First we start off with the market, stocks surging today, posting their best gains since midmarch. Rallying by more than 1 . Heres what was really interesting. Stocks rallied along with the dollar, along with crude, while we watch bonds sell off. Are we finally breaking out of the range and it is now time to finally give up that bear suit . Biggest bear on the desk, b. K. Oh, me . You and your bear suit. First of all the answer is absolutely not. Primarily because b. K. s not in the habit of buying into a major Monetary Policy mistake. If the fed raises rates, its going to be a huge problem. This is a one day event. We were down the other day. Weve gone nowhere. The one thing i will say that concerns me from the bearish side is everybody seems to be bearish at this point in time. You could get this fomo rally. Thats the one thing that concerns me. Beyond that, nothings changed fundamentally. We had horrible industrial numbers today. The dollar is rising. If the fed raises rates, the dollar will continue to rise. So for me, no change in my view. What is different is the rotation that weve seen. Bears like you, b. K. , you pointed to the fact that we have the rally in energy, in materials, sort of junk rally leading the way. Now weve got technology. Technology. Financials. Financials. Health care. Were starting to see the paper flows into the right sectors that youd want to see. I understand where b. K. s coming from. Pause quite honestly, were still within the range. Weve been in a very tight race for a very long time. Volatility, absolutely crushed. There are reasons why you can sort of understand right now why you might start to look at this thing in a somewhat bearish way. On the other side of things, though, technology started moving about a week and a half ago. Two weeks ago. Smh is pushing toward 56. Look at some of the chip names. Suddenly you get the extra little boost because of apple and some of the story lines of yesterday. Then its the financials today. Whether or not that means that people are starting to buy into the idea of a rate hike, maybe they think the curve might not be as flat as everybody expects, whatever the case, im just saying that at least today we did see the financials start to get a lot of where do you stand on this whole thing . I tend to be more bullish. But its the names i tend to like, too. Cisco rallied today. I look at salesforce. I like both those two names. I look at the names that are actually working and who produced when it kams to earnings season. Relative to the overall market, if you look at the s p 500, its less than 3 from the alltime highs. Im looking at the nasdaq, down 7 from the 52week highs. Russell 2,000 down 12 . B. K. , to your point, the s p is still in a downtrend here. I dont think you have to unzip anything until you see a solid move above 2100 in the s p and establishing a new base. You also need to see dont you like the rotation, though . That theyre going from the dash for cash in the last year and a half, thats all weve had is a bunch of rotations out of this sector, into that. Where has it gotten us . The s p 500 is in the exact same spot it was 18 months ago. And heres the biggest thing. Isnt that bearish . Youre attacking it more from the bearish side than the consolidated side. It is bearish when you think where we are in the whole rate cycle, where you think about the moves to the upside. Weve only gotten these bounces off of sharp declines. Weve not seen acceleration from highs to new highs. That to me is very poor. And weve seen breadth that has been weakening. The prior leaders are not doing the heavy lift i right now. Energy continues to move higher. Which is in the bull camp, right . In the bear camp, one of the best twoyear auctions. One of the best twoyear auctions weve had in quite some time. Which somewhat counterintuitive given that the fact that everybody thinks were going to see a rate hike. The chip move started with inindividualia inindividualia invidia a couple of weeks ago. Apple news yesterday is helping. Weve talked about oled university. Theres something for everybody absolutely without question. I can see what b. K. Is saying, and dan is saying and pete is saying. But we find ourselves exactly where weve been for quite some time in the s p. Where do you stand on it then . Look, i still think the yield curve is flattening out. It is flattening, no denying it. The summer of 2007, i dont think thats particularly bullish. I think the market is saying, rates are being raised because the economys getting better, which is why youre seeing do you have to go with the market or if you dont go with the market, you get run over. At a certain point, though, your thesis will be right or wrong. But lets be clear. You dont have to trend the s p 500. Theres 9,000 stocks out there. Theres multiple different asset classes. For me, the easiest way to play this, if you think the fed is going to raise rates, why not just buy the dollar. That