Transcripts For CNBC Fast Money 20240712

Major breakthrough in treating the coronavirus, a steroid that could cut deaths significantly among the sickest patients jay powell assuring the market is willing and able to backstop the economy. And finally, fiscal stimulus reports the white house is preparing a trillion dollar infrastructure package for everything from roads and bridges to 5g network. So, were these the three things the market needed to hit it big today . The three horsemen. Hi, mel. Hi, guy how are you well, i mean, they definitely helped, and im looking forward to Jerome Powells testimony tomorrow when somebody asks him what his favorite hardhitting question, what his favorite color is thats always riveting to me its all about the fed i think we all agree with that their commentary has been nothing short of astonishing the infrastructure supposed infrastructure bill, obviously, caught everybodys attention im hard pressed to believe that will get through this year given the divide we have, politically. The covid news is great. Absolutely great thats a plus for sure i dont think its necessarily a vaccine. It all comes back to the fed and the fact that they have this thing backstopped and ive tried to make the point that valuations are stretched tim correctly has made the point that valuations dont matter in this environment, and i think thats where we find ourselves today. Yeah, this morning, premarket, it was retail sales, which were much better in the month of may versus april. Plus, the news about dexamethasone, karen, so its driven by the green shoots that were finally seeing in terms of the reopening and the boost its providing to the economy through the numbers that weve seen so far, whether it be the jobs report or retail sales, and then also this progress in how we deal with this disease right so there was a lot of green shoots, as you talked about, that the treatment, that would be, obviously, a huge one. The retail Sales Numbers were really good. I dont know, though, if that was just pulling forward some pentup demand as well as stimulus checks that people had that they were able to spend, which may or may not recur in the shortterm i dont know so, im a little bit skeptical of that. There was also some negative stuff. Industrial production, right and then i feel like the market has been up a lot of times on the notion that the fed is there. Weve sort of known that the fed is there so its sort of i cant quite get my head around why we trade up every time on the same news that the fed is there. So, i mean, i dont know what to do, like, in a market like today. I think the infrastructure is kind of new, and so, it makes sense to me that those stocks would react particularly strongly to that news. But overall, i mean, given the rally yesterday and this today, i dont really i dont understand its like the whole market now is one giant day trader i dont know i dont get it, to be honest the fed is there notion is interesting considering for certain programs it hasnt really spent all too much money at all for individual Corporate Bonds, it hasnt spent a dime yet for Corporate Bond etfs, its spent a pittance, basically pocket change in the sofa of the Federal Reserve front lobby, steve. I think they started today, though they might start today on the individual bonds i think yes. Okay. Grasso i think that, yes, the perception that they are there, to your point, and to karens point, they are actually buying now, so they will be there they will backstop it but if you look at the marketplace, whats the number one thing coronavirus. So, to me, its 70 therapy or vaccine, maybe 30 fed, and i think to karens point with the day trader, as long as things are Getting Better on the virus front, this market can move forward. People will spend money. But you need the virus front to subside. Weve seen states open up. We havent seen the taxing on hospitals that we saw in the beginning. If we dont see the taxing on hospitals, the market will continue to recover. The fed is there theyre not going anywhere no one will fail its not too big to fail its no one will fail. So, between those two things getting more positive, thats why the market can continue to grind higher, in my opinion. It is amazing, though, the mileage that we got out of dexamethasone and i dont want to pour water on this because this is very hopeful, especially for the sickest patients, but basically, tim, if you take a look at what its going to take to open or reopen the economy, i dont know if dexamethasone is it i mean, i dont know if knowing that you have a one out of eight chance if youre on a ventilator of being saved by taking this steroid, if thats going to get you to go out to a baseball game or a concert no, but i think you have to understand that reopening the economy, theres a lot of people out there that dont believe this is a problem for them theres a lot of people that actually think that they are looking at the numbers, theyre looking at percentages of flu deaths and theyre saying, you know, and im not here to qualify whats dangerous or not. Im just telling you that i think that reopening the economy, weve seen this on polls, weve seen this in terms of people flooding into casinos, the lack of social distancing, people that are saying theyre going to get on a flight earlier, so that, to me, is the concept of the economy i think everyone is rightly brought up the fact that retail sales may be just better because stimulus checks and theres a lot of liquidity flooding around