Earnings we start off with the one chart in the market that seems to be getting no attention check out the xrt, the retail etf up 12 this year the xrt taking another leg higher today on the back of a strong retail report is this retail recovery for real and if so, how are you playing it brian kelly, kick us off. I think theres a couple Different Things yes, there is a retail resurgence i think a lot of it had to do with the stimulus, but a lot of it had to do with a change in the way people are working the top five to ten holdings are heavy ecommerce, overstock, etsy, wayfare. Be careful what youre talking about in extrapolating this to mall based retailers i think mall based retailers are going out of business. This is the new wave of commerce its ecommerce. I do think that continues. The caveat is it would only get stim stimulus and people dont have that 600 check dor, do we get stalling in this do we get a stalling with walmart . Maybe theyre not as exposed to the stimulus check since they deal with more staples like groceries and things like that. I do think target and walmart are a bit insulated. If you break down some of their revenues, walmart for example, i think between 5060 of their revenues are coming from grocery or grocerylike items. Thats pretty high up in looking at a list of necessity items to your point, i mean theres this tug of war going on in terms of what stimulus is going to look like, unemployment and the benefits thereof if we dont get that right, i think some of the names in this xrt are going to feel the pain. Steve grasso, bk mentioned a host of interesting names including etsy thats where you hand your hand crafted cheeses and homemade face masks im not sure what you believe in when it comes to this retail rally. I would have went the same direction as bk. Ov overstock is the number one holding. Its up over 1200 year to date. Etsy is up 190 . Wayfare is up 200 thats all outside you have to go with the amazons. I wouldnt be a buyer of any of these things that are up over 100 but you have to be a buyer of ecommerce walmart, where have they worked on for the last couple of years . Their ecommerce, their platform but theyre still stuck in a brick and mortar evaluation. As far as the Retail Community or the sector exists, it depends on those checks. 55 as bonawyn said in walmart comes from groceries you need those checks for groceries, those items that you cant do without if those checks get held up, i think retail should be okay. The risk is that when congress eventually some day in the future gets something done, hopefully, that those checks will actually be smaller than the 600 additional in benefits that people have been getting. Will we feel that in that retail trade . I think a lot of it has to do with ecommerce and obviously the stimulus checks. Thats going to be a big part of this whole thing ecommerce, those who put down the money to create something that was so big and they understood the potential going forward, theyre going to reap the benefits of this whole thing. Obviously walmart, target, the digital platform at target and the growth theyve had on that, its just amazing. I think that can continue. What id like to see more of, have folks that have gone to these stores, are they starting to as weve opened up a little bit more, are they going to be starting to spend money in different places grocery is fine except for the fact theres no margin there thats why i think they have so much of their percentage on groceries. Its absolutely essential but part of the problem is theres no margin there. Thats why i prefer like a target over that or a sams club or costco. I think those are the opportunities that are out there because folks are going out, theyre spending, theyre going for some of the essentials when they start to stretch that out more, the margin side of the store is much bigger than everything grocery related. Next week theres a big slate of retail earnings on deck break out your credit card because its time to play a game of. Shop it or drop it thats right. Its americas favorite game lets kick things off with walmart. The nations biggest retailer reports on tuesday bonawyn, are you shopping it or dropping it . Im shopping it, although all of these retailers, i insist on getting coupons to buy anything there. Walmart, we talked about margins, revenue mix they retain pretty strong Gross Margins. You see revenue climbing Free Cash Flow is strong, manageable debt load im definitely shopping it next up, tj maxx. Brian kelly, shopping it or dropping it . You know what, im shopping this one i talked about the mall based re trouble whos going to benefit from that whatever the graphic is, put that up there. Tj maxx is going to get those extra items and theyre going to benefit. Theyve been crushing it anyway over the last several years. Im definitely shopping this one. While were on it, you mentioned etsy i would be remiss if i didnt thank grasso for the crocheted apron he got me for my birthday. Thank you, steve. Youre quite welcome. All these guys actually like tj maxx except for bonawyn why not . Its about following the cash if you look at the valuation, their debt load, its a little outsized for me. I think theres other ways you can play this. Lets turn to home depot. Pete, shop it or drop it im going to be shopping this one. I love just about everything