Right i mean, its not surprising given what the stock has done that insiders would want to monetize some of the extraordinary gains. I cant quite tell how much is insiders any Stock Associated with Insider Selling is fine. I dont know what price its going to get done exactly. Still, its just enormous from where it was it hit 80 and then went down to 40 its been a crazy ride i dont blame them for wanting to take money off the table but i wouldnt be a buyer on that offering. It allows insiders the sale of up to 53. 4 million shares so we knew this is happening in fact, some analysts said this is a ticking time bomb hanging over investors, yet we are seeing an outsize impact on the shares on a day when neo gets rated a sell over Goldman Sachs because of the run weve seen an enormous run over the entire space here. Yeah. Even within the auto, hydrogen fuel, the entire space has been a place where momentum traders have been chasing momentum theyll also be chasing on the way out. Weve said for weeks these valuations are difficult to justify. Weve had a lot of dialogue with the ceo on this show i think trying to understand how much of this is promised, how much of this is reality. The company has cap x needs but this is a case where people are taking chips off the table its actually a case where people are going for liquidity it does make some sense, but its disturbing especially in the context of a lot of promises that have been made. Down 17. 5 . Some people might be taking a look at this and thinking this is my opportunity to get in. What do you think . This all hinges on that clothe val growth value play. Yesterday there was a headline that Deutsche Bank put a 54 price target on the stock. This is just, as we all know, very, very early in the story for the stock. I dont know what to do with it, nor do any of us no one can say for sure. But it does seem if growth comes back, this stock will probably rocket higher. Its way in the infancy. Were not really looking at any trucks were not really looking at any factories. This is way in the early innings. This is a crap shoot. For the bulls out there, no factories is a good thing, finding a partner to manufacture as opposed to taking on that cost by tesla. I think initiation by rbc, they said this looks more like a Business Plan and not a business of a company in its infancy and yet being rewarded with such a high multiple. Yeah. I think people harken back to when tesla went public and theyre like maybe ive got a shot at the next one, which may or may not be true weve had Trevor Milton on three times now if im not mistaken, at least twice im sure he can amplify or explain whats going on. Ill say this, if this was apple that did Something Like this, Something Like this meaning announcing a secondary on friday in july after the markets close, id say thats not very cool thats exactly the term of using. Its not very cool it might be fine it might be a huge buying opportunity. But the people out there that are probably long on the stock are looking at this and saying, you know what, i feel like i just got rooked. Thats why people get so infuriated when they see things like this. The timing stinks in my opinion. Should investors think theres something nefarious going on because this comes on a friday after the markets close or did we sort of know about it because the registration was filed and so it was a possibility at that point on right i think to give the benefit of the doubt, right, registration was filed. I think the stock traded well above the price. If you were familiar with all of this stock, this particular instrument and the warrants, then you should have expected it but i agree with guy, the friday night thing, not cool. Its the least good day to do it. Yeah. Agreed there. Lets move on and talk about the markets. Transports trucking higher this week, rallying more than 6 far outperforming the broader markets. This goes to what steve grasso was talking about in terms of value outperforming growth this week what does this say about the future of the economy . You believe transports are a leading indicator of Economic Activity so this should be a good thing im very familiar with exactly what, i dont think most people would admit that dow theory today means Something Different than it did 50 or so years ago. I dont think its nearly as important to the economy this is not me trying to sidestep i think its a much different economy now in terms of the transports good for tim, karen and steve. Theyve been on this, especially tim with Federal Express its had a tremendous move the iyt 176 i think is where we close. Its smack up against levels when the s p topped out in june. Now its proven itself now it has to prove itself to get through this level of resistance fedex absolutely is broken out out of a 2 1 2 year down trend thats the guide sign. The iyt needs to close above 176 or so in my opinion to verify that. Tim think about mid may is really when we started to see the change in the transports and the change in behavior and the outperformance of the s p. The entire transport sector as outperformed the s p by 10 in the last 43 days we talked about the disparity between growth and value the s p outperformed amazon by almost 8 in this last week that weve just gone through. Weve seen a lot of these storie stories. Ap l a lot of the story with fedex was also lower cost case and starting to see some momentum in their ground business and call it Operational Efficiency in the overall Business Model if you look at that chart also and carter may or may not have a view on fedex specifically, that pop from the earnings it held, its essentially a flag pole formation. Its a stock that spent two years underperforming the market if you follow fedex, it massively