Transcripts For CNBC Fast Money 20170626

Markets that could be headed for a collision course bonds and stocks both surging together stock s hover near record highs. Check out the etf that tracks the bond market. Its highest level, in fact, since the election how long can they rally continue which will be the first two break . Does one have to break, guy . I dont know if one has to break. The bond traders will say theyre the smartest guys and gals in the room the bond market always knows sthichk t something the equity market doesnt know this time last year, yields 10. 6 , everybody looking for the downfall of the stock market, probably myself, included, by the way. All weve done is rallied ever since. Although the bond market is clearly telling you something, i think about the economy,stock markets playing a different game look at the transports within a whisper of the alltime high russell, same thing. Financials held a level weve talked about for a long time in the form of the xlf, 23 so unless im thissing something, which could be very well the truth, i think the stock market continues to go higher here. Low heelyields could be glas half full glass half empty Glass Half Full would be that the low yields are actually supportive of valuations allow valuations to go. Ier hits no sign of valuat n valuation. Very the election, 1. 8 tenyear yield. I believe if they continue to drop, you dont get tax reform, 20 Corporate Tax rate, thats a problem, thats problematic for the market. I think people underhow muese how much money is chasing the long end of the curve. Think about a tenyear bund, European Central bank, i would ark is behind the curve and layer in the fact the bank of international settlements, the central bank of Central Banks, have been leaning on Central Banks in their rhetoric to do more to take away emergency accommodation. That to me signals i think if anything, whats happening here in the yellow curve in the United Statess is any indication because the fed is preemptively moving against inflation, which steve is right, is not really there, maybe its there no other forms, that actually could be pushing yields down around the world. But, again, huge Central Bank Activity in the long end of the curve. Pension funds, trusts, i mean, theres a lot of people chasing yields. Its it artificial, do we then discount that yeah, you know, its interesting, because i look at the bonds just like buffett and cooperman have been on the network over the last couple months and both essentially said they have no interest in trading in the bonds are risk reward is not there you mentioned financials obviously weve seen this rotation time and time again youre seeing the biotechs over the last month or so perform to the upside, bringle the transportations. There are places, there are pockets i think and the fact this market continues to row kate, if somebody says would you rather right now, im at stocks all day long im taking stocks. I dont see the risk reward being anything close in the bond world. So i agree with buffett. I like to listen to buffett and cooperman. They seem too be right a lot. Or stock proxies, xlu, 3. 1 yeel yield, up 11 year to date guys are playing both, growth, if you can say that, the utilities as well as yield. Getting back to your point, if this is as a result, purely, or mostly because of Central Banks and their actions around the world as well as here in the United States, does mat methat f we get to a point where the yield curve is inverted, we couldn shouldnt care as much the inverted yield curve usually is a harbinger of recession, and im not sure that were ready to make that call. I am not making that call. I can tell you that for sure think theres a lot of pressure for longterm investors that are chasing yield and a lot of great opportunities. Steve talked about utilities mlps i sit on the board for an energy mlp Fund Yielding 13 . Theres a lot of different places to get yield. If you dont think the credit market is blowing up, emb is a 5 dividend yield. Think about other mace places n preferreds whats going on right now, i think were all saying this doesnt feel so bad, it feels like it is just right. Im going to pose the same question to you. What question been a while since i heard it. The long end of the curve goes lower, inverted yield curve, mostly because of the perception thereses demand for a longerterm debt and also Central Bank Actions does that mean we discount an inverted yield curve its not a signal of some sort of doom in the economy if the yield curve, to tims point, were a long ways away from that, number one, if we were to get there, it would be very concerning. Wed have the warning signs before we got to that point. So, will the fed hike us into a recession narrower. Narrower, correct the answer is yes. Weve had many guests on here saying thats what they always do are we there yet in lets see what has on the next hike, see what happens to the back end we get around 50 basis points, we have a different conversation tony dwyer was on today, talking about when the inversion is going to happen, probably be not until the middle of 2018 but the reactions dont start impacting the market until probably 2020. Were looking far into the future, in of us who are investors. The investment standpoint, taking off two, three, four y r years. That could change the whole calculous she being janet yellen. Look at the dollar, the dollars rally of