Transcripts For CNBC Fast Money 20240713

Big rally bubbling up. Check out what happened to chinese tech stocks today as Congress Seems to be turning up the heat on china. Lets get to Kayla Tausche for the details. Melissa, the Holding Foreign Companies Accountable act technically applies to any nonu. S. Company listed here and it requires those companies to be subjected by the securities and Exchange Commission and if not to certify that it is not owned and controlled by a Foreign Government any company that cannot prove that would be dislisted. Here is john kennedy, the republican senator from louisiana who sponsored this bill i do not want to get into a new cold war all i want, and i think all the rest of us want is for china to mri by t play by the rules. Antichina sentiment has been gaining steam in recent years and it did not subside after the phase one trade deal was reached in january and this particular issue of transparency has gained new momentum after the fraudulent Financial Disclosures at Luckin Coffee just last month. The white house and the Labor Department directed a board to refrain from investing money in certain indexes that have stocks as a matter of National Security it still requires passage in the house and the signature from the president to become law and given that it was first introduced early in 2019, it is unclear exactly what the timeframe for that is, but its clear theres a lot of bipartisan support melissa . Kayla, thank you. Kayla tausche in washington. J. P. Morgan writing today as the virus risks evading globally geopolitical fallout is a new risk and specifically, this is what he writes, for example, just today the u. S. Senate passed a bill to bar Chinese Companies from being listed in u. S. Exchanges while we have been recognizing chinau. S. Tensions as a political stumbling block for the markets here, j. P. Morgan is coming out saying this could be a real issue tim, i go to you in terms of the trade that we saw, can you walk us through why some got hit harder than others . Alibaba, for instance, emerged relatively unscathed compared to a j. D. Or baidu . Yeah. Because i think if you look at the disclosure and the approach that alibaba has taken to their International Accounting standards, and i think theyre different, and i think alibaba which traded down on the news ended up rallying back almost 2 off of the intraday lows and alibaba reports fiscal q4 this week on friday and i think those numbers will be really solid this theme may appear to be a trade war theme kind of hangover, but i think this theme is something thats been front and center for a long time i think the secs ability to actually investigate Chinese Companies listed in the United States and actually look at their Balance Sheets and get followthrough from the Chinese Government has been a challenging issue for them for a long time, and the nasdaq we saw is putting more restrictions on Chinese Companies going to ipo in the u. S. And actually limiting a minimum size, for example, which we also, i think bring more cred entities that have more scale. Separating the haves from the have notes here is not so terribly easy, but with alibaba and ten cent, the standards there and these are companies that went on global roadshows and alibaba for a long time were basically put through the ringer by investors, lawyers and compliance folks to deliver a platform that stood up to this type of rigor. What the u. S. Is asking for is from every company i think this is something that is very important and something that will continue this is, in theory, very good for investors and congress wants, and the nasdaq wants listed companies from other companies to follow u. S. Accounting rules and better for u. S. Investors and better for transparency and yet in the context of the world we live in, guy adami, this is going to be seen as the latest bar being traded between the u. S. And china. Yeah, and with that said, here we are with the s p 500 basically 3,000 and 12 off the alltime high and the nasdaq is within a whisper of an alltime high and well talk about making new alltime highs and nobody seems to care and to your point, listen, everything going on with china, maybe its deserved and maybe we needed to have the trade talks and im not disputing that, and there have to be ramifications and with this latest, i think its a big deal coupled with the fact that this administration, rightly or wrongly is looking for a scapegoat for the coronavirus and its going to be the chinese and there are ramifications for that, and if i want to bring everything back to the wuz, okay, wonderful and there are ramifications for that the fact that the market doesnt seem to care in the s p 500 and the nasdaq is very interesting to me. I understand the fed, and i get all that, but were looking past something that can be extraordinarily disproductive in the months to come karen, what do you make of the latest development in the context of the markets today which is a rally right i actually do own alibaba, so i was a little bit concerned when i saw that alibaba is safe and as tim said they went through a vigorous process, but i do want to check that they do have a worldclass auditor which they do, Price Waterhouse so ultimately, i think its a good thing i think, though, if it happens i was surprised that it was unanimous, if it comes to pass in the short term it will be a bad thing for some of those stocks, obviously, but i agree with guy also. I think its increasing the tensions so china becomes the bad guy and as he said, theyre