tv Fast Money CNBC July 30, 2013 5:00pm-6:01pm EDT
it's sure something to watch closely and we will on "closing bell." actually we ended flat today on wall street after a wild ride all day. we had selling taking the impact out of the positive territory. nasdaq was the winner up 17 and the s&p 500 tonight barely positive, up two-thirds of one point. have a great night, everybody. that will do it for us. "fast money" begins right now. >> live from the nasdaq market night in new york city's times square i'm scott wapner with our traders. let's get straight to the big story fast is following this evening. the tale of the taper, tomorrow marking the fed's decision on interest rates and we're getting one step closer to the fall where many believe the beginning of the fed's taper comes into play. listen to what our own steve leaseman had to say earlier
today on the halftime show. >> let me give you the dates we've come up with the average market participant of the survey october of 2013 the taper begins. july of 2014 qe ends. now, we asked this question how much of what you think is going to happen do you believe is already baked into the market. 68% of the move is baked in for mortgages. less for equities. >> so what can we expect from tomorrow's statement. guy adami, we'll kick it off with you. >> i'm of the belief and we said it for a while the market doesn't give you this long to sell the highs. technically it did what it needed to do today. i thought 1681 was a big level, it held bounced. obviously not a big day in terms of where the market went but important in that the market doesn't want to give up any
ground. now, i could be dead wrong and this could collapse but i'm hard pressed to believe that we've been around this 1685 level for a few weeks and this will prove to be the top. >> to go higher the market must accept the fact that the taper could be coming. >> when it comes to the markets are you telling me mortgage rates are where they're going to be when the fed is pulled out? i don't think so. we have a lot of other data gdp provisions. they're going to try to make this as doveish as possible in terms of the economic weakness. i think they realize they made a mistake the last two times they have spoken to the market and i think it's going to be we have dis inflation or no inflation. i think the market as guy said i think the market wants to go higher but i would be buying the dollar, buying anything that gives you a view that the fed is stepping out, the dollar has
been weak for the last four or five weeks in the dsy. the short end is anchored, the long end is higher. that's a trade you stay with. >> like tim's point it's a five week low. is that the thing to watch? >> absolutely. you do buy the dollar here. i'm short silver which is basically a long dollar type of trade going into this. what's interesting about steve's survey is that that's about consistent with what the euro dollar futures is telling you. second half of 2015 you get your first rate hike but everybody is expecting that the taper is going to take until june of 2014. they talked about ending qe by the end of 2013. if they do that that's a pretty steep taper. i think that's what we need to watch for tomorrow. any type of surprise like that will shock the market. >> karen what do you think we're going to get tomorrow?
>> i sort of agree with beaks but the thing that i'm curious about, since bernanke put out there we will taper, the market is actually higher. that was a little count intuitive because people talk about the fed punch bowl going away. if it's already priced into the market, i'm sort of confused whether the fed tapering is a good thing or a bad thing. >> it depends if it's for the right reason. >> it means the economy is getting better. >> absolutely i think it will be for the right thing. to try to second guess it's too hard for me. i'm not going to really focus on it. it's of interest to me but i'm not going to be able to trade around it. >> volatility, whether you are looking at u.s. or global is way too low going into this number when you consider where we are after the -- >> the amount or the little volatility that we have had and volume heading into the fed meeting. >> it's been fine but it hasn't been oh, my goodness these guys
are telling us the second half of the year. the guidance hasn't been knocking you out of your socks. >> i asked the question whether we were about to see volatility rear its ugly head because we have been complacent. the biggest move in the dow has been 43 points. >> you can buy volatility buy the vix, call options in the vix, those are very cheap. why not do that. at the very least you can be bullish or bearish but you know that volatility seems to be too low and if something comes out that protects your portfolio. >> do you have a better way than options on the vix? >> more often than not i'll buy puts because they're cheap. there are sometimes in the vix and it's a little risky, you buy calls and sell downside puts. you can do it for free and sell your downside calls so your downside is not that much. >> perfect segue way to mike
khouw. what do you make of that? >> that's certainly way way to play it or trade vix futures. i think the simplest way that retailers should look it is is looking at puts. these things are relatively cheap. you can benefit from rising volatility or put insurance on your portfolio that's direct. if the market declines you're buying insurance and i think that's probably the simplest least expensive way to make that way. one other thing i would say is that instruments like hyg which is the high yield atf, it's possible equities could remain strong but it's hard to imagine that credit is with it. >> for more on what to expect on the fed tomorrow let's bring in john hilsenrath good to have you, especially on the eve of a fed decision. what's likely to happen
tomorrow, john? >> i think there are a few things. the action actually starts at 8:30 when the commerce department revises its gdp numbers and comes out with second quarter numbers. that could change the landscape in ways that people aren't expecting. i think the fed has to update how its describing how the economy is doing. we actually had a bad first half. they're expecting it could pick up. the other thing i think we have to look for is cod fewing what bernanke has been saying. he's been saying since the last meeting that they could start pulling back on this bond buying if the economy picks up as they expect. i think there is a chance that they cod few that in the statement. it's going to be important that investors don't go crazy when they see it because it would reflect what bernanke has said which is that this is the road they see themselves going down.