two years ago was really when it was, an indication of the what the fed has already done i think if the dollar stays sidew sideways, its bound to stay sideways, look at the central bank data, the germany index this morning is still near record highs and you got a lot of opportunity for macro in europe to get better you, yourself, would you rather im going to, would you rather stocks or bonds right now . I tell you, i do think bonds continue to rally here i think stocks rally alongside i mean, i made this mistakes many times over the last few years thinking one has to give what history has shown us at least over the last three years, that isnt necessarily the case. Lets settle the key badebatd see what the charts have to say. Chris, what are you looking at its a very important call here as we head into the second half of the year when we talk about the first half returns, stocks and bonds roughly the same year to date. I think the big key here, though, is when these lines net earlier in the year, once, twice, stocks won both times s p higher s p higher we ultimately think s p higher here again i want to make a point about what the street is doing here. The street is running very, very long bonds this is a crowded trade. I think we need to be kafcarefu with crowded trades. Weve seen that several times this year. I would also just keep in mind, remember, we were 132 12 months ago. Were 264 at the highs we only retraced 50 of that i think 198, 205, is an area that ultimately holds. Looking out to the rest of the year, i think its important to also remember this is stocks relative bonds stocks just broeke out above their 2007 high bonds. We think this holds and ultimately stocks resume as the leader i think the last point when we look at leadership, if bond yields were going to go meaningfully lower from here, shouldnt groups like Consumer Staples be doing better . Shouldnt groups like telecom be doing better you have a stealth bear market playing out in staples almost a quarter of the index is down 20 from its recent high. We think bonds, you fade here, we think stongcks, you stick wi into the second half of the year. All right chris, thank you so, stocks win stealth bear market in staples. Although i get the point chris is making but i think about some of the issues were staples, also have something to do with what were seeing, a lot of downward deflationary pressure in some staples a lot of price competition in that space tellco industry is upsidedown. I think there are secular trends going on that means those correlations dont mean as much as they wruz uused to. What did you do today i sold my longterm holding in gdx, the minors. What do you want to buy i bought avis. Interesting guy . Hertz, actually funn nny i s stay away from hertz on friday up 15 or something on the back of the apple news. Whats interesting to me, continued relative strength at least in the biotech we talk about it now for the last few months, i still think, biotech closed, unchanged slightly lower today, i think bio tech is the thats what i bought last week i already had gilead. Odd today. A really strange rally from the low, mid 60s, up above 70 a share. People looking at it saying, hey, maybe the valuations and obviously yields celgene i bought doesnt it make you wary that its on nothing . Well, you know what its up 10 , gilead, over nothing . No, because i think it was oversold to begin. I still think when you look at valuations, celgene at 15, gilead in the single digits. We all atalk about the cash. When will they do it they havent done it yet. I cant say its nothing. A relative green light has given the whole sector to run. Celgene has run the absence of proposed regulation, not a regulatory i agree coming up, President Trump and indias Prime Minister modi are moments away from a joint press conference well bring you there live, tell you what the market implications could be. Also, did netflix just go from predator to prey . Well talk to netflix cofounder mitch lowe and what facebook means for the streaming giant. And Martin Chiarelli back in the spotlight. He heads back to court today and could put a bullseye on the back of biotech stocks well explain. Much more fast money right after the break. Welcome to holiday inn whether for big meetings or little getaways, there are always smiles ahead at holiday inn. Track your pack. Set a curfew, or two. Make dinnertime device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. Introducing xfinity xfi. Amazing speed, coverage and control. Change the way you wifi. Xfinity. The future of awesome. Welcome back to fast money. Youre looking at a live shot of the rose garden where President Trump and indias Prime Minister modi are expected to give a joint statement in a few moments. Lets get to simi modi at the white house with more. Reporter melissa, both leaders so far have had very warm remarks about their interactions so far. Once the Cabinet Meeting closed. Trump saying, this has been a great honor to host modi, we agreed on everything and thank you for ordering military equipment. Not sure exactly what trump was pointing to, but it is a sign that we could see a stronger alliance, defense alliance, between the United States and india, prior to modis arrival, there was talk the Indian Government was expressing their interest in buying hightech drones from the United States. So u. S. Surveillance they can use on their eastern coastline to better