations, two specific locations in the tulsa area earlier this week weve reached out to tesla, a spokesperson declined to comment on the search for a new gigafactory location this would be the fifth gigafactory for tesla earlier today there was a report that elon musk had settled on austin, texas, but according to our sources and they are people familiar with the search they are looking at two possibility, austin and tulsa, oklahoma, and with my scratchy voice i send it back to you, melissa. Dont say another word, phil, please thank you very much. Phil lebeau in chicago guy adami, i dont know if this is a game of highstakes poker that elon musk is playing with the state of california, because to move from fremont thats a good 12 to 18 months it doesnt cost zero to move an entire auto manufacturing plant from one state to another. Having never done that myself its hard for me to speak intelligently about the costs associated with it, but what ill say is its interesting to me since the start of this year all of the moves that elon musk has been making feels as if he has some sort of air cover im not quite sure where its coming from, but he seems to be doing things that nine months or so ago he probably wouldnt have done and its manifesting itself in the price and quite frankly, the only thing more painful than listening to phil lebeau playing hurt, by the way, and i respect that is trying to play tesla from the short side, mel ill take a pass on the entire thing. All right coming up every day every day im down, like 50 grand on boeing like clockwork i [ bleep ] hate boeing. I think we told him to get out of boeing. Davey day trader is back on fast and he has a bone to pick with boeing and a little bit more than that, and well talk about that and his viral rant on reopening thats getting a lot of attention stay with us music 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, saving you up to 400 a year. 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. What the [ bleep ] is going on, flatten the curve, flatten the curve unless someone will die . Who said were getting a cure . Thats not a guarantee, so were just done as humans . People are mentally preparing and doing what you asked and done exactly what you said and now youre changing the rules. That rant to reopen going viral and grabbing the attention of millions and some applauding it and some are calling it appalling. Lets bring in dan portnoy, but we do want to talk about this rant first, it was a very impassioned rant and you talked about it being a Business Owner and a founder yourself, correct . This is not political and it was not meant to be political and it wasnt meant to be blue or red, but hey this is me talking, right. Yeah totally. The whole corona thing i dont think it ever should be political. Its a shame that it is because everyone should be agained corona and it should be a unified stance against it and bar stool, i started myself and it took me over a decade to turn the corner and i lived there 24 hours in a day and i was working seven days a week, you know and id wake up at 7 00 a. M. And id go to bed at 1 00 a. M. And id work the entire time and if corona hit around the tenyear mark when i was doing bar stool that would have been the end of me, and you know, thats a terrible way for someone who spent a decent portion of their adult life to build to a certain point to have it end and have no say in it and no control in it so that was really it. Its about choice at some level, coronas obviously a horrible thing. The only thing we know for certain is if you dont reopen Small Businesses theyre going to go out of business. Their livelihoods going to be gone i dont think anyone knows what will happen with corona. I mean, the way they talk, who knows . We do know to some degree what happens when states do reopen because the number of states have reopened and we have seen the numbers play out so far. Minnesota, for instance, reopened april 27th and theyve seen a 273 increase in cases since then iowa reopened may 1st, cases are up 91 South Carolina opened april 20th and cases are up 89 and the list goes on, dave, so while you may have a choice, this is playing out right now across the country. So are you saying that we should reopen even though so far the numbers are very difficult these are percentages, but these are human lives behind these numbers. I would say that anybody can grab the percentages or numbers any way. Notice georgia wasnt in that state. Sweden is a country that hasnt gone on lockdown at all, and again, it is not political, but i very much could guarantee i could find you stats that contradict what you will say and whether that be mortal iterate and that be Healthy People dont really suffer the same way that someone who has a preexisting condition. So i think that speaks to depending on your angle and you can pull any stat, any number, anything you want to create the case you want. Ive heard people say the cdc, wear a mask, dont wear a mask i went on a rant the week before and said you should wear a mask and that became political. Everyone wants to get rid of it, but there is no distinctive number the death rates right now theyre not astronomical, but is that because we did the lockdown so i dont think theres answers. Thats the problem you dont know what if the l. A. Mayor, well never get back to normal without a cure what if there is no cure who is guaranteeing a cure we are never back to normal ever the only thing that is certain is if you dont allow people the chance and by the way, when i say, the chance, clearly if youre elderly or you have a preexisting condition you are more susceptible and at some level theyll have to protect themselves, so maybe they have to be more careful, but somebody who is 25, 35 years old in perfectly healthy, they should have the choice, i think, to do what they think is in their best interest and your message has resonated with many out there. Elon musk for one and he tweeted, well said and he said you should run for office so just a quick question before we pivot to stocks, dave are you going to run no. Little known fact, i ran for the mayor of boston back in the day, and they you had to get signatures and i paid a whole company to do it, but they could discount any signature if they couldnt read it and they conveniently said they couldnt read about 20,000 of my signatures and i fell a thousand short and no interest in Political Office you got the tshirt just in case portnoymusk, 2024 you never know. Lets talk about stocks you started and the last time you were here, you put in a cautionary tale and you put in 3 million, quickly, lost 600,000 and taking losses in can boeing, lululemon, shake shack and the latest read is you are down 1. 