Transcripts For CNBC Fast Money 20240712

The nasdaq pulling away from alltime highs, the apple one of the five big stocks posting a gain today but while big tech tumbled, the rest of the market was better. The s p 500 less than a percent away from a new alltime high and energy and industrials leading the way. So todays market action, is it a sign florithat the great rota is in place. Guy . It would appear that way. And happy monday and i took french in high school and this move was as we used to say [ speaking Foreign Language we get what youre saying. That is what i said at any rate, it is a pretty and kudos to tim and karen theyve been talking about the transportations for a while in terms of the stocks, look at the move in caterpillar today, a few weeks ago you played trade it or fade it with karen and boeing was 195 and she correctly said to fade it and we talk about how it would trade down to 160 or so and it overshot down at 154. But look at it today, approaching 180. So i think this is a healthy thing. I think those nasdaq names had a cooloff. And the fact that these industrials deep cyclicals and even the banchs amanks are star move, it is encouraging. And karen, you said that the risk to the market of finding a vaccine sooner and it is that risk that would actually make this rotation even stronger. Right well, weve seen this happen a couple of times and it is sort of false starts. But were starting to see data that, while it is not good, in terms of florida and texas and california, it is better so the rate of change is improving. So that is something i think the market wants to sort of grab on to that and then obviously the hope of a vaccine. And so i think this rotation, i mean, we saw the mother of all work from home stocks zoom which was down today so the names like asquare and the paypal and those names all week long with the big faangs or dans maga and the rotation which retail was really good and that is unusual banks werent as good as i had hoped. It is a nice bounce but they have so far to go as a catchup trade. I think there is more to go there. And guy touched on fedex and ups, i mean there was a big upgrade in fedex but that stock is up well over, well over 100 from the bottom which is kind of crazy so im long fedex but i think this move, the last two days which is about maybe almost 30 points, is probably a little bit over done and the airlines today up huge as well. That one, i wouldnt jump on that bandwagon im staying on fedex even though it is getting rich but im still afraid of the airlines whether you include the debt, the risk reward isnt compelling to me so i think i like the rotation but there is more to come. For fedex and ups there was news and tim youve been hot on the ups trade in terms of aggressive pricing because of the pandemic is causing everything to move think fedex and ups and theyre going to say, were going to charge holiday rates for this and that really adds to the fund ale ales i guess the question is to what point and at what point does this start getting expensive well, i think there is still plenty of room to run on shippers and you talk about the mix also that was more of a retail mix that people thought would be negative for ups and we saw that b to c mix is working in the favor where has this rotation been is it on again is this rotation has, to me, been pretty clear since mid may, and there have been some steps back along the way but it is largely two steps forward. And if you look at the industrials theyve outperformed the nasdaq during that point and when you look at spl of the numbers and fedex as karen pointed out, has outperformed 53 since the same period and if you look at the moves, having come with this think of the earnings that we had in the top of the food chain of the nasdaq two weeks ago and yet youre seeing this performance. If you look at the srt against the s p or the nasdaq and it is outperformed for a long time and retail was supposed to be dead so i dont think the rallies started overnight. And weve spent a lot of time talking about that bridge, that divide, that chasm between growth and value how excited do you get hard to get real excited except for the fact that the multiples should be getting pulled up by what is going on in the rest of the market, not pushed down. With pmi only bottomed in my view, i think you could stay here. Dan i mean the multiples have hold up. Were expecting considerable yearoveryear earning declines and next year will be up yearoveryear but still well below 2019 we dont get to s p peak earnings until 2022. So when you think back to 2019 where the s p 500 appreciated 30 , this year we have material earnings declines and you have a very expensive market on almost every metric you could think of. And when you think about the nasdaq, that he talk about how good the stocks were, theyve done a ton of heavy lifting. Apple is the one that is really curious to me here, the nasdaq 100 felt like it was going to get sloppy this morning but apple is levitating here at 450 people are excited about a four for one stock split. Is this like 1999, people, come on, seriously. I dont get it this stock is hovering just below 2 trillion in market cap, up almost a trillion dollars in market cap from the march lows and this is the thing that is keeping the nasdaq 100 together right now. And listen, the rotation that these guys are talking about, in retail, in industrials, in small caps, in bank stocks, even in energy, is nothing short of impressive with the s p 500 just below the alltime highs so you would like to see the action if you think the s p 500 is building for a breakout because