they're having a debate about thresholds, the commitment that they make to keep short term rates low. we'll see if anything comes out of that. >> thresholds versus triggers or what have you. is he going to go out of hi way tomorrow, do you think, to say that the onus is on the economy at this point for the taper to start to take effect in september? >> well, first of all, there is no he tomorrow. there is only an it. so there's no press conference. so bernanke doesn't say a word. it's just a statement that reflects the view of the fomc which is one reason we might not have big fireworks. i think whatever they say about the future of bond buying yes, the onus is on the economy. they've made very clear for a while now. it's conditional on what happens on the economy. again, the economy did not do very well in terms of growth in the first half of the year and if they're going to pull back they got to see signs that we're getting more growth.
i think it's contingent on the economy. >> i'd like to speak to that. something that's backward looking, you're basically saying that you think they're playing minute to minute here with the fed ultimately that i think the sides have been pretty clearly defined within the fed for some time. you think that -- i know it's data dependent but you really think we're shaping this by the next month of data? >> well so let's assume they're not going to do anything on pulling back qe tomorrow. then the next meeting is in september and they get a couple more jobs reports. they get these gdp revisions and another gdp report a lot of other data that shows how consumer spending is consumer confidence. so they'll have more information by then. but i'll tell you right now based on what they see there's no way that is correct pull back. we didn't grow two percent in the first half of the year and they've got a puzzle basically.
the economy is barely growing and job growth is pretty good. when bernanke saw that a year ago, he presented that as a con none drum and he said that the job growth wasn't sustainable unless they saw more economic growth. they've's got to see more evidence before they decide to pull this back. it's also why -- you might have a view that they start pulling this back in september, but, you know, i wouldn't bet my house on that. there's a lot of things that can happen between now and then and in the data and the economy. >> i want to sort of put the exclamation point on this point. the september taper is in question depending on how the economy is doing? >> yes. but just to make it more emphatic, it's not just in taper. the economy has to show signs of getting stronger. we're going to get bad growth numbers tomorrow if wall
street's forecast are right we're going to get bad growth numbers for the second quarter. what people have to be asking for the next couple of months is what is the evidence for the pick-up? the fed is forecasting a pick-up in growth later this year. >> i know you're the economics reporter. you don't trade the stock market. >> i'm not allowed to go near the stock market. >> however do you think that to the beginning of our conversation this evening, do you think that the market is now finally conditioned, is prepared for a taper? >> well you know it's interesting. i was listening to your conversation about the absence of volatility. that actually says something to me because there was a lot of volatility in may and june as far as i can tell. i haven't looked at the vix lately but it seemed like there was a lot of volatility when people were trying to figure out what is the fed up to what are they going to do. now it seems like volatility has
come down. i take that as a signal that people have dye jested the message and we are moving back to an environment where they're watching the data. i think we're more likely to get a market move on friday out of the jobs numbers than tomorrow out of the fed statement. >> that's where we'll leave it. thank you very much. >> getting back to a place where data actually matters. if the job numbers are strong people are going to be encouraged by the fed's move. >> he sounded like the fed is just as confused as anybody else out there. they're confused on whether or not their forecast for gdp growth for the next half is actually going to happen. so i just came out of that conversation even more confused than i started the show ten minutes ago. >> the bottom line is nobody on this desk nobody watching the tv, not the fed chairman or anybody else knows exactly what the economy is going to do in the third quarter. that's going to dictate ultimately what the fed does
end of story. we're going to have to watch as it plays out and watch the market as if it's an open question. >> i agree. but the fed and the chairman puts out the forecast and talks about what the economy is going to do and why it's going to happen. there needs to be continuity between what the fed thinks is going to happen what they're going to do let us know that hey, this is how we're going to do it, the market would calm down completely. >> what's different about this than what the fed is trying to do the whole time. i'm telling you folks this is based on the economy. >> josh lipton is watching buffalo wild wings and it's seen wild action. josh? >> we are watching buffalo wild wings here. let's get to the numbers. reports 88 cents on $305 million. remember the street had been looking for 79 cents on $304 million but same store sales rose 3.8% at co owned restaurants.
