Transcripts For CNBC Fast 20240704

For u. S. Steel teslas awful august rolls on and the casino stocks crapping out, after a monster heater. Im melissa lee, this is fast money, live from the Nasdaq Market site. And we start off with a surprising reaction to a pretty disappointing earnings report. Shares of target rising nearly 9 immediately after posting q2 results. The stock closing off those highs, but still up nearly 3 on the day. The move despite some big negatives in the numbers the company reporting its biggest revenue drop in seven years. First samestore sales decline in six it slashed fullyear revenue and profit guidance. Still, even with todays gains, target is far underperforming its retail peers, down over 13 versus double digit gains for the likes of walmart, which reports tomorrow morning so, does targets warning raise a red flag for the entire consumer space or is this a targeted issue karen, what did you make of these numbers . I was surprised at the reaction we talked about this in the green room it wasnt terrible the best thing that target had going for it was the stock had really not performed well going into it, so, that was that, the bar was low. Things seemed better, but the, you know, the earnings were good, the guidance was not as good its not a crazy multiple, but the chacsm between walmart and target is gigantic now when i looked at it severalyearolds ago, maybe that could close they did seem optimistic july was better, that last quarter wasnt great, but it wasnt terrible and so it wasnt terrible. They are hopeful for back to school, all the way into september, they said, and i dont know if thats Bed Bath Beyond consumers that they can pick up, that would be good, because those are a little bit better margin items, so wasnt terrible. I guess the street was looking for terrible, and i was kind of surprised, to be honest, the way the stock traded if you think, all right, lets say they can make the midpoint of their guidance, it is, i dont know is 16, 17 in their multiple, which isnt terrible, but its not super, super cheap. I mean, its ten turns below walmart. Yes thats staggering is that why the stock was up that it was simply too cheap relief rally. Im sure steve and tim have views on this. I was surprised. If you told me, we played this game, what the numbers would be, this stocks going to open lower. It opened up 10 spent the rest of the day going lower what the market took, inventories were down 17 , so, theyre like, okay, final wly, theyre getting inventories this check. Thats a fine thing. But the product mix is still lousy. Valuation, yes you can make a case and say, im willing to wait it out and target will figure it out, but youve been able to say that for a long time. Yeah, i mean, you know, i did spx spx spx this morning, and i said, lets say you put the pride issues to the side, you know, and thats completely what should target be worth . And they said, oh, you know, maybe 18 times thats not far from where it is right now, i mean, three turns higher, tim, because of the mix. The mix is still overwhelmingly a very negative issue for target, going into this sort of economy. What do you think . But the mix will get better and sol, i agree, if you take it at face value with a market that doesnt price stuff in, then you say, targets a company i dont want to own. Weve known this about their merchandise and their product mix for the last three quarters, and the headlines. Softening sales trends decelerating discretionary so, you take a company that is 16 times, eight buck as share for next year, which is around consensus, which came down, by the way, today after they kind of tightened things up, and so, you have a very clean inventory position, you have margin, i think, tail wind, because of where youve lapped those fullyear margin headwinds from the inventory. Inventory shrink continues to be a problem, but really, what have you priced in with target . I own walmart, i dont own target walmarts been a great stock to own and its not cheap, and but i think you stay there i think you can start to own target here. Just one thing i want to add. Tjx home goods was a surprise beat you would hope that you would see some of that same home goods kind of, you know, higher margin stuff sell in target disappointing that it wasnt a little bit better mix. Steve, whats your take at this point, does the stock reaction show that maybe target just got too cheap and its time to take a look maybe the worse is behind it yeah, i mean, lets not forforget, we had had woke wars with target, that wont be as long lasting as many would have thought that would have been and then when you compare it to walmart, walmarts revenues, over 60 come from groceries target, its around 20 . So, you really cant compare the two. I would still stay with walmart, but it does really reflect the kitchen sink type element to it. Karen touched on it. You have back to school, then you have christmas so, theres reasons to be bullish on target, where it is right now. The stock has not been above its 50day in quite some time. Popped above it, now back below, but i think you can probably buy target here. Interesting, because Product Placement is