patrol the indian ocean, theres a rege wheion wh were seeing china play a come nachbt ro codominant role. For years, washington has seen india a as a key strategic ally on the economic and defense front. Its a strategic ally for us also as we look at Foreign Policy and counterterrorism efforts. This morning modi speaking with secretary of state Rex Tillerson where the conversation was really expected to be around military and defense cooperation. So that is something that we could see mr. Trump and Prime Minister modi refer to during their joint statement. Well have to see if we see any type of announcement around this hightech drone deal another topic that could be discussed is energy. India has been a big buyer of u. S. Energy. Specifically Liquified Natural Gas in louisiana and maryland. Thats a point modi will likely make in his meetings with trump, a sign hes looking to make more deals and investments in the United States. Also in an effort to bring down that u. S. Trade deficit with india women hich has been a con for trump. The u. S. Trade deficit with india ranks india at the tenth level at around 30 billion. Its a significant amount but pales in comparison to the likes of china and germany defense, energy and trade, those are the three topics we do expect the two leaders to talk about. After their joint statement, they will then go on to a cocktail reception, a dinner which as weve been saying that will be modi will be the first foreign state, head of state, to have dinner, a working dinner with the president at the white house. Once we get the statement, of course, well get it to you, melissa, back to you. Seema, thank you, semma mody at the white house tim, we got to go to you, the ambassador. Prime minister modi was elected in 20 14, rallied for a year since that times its done nothing. The honeymoon period of High Expectations this is a country we should be doing a lot of business with, they should be our friend. If you think about the technology kind of benefits and certainly the strengths of this economy and the demographics in india, it makes a hot of sense why this is ahighgrowth marke that people are willing to pay up for again, india is very expensive relative to emerging markets probably should be because, again, not a lot of oil and gas plays. Lot of technology plays. Essential l certainly a place where people feel corporate govern nance is better reforms in india are a lot harder to get through than people think because of the big social net its a very complicated society. I think a lot of people, pekt d expected things to happen overnight. Strong home among the tech sector that india would be the next big Growth Market clearly apple is hoping that is the case, pete, and interestingly, a lot of the tech ceos including ceo tim cook, theyve meat with mot with modi. Theyve been working hard to get this in, obviously with 4g getting built out, this is something thats phenomenal potentially for apple. Obviously the expense of the phone is something as they on the to the made in india brand theyre starting to build out there and starting to finally be able to do that in india, thats going to be bring those prices down as with el theyre talking about potentially getting them priced down by 100 per unit. Theres an able for them right now apples only got 3 of that Smartphone Market they got nothing samsung owns them. Thats a huge market for them to actually capture in the smartphone world. It does seem like india is sort of opening, they want manufacturer eriin manufacturing, want plants made in india is a big platform for Narendra Modi. Allibaba making and investment, paid through mobile. They increased it to i guess, like, 40 at this point. People think of it as a hine the chinese company. People in india theyre going to start to leverage. Youll see that going forward. You have to have basically an Indian Company of origin like china. Like china. Whos ahead of the curve there starbucks was. I think they got in five, six years ago with Tata Global Beverages and its not paying dividends yet but its clear lly something that could pay dividends going forward. One company that could have a huge impact in india, i would put starbucks at the top of the list. I think outside of investing in india, facebook, if you think about Internet Penetration in india is about 34 yet its the second largest internet market, 462 million users. So much. This is what were all saying. Facebook, if you consider their per sedge tten perso soso sososo percentage of users, facebook is a good play to play india. A live shot of the rose garden, were expecting President Trump and indian Prime Minister Narendra Modi, come out, give a joint statement on their meeting today. As soon as they step out, well bring you there live. To the other big news out of d. C. , Congressional Budget Office releasing its score of the revised senate Gop Health Care bill earlier this afternoon. We have the latest reaction from d. C. Melissa, the headline numbers, 22 million more people would be uninsured in 2026 than under current law. That compares to 23 million more people who would have been uninsured under the house version of the bill. The Senate Version of the bill would also reduces the deficit by 321 billion over the next decade again, that compares to the house version of the bill, which would have reduced the deficit by 119 billion over the next 10 years. Now, one important thing to Pay Attention