so fundamentals versus liquidity. Remember what 500 billion of fed Balance Sheet did in the fall from october 3rd to the end of the year and even up until we ran into coronavirus, it led to a massive move in the market where fundamentals were very stretched, in my view. So i dont think theres any question that this is about fundamentals excuse me, about liquidity and that fundamentals people are very comfortable saying, ill wait until 2022. Thank you very much. I think we lost tims audio well work on that also pretty interesting guy, ill go to you since tim is frozen out of the conversation for now yeah, i caught most of it hes right its not about fundamentals. Hes been right all along. And you know what ill say is, in terms of the coronavirus, i mean, we havent talked about it yet, but beijing are closing down all their schools that doesnt seem particularly bullish to me. The situation between china and india doesnt seem particularly bullish to me. At a certain point, with theyre both our allies, the administrations going to have to say something, i would think. Thats not particularly encouraging. Retail sales, yeah, that was a big number, but look at it year over year. Its a funny thing about numbers. Year over year, youre down 6. 1 , so i get everything, and i understand that people want to be optimistic, but when you look at the headwinds out there, theyre still significant. I still think its all about, you know, steve said 70 30 coronavirus to the fed i can understand that. Personally, i would flip that around steve yeah, so, the well, two things without a therapy or without a vaccine, it didnt matter what the fed did in the past. The market sold off. Thats number one. Number two, if china is quarantining or pulling back 108 million people, thats a good thing. What was the major blowback originally when wuhan was the up roar it was that they didnt act quick enough or they were allowed to travel out of china so, i dont think youre going to see that again. This is not part two this is what we have learned from a couple of months ago. Thats really glass half full, steve. I mean, to take a look at beijing and think that, because the impact on the economy is the impact on the economy, whether or not you think its great that theyre being cautious or whatever else the reason is. I mean, if youre going to close down a city, the impact is the impact bottom line. Yeah, the impact is the impact, but as tim was just saying, were not floating on fundamentals were floating on a couple of months ago, we thought the end of the world was coming. Now, people are just happy that were starting to restart again, so i think we have to forget fundamentals and be lucky were where we are right now all right lets talk more about todays rally. Our next guest says thanks to the fed, he is officially out of the bear camp. Lets bring in jim bianco, president of Bianco Research what specifically about what the fed has said and or done that makes you think, you know what, its time to climb aboard the train . Well, theyve gone beyond just supplying liquidity that was the early part of the equation but lately, theyve now started in on market support but they started buying Corporate Bonds today. They announced it yesterday. They didnt need to do it. They did it to just show that they were serious about their intent, but the fact of the matter is, they have put a massive floor on this market, and you know whos noticed retail they have noticed it as well too. First you cut commissions to zero then you allow the purchase of less than one share. You get millions of accounts opened up, an explosion of trading in the market, and when you talk to them or read the reddit boards, the word fed always comes up that theyre not going to allow they are not going to allow the market to go down it wont go down then you get jay powell last week at his press conference, when hes asked if the markets overvalued, he didnt really answer the question, but the implication was, it doesnt matter were going to continue to do what were doing right now, and its becoming a force in the market that its going to go higher its not going to be this way forever but it is this way for right now and if you think the markets going to sell off soon, you have to find something that says its going to be so powerful to bring the market down that even the feds unlimited printing and the davie day trader crowd buying like mad is not going to be able to stop it its still going to fall thats a high hurdle to put on it right now youre saying put aside the fundamentals, you have to ride the liquidity train . If you want to go with the fundamentals, i think it was mentionedd mentioned earlier, theyre all overvalued theyre stretched, as guy said, to be, you know, simple about it, but theres nothing about this market that says its cheap, other than we make up new statistics, the twoyear forward or the threeyear forward implied earnings ratio, which never existed until 60 days ago but those are kind of madeup numbers but the traditional numbers say this is a very fully if not overvalued market it is about momentum, and it is about the fed supporting the market right now are you saying, jim, that the Retail Investors had enough power in this market to help this rally go higher, that its a big enough force in terms of dollar amount, that its actually impacting the move . Yes, i do think that thats the case, and im going to push back on what tim said last night after you talked to portnoy and that they do theres no statistics