looking for a scapegoat. All of that having been said, though, im very surprised that the market went up as high as it went today on i dont know what. Dan nathan, is it a coincidence that we saw fresh highs while we saw the selloff in chinese internet stocks or is that two things that happened to happen on the same day think they happened on the same day i think it is pretty interesting when you look at the u. S. Internet stocks how little exposure that most of them have in china because of regulation, and i think this is one move by the sec and by our exchanges that theyll get very, very little pushback, and the other companies to want to list here for a whole host of reasons they should list the same script that u. S. Companies do, but i cant help, but string it all together with some of the stuff that all of the other guys and gals are saying about this timing listen, we are clearly making a stronger case against china. Whatever the reasons are, i think it is bipartisan and a lot of people feel we should take them on a lot of bigger things and my bigger issue is about the Global Economy, chinas recovery will be really, really slow and when you think about this economy that goes from 6 gdp growths negative in such a short period of time and what thats going to take to get back up even high single digits, that is going to be a weight on the neck of the Global Economy for some time i just feel like we need to figure out how to better cooperate globally because deglobalization, the biggest theme of the last 20 years is coming undone and there will be massive,s massive, economic ramifications and u. S. Economies have dramatically benefited. The market is not from testing any supply chain to the globalizations. So a reshoring move could in fact hurt s p 500 companies. It does look like we are moving slow slowly towards that eventual end and were talking about bringing back critical components for Defense Products or technology or for drugs back to the United States thats at a cost, obviously. Yeah. Look, i dont know how great this will be for apple and this is something that we debated over and over and in terms of their supply chain and the component makers and yes, some of this can be done, but i think its crazy to expect it all to happen, and i think it would be terribly inefficient and let me stand on the side saying i get the fact that we want to control supply chains and people want to push back on china on a number of issues, not categorically and i believe this is easier said than done, and i think the key focus for me is u. S. Markets are the deepest, most transparent in the world ask they are for a reason, that there is Regulatory Infrastructure around the way the markets trade and the Way Companies need to be accountable and disclosure and transparency if they can list in this environment and any company in the world sees that environment and this is where i would exact the greatest multiple and those that dont want to play ball here clearly cant and wont and the highprofile ipos in the last year and saudi aramco and there are places where People Choose to play or not to play, but ultimately its good for companies as well as investors our next guest says this market valley has even more room to run lets bring in j. P. Morgans Phil Camporeale. Hello, melissa. Good to be back with you. In terms of the market going higher, whats going to drive this and are you factoring this at all a resumption or an increase in u. S. China relations or tensions, i should say. Thats a good question, melissa. This has been an incredibly emotional and confusing market environment for the past couple of months and even for the most tenured investors. The unemployment has gone from a 50year low to an 80year high, and its gone up 3 in a day thats exhausting, right and we are also sitting on top of the second best 40day stretch in market history. The reason why i think you can continue to press higher is because there are very important technical reasons to continue to like the market. There are 5 trillion right now sitting in money market funds. This time last year that was 3 trillion speculators and futures on the s p 500 are the shortest since 2016 remember the november election and what we are doing is taking on cues from financial conditions if march 23rd ends up being the bottom, and it will get remembered by march 9th and it gets remembered in 2009, but really it was what the fed said that day yes, the market bottomed and what the fed did that day was announce their Corporate Credit facilities and everybody thought maybe this will help fixed income and Corporate Credit, but what that did in terms of improving things like libor and the vix has created it and all of that is feeding upon the strong technicals in the s p the other thing is the s p 500 has a yield of 2. 