seems to be the nobrainer trade out there for me. I dont have to worry about earnings are going to be. So you buy the dollar. Does that mean the gold trade is over . Guy, does that mean the gold miners are over . The last week it indicated the gold trade is over. I dont think the gold and dollar are linked anymore. It has been for the last week so ive been wrong, absolutely. But i think at a certain point the gold bulls will win out. Its starting to upset me a little bit, but i dont think you can you have to are bearish gold if youre bullish the dollar. The gold and the dollar rise together under one very unique circumstance, when the fed is raising rates, and Inflation Expectations are rising. Thats exactly the scenario we have right now. That relationship broke down over the past week. Im talking 90day correlations. Rolling 90day correlation. You know, if it happens for a quarter, maybe ill change my mind. The s p is going to rally 10 from here says our next guest. Edgar joins us on the fast line. Ed, what do you see that the guys here on the desk arent seeing . The recession around the corner, i dont see it. Bear markets generally anticipate recessions. Remember how panicky everybody was at the beginning of the year. Midfebruary, we made an important low. And back then i was on one of your programs, and suggested the market could be up 10 . I didnt think it would be up 10 in two months, but thats what it did. You know, the bottom line here is, even if the fed goes in june, were still talking about historically extremely low Interest Rates. I do think that the dollar is going to continue to strengthen. I do think some of the panic, concerns about Commodity Markets were overdone at the beginning of the year. Believe it or not, the earnings picture is starting to improve. I think whats been under the radar screen here is, weve come out of the latest earnings season with the numbers revised up going into the rest of the year and next year. Not because things are going to get a lot better, i think its because weve been too pessimistic at the beginning of the year. But the lack of the recession around the corner does not equal the s p 500 going up 10 . What are the conditions you need to see in order for you to stand by that 10 gain . If were not going into recession, i dont think well go into a coma here. I think the economy will continue to grow and i think earnings will my 10 target is for the middle of next year. Basically a year from now. Over this year period i think earnings could grow 6 , 7 . I think global revenues can grow to that amount. Im not expecting the profit margin to go down. I think it will stay around here. A garden variety scenario. Its actually the most likely scenario if you dont think theres going to be a recession. So youre talking about fundamental inputs here. Obviously if the fed were to raise and continue to raise throughout the course of 2016, some of the fundamental aspects may be challenged, right . I look at your blog, its fantastic. You have a lot of charts on there. We were talking about the s p. There are other things to trade other than the s p. But i make the point that the s p is the best performing, also the largest. Everything else really acts like garbage, when you think how far off of the 52week highs the dax is, nikkei, shanghai, that kind of thing. Transportation stocks, too. Right. When i look at the s p, i see a rolling top. I see two consecutive lower lows, con sec tef lower highs. I see the february high, i see the first lower low that existed since the entire rally started in march of 2009. To me the technical setup looks kind of treacherous. I appreciate what youre saying. Some of my best friends are technicians. But i will say when you look at charts, youre almost assuming its the same people that are driving the charts. I think whats really changing this bull market is the key players have been Central Banks in cahoots with Corporate Finance managers. Corporate finance managers have been buying back their shares, have been buying other companies. I know theres controversy about that, whether that continues or not. But i think with bond yields worldwide, likely to say low with the ecb buying corporate bonds, i think youll continue to see buybacks in m as. Thank you, ed. Faung for phoning in. What do you make of eds thesis . Thats the thesis, to the people that have had it, theyve had it right. They accept the little move in february. Companies buy back their shares. Ill say this, everybody should watch sanzel this morning on squawk. He made interesting cogent points. One thing he did say is he doesnt understand the negative Interest Rates and he doesnt understand how it all ends well. I encourage people to listen to what he had to say. Shares of hewlettpackard enterprise surging on news of a spinoff. And an unlikely strategy that is paying off bigtime for investors. David faber will join us for a special report. Is snapchat on its way to be the next facebook or twitter. And later, just how worried is the market about a potential donald Trump Presidency . The answer lies in one chart that could be signaling big trouble ahead for stocks. Well explain when fast money returns. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Now its more than aet mnits reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. News of a spinoff and merger, could the move signal bigger isnt necessarily better when it comes to meg whitmans company. David faber has all the details back at headquarters. Melissa, thats right. Hewlettpackard enterprises, news of the deal, a spinoff of the Enterprise Services business and merge it with csc. You can see hewlettpackard up over 10 for its part csc up over 23 . You can see it right there. The deal itself is being structured as a merger of equals and structured as taxfree to hewlettpackard shareholders. It will combine a company with some 26 billion in revenues. And owned 50 50, 50 by hpe shareholders and 50 by the existing shareholders already of csc. As part of the deal, the combined company will pay a 1. 5 billion dividend to hpe, and presumably 2. 5 billion worth of liabilities. Theyre getting the 8. 5 billion number, the value that they in the negotiations theyve had with csc put on the Enterprise Services business. Once its jettisoned, hp itself will be a Smaller Company. On the conference call, meg wittman was talking about that future for that company and what will be left of hewlettpackard enterprise. For the remaining hewlettpackard enterprise, this transaction creates significant incremental value. By unlocking a faster growing, higher margin and stronger Free Cash Flow business. Hpers will now have 33 billion in annual revenue and will focus on Software Infrastructure that leverages a world class platform. There you have it. That is what hpe will be once this deal is completed. That is quite some time from now. Were talking about the end of march and 2017. Given the consolidation many are forecasting in this area, you never know if this is a possibility of somebody trying to jump the deal. Given the performance of csors stock prices, it makes it less likely. Youre talking about a Global Player now in Enterprise Services in a big way. That is what they were hoping for. Certainly when they draw up these kind of merger vehicles in a somewhat complex deal, theyre looking for that kind of response in the marketplace. Perhaps it took a little while. Of course, it is after hours. But that is quite a move for both stocks at this point. And whats left of hpe is 33 billion, largely the Enterprise Group itself. It had a pretty good quarter overall. 10 out of the Enterprise Group, 10 Constant CurrencyRevenue Growth for that unit. David, in the release they said this is the next logical step in the turnaround. What is the next step then . Is it hpe, the Smaller Company remains independent . Walk me through the way the chess pieces might move. Thats a great question. By the way, ill put it to meg whitman tomorrow morning when she joins us on squawk on the street. Weve been having a conversation thats gone on for years. We talk every quarter, and in between. Shes talked so much about how quickly the world is moving and how she needs more focus. That really does seem to be kind of the strategy shes followed, by pairing this company down to a manageable size. 33 billion is a fairly Large Company in terms of annual revenues. But its focused now. Shes certainly happy about the quarter they just reported, pointing to some of the decisions she made years ago. Including increasing r d spending and saying theyre starting to come to fruition. David, it seems like it shores up their Balance Sheet a little bit. I think theyll buy back stock, but does this allow them to make an acquisition that would make sense given the size of their company . They said previously as well, guy, that they might be considering Something Like that, or certainly it was part of the strategy, once they did the split. And youre right, theyre going to be buying back as much they have an authorization for as much as 4. 8 billion in. They werent buying back stocks during this ka quarter because they were negotiating the deal. Thats a lot. When youre talking about a 30 million market value, how much can they conceivably free the float. Your point is a good one. I dont know what the strategy is. But it would certainly seem a possibility. David, thanks so much. We look forward to the interview with meg whitman tomorrow morning. What do you make of the stocks . Acting as if its the best thing since sliced bread. Now you have more clarity about their business, and what meg has envisioned it sounds like for years. If you want to extrapolate this somewhere else, you look at the work shes done in the last five years, look at ibm. Theyve lost basically 37 billion in sales off their peak. 107 in 2011 to expected 80 this year. What is going on over there. They had the big clunky thing. When