that we could trot out we can only go with anecdotes but the one closest statistics we can have is in the Options Market they break down trades by the size of the trade. Small trades of less than ten contracts or more have exploded in orders of magnitude in the Options Market many times before, higher than the previous peaks so much so that theyre powering the entire options volumes, overall volumes higher as well too. The number of trades of one contract in the Options Market is approaching 15 to 20 of all trades from practically nothing a year or two ago so, you could see it in the Options Market unfortunately, we dont have the similar statistics for the stock market, but we do know that theyre there, and prices set at the margin and they are the marginal buyer that is new to the market in the last several months so, youre on this trade, youre, you know, riding this rally, jim at what point do fundamentals enter the equation or do you think the feds Printing Press is Strong Enough to actually get us a bridge to the other side, so to speak, of this pandemic, in terms of businesses recovering and actually being able to give guidance and fundamental things that investors typically like to have in order to value stocks, and do you care about whether or not the fed is able to exit the trade, so to speak no, i care about all that and i do think there will be a reckoning somewhere down the line if my premise is right and this has gone beyond liquidity to price support, pushing the market higher, there will be a problem somewhere down the road. But not now. And the markets going higher. Yeah, at some point, when we are done reopening, ing, and weve reopened, ed, and we assess where were at and thats it, were done reopening, maybe theres a disappointment that sets in then at that point and that we realize were going to come up short but were not there now. Were not going to be there next week we still got the hope that things will be better next week, things will be better in two weeks because were going to continue to reopen more restaurants will be coming online more people will be able to do bigger gatherings as well, and the hope that things will continue to get better when we get to the point where we say, you know what, this is it, were done, were reopened, this is the economy we have, maybe at that point we come up short. I actually think we might. At that point, we might run into trouble. But like i said, thats a story for another day. For right now, this liquidity is whats really powering the market up. Jim, always great to speak with you thank you. Jim bianco, Bianco Research, and yes, again, dave portnoy makes it into the a block here lets talk about buying stocks on hope, karen does that work for you its sort of like buy the rumor, sell the news is what jim is saying buy the rumor of reopening being promising and sell the news of the actual reopened economy not doing as well, maybe, as we all hoped. Right and i guess, yeah, if we come up with a vaccine, then just sell everything right away. I dont get i mean, i understand what hes saying, that the fed is there, and i understand that that is putting a floor under the market, but i do think that i mean, look, you know, i dont know if we get to what happened at the cruise lines just a few a little while ago, you know, sort of a setback. So, im kind of afraid of that because i think things are so overvalued and are already pricing in such a vshaped recovery so, i definitely am not on hope and im definitely not trading bankrupt companies on hope i think thats just crazy. Yeah. Tim . Well, i think ive said liquidity is what its all about, so im not going to repeat that other than to say, theres different parts of the market that have responded more than others as a function of the retail investor. I dont think theres any disputing that but i also think that you have a crossasset kind of cyclical thing going on, so you have had this recovery and resource stocks youve had this recovery in banks. Youve had this recovery in industrials, and transports, that were two years into bear markets. So, thats part of whats extraordinary here, and thats i think thats, you know, thats the institutional community. It doesnt really matter, ultimately, and trying to determine i dont think we have statistics that are going to tell you what percentage of this came from robin hood and what percentage of it came from, you know, well, we have those but theyre not out there right now. The more important dynamic here is momentum, is that fundamentals dont matter, is that this is the same thing weve been doing since 2009. Weve had people come on our show and complain about fundamentals, saying they want to short it, the feds lit it al on fire when in fact, all thats happened over the last ten years is the market has responded to liquidity and it will continue to do that, so i agree with jim bianco and theres no disputing that all right, coming up, apple charging higher as the street crowns a new top bull. We will break down that big call but first, were all over the after hours action and oracle just reported results the call is now under way. Well bring you the trade. Welcome back to fast money. Weve gotten on earnings alert on oracle, smahares are moving lower. The call is under way. Lets get to josh lipton in San Francisco with all the details hey, josh. Reporter so, melissa, oracle reporting q4 results just want to dig into the segments here. Cloud services and license support, thats their biggest segment, 6. 