Now. Thats a gain of better than 800 points, 2950 a key level for the s p, were slightly above that with a gain of 3 . And the nasdaq, where so much strength has been of late, 2. 3 higher, 9230, russell 2,000 having a big day as well kevin oleary, 2950, key level on the s p were all the way back to where we were in early march and you, my friend, you say youre growing more bullish. Yes, i am i listened to what the fed says and they have an unlimited pocketbook they made it clear they are going to overcompensate, scott, and youre starting to see it happen right now. The beneficiary of this will be issues of credit, we issued a trillion dollars worth of investment rate credit so far this year. Spreads have tightened you know i watch the etf market like a hawk. The fed has only done a few hundred Million Dollars of purchasing it is job owning that is getting it going this is an extraordinary time. If youre an investor and missed days like today, youre mitts g i missing 30 , 40 , 50 of the returns. We get crazy days over the weekend. I watched that interview, i said, my goodness, this guy is going to come across as a genius by the time this is over he talks such a quiet tone story, does very little with the dollars, actually. This buying of junk debt, supporting equities, hes done basically nothing. Hes job owned his way to this place. Hes completely opened up the credit markets, enhancing Balance Sheets and ov overcompensating eke quie ining is it really that easy . Well, to kevins when you listen to to kevins point, scott, if you listen to johnny fine in the last 20 minutes on the network talk about what is going on in the debt markets, what chairman powell has enabled his companies, even like boeing to Access Capital they otherwise would not be able to access in this stressed environment. So you got companies that are able to rebuild their Balance Sheets and i think thats lending a very supportive tone but as it relates to the equity market, the equity market continues over the period of six weeks to provide investors and traders an opportunity where you are experiencing some form of a selloff, like we had last week, and you have the opportunity to take advantage of quality on sale now, coming into today, there are many people that are going to suggest to you given the strength of this rally that the right move to be making in the markets is to sell your positions. I do not believe thats the right move at all. I agree with what kevins assessment is. Momentum right here is very positive, were about to take out the april 29th high. We have got participation beyond Megacap Technology and i would urge investors and traders to stay with us as the market pushes towards 3,000 i think thats the target. I go back to what nelson peltz told us the other day. To your points, joe, about quality being on sale, he told us he put new money to work in the market now, we dont know what the positions are, but, you know, you will go ahead and make an assumption there of some sort of size he doesnt normally buy little tiny positions in things so he told us he was optimistic on this country, he was betting on the positive coming out of this, he put money to work by the way, hes had a pretty good history of making good calls in the markets as well december 18 he did another one on this network. Shannon, you have optimism from people like nelson peltz coming into a week like this, we get the moderna news, it is early, but powell underscoring the point there is no limit to what we can do. That is i will do whatever it takes to keep this thing from completely falling apart right and the betting on america, you know, is really a betting a bet on free or cheap money so the feds essentially providing cheap money. The u. S. Government through its fiscal stimulus is providing essentially free money to businesses, albeit it has been difficult for all businesses to access that. And i think the moderna news is taking what has been fear and loathing of this rally out of the market today if you look at some of the comments from powell yesterday, he acknowledged that while he expects a second half recovery, he does believe that, you know, if we had go back to the mandates that we have been living under for the month of april, that that would create economic dislocation and he was concerned about that and so if we get, you know, strength of the market on a potential vaccine, if we start to see a shift here towards the belief that we really will continue to back stop through monetary and fiscal policy the u. S. Economy, you know, i think one of the other things i want to know here is that the fear from an institutional perspective, if it goes the other way if youre an institutional investor, and it goes the other way an we start to see a decline in the market or reacceleration of cases, youre concerned about the fact that, hey, listen, we lost 36 million jobs how could you be investing into that today, i dont think thats a sentiment. I think this momentum trade is going to continue this week. So thats an interesting thought, pete. The momentum trade is going to continue this week im wondering whether the action youre seeing in parts of the market today suggest that, okay, now finally you can buy some value names, if we try and get tactical for our viewers and think that, well, the momentum names are the ones who got us here, now if there is more positive news coming out that maybe it is finally a time for value. There is a conversation on the street today, wells fargo and our view is this created a major opportunity in value names, i was going to ask you if you think it is time to take some profits in some of the big momentum faang names, up tremendously since the march 23rd low yeah. I think it is a time to take some of the profits, scott, and some of the not necessarily the faang names, but actually the names that have been the pandemic virus names and i think the explosive moves we have seen out of many of those various names, i think it might be time to loosen up on some of those. I did a lot of different trading and i think well talk about that later in terms of a lot of the different options where i was in names that are the crazy names, they have pes that dont