it is not mega cap tech that breaks the s p 500 when you consider how they performed and the inability for the s p 500 to break out. So maybe the best thing for s p bulge right now is that you continue to see the rotation and you continue to see the market trading in a range and then when you get the news on the economy that is based on therapies or based on vaccines, that is when you have the s p 500 finally break out. At the same time, could you make the argument within this value rotation, karen, there are certain big cap tech stocks that fall into this category. And ill throw it out there, dan mentioned apple but maybe the most recent Earnings Report tells you that perhaps apple needs to be rerated and right now is a value stock and falls into that category and so is seeing the benefits ever a rotation, even though it is lumped into the big cap tech monolith well, i guess relative to some of the other i mean, the pe relative to an amazon it is vastly similar but to me the cheapest one of all is facebook. An it is not just a relative cheap. It is cheap to the much broughter s p market so i think even for me right now i feel like the biggest threat to my facebook position is a rotation away from these kind of names. An that is okay. Ill wait. That business is so extraordinary, those numbers were so good, i think even apples numbers were really impressive as well but we struggle with the multiple it is a Hardware Company and what kind of multiple should have it versus the services company. I get that it is a blended one that is moving in the right direction. But it is still seems more expensive to me than facebook. But im long facebook, airplane, google, microsoft, all of them if there is a rotation out, that part of my portfolio is going to hurt. Our next guest is telling his clients to brace for a pullback. Lets bring in Julian Emanuel at btig great to you see what is going to trigger the correction in the nasdaq there are a number of things. First off, weve gotten a loto questions over the last week or two, is this a bubble, is this not a bubble what i would first say is valuation wise it is not a bubble and when you look at the nasdaq and look at faang in particular, what you see is the kind of Earnings Growth and momentum and Free Cash Flow that would lead you to indicate that it isnt a bubble but however, what youve got now is a record concentration in five names and if you look at today, the nasdaq five was really the nasdaq one. But 23 of the weight of the s p 500 index when momentum in those names has clearly slowed, we do think continued tension with china is the most likely catalyst for a pullback in those names. Julien, i know this is nasdaq specific, but in terms of the s p 500, you say it is not a bubble obviously everybody is entitled to their opinion but one thing i would point out in terms of market cap to gdp, youre talking about between 165 and 170 to gdp and the numerators continues to go higher and the denominator, which is gdp continues to go slower and how sustainable is that. That is the one thing Warren Buffett looked at as his indication of where the market is. There is no question that is a concern. And obviously when you think about the sort of the economic back drop, it makes it even more important that the reopening of the economy that were expecting in the fall and going into early next year, is a success. And clearly a lot of the stocks and particularly in recent days the value fames are starting to reflect the greater probability of that as a success i think that is still to be seen and i think obviously one of the issues surrounding all of these questions is where stimulus negotiations go. From our point of view, the belief that people had week ago, that you were going to get a package before the september jobs report, on the 4th of vept september of a trillion to a trillion and a half, we think the market Still Believes that and well just have to see but again, the threat to the economy, to the down side, certainly does stress that relationship hey, julien, it is tim. When we were younger men, yes, that is right, we both invested into the commodity and the resources space and emerging markets. If anything were starting to see some pronounced breaking out of some of those resource stocks with global Commodity Exposure and some is dollar bases and some is pmi and some is stimulus what do you do with this trade and i feel like weve seen this movie before and it is a pretty good movie. So, i think you hold on it for the longterm because ultimately a weaker dollar is part and parcel of a recovering Global Economy however, what i would say is that particularly as surrounds the stimulus negotiations, there is this sort of idea that politicians surprisingly dont want to spend infinitely and that is obviously a lot of the pushback of the last several days so from our point of view, when you look at record bearish positioning in the dollar, we think you get a rally and we dont think it is a coincidence that the dollar was stronger whether gold was choppy. But longterm you want to stay with that theme. Julie and, how much longer, it sounds like not much longer, but there is this notion there is no alternative and karen has mentioned this regarding her own portfolio. But if youre saying there is a pullback and youre recommending that people brace for this, were basically saying that the liquidity train of the fed cant keep this market going higher. Is that your belief . That is correct, melissa. Basically, if you think about what the fed has done, they have basically engineered liquidity, but to move from liquidity to sol solvency, that