Transcripts For CNBC Fast Money 20160331

Here is what is most interesting. The defensive trades stood out as the biggest winners. Gold seeing the biggest quarterly gain in 30 years. Utilities up 9 . Telecom getting more than 15 . And the tlt rallying 8 for the quarter. So you stick with the winners. Do you stay defensive in q2, guys . I think the defensive nature is why people, specifically me maine still question the validly of this rally. Do you stay with those trades . I think you stay with certain things working. Home depot has been a monster. Cocacola has been a monster. Now were trading up against resistance. Gdx, for example, failed at levels we last saw at may of last year. Steve talks about xlu all the time that is also trading at levels that potentially are double top. So i think there are certain stocks that continue to work in terms of momentum. Some of the trades that have been defensive might be getting a little long in the tooth. You could take a look at the valuation, for instance, grasso on utilities. Utilities trading at a premium to the s p 500, 22 versus 18 1 2. Do you pay up for that performance . Do you think it will continue . I think guy has a valid point. You want the wait, let it breathe for a little bit now. But theyre up 14 year to date. You said 9 for the quarter. 14 year to date you. Should be buying the estimates. Its all about dividend right now. So give it a couple of days. But i think thats you should be in the market. Speak of staples, maybe a razor. Wow. I would make an argument that the defensive names were actually underperforming. The offensive names. So it wasnt about defense. It was about playing offense in the First Quarter. Emerging markets up 13 . Anything that was inverse dollar related went through the roof that was oil. That was oilrelated equities. To me the question is actually do you stay with the names that were not defensive but actually were very much counter trend trades. And i think those are trades that continue to work. Again, its about the dollar. Its about things that people have been betting so hard against there is nothing that happened in the First Quarter that really is any different than where we were in the Third Quarter and in the fourth quarter. And in those environments, a lot of these trades did not work. And yet, weve got more clarity out of the fed. I think you listen to the fed. You dont fight the fed until its time to fight the fed. Thats where people have been wrong. Do you agree that nothing has changed since the beginning of the quarter versus now . I think a lot has changed. I think we saw a ridiculous uptick in sectors that have absolutely no reason to be up where they are, specifically energy. I look at this move in the tape. Crazy where energy is trading right now. Some of the material names. The fundamentals just do not support, they dont support the moves that weve seen in some sectors. So i look at defensive. I hate getting defensive. I really got to be honest with you. I cant stand it. I love looking for opportunities. Look, you bought altria. A really nice dividend, but theyre going to benefit from the dollar. A double whammy. We talked about that a couple of days on the show. Thats a name i would be stick with here and looking into. But also biotech. Well talk about that little bit layer. There are some sectors that have really picked up steam the past month or so. You mentioned the fed step aid aside. Technology is up 9 in the past month. Ibm up from the one teens. So there are some tech names that continue to grind higher. I think people are playing the homeium trade. Well see what happens there. I think youre going the learn a lot tomorrow in terms of dont fight the fed. If you get a good jobs number tomorrow, again, that putsing them in a really difficult position right there. Data dependent. If that job number is really good, you wonder what it forces them to do if anything. April back on the table . I dont think they should. I dont think they will. I dont think they will. But it will force their hand where the market will selloff, thinking that it could be on the table. Exactly. When i think tim is talk about before, moving the dollar right now, its very shocking that you dont see oil rallying really hard. That to me smells. And i think if youre based on china being stable, i think you have you to recalculate where your trade is going forward. And i think the sentiment. China is a pmi number out tonight. But i think the China Sentiment is basically, its whisker thin actually. Thats twice. He looks great. All the wrinkles up the side of his face. I think what steve saying is actually fair. If you think about the move in oil in the last 5 move in the dollar, think about the context of the oil moved relative to what was probably a 12 move in the dollar. The dollar has appreciated 12 from july of 2014. And this is when oil had this massive selldown from 110 down to where it is today. Its bounced a lot. Steves point, it is tired here . I think thats a fair thing. I think a lot of the risk trades, the counter trend rallies of last quarter, these are things that cant go straight up in the shortterm. In fact, my positioning is actually for a market that is going to pull back. And that includes adding to iwm short sales and selling off some of the stuff. We thought about the oil move. Near term 50 is the top in oil. Tim had thought that that was going to go through, i think. I dont want to speak for you. And for me, i think were sort november the middle here. But i do think the trade is lower for oil. Definitely lower for oil there is no question. But i look at the fact earnings are coming into play. People