85 billion, that was lighter than expected. That includes cloud revenue but also maintenance fees for Traditional Software cloud license and on premise license, about 2 billion in the quarter, also missed expectations thats license revenue for software that can be deployed in the companys own hardware or on hosted datacenters quote here thats interesting from oracles cfo, she says our overall business did remarkably well considering the pandemic, she says, but our results would have been even better except for customers, she says, in the hardesthit industries that we serve such as hospitality, retail, and transportation, postponing some of their purchases. Checked in quickly too with kirk over at evercor. He says, listen, obviously, revenue came in below expectations he did notice there was strength in cloud erp, so that would include Financial Management and supply Chain Software is what hes talking about there he wants to know what the company can do in terms of operating Income Growth and Free Cash Flow growth in fiscal 21, noting the Free Cash Flow growth was negative in fiscal 20 he has a neutral rating on the stock. I asked kirk why he remains on the sideline, he said the bottom line is, can oracle show more sustained Revenue Growth going forward, heading into this report, the stock had a nice bounce, up about 30 in the past three months so it was underperforming that broader tech sector. Melissa, back to you josh, thanks. We got to wonder if decline in license revenues and specifically cloud indicates that its losing market share to microsoft and amazon, guy. Yes and we talked about it last night, and if you look at the if you just want to go technical, look at the chart since july 2019. I think it was the 60 stock they have a series of lower highs, lower lows, thats not encouraging. You have no Revenue Growth, basically, over the last few years. It trades at a trump valuation because theres really no growth im not knocking oracle. I think theyre making the move. Theyre trying to make the transition to cloud, but theyre getting beat at it, and thats not particularly encouraging and i think you could call it a zero sum and i think you can point to microsoft like we did last night and to a certain extent amazon as well as the winners and oracle, not necessarily a loser but theyre definitely the an afterrunner as they used to say. Steve yeah, so, when you talk about cloud and licensing, its 80 of their revenue, so these guys were on premises, switching to the cloud. Theyre just late. Theyre lagging. They remind me of ibm. Ibm had to turn around the ship and really had a different path and i dont believe theyre capable of competing with amazon, up 42 year to date, or microsoft, up 24 year to date, against oracle, up 3 year to date even with that 30 recent rally, so i would stay other places besides here. All right coming up, just as the u. S. Expands its reopening program, a major setback in beijing could another lockdown in china hit stocks at home plus, were counting down to earnings from kroger, why options traders are betting this lbeacinwoo p. Is ready tpo wel bk t r sleep . Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. A lot goes through your mind. With fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. Thats the clarity you get with fidelity wealth management. And tailored recommendations. 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We are following a developing story out of china beijing hit with a second wave of the coronavirus the fresh outbreak exceeding 100 new cases and forcing authorities to close schools again and reinstate a citywide lockdown the news could have major impact on u. S. Companies with big exposure to china. Dom chu is over at the wall with the key names to watch melissa, its this worlds second biggest economy so they do a lot of business with American Companies and so we combed through annual reports and took a look at last year, which companies had what kind of exposure to those Sales Numbers in china these numbers do include sometimes china specifically or the Greater China region, which could include hong kong, macao, t taiwan and areas around them as well tiffany and company, we know theyre in the middle of a possible agreement to be merged with lvmh. They get 36 of their total revenue from china apple in the Greater China region, again, gets about 17 of their total revenues we know nike has a very large market in china. Roughly 16 of their business comes from china and that Greater China region there many Semiconductor Stocks make the list but micron is one of those headliners and then boeing, aerospace giant, we know that them and airbus do a lot of business there. Boeing gets about 7. 