even exist because theyre so off the charts and i think it was time to sort of pull that plug but i would have to add Something Else im listening to everybody and theyre talking about powell i do not agree at all. I think the powell yesterday on 6 0 minutes and all the rest that we heard, we know that we already knew the fed was at was going to be our back stop they have been there, they told us theyre going to be there and were up about 200 points. I sit here and look and i see that moderna news and that was where we got the explosive move out of this. Up 200 points. When we got that news, up 600 points before you could blink. That was really i think that was based, scott, on the idea that, hey, look, if we got a vaccine, as early as it is, and, by the way, it is early, if anybody understands how this whole process works, you have phase one, phase two, phase three and then got to get approval, theyll accelerate that but it is very, very early, but the very early sentiment is this could be it. And because of that, thats whats exploding the markets now and thats why people are buying names they wouldnt have bought based upon the pandemic until they heard this news today so i think youve got to be very cautious as you move forward because at any moment somebody could come across and say, well, you know, but in phase two this happened or in phase three this happened you just have to understand, it is good to be excited, but at the same time, im not trying to throw any water on the fire right now at all im just saying i think that was the impetus of this monster move to the upside, and i think if thats the move, youve got to keep a very close eye on moderna going forward. No doubt about that well talk to steve wise in a bit who will tell us what hes doing with his moderna trade it is important to hear from him on a day like this im looking at my sheet here of cramers covid index, up tremendously this year names like pfizer and gilead, alphabet, amazon, apple, roku, spotify, costco. We talked about these names last week with jim. Is it time to take some money out of those kinds of names, kevin oleary, and put it to work in some of the more cyclically benefited stocks, industrials and, look, i mean, some travel names today are up tremendously hospital names are doing quite well these laggards, are they going to get their day now you know, i dont think it is time to take money out of those names. This idea that, you know, if we wave a magic wand and moderna news gives us the virus control we wanted and all of a sudden we can inoculate the entire population doesnt change the fact that a whole generation of people that were not using ecommerce 90 days ago are now very proficient at it, and so Companies Like the docusigns and the shopifies and everything that is accommodating remote work at home and all of these including microsoft and all the licenses that are going on digitizing america as i call america 2. 0, that trend, that genie is out of the bottle we came out of this thing online and 90 days later over 20 that was supposed to take three, four years it happened in a matter of months these companies are the backbone of that digitization i would not sell their sell into this, i dont, you know, whether we get this virus under control in the next 12 months, 18 months, 24 months, the economy is fundamentally changed. And i still i still believe that as a result of this move toward digitization, the major beneficiaries remain the same. I know the pes are crazy but you talk to anybody in these companies, theyre working 24 hours a day. Look at these names, look at these travel names as were cycling through some of the stocks that are leading today. These are unbelievable gains in some of these hospitality stocks were looking back on your screen right now what are we telling people to do with these today to buy into this strength, to sell some of these names. 16, 17, 18 . This is on moderna clearly. If you think were going to have an accelerated time frame and legitima legitimate prospect for a vaccine in that accelerated time frame, do you want to buy the stocks today and take the money you otherwise would have put in the ones you have been playing, these big tech ones and play some of these now . I wont do that and i will say one thing about moderna, besides just modernas big announcement on eight patients or whatever it was, what it tells everybody and the reason i believe pete is right about the move is that the science has accelerated so much in terms of how these new, you know, treatments are developed in the last decade, we probably got a five, ten fold acceleration it will not just be one company that comes across this potential solution what this tells me is that since sars, 11 years go, science can win this in a compressed time frame. My concern about, you know, being in the lockdown perpetually, it was only a couple of weeks ago people were talking about travel and leisure going to zero, were not talking about that today anymore sentiment changes very quickly once new science proves something true very right. Youre very right. Im looking at a tweet from dr. Gottlieb, right, who says as part of a tweet, there is some suggestion vaccines could protect us from bad symptoms the good news is there is now accumulating evidence he says across multiple platforms, products, that we should get a vaccine. Thats a level of optimism when you have somebody like that saying there is mounting evidence that were going to get a vaccine, there is hope and promise, but if you have belief, real belief that youre going to have a product and on an accelerated time frame, thats why youre seeing a stock market do what it has been doing on optimism and hope and now maybe it is taking another step forward on that. Shannon, some of these names i read off to you. The ones that have ripped that people may have been listening to the program and buying on the way up, the rokus, the beyond meats, the teledocs, some of these other healthcare names, the walmarts what do you do with those today . I think there is two different baskets. One, i think healthcare was an opportunity coming into the virus crisis and i think that it was an understated opportunity, i think