2 right now versus the tenyear treasury, weve never seen that before so you add up on top of all of the technicals and i always say, things dont move by 40 because everyone is invested unless those technicals start to change, melissa which we dont see changing any time soon it should be bought here so i want to get back to the money sitting on the sidelines because i hear that we hear that a lot. Money sitting in the sidelines in money market accounts has increased by 2 trillion to the best of your knowledge, who is the primary owner of these money market accounts and im trying to understand whether or not the holder of these accounts if theyre hoarding cash because theyre concerned and so therefore the cash may sit on the sidelines for much longer until we have a better grip on how this is all going to play out the slope really steepens in february and march of this year so that looks to us like its a retaillike flow, right . Where main street has flown to the head signs and theyve run for the hills and thats less the case in institutional case where folks are rebalanced and they continue to add, and thats a fomo trade like ive never seen before and it is so expensive to sit on the sidelines and if you want to go to government bonds theyre at 70 like, where are you going to go . And thats why the improvement in things like libor and credit spreads and even the fact that Companies Like live nation and cruise lines have been able to issue debt in this market is an important bridge loan for these companies. The fed has been absolutely heroic and creative and i think that that Corporate Credit facility will go down in history as one of the more important things theyve ever done. So you dropped equity allocations by 20 in march. Im curious, when in march did you drop it because its a pretty critical time to drop your equity was it before the dip or after the dip or what yeah. Thats a critical question there, melissa, this was towards the middle of february when it was clear to us. Apple came out and apple was, like, this is more than a supply side issue and we may not get the demand and this was the middle of february when i started to start with the deputy allocation and it was for the reasons of okay, now we have a Federal Reserve thats committed to avoiding the worst Case Scenario which is a run on cash and the cares act passed 960 and the third thing was the fact that there was a major rebalancing that was going to occur at the end of the first quarter. Right so we s. T. A. R. T. Ed to add that then and then we slowly were adding back to get to a neutral allocation, but i want to be clear here, melissa. There are plenty of fundamental headwinds that well face and its hard to get to an overweight and we would agree with the comments you made especially, and if the markets tend to improve. Phil, great to speak with you. Thanks, melissa Phil Camporeale and j. P. Morgan asset management. Thats important to be clear although phil sounded extremely bullish throughout the interview. Thats very important to walk away with, that you can be constructive here because of what youre seeing in the markets, but not be, you know, pounding the table. Listen, the price action is hard not to be constructive about and the s p 500 is getting back to a level near 3,000 and the 200day moving average is the level it broke out in late october. I am not getting constructive on equities here because of the last point that he made about the headwinds going forward. Yes, there were many actions taken by the fed that will be in history, deemed to be historic, but maybe thats because we have historic levels of unemployment that will take years and years to kind of work off and the fact is that we have a consumerled economy and so listen, ive been wrong for the last month and a half, but the stock market, the s p 500 has been trading between 2800 or 2950 or so, how hard is that that it can put you at the high end of the range or the low end of the range a lot of this stimulus and assistance has been front and loaded and it doesnt seem like there is tremendous demand for more of that in washington right now. So the way i see it is this. The economy sucked last year if you take out the fed cuts and the qe in the fall, you know, yes, the stock market, what did it do . It got risk assets going high are and without that, we just did not have a great economy now the economy is really bad and the stock market is down 8 on the year and i dont see it as a great spot to get back into equities and one last point about the cash in the sidelines, any pad news thats going to act like because that is a stock, those people are in weak understands in my opinion. Taketwo, and plus a big quarter for loswe, what is next for this stock stick around and find out. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex. Plus vitamin d for immune support. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Welcome back to fast money. We have an earnings alert on taketwo josh lipton has the details. Hi, josh. Melissa, if you dig into this report on the segments, Digital Online was a physical retail was a beat q1 theforecasts theyre giving for bookings ahead of analyst expectations handily for the year though bookings are calling between 2. 55 and 2. 65 billion and that was light there and we were looking for 2. 7 billion. Some interesting commentary from the company saying fiscal 2021 will be a light year for new releases, though they do say they expect to deliver strong results. It was interesting on the call with the Ceo Strauss Zelnick talking about the grand theft auto 5 sales surpassed expectations and the big thing is when grand theft auto 6 is coming hes still betting thats a 2022 event. The trailer, though, he thinks likely hits the next 12 months and he thinks that game adds 3 or 4 in eps on the call, that stock was higher and executives began to have some color on the longterm pipeline and executives saying they have 93 titles set for release over the next five years and 47 are for existing franchises and you saw the big reversal in the stock and i was messaging back and forth with Michael Pactor of web, and investors wanted more specifics and more visiblity ility and not numbers. People wanted to know that gtaa, grand theft auto was definitively coming in 2022 and