to is the impact of the senate bill on premiums. The cbo found that premiums would increase in the first few years after the bill would have been enacted and then fall as much as 30 in 2020. And thats largely because the type of Insurance Plans that the programs would cover would change so, you would be paying less in premiums, but the Insurance Plan that you get would also cover less another important area to Pay Attention to is the impact on Older Americans. The aarp has come out against the Senate Version of the bill was against the house version of the bill as well the cbo found that the tax credits in the Senate Version of the bill would result in some seniors seeing lower premiums than they would have seen under the house version. Hou however, if youre a middle class senior between the ages of 50 and 6 4, your could see your premium rise to 20,500 a year 20,500 a year so that is not the direction that the Senate Republicans were hoping that they would be able to take this bill. They were hoping they could bring down those costs for all Older Americans going forward. So, were still digging through the numbers in this document well bring you more as we have it, guys. In terms of the senators who have publicly expressed their misgivings about the senate bill, do we have any indication on how the scores impacting what they think of it . Reporter well, we know one senator, Susan Collins of maine, said she wanted to see the cbo score before making a decision we know five senators are already opposed to it. There are about ten or so who are on the fence senator john cornyn has said he hopes to bring this bill to the floor this week. They could start proceed univers procedural votes as early as tuesday. Wnz isikely. I suspect by tomorrow morning well get a better sense of where things lie. Thank you steve grasso, what do you headache ma make of the score both sides say its inaccurate when they try to score the things. Fair. United health care is up 16 year to date i think the hmos want to be out of it, opt out of it they say its going to collapse without any intervention, anyway thc, hca both up i think 26 and 17 respectively so the hospitals are going to get a better than what they figure payout in this deal and whats going on with the regulation, than what they once thought was going to be when the regulation was going to be moved. I think you still buy the whole space. Still. Still. Okay. What happens if this doesnt come to a vote this week what happens to the biggest oneweek gain since the election for health care that we saw last week i tend to agree with steve, quite frankly. I mean, i look at United Health, i look at humana that space has been on a tear. Weve all been talking about it. Weve been kicking this around for the better part of six months i still think some of these traded very, very cheap, quite frankly. I think theres still upside. I think United Health care is a phenomenal company and theyre kind of an allweather stock here thats been proven. Trades around 25 times current, 18 times future. Raise the dividends, become a dividend play. You get to a place here, if theres any decent move sectorso see relative value. I think you can get in the hospitals you have your ear to the aarp, so, i mean i just got my card recently in my mailbox, too elon said his premiums could go up by a lot. Sensitive to your needs right now, guy. Im sensitive thats not a good thing for people in that age bracket anyway sorry about that. Anyway. Just a little hospitals youre saying . Valuation is reasonable, the best group in the space in terms of health care, i think, beginning of june, they put a buy rating on the stock, 27 price target so to me the risk reward in thc is very good. Just a reminder, were awaiting the joint News Conference between President Trump and Prime Minister of india Narendra Modi. Well bring you to the rose garden live. Also ahead, facebook going hollywood as it jumps into ornl original con tent. Will it be a headwind for netflix . The cofounder weighs in im melissa lee. Youre watching fast money on cnbc first in business worldwide. In the meantime, heres what else is coming up on fast money. Did you see that leaked images of the iphone 8 have apple bus in a frenzy well show you the pictures and fe tell you who they could mean for the stocks. Plus up from the hes back the farmer bro is in court today. Well tell you what happened and what it cod an fulmeor surging biotech stocks when fast money returns. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Lets get to eamon javers in the rose garden where President Trump is set to make a statement with indians Prime Minister modi. Reporter we saw the Vice President and first lady come in and take their seats were inside the twominute warning. Were expecting this event to begin shortly. The president and Prime Minister have been interacting throughout the day here and throughout the afternoon at the white house one of the points the white house wanted to underscore about this event, this would be the vi first foreign dignitary the Trump Administration hosted for a dinner at the white house. Theyre emphasizing that is a sign of respect and csignificane of the level of this visit of the indian Prime Minister here today. Were going to wait and see what the two officials have to say here, but remember, this is a joint statement, not a News Conference typically, when the president meets with a foreign