underperformed the market from january 2018 to those lows well ahead of the market and much in the ways of transports were also outperformed when theres some sense some of the leading indicators have bottomed i dont know where we are with covid19 and the real economy, but i will tell you fedex is following a script that i think it should be following right now. On earnings better than expected earnings, new record high in todays session. Karen, are you in fedex . I am. I am in fedex. It just got too cheap. I agree with tim on fedex. Guy mentioned the dow theory its a leading indicator im wondering if some of this strength was when the covid situation was looking a little better maybe three or four weeks ago and if we might see another little bit of a slowdown as things have sort of reclosed so i still think its cheap certainly relative to itself its got a long road, a lot of ground still to make up. So im not selling any here, but i wouldnt be surprised if we did see a little bit of a pullback some of those earnings today were up going into them and still they performed well. Lets switch gears were watching astrazeneca set to release on monday shares have climbed nearly 14 this week ahead of results on monday it was reported that the results could be positive here steve grasso a lot of this rotation we saw this week was on the back of positive vaccine data from various companies. Could we see this rotation continue going into next week, assuming the oxford study also has good news . Yeah. I think were going to be looking at this all the way into year end Goldman Sachs pointed out theres probably four vaccines in the later stages offing ready f being ready for use. Were going to hear about these headlines probably for the next couple of months on an everyday basis. I still think ibb best way to play it, up 17 year to date those are ways youre going to kind of mute your risk when you lock at stocks like moderna that was up big today and that have rallied tremendously, youre never going to get those unless youre in the right one. I just doubt that anyone really has an inside track on all of these to know which one to pick. I think for the average person, the ibb is probably the best way to go. Its interesting that modernas shares popped again today, up 16 in anticipation perhaps of azn validating some of their results theres a note that crossed my inbox today about the release on monday it basically said if it shows there was antibodies produced, that there was a tcell response and it had pretty clean safety and side effects, this could be bad news for the smaller or mid cap biotech stocks it could show that big cap pharma is the place to be because theyve got a handle on it with much bigger trials and potentially better ability to manufacture. In terms of azn, absolutely big cap pharma even when they had the cross hair of both parties on their back, theyve really done well eli lilly has been a monster we talked about ibb. I think it made a new alltime high again today that continues to dprie s ts to. I cant speak about moderna, the move today i still think if youve enjoyed the move higher off that 50 handle, youre taking profits. Not to cast apersispersions thei think youre really playing in the deep end of the pool with ibb at least you mitigate some of the risk in a space that i still think has tremendous upside. Technology falling alltime highs. Amazon putting in its worst week since february what is next for this secsector . Carter worth is here carter, what are you watching . Theres a couple things its worth noting we are in the history books with 91 sessions without having three consecutive down days. If you look back at the history of the entire sector, sectors date back to 1989 when they changed the nomenclature, this has only happened one other time it happened in the july to december period of 2004, went as many as 108 sessions without having three days in a row down. Were at 91. In 2004 after that happened, the sector dropped about 15 in a period where the market dropped 7. So twice the rate of the market. Lets look at a few charts, one of three the first is how orderly this has been this is essentially looking at the tech sector since the low. You can see here weve had six distinct drawn out you can see the duration typically two, three, days, three, two, one four, all on very shortterm. The drawdowns are between 8 and 5 almost universally. You have these dips. This is the part thats in the history book they hold and they stick and they dont follow through. So the question is this second chart. We are now right on the trend line thats been in effect since the low of march will this be like 2004 where we eke out a bit more, or are we already on borrowed time and the message from amazon is that this has reached its sort of end run. The final chart is a twopanel chart. Regardless of how good this is and its been darn good, what we do know is this, that the tech sector has still not recovered losses to the s p since its peak youre looking at a twopanel chart. That is the entire tech sector on top on the bottom is the tech sec r sectors relative performance to the s p. You can see the gains are still not as much as the gains in the s p dating back to march does this mean the entire index falters . Does this mean a change in leadership remember, that has been the hope theres always trades and cyclical things but theres no enduring play in a value name. A value name is a missed pricing. Someone thats winning over time is where your money wants to be. You dont want to find something you can catch a train unless you really have that kind of dexterity. There are disrupters taking market share on a longterm basis. On a threeyear basis Royal Caribbean versus a microsoft, thats