missing expectations. that stock down about two percent in the after hours. back to you. >> thanks. jj kinahan on the halftime show today, he said look at the options activity and said this was going to be a negative. >> this comes on the wake of pan era that we discussed a week ago and mcdonald's. there seems to be a theme here. the quarter was fine. revenue was better and operating margins. it comes down to the comps which were disappointing. >> after the break, meryl lynch's head of strategy is here to lay out her top four themes to watch for. later ag stock is getting a bad wrap. stick around. this is the pursuit of perfection.
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of the lexus performance vehicles including the gs and all-new is. ♪ ♪ this is the pursuit of perfection. >> wall street is going to be watching closely the fed tomorrow, but it's not the only thing that will determine the fate of the markets. sa vita subramanian is taking a look at four distinct theme for the bull run.
it's nice to see you. >> great to be here. >> you are bullish. >> we are, yes. >> at a point you were somewhat bearish? >> it's funny. we started out the year very bullish. we were actually on the high end. range when we launched late last year and the market ripped through our target. >> ran away from you? >> yes. >> you had to upgrade it. >> we were wondering if we had to go up or down and the short answer is we think the market is going to go up not in a straight line. >> what's going to drive it? we mentioned four themes that you see. >> four themes. i think what's going to be more interesting over what the impact does is this big change in leadership that we expect to see over the next several months. we're already starting to see a little bit of it. our four themes are pretty simple. we think it's time to move out of the u.s. stocks and go globally diversified.
you can buy multi-nationals. >> if you look at the food space or the mcdonald's or even a starbucks or these names, because they have global exposure and they're a u.s. company and people like the governance of going abroad, the valuation are not attractive. >> it's interesting. in every sector of the market now the stocks that only trade to the u.s. are trading on the higher valuations than stocks outside of the u.s. over the last few years investors have shunned europe and china and moved into the very safe the best house on the bad block. the u.s. has been the beneficiary of a lot of funds fleeing the world. i think it's time to reverse the trade. we're seeing europe bottoming and showing signs of life. >> is it driven by you're actually seeing data in europe that you like or the valuation differential becoming so big it's time to switch?
>> it's both. they're cheap and we're starting to see the catalyst is an improving economic back drop both in the u.s. and overseas. our economics team is expecting a recovery in europe. we're going from negative to positive and normally regions that go from negative gdp to positive have the strongest return. >> you're going cyclical? >> our favorite are tech industrials and energy. energy is probably the sector where we get the most push back because i think everyone hates energy which is one of the reasons i like it. we're now at a point where investors have the biggest underweight in energy that we've seen in at least five years. so if anything even remotely positive happens on the global economic back drop energy is going to move. industrials is going to do well and tech would be a beneficiary. >> if you look at honey well
specifically, names like roper, boeing they have had tremendous moves. are they priced in exactly what you are talking about here? >> the way i see industrials, you want to buy the big globally diversified names that nobody real owns. >> would that be siemens? >> the ges, the three ms. if you buy the conglomerates there's a lot of policy risk coming up everywhere. i don't know what central bankers in japan are going to do or the fed is going to do. it makes sense to diversify the regional exposure. >> what about if we get a stronger dollar, a stronger u.s. economy and have a stronger dollar. we've seen a lot of headwinds. how does that play in? >> i think it's priced in.
if you go back to valuations these stocks are discounting the strong dollar for the foreseeable future. earnings are discounting a fair amount of currency risk at this point. >> dividends, huge talk as interest rates have started to rise they have fallen out of favor. what is the play if there is still a play? >> i think dividends and yield matters but the way to play yield is to shift from high maxed out utilities and telecom companies that have nowhere to go in terms of upping their yield and switch to dividend growth stocks. again this gets you into the industrial conglomerates, big tech, some of the more cyclical companies that can grow and increase dividends. demographics demographics, baby boomers are retiring, yield is going to be important for a very long time.