5 of their business there as well this is obviously an incomplete list but it gives you an idea, melissa, of the types of bigname companies in the United States that have a good amount of exposure to china well keep an eye on them just like we did during the trade war and trade negotiations over the last several years back over to you yep, its all the same basket of stocks. Dom, thank you so much we bring this up because were trading here in the United States as if its all over, right . But when you see lockdowns again in china and you got to wonder, is that going to impact the s p 500 companies here that were so dependent on growth in china weve seen this story again and again, tim dom mentioned the trade war, the initial wave of the coronavirus, and then possibly here yet again. Yeah, but i think when you ill talk about nike, which was one of the companies we got some of the first data points on china reopening. We were more, you know, glass half full, i know that terms been used already tonight so lets stay with it in terms of nike bringing back and getting back to its 70 of sales in china pretty quickly i think, you know, nike bulls will ultimately shrug their shoulders on downgrades that have been put into the stock and to be clear, global sales for nike are critical, although the u. S. Markets been the core of understanding where that company can rerate, but i think its the Digital Sales mix that gives people a lot of confidence in the stock and theyre getting closer to 50 50 on dtc and i think thats going to support nike im long the stock, full disclosure, but i would not be running on some weaker data points that i think are ones that were looking past anyway weaker data points being the lockdowns out of beijing so were trading on hope for china exposure as well this is happening around the world, karen can you wrap your head around that yeah. I mean, i accept that its happening. I just feel like, you know, how much do you pay for hope i feel like were paying a pretty full pricefor hope already. The alternative, though, which is why the fed is doing it, where else do you go so they said theyll be at zero for theyre not even thinking about thinking about it, so given that we dont have an alternative, this is the outcome that they want yeah. And guy, of course, we have mcdonalds trading higher today on stronger than expected u. S. Same store sales mcdonalds, of course, has a huge exposure to china so does starbucks. So does yum. Yeah. Well, as does starbucks. Its interesting you mentioned starbucks because i just had it up starbucks, you really got to close above 80 to take the next leg higher and i hear what youre saying about mcdonalds but i want to point one thing out. Sometimes an individual stock sort of can tell a story and you were away at this time but i remember it was march 18th and wynn resorts traded down to 35, closed at 43 and we were talking to brian that night and we said, if youre looking for a glimmer of hope, or green shoots, which is a term i hate, take a look at wynn resorts. If you look, thats been outpacing the market ever since until recently, when that stock topped out at 108 look at it now i think its trading below 90 so i think wynn sort of showed us the way in midmarch. Maybe wynn is showing us the way now in midjune. Its something i think the market should focus on because its a name we talk about a lot. Do you hate green shoots because, like, you hate happy humpday and gobble gobble . Or do you hate it like the concept of green shoots, you know, rays of sunshine, hope its the term that, you know, climbing a wall of worry, green shoots, happy hump day, how was your turkey day . Gobble, gobble new normal yeah i can go on. I mean, i could do an entire onehour show by myself on things that infuriate me you could do that at 6 00 p. M dont in the meantime, shares of norwegian cruise lines accelerating its losses in the afterhour session. The company canceling sailing through at least the end of september. Some voyages in new england and canada canceled through october. Shares of other cruise lines falling in simple. Steve grasso, you know, we had the green shoot of dexamethasone and all these stocks were higher on the session, and then we have this which just sort of, you know, squashes those green shoots this is going to be a tough one. Even though i think people will get on domestic flights, they will literally get on and hold their nose, you know, with a mask on their nose, theyll get on, theyll fly, two, three, four hours, and then theyll be outside some place in a state where things will be a lot better and maybe they could breathe. But i think its tough to look at the cruise line and think youve recovered very tough ive been on cruises i know you have as well. I think they will recover one day. But i think to you know, theyre all blanketed. Theyre all down 55 to 65 . So, its sort of, you got to wait until you get some traction this is one where you almost have to wait for a real credible therapy, a real credible vaccine, then theyre all going to rip so i think you could be nibbling and buying some now, but that return on investment might take a number of months, not a number of days. All right, coming up, two big calls in the tech space sending a pair of high flyers moving in opposite directions. Today well break down the trades and later, why working from home y ve genmahaiv a big boost from the slimdown stock. Weve got the details when fast money returns rilliant. The lexus nx experience the crossover in its most visionary form. Experience amazing at your lexus dealer. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Apple closing on records today with citi betting even more gains are ahead the firm increasing its price target to 400 a share citi analyst explained his call on cnbc earlier today. We think the number one reason to own apple right now is simply the second half of this year is going to be very exciting a lot of innovation. In fact, many people were concerned that coronavirus would slow down their innovation, and they wouldnt have a 5g product lineup. We have absolutely confidence that they will have 5g lineups in time for christmas and it will be big and a lot of people will want those. Shares also rallying after apple announced plans to reopen more than 70 u. S. Locations this week, so are you on board with this call on apple, tim . Yeah, i am. But i dont love apples valuation. I think its interesting were able to talk about innovation at apple again or the lack thereof hasnt been an issue for the valuation, lets be clear, we know its been about services. We know its been about the concept of 5g, but you know, im not sure how much innovation is ultimately really there. This has been about a company whos got this huge Capital Markets machine to buy back stock, to pay a decent dividend, to have a Balance Sheet thats pristine in a difficult environment and somehow to navigate very complicated political waters in china. So, i just i dont love the valuation at apple here but i look at the rest of the market i dont love the valuation of microsoft. 23 times forward has a 26 times, 27 Times Services multiple and a 16 times hardware multiple that 3 or 4 years ago would have been really tough to stomach. Its also interesting that it doesnt seem like theres any concern about this other story on apple today, which is the eu launching two formal probes into anticompetitive practices concerning apple pay and its app store, karen i dont know how you feel about the valuation, but some might say that it is priced for absolutely nothing to go wrong, and if they are found guilty in this investigation, thats 10 of annual revenues thats the fine. I think the market chose to completely ignore that these things take a lot of time to play out so i dont know, it seems like the markets pretty shortterm focused and thats a longerterm issue. But in terms of valuation, i read the piece one of the i think he wanted to sort of stake his claim as the high target on the street, so hes done that. I dont know if others will feel like, all right, theyve got to oneup him and do something north of where he is one of the things he cited, though, was that expectations are low. Not the stock doesnt its not trading like expect takes are low. I am long, though, so i am optimistic about 5g. But the other thing he talked about was getting to a 25 multiple, so some of the gain is from a multiple expansion, which, you know, tim was getting to that point. Its pricey. Again, i come to the, you know, i dont have another alternative. If i were to sell it, if i want to be long something else, i dont have a better alternative right now. All right, lets turn from a bull call in tech to a bearish one. Nvidia dropping after Morgan Stanley downgraded the stock, saying nvidia is a core holding but its current multiple could be a concern grasso, what are you seeing . Nvidias up 53 year to date. It controls 70 of the Gaming Market i havent even spoken about a. I. , we didnt even speak about robots, we didnt even speak about Driverless Cars on the internet of things this is a stock that you must own in your portfolio. You will there will be volatile times but if you look at the chart, straight up. Smoother than amd. They always compare it to amd. Amd is up 18 year to date against 53 for nvidia id rather stay with nvidia. Its not overbought on a relative strength index. I think you still have some time here and it controls the Gaming Market and it will control multiple other markets going forward. You know, grasso hasnt would you rathered himself this whole entire show. I will invoke the would you rather, as i should, rightfully, as the host of this program. Guy adami, nvidia or amd would you rather im glad youre invoking. Invoking is always a good thing. I would rather amd i think you get i think you have a little more beta at this point in amd i understand what Morgan Stanley is doing theyre taking the money off the table. I think they actually raised their price target to 380 might be mistaken. Its effectively where the stock is that last Earnings Report got the stock below 50, i think thats your buying opportunity so in the game of melissa lee directed would you rather, amd over nvidia. You dont need to intro it as that because it is that. Or at least it should be maybe not so much anymore all right, weve got a market flash. You know that freeze button, how do you think that freeze button works . Under the desk exactly. Zap. All right. Back to business here. Weve got a market flash on southwest. Phil lebeau has the story. Take a look at shares of southwest airlines, the company out with an announcement that it is going to be extending its guarantee of the middle seat remaining empty on all of its flights at least through september 30th thats not a surprise. That has been a popular policy with people as they have been booking flights. Theyre also announcing a fare sale to select destinations and like so many other airlines, reiterating its policy when it comes to face masks. Wear them if youre going to get on board melissa, well talk more about this tonight on the 7 00 show. This is a policy that should not be giving passengers any trouble. They know about it going in advance, and yet, a lot of them seem to not want to wear those masks. What are the consequences . Well talk about it tonight at 7 00 all right phil, thanks phil lebeau. Ill go to you, steve, since i froze you. I feel kind of bad about that, using my power to freeze you thank you but in terms of southwest, does this change the calculus . Because theyre doing this for a reason because maybe consumers arent willing to fly if there is somebody in the middle seat so theres sort of a tradeoff. Youre trading off the middle seat occupancy for a consumer who will fill the seats around that middle seat yeah, i think its a good policy and i