ridiculous. Carter, thanks. Tim seymour, that sounds pretty dire well, once i figured out what gnome chatunomenclature means, y got kpietd abouexcited about it its very difficult to see tech breaking this outperform relative to growth on a p. E. Basis and an absolute basis. I think well see value come back a lot of these industrial name versus sonames have some room to grow coming up, sheila bair send us your burning trading questions. Feeling stressed . Try new natures bounty stress comfort. Three unique gummies for your unique needs. Find peace. Boost mood. Sleep well. Stress comfort comes naturally, only from natures bounty comes naturally, Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. Touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Welcome back to fast money. Former fed chairs sharing their views on the governments policy respond to the pandemic. Their bottom line, more may have to be done in their blog post they write based on our experience in the Global Financial crisis, we think the fed may find it needs to go further. Although banks are currently strong, it is possible the pandemic will so damage the economy that credit losses mount rapidly. What could the fed do next lets get some answers from sheila bair. You have said in the past that you hoped that banks couwould n pay dividends, that would be the responsible thing to do. The earnings came out. You say theyre better than expected but what do you think the banks are underestimating in terms of the damage the pandemic could cause . Theres tremendous uncertainty. Better safe than sorry conservative the capita conserve the capital now if it turns out better than they fear it might be, they could always pay a special dividend. Traditional lenders are going to be the hardest hit were seeing that with Second Quarter results. Theyre being hit hard by compressed interest margins and also win losses provisions are really high. I think they should stick with the conservative because the Small Businesses and householdings cant access the corporate debt markets they need bank lending for the big wall street banks, yes, they did have a good quarter. Lets face it. Those profits are coming courtesy of through the trading profits. I think thats not going to continue i think 1. 2 trillion corporate grade debt has been announced this year. Some of these Companies May borrow now, but i dont think theyre going to make it and those losses will eventually slide through into the Banking SectorEverybody Needs to be cautious now. I would be suspending dividends, holding capital. You can distribute it later if things turn out better. Karen my question is there a way for the fed to target specifically regional and smallsmall Community Banks that havent benefitted by some of the Capital Markets activity thats a really good question i think theyve been trying. Theyre good at infusing money into large financial institutions, supporting financial markets, getting help into the smaller institutions and direct support for main Street Lending is something theyre not wellequipped to do. I think we need more action from congress im hoping theyll have another stimulus package we need more support for Small Businesses it really needs to come from the politicians. The fed is not wellequipped as ive spoken on this show, i think ultimately Digital Currency might provide a way to get support more directly to main street. Their tools are just to prop up financial markets. Its very difficult for them to get help broadly into the economy. The former fdic chair the krcfo of bank of america sa significant credit card losses wouldnt show up for 180 days. Thats a delayed readout of what the consumer is feeling i dont know if the loss provisions are enough, tim, for unforeseen and uncalculable losses. Think about the loan provisions were even amped up that much more to sheilas urgings, i think jp morgan took a lot of those trading profits and plowed them into higher provisions i thought that was pretty conservative it does tell you were very concerned. This morning moodys has a record 414 companies on their list of financial trouble. Here we are seeing the fed go out and buy the debt of apple and other big companies, but those companies have no problems issuing debt thats not where the problem is. Think of the retail sector, brooks brothers, j crew, jc penney, think of all these companies that filed for bankruptcy i think the credit cycle is worsening, not getting better. If the argument is to be deserve on dividend payouts i think investors should want that too for the Balance Sheet of the companies they invest in youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for first responders. Firstnet. The only officially authorized Wireless Network for first responders. Because putting you first is our job. I want to stay at unh. Steve grasso . I bought on semiconductor Ticker Symbol on it bypassed that strike price of 21. I decided to hold onto it. Karen so not finding a lot new to buy. I dont want to sell what i own, but i do want to buy s p protection the vix as near as low as its been since the crisis started, 25 and change today. So s p puts. Guy intel, mel. 60. Feels like its going higher. That does it for us options action is up next. Just over a year ago, i was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. So thank you. Now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. Happy friday welcome. Another installment of options action is here. Heres whats coming up on the big show tonight asth madonna once said, we ae living in a Material World this is carter worths world and hell do the singing, thank you very much, singing the virtues of materials then lizzo once sang, where the heck my phone. Tony zang knows. Hes found tmobile all up in his contacts hell s