such an important factor for these companies you have these things called impulse buy, and im glad that steve brought up back to school, because its pretty clear that tim is preparing for back to school as he has his thermos and lunchbox behind him. Well done. Look. I dont know how you folks are bringing your lunch to work, but i mean, if its not in your pacman lunchbox and thermos, i dont know what youre doing of course its back to school. And guy, i assume youre going with the charlie brown, possibly, lunchbox well, you know what are you doing . Im going strong brady bunch this year. I was hoping to find the Partridge Family i was not able to. Back tow, mel. They dont make those anymore and you probably cant find one, either back to school, that is karen, you know, another analyst said that back to school is a very, very good indicator, with how the rest of the year would go. Yes target mentioned the resumption, also, of student loan payments as being a headwind for the consumer, which i thought was we all know that, but its different when a ceo actually cites it. Right they want to be cautious as they should be, having theyve had a bit of a rough go there. I was surprised at the back to school comment, even lasting through september. And that would be good for them, though they need to get their mojo back a little bit getting the inventories in order was part of that, but its been a tough slog here. Yeah. How much is there a readthrough, tim, do you think, to walmart to other retailers or do you think that target is sandbagging a little bit on its guidance and the other issues are targetspecific . Target tends to be very conservative i think some of these issues are targetspecific, and i think it just gets back to where youve seen walmart win first of all, walmart wins on price, they push everyone around they dictate price and they will continue to do that in a softening environment. The trends for the consumer, again, to be clear, are not great here and this plays into walmart. Should walmart be trading at a premium . I think so, because i think that multiple comes down. I think theyre going to be more profitable i think margins are going higher theyve made Major Investments in their stores, theyve made Major Investments in digital, in technology so i think walmarts customer is a similar customer, but not quite the same and therefore theyre not going to necessarily see the world through the same set of eyes lets talk about the consumer quickly. I saw something on bank rate today, and this actually was somewhat astonishing Second Quarter last year, serious delinquencies for credit cards were 3. 35 in the same quarter this year, the Second Quarter, up to a little over almost 5. 1 thats a marked jump and were looking for cracks in the consumer armor, well, thats the beginning of it, for sure, when you see that. All right, meantime, we are watching the tenyear yield. It popped on the back of the fed minutes, then gave back some of the increase the rate climbing as high as 4. 28 . Thats a level last seen in oekt f for more on what that means, lets get to cnbcs steve liesman. Steve, you know, weve had the pleasure of hearing fed officials since that last meeting. Is anything really different from the fomc minutes versus what weve heard recently . Well, i think weve got a little bit more disagreement among fed officials. So, at the july meeting, remember, they hiked by a quarter point, right and they thought more hikes would be needed. A minority emerged suggesting the case was not so clear, and even two participants, we learned in the minutes today, thought the fed should not have hiked at all the minutes said heres the sort of juxtaposition of two different ideas. A number of participants judged that risks to the achievement of the committees goals have become balanced. Most see kill sant upside risks to inflation, which could require further tightening of Monetary Policy. That was what moved the markets. The minutes have been more balanced, but i think its too early to sound the allclear on rate hikes you have cpi, of course, came in below expectations after the meeting. Payroll growth did cool again, that was after the meeting remaining above trend. It was retail sales and Industrial Production today above expectations, and these gdp forecasts, as you know, melissa, have been raised sharply for the third quarter, so, the outlook for gdp, i think, is really important to the rate outlook here, because the minutes said many think that you need below trend growth to bring supply and demand into balance. The economy is not below trend at this point. It may be quite a built above trend. And im hoping we get some clarity on the feds next move next week. It could come at the jackson hole meeting the likely speech by fed chair powell, and then well have some interviews with several fed officials there. Steve, for so long, the focus had been on whether or not the fed wug going to hike again, how many hikes, and to some degree, we are focused on that, but it seems like the next dimension that the fed would address would be, maybe an opportunity like jackson hole would be how long Monetary Policy remains restrictive. Do you think the