requires an economic rebound that is only showing tentative signs of occurring, that is the story for how the economy is hopefully going to unfold in the next year and that is what keeps stocks moving forward but the fed, the fed hasnt run out of bullets it is just the effectiveness of the bullets is likely diminishing while we wait for the economy to turn higher julien, great to speak with you. Thank you. Thank you. If you missed the march back toward alltime highs, fear not, the chart master is here with catchup trades. Carter braxton worth, what are you looking at. You bet i have three stocks. Here is the thing. Each is up 100 off the march low. That is double the s p so are they laggards or leaders . It all depends on what youre time frame is. Lets start with a few charts. The first is haines brand. Under wear and tshirt it is a long term established down trend and then again it was 7 at its low and almost 16 it is trouncing the s p. Of course it is laggard because if youre down 30 over a twoyear basis and the market is close to alltime highs, youre lagging. So this is the kind of thing that were looking for something that is behaved aggressively but most importantly broken above the down trend line in effect for the past two to three years. Look at the next one, dupont, it is the exact same circumstance and the kakt same move off the low. It was 28 and here at 58 100 move, twice the performance of the s p, is it a leader well it is for the bounce. But it is a laggard if youre still down 30 , 40 over a two or threeyear period this is what a catchup trade could look like. And final one, look at stld. A steel stock. It is the exact same circumstance again and there are many like this the key is that theyre laggards because theyre down still 30 and 40 plus from the highs of two or three years ago but the daytoday and since the march low performance is aggressive an even juan was very big today relative to the market and the fourth chart, a comparative chart, take a look at all three, they look like railroad tracks. I didnt overlay it or manipulate it, it is what it is. And they have nothing to do with each other it is not about that i could throw a certain tech names in here as well. And then the final chart, it is the same comparative chart of these three stocks, but shows, of course, the s p 500 so here on a twoyear basis these are tremendous laggards that are killing the markets since the march low and are killing the market today more to come to the upside for each of these and there are others carter, thank you, as always. Guy adami, which of these three do you like . You know, i mean because youre in my head. Hanes brands. Of course and why of course. Because it is of course because that is why. Because youre a Steel Dynamics guy and karen can whack up dupont. You got me. The operating margins came in at 17. 4 i mention that because the street was looking at operating margins of about 3. 5 . They crushed it which means theyll have to raise the price targets and bank of america recent upgraded it and i think to carters point despite that it is has moved significantly, there is more room to the upside. Coming up, a ride share ruling what has lyft and uber on the move and kodak plunging as a massive government loan is put on pause. We have the full details when fast money returns you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Welcome back to fast money. We have a market flash on bed, bath beyond. Falling more than 3. 5 after they will resume the plans to reduce the debt. The company had suspended the Debt Reduction plans because of the pandemic and now will buy up to 300 million of certain outstanding senior notes the tender offers have been put in place and they will expire on september 4th. Again bed, bath and beyond will reduce debt starting today and has planned to buy up to 300,000 of senior notes shares falling 3. 5 after hours. Karen, what do you make of this news . That sounds like sort of a good thing to me i dont know if there was something more to it that they feel like theyre in a Capital Position to buy back debt which must be expensive in that the yield is high, and they feel like they could do it, i think that sounds like a positive. Well keep watching and mean wlooiwhile, uber at on the move following a California Court ruling. Diedra has the latest. Reporter so the courts ruling is stayed for ten days to allow uber and lyft to appeal but it would force them to immediately reclassify drivers as employees in california in a statement, uber said, quote, when over 3 million californians are without a job, our elected leaders should be focused on creating work, not trying to shut down an entire industry during an economic depression lyft, for its part, said, quote, drivers do not want to be employees, full stop well immediately appeal this ruling and continue to fight for their independence now if the appeal is not granted and there is no further stay, there is a chance that uber and lyft could shut down the apps entirely in california uber, keep many mind, has over 100,000 drivers and bringing them on as employees im told is nearly impossible. Now the other option is they continue to operate and risk more legal liability as you were saying, shares of uber and lyft are down 1. 5 and 2. 