Transcripts For CNBC Fast Money 20170614

A massive Balance Sheet. Lets go to Steve Leishman, he has been deciphering what the fed is up to steve. Reporter hey, yes, the Federal Reserve hiked points to a quarter point of a ragege of one to onequarter of a percent, turning up the heat and ignoring readings its the First Time Since 2008 the feds number does not have a zero in front of it. Janet yellen says the moves are justified despite weak Inflation Numbers. All that we are doing in raising rates is moving, removing a bit of accommodation heading towards neutral pace and i see that is appropriate, where were not moving so aggressively as to put a break on continued improvement in the labor market. Reporter the fed also announced a plan to begin soon reducing the 4. 4 trillion Balance Sheet. That could happen in a year, unloading as much as 50 billion in assets or 600 billion a year heres some of the stuff they will do t. Balance sheet calls for a monthly warmup capital of 6 billion that means all but 6 billion will be invested that will get up to a max of 30 billion per month quickly, heres the plan for agency and mortgage debt security its 4 billion and a cap of 20 billion. Added together thats 50 billion per month. Now, guy, i think the fed is saying, by the way, they will do one more rate hike this year, despite this Balance Sheet reduction and theyre planning to do three more next year so they have not been deterred by these weak Inflation Numbers or the bond yields, as you pointed out, they are giving up a lot of the gays they had since the election. Whats your take on what is differ about what the fed has said, what the fed is broadcasting it will do versus what the markets had been expecting . Is there whats the surprise here, if there is one . Reporter so i think there is a bit of a clang of regime here i dont think the fed is ready to act knowledge this yet. But i see it being less sensitive to data and im not saying its not data dependent its much stronger than it was i couldnt imagine a year or two ago, the fed after four straight declines in the core inflation rate, both increasing the funds rate and saying its going to do another one this year and three more next year i think thats showing less sensitivity, because what i have been saying is the fed is not really tightening. Its normalizing thats what its trying to do. Its trying to get back what it can while it can and theres two things, the fed do this one is the markets, look at the market reaction, you, yourself, said how surprised you were the dow caused back this 46point gain despite the announcement from the fed. Plus you have other Central Banks around the world who are giving the feds some leeway to do this while they keep a lid on global Interest Rates. All right steve, thank you Steve Leishman in washington. Thank you. So the question here is simple what happened today . What does it mean for your money Going Forward . Guy, how do you interpret all this my biggest concern is fed missteps, that can derail the market you mentioned the dow 46 points. That to me wasnt the story. To me the story was the relative strength of the numbers and the reversal we saw in the space what do i make of it ill say it again, the market stays around the high, were are within a wlis per of an all time high it feels like it wants to ratchet hoy higher. The vix which had a huge spike is right back down to 10andahalf again. So does the market surprise me yes. But you have to trade the market. The market sort of rises into the close, right we had that interesting frank in the financial, we had a weakening in technology. How do you think the markets are interpreting what the fed is say something. You had 600 billion in Balance Sheet reduction. Whenever we get there, its more bearish than people think t. Problem think its happeningt the a time more bearish because its tightening yes. Its opt mick about the economy, flo the real lining about today, the fed hiked on a day when we got terrible retail sales number, the yield went down to all the way back to the lows of july of last year. In fact, probably breached it. In fact, growth right now is lower than the last time the fed cut rates. So if you think about the, the federally because as steve said is the market is giving them this avenue, it almost feels they have to do it theyre jamming it down at a time that im not sure this makes sense. Absolutely. There is no question about it. You have the financials resilient. There is no doubt theyre resilient t. Downside risk is muted right now. I think its the best place you can put your money period in this entire market given the moves and Everything Else financials are telling you a couple things, your rates are not going much lower or were not really focused on the yield. Were focused on returning cash to investors were focused on the opportunity for what is coming out of deregulation. You know yields are not going down, yields they continue to go down every day. Few look at the stockmarket as a barometer of future Economic Growth in the u. S. , you are looking at the wrong thing, you mentioned the yield curves, the 210s you look at commodity, crude, its round from november look at the dollar the dollar really didnt rally today at all. It traded sevenmonth lows to me when i look at those three, thats what i focus on to forecast economic lows. You say Economic Growth right t. Retail investor is not going to side step this