head of state, well see whats called a two and two, two questions from the foreign media, two questions from the u. S. Media. This case, were just getting a joint statement and dont expect the two leaders will take questions, melissa any issues youre expecting to hear about in this statement, aimen . Reporter i think theyre going to talk about security and defense cooperation, one of the key elements a lot of the premeeting briefings that were given to reporters were very much focused on the issue of terrorism, control and defense spending expect an increasingly close relationship between india and the United States in terms of defense procurement, one of the big issues is whether or not the indians will buy u. S. Drones for patrol of some of their airspace so thats one of the things in terms of dealmaking that well watch to see turg tduring the c of the visit of course, in terms of this president s relationship with the wider world. Well wait and see if there are warm moments we saw between Prime Minister modi and barack obama during the Obama Administration well look to see the indian side try to replicate some of that here with President Trump as well. It was interesting, eamon, to see all these u. S. Ceos meet with modi ahead of meeting with trump. Jp morgan ceo, tim cook, just to name a few, was this unusual in terms of the ceos courting the head of state . Reporter in terms of dealing with the massive market that india represents and also dovetails with the Trump Administrations agenda. Remember, this is a president who got elected talking about creating jobs for americans and opportunities for American Business that very much is in line with what hes trying to accomplish here today so, if there are opportunities where American Businesses can have those meetings as well as the president and the dignitaries here at the white house, theyre definitely going to take them here. Its interesting to see, well, it will be interesting to see the relationship between the t two. In many ways, they have sort of similar platforms, Narendra Modi has making india great, or made in india, President Trump has emphasized manufacturing in america. Both have pretty Strong Social media presences with more than 30 million twitter followers and both use social media to advance their agendas. Reporter yeah, well have to watch the twitt eter feeds of b gend gentlemen. What they tweet behind the scenes the Prime Minister was asked in a meeting here at the white house for his reaction, he said hell have more to say after the meeting concludes. He was talking to reporters very briefly, said he didnt necessarily want to give away the tenor of his comments but emphasize the warm reception that hes gotten here so far at the whousz white house. Things seem to be going very smoothly well get the details after this is over with of course, in joint statements which are parsed so very carefully by all media around the world, theyre looking at this relationship. And heres the president and the Prime Minister of the republic of india. Thank you very much Prime Minister modi, thank you for being here with us today its a great honor to welcome the leader of the Worlds Largest democracy to the white house. I have always had a deep admiration for your country and for its people and a profound appreciation for your rich culture, heritage and traditions this summer, india will celebrate the 70th anniversary of its independence and on behalf of the United States, i want to congratulate the indian people on this magnificent milestone in the life of your very, very incredible nation during my campaign, i pledged that if elected, india would have a true friend in the white house. And that is now exactly what you have a true friend. The friendship between the United States and india is built on shared values including our shared commitment to democracy not many people know it, but both american and the indian constitutions begin with the same three very beautiful words, we the people. The Prime Minister and i both understand the crucial importance of those words, which helps to form the foundation of cooperation between our two countries. Relations between countries are strongest when theyre devoted to the interests of the people we serve and after our meetings today, i will say that the relationship between india and the United States has never been stronger, has never been better. Im proud to announce to the media, to the american people, and to the indian people, that Prime Minister modi and i are World Leaders in social media. Were believers. Giving the citizens of our countries the opportunity to hear directly from their elected officials and for us to hear directly from them i guess its worked very well in both cases i am thrilled to salute you, Prime Minister modi, and the indian people for all that youre accomplishing together. Your accomplishments have been vast india has the Fastest Growing economy in the world we hope were going to be catching you very soon in terms of percentage increase i have to tell you that. Were working on it. In just two weeks, you will begin to implement the largest tax overhaul in your countrys history. Were doing that also, by the way. Creating great new opportunities for your citizens. You have a big vision for improving infrastructure and youre fighting government corruption which is always a grave threat to democracy. Together, our countries can help chart an optimistic