5 respectively in after hours. Regulatory pressures had been building but this is a key battle in one of the most important markets as other states from new york to illinois to massachusetts are looking at similar legislation. And to be cheer, this doesnt just affect ride sharing, theyre pivoting toward food delivery and the classification of those drivers are in the air too. I would think that the stocks would be down even more if this is seen as a true threat to the business particularly for uber. Yeah, i think they said it, the expectation was the outdock, we know that dara, the ceo was penning an oped, making a lot of the points that diedra just mentioned. There isnt a heck of the evidence that they want to be full Time Employees. They like driving for lyft and uber and caviar here and it is interesting to see what happens. Ill mention with lyft, theyre going to report in a couple of days after the close after we saw ubers 75 yearoveryear decline in ride bookings, this is important for lyft theyre only north american ride share. That is why this issue in california is probably more significant to them. But ill just mention this at 7. 5 billion enterprise value, lyft is way too cheap of an asset even with all of the losses they have right now ride sharing, whether these gig economy workers are employees or not, is here to stay and if google wants fitbit tor 2 billion for their data, somebody certainly wants lyft. I would think that the drivers and during a time of pandemic want a job. Whether it be classified as a contractor or full Time Employee im sure theyre not that picky at this point, tim. I think there is a lot of folks that enjoy being an independent contractor and giving them flexibility of how they live their days and deal with their families and what they could do but from a tax perspective. So i agree with what dan is saying and there is a lot of guys that work for multiple Ride Share Companies and would also agree if you want to hail a cab, good luck it is not happening. And ride share is here and there is arguments that this did not do good things for pricing for people around the country but the reality is i dont love uber, but i look at the chart and yes, theyve had about a 15, 12 , 13 pull back since the numbers but at the bottom of the range around 33, this is a stock that takes you back to a level where it found support and youve priced in a lot of bad news. This gives them 37 essentially of delivery of the food business and i think it is something that ultimately allows them to leverage their platform. Dont love the stock but there is a lot of bad funews and most has been priced in. Coming up, one mans trash is another mans treasure and later were kicking off the cannabis craze well break down the big risks and opportunities in this budding industry much more fast money after this quick break is the fastest 5g in the world,d with speeds up to 25 times todays 4g networks. Its massive capacity and ultralow lag time is already available in parts of select cities around the country. Which means businesses both large and small can innovate like never before. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Welcome back to fast money. Shares of nikola surging today they will provide 2500 electric garbage trucks joining us now is the founder trevor milton. Great to have you with us. Thanks for having me. You tweeted today that this is a contract that is worth 1 to 2 billion and nonbinding. What exactly does that mean and how do you come up with the 1 billion to 2 billion figure. It is binding it is a fully executed contract, worth between 1 billion and 2 billion they have the right or their obligated to buy up to 2500 of these electric trash trucks and theyve the option to go up to 5,000. So it depends on how many they end up picking up but the agreement is for 2500 trucks which is the biggest order in history. So a minimum of 2500 trucks and the value of the contract is 1 billion to 2 billion how much is republic actually paying for these trucks . It really depends our goal is under 500,000 a piece. The important thing is know is in the trash industry you have a chasy and tractor and compactor. And that is what nikola is doing for the first time, were providing a complete rl vehicle to republic where they dont have to go to three different people for three Different Things so it is everything all in one. So in terms of what theyre paying, we dont really know that figure yet . It will be under 500,000 we dont have the exact number yet. Its it depends on options. Were working together to finalize the options on that track. I would imagine in the next six months or so well have the final number it is within a few percent that is why i said below 500,000 because that is what the electric trash trucks are going for on the market right now and the first time theyve ever been mass produced. One interesting to thing to know is this used our nikola trade platform from europe we delicted a fully electric truck called the nikola tray and that is going on this trash truck. So the good news is it doesnt require any new development, it is just an awesome new contract for the nikola. The way the republic is billing this as a partnership. So im wondering what role republic will play in this and why is it consider the a partnership instead of an outright purchase of the vehicles. It is a good question because in the refuge industry, you have a classy, and have a body and then the powertrain they come from three different people right now separately around the country. And it is a huge problem because everyone points fingers at each other for the all of the problem and that is where well provide all of it straight from nikola the partnership is theyll help us integrate the correct body into the chassis with the powertrain and make sure the cab is perfect, all of the controls are perfect. It is really about for the tirs time delivering a truck completely done that is not just cobbled together from all of the different