fed, jerome powell, tackles that policy dimension in this speech to really hammer that home . Because the fed doesnt necessarily need to raise rates again, but if it keeps rates elevated, it will still be restr restrictive. I think thats a smart way to think about it, melissa, because what he doesnt want to talk about is cuts and i think hes sort of done talking about hikes. So, although, i think he wants to keep those on the table, so, i think the next sort of macro question is, how long do you stay on hold and there is this question out there that the fed, in order to not become more restrictive as inflation falls is to reduce rates. So, if its going to stay there, if you look at the way the market is structured, 37 probability of a rate hike in november, so you know, 40 , call it wherever, a little bit elevated today all day, especially in light of the higher Economic Forecast weve had, but then look into next year, and now you have cuts built in, and the market and the fed are a little bit offsides on that, a little different there, but the market starts to see rate cuts coming in may, and then more as the year goes by with about three rate cuts built in for next year all right, steve, thank you go catch your plane. Steve liesman. I love that shot from the airport. A beautiful shot it is what do you think last year was an eightminute speech out of jackson hole from jerome powell. And it was similar but i think they have some run well, no pun intended, some runway to sort of i think they can start to put some test balloons out there just to see, especially given whats going on with the bank of japan, their bond market, yield curve control seemingly losing a little bit of control, and whats going on in china that may give them air cover to talk a little bit more dovish than theyve been, so, well see, but it can go either way. Ill tell you, in my opinion, closing above 4. 25 in the tenyear yield is a big deal these are levels we saw in october, and if you recall where the equity market was in october, it wasnt particularly good i think to think about this in the context yesterday, the intraday was 4264, and for us to close at that level is kind of psychologically important. Karen . Im starting to think, you know, if they do hike, then it will be a little more dovish if they dont hike, it will be a little more hawkish. Just trying to, you know, keep people sort of from getting too worked up or too excited over the idea that theyll start cutting. I dont think they want i dont think they want that out there. No, i think they want to put the cuts, you know, like right sounds like theres some dissent. I had thought im a little surprised there was i dont know, well see where the next meeting goes, but i think that higher for longer, how could they not be until something dramatically changes we keep expecting labor to change it hasnt retail is good right, production for more on the fed and jackson hole, lets bring in randall crosner. Great to have you with us. What is powells number one job at jackson hole next week . Last week, he ripped up the script and he gave a much sh shorter speech and said the same thing eight times, inflation is our priority, so, in some sense, hes not going to take a victory lap, but theyve made a lot of progress inflations come down a lot, they raised Interest Rates quite a bit. And i think hes going to talk about how inflation is starting to come down, but that the fed needs to continue to remain vigilant, exact lip as you guys were just describing they dont want to give any signal theyre going to be cutting any time soon and theyre not going to be cutting any time soon. Randy, its tim thank you for joining us how is the fed viewing the rest of the world right now and some of the issues, were starting to see may make their job easier, may make their job more tiffdifficult. Theres flight to quality going to the dollar, a dynamic with the chinese economy, and and even other Central Banks that are making the fed even on a relative basis look more hawkish than they might. Is that good or bad . Theyre going to take that into account, and certainly were getting a lot of negative news out of china, so, china is slipping into deflation, theyre cutting rates. Other Central Banks are holding or are raising rates and so, very, very different in different parts of the world i think they would like to see a little bit less excitement and activity globally, not that they want to see recession, but you know, as the minutes made really clear, and their statements have made really clear, if the economy continues to be kind of steaming forward with near record low unemployment levels, increasing gdp growth, its really hard to see how thats going to be consistent with inflation continuing to come down and staying close to their 2 goal, so, i think a little bit of slowness in the rest of the world will be welcome, but certainly they dont want a global recession randy, when you look at it, you just touched on it does the fed have to wait until the jobs market cracks thats number one. And what do you think about long and variable lags . Because theres a lot of stuff that could still be coming down the pike, so to speak. For