that people were overly focused on the potential threat of a Progressive Democratic candidate. I think that we just happened to see that rally in healthcare pulled forward and i think thats going to continue i think some of the other names you need to be careful about extrapolating, you know, additional use over the course of the next six to 12 months theyre talking about a name like teledoc or talking about some of the travel names you just discussed, scott, you need to think about what the opportunity cost is and holding those over the next 6 to 12 months if you have the opportunity to buy some of these lower valuation stocks that are available. So if you do believe that there is going to be a cyclical rebound, you dont have to make a call on how many of us are going to be working from home, 12, 18, 24 months from now you can actually look at it in terms of what is your belief about the economy, what do you think this vaccine gives us, do you think it takes the threat of somebody not going on a cruise off the table or is there going to be a plateau there and still other opportunities . So i think it is weighing what the market is giving you, with your longterm trends over the next 12 to 18 months and i think healthcare is squarely in the middle of a secretarier th sector that it continue to thrive in both of those scenarios. Lets bring in another guest today who says there is about to be a big reversal. Jonathan ckrinsky. Good to have you back. What leads you to believe there is going to be this big reversal happening or some momentum pulling back and then money going into the value trade yes, thank you. So i think the timing of the moderna news is interesting. We think the fire was already set and that is the match that ignited things we go back to wednesday of last week, we put out a note looking at the banks relative to the nasdaq kind of a proxy for the whole growth value, work from home, you know, real economy type of trade. And the banks and the nasdaq as of last wednesday was that the widest diversion we have seen since 2009 only seen it twice in last three decades, once was at the march 2000 peak of the nasdaq and once at the march 2009 lows the setup was there for a massive reversal in the momentum we have seen and, you know, that stems from a couple of Different Things it is sentiment, right it is positioning. And it is it is whats already taken place, we try to look for where the puck is going, not where it has been and we think the next significant move is an online in this momentum and what were seeing today i think is just the start of that. But if you, if youre expecting a bounce in the cruise lines and airlines, casinos, and hotels, you need the moderna news and other news like it to continue to progress that trade is not going to work just on technicals alone or whatever the setup was you dont get the kind of move, jonathan, authat youre seeing those stocks without moderna. No, thats certainly fair but the setup was there and if you think about, you know, whats taken place in some of these stocks, the capitulation, buffett out of the airlines, selling financials, there has been just a complete just despair in some of the names i think if you look at the positioning, look at setup, thats really what were trying it highlight in our note this morning. And before the news came out, the setup was there. If youre trading tactically, trading on a time frame that is, you know, one to six weeks, which a lot of clients are, i think thats where the opportunity is if youre we talk about this on the show all the time, what is your time frame, if youre a longer term investor, the secular trends that are in play, i think are probably going to persist and i agree with one of the prior guests, healthcare is an area that was actually structurally or secularly attractive before the pandemic i think it will continue to be after. So really got to Pay Attention to what is your time frame, what are you trying to achieve, but we think on a tactical basis, regardless of the news that comes out, the setup is there for more momentum reversion here. Interesting jonathan, i appreciate you calling in ill kick it around with the gang now well talk to you soon stay well. Thats Jonathan Krinsky of baycrest what do you think of this call the setup was there. It has been ignited and it has staying power. Okay, well, lets talk about, first of all, prior to the setup. Prior to the setup it was all about Megacap Technology if i take the big five Megacap Technology names from microsoft up in the Second Quarter 17 , to facebook which is up 27 , they have been carrying the market up until last week. What jonathan is talking about, i agree, but lets be clear, that does not mean you sell your Megacap Technology out of your portfolio. Lets understand something amazon sits less than 2 away from its all time high im not understanding why it is so many people are suggesting today that there is the time to move out of Megacap Technology what there is time to do is to look at value as he is defining, jonathan, and go after specific quality names. In financials, yes, you had a turn last week you had an opportunity to buy jpmorgan, or to pick up a blackstone thats the right trade there are specific names as it relates to the covid contagion stocks, the laggards as i would call them, that are clearly making a reversal. Fedex presents an opportunity here and i think marriott presents an opportunity. I dont think lets frame it in a different way, put a finer point on it, joe. If we say, okay, were not we dont have to tell people, okay, maybe you should sell or take some profits in some of the megacap tech names, but if you are feeling more opportunistic in the stock market right now, relative to where you were a week ago, any fresh money you put to work should not go in those areas, and it should look into the areas that youre talking about and that krinsky is talking about doesnt have to necessarily be a sell and buy, it can be a new money to work, but in a place where you may not have looked before i would say a blend of the two, scott i would say if you give me 100, i would spread it equally. I would make sure im still putting that 50 towards Megacap