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tv   Fast Money  CNBC  April 30, 2015 5:00pm-6:01pm EDT

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money, and i can build a house for them and, you know they can live with a house. a lot of people in the philippines don't have a house. that's what i'm doing in the philippines, giving them a free house. >> manny, thank you. thank you so much. >> because they cannot buy it. >> that's manny pacquiao preparing for the fight of the century this weekend. "fast money" begins right now. live from the nasdaq market overlooking new york city at times square, this is "fast money." firstielp, now linked intanking on a huge earnings miss. we will have all of the other big movers also there gilead to visa to fireeye. and tesla selling off in the leadup to tonight's battery charge. will elan musk deliver the charge needed to get the stock back up?
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but we start off with the one-two punch for the nasdaq today, the first biotech which fell 3% on the session is now in official correction territory. and then there was apple, off 6% from its highs. let's get straight to the dprad traders. the russell didn't do well. transforce didn't do well. >> we talk about apple because timmy had nailed this one earlier in the week. but the russell, 121 was the line in the sand. we protected it today, but basically closed right there. the transports have been a problem now since november december. they seem to be breaking down. to me 121 and the russell, huge. you mentioned the i.b.b. it's not about revenue or earnings with these guys. you look at gilead and they crushed. so to me it's the etf taking down the individual stocks but that can last a lot longer that i want it to. >> i agree on the biotech. it really was indiscriminant selling and felt very panicky. if you look at the apple move
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it's a decent size move since the earnings but it did not seem panicky to me at all. maybe there's more downside, maybe there's more to get fleshed out. i don't know if these etf flows -- i don't know if they move differently than the underlying stocks. it sounds like you think that they do. then i think there's probably a little more to go. i'm long. this is clearly a painful couple of days, week. but i'm going to stay long. it's been a multiyear trade. i'm going to stay in it. >> let's follow inup in terms of the etf. there was a lot of generals that got into the space. do you agree with karen in that you think that the selling will continue? >> i do actually. part of the reason is of course that there are just so many shorts in these names, even in this etf, this idb. it's pretty massively short held. and the fact that people are generating -- there will be some squeezes. and when it comes, it will be nasty to the upside.
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however, it could go a lot further still. >> i look at the ibb, and i look at a lot of other extreme moves over the last few days. to me the tension that's in biotechs is all about the macros. look at the move in the dollar in the last few days and in the euro. three weeks ago, a month ago, certainly six weeks ago, everyone was saying, through parity. half of economists on the street were saying not only were they revising the euro for 15 but also for 16. price is not truth. yet what we're seeing is a lot of repositioning, and people have been very wrong. oil is now at 4 1/2 month highs. a lot of people are involved in a very painful trade because as the dollar goes lower, oil goes higher, and that to me has a lot to do with why oil was going lower before. >> but technology as a whole this is all part of a rotation because of repositioning because of the move higher in oil and the dollar? >> and rates. again, it's not so much the u.s.
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rates because the move to 210 introday. we were at 195 last week. the move in europe not an absolute term but the rates were in negative relative terms. the see the credit curve spiking out. spain and italy in the periphery. so i just think there is risk out there that people are taking off the table. look at the volatility out there. that's what's going to play in the biotech. that's exactly what drove biotech. >> and the leverage etfs. we focused on it back in 2008 and so forth. when the market is melting down people are talking about it every day. this has a significant impact on markets because the way they get that is they go to credit swiss or goldman or whoever, and they give them that extra 100% or 200%. you get that going, and that's a straight one-way trade and people pulled back trades. >> apple of course was a driver
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on the downside on the nasdaq and the s&p as far as that faulty engine in the watch as well as the s.e.c. investigation which could lead them to pay up to 10 years in back taxes to ireland. is that a reason to sell the stock? >> it started before those announcements. it started with the release. they asked us last week what do you want to do with apple? and tim said correctly, don't want to be long there. the stock did rally post earnings. made an all-time high. but it also reversed that day at a pretty substantial reversal. and now you're seeing not only outside day on tuesday, but an outside week. it basically means that the action this week sort of encompasses last week's action, and we potentially close lower on the week which technically is not good. 125 has good support. we'll see if that stays. but the stock is not trading technically all that well right now. >> is there anybody buying anything in today's session on the heels of the selloff? >> i did. i bought masko. i bought oc.