they did not provide that. Back to you. Josh lipton, we saw taketwo opening lower in the afterhours session which was giving back what it gained today in the alltime high session. Guy, youve been on this for a while, positive, what do you do here the stock was a 100 stock and the march low and it was up 50, at one point north of 150 and obviously up 52, 53 and was the quarter in and of itself was very good. I think people were troubled by the guidance to joshs point what do you do i think you look for an opportunity to buy it again, and im not saying its getting there. However, if youre looking for that level it comes in the form of the previous alltime high from september of 2019, i think around 132 so if this thing were to sell off on the back of a Broader Market selloff, 132 is where you get back in and the stay at home stocks, and tim has a setup behind him there what would you do with the stock . Are you kidding me . Thats how you kill these hour, mel. If you think about the stock and guy talked about the move into the numbers and year over year, net bookings are up 47 and this is a strong independenumbers an valuation that got cheaper and not over the last two months, but a valuation in the upper 20s and it still makes sense yes, i think youre a buyer of any week and theyre not just covid19 trends and the gaming stocks, and i think all interactive Online Gaming is the way of the future and a secular trend and a lot of these stocks spent two years putting in tops and are breaking out again and its not the time to run from the stocks. Lowes reporting an 11 jump and jim cramer sat down with lowes marvin el sson and heres what he said about his Customer Base they had projects that were delayed and not cancelled and were seeing their business fuel back up and theyre starting back to be busy again and in a lot of cases were the sole provider from a product standpoint for those customers we have great credit terms we offer them and we give them flexibility and delivery and all types of flexibility around Service Models and believe it or not, the good news is that customer is starting to come back and that is a sign that hopefully this is not going to be an elongated recession. You can catch that full interview plus a full lineup of guests coming up at the top of the hour on mad money. We have target out today and do it yourself drove a lot of lowes karen, i know youre a big doityourselfer i say that sarcastically i can do some things myself so you are a very handy person i do. Yeah what would you make of lowes versus a home depot . Well, i thought that both of them were great and i thought they both had good quarters andelisand ellison had good things to say and there was nothing to not like about the release and it was from 65 and i think it opened at 122 and it just couldnt sustain that gain and theres nothing they did wrong theyre doing everything right, and i think at the same time as covid, they also were in the middle of an operational turnaround that seems to be bearing fruit so good for them we saw home depots numbers were very good also, but the bar was just too high which gets us to target which also had an extremely high bar those were outstanding numbers, but we talked about this yesterday on the heels of walmart even though those numbers were great and i thought target got ahead of itself and it was pricing in a lot of great stuff and they did deliver the bar was very high. They did deliver, but the stock was too far ahead of itself. At what level would you consider buying. I wouldnt sell them and i would buy target back at 115 because you sold into earnings dan . Lowes is a great example and the ceo said it himself they were a great place for consumers to go to during the lockdown and look at the last three months of the stock and karen just said it and the stock prepandemic was trading 125 and it went down 60 in the march lowes and it opened today at 122. That just completely out of control and it makes little sense. Investors have no idea what they were doing on the doupside and they just dont know whats going to come in the next few quarters and to me it will curb youre enthusiasm. For the stocks that had crazy volatility in a short period of time and lets get a better sense for where unemployment settles and then youcan get into some of these secular stories about karen fixing stuff up around her long island home out there. Tim, youre shaking your head vigorously, so i do want to get your comment in. Well, i never shake my head vigorously at dan. Sometimes its just the conversation were having, and i think the trends on do it yourself are not ones that will go away. Karen pointed at fundamentals that are lows that are going on and the Online Business and i realize we all saw a lot of Companies Reported and that was up 80 year over year. So the comp sales are up 12. 3 which blew away the numbers and even the most bullish on wall street expected. The company is doing more than just getting something right in terms of the time. When people arent working from home anymore and theyre going 9 to 5, whatever the job hours are, guy, that youre still looking to regrout your shower and hang up some pictures and do your deck over again. Do you have time to do that . Are those trends really that lasting . I love the do it yourself stuff. The first thing i did was bought a tool belt and i walked around the house with a hammer on the side just because why not . Everybody needs a circular saw, but to your point, the real comment is what karen said and dan reiterated the stock went from 125 to 60. 