Big rally bubbling up. Check out what happened to chinese tech stocks today as Congress Seems to be turning up the heat on china. Lets get to Kayla Tausche for the details. Melissa, the Holding ForeignCompanies Accountable act technically applies to any nonu. S. Company listed here and it requires those companies to be subjected by the securities and Exchange Commission and if not to certify that it is not owned and controlled by a Foreign Government any company that cannot prove that would be dislisted. Here is john kennedy, the republican senator from louisiana who sponsored this bill i do not want to get into a new cold war all i want, and i think all the rest of us want is for china to mri by t play by the rules. Antichina sentiment has been gaining steam in recent years and it did not subside after the phase one trade deal was reached in january and this particular issue of transparency has gained new momentum after the fraudulent Financial Disclosures at Luckin Coffee just last month. The white house and the Labor Department directed a board to refrain from investing money in certain indexes that have stocks as a matter of National Security it still requires passage in the house and the signature from the president to become law and given that it was first introduced early in 2019, it is unclear exactly what the timeframe for that is, but its clear theres a lot of bipartisan support melissa . Kayla, thank you. Kayla tausche in washington. J. P. Morgan writing today as the virus risks evading globally geopolitical fallout is a new risk and specifically, this is what he writes, for example, just today the u. S. Senate passed a bill to bar Chinese Companies from being listed in u. S. Exchanges while we have been recognizing chinau. S. Tensions as a political stumbling block for the markets here, j. P. Morgan is coming out saying this could be a real issue tim, i go to you in terms of the trade that we saw, can you walk us through why some got hit harder than others . Alibaba, for instance, emerged relatively unscathed compared to a j. D. Or baidu . Yeah. Because i think if you look at the disclosure and the approach that alibaba has taken to their International Accounting standards, and i think theyre different, and i think alibaba which traded down on the news ended up rallying back almost 2 off of the intraday lows and alibaba reports fiscal q4 this week on friday and i think those numbers will be really solid this theme may appear to be a trade war theme kind of hangover, but i think this theme is something thats been front and center for a long time i think the secs ability to actually investigate Chinese Companies listed in the United States and actually look at their Balance Sheets and get followthrough from the Chinese Government has been a challenging issue for them for a long time, and the nasdaq we saw is putting more restrictions on Chinese Companies going to ipo in the u. S. And actually limiting a minimum size, for example, which we also, i think bring more cred entities that have more scale. Separating the haves from the have notes here is not so terribly easy, but with alibaba and ten cent, the standards there and these are companies that went on global roadshows and alibaba for a long time were basically put through the ringer by investors, lawyers and compliance folks to deliver a platform that stood up to this type of rigor. What the u. S. Is asking for is from every company i think this is something that is very important and something that will continue this is, in theory, very good for investors and congress wants, and the nasdaq wants listed companies from other companies to follow u. S. Accounting rules and better for u. S. Investors and better for transparency and yet in the context of the world we live in, guy adami, this is going to be seen as the latest bar being traded between the u. S. And china. Yeah, and with that said, here we are with the s p 500 basically 3,000 and 12 off the alltime high and the nasdaq is within a whisper of an alltime high and well talk about making new alltime highs and nobody seems to care and to your point, listen, everything going on with china, maybe its deserved and maybe we needed to have the trade talks and im not disputing that, and there have to be ramifications and with this latest, i think its a big deal coupled with the fact that this administration, rightly or wrongly is looking for a scapegoat for the coronavirus and its going to be the chinese and there are ramifications for that, and if i want to bring everything back to the wuz, okay, wonderful and there are ramifications for that the fact that the market doesnt seem to care in the s p 500 and the nasdaq is very interesting to me. I understand the fed, and i get all that, but were looking past something that can be extraordinarily disproductive in the months to come karen, what do you make of the latest development in the context of the markets today which is a rally right i actually do own alibaba, so i was a little bit concerned when i saw that alibaba is safe and as tim said they went through a vigorous process, but i do want to check that they do have a worldclass auditor which they do, Price Waterhouse so ultimately, i think its a good thing i think, though, if it happens i was surprised that it was unanimous, if it comes to pass in the short term it will be a bad thing for some of those stocks, obviously, but i agree with guy also. I think its increasing the tensions so china becomes the bad guy and as he said, theyre looking for a scapegoat. All of that having been said, though, im very surprised that the market went up as high as it went today on i dont know what. Dan nathan, is it a coincidence that we saw fresh highs while we saw the selloff in chinese internet stocks or is that two things that happened to happen on the