Points. The s p having the best day since march. This after treasury secretary Steven Mnuchin talked about tax reform. Heres that developing story. Melissa, treasury secretary Steven Mnuchin started to cool as part of the administrations plan for tax reform. He said that there are other ways to raise the 1 trillion in revenue that the adjustment board would have provided. He was careful to say hes not been taken off the table. The retailers got a bump off his comments. The xrt started climbing about 3 00 p. M. When mnuchins comments went live. Mnuchin has waffled on the request ein the past, always saying there is some concerns and that theyre studying it. Hes even raised the issue of how the curbs rency would adjusn this plan. At the very least, we have not yet seen the phenomenal plan that the president promised back in february. And democrats in the senate are lining up to oppose. So if there is no tax cut this year, is the hope of a tax reform enough to keep this rally going . Guy, what do you say . Yes, i think so. Because i think people are saying, you know what, they push it back a little bit, but theyre on track to get it done. Steve mnuchin seems to have his feet under him, and gary cohen seems though have a stronger presence in the blouse. The way the market trades, though, i didnt see 180 dow points despite all the talk of mnuchin and despite that Nothing Happened over the weekend. I dont know where this rally came from. Ill say this, the transports reversed today, closed higher, and probably will go higher still after some of the earnings we saw in the airlines. To underscore some of the communities mnuchin was saying. Basically saying dont worry about deficits, they could do tax cuts with deficits. And if you get the growth, thats what matters. Thats the easy option that had been bantied aboutthe weekend. This country can run into deficits and be just fine. Were not a country that needs to export our way out of something, were a country that actually produces something here. I totally agree with that. If you want to look at walmart and say, this is great news, go out and buy walmart. The other big issue for walmart is there are way too many other stores out there like walmart, with the lack of demand or amount of floor space. I do think theres an opportunity for these things to move higher. I do believe no one really believes what theyre doing on border adjustment. The country could run on a deficit. Its actually the Freedom Caucus that will not let them run on a deficit. They called it the candy option of tax reform where you have cuts on corporate and individuals, and repatriation. And hopefully growth will pick it up. When they get back from recess, congress, on the 28th, the hundred death dth day, maybe th market rallied seven handles because of this. People got a little beared up thursday afternoon. Down 80 pits from the high on thursday. What you said makes it sound like were resigned to candy at best, right . Candy at best is exactly where you think we run a deficit. P. Im telling you that it may not happen, because you mean that wont happen. Candy seems pretty good. Yeah. Im skeptical that its going to happen. Remember, mnuchin, who, you know, i think very highly of mnuchin actually, but the first time he came out, he said were going to have something by august. Are ebb that . That is so completely off the table right now. I think its so much harder to get anything done than they anticipated. I dont think health cares over. Im skeptical theyll get anything done. Hes talking all this talk i dont think anythings changed about of he spoke about it today. To be clear, walmart was a 71 stock last august. Or before we even dreamed or had a nightmare about where we are in washington. Bottom line here is, this is a company that has major issues and they can beat on price for so long but theyre not really growing the top line. I think hes still keeping the adjustment border tax alive to trade it away later. Because its so unpopular. I dont see it passing. Keep it alive just to have some leverage. Youre still talking the talk that may or may not come through. Weve been through this rodeo quite a few times, since january. Does it mean the rally we saw 3 00 into the close in financials for one you know what today is . What day is today . You tell me. The national highest poetry day. This is topical. Late day surge in banks sends the s p higher. Trump rally intact. I still like gs. Just take a look at the chart. It holds 220. That was master million. I wrote it down because i didnt want to mess it up. Off the numbers thursday morning, this is encouraging. Its obviously about rates. Big technical level, a level that really after that coupleday surge after the election, has held. So, you know, that should be pretty edge couraging. Lets not forget the s p on thursday was down 3 from the alltime highs. Its banging around. Banks reported on a day when people were preparing for a long weekend and we were worried about missiles flying out of north korea. Think about it. We gotting with ewanted from banks on thursday in terms of the guys that needed to report and give us condition on the sector. And you got the move today. That is significant. I think after 40 basis point pullback on the tenyear, you went from this is where it all comes down to. I think a lot of people dont realize, look at chinathe weekend, theres global growth. Lets go to rich roth. What are you seeing in the s p start . Melissa, last week panic seeped into the market. That panic is apparently unwarranted based on our technical work. Look at this chart of the s p 500. This was a pretty good chart. Were talking about 8 of 11 sectors higher on the year, up 5 through just hf and a half months . 