you look at what shes done, you say to yourself, how is that board not looking at hp saying what in the heck are we doing over here. Steve, where would you stand on this . I think you make a good point. We all look to ibm because were all curious about it. Whats the board see and what is the plan there. It looks like hp wants to put all growth in one area. To your point, guy, do they want to use the Balance Sheet to be able to make some kind of an acquisition. There are plenty of acquisitions out there. Who knows what direction she really wants to bring this thing. So i dont know anything specific right now. But i think its an interesting thing. Shes obviously focused on growth. And are they looking for security. Where would she want to go, that would make sense to me. Buyer of the new company or hpe . I would be buyer hpe. But i would want to trade for a bit. Still ahead, the lucrative world of esports. What is threetime nba champion fox saying the space could be offering up the next big sports gold mine. Find out where hoes pes putti money to work right now. Heres what else is coming up on fast. America, this man is getting closer to being your next president. My new game is trump, the game. The game where you deal for everything youve ever wanted to own. If history is any indication, it could mean a big move is in store for stocks. Well explain. Plus, a new report valuing snapchat at 22 billion. Legendary investor will tell us if its the next facebook or twitter when fast money returns. Weve got breaking news on monsanto. Lets go back to david fabe i didnt have to leave here. We want to tell people, weve gotten a statement from buyer, this responding to monsantos rejection earlier today, 122 all cash offer to buy that company. Bayer saying were pleased the shares are released from the substantial benefits it can provide. Were confident they can address any potential financing of regulatory matters. Most importantly the Company Looks forward to engaging in constructive discussions with mon sapto. As we pointed out earlier, monsantos rejection is the best people could hope for, including bayer, because it didnt of any concerns on regulatory. Price was the key issue. It said, monsanto looks forward to discussing the deal. It does appear the two sides are moving towards what would seem to be a potential negotiation here to see if they can get something done at a price that is met with approval by monsantos board of directors. You would read constructive meaning theyre willing to raise the price . Yeah. This is about price. If they can get to it, it would seem, bayer will be in a position to buy monsanto. Monsanto not bringing up those kinds of things if you were pursuing a strategy to make sure it was anybody but bayer, or anybody at all you want it to be sold to. David, thank you. Twofer from david faber. Dan . Three times average daily volume. One of the things thats interesting, one trader expressed a view in the Options Market that basically said that that refuse wal was nothing more than posturing. Today when the stock was 109. There was a seller of 5,000, the october 92 1 2 puts all the way to the down side. They used some of the proceeds to buy 5,000 of the october, 110125 call spread. That position cost them 3. About 1. 5 billion in premium. The worst Case Scenario the trader is basically put 500,000 shares of stock on the october expiration down at 92 1 2. Or they have Long Exposure from 113 up to 125. Theres a couple interesting things about this trade and why it may work out. When you look at chart right here, 95 is basically this gap level from when the rumors started a couple of weeks ago. And 125 when you look at this, this is basically the 352week high. You could say maybe these guys are looking to have a price that matches that. I just want to make one point. Why do they sell a put and buy a call spread . They end up being short two options in the trade structure. Look whats happening to the options in monsanto since the rumors started. Shot up to twoyear highs here. This is a scenario that if youre uncertain about whats going to take place, you have conviction, you want to look to mitigate the decay of the options. Check out the full show at 5 30 p. M. Eastern time on friday. Coming up next, snapchats valuation is the wildly popular and fast scoring mobile app. Quickly becoming the next facebook or twitter . One of the original investors in facebook will weigh in. Later, the booming business of esports and what has some analysts saying it could soon be a 2 billion industry in just a few years. Julia boorstin has the special report. politely wait, wait, wait you cant put it in like. That, you have to rinse it first thats baked on alfredo. Bakedon . Its never gonna work. Dish issues . Cascade platinum. Powers. Through. Your toughest stuckon food. So let your dishwasher be the dishwasher. See . Told you it would work. Cascade. No, youre not yogonna watch it