same day think they happened on the same day i think it is pretty interesting when you look at the u. S. Internet stocks how little exposure that most of them have in china because of regulation, and i think this is one move by the sec and by our exchanges that theyll get very, very little pushback, and the other companies to want to list here for a whole host of reasons they should list the same script that u. S. Companies do, but i cant help, but string it all together with some of the stuff that all of the other guys and gals are saying about this timing listen, we are clearly making a stronger case against china. Whatever the reasons are, i think it is bipartisan and a lot of people feel we should take them on a lot of bigger things and my bigger issue is about the Global Economy, chinas recovery will be really, really slow and when you think about this economy that goes from 6 gdp growths negative in such a short period of time and what thats going to take to get back up even high single digits, that is going to be a weight on the neck of the Global Economy for some time i just feel like we need to figure out how to better cooperate globally because deglobalization, the biggest theme of the last 20 years is coming undone and there will be massive,s massive, economic ramifications and u. S. Economies have dramatically benefited. The market is not from testing any supply chain to the globalizations. So a reshoring move could in fact hurt s p 500 companies. It does look like we are moving slow slowly towards that eventual end and were talking about bringing back critical components for Defense Products or technology or for drugs back to the United States thats at a cost, obviously. Yeah. Look, i dont know how great this will be for apple and this is something that we debated over and over and in terms of their supply chain and the component makers and yes, some of this can be done, but i think its crazy to expect it all to happen, and i think it would be terribly inefficient and let me stand on the side saying i get the fact that we want to control supply chains and people want to push back on china on a number of issues, not categorically and i believe this is easier said than done, and i think the key focus for me is u. S. Markets are the deepest, most transparent in the world ask they are for a reason, that there is Regulatory Infrastructure around the way the markets trade and the Way Companies need to be accountable and disclosure and transparency if they can list in this environment and any company in the world sees that environment and this is where i would exact the greatest multiple and those that dont want to play ball here clearly cant and wont and the highprofile ipos in the last year and saudi aramco and there are places where People Choose to play or not to play, but ultimately its good for companies as well as investors our next guest says this market valley has even more room to run lets bring in j. P. Morgans Phil Camporeale. Hello, melissa. Good to be back with you. In terms of the market going higher, whats going to drive this and are you factoring this at all a resumption or an increase in u. S. China relations or tensions, i should say. Thats a good question, melissa. This has been an incredibly emotional and confusing market environment for the past couple of months and even for the most tenured investors. The unemployment has gone from a 50year low to an 80year high, and its gone up 3 in a day thats exhausting, right and we are also sitting on top of the second best 40day stretch in market history. The reason why i think you can continue to press higher is because there are very important technical reasons to continue to like the market. There are 5 trillion right now sitting in money market funds. This time last year that was 3 trillion speculators and futures on the s p 500 are the shortest since 2016 remember the november election and what we are doing is taking on cues from financial conditions if march 23rd ends up being the bottom, and it will get remembered by march 9th and it gets remembered in 2009, but really it was what the fed said that day yes, the market bottomed and what the fed did that day was announce their Corporate Credit facilities and everybody thought maybe this will help fixed income and Corporate Credit, but what that did in terms of improving things like libor and the vix has created it and all of that is feeding upon the strong technicals in the s p the other thing is the s p 500 has a yield of 2. 2 right now versus the tenyear treasury, weve never seen that before so you add up on top of all of the technicals and i always say, things dont move by 40 because everyone is invested unless those technicals start to change, melissa which we dont see changing any time soon it should be bought here so i want to get back to the money sitting on the sidelines because i hear that we hear that a lot. Money sitting in the sidelines in money market accounts has increased by 2 trillion to the best of your knowledge, who is the primary owner of these money market accounts and im trying to understand whether or not the holder of these accounts if theyre hoarding cash because theyre concerned and so therefore the cash may sit on the sidelines for much longer until we have a better grip on how this is all going to play out the slope really steepens in february and march of this year so that looks to us like its a retaillike flow, right . Where main street has flown to the head signs and theyve run for the hills and thats less the case in institutional case where folks are rebalanced and they continue to add, and thats a fomo trade like ive never seen before and it is so expensive to sit on the sidelines and if you want to go to government bonds theyre at 70 like, where are you going to go . And thats why the improvement