about them the only thing thats starting to get a bit stretched for me would be the p. E. Level which is closer to the upper 20s and they normally are in the lower 20s. That part of it is a little concerning but the ecommerce is great. This is a company that has incredible cash flow theyve got a dividend yield of about 2 i like just about everything about home depot we all know people are staying at home. Theyre going to home depot for all their appliances or any other things theyre looking for. Shop it. Im a shopper of it too i like what hes done with his yard ive been following him on twitter. The amount of mulch hes put down is unbelievable i think everybody else out there is doing that. Youre at home, you want it to look better. I say you shop it. Finally we round out the week with foot locker earnings on friday the stock is down 26 this year. Steve, shop it or drop it . Im going to drop this one. Dpro Gross Margins are under pressure due to a mixed shift in how theyre selling goods these days plus, you dont know if were going back to school, what sports are going to look like. The one thing i do like about it is the Cost Management theyve done they seem to be somebody thats coming out of this thing as theyve opened up, theyre seeing a lot more traffic. I think it is something we can shop this is a 40 stock that until the pandemic was consistently a 40 stock but still trading into the 20s. I think theres some upside there with anything positive a number of 13 f file iine is today. We have a fun group of Holdings First of all, were going to start off with a thematic trade out of appaloosa management. Interesting theme developing there. Also checking out whats happening with regard to overall the Berkshire Hathaway he ease wells fargo, a 27 reduction jp morgan cut by 62 Pnc Financial a 40 reduction. They got completely out of their Goldman Sachs shares as well Occidental Petroleum is are not completely out of their stake in Common Shares of occidental. Maybe some Oil Commentary there. Then one interesting look here its a new position for Berkshire Hathaway in barrick gold materials one of the best performing sectors over the last couple of months gold prices are a part of that story. Thanks a lot. The caveat to all of these filings is they are as of the end of the second quarter. I dont know whos got the dog probably bk. Yeah. Positions could have changed since then Berkshire Hathaway has been an acquirer of bank of america very recently part of that selling of financial stakes could be portfolio rebalancing here brian kelly, the gold mine of Berkshire Hathaway, that really caught my eye. That to me is the biggest news you heard my dogs barking. They thought it was huge news as well this is Warren Buffett, the oracle of omaha, the best investor of all time that has consistently for the last decade said gold is magical metal youll do better off buying American Companies here he is selling banks, American Companies and buying into gold. To me, the signal for this is that hes talking about a longer term view. If youre following him, youre saying, wait a second, Warren Buffett, the oracle of omaha, hes say iing [ inaudible he is still investing in gold speaks volumes in my point of view i am certainly following the yellow brick road to omaha you know how i feel about gold were talking about Inflationary Pressure weve talked ad nauseam about the effects on the dollar. What the effects of the current fiscal stimulus is going to have on the back end. Sometimes its simpler than we try to make it hes reading exactly what were reading. Hes watching the effects. This is not only a safe haven, this actually might be the new trade going forward. Listen, theres real risk that the dollar and i hate to really take it this far, but theres real risk. Its something that could be taken into account that the dollar might no longer be considered the reserve currency. If that happens, i want some gold in the portfolio. It will be interesting to see if this is a position that Warren Buffett himself initiated or if it was one of his lieutenants. Iqiyi taking a tumble today amid an investigation. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Wyou say the customersg a waymaklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy note20 ultra 5g. Shares of iqiyi tanking after the sec is looking to fraud allegation months after a published report accusing them of inflating revenue numbers iqiyi says wolf packs report contains numerous errors joining us now is dan david. Great to speak with you. Good to speak with you. The allegations are pretty damning. You stated they inflated 2019 revenue by between 2744 . They basically made up expenses to show fake Free Cash Flow being burned off in order to hide the fraud is this a company that goes to zero or is this just a company that is making a Small Business look bigger . Our research was a year in the making and hundreds of thousands of dollars prior to their ipo, we believe they were inflating their deferred revenue, which in this space becomes actual revenue doing that, they could never really catch up to the fraud they committed according to our Research Prior to their ipo so they have to deal with things like acquisitions and inflation of content and things of this nature we wrote about in our report theres new rules coming out or expected to come out