are really concerned about earnings. The narrative is shifting quite a bit from the perspective of yeah, the fed, whether or not theyre going to raise, not going to raise. I get the scenario on the rumors. But i tell you what, earnings, people are thinking about revenue growth. Theyre thinking about earnings growth. Its really becoming a main theme thought in a pm that is running money that has a fundamental view on stocks. It will be interesting to see how Many Companies will actually say the dollar was an issue when the dollar index was down 4 or so for the quarter. We heard from it from nike. It was headwind for nike. So well see about that. There is no denying the performance in energy lately. Its the Top Performing sector in the last month. If history is any indication, it could get even better as we head into the next quarter. Paul hickey is the cofounder and joins us now. Why . You look the sector was only about 3 in the quarter that was enough to be the best quarter since i think mid 2014. So thats how poor energy has been, which is so beaten down. Its now coming into the second sector what we want to look at. Tim, you were talking about the weak dollar. Thats good or to the energy sect. Commodities and good for oil. Thats one thing working in its favor. Sentiment towards the Energy Sector, over half of companies in the Energy Sector have seen their numbers cut in the last month. When you head into earnings season and you have that extreme of a negative revisions ratio, shortterm sector usually does well. We saw it going into the First Quarter earnings season. Energy bottomed in late january. And analysts were so negative on the sector, industrials as well. And history. You look at history all the time. And two things. Energy, is Second Quarter of the year is historically the best quarter of the year for the Energy Sector. And then, again, with this huge swing we had in the First Quarter of this year. Down 10 . Up 10 , flat on the quarter. Its only been four other times when youve seen it that type of v in the First Quarter. Most recent were in 2003 and 2009. 2003 what drove the market down was the Technology Sector. After that rebound in the Second Quarter, the Technology Sector outperformed the s p by a wide margin. S p did well, but tech also outperformed. 2009, it was financials driving the market low and the rebound. Financials outperformed the market by a wide margin in q2. So the ground zero for the weakness during the pullback and the volatility of that First Quarter, outperformed in the Second Quarter. I dont mean to be skeptical. I guess i normally am skeptical. But in this case for Energy Stocks versus technology or any other sector, a big input for these analysts has been the price of oil. And not many on the street have gotten that right at all. So isnt this sort of shouldnt we discount the fact that theyre bringing down the earnings estimates simply because they havent gotten this right for so long. And theyre probably sitting on their hands thing you know what . Its impossible for us to forecast the price of oil. So therefore were going to hang back from making these estimates final. Oh, yeah. You look at it. Investors are expecting numbers to be short. The sector has the highest valuation of any sector in the market. And thats after revisions have been coming down. So its the highest p e and the p e is going up even as the sector hasnt done too well. And good barometer to watch for the Energy Sector right here is because 23 you look at a longterm chart, i think they have it here. From the peak in 2014 through now, there is a pronounced downtrend in the sector. And the downtrend and the 200day moving average were bumping up right against that level right now. So a cautious investor. If you dont want to be too aggressive, you can wait. And for the last couple of months, we worry about a lot of these Energy Companies going bellyup. We thought they were all dead. And the truth is if oil stays at this range, 30s, even around 40, thats not good enough. I think that you need to see oil really rebound and break through timmys level of 50 for things to sort of be that all clear. Especially in the small cap sector. Thats why companies are down about 70 from the highs. The large cap s p 500 names, there are names that a little less leverage. So they can withstand it for maybe a little bit longer here. But yes, you definitely need oil in the mid30s. I has to go higher here for these companies to be out of the woods. Paul, great to see you. Thanks for having by. Thanks for having me. Paul hickey of bespoke. Paul mentioned the quarter to date performance. But if you take a look at the past month, its actually the best performing sector. Its done better than technology, for instance. Is this momentum . Well, i think fundamentals have a lot to do. And momentum is clearly the other side of that. Or in addition to that equation. I say this again. Strong jobs number tomorrow in my opinion makes the dollar, which is poised for a rally go up sharply, which means this commodity trade which may be a little long in the tooth in terms of where we have been over the past month vulnerable for a pullback. It gets clipped . Yeah. There you go. When you think about energy amazing. [ laughter ] its been a grizzly, it really has been, steve. Who is the incremental buyer here . The hedge funds have gotten destroyed, right . This will move up and i say repositioning. Short covering was a real massive driver here. Who is the incremental buyer . The fundamental guys will look at valuation, too far, too fast. I cant play. Look somewhere else. Who is going to step in and support . Seaburg, timmy has one more joke. No, actually i dont, dan fouts. Its ultimately been an environment where the oil trade has been on the wrong sides of sentiment. Its still fairly negative in oil, even though specs have evened out. I wouldnt run from it. Still ahead, dow stocks that one of our traders had lost all hope for. Its having a huge day. Well give you the name next. Is one of the hottest trades of the year to be get hotter in q2 . Well explain what percent the consumer stock soaring to new highlights. Later, have you been sitting out this rally . Weve got four stocks ready to get you back in the game in no time flat. The names might just surprise you. Much more fast money right after this. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Weve got a news alert here on Semiconductor Company marvel technology, moving lower in the after hours. Kate rogers got the detail back at headquarters. Semiconductor conductor Marvell Technologies announcing theyre not going to be able to file their annual 10k on time this year. Theyre also expecting fiscal year 2016 net revenue to be significantly lower versus 2015. Theyre citing decreased demand on that. Theyre also blaming a previously announced accounting inquiry for the delay. They also switched over to a new Accounting Firm just as recently as february 22nd. And as you can see, the stock is down by nearly 4 in the after hours trade, melissa. Back over to you. Thank you so much, kate rogers. So a Company Misses its filings. Thats not good. Weak full year guidance, thats not good. Anything to like . S. E. C. Inquiry hanging over it the delisting is a risk. So to me, this is, again, its a no touch. Why would you be involved when we still havent gotten a lot of these issues out of the way . They told you that things actually dont look that great. Lets go straight to our top trades. Tonight it is a dow darlings edition. Well start off with ibm as the biggest gain other tonight dow for the day, rallying more than 2 . This after Morgan Stanley raised its price target to 168 from 140, citing watson and stronger estimates. As you all know, guy has been all over ibm for a long time. But unfortunately, not exactly on the right side of the tree. Take a listen. Weve talked about for the last 16 months that if you just did the math, ibm was 139 stock. It actually overshot how low we thought it would goo. I still think the multiple is too high. I get the upgrade and can it rally another five bucks from here . Yes that is a challenged company. Ibm, you come back five years from now, this might have a 100 handle. Wow. Forget about the dividend, folks. Ibm i think goes south, which means youre better off in the ibm bonds. By the way, b. K. Didnt like ibm yesterday either. So its not been a fan favorite here in the past. Nobody likes it, to be fair. This is a stock that any chance they can leans on the stock. So what is going on here . Not sure what is going on. We were right future a long time this move from 117 to 151 clearly caught me offguard. Never thou it would get here. But if you want to play the technical game, well, its still in a significant downtrend that were bumping up against going back from 2013 when i believe thats when the stock made its alltime high number one. I get the watson thing. But im not certain that that is going to be a huge driver in this quarter or the next quarter. They still have tremendous issues. And i like katie hubert. She has been on the show i think years ago. So i understand what she is saying. But it come downs to valuation. And they continue to lose out to the competitor. You continue to see revenue declines. Eps declines. It is a math problem. What is the right multiple for ibm if theyre going to earn 15 a share . Here is the question, though. Even if it is declining many metrics, doesnt it just need to not decline as much as what many people are expecting on the street for it to outperform as a stock . I dont think so. I think the only thing that saves this stock i think is the dividend. This was a dividend environment where people were hunting for yield. This was also my secular short. So ive been on that short side as well. But i dont think hes wrong. And i dont think im wrong. Because if you look at the chart, three years almost to the day was the top in ibm. 215 and change. There is no way its going see those prices again. First of all on a relative strength index, the stock is overbought currently. I would look for lower prices right now. I would still be overall a seller of ibm. They cant their sales are down dramatically. They made acquisitions. Nothing has helped. Next up, not ibm, mcdonalds. Ending the day slightly lower despite announcing plans to add more than a thousand restaurants, 1300 in china, hong kong and south korea over the next five years. Ceo Steve Easterbrook says he aims to turn mcdonalds into chinas number two marketplace. It was closing 350 restaurants in china, japan and the u. S. 90 of those actually came from china alone. Tim . Its a nice turn of events in china for mcdonalds after the hamburger scare in 2014. And really for yum as well. This is a case where fast food in china has been under a lot of pressure. These guys are recovering faster yum in china. When you consider china, hong kong, south korea, russia, this is 25 of mcdonalds sales. The fact that its growing this fast have s very good for people frustrated with mcdonalds top line even though the u. S. Has been the bright spot of late. I think there is plenty of ammunition for a multiple in these markets that actually makes sense for me. Not expensive, not in these market, not in the dividend yield where. Else are you getting the growth