suppliers which is what everyone does right now. Youre expected to begin full production and delivery in 2023. Do you have enough production for that ramp. We have over 500 million in cash we have 200 million spent here on the factory in coolidge, arizona. So we do have enough cash but as we said in the filing, well go out to the market one day for additional revenue but that is additional funding, but that is ultimately once weve achieved certain bench marks where the market is very solid and willing to back us in that regard but were doing pretty good right now. 900 million on the balance sheet. Trevor, i want to ask you about the most recent quarterly results. There is an article that the next day pointing out that within the filing, and this is in the filing with the s. E. C. , the 10q, the 36,000 in revenue was from the insulation of solar, the Services Provided and in it was insulation for you as executive chairman and im wondering, well, must be in a nice installation that you have at your home, for one. And when is this i didnt even realize that this Energy Business was anything contributing at all to your company. Do you foresee that still helping in the future . Well, it is not really helping anything were now it is i mean it is your only revenue right now. Yeah. But were prerevenue. And everybody knew our first year would be prerevenue i called our solar guys and said look put this on my house and i had to pay full retail and i want to go zero emission and i dont want to use the energy from the grid if i dont have to so they came in and put it on. I have to log it because it is a related party transaction. But ultimately the thing is that Solar Division exists because it helps build our hydrogen stations so it is not a very big team but they handle everything for our hydrogen stations an i had them put it up in my house. But it is zero revenue because were a prerevenue company because next year were starting full production. Congratulations on the deal that is fantastic. I want to take you back to july 17th, friday after 5 00 and your stock saw a precipitous drop it was an expected registration from your company but the market perceived it as a 24 million share secondary and there was some confusion im not suggesting we added to it didnt but i know it traded lower before we started talking about. So there was some misconception. And my question is could the company have done a better job telegraphing what came out late on a friday afternoon in a summer. Ive learned a lot of lesson lessons, you dont know how the market will take anything. People would be following it for everybody to know. But that is our responsibility to communicate better. Youre not putting out any filing unless i could explain it to the market. It was only the warrants and what the pipe had already bought so it was not a new issuance but it is nobody fault but mine. It is my job to explain it and it is my fault for that. Trevor, we hope youll join us sometime soon to keep us updates on nikola. It is a pleasure speaking to you. Great day. Karen, what do you think of the orders they had a order from anheuserbusch and this is another one from republic. But again, prerevenue. Prerevenue, but theyre giving us a treasure map to follow of if this is a one to two billion dollars deal, that is impressive. I would think that they probably are working on others as well. And weve seen from tesla, the market gives credit for revenue well before it gives credit for cash flow and earnings i just want to say one thing, i loved his answer to guys question, it was pretty straightforward and he said it was his fault. That is a pretty good answer so i dont know. Im impressed with this deal good for them. Im interested to see what else they come out with, clearly in valuation, it is not my kind of thing. Coming up, over exposed. Kodak loan is in jeopardy. And well bring you the trade on tiktok when fast money returns. [announcer] if youve tried college but never finished, snhu lets you transfer up to 90 credits 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. Check out Eastman Kodak shares plunging 30 white house will not proceed with the 765 million federal loan to help the Company Start manufacturing ingredients for drugs unless executive ready cleared from allegations of insider trading. Loyal fast money viewers know weve been all over the story from the very start. Shares started riding before official news of a deal broke almost two weeks ago at one point shares were up nearly 2200 . The stock has since come crashing back down and still trading above where the loan was first announced. The day of the news, including the size of the transaction, guy, seven times the companys market cap prior to the unusual trading. The unusual trading spikes the day before the deal was announced and a month before the day was announced. But the order of magnitude of at least ten times. What do you make of this story, because this was a very popular stock on robin hood. People got caught up in the seesaw, in the whipsaw of this trade . And i hope we werent part of that people getting caught up. Because we tried to speak truth to what appeared to be just complete nonsense in terms of what was going on. Again, just to bring you back, the amount of volume that traded the day prior to this being announced was aft rstronomical,t least of which it didnt get us to the threshold of a market cap that we talk about with companies. Because we try not to talk about things that are less than 500 million worth of market cap and kodak hadnt about that for years and it hadnt been relevant for years so for all of us on the