sure. So, my university of chicago, milton friedman, Great University of chicago economist 50 years ago talked about long and variable lags of Monetary Policy and boy are we still seeing that today, because the feds been at it for year, year and a half and the labor market is still, you know, near record low Unemployment Rate. So, i think exactly as you said, theyre going to wait to see some of the heat coming out of the labor market wont be satisfied until they see the Unemployment Rate start to move up others will say, as long as the wages come down a little bit thats where people around the table will disagree. But i really dont see how they can feel comfortable to say, okay, were not going to be raising anymore, if the labor is as strong as it is now randy, we got earnings this morning from target, were getting earnings tomorrow from walmart, and so many people are expecting the consumer to endure more stress as the year goes on, because theyre taking on more debt, theyre paying higher rates, theyve got Student Loans they have to start repaying in october. Whats whats your take, do you think the fed, you know, takes them into consideration when thinking about these hikes . Or do they wait to see that impact on the consumer i think theyre still waiting to see the impact, because the consumer has been resilient, con Consumer Confidence has been strong its really quite impressive how, whether its covid or all these Interest Rates moving up to levels they havent been in many, many years, consumer has been pretty resilient. And thats great, but it also makes the feds job a little bit harder, so, i think theyre going to want to see a little bit less less strength there, a little bit more moderation before theyre going to be able to feel comfortable and say, okay, no more hikes. But theyre not going to be talking about cuts for a long time randy, thank you. All right, so, whats the Market Reaction to that message if that message is loud and clear next week, guy, in terms of no rate cuts in the near future, get that out of your mind markets, were not talking about that yet markets not going to like that because i do think my sense is, obviously in the last week or so, the runup in the rally has been predicated on that, some hope, in my words, misguided belief, that the beginning of next year, january, february, going to be rate cuts. I dont see that happening so, if they were to completely take that off the table, despite the fact that weve sold off pretty significantly, i think youll see a selloff in the market. Coming up, afterhours action in cisco shares on the move after reporting results. The latest numbers ahead. But first, all eyes glued to the likes of suits and bluey, guys favorite show. Streamers logged billions of viewing minutes in july. What it means for the billions of dollars up for grabs in the streaming wars dont go anywhere. Fast money is back itwn o. fan 1 there ya go thats what im talkin about josh allen is this your plan to watch the game today . hero fan uh, yea. I have to watch my neighbors nfl sunday ticket. josh allen its not your best plan. But you know what is . Myplan from verizon. Switch now and theyll give you nfl sunday ticket from youtubetv, on them. hero fan this plan is amazing josh allen another amazing plan, backing away from here very slowly. fan 1 that was josh allen. fan 2 mmhm. vo for a limited time get nfl sunday ticket from youtubetv on us. A 449 value. Plus, get a free Samsung Galaxy z flip5. Only on verizon. This is cynthia suarez, cfo of gogo foodco. , an Online Food Delivery service. Business was steady, until. Gogofoodco. Go check it out. Whaatt . overnight, users tripled. Which meant hiring 20 new employees and buying 20 new laptops. So she used her American Express business card, which gives her more membership rewards points on her business purchases. Somebody ordered some laptops . Cynthia suarez. Cfo. Mvp. Built for cynthias business. Built for your business. Amex business. Welcome back to fast money. Youve heard of bingeing, but 23 billion minutes of it . New data pointing to paiftal moment in the streaming wars julia boorstins got all the details. Julia . Melissa, this summer marks a key Tipping Point for the Entertainment Industry for the very first time, linear tv viewership fell below half of all tv usage in july thats according to a new report from nielsen so, that 23 billion viewing minutes number you referenced, that was viewing of suits on netflix and peacock and bluey on disney . The success of decadeold suits speaks to netflixs ability to mine old content and turn it into a big new hit the unique strength of youtube and netflix as particularly notew noteworthy these two Industry Leaders combined for nearly as much viewing as total broadcast television they also accounted for 70 of streaming Industry Growth in the month. So, now the strength of streaming growth will be threatened by rising prices. Its what im calling streamflation the top six will cost 87 this fall thats up from 73 a year ago. So, well have to see if consumers opt for lower cost adsupported options or if they start to drop some of these subscriptions. So, melissa, the cost of that bundle of