that would make chinese adrs conform with u. S. Accounting standards is that area sort of rife with potential targets for you . I think it is rife with such targets for all of us. Its also interesting that the rules that they have to follow the same accounting standards we have followed all along, which is ridiculous at face value. I dont think theyre ever going to be able to do that. Iqiyi along with some Bigger Companies are already looking eventually these Bigger Companies are going to be all dual listed and have it out. What were going to be stuck with are dozens and dozens of Fraudulent Companies that arent going to be able to list in hong kong its going to add to the billions and billions of fraud that have been committed on us for 15 years. Did you cover your short at this point or is there more downside i still have some short on. I covered a lot of it. I do have some short on iqiyi. I do have some short on baidu as well i dont think they were unaware of the issues at iqiyi even though in their Statement Today theyre distancing themselves from iqiyi im not buying that at all thats not what our research showed i want to move onto another idea that its not a chinese adr. From the march lows in the market this is a stock thats more than doubled at this point. Whats the reckoning for this short that you have . I just dont think the total adjustment market inspired medicals is anywhere near what they tout. Weve not been able to see this Invasive Surgery where youre basically cutting a hole in somebodys chest and putting something that shocks your nerve while youre sleeping as a senat snoring remedy rather than using a cpap. Theyve never made the numbers theyre never going to make the numbers. Theyre a company that exists on fundraising theyll continue to do that. The reckoning will be when this pandemic is over, they cant just blame everything on the pandemic theyre going to continue to fail this is my favorite short, actually im not one to have a short for years and years, but i will hold this for a very long time because theyre never going to make the numbers. I do want to get to another one. Remark holdings. This is a very Small Company usually on cnbc we have market cap requirements you apparently do as well. When i listened to the presentation you made on remark media, you say this company is also fraudulent. What struck me is you specifically targeted Dave Portenoy hes known as the robinhood of the day traders these days because of his daily day trader global why did you bother with this company that is so small why did you bother going after Dave Portenoy who helped individual investors come into this market . I think hes hurting individual investors in a very big way. Hes financially ignorant on my given day. When there are people out there right now that are not working. Theyre at home. Theyre day trading. They should not be listening to somebody that is so financially ignorant that hes investing in companies he has no idea what they do. He literally says i have no idea what this company does theyre down 40 now you have remark down 3040 which is selling cameras to the Los Angeles Police department, to schools that chicken is going to come home to roost. When you look at the inspire md, heres a guy that has over a million followers. If we all buy, the stock will go up no kidding when he sold it at 20 profit the next morning, investors took a 20 haircut. No, he is not helping anybody. I dont see myself taking advice from somebody who sits on the beach at Marthas Vineyard sipping champagne trimming his toenails giving out stock advice. Points taken, dan but separately even just aside from dave portnoy these companies objectively in your view remark for one, its a fraud . I believe theyre committing fraud, i do. The filings we have pulled from china sew thow they do not match numbers they have here in the United States. They have 20 million loss more in the United States in their fi filing than in china how do you reconcile that . Thats simply not true dan, its great to speak with you. We hope youll come back really enjoyed the conversation. Thank you very much dan david of Wolfpack Research time for the final trade lets go around the horn brian kelly . I think you stick with the oracle of omaha. I rarely agree with him but you buy Newmont Mining uri united rentals. We have no vision for what the future is going to look like you want to be renting equipment, not purchasing it uri. Bonawyn eison walmart. I didnt get a crocheted apron. I didnt get mine thanks a lot, grasso. That does it for us here on fast money. Dont go anywhere. Options action is up next. At leaf blowers. Bed you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Kramer good morning, mr. Sun. Good morning, blair. [ chuckles ] whoo. Im gonna grow big and strong. Yes, you are. Im gonna get this place all clean. Ill give you a hand. And im gonna put lisa on crutches wait, what . Said shes gonna need crutches. She fell pretty hard. You might want to clean that up, girl. Excuse us. When owning a Small Business gets real, progressive helps protect what you built with customizable coverage. And im gonna eh, eh, eh. Donny, no. Oh. Happy friday, everybody. Its time for options action. We have a great show liened up for you. Keep your receipts. Carter worth isnt buying the bounce in retail sales data. In fact, hes drawin