mark theyre not going to walk away from this market if growth slows a little bit f. We hit recession, no doubt about it but slowing growth wont side step the market. J. P. Put a great note out about. That that money will continue the trail in the question is what sectors do you want why do you think that slowing growth will not derail the markets . I lock alook at it in no different terms. It was worded very well you g10 of the market, the balance is kwaunt driven quant driven that money will continue to roll into the market unless the investors get spooked. What spooks . Not slowing growth were seeing periods of slowing growth it hasnt made the investor walk away from this quite frankly, i dont think it will im in 100 in agreement of that statement. What are you see income terms of are you more worried . It does seem obviously the fed has control or some imt impact on the shorter opened r ends of theyearo yield curve what i have said for quite some time, the fed might control the front end of the curve theyre foolish if they see it do something else. You are foolish. A bunch of people said the fed hopes us into a recession. Its just a question of when that is. I dont know what that means maybe not nearly as good shape as the market suggests but i thought that a year ago when rates were 1. 75 ten year and the market shrugged that off as well. Just be clear here. Low rates, with body prices and a low dollar for corporate earnings thats the back drop of this bull market we had for six or seven or eight years now to me the fact that the market is levitating here at 24. 50. All the conditions that were in place in 15, 16, 14 are still in place i dont know when the jig is up. At some point its going to. If you look at the s p for the barometer, i think you say the same. I want to say that a lot of times people made that call in the last yearandahalf about this precipice how could stockmarkets continue to elevate and were 500 in s p points higher. To your point, maybe its when they rejigger that Balance Sheet with 6 billion of assets on that period. You just said that five minutes ago. I dont need to put wrrdz in your mouth words in your mouth. No kidding. That guy needs introduced free all as bad as talking you know what it was tony dwyer of cana core we have two words, tony, trump trade. You know i do believe that you have an idea of when bonn yields are going to reverse. When you had the citigroup economics index ripping in december, it was moving everybody was saying there was too much inflation, too hot a growth, its going to get better the feds in trouble theyre behind the curve that was the time to buy bonds that was the peak in yields. All right. So i would say the opposite is true today with the citigroup economic surprise index, absolutely collapsing for peak in a sharp way, bond yields are correlated when you get that citigroup surprise index this low, it has led to a lower yield in a 50 basis point up on the long end so similar to december when it was a contrarian trade to go neutral on the tape, im going bullish. I did it two weeks aa go, its on the trump trade, mellissa its not necessarily anything to do with donald trump its the perception. You said health care. Whats wrong with that point to be clear, im saying if you are significantly overweight, cut it back. Okay. Never ever, i saidthis i us ever about 15 times, each time im on the show. You never ever, ever, everer, ever, want to get negative sustainably and defensive. To davids point, unless you have a recession on the horizon. You have a you probably dont have a recession until at least 2020 based on the current fed doc when the tenyear treasury yield is have you corrections that come into play t. Problem is, people are feeding into the correction taking it as an economic statement to when it hasnt. You like financials and the cyclicals at this point . Its all tied to the same trade. Right. Its tied to yield. If you want to get long banks, nonchemical materials, energy or industrials, that means you are expecting Economic Activity to improve and yields to bump up its the same in the reverse, you want to get out of the bond surrogate trade. They had a great move, yields, we got a 50 basis point reduction. That happens to be stimulus right so quick, so rates have come to your point, rates, ten year with 2. 75 probably at its peak. It was 220 now give or take. So the market has still rallied, within ten handles of an all time high. It would aksccelerate the rallye are seeing. But it will create a choppy environment, tech will do what it did monday. Where do you invest when there is no growth, or a perception in no zbroet . The only areas that have growth, which would be consumer staples, technology if you get real global Economic Growth, which weve had and domestic growth react sell racing, then it goes the other way. You get choppy index. Let me ask you this, can i ask the question, is it possibly different this time . Not only are they raising rates . Theyre also unwinding years of qe to tims point before. Is that what we dont understand how to model or the impact will be on growths Going Forward as they unwind trillions of dollars of assets over the last seven years . Ill ask you a question and answer the question. I told you two years ago that japan and china were going to sell 250 billion of u. S. Treasuries and the federal and the fed was going to stop significantly adding to their Balance Sheet, i dont think anybody on the planet would have said you have a 2. 