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owens corning. i bought those because we saw unusual activity there. i decided i'm willing to buy those two. if i was getting a reading on bio biotech, i probably would have passed on it. >> despite the fact there's a lot of devastation, the miners continue to trade very well. copper up almost 3% today. and this isn't just an inverse dollar trade. places that i'm looking for, i didn't get enough of a pullback integrated miners, freeport. i would stay there. >> selling was fierce today. one technician says now is the time to buy. let's get off the charts and find out where the oppenheimer technical guy has this to say. break it down. what are you looking at? >> tough day for the market. nothing better than a chart to put things into perspective. s&p 500 now down 2% from an all-time high. if you were to update this chart, there has been a bit of technical damage. we have broken this one-month uptrend. so i think that does put the
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index at risk to retest the march low at -- excuse me -- at 2040. the trend is fine as long as that is intact. and we think that holds. along with that rising 200-day moving average, probably the number one reason we're bullish on the market and think this pullback should be bought is because of internal breadth. here is probably your classic barometer, the new york stock exchange advance decline line. it has broken out it a new high confirming the advance. this is not the typical behavior you typically see at a major hop. we think this argues against the bearish case, and we think ultimately the s&p 500 reaches new highs. six year into this some choppy behavior, we're putting the focus on stock selection. but we think the advance is intact. >> we were talking a lot about biotech, and you say one of your top sectors that you see is health care which of course includes biotech. what do you see there? give people out there some hope in the sector. >> sure thing. with health care again, it is
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about stock selection within there. if you look at the etf, ibb, throughout the rally over the last year volume has not been good. it hasn't come back with the biotech etf. if you look at on balance volume. i think you rotate into less extended biotech names. i think those are some of the bigger cap names. amjen we like on this pullback. >> amjen. okay. we'll leave it there. thank you. basically the trend continues higher, but it could be a test to 2040. >> that's probably right in terms of the s&p. if you are bullish and believe the s&p is going to hold then the russell iwm is probably screaming a buy. but amjen, the last quarter they reported was ridiculous. a fantastic quarter. stock made an all-time high. has pulled about $16 or so since. every pullback in amjen in the last two years has been an opportunity. it's probably one now. >> today i think there was real damage done. and guy talked about the russell. you have to ask why the russell
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more than others. people feel if rates are going higher -- and i would make an argument that the jobless claims number puts more pressure on the labor market. but i think the iwm, 118 to 120 is a very important number. but that move the largest we've seen in six months. so keep in mind it's really broken down in a way we have not seen in a while. >> it definitely underperformed for the month. but you wonder if the rest of the world is getting a little bit shaky, as it feels like maybe it is i'd want to be a little more u.s. centric. i would think that the iwm, which is -- >> has the world gotten shakier in the last couple of days? >> the perception is. >> things feel better. look at the euro. is europe a strength? what is the reason for this rally? i would argue nothing has really changed in europe. i know there's repositioning. but i don't think the world has gotten weaker in the last couple of days. i think central banks will be exactly where they were yesterday. coming up next visa and
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gilead and fireeye biggers movers on big tradings. and linkedin getting crushed. and later, the man behind money mayweather the ceo of mayweather promotions joins us live from the heart of the vegas strip to explain how the fight of the century came to be and why saturday's money-making fight could be much bigger than you think. ...and takes the wheel right from your very hands... ...this isn't that car. the first and only car with direct adaptive steering. ♪ the 328 horsepower q50 from infiniti. attention investors! vectorvest mobile is here and it's free! make faster, smarter better trading decisions with vectorvest mobile. the most powerful app or managing your portfolio from the palm of your
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welcome back to "fast money." linkedin shares plummeting more than 25% after hours on weak guidance for q2 and the rest of the year despite the fact that earnings, revenue, and user numbers all came in a hair above estimates. the company warning that second quarter earnings per share will be just 28 cents, less than half of analyst predictions of 73 cents per share. full year forecasts more than 1/3 lower than wall street expected as well. ceo jeff weiner attributing the updated outlook to changes in foreign exchange rates as well as adjustments to its operations with headwinds for traditional display ads and a shift to the company selling a new group of products as well as the impact from its pending
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acquisition, which it projects will add $20 million to $25 million for the full year. i'm listening in on the call and we'll be back with more big headlines. for more on linkedin, let's bring in collin gillis who has a whole grading on linkedin. good to have you. when jeff weiner says that part of the short fall on guidance is fx, that can't be all of it. it's less than half of what the street was expecting on eps. >> you trot out the fx excused. i think the key thing is they're acquiring a company that has a very different margin profile than the core business. so the acquisition, that's a business that runs around 5% to 10% margin compared to the 25% typical ebitda that linkedin does. so there's a lot of cost. it's going to likely be a good long-term acquisition, but there's a near-term impact. it's interesting. you always say, won't the street have figured in that this is going to happen when it hits? and, you know, sometimes it does, and sometimes it doesn't.