60 to 120 and now here we are, where do you try to buy it back . Think you look at 95 level on a number of different metrics and the lowes has closed the gap between them and home depot in a meaningful way and the stock rallied 100 from the lows coming up, mice and guinea pigs, well tell you what got shares of this biotech stock surging and why one calls it a cautionary tale for investors and later a 40 million deal and we have the details when fast money returns associates doing their best to keep our nation going. Because despite everything thats changed, one thing hasnt and thats our devotion to you and our communities. Our priority will always be to keep you and our associates safe, while making sure you can still get the essentials you need. We did it c crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Welcome back to fast money. Check out shares of drugmaker inovio jumping 16 off its highs. Why you ask . The Company Released preliminary data from an incomplete phase one trial that showed promising results for its experimental coronavirus vaccine. The research was done on mice and guinea pigs. Inovio is just the latest biotech stock to see a huge swing on the back of covidrelated drug news and here to discuss is michael yee. Great to have you with us. Great thanks weve seen, i feel, like time and time again for inovios case, this was a rerelease of data that was presented in march and this is incoam plemplete dae on animals can you contextualize this, michael . Should we put phase in companies that are releasing incomplete phase one data its great to be here i think there are two things the audience should be aware of. One is that youve seen a lot of Companies Put out a lot of information getting the news flow and getting the stock going and thats fine, but two, you need to be aware of what were talking about which is super early, very early data theyre in animals in some cases here and another company that was moving, sorrento last week which was in test tubes and that was moving and we are flagging some company and be wary. For moderna who has been in the news these are companies that have not brought companies to market. For inovio, as i understand it, according to a report, we take this with the grain of salt and theyve gone through press releases for past data release of earlystage data and in every single release they use the same terminology. Robust data, this is robust data and robust results and nothing so far has come to market. Nothing has come from those robust results, michael. At what point as the biotech analyst, i just dont believe what these companies are saying. I think there is an important point to remember is that some of these smaller Biotech Companies not necessarily will put inovio to the side and just in general some of these buckets of Different Companies which are putting out very promotional material and commentary around this toget into the socalled covid game and get the stock moving i think a word of caution because of what we have on our hands here, versus getting into commune rant and that sounds really good and the stocks are moving i would put moderna in a different bucket in the sense that we have 8 to 45 humans generating antibodies and that is positive and theyll move forward and to what degree that is valued is a separate question. I wanted to ask you in the recent note that you highlighted the fact into the Biotech Sector and were looking into the ibb off into the alltime high earlier this week. In youre opinion what is driving these flows at this point . It does seem to be covidrelated and the interest in biotech has grown during this pandemic i think there are a couple of shortterm thingsthat continue to be positive and the rhetoric has definitely moved to the side and ill go out on a limb and say i dont think well see real drug pricing legislation until we have a socovid vaccine in our hands any time soon and that was positive and the second thing i will say from a trading perspective, i expect to consolidate and move higher and you will see perceived positive covid data whether some of the vaccine data will have moderna news and j j and pfizer will be coming soon and i think the trend is your friend here with it in the second half of the year on moderna specifically, do you see this market valuation being supported and say they come to market with this vaccine. Do we even know if theyre going to make money on this . The great debate certainly is how much money they can make and how much they can charge, and you know, do other vaccines on their Platform Work all of which i think is the equation were all trying to put together here. In the short to medium term, i think valuation aside, people see continued positive moderna coming out and theres more data coming and more antibody data and people want to have a Glass Half Full view of these things and so these stocks can continue to move higher along the trend michael, always great to speak to you thank you so much. Michael yee on jefferies on biotech, retaildriven inflows to this Biotech Sector, guy adami. We as humans and people going through this pandemic, we want to believe in moderna. We really want to believe that they are on the cusp of finding this vaccine as well as all of the other companies out there, for that matter. At the same time, as an investor you think what when you see all these releases its interesting. So 20 years ago Companies Used to put dotcom at the end of their name for the same reasons it appears as though a lot of these companies are not getting into