Technology, because i think the performance will be there and the fundamentals will be there going forward. With that other 50, as i said, i want to focus on the quality names like even lets say American Express and financials, which finally looks like it is beginning to make that turn. It is a i want to talk about the financials anyway. Kevin oleary, buffett bailing on the airlines and making the moves he did getting out of Goldman Sachs and trimming jpmorgan can be looked at by some as a contrary indicator, maybe thats the sign of ultimate despair in those spaces and now it is actually time to put some fresh money to work what do you think about not only what buffett did with goldman and jpmorgan, but that it is actually time to buy some banks. No, it is never time to buy banks. They are ever impaired with Interest Rates close to zero and now even the dialogue. Im not saying it is going to happen powell doesnt like negativerat. Just look at europe. They tried every trick in the book to support their Financial Institutions and i know you can say it is different, yada, yada, yada if you want to talk about sectors, why put money to work in a sector that has been breaking your heart for year after year after year of underperformance, that these poor guys have nothing to work with, the spreads are brutal lets not forget, they were forced to become utilities to distribute the ppp loans and other programs yet to come where they basically make no money at all. Why go there why why take a rope, dip it in a pail and whip your back with it . Thats what youre doing when you own financials forget about them. Leave them alone to suffer with their misery and put your money into healthcare. And tech and places where the new American Economy 2. 0 is going to show its strength. It wont be in financials. This poor sector is dead money for a long, long time. Now i know im going to get the emails and yada, yada, yada. I dont care. You dont have to wait for the emails i got pete pete well let me have it, pete. No, no, i understand what youre saying, kevin it is difficult. But to joes point, there are names in the financial industry i think you can invest in and be very profitable fairly rapidly i think American Express is one of those names i think you could go across and see avisa, mastercard, those kind of names. I also do have some Bank Exposure now, am i happy with some of the results recently no, not necessarily. But i still have there are moments in time, we all know this, everybody talks about peter lynch, how you got to be in the market for the entire year to take advantage of the multiple moves that you get, four, five in a year, i think there are names in the financial industry that still trade at a level where you can own them im talking about bank of america and citi, based upon where they trade right now, i think they are still very inexpensive, and they do give you some kind of an opportunity. Now what kind of opportunity . What kind of opportunity they trade they trade theyre cheap. All of the big banks, you could make a compelling case that theyre cheap. Theyre cheap because of what kevin told you why theyre cheap. Because the spread is terrible, they cant make any money, the economy is no good why would you want to own a bank and buffett bailed buffett getting out of Goldman Sachs altogether and i thought hes tight with jamie dimon, dont you think right . And hes hes lightening up on jpmorgan . Right well, i unfortunately view this time as one of those situations where hes almost doing what he used to criticize people for when there is blood in the streets, thats when you should be buying. I look at Something Like a jpmorgan, joe talked about it as well, underneath 90, i look at jpmorgan and say, you know what, i think thats an opportunity. Now, when you guys have to understand here is we have volatility in this marketplace, correct . Were still trading even with this 800 point move to the upside, we trade at a vix that is trading around 29 or 30 thats easily double a normal vix. So if youre selling options every single month and collecting and, kevin, you talk about dividend yields all the time if you like dividend yields, why wouldnt you own a citibank and sell calls every month, collect your money and whatever dividend yield they pay on top of that, even without performance from the stock at all, if it just sits here, youre going to take in nearly double digit yield against that position so thats where i dont really understand it. Im not nervous necessarily to the downside i dont necessarily see a huge upside but if i can sell calls against this every single month, and collect a dollar at the end of the year from each one of those, and i collect 12 on a 30 plus dollar stock, i think im going to do pretty well in terms of my dividend yield i understand you selling calls, but youre basically telling me and the whole world when you do that, your investment in the core equity is dead, youre never going to get called away. Youre going to get the option value and the stock sits dead. Im telling you there is other places to put your capital work and a chance for Capital Gains i feel sorry for the banks money centered banks and regional banks dead money. Thats what i think. Thats what were talking about, these Big Money Center banks, citi down 44 year to date pete owns a couple of stocks, i can understand why he believes in them and makes a compelling case to keep them. And ill give you a great example in terms of citi, the reason i got back into citi, scott, was in march, and when they were absolutely going after all the banks, everything was getting pounded to the downside, suddenly i see a little ray of light in terms of citi i took a shot and i own citi ive been selling calls against that each month. In this environment, with the volatility we had, lets go back it is not that long ago, guys. You look back to march, thats when we trade at an 80 vix can you imagine the volatility you were able to take out of those options every no longer every month, every week, so those are the opportunities. You have to pounce on opportunities, the market gives you opportunities every single day. There are opportunities today as well, i think you have to