tch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. Welcome back to fast money. A huge rally on the street today. The dow soaring more than 200 points. The nasdaq up 2 . With todays gains, the s p and nasdaq now positive for the month of may. Heres whats coming up in the second half of fast money. As donald trump moves closer to officially clinching the republican nomination, weve got the shocking chart that says a President Trump could be big trouble for the markets. Its got nothing to do with humorous policies. Well explain. Plus, the video Game Industry is exploding. Well tell you why it could become a 2 billion gold mine sooner than you think. Thats later on. But first, we start off with snapchat, now worth more than 20 billion. According to a new report by tech crunch. That puts it in line of the company of the elite companies out there. For more on this, lets go to the guy who is priceless in our estimation, dominic chu. Hi, dom. You know why i love being a part of fast money, melissa . Because you guys always make me feel like im in a mastercard commercial. All kidding aside, that rare company is the likes of large cap private Companies Like uber, air b and b. When it comes to the world of hot social media companies, snapchat is the latest one to grab those headlines. Two others are public, of course. But its been like a tale of two stocks. Best of times and worst of times. Heres what were talking about, melissa. Lets start with twitter, which did hit a record low in trading today. When it first came to market, expectations were very high. And back then it had a valuation of around 14 billion at its ipo price. After a lot of user growth, and perhaps some monetization concerns, the market value today, its closer to around 9. 6 billion. Has it gotten low enough to perhaps attract deep Value Investors . Big question there. Then theres facebook, which is a few Percentage Points away from a record high. It went public with around 104 billion valuation. And its more than tripled that since then. That divergence, melissa, is just one of the things that some traders are wondering about, especially when it comes to private Company Valuations like the ones were seeing with snapchat. Food for thought in the world of privatizations. We bring in tech investing legend, roger, who was one of the First Investors in facebook. Roger, always great to see you. Its good to be here, melissa. How are you . It great, thank you. More like twitter or facebook . Well, there are a lot of things that have to happen before we know for certain. I would say at this time it looks more like twitter than facebook. The reason for that is simple. Facebook had a user interface and experience that did lend itself to advertising. Twitter, by contrast, was more like the ticker at the bottom of the cnbc page, where you were trying to insert advertisements into a fast moving stream. And that just its a very hard experience for advertisers and for consumers. I think snapchat is somewhere in between the two. Im really impressed pi their early work in mon eteization, with their discover feature, and now some of the things theyre doing with sponsorship of what they call lenses, which are the filters they apply to various videos. I think those are really good. I like them better than the early work that we saw at twitter. Keep in mind, if the valuation is really 20 to 22 billion, theyre going to need to grow really rapidly to get into that valuation. I think the reason they got it is very simple. Supply and demand. There just are not very many Fast Growing Companies out there at the scale theyre at. Theres snapchat, and i think the other one would be the people who make the gift keyboard. Theyre also growing like crazy. And theres so few of those today, that i think investors who need to be in that space dont have a lot of alternatives. You have to pay the price. Roger, its dan. Wouldnt you say theres some scarcity value in what snapchat has been able to achieve in video views . Estimates of 10 billion a day, more than what facebook is doing. When you talk about monetization, that is the step forward for facebook and twitter. And these guys are already in the lead. To be clear, facebooks monetization of video i think is well, well ahead. And the trick here is with a tensecond limit on the videos, youre going to have a more lets put it this way, youll have to be more creative. Youll have to create a new form of advertising. I do think thats possible. I think they showed with the sponsorship things theyre doing around lenses and the channels theyve created in discover, i think theres more than one way to monetize snapchat. When you have that level of engagement, the future is bright. The question is, whats the right price to pay for it. I look at this and i go, i think this is the price is the price because there are not a lot of substitutes. Whether people are going to make money from this price will be determined by how successful they are at converting that opportunity