from a company that hasnt grown before . Is there a risk to this particular kind of growth . Easterbrook indicated that they would entertain using franchisees as well as licensees in order to exstand in china. They lose control. Valuation has gotten extreme. I think people are very surprised in the move its had. Very safety oriented trade from the perspective there is a catalyst here. The catalyst is they introduced some new products. All day breakfast. How long that k that last and be a meaningful driver . I get the expansion. The catalyst was in the real impetus for the stock to move higher was the fact that management really was making sort of this restructuring difference. They still are. Probably still has. Still on the number here. You talk about 22 times, 23 times . I think so they can get an earning per share level 7. If you put a 22 multiple, youre looking at 155, 160. Thinking is a stock that hit an alltime high this morning. Glad i was there. Think about where else you go. What did you do before . If you go to yum, yum probably has some upside because they crushed yum already that was over. Probably 10 of the upside in yum. But this is an alltime high for the stock. You want to buy a stock at an alltime high . Listen, when tim did that thing with the menu. The kiosk. Refreshing. 103 was an alltime high and its been off to the race since. You can make an argument the last three months its been making an alltime high every single day. Theyre pulling all the levers. Sold. Markets closing out in a high note. One firm says this is just the beginning. Find out what Deutsche Bank says the s p could soon rally another 7 from here. What has them so bullish. Im melissa lee and youre watching fast money, on cnbc, first in business worldwide. In the meantime, here is what is coming up on fast. Put me in coach, im ready to play and were ready to do just that. Because if you have been sitting out the rally, weve got four stocks to get you back in the game. Plus thats basically whats been happening to the consumer trade. Well tell y the one thing that could send the entire space shooting even higher. When fast money returns. Became a stay over. And a parade rained on the sales teams parade. And they still made the meeting, without actually going to the meeting. Before any of this, cdw orchestrated a mobility solution, using the hp elite x2 1012 with intel core m vpro processors. Mobility by hp. Orchestration by cdw. Welcome back to fast money. Think the consumer trade is on fire . Well, its about to go even higher. Its got a Little Something to do with gas prices because u. S. Drivers pay the cheapest quarterly gas prices in 12 years, with gas currently at more than 50 from the february lows. Americans saved nearly 10 billion this year. So what does that tell you for retailers . For restaurants stocks . For travel stocks . Well, you see what has happened. Names until recently priceline set a ridiculous move to the upside. What does it they for mcdonalds . But i will say this. Any savings the consumer is getting on gas, theyre paying for it in spades on the other end, the other end being health care. So i get the savings in gasoline. But its not like its savings and nothing else there. They are absolutely paying for it on the back end. Yeah, its interesting. Just looking at spending habits and the way the millennials are coming up, i look at home shopping, what have you. I dont know. Home decor, what have you. Looks like a place to maybe take a look at. But i tell you what. The spending that theyre doing, youre right. The lower end franchise type businesses from fast food, theyre not necessarily benefitting from this at all. And you look at the spending habits which have shifted dramatically going in that impulse buying when youre shopping. Youre shopping online. The impulse buying mechanism is gone. Its off the table. So you look at the amount of business. You look that amazon is doing, theyre not walking into the store and actually buying one thing and impulse buying something else. So i think its going to i dont know that its necessarily going have the impact that you think it might. Have had plenty of impulse purse online with the Free Shipping and what not. I almost bought the time life british invasion series until i woke up the next morning and decided not to. I look at lower gas prices, its getting to a place, feeding to some of the more profitable parts of the auto chain, especially the pickup truck, et cetera. We have talked about the lack of follow through for the consumer here. This shouldnt be a major surprise. Because guy brings up a point that not only are these people spending it in other places, but really, job security, i dont think other places, i dont think they have it. Coming up, its been a bumpy ride for delta. But one trader is betting theyll hit new heights. And later, the consumers are lining up for teslas new 3. What it means for tesla shareholders. Much more fast money right after this. Youre an at t Small Business expert . Sure am. My staff could use your help staying in touch with customers. At t can help you stay connected. Am i seeing double . No maam. Our at t buy one get one free makes it easier for your staff to send appointment reminders to your customers. And share promotions on social media . You know it now im seeing dollar signs. You should probably get your eyes checked. Good one babe. Optometry humor. Right now get up to 650 in credits to help you switch to at t. Tim, you want to feel my beard again . Get the comb out. I want to comb that out. Ew. Just for men. We can put beads in it. Youre watching cnbc, first in business worldwide. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back to fast money. Stocks ending the day slightly lower after posting a strong month. All three indices seeing their biggest monthly gains since last october. The dow and the s p managing to end the quarter in a green, the second month in a row with a massive comback. The nasdaq posting a loss for the quarter. Its only the second negative quarter for the nasdaq since 2012. Here is what is coming up in the second half of fast money. Despite the major comeback quarter, not every stock has jumped on this rally. The traders have four stocks they think are about to break out. Plus, no big rush for apples new product. But fans are clamoring for the brandnew tesla model 3. And they dont even know what it look likes yet. Is tesla having its apple moment . The next stock remains bullish. He says watch out for janet yellen. He serves a Deutsche Banks chief International Economist. Congratulate great to have you with us. Thanks for having me. You think janet yellen has to sort of i dont want to say man up, but get the courage to do something this point. Six months ago they were saying we need to see inflation go up. Now its going up and youve seen a clear uptrend in inflation. And now she is saying now there is another issue, mainly National Developments im starting to worry about. Its a little bit difficult for markets to interpret. Are you saying inflation is something youre watching or it is a cover for talking about the dollar. Is tomorrow really the jobs report, every jobs report is important in some way. But in terms of desiefcipheringn the fed is going to raise, does it not matter this particular report . I think it matters a lot. Jobs have been one of the key indicators that have been very well. We havent seen much of this International Worries show up in the jobs numbers. And thats a very important issue that we have continued to see job creation being very strong. A number of reasons for that including low productivity, other stories. By tend of the day, if jobs continue to do well, its basically more and more difficult for her to remain dovish. Lets go to the Global Market or the world that people think and weve had so much attributed so much market uncertainty and yellin as well to china, to the eu recovery, to places where economic recovery seems totally supported by central banks. It is as bad as first of all people were pricing back in march excuse me, early february, late january . Or are things, you know where are we on the International Scope . Because if that is really what is holding the fed back, maybe its not that bad. The whole question around that is if were waiting for china to be fixed before the fed can hike rates, well have to wait quite some time. So thats why in some sense it was definitely bad and is certainly not that the world is doing particularly well. But the key is issuing this as a reason for holding back becomes really complicated. Because should the fed be focusing solely on domestic considerations or should they be look as much as they are doing at the moment at interNational Developments. Torsten, what do you make of the bond markets globally . 30 of all bonds issue have had negative yields. Japan is negative. German ten years are less than 0. 02 of a percent. What is that telling you . Its really important. U. S. Treasuries are 50 held by foreign treasuries. Its not all about what u. S. Fundamentals are doing. Its as much about what are rates abroad doing. And if rates abroad are very, very low, in many cases negative, if youre a real money manager sitting in europe or emerging markets, you look at that and say well, should i invest in european rates which pay me zero for the next ten years or go to maybe u. S. Yields, potentially going up a bit. But the level of u. S. Yields is just so much higher than what you get elsewhere. That means that foreigners to a very large degree are driving the level of u. S. Rates at the moment. Not so much u. S. Inflation or the employment report tomorrow. And 2200 on the s p 500 is the banks forecast . We think fundamentals will continue to do well. And the employment report tomorrow, we have 175,000. Adp was 200,000. You really could ask the question. Where is the slowdown that everyone has been work e worrying about. The macro picture is not showing it. Torsten, weve got to leave it there. Thanks for coming by. Torsten slok, chief International Economist at Deutsche Bank. The problem is left off that if the market is doing well and the slowdown that everyone is talking about isnt really there, it gets to where guy tick kicked off the show. Theyre kind of backed into the corner to the idea of raising. Although i dont think they will, theyre backed into the corner to the idea that makes people want to sell the overall market. What i want to know also is a lot of people are saying earnings will shape up in the second half to year. Its a very back end load story. But Interest Rate hikes are a back end loaded story. It looks like its going to be in the back end of the year and that could be headwinds for corporate earnings. Kick it down the road. If youre going see more investment coming in buying the u. S. Treasury, youre going have the dollar for a period of time. Youll see dollar rallies. Look, i think earnings are an issue. I think there is a lot of backend loaded quarters in parts of retail, in parts of the Consumer Sector in particular. But id say its very dangerous times right now from the perspective or, and im a bull. You guys know ive been very constructive on this market. Youve got to be very careful. These manufactured earnings are going to go away at some point in time. When