3 you up, an alltime high . You broke the low of the 50day moving average really. But thats an endorsement of how strong this has been. When you zoom out and look longer term, you start to get a sense we could really do some work on the upside. For the first time this year investors are leaning toward the short side. Look at this entire rally here. If we brought it back even further, really starts 2012, the markets up 100 . We break out above the multiyear trading range that were all aware of. Im not going to tell you youre going to get three years, but youll get a lot more than three, four months. You can start to see some of the market internals here. One of the great reflg lagss here. Look at the consumer dischrisary sector, the third best performing sector right up there with health care, 7. 4 yeartodate here. Contrast to the s p, that shows you just how strong its been. The consumers not dead. Theyre just more discretionary. You see what i did there. Probably got a Little Something extra here. Or maybe not. That could be it. Theres plenty more reasons to like this market. And maybe Consumer Discretionary is the last sector that we fet. Investors are leaning into a market where the panic was clearly unwarranted. Now youre setting up for this market to move higher. I think you didnt need another chart. You got your ticket over here, rich. Wow. Boom. Thank you. When you look at that xly you were just talking about, 25 of that is amazon, comcast and home depot. Those arent really discretionary names anymore. Theyre kind of staples. For me, when you consider that amazon at almost 15 of that, youre trading amazon on that xly. Thats not a knock against the market that three of the best companies in the market are the highest. These are the bigger surprises. Youve seen in terms of comcast and home depot, housing, one of the about ig surprises this year. And amazon eating everybody elses lunch. In terms of your call on xly, does it matter that its not a broader based rally that youre seeing in xly and that its really driven by a few names . I think the math, you could special play games with the math. Theres a lot of breadth here in the discretionary place here. Youll find that in almost any etf. Thats the way the world is. So just to say that we cant pie something or endorse something because the Biggest Companies with the biggest market caps are doing the best isnt right. Dan, isnt it good news that these are Consumer Staples stories . . I agree with your unwrapping. Unpacking. Whatever. Bottom line here is, look at tiffany, look at ferrari, real Consumer Discretionary. You see a lot of this stuff booming. Youre seeing strength in the stuff that may be wrapped up as the Consumer Discretionary. P the s p closes below what level concerns you . I think 2300ish. People like big round numbers. But to your point, as you see from my work, the intermarket approach, it will take more than the s p 500. The yen surging. The collapse in yields. The rally in gold. And then you look at the s p, it doesnt even blink, not even 3 . After 17 rally. Its telling you, youve got yen multiyear highs, the back drop is there. Its not just a level in the s p 500, but clearly below 2300. You start to think about a deeper correction. Rich, good to see you. Thank you. Thank you. What did you do today, dan . Thats a really important point and he named panic. To me, that means that its a very crowded trade. Okay . Let me tell you something. Ive had a spy option, bearish option position on for months. It has a tight band here. I think you get a 2300 print in the next month or so. And then i think you see panic in u. S. Equities at some point this spring. What would that do for the vix . I dont care about the vix. What i care about, had esaid panicked. We havent seen it in u. S. Equities all year. At some point in the not so distant future its going to be disorderly and thats when well really be using the p word. Are you playing for 2300 . Thats far from a scary level. Yeah, i think youre seeing it 2300, 2200. Chill, man, just chill. Youre telling me its going to pull back 2 and thats going to be a big deal. Im not saying that. Im reiterating what rich ross just said, thats a level a lot of technicians start to get worried. I think its a crowded trade. I think you felt the smarts there. Guys, break it up. I think the dax is there. Deutsche bank. I think you need germany to get back on the wagon for the s p to continue to go higher. I bought xlf back today. It had a lot of bank exposure. I was not short the banks last month. I didnt want to sell any to pay taxes. Bought it back today. Got lucky in the timing, premnuchin. Coming up, netflix and united out with earnings in the afterhours session. The stock is back moving higher by about a percent. Weve got answers. Roger mcnamee said there is a perfect Storm Brewing for two widely held tech names. Hell tell us what they are and why hes so nervous. The smart money posting best year since 2013. What are they buying . Weve got some clues. Much more fast money right after this. Earnings alert on united. Susan lee is in the newsroom with more. Yeah, despite the controversy last week over the forcible removal of a passenger onboard an overbooked united flight, the airline is now guiding for a Strong Quarter ahead. Forecasting the fis net Revenue Growth into the year. Better than any other airline. And the shares are up in afterhours. Uniteds ceo also addressing last weeks passenger incident in the earnings release. Munoz saying it is obvious from recent experiences that we need to do a much better job serving our customers. The incident that took place has been a humbling experience, and i take full responsibility. This will prove to be a watershed moment for the company. There was concern that maybe uniteds lucrative transpacific roots might be impacted after calls to boycott the airline in china in response to the viral video. Right now it looks like business as usual. As for the First Quarter, the quarter that was, the beat actually marks the fifth straight united has come out ahead. Theyve only missed twice in the past 13 quarters. The stock today halted a threeday slide. Up some 25 over the past year outperforming the rest of the