the covid space and youre right. Absolutely you want to believe, without question, but you look at citrons note about inovio, i mean, 40 years of robust data without a product, 2 price target and be careful. You have to be careful with these names and moderna had a nice move back and i think it was 67 and theres hope there and getting back to biotech specifically, this space was on the move long before coronavirus was a thing. I think this is a space you want to continue to stay with on the upside if you are skeptical, though, dan, of some of these covidrelated names and the pops that youve seen in these names would you want to be a buyer out of ibb even though the breakout started prepandemic i dont really think so you make a great point now and we want to be optimistic about vaccines and the likelihood of us being disappointed with the stocks and the point he made about the retail flows its an easy one to get their arms around and be optimistic around i look at the ibb which doesnt have exposure of moderna and its exposed to some of the larger biotechs and i see a massive double top going back to 2015, and it looks like a really Good Opportunity for those looking to kind of pick on the market a little bit and pick some shorts. I think you could have had a buy the rumor sell the news scenario in some of these biotechs that arent as exposed to the vaccines for the coronavirus karen, your thoughts on the space in general right now i think the point about whats it worth . Say they do come up with it, whats it worth . Its the most desired product on the planet and the pressure to price it as low as possible at just cost is enormous, right i dont know what thats pricing in the stock so these kinds of names are up like this or way out of my league theyre too volatile cant be involved. Coming up, we have more on moderna and why options traders see a lot more volatility ahead for this name and shares of ceokerngo atime high and why one Analyst Thinks what it could be worth stay tuned this virus is testing all of us. And its testing the people on the front lines of this fight most of all. So abbott is getting new tests into their hands, delivering the critical results they need. And until this fight is over, we. Will. Never. Quit. Because they never quit. That could mean an increase byin energy bills. You can save by using a fan to cool off. Unplugging and turning off devices when not in use. Or closing your shades during the day. Stay well and keep it golden. Welcome back to fast money. Facebook shares topping the tape and breaking out to new alltime highs and it rolled out its new ecommerce feature shops could drive 30 million in annual revenue for facebook. Tim, this is good news for facebook if they can pull this off. Its great news, and i have to say that someone that has not been terribly bullish on facebook, this could be a game changer and this is still early stage of them and ill use j. P. Morgans statement, and the ecommercialization of social platforms is a theme they were looking at and something that facebook is doing here so when you look at the opportunity that they have with small and mediumsized businesses who make up a lion share and they have a strong retail presence, but that is where they are and that is an influential and the critical part of the economy they think they have a line into. So this is very good news on opportunity and we need to see execution and covid19 that facebook should be taking advantage of karen we talked to gene munster on the day of earnings which was very good about what is the next engine and theyve been hinting at this for a while and it is not so surprising and i was surprised by the timing, and i think from diversification is good for them. The valuation is pretty stretched here and the one thing hanging over my head a little bit that i worry about is the antitrust litigation which i thought was dead from covid and its not dead. Its alive although google stock sort of shrugged it off after one or two days, but i am long and i am staying long and even with the valuation ahead of tuesday i like that there is a new engine now. A major pot deal lighting up the street our Cannabis King is here and hell briteak down right after this break more fast money in two hope it doesnt cost too much. I hope my insurance pays for it. Can you tell me how much this will be . [cashier] 67. Sorry. Wait, have you heard about goodrx . Goodrx finds free coupons to help you save up to 80 on your prescriptions. Wow, i had no idea. [announcer] goodrx, stop paying too much for your prescriptions. Welcome back to fast money, shares of Aurora Cannabis spiking in the afterhours session and Frank Holland has details on this. Shares of aurora rising 32 after announcing a 40 million allstock deal to buy u. S. Based relieva, it is number two in the u. S. And has sold 30,000 looks that includes Circle K Convenience stores and also all of its product are under 20 and something that will be key in the current economic environment. Michael singer called it immediate access to the biggest market for cannabisrelated products in the world and says this acquisition is a key part of the companys turnaround plan and the role to reach profitability and aurora shares are up over the the past week after reporting a smaller loss than expected over the last week and the stock has lost 90 of its value over the past year also cbd prices have been under pressure recently and this deal could be a lucrative longterm play cbd sales are expected to reach 25 billion by 2025 melissa, back it over to you