>> miss. subramanian, great to see you. time to hit today's top trades. fertilizer names taking a pretty big beating today. pot ash mosaic falling as much as 25% after a russian company dismantled a partnership. >> imagine saudi arabia pulling out of oh, peck and pumping as much as oil as possible. they're the largest producer of pot ash. they control 35%. pot ash is one of the great things of the world. if this is broken it means the industry and these guys in particular are saying volume over pricing power. that's huge. it's bad for guys that don't have excess capacity. pot ash in canada can keep up with production but a lot of people say if they go to 300 you have to knock a lot of these guys down in earnings.
the russians are playing around. they're trying to control pot ash. they want to own this company. they want to take it over. in the short run this remains but this is a gamesmanship. why do you give up this cartel? no way. >> any chance they can get the cartel back together? >> yes. >> knee-jerk reaction in the stocks today. >> they did this in bell aruss. it's the most important thing going on in bell aruss and they're going to do it again but not tomorrow. >> this trades 20 times normal volume. same low we basically made this time in 2010. i understand it looks scary here but if there was ever a time to play in the long side i think it's now. >> the stock was up like 15% yesterday. it was only down a couple of percentage points.
>> not everybody is into pot ash. a lot of these guys are in my troe again. >> housing showing u.s. home prices rising 12.2% in may compared to a year earlier. >> this is a may number. so we're going to have a couple months before we see the higher rates filtering through this data. when it comes to home builders they were up one percent today. i thought they were overvalued a couple months ago and still are overvalued. you're better off buying a house. i would use this to sell any home builders you have. >> coach match fourth quarter expectations but weaker north american sales sent it lower. >> there were a lot of things going on that weren't great. same store sales wasn't good a lot of competition from kate spade, tori birch.
they're in a state of flux. >> management shakeup. >> this is the cheapest valuation we've seen for quite some time but actually it should be because there's a lot that is no longer good here. >> shares of j and j hitting another all time high in today's session. could the momentum be running out of steam and what about dollar headwinds. we have a street fight heading your way. facebook closing just shy of the ipo price. what's next after this huge rally the blowout quarter. is there still time to get in. rbc's mark mahaney is going to tell us.
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>> welcome back to "fast money." i'm josh lipton. have a look at semantics enjoying a nice move in the after hours. the company provides it security and storage. revenue of $1.71 billion. analysts thought we would see 36 cents on 1.64. beats on the top and bottom lines. second quarter guidance was light but reconfirmed 2014 guidance the stock up 4 percent in the after hours and up 35% this year. >> next trade right here johnson and johnson hitting an all time high for the third day in a row, shares up 33% year-to-date but for how much longer can the momentum continue. it's time for a street fight.
guy is the bull bk is the bear. 90 seconds on the clock. >> i think it can continue for a while now. clearly the knock on j and j is valuation. it's expensive when you compare it to pfizer merck but they're far more diversified. this last quarter their medical device unit did as much in revenue as form suitpharmaceuticals did. look at their drugs. they have 12 to 15 major drugs that do over where from half a billion to a billion in revenue. rem cade is a huge drug for them. the aragon gets them into the prostate cancer and pushes that out in terms of patents to 2017. you should value them like proctor and gamble. i think they're more consumer
products business and if that's the case in 18.5 19 multiple for them might make sense. >> don't let guy fool you with a sparkle in his eye. when you look at the valuation against itself this is an extreme valuation on price to book, price to cash flow price to earnings anything you want relative to where it's come from. that valuation has really started to accelerate higher and that's because of the acquisitions that guy mentioned. the problem is that you continually have to make acquisitions. they start to hurt margins and stock price. i would be taking my profit at these prices. >> let's get the verdict from tim. >> we were talking about j and j. i think the valuation is very high. they stepped outside of their core business but i do think at
17.7 times even with a three percent dif yield i am a seller at these levels even though this is a fantastic company. i think the valuation is too rich. it will be cyclical into stuff that offers better value. >> tell us who you think won the street fight. tweet us at cnbc "fast money." use either the hashtag bull or bear and will's give you the results at the end of the show. goodyear is up 9 percent after beating earnings estimates and options tratders don't see the tire maker hitting the brakes any time soon. mike khouw what was the action? >> the most active options were the september 19 calls. traders were paying a little over $1 for those. one point i would make volatility is low in a lot of places but not in these options. if i owned the stock i would probably favor selling these to collect some of that premium between now and then. >> rbc's mark mahaney, could
there still be room to run. first, why is madison square garden placing a big bet on the west coast? our own jane wells knows. >> scott, can the house that jack cook built rise again? the men from the east have come with $100 million to re-establish the fabulousness. will it pay off or be their own hotel california. [ indistinct shouting ] ♪ ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ ♪ all on thinkorswim from td ameritrade. ♪ ♪
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>> welcome back to "fast money." live from the nasdaq market site, shares of facebook jumping more than 6% today, just shy of its $38 ipo price back in may of 2012. comes days after facebook reported stronger than expected earnings, top rated internet analyst mark mahaney follows that stock for rbc capital markets. joins us now. good to talk to you. >> good to see you. >> what do you make of this move? >> it's been a stunner. >> that was an inflection point
quarter fundamentally speaking on a stock that was one of the most controversial on the internet space. we think the move is warranted. it's coming faster than i would have thought but we think it could go up to $40. we have a 30% plus earnings grower. you use words like inflection point quarter. you seem to be suggesting that there is a heck of a lot of upside left in this one. >> no. well fundamentally there may be. stock-wise i'm not sure. look you had an acceleration in ad of revenue growth. the big overhang from the ipo day on this stock was mobile. this company was caught flat foot by this massive trend in the internet space towards mobile usage. it took them four or five quarters to catch up but they caught up and extremely well.