just dont understand the person that doesnt want to wear a mask its a very selfish trait. Youre wearing that mask for both your protection and their protection, so when you look at southwest, going into corona and covid, southwest and delta had Investment Grade Balance Sheets. They were the only two out of the airlines that had Investment Grade Balance Sheets you can catch beta, im long spirit, thats where i look for beta, both up and down, to buy it and sell it, but these are names, southwest and delta are names are premium names in the space that are Core Holdings in many peoples portfolios. Tim yeah, i mean, weve heard from southwest, and weve heard some of their outlook just on their buying planes from boeing, and some assessment of where their schedule is going to kick up in july, so the good news is there, i agree on the Balance Sheet. When we went into this, it was always about measuring how many days, who could withstand, who could avoid dilutive equity issuance, a partnership with the government that nobody wants, so those are the two names in the Airline Space that make the most sense. All right coming up, a building boom infrastructure stocks jumping today on reports of a new spending bill out of the white house. Our traders will break down the names they like, plus options traders are eyeing kroger for a big breakout well tell you why can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back to fast money. Infrastructure stocks rallying today on reports that the Trump Administration is considering a new trillion dollar infrastructure plan. Karen, theres some names in here that you have owned on and off throughout the years which ones do you like now well, for me, United Rentals is really i mean, i liked it before this, and then this was always sort of, okay, this would be icing on the cake if we could actually get an infrastructure deal, and i actually think it is possible i do think theres some bipartisan support for it, so we need more stimulus so, i like it. I think it was in good shape going into this, and doing that the Balance Sheets in very good shape. They were doing well they had done an integration of an acquisition and also they were handling their expenses well, and so i think if we start to get some Revenue Growth, that would be a very good thing, and wed see some nice margin expansion, so i like it. Holding on to it the interesting thing about this infrastructure proposal is that its not just roads and bridges so you think of names like Vulcan Materials and United Rentals, caterpillar, all that, but also 5g. Thats an interesting addition to this. You could look at some of the Cell Tower Companies and whatnot. I actually think you look at some of the diversified miners and i would look at a bhp or rio and talk about back to the future stocks, these are companies that i think are very well exposed to what i think is going to be infrastructure spend around the world, and also, you know, the weaker dollar is very, very good for Commodity Prices and i think were going to continue to see pressure down on the dollar we almost broke through 96 a couple days ago. U. S. Steel, who doesnt have a good Balance Sheet, thats a terrible Balance Sheet, and its a leverage story, but in a world where the fed is there to protect almost everybody, i think thats one of the reasons why Something Like u. S. Steel is also breaking out. Look at that chart, a name ive traded it well, ive traded it poorly, but i think this is an opportunity to see more momentum there. Guy well, i mean, im wearing the Debbie Downer hat, clearly, but in this environment, i have more chance of playing shortstop for the yankees than an infrastructure bill getting passed even, i think, some hawkish some of the fiscal hawk republicans wouldnt go through with it, so i just dont see it happening. I mean, i understand why these stocks bounced on it, but a name like caterpillar, which has been grim death for the last couple years, every rally in that stock has been a selling opportunity my sense is its the same thing now. Grasso, whats your take . When i look at that, ill keep it back to the uri. Uri is down 4 year to date. Its not overbought in the latest rally i like that name ive been in and out of it over the years. Caterpillar is down 12 year to date that one is not overbought either these are the names that you think about as far as infrastructure plays, but a name that never comes up, its a smaller market cap, tex, that ones down 34 year to date. I think that one, if you start to see any traction behind this infrastructure deal, and i agree with guy, i dont think its going to get done, but i think the more you hear the headlines, it could be a name that could pop aggressively to the upside, tex. Coming up hey, mel . Tim can you just tell guy that Yankees Stadium got downgraded by moodys stay. Didnt citi field get downgraded before . Thats not important. Today was yankee stadiums day okay. All right. Okay were going to break here. Check out todays big surge in Weight Watchers well tell you whats got investors piling into the name jim cramer sits down with the ceos of mcdonalds and Canopy Growth on mad money. In the meantime, more fast money right after this. Im searching for info on options trading, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now, youre binge learning. For a limited time, get up to 800 when you open and fund an account. Call 8663009417 or visit tdameritrade. Com learn. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Tasnhu lets you transfer prup to 90 creditsnsultant [announcer] if youve tried college but never finished, toward your bachelors degree. [woman] it doesnt matter how old you are, you can do it. You can finish. [announcer] finish your degree at snhu. Edu. Welcome back to fast money. Well get another read on the American Consumer when kroger reports earnings later this week the grocery chain is up 35 this year and options traders are betting the stock could move higher on results. Mike khouw has the action. So, melissa, kroger traded well above average volume today, more than two times daily average options volume, in fact and right now the Options Market is implying a move of more than 8. 7 after they report earnings later this week, thats substantially higher than the 5. 8 that they have historically averaged in the june 33 1 2 calls, the buyers were paying just under 90 cents so they were making a bet that costs a little less than 3 of the current stock price that it would rise at least 5. 8 and some of that may be fueled by some bullish comments that came out of jeffries analyst that was expecting eps to beat the consensus by 50 if they achieve those kind of results, a move to the upside of that magnitude is possible theres this whole element of the stayathome trade, you know, people are cooking, theyre not eating out, blah, blah, blah supermarkets should benefit. Is this one that you stick with, though yeah, i do. The best thing thats come out of cincinnati since johnny bench is kroger. A valuation is reasonable. Im with mike here and i happen to have some chicken mayrinating right now, that postshow, im going to throw on the old grill. Soi like my grill and i like kroger so there you go. The more you know by the way, we said kroger is up 35 this year its up 13 this year. Not too bad, still mike khouw with the options action. Tune into the full show friday Weight Watchers topping the tape w we will reveal whats got the stock ripping higher when fast money returns like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. Welcome back to fast money. Big interview tomorrow, mary barra will be on squawk box. Shares of ww meantime topping the tape today the parent company, Weight Watchers, reporting a big jump in digital subscription growth during the coronavirus lockdown. Karen, you got some thoughts this is a huge pop here, 19 right i think Mindy Grossman was presenting it. I feel really dumb, having seen match yub b matchup big numbers, people want a digital place to socialize, and this sort of gives them that as well as, you know, they talk about a wellness ecosystem but i think as you and i talked about before, i think this lockdown has sort of created a whole bunch of potential new customers who are looking to lose weight so i think some of their Digital Offering is more flexible than prior plans so i think theyre doing a good job and i missed it again. Having missed this one when oprah signed on was one of my bigger misses ever and im still kind of bitter over it, but i wish them well i think Mindy Grossman is a great ceo. I think its interesting because the stayathome trades are peloton people are riding the peloton all day, losing weight with Weight Watchers or eating comfort food and Binge Watching on netflix. I dont know what to make of this, steve grasso i like a little insight into you that your comfort food is v velvetta thats impressive. When you look at Something Like Weight Watchers, theres so much competition, and i think it stands a pop like this that you see in the stock can mean that it was just poor positioning going into this headline i think that people are craving some digital appetite for exercise and doing something to karens point in Group Sessions that they cant otherwise get in their normal life right now. Id be a seller on the pop, though i think theres a lot better competition out there now, and theyre a dime a dozen, to be quite frank. Theyre all over the map theyre all over youtube you dont have to pay for it anymore. So, id be a seller in this rally. Guy weve first of all, are the now im going to get atd by velveeta, but are the ingredients in velveeta found in nature i bought velveeta for the first time three months ago. The shelf life is forever. Literally. Its forever you read the expiration date, its years from now and you stick it on the shelf, no refrigeration, nothing so is the shelf life for cockroaches. Anyway, back to the trade, guy. Nice laugh track. You dont find that at all problematic . Im going to sell would you rather i would much rather peloton here, i think at an alltime high than Weight Watchers. I dig Weight Watchers. Its an extraordinarily strong stock. Lets go around the horn for a final trade. We talked a little bit about the infrastructure trade i do think bhp is a diversified global miner all right, we lost tims audio. Bhp is his trade karen. Yeah, target. Its off the highs its got growth. We like to talk about with kroger if theres a hiccup, it will be fine in an up market, it will be okay lot of ways to win here. Steve tiffanys, that original takeout number was 120, its spiked up there in october 2019. Trade it around there. Below it, you buy it, above it, you sell it. Trade it guy i think tim should switch to 6g and i like my kroger. Thanks for watching fast. See you lack at 5 00 mad money with jim cramer starts right now. Jim cramer starts right now 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 crcramerica other people want to headache make friends, want to make you money. Call me or tweet me jim