Frank Holland on this deal. We go straight to tim seymour on this whats your take i wouldnt be chasing this deal at all and frankly im not excited about anyone saying the cbd and not because it is not addressable like frank talked about and this playbook has been tried over and over again and cbd companies and the producers are struggling massively and all of it going way lower and think about this deal. It was a 40 million deal that was done in all stock for a company who is down 90 and just did a 12 to 1 reverse stock split and how valuable is the asset if thats the deal they were doing i dont mean to be so skeptical for cannabis where they have 7 gross ebitda margins or gti late last week or cure leave or the macro making cannabis essential in this company and deeming it essential and thats the great news for cannabis which frankly, has been totally outperforming the market and you would expect it to in an up trend and this is something that there are real fundamentals there and i dont mean to poohpooh this deal and theyve been through painful times and this is not a time when aurora will be expanding dramatically and this is is not something you should be chasing. I dont want to say a waste because i think thats too strong should the companies not be chasing in the cbd space at all simply because everybody and their brother has some sort of cbd product and we still dont know what sorts of regulations will come in this area. The fda has certainly been very slow to rule on where cbd will be inclusive in food product and other additives. If you think about what big investors and those investors and private equity that know about brands think about cbd as an ingredient and some of the biggest players in the world who are lateral to this industry will be the majorplayers in it and it has been a vehicle for putting down u. S. Roots for a lot of Cannabis Companies to get the distribution clearly, and it gives you in a nonfederal environment, but cbd sales will not move the needle and its ridiculously competitive and crowded, and i think thats something all investors should know coming up, how options traders are playing the big moves in moderna mike khouw is breaking it al down when fast money returns i got an oriole here. Eh. Common bird. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. We felt as a Company Following obtaining the results that just occurred that it was prudent for us to add to our resources and invest directly from our Balance Sheet into accelerating the preparedness we have to be able to produce large volumes of the vaccine that was modernas chairman speaking on power lunch on the secondary offering on the trail results that sent the stock soaring. The stock has been making huge moves this week and traders are betting those big moves are far from over. Mike khouw has the action. Mike, what are you seeing . Hi, melissa so moderna obviously on the back of this volatility is seeing highly elevated options volumes and today we actually saw more than two times the average day call volume and i would point out is itself in order of magnitude higher than at any point prior to the covid19 related activity and it was in the weekly 75 and 80 strike call options and they were paying about 1. 75 on average earlier today and they ended up closing higher than that around 2. 40, but i will caution, folks, if you look out to the longer dated options and so on, we did see some institutional blocks and people buying puts and spending over 1 million in puts there and the Options Markets are spending on considerable volatility looking forward mike khouw with the options action for more oio a bsu tptnskde reo tu tune into the full show on friday at 5 30 up next, the final trade nd trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. 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, were committed to making college more affordable. , thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. Watching shares of take 2 interactive on earnings. The stock is down by more than 4 at this time. The afterhour session lows and it was a good quarter for taketwo, but it did hit alltime highs time now for the final trade lets go around the horn tim seymour. Lets talk about defense in Aerospace Stocks and raytheon has been one of the blue chip for a long time and they threw spinouts and they raised over 10 billion and they have a lot of cash on the Balance Sheet and i think that the Defense Industry is going to be ramping up so this is a Free Cash Flow positive story at a difficult time for a lot of companies. Check it out. Dan nathan . Yeah. You know, great conversation on biotechs i think weve just discounted a lot of good news here. And the ibb, id be a seller here. Karen finerman . Yeah. So i like it for the long term and i also own some to trade and we were able to buy, and i think it was may 4th in the low 190s so if the chinese rhetoric increases which i think it will, i think it will be okay to peel some off, and a seller of bsaba. Guy adami you may recall in the end of april, if it gets back down around 50 1 2 you buy with both hands and it actually got lower than that and here we are flirting with the 57 level and arc md breaks out to the upside. Thanks for watching fast, everybody. See yo my mission is simple, to make you money im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends. Im just trying to make you some money. My job is not just to entertain you, but to educate, teach so call me at 1800743cnbc or tweet me at jim cramer. When the markets roaring but still precarious, what