Transcripts For CNBC Fast 20240703

Level since going public, all because of what its doing in, you guess it, tweight loss. We start off with the last trading day of the month a look at just how much things have changed in the month of september. We kicked off the month, the yield in the tenyear treasury was less than 4. 1 . Its risen 50 bases points, hitting levels not seen in 16 years. Volatility soared 30 to its highest since may, and meantime, stocks dropped with the nasdaq and s p locking in their worst months of the year. As we get ready to kick off the strongest time of year for the marks, what should we expect . Tim, what do you expect . I expect theres not going to be a fed meeting that was supposed to be a nothing burg that are turn into the a big burger. Were already on the move. But i guess what i expect is that sentiment and positioning have already made adjustments based upon how bad september was. And i think theyve already started to adjust backwards. I realize and carder probably thinks the about this all the time. As does bonawyn. Bonawyn likes volatility. Carter thinks about technicals. And at the end of the day, those are the things i think we can predict and set up. Going into the next year are, listen to who you want to listen to. Nike said last night their consumer is more resilient. Bodes well for back to school. I think were going to struggle and rates will push higher. Im looking more towards positioning and sentiment, which got very extreme to the negative, and are already starting to come back. I think its going to be okay. Its about money flow. Not much changed in the earnings multiple. Not much changed for the earnings quarter. Whats changed has been the dollar market, oil, and rates. Yet we know when you get the sequencing, when something gets too far one way, its usually right to play it the other way. Hard to time, but thats the idea. So consider this we know that just three months ago, four months ago, we were at 3. 5 on the tenyear yield, and oil was 65 a barrel and consensus was hard landing its coming now. All of a sudden thats out and its higher for longer because oils at 59 and rates are at four and a half. Its just extrapolating the current trend. Both are overdone. Dollars over done, oils over done. We should get you sound bullish. Thats the thing. The thes rolling over and rates are going down, why wouldnt you think the s ps going to go. There are relationships, inhavers and direct. If it was always so perfect with the dollar going up, oil should be on its knees, but theyre not. These relationships are spurious. Dont always go to way one would think. Trying to time it to the end of the year is a bit difficultle i tend to agree with a lot of points here, being things ebbed and flowed too much on the negative side. In the interim it isnt bullish. Money has been free for the last 15, 20 years. Thats different. The fed is telling us that is going to remain different. I dont think the playbook of old, buying the dips per se, is necessarily the way were going the see this happen. You have six month cds yielding around 6 . What we thought initially was we should be getting Long Duration on the end of the curve because things are are coming to a plateau. What youve seen now is a real move on the back end. That to me really puts pressure on the equity market because of the whole tina situation we have had for the better part of five years or so is no longer a reality. It simply is not. And because of that i think there are alternatives. Even if youre not successfully bearish, just the fact that theres another asset class that will give you compelling yields and returns is enough to take the froth out of the market weve seen recently. Does seem like it would be too good to be true to work past free money is dead, that scenario so quickly, grasso. And with higher for longer, the longer the rates stay higher, the burden gets bigger. Companies run up against a deadline in terms of they have to refinance their debt some time and theyre going to face higher rates. Same thing with the consumer. Yeah, i think for the large part, though, melissa, a lot of companies are not in the situation where they have to refinance any time soon. So if you look at the seasonality of the market, were at the end of the month, the end of the quarter, and if i think the stat is 84 of the time, if youre up going into the Fourth Quarter between 10 and 12 , youre going to be up at the end of the year, higher. Were there. So thats your seasonality issue. Thats playing for the bulls. The other thing is, 30 for funds actually end their fiscal year at the end of september. So now they have a clone slate so. Theres a lot of window dressing i would say going into the last week of this month and obviously the end of this quarter. If all the stuff that you entered into the show with the oil rising, rates rising, throw in the uaw if any of these things get better, the market should move higher. Im still in the bulls camp. I feel pretty good about that. We should have asked the mentalist. He did extraordinary things. The one question we didnt ask him. The correlation between stocks and bonds has been what i think the last couple weeks have been about, and those correlations are two and a half standard deviation. What does that mean . It