airline sector. Sue, the Conference Call is tomorrow, right . That is correct. We already have a me a kol pa as you heard from munoz. That should be interesting to listen to. Will you on that call, karen . I think hes doing a great job post the first two days trying to do the best he can with the pr disaster. I think hes doing a good job with that. I would be as conservative as i could coming going into this call, actually. Im wondering if things are actually better than that. Or maybe they werent conservative. I dont know. I would have been very conservative because i dont think the fallout is yet felt. Maybe it wont be very much at all. As a stockholder, i think it wont be a ton. But id still try to be conservative. Its an opportunity. The moral outrage is on some level appropriate for a guy that didnt deserve that. I think people mischaracterized the whole thing. The impact on the business will be almost nil. Their investor day three or four days ago they basically reaffirmed. Airlines last week as a group did very poorly. Sentiment in the sector for airlines is terrible going into the earnings season. So far, if anything, this tells you that this might be a low point. I really do. At least for this cycle. United is a very good story. All kinds of games, the mini one. How many times will oscar munoz say im sorry on the Conference Call tomorrow morning. Every time he says it, does the stock go higher . I put it at 4 1 2. You like that . Why the half . Whats a half . Hes off the hook. If its 4 you lose, if its 5, you win. If its 4 and comes at 4, its a tie. Thats not fun. Youre almost indignant about it. No, im not. Youre coming at me. 8 1 2 times forward earnings. They guided higher for passenger revenue available seats. Its a cheap stock. If you want to play the airlines, i still say priceline is the best way to do it. I would say that the last time he says hes sorry is when they do a deal to close this situation up once and for all. A settlement. They have it sealed. Stop talking about it. Its in the Rearview Mirror and thats it. All of these arguments are the ones you want to rest on. Lets take a look at shares of netflix. The stock hitting an alltime high. It might have something to do with adam sandler. Well explain what thats about. Im melissa lee, youre watching fast money on cnbc. Tech guru Roger Mcnamee said a perfect storm is brewing for two widely held tech stocks. Plus, talk about a drug bust. Lets get down to business and well get the hell out of dodge. Not that kind of drug bust. Talking about eli lilly shares which are tanking following the tanking of the fda arthritis drug. This is the new new york. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov various shouting heigh ho its off to work we go woman on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. And each job created by the Energy Industry supports two others in the community. Altogether, the industry supports over 9 million jobs nationwide. These are jobs that natural gas is helping make happen, all while reducing americas emissions. Energy lives here. Wow. I saw them at the garden thursday night. Hes back. Welcome back to fast money. Stocks surging today, having their best day since march 1st. The dow up more than 180 points. Roger mcnamee said theres a Storm Brewing for two mega cap tech stocks. Hell tell us the names that got him so nervous. Call it the billiondollar drug bust. If history is any indication, now could be the time to buy. We will explain. We start off with an earnings alert on netflix which just hit an alltime high in the afterhours session. Thats right. Netflix reported revenue in line of expectations and earnings that beat by 3 cents per share. The Second Quarter earnings outlook also came in lower than expected. Now, netflix shares swung lower, and then swung higher. But on average, netflix swings almost 12 up or down after earnings. The Movement Today seems moderated by netflixs projections of more subscriber additions in the Second Quarter than expected. Netflix saying it will hit 100 million members this weekend. And is on track to add roughly as many subscribers in the first half of this year as it did in the first half of last year. While Ceo Reed Hastings didnt provide any additional color on the companys contest cost, it will spend 6 billion on contest this year. He said in a letter to shareholders that the netflix will spend 1 billion on marketing this year to drive member acquisition. Hastings also weighed in on the new streaming services, saying the company doesnt think they will impact netflix as netflix sees itself as a complementary service. And the right to stream thursday night games is not a strategy that netflix will copy. Netflix is all in on adam sandler. Sandler making several movies for netflix. The letter to shareholders, netflix members have watched more than 500 million hours of sandlers movies since the release of the ridiculous six. Net flickss Earnings Call will be streamed on youtube at 6 00 p. M. Eastern. Did you say 1 billion in marketing . Thats a lot for a customer in terms of acquisition cost. The difference now is, theyre not just advertising the fact that they have the streaming service, but theyre promoting their original content. Billboards are seen around los angeles trying to compete with the big studios. The original content that theyre marketing. Thank you very much, julia boorstin. I was going to say keep us posted, but there is no Conference Call. Thanks, julia. The other number was half a billion hours plus of adam sandler. I would think that would be sandler fatigue at some point. Two important takeaways. One talking about the original content, because they missed the ad in q1, because of the house of cards in q2. What else is important is they talked for years, theyve been funding this International Expansion with the u. S. Subgrowth. In the existing quarter, theyre forecasting 600,000 net ads here in the u. S. 1. 4 in q1. It will be about International