10 tenennier that what happened, commercial banks have been usingiment the yield curve is a carry trade they bought 450 billion of treasuries since 2013, more than making up for the selling of the others so its different this time. Not just in that they will be taking 6 billion off the Balance Sheet, not reinvesting that thats a small amount they will manage that. Thats the important of todays statement. Dont forget until you first occur, commercial banks are playing the carry trade. Thats whats keeping yields here it has to be there is no other buyers tony, good to see you thank you for coming by. Its great to be here. The chief Market Strategist for cannacord industries. It makes you think you dont want to own european Interest Rates, which means you do want to own the european stockmarket. I think this was an opportunity to pull back the last couple days it was treated like a tech trade. Add some space, these are high yield trades in an environment i think people chase as well again, you think u. S. Financials are too tight . Look at european financials, way too tight. If anything, theyre coming over here. Continue, im looking at the biotech index, that 300 level, right there. If it practicics through, theres a lot more upsides. Xlf, i think this is a Good Opportunity to reshort it or take profits i disagree with david. Ill tell you this, the way im doing it is with xlf puts. You can get back to money participation for two or 3 looking out for a few months adisagree with tony, i think the tlt is the best looking charts the 20year bonds etf. I think it fills in that gap at 130. It just broke to new month highs. Bond buddies. Which is buddies . I mean, that puts something in front of it is that a noun you dont have to put a noun you share things without bonds. But we have a break guy, what did it do i tell you what, the dax has been interesting. Its at a critical level its been through it significantly. Ewg, tim has been talking about that one i this think that made an alltime high today. I agree we david on the ibbment tony didnt say the short biotech. He said if you are overweight, you may want to trim it down coming up, energy falls to a sevenmonlth low there are trades today that suggest more pain. Well explain what thats about. Plus, fast food 2. 0. Later three of the hottest names have entered the danger zone the names when fast money returns. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Livestreat the airport. E sport, binge dvrd shows, while painting your toes. On demand laughs, during long bubble baths. Tv on every screen is awesome. The allnew Xfinity Stream app. All your tv at home. The most on demand, your entire dvr, top networks, and live sports on the go. Included with xfinity tv. Xfinity the future of awesome. Welcome back to fast money. Oil falls 4 45 barrel closing at a sevenmonth low. Jackie deangelis is in the newsroom with more. Hi, you attempt to close, crude falling after those enventory numbers this morning the department of energy drawing a little smaller draw combined with a more than 2 million barrel builtin gasoline inventory. Overall, aofficially, imports were down, refinery runs were up thats telling us crude was being used to make product that product has been difficult to move. So gasoline demand not that strong right now as it normally is the time of year. Some people are blaming the went and less driving for that trend. Meantime the iea out with a report this morning suggesting the supply glut would continue through 2017 remember, most analysts on wall street have modelled some sort of supply demand rebalance we would help stabilize prices and curve volatility where do we zpo from here . Traders say 43. 73 and 42 is not out of the question. All right, jackie, thank you. Take a look at the xle, they attract the energy sector. That was down 2 today the worst performance sector of this year down 13 look at the dividend yields on some of the integrated stocks. Bp with nearly a 7 yield. Chevron, exxon with 3. 75 are these dividends in trouble and really the European Integrated they have a 7 dividend yield . I think bp have the track record in terms of rds, hotel is the one i actually like. The when i actually own. There is a 5 yield, 4. 8. Yes, this is a different environment than where we were, you think of a name like chevron, they went from 36 billion in capex in 2014 to half of that very quickly by 2016 so i think the big integrated names, especially exxon who basically rests their reputation on that dividend, i think its insane i get why you want to stay away from a company that has cut a dividend before. At the same time, arent the Balance Sheets much better and oil at 42 is much different than oil, 33 or 35. So why should we be worried about a dividend cut at this point . Bp should be worried. Exxon, if they cut a dividend, there is something very bad. Thats the last thing you have to worry about their dividend. Put it that that way i thought exxon bottomed the other day and crude as well. So this lay down surprises me. I talked about slumberge saying stay away, maybe its hasnt turned if you look at a play integrated 80andahalf. They dont want to play integrated. I did want to play. Now with this again this laid down i thought you were playing would you rather exxon i wouldnt want to play would you rather, if you want to play would you rather, sure would