desk, that day and the ensuing daying it didnt pass the sniff test. And the optics were horrible and i think this story gets worse before it gets better. And this is not going away and i dont know what that means for the share price. Im not making a buy or sell call, but im saying that the headlines are going to continue to come out and without question as the summer continues. Tim just follow the stock chart, look at the volume and the day of the announcement and the day before none of this smells good think about a company that is struggled to reinvent itself since the bankruptcy and a foray into crypto madness and the states right now in the business of providing some of the core nonbiological pharma input materials that actually at least were part of this loan between the dfc and the dpa new act. It is hard to understand why Eastman Kodak, if that is what theyre still it is kodak, why this former iconic american brand that hadnt been such for years and years was chosen as the one to get it. But again, it is the option activity it is the options that were granted the day before a big release. It is the options that were granted and shielded from the executive chairman and there is a lot of of transparency and things dont make sense in terms of the fundamentals and weve seen a lot of Companies Like this during the run of the market. Coming up, the cannabis craze and the Marijuana Industry and a big earnings day till ray reporting moments ago and canopy soaring and well give you the lowdown on the state of the cannabis industry and as we head to break, it is not too late to register for the wednesday Virtual Summit it is all about providing Small Business owners the resources needed to survive todays crisis and mapping out a path forward to thrive tomorrow go to cnbc. Com events to register fast money will be back after this you may be learning about, medicare and supplemental insurance. Medicare is great, but it doesnt cover everything. Only about 80 of your part b medicare costs. A Medicare Supplement Insurance Plan may help cover some of the rest. Learn how an aarp Medicare Supplement Insurance Plan, insured by Unitedhealthcare Insurance Company might be the right choice for you. A free decision guide is a great place to start. Call today to request yours. So what makes an aarp Medicare Supplement plan unique . These are the only Medicare Supplement plans endorsed by aarp because they meet aarps high standards of quality and service. Youre also getting the great features that any Medicare Supplement plan provides. You may choose any doctor that accepts medicare patients. You can even visit a specialist. With this type of plan there are no networks or referrals needed. Also, a Medicare Supplement plan. Goes with you when you travel anywhere in the u. S. Call today for a free guide. Welcome back to fast money. It a tale of two pot stocks. Shares of till ray on an earning miss, an opposite of canopy, that stock soaring after the Company Reported better than expected results and with these two earning results we want to kick off a special week on fast money. Weed week. The cannabis craze all week long were doing a deep dive into the Key Companies at play and the opportunities nor new investors and what is best for this space and tim seymour is our Portfolio Manager of an etf and you could see all of the disclosures at fast. Cnbc. Com. Give us a low down on the trade. Lets look at context of a couple of charts because it helps explain, and look at canopy, those were good numbers on a relative basis. Better revenue david klein the new ceo came over and has done a great job and great leadership there but if you look at the chart, it is a five year chart and gets through to a blowoff top when consolation brands came in and then a massive pull back it has been violent. And till ray was the poster child and maybe it wasnt their fault, both Canadian Companies listed in the u. S. Meant they could get the capital where the u. S. Companies couldnt. Lets bring up cura leaf, one of the big four, big four, im referring to cura leaf, im referring to gti, im referring to cressco labs and true leaf. Well have two ceos later on in the week but look at this chart over the last five months it is up 200 and if you look at the charts of some of the other u. S. Players and those big four and theyre up an average of the whole group about 40 . Whereas the same canadian names are down 30 the separation between the u. S. And canada is extraordinary. So lets keep moving and what is the current state of flai pla of play cura leaf, if you think about the other big companies, i caught up with Charlie Bechtel and we talked about because of covid and groundwork, theyve increased thur production and cultivation six times in illinois this is one of the most profitable in the union. Up yearoveryear. The u. S. Market that everyone is so excited about it really executing on all of the numbers. And if you think about what is changed in the last 18 months, i would say Bad Companies that were part of the first rally are out of business. I mean, Companies Like mad men is a company that is struggling right now. The next, lets talk about catalyst because the most important thing right now are two things one, federal legislation, may or nay not be happening when i was talking to Charlie Bechtel he said the conversation in washington right now is going on behind doors that it has never been behind before were going to get some change but it is not critical for this industry to continue with the other catalyst which is all of the big four reporting in the next two weeks it is profitability. And that is