1 million. I dont like that graphic that graphics gross, but its true. That is the truth that is your portfolio, dafr i wish it was the other way. And yet you keep going into boeing you came on the show last time and you asked about boeing and our traders couldnt be more clear about that stock and you just cant quit it im a boeing im addicted to boeing. Youre right i cant quit it. I actually made i comeback i was down 600 i went down a million and i basically got even, but this week has been a disaster because i went on a cruise and airlines tirade, and when i say tirade i was backing them Warren Buffett came out and said get out of the airlines and i said what does the old man know and im going into the airlines and it did not work out in my favor. They came back today, the cruises, but i wasnt part of them Spirit Airlines is also one i dont like that killed me and the thing that im learning, so i went heavy on Spirit Airline and the Firm Raymond James about five seconds after i went heavy on spirit came out and told everyone to get out and this is something that maybe the traders will know. Im convinced whats happening with a lot of these stocks raymond james, i dont know how much they manage, but im sure they sold all their spirit before they came on and said, hey, get out of spirit guess what they look like geniuses. Its a selffulfilling prophecy and im sitting here with tg global and im getting murdered by it. So i do think the airlines and the cruises are going to come back i really do. When they do, who knows . But i dont think spirit is going out of business. I dont think boeing is going out of business and i dont think norwegian is going out of business and theyre all trading so low that you will get four or five extra money eeventually an even if one or two go out of business and you diversify you will still probably make money. Hey, dave, its guy thanks for being here. To answer your first question, theres supposed to be some sort of firewall between research and trading that sort of keeps those types of things from happening, number one number two, youre in a very emotional person which makes you fantastic, but being emotional and trading is very difficult. Do you think you are able to take the emotion outside of your trading and maybe it will make you a better trader . So the only thing i can do thats a great question. I have to come up with a strategy that i just get up and walk away because im an emotional guy. Even that rant we showed earlier and a lot of people were saying he was yelling and screaming that was monotone for me that was not over the top so im an emotional guy, and im livestreaming it so its sort of a show that im putting on i probably wouldnt be doing the same thing if it wasnt for the public consumption, but it is, but i keep making a move i i have to tell myself when i think ive hit rock bottom get up and walk away because i always make the move at the exact wrong time because the second i sell it it goes back up so that is something emotional and i think if i just got up and all right it cant get worse than this, go for a walk and come back i think id be in better shape. I think you just pulled the curtain, dave. You just pull the curtain because i thought that guy in the rant was you all of the time holed up in your new york city apartment, but it was a little bit of a disappointment to be honest. My head would explode if i walked around like that. I was mad when i did that because i was in the stock market and fauci went before senate and the stock went and then i started researching and im, like, and that was a change in tone for me, but sure. Im not that riled up im a nice enough person if you see me walking down the street. You seem aokay dave, why dont you give us a final trade. So im right now on alibaba i dont know what that means for china, but i know their earnings are coming next week, and i think theyre kind of undervalued and theyve been good since ive been involved and hopefully trump doesnt shut them down and whatever thats all about and knowing my luck he will tim i tell you what, im going to draft the best athlete available with el president e ali ban a the chinese internet stocks sorry for piling on dave, but im on your team, man. Nice. B. K. You sell the cyclical strength and slx and thats one way to do it the general, jeff mills so dave thanks for being with us today penn is up big and on pullbacks you should take a look at it and its been hit really hard and i do like the 36 interest in bar stools and it gaves us an interest in Online Gaming and the Sports Betting and once we get past the issues with the virus, so pnnn and louisiana and mississippi, casinos open next week so it could be a good week. Thanks for joining us, dave options action is up next. Have a good weekend. Tempurpedics mission is to give you truly transformative sleep. So, no more tossing and turning. Because only tempurpedic adapts and responds to your body. So you get deep, uninterrupted sleep. During the tempurpedic summer of sleep, all tempurpedic mattresses are on sale during the tempurpedic summer of sleep, our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Happy expiration friday options action fan, we have a big show lined up and heres whats on deck first up approaching target. Yes if the idea of getting into a retailer right now seems alien to you, tony zhang has a mission brief. Then hes into it. Or just get into it the company. Carter worth shows you why you might want to dive in. Finally i put it all on expedia. We wouldnt trust that guy, but we do trust this guy mike khouw really ha