just means that for traditional allocations, the 60 40 rule. Bloombergs got an index. Everybody does. When you have that kind of correlation, that tends to underperform. And what were seeing for a lot of people is that 60 40 rule has underperformed in this year. So while i think the headline numbers are pretty good on the index, i think we have to think about people that might be chasing a little bit going into year end. But that ultimately i think for allocation, the fact that you can grab mediumterm duration and lock in longterm rates is what a lot of investors should be thinking about. You havent had that opportunity for a long time, and some of the volatility, rates may go higher. You could look at your bond price and say, no oh. But youre not looking in for the bond price youre locking in for the yield thats attached to it. Speaking of yields i tend to agree with steve when it comes to the blue chips. Theyre not going to be in the position when they have to refi, and when they do theyre going to get sweetheart rates. You want to look at the actual index its outperformed and done quite well. If you look at the duration of those bonds they pulled back to the three or fouryear period, because those corporates were expecting that rates are going to fall and theyll be able to refi at a much higher rate. That setup may get challenged in the next few months and years, and i think that might be the shoe to drop in terms of credit at least widening some. When you start to see credit widen thats when you see the hits to the equity market. Big mistakes come from credit and leverage. Weve yet to have a real credit event. The nightmare scenario is if of course we really do start to stall on main street. You get some sort of economic weakness and yet oil and rates stay high. That of course is feels like were on the cusp of that right now. You get that, that is multiples can track dramatically. Thats my view on where i just think discretionary looks challenged in some of those defensive sectors like health care, like staples, and i think now energy, i think truly are defensive. And i look at health care and staples, and they have had a rough run. Youre at the bottom of especi essentially oneyear range on staples. I think its a pretty interesting time for a lot of companies, whether its a hersheys or General Mills where they rerated to the upside during covid if places they didnt belong and the market punished them as they should. Those are opportunities here into the Fourth Quarter and i think last year. Grasso, can you be bullish if you think the consumer is having trouble ahead of the Holiday Season . All the shopping typically done in the fourth the quarter, including halloween and thanksgiving, et cetera. If the consume as paying higher gas prices, higher heating prices for their home, higher prices at the Grocery Store you name it. Higher prices all around. Can you still feel good about the markets . Well, yes, up until you went off on that litany. But its a when i look at the consumer, you cant have it both ways. Weve talked about that the consumer is becoming more and more trapped, yet the economy is way too strong. So, its one or the other. I think that the consumers resiliency has shocked and surprised the economy. I would think that its probably going to continue. I think oil prices are going to be dropping, and if you look at oil futures, year from now, theyre pricing them at 84, so its in backwardation. If youre going out, the market sees this is not a true supply demand issue, this is a russia saudi arabia issue, which means its quasi temporary. If you look at student loan payback, no ones going to be forced to be paying back Student Loans because you still have an administration that says theyre going to push for forgiveness. So theres a lot of reasons to be bullish and have faith in the consumer. As markets wrap up, a messy month, chart master here is honing in on three areas of the market that the hoping to shake off an ugly year. What are the three areas . Rather than picking them myself i just sorted by, what is the worst . Lets look at the caboose, the rear. The three worst areas of the market, of course, banks, utilities, and precious metal stocks. You can see it here very clearly. You have the market up 11. 7, and then in descending order, gold miners, represented by the philadelphia gold and silver index, down 11. Do you jones eutility average, over 100 years old, and kb bank index. Lets look at the areas or themes. Theres not one thats good. These are the most beaten up go lower still. You can see on the screen here converging trend lines. You can interpret it however you want, but its broken through to the downside. Thats the bank index. Take a look at utilities as measured by the do you jones utility average. Weve just taken out the lows of almost a year and a half go, breaching the lower band. And finally you can see here is the philadelphia gold and silver average of important mining stocks. All really quite similar in terms of what theyve done. So big disparity with the market, and yet one might think, maybe we should bottom fish. I wouldnt. Interesting. What utilities and banks tell you is were going higher. Were worried about credit and the pressure on utilities to have the Free Cash Flow theyre generating. With