something that is been unheard of it in this industry were talking about cash and ebidta operators that are distancing themselves from the pack that is the current lay of the land tim, it seems like this is closer than people realize i think this is pretty bipartisan, maybe im wrong. But i think by the november elections, we could have a much different landscape for this entire industry, does that make sense . I think it is i think if you ask the companies themselves, they put their heads down and the good ones have operated in a Challenging Market but state by state were seeing that process and the process where more states are coming online i think there will be federal adjustments, whatever that means, and it could mean a meryad of things, it is surrounding criminal justice and social issues. But yes, there is good news and you dont need a blue wave in the fall if you got that, that would be very good for cannabis. Hi, tim in terms of catalysts, you talked about a couple. But do you think well see more of the constellation type of deals that started the frenzy in the space a couple of years ago . It is a good question because youre right, that was part of the friendy. You had alt ruia and they have waiting around they will be in this space. Good kickoff to cannabis week all week long were looking at this industry. Coming up, tiktok and twitter could be irptsed and our traders give us their opinion. And coming up, mad money at 6 00 p. M. , meantime, fast money is back after this. [narrator] at Southern New Hampshire university, 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. Our Retirement Plan with voya gives us confidence. Yeah, they help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Puts its customers a wiin charge . Rier well, the good news gets shared. And it gets rated 1 for customer satisfaction. But dont just take our word for it. Take theirs. Its your wireless. Your rules. Only with xfinity mobile. Call, click or visit a store today. Welcome back to fast money. The latest in the saga over tiktok new reports that twitter has held talks with the social sharing app over potential deal this coming after microsoft confirmed it is in talks for the u. S. Operations. So what could that mean for twitter. Mike khouw has the options action. Where you have this kind of speculation, obviously that tends to propel options. We saw more than double the average daily call volume, 160,000 were short dated the 38, 39 and 40 strike calls going out to august expiration two weeks from this coming friday. Buyers of the 40 calls were paying 75 cents, that is a bet that the stock rised by 8. 5 but and options prices are relatively cheap for twitter and where it is 40 it has fallen sharply right after and this is a way to speculate on but not risk a great deal. Dan, what do you make of the stock . Twitters market cap is much smaller than the valuation so it would need a partner. Make that partner would be microsoft. You saw bill gates who is no longer a board member of microsoft say that he called tiktok a poison chalice, but maybe theyve put up a bunch of money and they own a stake of twitter and tiktok that might make more sense, how to deploy the capital and have the leg into this deal listen, i dont think a deal will get done for tiktok i think theyll do their best to wait this out and see what happens in our elections im not a fan of trying to use the same tactics that they do to force transfer to get them to amend the behavior i dont think this deal will get done. Tune in for options action on friday at 5 30 eastern time up next, final trades. [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know theres a 30minute limit, right . Tell that to the rain. [ beeping ] for those who were born to ride, theres progressive. Breaking news out of washington, d. C. Lets get to elon moy. Theyre coming to us. Hi, melissa, the press was just escorted out of the White House Briefing room mid sentence as he was talking about the gains in the stock market by a secret service agent. Were told that the Briefing Rooms doors are closed but woe dont know what caused the president to leave the room. As we find out more well bling it to you. The doors are closed meaning that anybody would w. H. O. Is in side is still inside meaning that the doors to the press offices inside the Briefing Room had a v been locked we still dont know for sure whether or not the white house is on lockdown but trying to find out more information as we speak. Elon, thank you with the latest on that evacuation of President Trump from the press Briefing Room as we get more developments, well certainly bring them to you. Meantime, it is time for the final trade so lets go around the horn tim seymour. I think the story around the Resources Trade as we talked about earlier is one just getting going. Dollar may be a little oversold in the short run but i think it is something you stay with. Dan nathan. Yeah, so twitter, tiktok or not. I think it does just fine here i think you buy this down to the mid30s and see a breakout above 40 in the next few months. Karen finerman . Yes im long some east man kodak and agree what tim and guy said, i think it gets worse before it gets better and still trading 500 over before any of this started so i think there is more bad news here. Just over 500 . Guy. One plus one equals three, carter worth and hanes brand and hbi continues to break out. 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 trying to make you money. My job is to entertain and teach you. Call me 1800743cnbc or tweet me jimcramer. Everybody hates the barbell until days like today and keeps your portfolio fro