you rather you got to give pe 2345i78s id rather stay away from the sector altogether. I think oil thats right. I there will be little bounces here oil is going lower we were six to one better for sale of that we were professional 75 short. We could get a relief, a bounce. No doubt about i. I think oil is going to break 40. I think we break 40 sooner than later. I think the weakness in the dollar is really the tail that las lower lows its bearish activity xle. Its interesting. Its down a bit there. That s p oil and gas. What itself interesting about this thing, its 50 of the weight is exxon, chevron, sclum bergeer. Schlumberger when it was trading the selling of 10,000 o. September quarterly 60 puts at 81 center still it looked like that seller bought to open 240u6789 of the cement quarterly, 65 put paying 2. 15 for those. Those break even at 62. 85. Whats interesting about that roll, are they are laying out the money. Lets go to the chart. This is why 65 strike may be interesting. When you look at this look at the support that its gotten down to a sharp bounce its going back lower here i want to break it down. Up want to go out five years okay this is this level this is 60 bucks right here. Kind of interesting, to me, this was an important break down level in q12016. It had a nice long really for a bit to me, i think you could see the low 60s especially if crude is going back to 41, 40ish or so. Check out the full show friday at 5 30 eastern time. Macys is getting a boost. Its a start of a comeback we got those details im mellissa lee you are watching fast money on cnbc, first in Business World wide in the meantime, heres what else is coming up on fast. Keep very quiet. Theyre hunting for a deal. One ticket to stocks could be your ticket to income. Well explain. Plus, yep, thats whats happening to tech. There are three hot names in particular that are looking particularly vulnerable. Those stocks when fast money those stocks when fast money returns. 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Rates are competitive, and theyre the only plans of their kind endorsed by aarp. Remember these plans let you apply all year round. So call today. Because nows the perfect time to learn more. Go long. Snoetsz welcome back to fast money. The dow closing at a record high for the second straight day after the fed hiked Interest Rates for the fourth time forecast decade, meantime the nasdaq and s p 500 in the red. Heres whats coming up. Starbucks falling for the eighth straight session it could create a blue for the stock. We will tell you what it is and if now is the time to buy. Plus something change is happening. It could spell trouble for the mark we will explain. First, Technology Stocks taking another dip, bob has all the details. Reporter haidah that tech stops fell shortly after it began. They noted the difficulty of the feds continuing to raise rates when inflation is trending generally lower and the Economic Data is choppy at best some insisted yields continuing do remain low is a sign the market is having some problems with this approach chip stocks were big decliners with micron, texas instruments, all down 1 . Other big movers apple, alphabet, they rose off their lows going into the close t. Bottom line the mark seems to have interpreted the fed hike combined with much more information than expected on shrinking its Balance Sheet as a what hawkish move. High beta names would logically be the first ones to move on that back to you, melissa thank you very much. How do we interpret this move in tech stock, tim in. I think this is a case where the high multiple names are trying to find the right level if you look at the uber hightech, google, amazon, facebook, fang, i think there is a lot of people waiting to buy these levels google, i think its holding that level i think its a name that actually i can add some. You think you look at high beta chip names, i dont think you need to go there right now. Do you agree what caused the fed and the Balance Sheet . I look at these as a carryover. In general, you are right. A lot of these indexes, you look at the top five sort of wings in that there are all these megacap, microsofting google in there i think we do get a little of a pullback i caution you, i would not be short tech here by any stretch of the imagination when i take chips off the table, absolutely what if you wanted to buy technology right now are there any now that have reached the level that could be interesting . I i n shindividualia on monday, today is wednesday in full frankness on friday i thought listen, you might be right. You have to get over it, people. The stock went from 94 to 160 and its pulled back a little bit. So to answer your question, yes, saw to trade the bond to answer your original question, i think its more a rotation than anything else . You say you got to get over, what do you want i actually i got one all right im listening. I think there is another leg lower for those names that got hit really hard on friday afternoon. I think they did what they can do they follow through, stabilize a bit. I think there will be a little more then you get your tradeable bottom off that. Amd, nvidia every day, intel trades 13 names i times, theyve have there are 33 billion of acquisition. Theyre not going to mix this next cycle in emerging tech, 15 billion bid for mobile eye and. Will you have a move up 3 or Something Like that. If you can look out a year or two, i think nvidia is the stock. Right now id rather intel for a value perspective. I think its amazing there is no tron hold intel if nvidia pulse back him if im a investor, i dont want to forego that intel will work in it takes some time. There is so much concentration. Im into that i tell you there is a good level with nvidia, its the top from january and it broke out on the earnings number. If you get it back there. What year is there . 