Precious Metals its more or less pretty simple. The dollar kicked butt in the last six weeks and essentially rose 6 off a level. The correlations there are extremely high. Everything that were seeing about this setup sounds like a world where, especially in inflation is kind of peaking, sounds like the time you want to buy gold. I think forget the industrial uses for gold. Think about the monetary policies i think youre buying gdx, but if you look at some of the other resources, i think resource names look interesting as well. Integrated miners. And i think oils going higher. Bhp or rio. Oil prices started to rally. Not like chinas been given that strong of a shot in the arm, but if china shows a little bit of life, that could a lot in terms of multiple. For commodities i tend to agree spot on in term of precious metal companies. The dollar challenged that there, but fundamentally thats where id like to be. Banks not sure if yield is going higher or credit going wider. I would expect credit going higher given what weve seen in rates. That spread remained tight, and im not sure why. Steve, would you dare to bottom fish an area that the chart master says not to bottom fish . Zblinchts. No, i trust the chart master on that. Youre the only one here. On the premise that hes making. But you know, there are so many correlations. Carter likes to talk about correlations. When you look at gold, i cant help but look at bitcoin. Cant help but look at crypto. Then when you look at gold, do you do the miners or the commodity . And i think that weve talked the about this long enough on the show for, you know, a decade and a half now, that when you think gold is going to be moving, miners actually have a two or threetoone ratio they move gold both up and down. If you think its going higher, buy the miners. Miners or the metal . Miners. I agree with that analysis on the beta. I say this a lot about a lot of different miners. I think the companies are run differently. I think theres been a capital discipline. Thats why copper stay as stubborn. If theres been such a lack of investment in copper mines and infrastructure, and i think across the precious metal space, we also dont see that m a mania in the space that i think forced these companies to do their job. So i like gdx. I like silver over gold, and it continue to think uranium goes higher, too. Do you ever override how you read the charts with your fundamental belief in something . No. Never. What would be the point . Youve got tick to your discipline, unless you get a magic trick going. That wasnt magic. He was in our heads. Plus he doesnt a fundamental belief. Dangerous place to be. Developing story here. The deadline to avoid a Government Shutdown just hours away. Emily wilkins has the latest from capitol hill. Reporter lawmakers have spent all week voting on different spending bills and they recollect no closer to finding a path to end a Government Shutdown that is set to begin sunday at midnight. A stopgap measure backed by Kevin Mccarthy went down on the house floor today with 21 republicans joining democrats in defeating the measure. House republicans are actually meeting now to discuss a path four, and its just not clear what thats going to be. Some members are pushing to keep the Government Shutdown for weeks while they pass all remaining longterm spending bills. Others talk about teaming one democrats to force a vote on the floor. Honestly, the quickest way to end a shutdown would probably be for the house to take up a bipartisan bill the senate at expected to pass on monday. Chuck schumer called on mccarthy to bring the bill to the senate. Listen to what he edsaid this afternoon. The speaker needs to abandon his doomed mission of trying to please maga enthusiasts and instead needs to work across the aisle to keep the government open. Things seem to be getting worse for the speaker rather than better and its time for him the try bipartisanship. Reporter mccarthy has said that he not bring the senate bill to the floor unless it contains something on border security, and senators are trying to work on an amendment, but they actually need to have one thats going to get the support of both republicans and democrats, and thats going to be really, really difficult some at this point we absolutely look ah ah headed into a shutdown. The question is how long its going last. The longer it does, the more of a hit this could be to the economy. Melissa . Emily, thank you. Emily wilkins. We also wont get reads on the economy, because the Economic Data wont be released. Maybe thats good. Just look at the chart. Through go. Its amazing to me as a guy that spent a lot of time in a merging markets where a political shutdown and political wrangling and dysfunction is usually what causes sovereign cds and causes Government Bond yields to go sky rocking. Weve heard from every agency. Some more focused on the banks. Started with fitch. Heard moodys late last week talk about sovereign credit in the context of a Government Shutdown. Im not saying they should, that they shouldnt. Im just telling you thats not been part of the calculus. I think that has a lot to do with some of the last 10 to 15 bases points of bond market. It underscores government dysfunction. Sadly, government dysfunction is not likely