pounce on those if i can own Something Like a citibank, what i consider to be an extremely low level, and be able to collect that kind of premium, i dont think you can find other places that are going to do that for you, kevin, the way im seeing right now in some of the financials. Not all of them. Some of them. You mackke a pelcompelling c, thats okay. I think it is limited i think what is going to drive financials forward is going to be this rotation of value. We were talking about this, you know, six or nine months ago, saying we needed to see financials rally in order to lead that value rotation if were waiting on that, that is not going to happen you could see financials and banks in particular because they are the most undervalued part of the Financial Sector right now because we all have been doing what everybody has been talking about here, finding nonBank Exposure to financials, i think that you could see the banks do well, but i think it is going to be the back end of this value rotation and i think today over the next, you know, two, three, four months, not how i invest, how you are looking at this, banks are probably not your first dollar into the Financial Sector or into this value rotation in general. I see an interesting area you put some money in, exxonmobil. Exxonmobil oil has been in the dumps. I get that it had a nice move to 30 bucks but why exxon . If you think if you like the quality thing, youll go to the best Balance Sheets, exxon, chevron, et cetera, and say this beyond our own borders a global index. If you believe in a recovery, world economies, whatever, you know, inoculation or change in just the entire economy of europe and asia and Everything Else, oil is going to be the best index to play i dont mean the contango game i wont buy the commodity. Im going to sit in the weeds with a strong Balance Sheet, like an exxon, which i started buying back when oil was 18 bucks. And say this thing is going it survive one way or another access to the credit markets if it wanted it it doesnt need to it has fantastic Balance Sheet and it will take advantage of any Small Company that goes under, in shale or has rights or leases, and that dividend is crazy good want to talk about an incredible dividend and cash flow, number one reason that im buying both chevron and exxon is if you listen to the ceos over the last 90 days, the new discipline in capital expenditure, they dont want to spend any more money anymore drilling new holes they admit they dont need it. They want to return that capitol shareholders i dont know if thats buy backs. But if they want to maintain the dividend where it sits now, ill all f im all for that and i get to play the upside that jpmorgan doesnt have there is one thing we didnt talk about in the financials theyre heavily regulated utility now. The government tells them what to do, when to do it and what their Balance Sheet should look like in a way they werent 15 years ago. If you want to look for economic recovery on a capital gate, i dont think youll get it in utility like a bank. I know it is a horrible thing to say those things have been really crushed by the regulators in terms of their ability to put on more leverage on their Balance Sheets i feel sorry for them. They live in a level of hell they never experienced before, and those ceos are doing their best jobs ever while the government calls and says another program coming where you make no money. Joe, the Oil Companies lived in a similar place not all that long ago because oil was just destroyed the Oil Companies absolutely lived in that place. But hold on a second jpmorgan, okay, i heard the narrative about overregulation and the impact on jpmorgan for the last ten years january 2nd, jpmorgan made an all time high. What are we talking about . Jpmorgan has put 10 billion into recreating itself to become a Technology Oriented consumer bank. Jpmorgan and the ownership of it is such an incredibly important philosophy for investors because if youre ignoring all financials, then you are overconcentrated in your portfolio and you have significant exposure i am not saying you have to own all the Money Center Banks, but you have to mine for the Money Center Banks that will provide you diversification and clearly have proven over last four or five years that they can endure and grow revenues in such incredibly challenging environment. Who cares it made a high in january . The world is an enactuarialtu e different place. The world is in an entirely different place and how specifically does that impact jpmorgan other than from a liquidation capacity we saw in march. You can make an argument that the actions of the Federal Reserve support jpmorgan even further in its ability to grow its Business Model, domest acicy and throughout the world. These banks cant make money on the spread. And now the actions that have happened not talking about the banks i am talking about jpmorgan, im not talking about these banks. We keep talking about jpmorgan kevin mentioned jpmorgan im talking about jpmorgan okay. Im talking about jpmorgan also it is down 31 in six months. Okay. Who cares that it hit a new high in january . I felt great about everything in january. Do you feel real great about everything today five months later . I feel great about jpmorgan below 90. I feel great about jpmorgan listening to jamie dimon and understanding what hes going to be doing, cutting back on expenses and positioning jpmorgan for the future. Is it going to be the same future that jpmorgan was able to reach that high on january clearly it is not. But i have the trust and confidence in the Management Team and the Business Model for jpmorgan that that is the one Money Center Bank that i believe will flourish through this environment. Even though you just told me, though, you dont think it can get back to the highs of january. Im not sure that i said that, but if i did say that, thats not something that i believe will be true over the next three years i think for an investor looking at value and Money Center Banks now, given where the prices are, jpmorgan at 8962 as we speak, three years from now, youll do well okay, im glad we have a time frame on it. I didnt know if we were