into revenues and those revenues into profits. Its really early in the game. The estimates ive seen are theyre doing revenues around 100 million this year. Thats a big gap to 22 billion. Roger, it sounds like you would not yourself be an investor in snapchat because you think the valuation is exceeding what it should be, given its growth rate. Where do you stand on twitter seeing its at a new low at this point . Is that undervalued . Let me clarify on snapchat just so im clear. Its not the right deal for me. But that doesnt mean its not going to work. Just my risk tolerance right now doesnt go so far as to go to where snapchat is. But im really impressed by what theyre doing and i hope theyre successful. With twitter, thats a hard situation. The stock is coming down to a territory where to me it gets really interesting. I have not made a purchase yet. Im really intrigued by what theyre doing with the nfl. Its not enough to save the company, but it may offer a new platform, a new way of monetizing that realistically is going to be infinitely more successful than the things theyve been doing. If there were enough event based video products they could get involved in, you could see twitter being a really interesting stock. No question the product is great. But even at a new low, a new alltime low in the stock, its still not enough for you . That makes it more interesting to me, not less. Im a Value Investor in this environment. Remember, right now, i like apple. Because the stock has a 2. 5 yield and its trading at ten times earnings. So to me, when you can get apple at that valuation, how much risk do you want to take. Because i dont think this is going to be a big product cycle time for tech. I think were kind of between the big things. And there will be a lot of interesting stuff. But it will be kind of oneoff. Against that context, the lower twitter goes, the more interested i am. Okay. Roger, thank you. Tech investing legend, of course. Great hair. Yes. Amongst many other things. Good quality. Dans going to disagree with me and hes probably going to be right, but the reason i continue to own facebook, facebook is so far ahead of the curve with all this stuff, it just every time you see a valuation like snapchat is supposedly getting, more reason to be bullish. Look at snapchats valuation a few months ago. Its up 30 more. Its pretty incredible. Fast growing is great. That was something roger pointed out, fast growing. But monetization, thats the problem with twitter right now. Theyre the bottom ticker. Theyre not like facebook. To guys point, if you want to be involved right now, you want to probably be in facebook just because of all the acquisitions that are made that theyre starting to see the monetization come to fruition. A 22 billion valuation . Holy smokes. For twitter, alltime low today. Downgraded to a sell. But theres not only user fatigue amongst the reasons why, but advertiser fatigue out there these days. Right. What theyre doing is not working right now. Thats extraordinarily clear. Do you buy it as an investor . Not until you see some movement in the right direction. I dont know if it will be this next deal but you could see it rally, come back 5 , then i might get interested. But until you see momentum on, hey, this is how its going to change, i think its out of touch. Still ahead, the Hillary Clinton and donald trump showdown is heating up. Which candidate would sink the market. The shocking chart you need to see next. Jeffrey gun gundlach ahead. Y compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Dont put off checking out your Medicare Options until 65. Now is a good time to get the ball rolling. Medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help save you in outofpocket medical costs. Taking informed steps really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide and explore the range of aarp Medicare Supplement plans. All plans like these let you choose any doctor or hospital that accepts medicare patients. These are the only Medicare Supplement insurance plans endorsed by aarp. Call now and request your free decision guide. And start gathering the information you need to help you go long™. Welcome back to fast money. Republican voters are casting their ballots tonight in washington state, and the last president ial primary of the month. John harwood is in d. C. With the latest. John. Melissa, only republicans voting tonight. No suspense in the republican contest because donald trump doesnt have opponents anymore. But hes taking one more step to something few in politics ever expected he could do, and that is clinch the republican nomination. Lets look at the delegate count. Donald trump has got 1,171 delegates by the tally of nbc news. He needs 1,237 to be nominated. Hes not going to get there tonight. Only 44 delegates at stake in washington. But hes very closely getting toward the point where he will be the actual republican nominee. Now, that has consequences. If