17. Im getting a little old right now, june, the last year was scent 2016 its still trading 35. 5 . Yes im with you thats my point. Up advisors see that they own it they say you guy guys make the assumption everyone has an appetite for a rick like this. They dont him im trying to say all the thing that you say about nvidia, there are some things going only in other companies. Look at what intel has done with the Balance Sheet, how theyre deploying tear resources to get the next two how about qualcomm . They made great acquisition i think this is a company where the valuation makes a lot of sense. We are overwhelmed by apple. A they did a fast pitch on it. Theyre trying to salvage a fast pitch. No, i got support on my desk. But the twitter folks, they just dont. Its all names. And qualcomm or intel qualcomm. I think the bear is greatner qualcomm at these levels, given everything dan said. Sticking with technology, tesla, baba, pay pal, three of the hot tech stocks this year t. Next guest says you should sell. Rich ross. Hi i have been a buyer of ever boyer in high beta names until now, i actually do think technology is a tactical short, theres 5 down in the triple qs, there is as much as 8 down in the same conductors they are potentially the 3 bullback in the s p 500. Lets speak to the tech stocks today. First we will start the tesla. This isnt this short of classic short setup. What i like about this stock as you sell is if you reach this classic measure outside target we have this well defined multiyear trading rate essentially, 100 points from top to bottom. We problem that out. Its taken us exactly to where we are today at 380. So its a great place to take those profits. Dont short it until it starts going down i get the sense it will. Now, lets move on, on the next chart, guy, you remember this one. We actually had a nice call on this stock before earnings you got the 15, 20 pop in baba. But in the short term, you see these classic sign, uptrend exhausti exhaustion backtoback, you know where im going, a big bear engulfing pattern. These are the classic signs of exhaustion and a bear reversal we can close that gap and the stock could be in a strong position just by moving that gap. When i talk of a strong tran session, lets move out. Lets be perfectly clear in the short term, look at this down size, we are taik talkinging mid to high teens here, keeping it moving, quickly, quickly, on the next page, we see paypal, visa and mastercard more so Tan Technology arc big gap up. Strong chart, once again, we see this classic trend, exhaustion, that bearish if gulf shortterm support here is well below current levels i think it makes it unfavorable. Its a sell, a reduce, a short sell this is where it gets own russ in the short term, we are into the hanging men. You dont have to have candlesticks to know they dont sound well, finally, it gets better as we finish. Lets finish on a high note, on oldie but goody. It hasnt done much of late after gaping higher. The next Earnings Release is coming up next week. I think its a coiled spring for a move higher. Look at this, this is a beautiful cart here. This is the bad boy. It takes us back to the top of the tech bubble. You think, okay, obviously, psychological resistance i get that are you in a strong position you see the trend the rounded base there, well draw it for effect here. Well be i would the drama, boom, you get a nice print, you will take out that old psychological high oracle, so theres one to buy, otherwise, technology, more broadly is a sell, absolutely and relatively against some of these other stronger sectors and markets. All right im let these guys mull over whether or not you come to the desk in the meantime, i have a question for you at the board. I think you can illustrate this. And sorry for being so obtusive. This is an obtuse question to my am curiae, when i think of a chart like a tesla or a paypal or ali be aba. Alibaba, it looks like a break out. It doesnt give me any reason for it to fall what is the difference between a breakout that works and the break jo ut that you see that you should sell . Well, its a very fair point. Clearly, we have seen the breakout well say tesla, for example the breakout was 280 so im not going to do the math here clearly, we are up in a very short period of time a lot is not a technical term. Let me give you technical term sentiment has peaked in the group, stocks are peaking at their all time high. You see a clear sign of trend exhaustion, you see in some cases, record high readings. Its the most crowded space in the market here and you are entering the period of challenging seasonality. Safe havens are surging. Thats a backup for a reversal. Thats on top of what you are seeing technically. I think these are strong setups theyre in strong trending markets. There is nothing to suggest the sky is falling a and the world is ending. My case and my call sheer for a shortterm perfectly reasonable seasonable decline, a 5 8 of the