to go away or get better any time soon. Yeah, we have had, what, somewhere around 20 different shutdowns since 1980. Both parties have held responsibility for them at times. Its probably pretty evenly split. Its not going away. Its only more contentious. And the truth is, there might be an 11th hour where the speaker has to actually bring something to the floor where he can get democrats to vote for him. That would probably be a death nell for his speakership, and i think its going to get a lot more murky. But when you look at the average time respond of these shutdowns, theyre probably on average eight days long, because of the extra long one we had recently. Lets hope we dont see one that lasts more than a week. Coming up, a weight loss drug that could enter the arena. Structure soaring. Well give you the skinny on why investors are excited. New trouble for the big three. Uaw announcing a new wave of strike as negotiations stall. Fast money will be right back. upbeat music Constant Contacts advanced automation lets you send the right message at the right time, every time. Constant Contact. Helping the small stand tall. Welcome back to fast money. Another company pulling its hat in the weight loss ring. Angelica, welcome to fast money. Whats the latest . Thanks so much for having me. Structure is saying people with obesity lost 5 of its body weight after taking its experimental pill once a day for four weeks. Shares up 35 today on the phase 1 b trial results. Nausea and vomiting were the most common adverse effects and thats common. None of the participants dropped out of the trial because of the adverse events. Investors are clearly excited about these results and the growing market for weight loss drugs. Analysts saying that structures pill could be kpi we lie lillys pill, and eli lilly being a growing powerhouse in the space. Its important to know this is a tiny trial and results are early. The study included only 24 people and findings will need to be confirmed in future studies. And this is a pill form, correct . Reporter correct. Tim, youre pointing out novo and eli lilly have had a pullback. Lillys down 11 from what looks like a blowoff top on volume and traded down to the 50. This is not cause for alarm if youre a bull. Whats cause for at least review is the competitive landscape. It is getting i think its less about the sum of the regulatory concerns that might be coming with some of these studies that are proving all kinds of side effects that arent great. I think its the competitive landscape. The question really is about total adjustable market and margin expansion. Those are things analysts have had a good time with lilly doing whatever they want. 78 times trailing tells you where the stock needs to go in the future. Right, and the irony is of course the winners, as much as theyre up, the really big moves have been from the losers, insp and decks com. Down 40 and 50 . Thats the best trade, being short the ones that are going to suffer. I think the pill form is a pretty compelling argument. Talking about a 100 billion global adjustable market. These are all compelling reasons, but these are these things doubled since may or june. Theres a lot baked into the price here. Early stages, 5 , id like to see more data before willing to pay particularly when theres two other alternatives. To throw my hat in here. Id like to see a little more data. Yeah. Grasso . Yeah, i had picked amgen. I traded out of it. If you look at that chart up against lillys chart i thought it was overextended. And amgen shows promise on their glp1 receptor as well. So id rather play a noname like an amgen that people are comfortable moving around in the name name. With that type of chart with one to bonawyns point that has really rallies way too much, way too fast. The real competitive one to this particular structure therapeutics pill is pfizer. Theyre saying its a real alternative to pfizer. Tims pfizer and he wishes it wasnt tims pfizer, although phase her a good day today. I think they reinvested in a pipeline a post covid intervene environment that pfizer was interesting. They took their wind fall earnings didnt sit tight. They didnt give back the shareholders they went out and bought a lot of stuff and renational securitied. Lilly, the requirement is in the next eight years they grow 25 a year. The thats what youre banking on, you want to own it. A lot more fast money to come. Heres whats next. Tesla revving up for its latest delivery data. Pump the brakes on the stock . Well tell you how options traders are playing the game ahead of a pivotal print. Plus, 20 and a side of fries. Californias giving fast food workers a meaty pay raise. Will it greece consumers pockets or toss a wrench in the labor market . Youre watching fast money, live from the Nasdaq Market site in times square. Were back right after this. Move to the cloud. So, the question is. Cyber attack as cyber criminals expand their toolkit, we must expand as well. We need to rethink. Next level moments, need the next level network. [speaker continues in the background] the network with 24 7 builtin security. Chip . At t business. Welcome back to fast money. Tesla wrapping up the quarter in the red, but still riding its high for the year, just about doubles in to 23. Options traders plugging in and charging into the game. Mikes got the action. Hey, mike. Often one of the busiesest single Stock Options and it was today and traded above is own high volume. Represents 14. 