all of those streamers this fall, thats actually more than basic cable tv. Wow and i like streamflation. Catchy julia, thank you why are you laughing some people inv vvent terms tha are not catchy, not funny thats me, story of my life streamflation is perfect its perfect. How do you trade this how do you call this . Quickly, nancy has been with us for years we could see her, if the jib turned around. The break, shes like, youre the father on this bluey thing its a cartoon netflix, though, if you go back to last april, it took a pause around 390, and steves pointed this out doesnt mean its broken netflix is still the best in show if you are looking for an entry point, you have to wait to that level. Were 20 or so from it. I think its going to get there. Grasso by the way, nancy, this might have been her debut, maybe the second or third time, but we saw her in that shot. Did we . Outstanding. Oh, yeah. Where shes hiding. We saw her in the shadows. Grasso . Everybody loves nancy so, when you look at netflix, i agree with guys level id go a little bit lower than that theres been a couple of tailwinds for netflix. Obviously, it was the password sharing crackdown. Then it was the writers strike, because they just already have so much more content than everybody else its their share to lose but to guys point, when you luke look at the chart, its been roaring above its 50day and above the rest of its moving averages for quite some time its dipped below now. So, if you look at this chart, it looks like it wants to go lower. Theres not a whole heck of a lot of other streamers to play, but all the air has come out of, like, a comcast, because comcast is associated with that linear side of the television business, but i think people are overlooking some of the other players in the space, in streaming, because netflix has sucked up all the air in the room yeah. Or is this a story of people pay up for for, you know, these packages, they will accept streamflation, because they will cut back in other areas because its a lot cheaper to pay 83 a month, whatever the ultimate cost is for a bundle of these streamers, versus actually go some place or go to the movies but theres also the issue of, you have so many competitors and some of them are not going to be able to hang on anymore, right . So, i dont know, well see if they combine or what one thing i want to point out, that youtube number, and thats something gene munster talks a lot about is, not the streamers, but the youtube, the tiktoks, you know, thats where eyeballs are going, so its netflix to lose i dip my toe in disney and now my toe is still there partially okay. Coming up, the earnings season just keeps rolling on cisco on the move in the afterhours. Plus, reports of another offer on the table for u. S. Steel. The company that might be throwing its hat in the ring and why everyone seems to want a piece of steel youre watching fast money live from the Nasdaq Market site in times square. Back right after this. Welcome back to fast money. A volatile day on wall street after the fed said it cannot rule out more rate hikes major indices closing near their lows of the day. The dow sliding 100 points, the s p dropping 33 points Tower Semiconductor and intel among the days biggest laggards. Intel canceled its deal to acquire tower, citing failure to get Regulatory Approvals from china in time. On the upside, keurig dr. Pepper up meantime, shares of cisco volatile, despite the Company Turning in its biggest earnings beat since november 2020 revenues topping estimates, but cisco issuing cautious guidance for its new fiscal year. Up 2. 6 right now. Kristina partsinevelos has been on the call. Whats the latest . Seems like theres been quite a reversal, because of the commentary on this conference call, and if you can just continue to roll through with what ive written, its causing shares to actually increase 2. 6 , because most of that had to do with lifting spirits on product orders the ceo noted that product orders were up 30 year over year, with doubledigit increases in all customer markets. Like i said, the guidance was light for the new fiscal year. Revenues came in light and Chuck Robbins saying on the call just moments ago that customer buying from Service Providers is, quote, weak, because customers are digesting a lot of the infrastructure they already bought and why is that . Keep in mind, two years ago, the company faced a shortage of parts and with those parts available just over the last year, the company has been able to play catchup, and ship out all of those delayed orders, helping sales. But were seeing that bump is fading mentioned it several times on the call another bright spot, cisco is focusing on Network Services and software thats been their pivot. And on the call, the ceo said Software Renewals in the Enterprise Networking area would hit 1 billion. Finally, quote, meaningful, according to him and speaking of the ceo, he will be on cnbc tomorrow at 9 00 a. M. , first on cnbc. Mel . All right, kristina, thank you. Tim, whats your take on cisco im long cisco. Though i sold upside calls to the end of the week, thinking the stocks had a 20 run into these numbers, and theres no way they were going to tell you that they had, you know, off the hook demand. What they are telling you, they are seeing customer demand in all the right areas, a. I. , software, security for sure. And it really gets down to whether youve now guided to low s single different growth into 24, its a very resilient company. Used to be uber cyclical less so, and some sexiness in the higher margin businesses i just talked about. 