talking a tactical thing here in the shortterm or three to five years from now okay well, thats a separate conversation well, from an investors perspective, were talking about actions within their portfolio that are going to provide you, again, moving away from concentration, where you have no money center Bank Exposure, thats the wrong thing to do in a portfolio from a diversification strategy ill say this, from an investment threeyear time capacity, yes, i like jpmorgan from a trading capacity, from a trading capacity, i like jpmorgan at 89. Okay. Neither, jpmorgan pushes towards 100 before it pushes down below 80. Okay. I like that. Pete you like that . Well, we got off of where you started though, scott. What you started with was i know. I started with exxon and chevron and joe brought us back to jpmorgan and we had that debate. Right so my brief thing would be joes right, i mean, jpmorgan, it all depends on your time frame and also can be a trading vehicle. We know that look at what these markets give us every day i talked about the vix, that gives you an insight into the markets themselves especially given the fact that jpmorgan is part of the dow. This is a major company, we talk about it all the time, but getting back to energy, for a second, kevin, what i was interested to hear was, and you clarified it, but i was going to ask you, chevron, what i prefer and own chevron, i have over exxon, for quite a long time, i was curious why did you say exxon, you eventually did mention, i also have some chevron. I think chevron of the two is the better player, but why did you choose to be in both because arent they similar enough and you should just make a decision on which one to be in which cramer would say is chevron. I get it. I like to have diversity and have a place where i can own more than 5 of any one name if i want to overweight for a period of time, those are the best Balance Sheets in the Energy Industry worldwide. If i want to go past 5 , i got to own both names and you can take one or the other. But the trend is your friend there. Youre not going to have much divergence between those if you believe in the longterm theory, every time someone tells me hydro carbons are finished, we wont need them in ten years, thats bs, completely. Think i we i think were stuck with this not just for us but worldwide. But this was the most hated stock only about 21 trading days ago. Lets remember, all of a sudden, energy makes a comeback for first time i think energy is going to get up to 40 bucks next year somewhere and sit there in 40, 45, dividend safe and the ceos of both companies have said we have found a new focus, we want to give you as a shareholder back more money, and we dont care about drilling more holes thats the best message about that sector. All right we mentioned one of the catalysts today is that positive vaccine data from moderna. Hitting an all time high today steve, good to see you i dont know if viewers followed you into this name what do you do with it here . So i bought it originally on february 24th. So it has been a good run. Traded around it what i did with it was that i sold half the position before the market even opened and then as there was some bashing of the stock, premarket into the market opening, i was able to buy some back. Bought more back at 78 i think what people are missing on this is that moderna just didnt start with covid. The technology, the messenger rna has been around since the early 2000s. And moderna has big names behind it astrazeneca, merck, partnership with a Swiss Company to manufacture it, and theyve got a few drugs right now, few vaccines in phase two trials so while we heard that gilead may not make money on their covid therapeutic and that may be true of moderna, i dont know, but it will ratify and will be the first approval of a messenger rna drug there is. And that will lead to just incredible upside for this company. Right now phase two trials forgive me for interrupting you. The big deal is whether theyre going to make money on the covid vaccine, if, in fact, they bring one to market. They never produced anything, right . This is a first on many levels so there is a lot were making leaps of faith on here, right, with these kind of gains they need to produce something and they need to make money on it how does that change the if it comes out, theyre not going to make any money on covid vaccine, how does that change the calculus on owning the stock . Because it proves the science of the first rna vaccine that will be approved and there are other shots on goal, cancer drug, that they have got, cancer vaccine in phase two already. They got another one in phase two this is for prenatal disabilities that is in phase two. They have got another one, melanoma, in phase two these are huge markets, the Vaccine Market is over 36 billion. Their cardiac vaccine is in phase two, that killed 366,000 people last year that is significant upside there. Thats how they make money so even if they give this away, the upside is tremendous in the others now, of course, it could also fail they never had a drug that is approved but when youre a biotech investor, you sort of get used to these, you dont put all your money into it, i would say it is still a speculative position for me, not a core position by any means, even though the size has gotten bigger. But phase three trials are going to phase two is going on now. Phase three will go start in july if the safety data is good i know they only released around 8 people the study started phase one with 45 more added. Assuming the efficacy is good, it is great. I got more on friday what was astounding to me is when the moderna board member resigned and was appointed to head the vaccine effort, the warped speed vaccine effort by trump on friday afternoon, the stock didnt move. The reason i bought it is he wasnt going to name somebody where the data was going to be poor so they had it look at the data before he appointed this board member to head it. So i got a little bigger into it right now im staying with it. These are the type of things you trade. There is a negative story, a positive story, you got it take advantage of the big, big pops and it will pull