path into the future, one that unleashes the power of new technology, new information and the enthusiasm and excitement of very hardworking and very dynamic people i look forward to working with you, mr. Prime minister, to create jobs in our countries, to grow our economies and create a trading relationship that is fair and reciprocal. It is important that barriers be remove removed, to the export of u. S. Goods into your markets and that we reduce our trade deficit with your country i was pleased to learn about an Indian Airlines recent order of 100 new american planes. One of the largest orders of its kind which will support thousands and thousands of american jobs. Were also looking forward to exporting more American Energy to india as your economy grows including major longterm contracts to purchase American Natural Gas which are right now being negotiated and we will sign them. Trying to get the price up a little bit to further our economic partnership, im excited to report the Prime Minister has invited my daughter, ivanka, to lead the u. S. Delegation to the Global Entrepreneurship summit in india this fall and i believe she has accepted finally, the Security Partnership between the United States and indias incredibly important. Both our nations have been struck by the evils of terrorism and we are both determined to destroy terrorist organizations and the radical ideology that drives them. We will destroy radical islamic terrorism. Our militaries are working every day to enhance cooperation between our military forces and next month they will join together with the Japanese Navy to take part in the largest Maritime Exercise ever conducted in the vast indian ocean i also thank the indian people for their contributions to the effort in afghanistan. And for joining us in applying new sanctions against the north korean regime. The north korean regime is causing tremendous problems and its something that has to be dealt with and probably dealt with rapidly working together, i truly believe our two countries can set an example for many other nati nations, make Great Strides in defeating common threats and make great progress in unleashing amazing prosperity and growth Prime Minister modi, thank you, again, for joining me today and for visiting our country and our wonderful white house and oval office i enjoyed our very productive conversation this afternoon and look forward to its continuation tonight at dinner. The future of our partnership has never looked brighter. India and the United States will always be tied together in friendship and respect Prime Minister modi, thank you very much. Thank you. Thank you. Translato trump and first lady, Vice President , lady and gentlemen, opening translator right from the opening, to the end, President Trumps welcome held with friendliness his warm welcome, white house, by himself and the first lady. I would hike like to thank both you from the bottom of my heart for this warm welcome. I would also like to give special thanks to you, President Trump, for having spent so much time with me, for having tell you that im eager to welcome your daughter to india for the entrepreneurship summit. President trump, id once again like to thank you for the time that youve spent with me. Id like to give you special thanks for that. My visit and our talks today will mark a very important page in the history of the collaboration and cooperation between our two nations. The talks between President Trump and myself today have been extremely important from all points for several reasons. Because they were based on mutual trust, because of the convergence and similarities, in our values, in our priorities and our concerns and interests because they focused on the highest levels of achievement in our cooperation and mutual support and partnership. Because our two countries youve been listening to indian Prime Minister Narendra Modi giving a joint statement with President Trump President Trump emphasizing the similarities between the two countries even going as far to say the first three words in their constitutions are the same we the people. Then going on to talk about the importance of trade, particularly lifting some of the barriers in terms of the exports being made to india. He also highlights a large order for aircraft by an indian airliner which could keep american jobs here in the United States of course, another emphasis on the fight against terrorism that the two countries will embark on anything change your view in terms of india as an investment . This is an incredibly warm gathering. As warm as ive heard from this white house. Its very impressive if you thing about indias partnership in terms of growth, innovation, science in this country, the irony this happens on the day when the Supreme Court weighed in on the travel ban, the h1b visa drastically affects indians, especially the Silicon Valley and the tech world. And the other irony for me is if you think about it, adding u. S. Jobs, i mean, technology and outsourcing to india is killing u. S. Jobs. I mean, thats not a bad thing its the world we live in. The reality is, india has been a major part of a secular force, its actually changing the way people work in this country and its painful so, thats thats what you think about lng exports, the First Company that was allowed to export lng was shanier, up 16. 