5 of all single Stock Options volume today, and the bulls and bears are evenly matched, but at this time bears just took it, beating out the bullish bets by about 1 . One of the examples i have here, the october 240 puts, a buyer paid, betting a premium that tesla would drop 7 or more in the next two weeks. There are a lot of factory shutdown factoring in the numbers. How does this chart look . I was not paying attention. Can you fell me what it was . It was tesla. Okay, because i heard my phone go off. I didnt want it to bother anybody. My phone goes off. The answer is its a pair of 2s. Same price it was a few year ago. Acting better, but is it something you have to push into or go short . No, just leave it alone. I tend to agree its a pair of 2s, but i feel like i always say that and the stock continues to move. Given where we are with the uaw, i would tend to think you play this for the long side, dare i say it, intermittently. But if there were a time id jump in it would be now for probably a month long or so trade. I know you dont like it. The phone ringing . It wasnt ringing. I was worried about it ringing. I mean the stock. I dont like the stock and dont have a view on the chart, but i have a view on delivery numbers, which is they dont matter. We know theyre going to be lower. Numbers are going down. Therefore i dont think its relative. There are people out there that also think the price cuts are really all about them sweating other people, and weve seen from the competition that its going to hurt them if they have to cut margins. Now, again, no, i dont like the stock, and ive typically been very bearish on the stock. I do think that they have an earnings profile that every other competitor would like to have. I do think, though, that it feels like the setup where if they beat all the numbers theres a huge pop to the stock, grasso. Yeah, 100 . And to tims point, i think hes dead on. They were sweating other people up until the last couple of months now where they know that the other carmakers that are trying to dabble in there in the ev space are hemorrhaging money. Now they have uaw problems. They dont have either one of those, and i think theyre back launched to the best position. And im not long the name right now, but i am long rivan and theyre starting to make a move in the charts, too. Theyre definitely second place, way, way, way distant behind tesla. Mike khouw, thank you. Good to see you as always. Coming up, new strikes out of the uaw and one auto ceo barking back at negotiations hit a snag. Plus, the mixed signals beijing is sending to the u. S. Are things about to get more heated . Details when fast money returns. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. You founded your Kayak Company because you love the ocean not spreadsheets. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire upbeat music Constant Contacts advanced automation lets you send the right message at the right time, every time. Constant Contact. Helping the small stand tall. Welcome back. Stocks a whimper as a republican plan failed to pass the house. For the month the dow is down more than 3. 5 . The s p and tech heavy nasdaq seeing bigger loss, both posting their worst month of the year. Meanwhile, the uaw authorizing new strikes against General Motors and ford today. Nearly 7,000 new workers walking off the job. Jim farley slamming uaw leadership as a war of word heats up. Phil lebeau joins us now. Reporter we are nowhere close to seeing a resolution. To bring you up to speed in terms of the two new additional strike location, two final a semiably plants, one for ford in chicago, one for gm. There are 25,000 uaw members who are on strike, and ford Ceo Jim Farley didnt wait long before that happened before he called a briefing with analysts and reporters as you take a look at shares of ford, and said among other things the uaw is holding the deal hostage over battery plants and the insistence of the uaw that those be a part of these negotiations. Heres what he had to say in terms of frustration over those talks. Ford stepped up with a historic offer and bottom line someone needs to tell the truth about whats really going on and whats at stake here. Reporter what he thinks is going on is this strike was p premeditated by the uaw and theyre not in any hurry to solve it any time soon. Head of the uaw stated, i dont know why jim farley is lying about the state of negotiations. Could be because he failed to show up fur negotiations this week as he has the past ten weeks. If he were there hed know we gave ford a comprehensive proposal monday and still havent heard, baa. Also take a lack at shares of gm and stellantis. Gm says hes offering a historic contract. Stealantis was not part of the negotiations today. Bottom line is this, melissa, we think not just me, but the people in the autoindustry think this is going to go on for so many time. Theres no indication it could be resolved soon, and what we saw today was frustration on the part of jim far will i and other executives at ford about how to talks have proceeded or not proceeded. Any impact