12 1 2 times 24, this is the cheapest megacap tech stock out there. Still a 220 billion company, and i stay long. I think its had a good run, and its consolidated a little bit here, but i happy to own it guy the guidance, if theyre sandbagging next year, the stock is cheap i think tim is right eps was up 43 year over year. Valuation is compelling. The guidance wasnt great. But i think maybe theyre being disciplined in this virlt, which is a smart thing to do i dont think you can get hurt being long cisco here, despite the rubn its had grasso . Yeah, when you look at the chart, the chart looks great for a long time, cisco used to be a real economic barometer for the rest of the space, but as kristina said, the most important commentary out of cisco is always orders and backlog. And if theyre working through that backlog, thats bullish, and i agree with what guy had said, i think theyre being overly cautious, thats just ciscos way. I would continue to be long the name all right coming up, is there a new steel deal in the works . Works that another mining giant could be looking to scoop up u. S. Steel well debate that next. Plus, looking to sell ev rental but can Customers Count on the charging network to get them where to go . What the ceos are saying, next, when fast money returns. Missed a moment of fast . rbaston dct. Meypoas wee ck right after this. 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Can i get a cucumber water . Earn 5 cash back that automatically adjusts to your top eligible spend category, up to 500 spent each billing cycle with the citi custom cash℠ card. I love it. [voice vibrating] welcome back to fast money. U. S. Steel shares jumping 6 today after news a new bidder is interested in the company. Reuters is report ing, but it could be a climb the United Steelworkers Union saying the deal would be foolish, and that they will only endorse the takeover by Cleveland Cliffs u. S. Steel rejected a 7. 3 billion bid from cleveland and sunday it received a 7. 8 billion bid from esmark on monday. It does seem like things are lining up in favor of cleveland, but yeah, though, you know, with this ftc, and this is sort of an iconic name, right even though the company is surprisingly small, you think about u. S. Steel as a huge behemoth and its not, you could see, i think thats why its not trading so great, given that there are potentially other bidders, but i think also t that that its sort of an issue waiting to happen, so i dont know how i dont thow t gets resolved. I dont own it tim, you know, you brought up the point, i think, tim, today on the conference call, u. S. Steel, its in the name. So, does that make it right does that make it such that the ftc would block a deal because they want to preserve u. S. Steeler they would say, Cleveland Cliffs, you acquire u. S. Steel because it creates a large u. S. , United Statesbased Steel Company . Look, this is the world we may be in, but u. S. Steel is not a strategic sector player, 6. 8 billion market cap is hardly the company it used to be. The secondlargest Steel Company in the world, they grew that way through Enormous Steel consolidation, which we saw in the 2000s, the first kind of part of the decade theres an enormous amount of steel capacity online. U. S. Steel is not cheap. The Balance Sheet is pretty good, after a couple of years of extremely high steel prices. Their last earnings, they reported at the end of july. You can see that the guidance for the second half is very different. And on a trailing basis, the companys wicked expensive almost like, let them all bid for it its interesting, its puzzling. Some of the specialty steels theyre now in make them a bit of a neaiche player, but yeah, i think more important for the unions that u. S. Steel stays in the hands of a u. S. Company than it probably is for the United States from a strategic perspective. Steve, would you trade on any of this . Yeah, i always like to trade on this type of stuff, but the bigger takeaway is that all these assets are have been just knocked down and decimated. If you look at a longterm chart on u. S. Steel, its a mess the levels that were at are horrendous for shareholder value. So, i think its more a product of how deep the discounts have been for value companies, so, you should start looking through your portfolio, or screening names like this, for these type of pops. Theres been an opportunity in the space for consolidation for years, so, the question i would ask, what do they see now that they didnt see six months ago, a year ago, five years ago . Clearly somethings changed. So, with respect to Lee Strasburg and three people out there that have any idea what that means, i think it speaks to the industry and the resource trade, which might start to see some reacceleration in the back half of this year and early next year, which, again, leads to my sort of thesis that inflation is going to rear its ugly head again, so, i like what this is telling you about the resource trade and about names in the space. All right, coming up, plugged in and ready to rent hertz and gm are hoping to push the ev rental space into the main stream, but the charging situation could be a bumpy road ahead. What the ceos of both companies had to say on the matter dont go anywhere. Fast money is back in two. Power e trades easytouse tools, like dynamic charting and riskreward analysis help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from Morgan Stanley. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from Morgan Stanley welcome back to fast money. Almost a year after announcing their ev reprental partnership,v and hertz are looking to sell customers on driving the evs that are available theres a trust issue with the Public Charging Networks both stocks down more than a percent today. Our phil lebeau sat down with the ceos earlier, and joins us with the details i get uptake hasnt been that great the past year. Its not that the uptake hasnt been great, its that what hertz, General Motors, everybody in the Auto Industry is finding is that when you have people charging an ev at home, no problem im confident ive got the juice to go where i need to go you want me to go on a long ride eh, im not so sure about the public charging network. Look at a survey that was released today from jd power they do this every year, where they talk with ev owners, tell us your thoughts when it comes to public chargers and you know what they found this year . People dont like it they dont like it at all. In fact, the survey found over 15,000 people were asked and every single metric they were asked about, they were lower in terms of their responses main complaints, cost too much, the chargers are too slow, and they have long lines now, against this backdrop, hertz is releasing a video series, the first of them coming out this week with General Motors Ceo Mary Barra and the ceo of hertz, talking about how you can have confidence if you rent an electric vehicle at hertz. They believe they need to do this to convince the public you can rent an electric vehicle and you can have confidence in it. Heres stephen and mary earlier today on power lunch. Were seeing demand in a number of areas of our business. First, were seeing it in leisure. Were seeing it in the corporate business, where corporate customers of ours want to put their employees into electric vehicles to satisfy some of their own sustainability objectives having that opportunity to experience an electric vehicle, i think, is really gamechanging. Its instant to work, the vehicles are beautifully designed and so, we think its going to be very important to drive ev adoption take a look at shares of hertz and General Motors keep in mind that, as you saw at the bottom of the screen, gm is in the process of selling 170,000 electric vehicles to hertz that they will feather into their fleet over the next four, five years blue but the question remains, regardless of the confidence they have, of any of the ceos of the auto makers they have of their vehicle getting you where you want to go, the question is whether or not the public truly will gain confidence in these public chargers, because i can tell you this, melissa, the number of people i know with evs who have to go from chicago to st. Louis, or chicago to denver, theyre not crazy about the prospect of driving an electric vehicle that far if you rent a car from hertz, is there a difference in price if you rent an ev versus an i. C. E. Vehicle its comparable if they made it cheaper, youd get a lot more people willing to try it. Well you make anything cheap, people will try it. But their feeling is, the idea of the experience of driving electric, along with the comparable cost, means that people will eventually say, you know what, im in the mood to see if i can be comfortable in a particular e leg truck vehicle and they will rent it. All right, phil, thank you. Phil lebeau. You bet i dont know, if im on a business trip, im not going to be in the mood to try something, if im not sure about the charging network or if im on vacation, i dont know if i want to try it with my family loaded up in the car and to sit for half an hour at a charging station, if i can even get a spot at that charging station, if the charger actually works, tim. I dont know, seems like theres a lot of things that people are apprehensive about this. A price cut seems like that would do the trick well, i think that gm has a shot to showcase whatever is their own technology and to the extent that theyre trying to show off their models, and you do that through a rental car and the other dynamics are, if tesla really is is as dominant as they are, and they are, then there are plenty of ev people out there that are ready to go rent and ev car that have gone on vacation without their tesla. When it comes down to it, this is not marketmoving news for gm what will be is when we start to see real, you know, acceleration, pun intended, in terms of