5 . Look at lockheed, up 12 year to date general dynamics, up 16 year to date all still viable. All on this if you look at this relationship. Right. We always have whether its a republican or democrat, a Good Relationship with india. Since about 2000 since bill clinton opened up the doors there. So i do think that this will be a great relationship and its worth buying stocks. Lng on top of that, the president is expected to make a speech at the d. O. E. This week the focus will be on exports and potentially expanding exports including lng. Still ahead, facebook is going hollywood. The social Media Company the latest player to get into original content what will it mean for netflix . Cofounder of the streaming j i giant, mitch lowe. Plus leaked photos of the highly anticipated iphone 8 sending the internet into a frenzy today how will this new model stack up lha apealept. Rrent version . Wel ve sci ror 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. See options data like never before. With thinkorswim only at Td Ameritrade. 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. A ustthats why at comcast,t to be connected 24 7. Were always working to make our services more reliable. With technology that can update itself. And advanced Fiber Network infrastructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Welcome back to fast money. Lights, camera, likes. Facebook is going hollywood. The Company Reportedly in talks to create original content by the end of the summer. Julie boorstin joins us from los angeles with the details hey, julia. Reporter hey facebook executives have been making the rounds in hollywood meeting with studios and talent agencieies creating all shows exclusive to facebook. Facebook commissioned unscripted shows from buzzfeed, box media, among others those will be the first to launch reportedly by the end of this summer. Facebook also wants to invest in more traditional scripted tv shows. The wall street journal reporting facebook is willing to spend up to 3 million per episode in line with the cost of some shows on amc or netflix this comes as facebook along with google look to reassure advertisers about brand safety and chase Television Ad dollars. Facebooks v. P. Of media partnerships nick grudin saying were focused on episodic shows and helping all our partners understand what happens across different verticals and topics were funding these shows directly now over time, we want to help lots of creators make videos funded through revenue sharing. Facebooks promise of viewership data is particularly appealing to studios, im also hearing point of conflict of negotiations is facebooks interest in owning many of the shows and studios are reluctant to give up longterm rights. Now, this is just the latest example of facebook doubling down on video. Last year, launching a video tab for the app, this year a separate video app for facebook users to save videos to watch on their tvs. Facebook wants to keep its users in its family of apps whether they want to make a teen callphl or watch a tv show. Thank you, Julia Boorstin facebooks latest endeavor means there would be another player in an already crowded video on demand space netflix, amazon, apple, hulu, established original content with growing popularity and there were 450 scripted shows on tv last year fresh competition from mark zuckerberg, is the mode around the streaming empire drying up mitch lowe cofounded netflix, currently serves as ceo of moviepass. Mitch, welcome to fast money. Thank you, melissa. How do you think this changes the game well, boy, you knows to be a writer today in hollywood, this is like a renaissance. Theres going to be so much great con tent being produced so for consumers its fantastic i just worry that were inundated by so many choices, so many options, its actually going to depress consumption eventually. I mean, people theoretically have only a certain number of minutes in a day, most of us do, to watch content. After watching fast money. Obviously, then the remainder is up for grabs. That remainder gets smaller and smaller if you have to divide it amongst it reminds me almost of when cable tv expanded from however many channels to all of a sudden hundreds of channels and nobody watched anything really. Right people are watching more content. You know, i mean, everywhere you look, look at times square, its coming at us all the time. But whats really becomiining a problem is how do you choose and there really is no good way to find what you want. You end up struggling to find something good on the other side, theres going to be a lot of great content out there. How strong is the mote for netflix at this point, given all the competition for content and for viewership well, theres really one real big mote that is the culture that we created at net nix empowers people like ted serandos, whos a total genius at content, he understands it better than anybody. Better than data will ever show you. So hes got a team that knows how to create and to acquire great content that people love they also, of course, know how to identify the people who are going to love it you know, and lastly, people love netflix on the other hand, Companies Like facebook know a whole lot more about you than netflix does. The also ring a rhythm is a e example for netflix. Arguably amazon would theoretically have a terrific algorithm going. They have a 360degree look at who you are last question netflix, what happens with netflix in a year, lets say is it