youre gone, you have to be very, very sensitive to that. I dont see topline growth picking up meaningfully to offset that. Anbang and kate rogers at headquarters. Thats right. We do have more information on the dropping of a 14 billion all cash deal from anbang, bidding for starwood. They walked away from the deal. We just got a statement from the Consortium Led by anbang saying, quote, we were attracted to the opportunity presented by starwood because of its high quality leading global hotel brands, which met many of our acquisition criteria, including the ability to generate consistent longterm returns over time. However, due to various market considerations, the consortium has determined not to proceed further. Remember, the marriott deal is what is still left on the table. And starwood could potentially go back to marriott that deal is 13. 6 billion, valued at about 79. 53 per share. The starwood shareholders are scheduled to vote on that offer on april 8th, melissa. So well have to keep an eye on it and see what is next. Back over to you. All right. Thanks so much, kate rogers. This is obviously a consortium and an Insurance Company that is intent on doing some sort of deals. Theyre involved in many other deals. Does this put other hotels in play . I think you also have to question how much is marriott paying for starwood . And were they forced into the deal because of survival of the fittest and consolidation of an industry that is getting very, very tight . I would be wary on the marriott side here. Ultimately starwood has shown enormous growth. I think the sector has outperformed. Were at valuations that may be getting tougher to jestify. This isnt a place i think these things should trade at massive premiums. Starwood mentioned survival of the fittest. Charles darwin had a righteous beard. Not a Steven Grasso beard. Does that mean his beard is not righteous . Keep it up. Do you think darwin should use a little just for men . And then the next question a little dab will do you. Thats brillo cream. Still ahead, anyway, missed the rally . The traders tell you the four names that are about to break thought if the Second Quarter to help you play catchup. Thats next. Plus, where is the hype . Apple fans didnt come streaming into stores for the newles and ipads. Are the new products a big flop . We have a fast money special report still ahead. Stay tuned. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Welcome back to fast money. Stocks have been on a wild ride this quarter, but not all names are able to jump in on the recent rally. So which were the biggest losers . One guy who no one has ever, ever called a loser. Hes got all the details. Hey, dom. Melissa, you are way too kind. Ive been called a lot of names, and i probably will continue to be called them. But lets talk about perhaps some of these guys that have underperformed maybe looking to possibly bounce here. Lets take a look first at all at what is happening with the health care sector, one of the worst performance in the s p 500 this year. One of the mega cap, and were talking over the 100 billion Market Companies that has lagged a little behind is gilead sciences. Its about 9, 10 just so far year to date the question is can it play catchup in the battered health care sector. On the tech side of things, youve got intel. Huge Semiconductor Company. Its down 6 year to date. Also one of the mega cap stocks that maybe could be due for a rebound or continue its down ways. Consumer discretionary, amazon. Com down 12 year to date. One of the big losers on the mega cap side. And with consumer staples. I should point this out. One of the better performing sectors, income sector out there. But one of the laggards is pepsico. I say laggards only because pepsico stock is still up 3 so far this year. And its lagged some of its peers in the sector. So maybe due for a bounce. But some of those laggards perhaps due for a bounce maybe if they can catch a bid. But again, melissa, its all about whether or not that catchup game contins. Back over to you guys. All right. Thanks so much dom chu back at headquarters. So any of these names worth a buy . Grasso . When you look at it, i think xlp, thats your staples. Youre hunting for that because youre hunting for yield. Okay. Pepsico, as dom just i wish we still had him here, because i have a question. But pepsico dont do that. A name you want to be in. But if you look at all these other thames you have procter gamble, cocacola, alteeia group. I still own altria. You want to be in staples be, you would pick another name. Not that loser. Amazon is a little scary. Traded down below 500. Its at a Pretty Amazing rally since that february 10th or 11th date. What does it mean . It means this move to 600 is basically a 50 correction of that range. Last quarter was a very 2014like quarter from amazon. They report in a couple weeks. They better pull something rabbit out of the stock this time or its headed back down. Amazon, i love it longterm. I agree there could be some weakness near term and choppy. Id be a little cautious there. Gilead, however, gilead is a rock star stock. They have a franchise that is deteriorating a little bit, their hcv that investors think is going to peak in i think its 2018ish. I dont think its going the peak in 2018. It can continue to grow through 20. And then its a 20 billion franchise for the next five years. In the meantime, theyve been very clear about buying a company. They need to bolt on a big acquisition. If they can do that successfully, lights out. Lets get to the catchup trades that these think could be ready to break out in case you missed out on the rally. Tim . We caught up a lot in the a lot of the big retailers or apparel manufactures had recovery. Ralph lauren did not. Thing is a turnaround story going on there. Trying to engineer two things. Better sg and a. Try not to dilute the brand. Ultimately there was too much discounting there was too much ralph lauren. The valuation 14 times makes a lot of sense to me that. Is one i would stay with. Im long the stock. Youre talking gilead, your catchup trade . I know the sentiment is terrible. I totally get it. But im looking at the market right now. And i can identify many sectors where fundamental analysts cant make a justification, a rational decision to jump in based on their mandate. You look at a sector that has been beaten down, really beatin down like the biotech, sentiment is awful. I get it. But fundamentals are very compelling here. Youre looking at stocks that are 20 growers over the next five plus years. The returning capital shareholders and a decent clip. These are real franchises that are incredibly cheap here. So i take a look at ibb from an etf way. Grasso . Disney down 5 year to date. Recent high 120. Recent low 86 bucks. Whether youre a skinny bundle guy like tim or a fat bundle guy like myself, this is going to have huge margins. Youre talk bundles. Its going to make your face look full, steve. I dont know come over here. Give me a kiss. Go on. I think you want to be here. Ive added some on the way down. I do think it has to hold number one, the 100 day, which is 95. Number two, if you want to get in now, its got to hold par. Its not there yet. Wait for par to hold for three days and get back in. Guy . Whole foods markets has been the last couple of years where this stock has been deteriorating why. . Because valuations didnt make sense and competition sort of caught up to them. But now valuations in 19 times forward earnings makes a little more sense. Obviously still more expensive than kroger. But lot more reasonable than it was year and a half ago. And you have a big shortage, about 10 . Last quarter wasnt great. But you saw what happened at the fresh market tfm a couple of weeks ago. Im not saying it will happen with whole foods. But i think the space is back in play. I think there is low risk, high reward to be long the stock at 31 bucks. Still ahead, drivers around the world are lining up to secure the new cheaper tesla model. Whats got them ready to pay for something they have never even seen . Well explain next. Next, well tell you the one beaten down Airline Stock that traders think are about to take off. Youre watching fast money on cnbc. Before a movie star unwittingly gave you a global product endorsement. And millions of women everywhere decided, i love that shoe. And the companys data center handled the spike in traffic without any drama. Before all of this. Cdw orchestrated a Scalable Software defined Data Center Solution using vmware nsx technology. Scalability by vmware. Orestration by cdw. What you need know about this market as wall streets quarter comes to an end. And a rare kudos from me to an analyst who nailed it. Plus, i welcome back to fast. Delta is up 13 from february lows. One trader says shares about are to fly even higher. Mike khouw with all the details. Hey, mike. With ve times the daily average call volume, the big trade we saw was somebody rolling one of their bullish belts in the april 49 calls out to the may 50s. They paid 1. 85 for a thousand contracts which represents three million shares. These are bullish bets that the stock is going to be above 51. 85 by may expiration which is up 7 1 2 in about 50 days. If you take a look at how this stock performed, it makes sense to play wit option. Why . Because beginning in the early part of this year, it dropped about 20 and it has subsequently rallied about 20 . So it can really move around in a short period of time, risking a small amount to make a lot. Thanks for that, mike. See you tomorrow. Tomorrow friday. 5 30 eastern time for the full options action. Love show. Back. Welcome back. Apple. The companys new products hitting the shelves today to a little bit less fanfare than usual. Josh lipton in palo alto right outside an apple store with all the details. Hey, josh. Well, melissa, at this store right behind me here in downtown palo alto, customers were checking out those products today. They were also met with a surprise. Ceo tim cook was here today. He was talking to customers, posing for selfies with fans. Who were buying that new iphone se. Its powerful, relatively cheaper at 399 bucks. But its that smaller size that really won over the customers i talked to. The size was really attractive to me. Ive been looking at the other ones for a while, the 6s. But i dont want a real big phone. I just put it in my pocket and carry it around in my pocket. And i dont want a big thing. So when they went back down in size, i decided to pull the trigger. Now of course the se is meant to appeal to exactly that subset of consumers that prefer that smaller phone size. Also at 399, it could appeal to more price con success consumers as well, especially in emerging markets. In addition to the new phone we have the new smaller version of the ipad pro today as well. Actually caught up with an Emergency Room Physician at stanford. He bought two of the new ipads today for use in the hospital. And thats because he told me he sees greater use for the ipad in the workplace. I think the forces of business and also in my own world of medicine will make changes. And i do believe specifically in medicine there will be great applications in the future. Reporter now we know the ipad has been a disappointment at least