back and then you buy more so youre advising people who may have followed you into this thing weeks and weeks ago to stay the course . All things being equal . Right i would definitely take some off the table. Stocks are up like this. The stock is up, you know, more than four fold you have to take some off the table at some point. Weiss, good catching up with you. Steve weiss. Sue herera has the latest on the virus. Leaders were propositivie pra Recovery Fund to help the eu nations with the pandemic. French president macron says the money should be given as grants, not loans, and should focus on the regions hardest hit by the coronavirus. The two leaders call the plan a major step forward in michigan, some autowor r autoworkers are back at work before dawn, employees streamed into a truck plant near detroit. Tens of thousands of autoworkers across north america are set to return to work this week and in california, a thousand chickens from an egg farm struggling because of the pandemic will get to live out their lives at an animal sanctuary. Two planes were chartered to bring them from the part in iowa, all the way to the animal place sanctuary north of sacramento cant imagine what that was like on that flight as always, get more coronavirus coverage by going to cnbc. Com. Scott, back to you. We appreciate it, sue thank you. To bob pisani now, tracking the big etf movers in todays rally. Bob . Good to see you, scott. Optimism around that Moderna Vaccine and rally in some commodities moving the etf complex. I want to show you the ishares, they track global stocks involving genomigenomics this is only a year old. Speaking of moderna, you see this ipo etf, it is at a new high now thanks to two stocks that went public moderna and zoom energy etfs, oil and exploration etf, xop, a rally, big volume today as oil hits the highest levels since early march here. These rallies have gone nowhere with this. Look at that not even a breakout yet. Be careful about that. This is also true of the airline etf. Jets big volume, big inflows in the last few weeks, betting on a bottom here. These airlines are burning through cash really, really fast this has lost 16 of the value in three months. That is not a breakout at all. It is rallying today gold miners, big rally, gold is down, looks like that safe haven plays less attractive on some of that vaccine news. For more etf edge, youll get a lot more, live online show coming up 1 05 p. M. Eastern time three of the most innovative etf managers out there jay jacobs, kathy woods, noah hammond. Well talk about Disruptive Technology and how to trade that 1 05 eastern time. Thats great stuff. Look forward to that big week coming up for retail earnings. Walmart, target, depot, many more on deck well answer your questions too. Were back in 30 seconds welcome back there is the calendar of a very big week for retail earnings Pete Najarian, walmart, depot, kohls, target, all the names on here what are you doing in retail well, some of those names ive gotten rid of just now, scott. This morning, actually walmart is one of those names i sold off i had tjmaxx as well nothing changed other than the fact the stock spiked up i had to exit that because my discipline tells me i got to get out when you get a certain level i was shooting for if i look at it forward, i would say this, home depot, ive gone to home depot i cant tell you how many times over the last nine weeks it has been a lot and it always has been busy. So i just have been using that as part of my gauge. Ill go to multiple home depots throughout the week. Im checking out lowes and the rest of them theyre all busy i expect well see some pretty interesting numbers out of target, walmart, home depot, lowes, all the various names. Some of them moved so fast, i had to take some of that exposure off. What do you do with that . You may make the names, you may think the news will get more positive but a lot of the stocks now are moving so what do you do to petes point . I think you need to look at what is the what is the next phase and i think although i dont own it, i think target is the most interesting this week if you look at the retail Sales Numbers from friday, the drop in apparel sales was catastrophic if you think about margins, they have been able to drive marriagen frmarriaggins from part of their business that is in the center of the store. Im interested in target earnings if there shows incrementally better sales in those other areas, besides food, then, you know, the retail Sales Numbers indicate on friday, that might be a good stock to own in the second half of the year. Youre trying to get on petes good side of all of the names you could have picked, thats the one you pick on the day that Pete Najarian is on our show. Appreciate you. Pete tv. I love home depot, but i know you like home depot. Go ahead, pete. One thing i would add to her commentary is this, we know through Brian Cornell they arent buying the clothing, theyre not buying the different other areas and thats where the margin is. The other thing he pointed out to us, maybe two weeks ago, brian pointed out the fact that they are seeing those numbers just absolutely explode on the ecommerce side. Hes talking about stickiness. So when things open up a little bit more and things are beginning to here in minnesota, but as they open up more and more and people get more and more into the stores and feel more comfortable about doing so, i think youll start to see the higher margin items start to be a part of what people Shopping Experience is, rather than just the groceries and Everything Else that level and the fact that the stickiness that he talked about, i think that bears well for them you look at where they are valuation wise, theyre expensive compared to walmart now. There is a lot more upside to come. Joe what do you like in retail, if anything . I own home depot. Im a little concerned going in. The expectations are going to be very high and the Price Performance has been one of significant outperformance to petes point, the foot traffic for this quarter showing for home depot up about 10 and for lowes up nearly 20 this could be a Historic Quarter for home depot and lowes. Lets hope you get the price response to that incredibly strong fundamental report on the back of the do it yourself Home Improvement appreciation that consumers have right now. So im figuring this may be a shark tanklike moment you hear from three sharks who are fairly positive on the retail space before you get to kevin oleary, and then it comes to Kevin Olearys turn and he says what about retail i do own home depot and lowes because of the renovation to homes which will be important. I think the sector is impaired and it is going to be one of those in america 2. 