you look at the poll numbers, youll see what the consequences are. They are that donald trump has consolidated his party as the presumptive nominee. And drawn even, even slightly ahead of Hillary Clinton in the average of polls on the real clear politics. Com website. Hillary clinton, of course, is still bogged down in her primary fight against bernie sanders. Until she wraps up her nomination, we wont get a true picture of the race. But right now, donald trump is very competitive with Hillary Clinton. And in our nbc wall street journal poll, we show clinton three points ahead. There are other polls that have shown donald trump leading. This is a horse race and democrats are red identification for it. Republicans are pleasantly surprised right now, guys. As the race for the white house heats up, one Online Market shows trump might be more trouble for stocks than previously thought. Paul is the cofounder of a group that joins us here on the sit. Heres what youre seeing from the Iowa Electronics market. This is actually people betting. Iowa is a very extreme example. But hillary was all but a certainty, or democratic candidate to win the presidency less than a month ago. And 74 , its down to 58 today. To be fair, other polls havent and betting markets havent shown that extreme of a decline. Another popular one shes dropped from just under 75 to 66 . Shes come down a bit. Trump, again, is still behind at 29 . But the gap is narrowing. What john was saying before, what anyone thought was impossible a few weeks ago, is less and less unlikely now. Still a little bit unlikely. Question is, why are we focusing on this, and if you look at this chart, the democratic nomination versus the s p 500, up until two weeks ago they were tracking each other very closely. The notion that the market, for now, would prefer a democratic nominee being Hillary Clinton, because shes more predictable, and history has shown that under democratic president s, this goes back to the 1900s, pretty big sample size there, the dow has seen an annualized gain of 8. 9 under democratic president s, and 3. 8 for republicans. So theres a big disparity there. This is during their whole term . Yes. So the annualized returns, anytime a democrat has been in the presidency, is 8. 9 annualized. If you add up all those periods, versus republicans, 3. 9 . Extrapolate all this data. Connect the dots for us. Youre saying its more and more likely that a republican will win, or the odds are increasing the gap is narrowing. So that thats a probability of that 3 whatever percent gain under a republican presidency is going higher as opposed to the almost 9 gain of a democrat. Yes. You look at the democratic president s. Only two democrats have seen down administrations for the dow. And in each one, the annualized gain was less than 1 . That was wilson and carter. The history at least shows where things stand. And the markets tend to prefer democratic candidates. As someone much smarter than me once said, if ydemocrats are better for the market. What do you think of this Historical Data . Iowa in particular, it can be manipulated. Not a very thick market. It has been rumored its been manipulated in the past. I would say just be careful in making Investment Decisions on this. I would run the risk that, i think that trumps going to lose some steam in the fall. I think the risk becomes what happens to congress. And i think if it starts to look like a runaway for the democrats, then you have a different scenario. I think right now were focused on trump. But i think he has a potential to do a lot more damage to the party. And their aspirations to keep what they have in the fall. Still ahead, the biggest competition in sports, moving from the field to the screen. Well tell you why the next gold mine for the sport isnt what you think. Show me movies with romance. Show me more like this. Show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Its more than a nits reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. We have a news alert on jeff gundlach. The ceo of double line capital overseeing 75 billion, being reported by reuters that gundlach said the stock market is dead money in his words. He says this weeks rally so far feels more like a short squeeze to him. He said the stock market is not incredibly healthy. Hes still predicting a 50 50 chance of a june rate hike by the federal reserve. We should point out that gundlach at the end of april, just about a month ago, he suggested that helicopter money drop could be the next fiscal stimulus move for the u. S. Economy. Looks like a big reversal there. Thank you, susan. Im not going to go to you, or you. It is music to your ears when you hear jeff say its a short squeeze, the markets are not healthy. Somewhat. I cant believe you used the expression short squeeze. Where did we see the rally today . We saw it in low valuations in terms of tech and in the financials. Those are the two leadership areas. I dont