their ev business right now, to assume that ev to assume that ford and gm will not be major ev players is crazy. Their business is moving in that direction, and in the meantime, in gms case, they have never been more efficient, theyre running at a higher margin and theyre developing a fair amount every year i just think you have to hang in there. I have its been frustrating. This news doesnt change the story. Their i. C. E. Business is very solid. Their ev business is slow. Lets stick with evs here tesla falling again today as the Company Announces price cuts to the model s and model x in china. The move comes after the company cut the price of the 3 and the y. Options traders are betting there could be more declines for the stock. Kevin kelly joins us now with the action kevin . Hi, melissa well, today we saw 1. 06 times the amount of puts traded versus calls, and that got stronger throughout the day now, were heading into about options expiration on friday, and we actually saw the largest contracts traded today were the at the money puts. So, you saw over 118,000 puts traded for the 225 strike that expires this friday and they were trading at the end of the day at 3. All right, kevin, thank you kevin kelly. For more options action, tune into the full show, thats friday, 5 30 p. M. Esche time. 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Let Innovation Refunds help you get started on your erc tax refund. Stop waiting. Go to innovationrefunds. Com you really got the brows. Welcome back a sneak peek at the kramer cam gym is talking with the ceo of synopsys you can catch it on mad money. Casino stocks uniformly in the red today. Its been a rough month for the group, with several names dropping double digits in August Las Vegas sands could be at a Tipping Point, closing below the 200day moving average for the First Time Since october tim, you flagged this move earlier today. I did, because i watch this stock a lot, im long. And i think i think you stay long im very confident that the macao business and the marina sands bay in singapore are businesses that still have a lot of room to run the pulldown for lvs is look at whats going on, as we get this news out of china, and some of the lower dynamic we continue to get better numbers out of macao, by the way, in terms of gross gaming revenue. So, i think thats the story here it doesnt mean that you couldnt, you know, technically be concerned about some of the price moves. I think you have a case where at 12 times, this Company Still trades well south of where it did prepandemic and i think this reopening has proven to be something thats very frustrating to try to trade and expect a oneway move in macao. But stay there how do you sort of take all the bad data that were getting out of china and factor that into the ma cow story . I mean, it seems like it would be a huge, enormous drag, or at least an overhang . Tim . Well, i think yeah, so, look, the choppiness of the macao data is in line with the reopening and just how choppy its been. If you think china and their mass market and their v. I. P. In ma cow is not going to get back to normal, then get out of this trade. I dont know how that doesnt ppi recognize that china in ter of macro, we could talk for hours about the structural problems with the chinese economy. Macao is a place that will be alive and well im not worried about the choppiness two months ago, the macao recovery looked fantastic. I think it will look fantastic in two months, as well just interesting to note, the kweb and lvs are exactly the same exactly. Over the last so, it really is a proxy right steve where are you in this . Yeah, so, last i love las ve vegas. Over the years, las vegas sands, but all of the geographic, or geopolitical headwinds if you look at wynn and las vegas, those charts look similar. They are battling with their 200day moving average if you go with the reverse of that, and you tgo with a vegasdependent casino name like mgm, that one on a chart looks better i think it comes with a lot less headwinds. Id rather be in mgm than the other two. Up next, final trades the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Mlb chooses tmobile for business for 5g solutions. To not only enhance the fan experience, but to advance how the game is played. Nows the time to see what americas largest 5g network can do for your business. Time for the final trade lets go around the horn tim seymour . Cisco, despite a conservative guide, has a business where that multiple can move higher but really is about a 12 1 2 times multiple that gets me excited. Steve tapestry. The other side of the cap free, as i believe karen would pronounce it, trade out of capri, im still in tapestry think its coming. Karen yes, tjx. Fantastic quarter beat on almost everything raised margins i like it here guy the selloff in electronic arts, melissa, i think is overdone back to you. Thank you for watching fast money. Mad money with 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 stock market somewhere and i promise to help you find it. Mad money starts now hey, im cramer, welcome to mad money, welcome to cramerica. My job is not just to entertain but to educate and