0 until we resolve real estate and foot traffic and the new way of shopping, i just cant get excited about it i sold all my rates, down from 30 , down to 8 , thats almost all of them. Most of them were providing space to a lot of retailers. I see a change in peoples buying behavior being permanent. I have to see the other side of that mountain. I think next year will tell me i can see picking names like a lowes or home depot, the Balance Sheet, safety, and also the trend towards homes, but if you dont acknowledge that the world has changed in terms of buying behavior, i think you are the canary in the coal mine and it is leaking gas. Thats the way i look at it. You got to be really careful i hate that sector and i hate utilities and i hate Long Duration and im going to go to where the new america is that will be in healthcare and technology and places where youve got potential for growth. Why do you have to take the old dogs and think theyre going to come back . Theyre dead. That sounds like the equivalent of im out. With some justification, i think. Right a little bit a little bit kinder gentler mr. Wonderful speaking of retail, tomorrow on power lunch, courtney reagans interview with kohls ceo. We look forward to that tomorrow at 2 00 p. M. Eastern time. Coming up, were answering your questions and you can reach us at cnbc. Com halftime tweet askhalftime and we are back in two minutes. Thats why were expanding your range of choices. Many dealers now offer optional pickup delivery and athome maintenance, as well as Online Shopping with Home Delivery and special finance arrangements. So, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. All right. We are back with petes unusual activity we are locking at the chart of a stock thats up big, beg, beg today. Boeing. Yeah. This ones really crazy because we had great buying in there they were buying friday expiring bought the 130 strike calls. 9,000. And the 135 strike calls at the time buying it, the stock lower because everything just continues to run to the upside but the stock trading 126 at the time they paid 1. 50 for the calls. 135s that was aggressive buying i jmped on those and then carnival cruise. What im seeing here and thinks a short squeeze, right getting something leike that could elevate the stock rapidly. Buying 5,000 of this weeks expiring 14. 5 calls. Lastly, Tech Resources all the time, hitting, hitting i bought back in because they were buying the june 10 calls paying 60 cents for these. So aggressive buying in there. Material space on fire we have had a lot of different paper there. So im back in that name, as well. Wow interesting. Carnival ybnohave unusual on carnival mae t. Final trades are next. Derek, seems like your team is operating just fine remotely. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. A reminder the breaking News Coverage continues tonight. Ill see you at 7 00 eastern time look forward to all of you joining me glad youre back joining me now because were answering the questions. First up, joe, gary in green bay, wisconsin, Waste Management hold Waste Management not enough guidance on the commercial side for the environmental stocks, what restrictions will remain in place as the economy reopens. All right pete, to you, kinder morgan. We have a couple this is michael in phoenix to know about it and what do you think . Is it still a favorite of yours . It is, absolutely is. I love this name all they do is give you an incredible dividend yield. They have been fiscally responsible i think over the years. When they were able to bring it back they did that Richard Kinder continues the buy his own stock. I own the stock and love it. Shannon, eric in los angeles, i have 30,000 where should i invest it do i buy the fangs or do i buy the spdr etf spydr gets you fang exposure. Look at acwy with access to international and emerging market stocks an ena likely weakening dollar is diversify ca well. Acathy, i met her on your set a year and a half ago and thought she was crazy. She isnt. I was wrong, shes right its volatile. You must own tesla if you believe in autonomous driving. I dont know what its at today. 800 bucks or something cathy woods, listen to her. She thinks it is going to like 5,000. I told you she was crazy. You said that i think she is great. Shes absolutely right shes absolutely right she understands this stock inside out i remember arguing with her into a huge argument but she is not right. It is not a car company. Well see shannon, give me a final trade if you would, please. Abbvie. The transaction is done so theyre moving forward. Joe ole dominion freight line. Pete . Hewlettpackard this name continues to hit with gigantic call buying going higher. Kevin oleary j j Largest Holding of health care for two years. Lets take a quick check of the markets in the last 15 seconds. We have a good day going 24,500 where the dow is. S p around the key level keep your eye on that. Certainly as well. We are back to early march levels for stocks. Thanks so much for watching. Kelly evans picks up the breaking News Coverage right now. Thank you, scott welcome, everybody on this monday, coronavirus is sending stocks surging today with the dow and s p having the strongest day in more than a month. All three up for a Third Straight day positive for may so far. A big rally in oil helping sentiment. Crude around 32 a barrel. Well have more on that in a moment take a look at the sectors and the markets first to see the gains that im tacking about the dow up 824 opponents 3. 5 gain now practically. 86 points higher for the s p a 3 gain. The nasdaq the
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