acquired, in your view i thought, you know, i shared a cube with reid for a few years and reid always wanted to run a studio thats essentially what hes doing now. But he would have been a great successor to bob igor. You know, potentially hed be a great successor to tim cook. You know, he understands how to drive culture both on the content, entertainment side, as well as technology and i think it would make great sense for both of those companies, but logic sometimes doesnt really work out in the real world all right mitch, thanks so much for coming by we had to shorten it because of this breaking news we hope youll come back. Thank you. Mitch lowe, cofounder of netflix. Thank you. You still stand by disney he makes a pretty good case, mitch does, apple for netflix. Weve seen that in the journal. I do think disney and netflix makes a lot of sense if mr. Igor is looking for a success successor, Reid Hastings from what i can tell, thats as good as it gets taken maybe two missteps during his tenure as netflix at most. Otherwise its been flawless execution. It would make a lot of sense. Why not just hire him away . Or that. Its not the reason to buy netflix. In fact, what i hear mitch saying, ultimately this is a content company. Reid hastings wants to run a content kpcompany, a studio. Not a streaming service. Not something that has the multiple of a streaming service and Software Company thats where i get worked up about netflix. Not that its not a Great Company that changed the world, it is. At what price . Does apple need somebody . Do they twhal have actually hav something or get into the content a lot deeper they have the similar algorithms theyre able to follow along with facebook, everything else, know what were doing, how were doing it, what we like to do. Which is very scary maybe for all of us. Just kidding. Nt,haa Bro Martin Shkreli back in court today. Were back with much more fast right after this. Thats why we meet or exceed 15 global regulations for baby products. And where standards differ, we always go with the toughest. Johnsons. Welcome back to fast money. Pharma Bro Martin Shkreli back in court today as the trial officially kicks off lets get to megat. Reporter the socalled pharma bro arriving in federal court in brooklyn this morning, faces eight counts of securities fraud, conspiracy to commit securities fraud and conspiracy to commit wire fraud to which he pleaded not guilty on all of those counts of course, thats not what made him famous is not what hes on trial for. That, of course, was raising the price of a drug by 5,000 . Shkreli and his attorneys are leaving the courthouse see him there and his attorney in the front this has been a long day of jury selection, not entirely successful not finished the jury selection for Martin Shkreli a lot of people coming into the courtroom with biases telling the judge they hink hethink hee face of corporate greed, saying, quote, i donthink hes an evil n i dont think i can be fair. Two people thought he raised the price of the epipen. Does this bring drug prices back into the conversation, putting the target on the back of Drug Companies . A big political conversation, mel. Well be bringing you hopefully Opening Statements if they can get the jury together tomorrow. Meg tirrell in brooklyn. Separate from the charges hes facing in court raising a drug by 5,000 thats another issue guys got a lot of issues. This is a fascinating thing megs point is will this bring biotech back into the cross hairs yeah. Of the political arena and subsequently what will it do to the stocks reminds people about the 5,000 increase. I think maybe this is a good thing for pharmacy companies, may they can get in front of this instead of playing from behind. I think were past this regulation has shown were past it i do believe this is the rear viewer m mirror. Im up 55 i was playing this before i moved to 20 or 30, not a move to 15 or 17 where its at right now. I actually think if most the folks in the Republican Party that are pushing for lower premiums and thats actually that is there for the masses i think theres a counterbalance to who cares about pharma bro, the guy gets way more attention than he deserves gets down to the fact the sector has been leaned on, buy wrote tech, a lot of these names especially the top of the etf are trading at multiples that are attractive. Weve seen extraordinary volume on the etf, the equity. Weve also seen extraordinary when i look at gile gilead, celgene that makes you think what starts to make me think despite the fact what we just saw there, thats back in the public eye but i think that will be gone very quickly. All right. Final trade time pete najarian. Looking at lululemon. The stock has been on a tear to the upside seeing upside calls. I think its going higher. Indian, hdb banking hdb. Grasso . Avis with the google headline back from the dead c. A. R. Is the ticker i bought it today. Guy most troubling about that footage, the guy with the full backpack on. See that guy walking out of there . I wear a backpack. No you want to be even you dont want to have undistributed anyway. Guy needs to wash his hair. Health care, the hospitals. Im on the other side of tim seymour on this one. Thc. Im melissa lee thanks for watching. See you back tomorrow at 5 00 for more fast money. On thimrar cme starts right now my mission is simple to make you money. 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