in things like libor and credit spreads and even the fact that Companies Like live nation and cruise lines have been able to issue debt in this market is an important bridge loan for these companies. The fed has been absolutely heroic and creative and i think that that Corporate Credit facility will go down in history as one of the more important things theyve ever done. So you dropped equity allocations by 20 in march. Im curious, when in march did you drop it because its a pretty critical time to drop your equity was it before the dip or after the dip or what yeah. Thats a critical question there, melissa, this was towards the middle of february when it was clear to us. Apple came out and apple was, like, this is more than a supply side issue and we may not get the demand and this was the middle of february when i started to start with the deputy allocation and it was for the reasons of okay, now we have a Federal Reserve thats committed to avoiding the worst Case Scenario which is a run on cash and the cares act passed 960 and the third thing was the fact that there was a major rebalancing that was going to occur at the end of the first quarter. Right so we s. T. A. R. T. Ed to add that then and then we slowly were adding back to get to a neutral allocation, but i want to be clear here, melissa. There are plenty of fundamental headwinds that well face and its hard to get to an overweight and we would agree with the comments you made especially, and if the markets tend to improve. Phil, great to speak with you. Thanks, melissa Phil Camporeale and j. P. Morgan asset management. Thats important to be clear although phil sounded extremely bullish throughout the interview. Thats very important to walk away with, that you can be constructive here because of what youre seeing in the markets, but not be, you know, pounding the table. Listen, the price action is hard not to be constructive about and the s p 500 is getting back to a level near 3,000 and the 200day moving average is the level it broke out in late october. I am not getting constructive on equities here because of the last point that he made about the headwinds going forward. Yes, there were many actions taken by the fed that will be in history, deemed to be historic, but maybe thats because we have historic levels of unemployment that will take years and years to kind of work off and the fact is that we have a consumerled economy and so listen, ive been wrong for the last month and a half, but the stock market, the s p 500 has been trading between 2800 or 2950 or so, how hard is that that it can put you at the high end of the range or the low end of the range a lot of this stimulus and assistance has been front and loaded and it doesnt seem like there is tremendous demand for more of that in washington right now. So the way i see it is this. The economy sucked last year if you take out the fed cuts and the qe in the fall, you know, yes, the stock market, what did it do . It got risk assets going high are and without that, we just did not have a great economy now the economy is really bad and the stock market is down 8 on the year and i dont see it as a great spot to get back into equities and one last point about the cash in the sidelines, any pad news thats going to act like because that is a stock, those people are in weak understands in my opinion. Taketwo, and plus a big quarter for loswe, what is next for this stock stick around and find out. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex. Plus vitamin d for immune support. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Welcome back to fast money. We have an earnings alert on taketwo josh lipton has the details. Hi, josh. Melissa, if you dig into this report on the segments, Digital Online was a physical retail was a beat q1 theforecasts theyre giving for bookings ahead of analyst expectations handily for the year though bookings are calling between 2. 55 and 2. 65 billion and that was light there and we were looking for 2. 7 billion. Some interesting commentary from the company saying fiscal 2021 will be a light year for new releases, though they do say they expect to deliver strong results. It was interesting on the call with the Ceo Strauss Zelnick talking about the grand theft auto 5 sales surpassed expectations and the big thing is when grand theft auto 6 is coming hes still betting thats a 2022 event. The trailer, though, he thinks likely hits the next 12 months and he thinks that game adds 3 or 4 in eps on the call, that stock was higher and executives began to have some color on the longterm pipeline and executives saying they have 93 titles set for release over the next five years and 47 are for existing franchises and you saw the big reversal in the stock and i was messaging back and forth with Michael Pactor of web, and investors wanted more specifics and more visiblity ility and not numbers. People wanted to know that gtaa, grand theft auto was definitively coming in 2022 and they did not provide that. Back to you. Josh lipton, we saw taketwo opening lower in the afterhours session which was giving back what it gained today in the alltime high session. Guy, youve been on this for a while, positive, what do you do here the stock was a 100 stock and the march low and it was up 50, at one point north of 150 and obviously up 52, 53 and was the quarter in and of itself was very good. I think people were troubled by the guidance to joshs point what do you do i think you look for an opportunity to buy it again, and im not saying its getting there. However, if youre looking for that level it comes in the form of the previous alltime high from september of 2019, i think around 132 so if this thing were to sell off on the back of a Broader Market selloff, 132 is where you get back in and the stay at home stocks, and tim