they blew past most people's numbers and shown advertisers they can get a decent roy by putting ads into mobile phone news feeds. >> when you look at the facebook story now versus google how do you think about the two? >> the valuation is a lot more attractive on google. with google you have a 15 to 20% earnings grower that you can buy modest premium to the market 18 19 times earnings. that with a two year perspective is probably your safer buy. it's also a company that's got a lot of nice plays out there. proven with search and now with youtube and a great local asset with google maps. facebook is far from proven with advertisers. i want to be clear about that. they're doing a revenue base that's a fifth or sixth that of google. the valuation is a lot higher. i'd probably give the slight edge to google but it's slight.
>> to dovetail all of this i'm reading that facebook is getting $2.5 million a minute for ads. this is what google has done well. is this where it's going and because people are spending a lot more time on facebook than twitter even isn't this a home run for these guys? >> it's clearly upside opportunity. you want to be careful here. they're going to be rolling out tv ads. so far they've rolled out a free service to users and they haven't annoyed people that they haven't left facebook. facebook at the top of the list and google too, there is a lot of potential fundamental upside at facebook. i still like the stock but it's a small buy here. >> that's exactly where i was going to go. why is it even a buy? why not go to neutral? it sounds like that's what you really want to say but you still
have a small buy. you have made more of a neutral case than a buy. >> i'm going to be respectful of the tape. i'm going to keep discipline on our price targets, et cetera. you had me on the show about a month ago and i insisted that yahoo! would get to the microsoft bid price before facebook got to its ipo price and that's not what is happening. but anyway look the fundamentals have turned on facebook. i want to be careful not to overextrapolate from one quarter. this stock max should get to 40 times earnings. at its ipo price back then where the earnings were it doesn't justify a buy. i only upgraded this at $20 when we get that turning point. the stock seems to be getting most of that right. it's still a small buy. i'll stick with it until 40. >> appreciate having you. >> thanks, scott. >> mike khouw? >> it's interesting. this is a stock i didn't think
would be able to get its buzz back. it has proven me wrong. options activity on facebook respected 7.5 of all options and trades today. most active were the weekly 38 calls. so there are people who are really jumping back into this thing. it's getting its buzz back. i don't understand the valuation but sometimes that's not what it takes. >> let's do pops and droppings, the biggest movers of the day. our first pop. sotheby's. >> guy and i followed this for a long time. mirror cad doe filed a 13 d. it wasn't the most aggressive but it was interesting. the whole board is up for election and it is the only pure way to play the art market. i'm intrigued but i don't own it. >> deutsch? >> terrible earnings.
talking about shinking assets. bar clays did a secondary talked about shrinking assets. if you want to see derailing progress this is it. if you shrink those banks you epidemic up with a lost decade. >> mike khouw, community health with a drop. >> they announced a 3.9 acquisition of health management. that suffered even worse as people speculate on that stock that they might catch a bid. they didn't anticipate a take under. both of fully valued. >> coupleummins. >> they'll be flat versus a down. you would think this would be a great move for the stock. in outside reversal on the stock on the day not that great of a turnout. i think the stock has a lot of resistance. i don't think you buy it here. >> guy, hlf.