now, phil, in terms of the autos available for sale . Have we seen that impact . Reporter not yet. We checked with j. D. Power earlier this week, and the levels havent changed. I suspect thats going to change over the next two, three weeks because you have more models that are impacted, and this is where you really start to see slower theres no deliveries coming from these plants that are now seeing workers walk off the job. So its going to take a little bit of time, but this is where you start to see it kick in id say by mid month. Phil, thanks. Never a good sign when both sides call each other liars. Bonawyn, how do you feel about the liars . Although not uncommon. When you asked me this before i was saying, listen, ford hasnt been impacted. By farleys response, i felt he thought theydodged the bullet and now are getting hit. The ev situation, the battery factories, i think thats a nonnegotiable. Elon musk came out and said it. It sets up for them to be not competitive in the ev space. If thats really going to be the Sticking Point, i dont see a resolution any time soon, and im now a bit more bearish than i was previously about ford being that they had avoided this whole situation, but the fallout is now affecting them. If really the Sticking Point is evs, i dont see how theyre going to make progress being a player in that space. Looking the past 30, 60 days, the real pressure has been on the luxury. Lexus, bmw, really locked down. The slowdown is coming. I dig jim farley, not just because hes an hoya, but because he is honest. Hes called out ford, and this week ford decided to spend their blue oval ev plant effectively, and theyre doing it for a couple reasons. Bonawyn, youre right. Theyre making a statement. The implication is they cannot be competitive based on the demands from the uaw, oem, dynamics and its going add a thousand bucks to a battery. So interesting. Coming up, one step forward, two steps back. Weve got your china playbook next. And cnbc is celebrating hispanic heritage. Heres shopifys general counsel. One of my most profound does sotomayor, i was able to clerk for her. I remember everything she taught me from an academic how to be a good lawyer standpoint but from a human empathy standpoint, and really paying it forward is an important part of how we all partake in a community. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Welcome back to fast money. A slew of headlines out of china hitting the air waves as the country prepares to kick off a big week. Apple raise concerns over new rules that could restrict foreign apps in the country. Chinas trade council asking china to reconsider the tech ban. Lets bring in cnbc contributor dewardrick neil. Great to have you with us. On top of this, president xi, President Biden are expected to meet facetoface some time in november. Im wondering, how do you read all of this . Well, first of all, thanks for having me, melissa. I think if youre watching china right now, it is mass confusion and a contradiction in terms of what we think china wants, listening to some of the rhetoric versus the actions. And so if youre a business now trying to figure out the direction, its extremely, extremely hard to do. You raise apple as a perfect example. The hits keep oncoming for apple. In this case as you point out, the government wanted apple to remove facebook, x, and instagram from the china app store. These platforms cannot be accessed through the web but through a vpn they can and theyre unregistered foreigns, melissa. These companies are not going to register because now theyve become liable for crossborder data transfers. You spoke about exit bans. Most exit bans are coming from companies doing Due Diligence and risk assessment. So if youre a company trying to invest in china you need these services, but your people are being targeted. Its a massive confusion. I would not want to be the one making decisions on whether to stay or go right now. Do you read this as sort of a ramping up because they are scheduled to meet, you know, sort of proof that we are tough, we can really make your life difficult . And so when we meet, you listen to us. Yeah, look, i think what is happening here to the degree that any of us can know, is there are some real challenges about the way forward in china. Theres pretty much acceptance the old model, property sector, tons of exports, that model is broken. Where xi wants to take the economy is in the high tech space. High tech manufacturing, second conductor chips. So thats where he wants to go. The problem is theres concern that there may be systemic risks and contagion in the orlando sector. Hes trying to slowly land that plane while taking off. And its not happening because he also has concerns about stability and National Security risks. So its a massive confusion. But i think what hes really trying to sort out is the domestic challenges at home and trying to prepare himself for a longterm competition with the u. S. And a lot of these things are not congruent. In fact, theyre contradicting one another. When you look at the companies in china themselves and the ones that have been under the most pressure. And we talk about them on the show, whether its an alibaba or some of the National Champion tech companies, how do you do that in that environment . They could be the vehicles i realize on some level theyve gotten ahead of the state and thats been part of their problem. Do you think the environment everything you just said, and i think its i totally agree with these dynamic of kind of Old School New School Economy stuff. Shouldnt these companies be part of their plan to advance the technology these places . Yeah, i think youre absolutely right. The goal is not to kill them off completely. The goal is to bring them into compliance be make sure they are moving in the same direction as the party States Development strategy. For soft tech. For hard tech, this is where most of the focus, most of the investment, i think most of the Government Resources are going to go, the hard sciences, the things that we have been talking about. How does china become selfreliant in chip manufacturing. Whats going to happen with advanced manufacturing. To the degree soft tech can be useful and i think were seeing them all come along, thats fine, but theyre not going to be killed off. Theyre not going to have the sort of clout, the sort of muscle and resonance they used to have in this new model. Got to leave it there. Thanks so much. Great to see you as always. Weve got a news alert here. The Biden Administrations effort to negotiate drug prices with medicare. Eamon has the details. Reporter thats right, its a courtroom loss for the F Pharmaceutical industry and the chamber of commerce as a federal judge declined to block the Biden Administration from implementing those drug price negotiations. Remember, thats been a key promise of the Biden Administration that, they would negotiate drug prices in medicare and bring down the cost of drugs overall. Certain drug prices will be eligible. The judge declining to stand in the way of that process. A loss for the pharmaceutical sector. Back to you. Eamon, thank you. A lot of the drugs on that list are basically given out or sold with tremendous discounts already, but in the longer term as more drugs are added to part d, that could be forced obsolescence for other drugs. Theres a principle. This is where the Drug Companies have to dig in. It started with merck. I think theres going to be a lot more unity. Analysts shouldnt be doing a whole lot to their eps forecasts for 202425. This is an issue beyond. I dont know. I feel like the Drug Companies should be rewarded for their r d within reason. That is the prevailing dynamic. Thats how its going play out. Coming up, a wage war in california and this time its not a strike pushing wages higher. Pupede government is being us toush paychecks. Stimaround, more fast money in two. Your shipping manager left to find themself. leaving you lost. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire upbeat music woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Welcome back. Fast money for fast food workers in california, as minimum wage is set to jump to 20 an hour. This new record level didnt come because of a strike, it came because of government legislation. Could other states follow californias lead . Kate rogers joins us with the details. Reporter this was a win of course for fast food workers in the state, as you said, taking the minimum wage for worker up to 20 an hour on april 1st with chains at more than 60 location nationwide. It was brokered by a fast Food Coalition that includes the seiu and advocates from the National Franchise association. There were further hikes to come, but the deal removed provisions that owners were concerned about. It gets california to the highest in the nation and there are further concerns that would create similar Fast Food Councils to create wages and conditions. Telling me theyre not stopping with california. Take a listen. Thats why this Fast Food Sector Council so significant in the state of california, why we need repry late it in other states, and why we need to transform National Labor law to actually make it possible to hold multinational corporations accountable and get them at the bargaining table to make decisions on wages and benefits. Reporter this one will certainly be one to watch, thank you. 20 bucks an hour is higher than the base minimum wage in california which is higher than many states minimum wages across the country. The first thing i thought of is if youre a fast food worker, you go to work for big chains, theyre going to have to chase and raise what theyre paying in order to track workers. Makes it very difficult for the smaller businesses out there as well as of course raising labor costs in general. Its unsbintended consequenc. I think you hit it on the head. Your first job is usually in a fast food place or Food Industry some somewhere. Employers are willing to hire you because you dont know anything. Once you lift that level to 20 on hour certain people want to take those jobs away from the younger generation. If you just look at the fast food casual market, all those stocks look terrible with the exception of cmg. Up next, final trades. Time for the final trades. Steve grasso. Rivian back above its 50day moving average. Hoping this is the real breakout. Tim . Tims pfizer beat the trend today. Terrible chart. I think the valuations off. Carter. Double. Going with tims pfizer. Also tlt playing for the bounce. Bonawyn . Great chart, structure