semis. Few cant understand that you into ed to protect yourself, selling short, writing calls, buying puts or doing what it is you do to protect yourself if times like this. This is not the time to be buying the dip in technology do we want to bring him over . Jacks a good pavenlt. They are backtoback. The question is trending. I thought you were talking about dans portfolio. Sorry hes the guy wearing the gecko shirt. I think it was good i think, first of all, rich made a point. Saying all these names i was listening on paypal and alibaba, two names i am long and they are great they look exhausted back on the load here. That, in fact, this is why technic also are married with fundamental also as a way to basically dont tell me what to buy, tell me where to buy it i look at alibaba to take you back to those levels i dont think you need to wait for that i would look consolidation at 136137. You dont need to buy t. Numbers they came out last week were extraordinary by any measure. When you see move you did like last friday, a lot of high flyers, we saw what happened with apple it happens so quickly, does that make you nervous does that help you make the case when you see this exhaustion that is the mark right there. We will look back on friday at that time key inflexion point. Its not the bell that ends this technology, clearly that ist top, shortsterm inflexion point. Ultimately, are you already seeing as the market itself has maintained its Altitude Technology a clear under performer, you see the classic signs of exhaustion, once again in the most crowded space, the best performer the biggest sector it has bearish undertones, the pressure you alluded to, to the collapse in yields, its not a great backdrop and the weakness in tech will spill over into the broader markets. You are having a 3 seasonal pull back here. Oracle reported june 21st this 45, 46 level is the high we made at the end of 2015 so i think you can get long in oracle ahead of everything, a couple things quickly, when you said obtuse, what itself the first thing anybody on this desk thought of no, i thought of the shaw shank redemption, you recall tim robinson, go east and play with Horace Greenly for you are chappaqua fans i thought you were talking about going to china. He told the warden dont be obtuse it didnt work out well for him. Okay. I look, again, i said earlier tech cant be shorted here i think you definitely take chips off the table and rotate other sectors t. One name i would buy on a pullback is the baba. I love their values, i think thats one you want to earn longer. In baseball, what would backtobacks be two doms. Thats right there you go. Okay. Thanks, rich, good to see you. Still ahead, macys ceo gives macys a big bet on this stock. Could this be a sign of a turn around a strange anomaly is happening in one of these three sectors. What it means for the market right after this break deartheres no other way to say this. Its over. Ive found a permanent escape from monotony. Together, we are perfectly balanced. Our senses awake. Our hearts racing as one. I know this is sudden, but they say. If you love something set it free. See you around, giulia welcome back to fast money what is wrong with this picture . You got the tenyear yield at the lowest levels, they traditionally have bond sectors, like utility sectors in telecom, right . Not exactly whats shaking out this year. Staples and utilities are up 10 in 2017. Then there is telecom, why cant telecom get going . Promotions, you see yesterday, we will give you a years of free service if you transfer over to the plant its insane the wars are going on aggressively. You have Companies Like verizon, basically have nothing else but the bank on 5g there is a company pulling forward, a longterm rope plan i dont know how they hold up here i would be basically side lined. They are 1,000 not coming they are fought cheap utilities got thrown out, there is always a place for utilities in terms of yield plays. I think this is a case where utilities are interesting, especially now in hindsight. Teleco valuations got expensive, then you throw in at t or verizon growing into the media space, geting into content then you start to wonder, meanwhile there is a lot of head winds in that sector so it hasnt been screaming go buy yields that explains. I agree with you guys i think the fundamentals are bad, i think you see this mna. You look at verizon an how they deployed 9 billion in capital to buy yahoo and aol in the last couple years youd rots look at at t doing what they do the content 13 times 5 dividend yield f. They can get that done, that stock is a buy. Its to me that deal you say unlocks value the market is not willing to give . Because that stock is totally languish its why we are talking about this. Im saying, you get some traction on that deal, i think it will be something that they come around to i dont think you see a sector like this, with this sort of yield work this sort of cash flow generation thrown out you know thats my question also, havent we been talking about consolidation . Not just amongst these players within this sector, also cable companies, comcast sprint is a combination talked about on the street there the a premium embedded here, granted. If a deal comes up, that means you are looking small. One would think the stocks, given this environment the these stocks should if growing permit. I think at t direct tv deal two years ago, i