know. It sure doesnt feel like that to me. It feels like a rotation. The grinding of the s p. Thats still in place. But it doesnt feel like anything like a short squeeze. This was not a dash for trash kind of a rally we saw today. Dead money, stock markets dead money . I understand hes saying there are risks to both sides. I think i dont want to say he used the term incorrectly. I wouldnt have used that term. I think people are chasing. If you want to call it a short squeeze thats fine. But i think his bond position has stayed the same. He thinks yields are going lower. I do as well. Esports, believe it or not, over 220 Million People like to watch other people play video games. Yeah, you heard that right. They like to watch people pray video games. Julia boorstin joins us with look at who is cashing in. Julia . Well, melissa, those numbers are pretty amazing, arent they. Whats amazing is that esports is not just for teenagers streaming video on twitter or youtube. Its ready for primetime. Today kicks off the first tournament by eleague, a partnership between turner, owned by time warner, as well as agent wee. In front of live audiences in atlanta, it will air on tbs on friday. Turner plans to broadcast on television this year. Chasing a younger demographic, desirable for advertisers, also branching off from turners reliance of traditional tv content. Not only does it offer legitimacy for the hardcore fan, but it also opens the door for a casual fan. And the potential to grow the audience. Former nba player said this tv tournament is a turning point. Another way esports teams can cash in on the booming business. Your ticket sales, your media rights, sponsorship, and merchandising, all the ancillary and traditional ways you would see a professional sporting franchise capitalize on their investment. Now the eleague sponsor includes arbys, cocacola an ongoing partner of league of legends competition. The ceo of the Immortals Team said esports has a big advantage. I think what a lot of brands are realizing is if youre trying to reach an 18 to 34yearold male demographic, its this or netflix. And netflix doesnt sell advertising. Esports is projected to grow a 1. 9 billion business by the year 2018. Thats 250 growth over just three years. Melissa . Julia, how many people watch this . 220 Million People are esports fans. They watch. They watch people play video games. A lot of that is on twitch. Which amazon bought nearly two years ago for about 1 billion. A lot of that is on youtube. Youtube has been investing a lot in this space. Youve seen this i assume. Is it exciting . You know, i dont think im the target demographic. And whats most amazing is that ive seen some of the competitions in real life. Ive seen people ive gone to some of these competitions. And i went to the world of war craft 1 last fall. I showed up expecting it to be, you know, the early phase of the competition, expecting it to be more on a stage. But it was a bunch of people playing video games in front of monitors. Its just a whole new world. Okay. Julia, thank you. Julia boorstin, fascinating story. Pete, ill go to you because really . You played real sports. This is different. This is something but the demographic is very interesting. You can understand at least theyre attacking the right demographic. Talk about 1. 9 billion. All of that is incredible to me. I would be curious about the crowd, the world of war craft. Got to wonder a little bit. What do you think . I dont see anything wrong with world of war craft. My favorite game. These cats definitely need help getting dates. Im just saying. Think about it. Im putting it out there. Driving lamb bower gorghinisg paid big money to play these. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Tmobile is going big for small business. Youll never get charged data overages, ever. Get your own 24 7 dedicated business account team. And with double the lte coverage in the last year you can get more done in more places. Right now get 2 lines with 10 gigs each for just a 100 bucks. And for a limited time get a hot spot free, yeah free. Switch your business to tmobile work today. Premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. 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I think it breaks out. Are you going to check out twitch this weekend . Im on twitch already. Its one of my favorite applications on my phone. Ill tell you something, you know what else im going to do . What . What do they do . What . Netflix and chill. I dont know about the chill part, but netflix. I dont know where your heads at, sister. Im melissa. Mad money with jim cramer starts right now. Mad money wit starts right now. My in addition is simple, to make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere. I promise to help you find it. Mad money starts now. Hey, im kramer. Welcome to mad money. Welcome to cramerica. Call me at 1800743cnbc. Talk about out of nowhere, this rally seems to have snuck up on us