to investors. But when i talked to tim cook, he remains confident in that product because he believes that more customers just like that doctor are going to find real value for the ipad in their places of business. Melissa, back to you. Thank you so much, josh lipton in palo alto. So as you saw there, there werent really any line theres for the new apple iphone se or for the new ipad pro. But there were lines, long lines for tesla. In fact, take a look at these customers waiting around the world to put down a deposit on a new 35,000 electric vehicle that they have not even seen yet. Elon musk tweeted earlier, incredibly inspired by the interest in model 3. You wont be disappointed. Also, a small token of appreciation for those who lined up. Opening an hour early tonight, 7 30 p. M. Pacific time because of the expected high dad eed h. At one point in time people would be lining up for apple products. And now were seeing that for tesla. At the time people lining up for the thats lab, apple was a hot stock. The metaphor goes hurt. This is the mast market time for the tesla, for the t3. If theyre going to do it, this is the car to do it. Apple is doing it for the masses. As i said last night, they timed it almost its been a sell the news kind of a moment. But i think the big issue for tesla, and i go on and on about this is competition. I think the gm volt is something people forget about is already out there. Thing is a time that tesla really has to figure out are they going for the luxury high end or are they really trying to be the mass. Im not sure they get the mass. These are the levels we broke down from. If you look at this price point, 230. It shows where we broke down from the beginning of january, end of december, right up against it now. Its had huge run from the 140 level. I think they report in a couple of weeks. I know a lot of people very positive on the stock. But now were in the prove me zone. So if by some miracle you have enjoyed this runup for the last 50 or 60, i think its incumbent on you to at least take money off the table. Apple or tesla . Am. Tesla has to hold the 200day moving average. But its so dumb to line up. Come on. Around the world. Line up for an apple phone, you walk away with an apple phone. When you line up for a tesla, you come out with air. Meaner without the beard. Grouchy. Its a hype stock. Its out of momentum. And they cant produce one car, let alone three cars. Ill tell you. What would i rather like it depends on the time frame. Id rather own apple right now given the valuation, where longterm tesla is going to work. And id wait for a pullback. Guy says i would step in and buy tesla and own that longterm. But apple is a great parking spot for the near tirerm. Were just attend of hockey. I was just thinking that. Hes got the playoff beard. Thats what is going on here. Thats what he is doing. I like it. I love i think he lost his razor. Coming up on mad money tonight, cramer is taking on the Radius Health and seres therapeutics. Coming up next, we got the final trade. Dont go anywhere. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Youre an at t Small Business expert . Sure am. My staff could use your help staying in touch with customers. At t can help you stay connected. Am i seeing double . No maam. Our at t buy one get one free makes it easier for your staff to send appointment reminders to your customers. And share promotions on social media . You know it now im seeing dollar signs. You should probably get your eyes checked. Good one babe. Optometry humor. Right now get up to 650 in credits to help you switch to at t. What you need to know about this market as wall streets quarter comes to an end. And a rare dude coast from me to an analyst who nailed it. Plus im looking for opportunity in the beaten down biotech sector. Mad money is next. Welcome back to fast money. Time for a little fast, but definitely lot least. You may have noticed some of our traders have quite the eclectic tastes. Back this september we had the phenomenon that was tims vest. Took the twitter sphere by storm. And now Steven Grassos beard which is blowing up on the interweb. So we want to hear from you, america. Which do you like better, tims vest. Would you rather tims vest or grassos beard . So you should vote. Tims vest. Oh cant do that one . Marry it. Can we implement a trade . We can a trade and then also a choice. Do that. That would be something. So remember, final trade plus how you would vote. Vest or beard. Mcdonalds. Theyre doing more than breakfast. And i would love to have steves beard on top of that vest. Thats how i would do it. Very nice of you. Final trade. Ametek. The second best theyway to play. As far as which one, i got to go with the beard. I think the beard looks good on grasso. Thank you. It look likes a 25yearold kid. I want to be clear on the final trade. It was applied material not the company we had up before. Im max. Heavily dependent on revenues from china. And i think they wind up getting a little unfairly persecuted because of the weakness in china. Im imax. Your going to see the stock bounce back. Its down 12 . Keep it on a short leash. And of course the beard. Too sexy grassos beard. Back to you, mel. Im see you tomorrow at 5 00r fast money. Mad money starts right now. \s. 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 promised to help you find it. Mad money starts now. Hey, im cramer. Welcome to mad money. Well can um to cramerica. My job is not just to entertain, but to teach and put in perspective. So call me at 180074 pcnbc or tweet me jimcramer. When we look back at the quarter we just laid to rest, it was the tale of two