think theyre trying to get ahead of this. I think its a growing pain on top of which john ledger killed the entire space, he continues to do this land grab its forcing prices to go lower. That stock, thats expensive. Its recently come off its all time highs he has made so many people angry, he may be left with Musical Chairs with a purple shirt saying, hey, come over here, use our phones, theyre all free the service the free. I dont know can i tell you whats been disruptive and beneficial to consumers, if you are at t, directv the time warner, think of the bundles, there is no doubt about it, this thing should go through. It benefits consumers, everyone else will be scurrying around to do stuff. No question about it. Coming up, rising trend in the fast Food Industry could create a boom for a number of key players in the space well tell you who the big movers could be. You are watching cnbc first in Business World wide. Reaction. Arts a chain. Thats heard throughout the connected Business World. At t Network Security helps protect business, is i keeping the world of business connected and protected. Thats the power of and. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound s a used car, i wont. The future isnt silver suits anits right now. S, think about it. We can push buttons and make cars appear out of thin air. Find love anywhere. Hes cute. And buy things from, well, everywhere. How . Because our phones have evolved. So isnt it time our networks did too . Introducing americas largest, most reliable 4g lte combined with the most wifi hotspots. Its a new kind of network. Xfinity mobile. Back to fast money, the fast food wars are heating up. Panera has a major milestone. Mellissa, crossing a billion dollars in Digital Sales the year, forecast to double over the next two years, digital meaning orders from mobile, ki okay and delivery kiosk and delivery accounting for 26 of all panera sales, which is the highest outside of the pizza galleries. Dominos are the leader in digital, roughly half of the sales are originated starbucks say Digital Sales are close to a third the number is a bit tricky it includes inperson orders then paid for by the pre paid cards on phones, so some companies dispute this chipotle meantime recently launched mobile pre orders, that represents about 7 of sales and also has mo room to grow we asked the golden arches mcdonalds the numbers, they it rate they expect the mobile orders to roll out nationwide by the end of this year yum said digital delivery is a big focus. Shake shack has been talking up its early success of their mobile app and wendys expects kiosks up and running in a thousand stores at the end of this year. Guys, digital is the reboot of the sticking place in the restaurant space its the winners and the losers right now. Back to you. Susan, thank you, susan li back at headquarters tim. I think you have lots to say. Starbucks has 29 Digital Sales. I think they got the broadest digital platform, the mostability to execute on it mcdonalds i think theyre nowhere, really. Thats why you should be so excited. With that platform and that aggregate sales growth and not sales growth, the ability to generate growth off of that network to me, thats why mcdonalds i think is getting this comeback, its becoming a tech stock, which i know is an absurd thing to say. Its actually adding to growth. They didnt say that they said 29 of, it could be just you know for us, borrowing from peter to pay paul. It could be a way to keep down costs. It could be starbucks told us over the last two quarters its been difficult for them. They cut their staffing. Operationally they having a tough time. I dont think its driving sales the other thing i have to mention, it has to go there. Baseball when it was on the desktop, it was going to go mobile oh, 40 mobile. Every time they hit their target it went higher. Its not that way when you sill hamburgers or coffee. They have to go kick up a zrink. It happened with dominos and panera. Different businesses. Why do you buy more pizzas . Because can you order them digitally. I throw the same thing back at you. Dominos is not cheap. Falras. In tde i was wondering if an electric toothbrush really cleans. Better than a manual, and my hygienist says it does. But. Theyre not all the same. Turns out, theyre really. Different. Who knew . I had no idea. So, she said look for. One thats shaped like a dental tool with a round. Brush head. Go pro with oralb. Oralbs rounded brush head surrounds each tooth to. Gently remove more plaque and. Oralb crossaction is clinically proven to. Remove more plaque than sonicare diamondclean. My mouth feels so clean. Ill only use an oralb the 1 brand used by dentists worldwide. Oralb. Brush like a pro. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Hey, tim. Quick ali baba, buy it. Hughes. Aggressive show aggressive show. You see the stealth rally in target there, cysta i know you do im melissa lee, thanks for watching see you back here tomorrow at 5 00 meantime, dont fast money. In the meantime, mad money with jim cramer starts right now. My mission is simple to make you money. Theres always a bull market somewhere. And i promise to help you find it mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica my job is not just to entertain you but to educate and teach you, so call me at 1800747 cnbc or tweet me jim cramer if you own stocks that make utmost of the stock market you want