>> you know this story extraordinarily well. fascinating day. 52 week high today. basically closed around the lows what was five times normal volume. we've seen days like this before in the stock and typically lead to another 8 to 10% lower. i'm not saying that anybody playing the home game should be diving in but it would not shock me by this time next week to see a 54 handle on it. >> tomorrow on the halftime show robert chapman, founder of chapman capital will be on exclusively to talk about herbal life. he's been on the other side of ackman as well on this one. >> he doesn't look happy at all. >> i think he's happy based on the herbal life stock move. we're going to talk about that tomorrow. there he is roblt chapman. still ahead, with the dxj down
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garden is making a big bet on the west coast. jane wells has the details. jane? >> scott, msg shares have been on a tear until new york officials last week put a potential ten year limit on the current location. what do guys back east do when they want to seek fame and fortune? they come to california. >> i spent a couple days in the forum club one night. >> chris and the forum with three concerts in january when it happens. this is a place where every major rock act over three decades performed but the music died, sports teams moved away in 99. now msg fresh off its billion dollar make over has come to l.a. to take over the powerhouse. the ceo thinks there is enough music business for everyone. >> why the forum?
>> why not? what an opportunity. the second biggest market in the world. the biggest entertainment in the world under served with an iconic venue that fell in disrepair. >> this was the holy grail. besides it was a great sounding room, i don't know exactly how to explain it. it just sounds good. it feels good. it's intimate despite its size. >> now, the company says the economic impact of this could be $1.4 billion over 30 years. 18% is coming from the city of engle wood which will be forgiven if they reach certain revenue bench marks. in the place with the first naming rights deal msg has lined up chase unknown, the forum presented by chase. is there enough business for everyone and will people be willing to come back to engle wood. back to you. >> good to have the forum back.
>> i played there -- i'm kidding. the halftime report and "fast money" are going to be out there in a couple months as well. that's going to pack them in. >> forget the eagles right? >> i wouldn't be trading msg. on valuation it got ahead of itself. it's pulled back and it's more coming. >> we'll let bk take a victory lap. stick around. we're back in a couple minutes. if you're serious about taking your trading to a higher level tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#:
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. >> it's time forea trade is for a trade update. bk explained his case and why he needs to be short. >> this would be short dxj. the reason i'm doing that if he does win he's going to push through more abenomics which means possibly a tax increase. the last time japan had a tax increase 1989. that's how you play it on monday. short more dxj. >> josh? >> you're going to get run over on that. let me explain something to you -- >> i'm so glad he explained it
too. >> the dxj has fallen about 9% or so since then. >> it's been a good trade for a week. >> is that done now is this sfl i don't think so. i think there's probably more to go. they're between a rock and a hard place. if they don't pass the tax increases, the bond market could have problems. if they do the economy could have problems. until the market responds positively one way or the other, every time they open their mouths, the stock market goes down. >> guy adami, our traders are quick but not always right. guy made a call on broad com. >> microsoft we thought would trade at 3 1.5. that seems to have bounced. i think broad com could do exactly the same. >> since you made that call the stock is down about 16%.
>> it looked actually good for about 24 hours or so and then the bottom fell out. had a decent day today. to me if you want to get back in it's got to trade above 30. >> let's get to your tweets now. how about pbr? >> this got way oversold. i don't think you do a whole lot with this. brazil has major structural issues. i'd fade this strength. >> macy's? >> i'm a bit less optimistic than i was two or three weeks ago. i would not sell. in fact i would probably be a buyer. we bought some recently. >> guy, some thoughts on u.s. steel, $17.78. our tweeter wants to know if
it's a buy there. >> i think it is. they reported earnings last night which were lousy which were better than expected. the stock spiked up close to 20 bucks came back down today. 17.5 play this from the long side. this was a street fight a few weeks ago. i think the stock might have upside left in it. >> bk give me the trading range in oxy? >> range is right. they have been threatening to break up this company for a couple months now. you probably trade. see if it gets down to 84. that's your 50 day moving average and that's probably where it gets interesting. >> your first move tomorrow when we come back. more fast is up next. [ male announcer ] come to the golden opportunity sales event and experience the connectivity of the available lexus enform,
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[ male announcer ] come to the golden opportunity sales event and experience the connectivity of the available lexus enform, including the es and rx. ♪ ♪ this is the pursuit of perfection. >> the people have spoken. we've counted the results. they said bk won the street fight on johnson and johnson. take a bow. final trade go around the horn. bk, you won. you start. >> a lot of central banks this week. i think the best way to play it is to short the british pound. >> pot ash. >> karen? >> gnc put up very very good numbers but the stock is
actually now getting closer to fairly priced. time to sell. >> guy? >> airlines have been interesting. you know stream rock well my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to cramerica. some people want to make friends, i just want to make you money. proprietary versus commodity! you stay in the stocks of