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the problem with linkedin is every time it prints a quarter, you get these outsized reactions. out of the last eight quarters we've had moves of over 10% up and down four times. the smallest move is 6%. there's nothing wrong with this business. it tends to be a better stock in the back half of the year. that's why we downgraded it in january, coming into the q1 earnings. >> why is that by the way? why the second half of the year? explain the seasonlity. >> hiring. the advertising business does a little bit better. and also because they have got in this mode where they guide conservatively, and then consensus expectation is above guidance, and then they beat consensus expectation. >> so it seems with this downdraft in the stock right here, is it time for you to re-examine your rating? if it's a back half of the year story -- >> it's a good pullback. but i don't have to be in a rush to do that. let's see how the summer plays
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out. certainly it's a very good company. >> given what you said about their history of trying to be conservative and then hopefully beat that, so this number was sort of off the radar of where anyone was. do you think this is a conservative number? if you're going to miss that badly, you might as well throw out something that you know you can beat right? >> yeah. but you do have to factor in that you do have the acquisition coming in. we'll have to see how that's going to layer in. let's see what happens with the june quarter. when you get into the seasonally stronger september quarter, you know when all the guidance issues have been shaken out, that may be a time to get more positive on it. the other thing we would want to mention is that nothing's broken here. you know, none of the metrics really fell off. but i do think that they both analysts got a little ahead on sales navigator, and china, some of . >> february 5 they reported fourth quarter, and they raised a full year up to 295.
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what changed? it changed significantly. how can you trust management to understand business when they guide higher two months ago, and then they slash it today? >> yeah. you know i thought that the full-year 2015 guidance was a bit aggressive. and i wasn't expecting it to be that aggressive. so then to see them reset, they gave other core business issues in the conference call that they cited, right, display ad sales is down. their big business of recruiting businesses. they have rotated their salespeople around. they had more overturn than expected. and this is a misstep by jeff. but that being said he's still one of the better ceos out there. >> collin thank you. >> thank you. >> collin gillis bgc, a misstep to the tune of $20 billion. >> there were a couple of trades right in the final 20 to final four minutes of trading today on the put side.
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so, for instance, there was this 247, 242 spread as well as another spread that went off just with minutes to trade in the day. so when they are buying that put spread, they are paying pennies for something that goes to big dollars. the fact that they stepped in just minutes before the end of the day, and they bought puts basically all the way down to the 200 strike keeping in mind the stock is trading $251 at the time. so as they do that they just kind of tells you something is looking for something bad to happen. so our scans in those final minutes said we should be in those puts. >> i think the street was expecting muted. cantor's report that's their title in terms of where they expect the second quarter. but to me it's a company that is executing. the problem is, if you look at this company now on the chart, somewhere below 200, this stock is in no man's land. you wanted it to stop at 220. it's after hours. we'll see where it trades tomorrow. that's the level it needs to hold. >> my number is more 205. that's sort of the 50% correction of the low in 2014
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and the recent high that we saw. but the company might be executing, but you have to question that. again, two months ago, they raised guidance for the year and today they slashed it from 305-ish down to 190. it makes it hard. but i think you'll see 205 tomorrow and we'll see where it closes. >> it's rare that a miss of this magnitude is a one-off event. >> well, it's guidance. but to the extent these guys may not have the same kind of look into the next quarter, if it was missing on these numbers on this quarter, that would be more alarming to me. it's not just linkedin grabbing headlines. fireeye and yelp as well. we'll look into that when we come back.
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earnings coming out today after the bell. visa falling. morgan has details. >> so visa shares are down about 1.5% right now after hours, and that's because the dow component reported fiscal q2 earnings 62 cents per share. it was one penny better than expected. but it did say the stronger dollar and reduced gas prices weighed on net income, which fell 3% in the quarter. payments volume growth on a constant dollar basis increased 11%. the company's total quarter earnings is lower than street expectations, and that is weighing on the stock, down 1.5% after hours. >> that brings us to our earnings playbook. karen, it's interesting that lower gas prices is fewer dollars charged on visa for gas.
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>> it allows people to spend somewhere else though. i don't know that i buy that. fx clearly is part of it. i see that as a headwind. this is an extraordinary company, though. and the eps guidance they went from mid teens to low mid teens. so i'm not -- that's really kind of a fine line. i don't know if that's from 15 to 13.5. i don't know what that is. it doesn't seem that big of a deal to me. that eps growth is very very strong. it's not cheap, but it's a great company. i'm long master card. >> would you rather -- you would rather master card? >> are we playing the game? >> she self did it. >> ready to roll. big time. next up. halted after hours, just opening up moments ago, the stock plunging as much as 9% after a loss of 62 cents a share for the quarter compared to estimates of a loss of 29 cents. also sun power dropping on a revenue miss. tim? >> i'm reading the press release that just came out.
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and it's a massive miss. one of the reasons they are claiming is because they are retaining projects that otherwise would have generated revenue in anticipation of a yield co. and a lot of people excited that first solar is moving down the same road in terms of spinning off those assets. it's a great technology company. these guys can compete and are outcompeting their chinese competitors. but if you see this kind of a pullback, we have to wait for the news. i would not be trading this in the afterhours. a lot of the solar names are suffering under the weight of oil. >> they have improved a bit as oil has stabilized. but first solar and sunpower are saying it's because of yield co. would you step in and buy or no? >> the thing that -- the reason i think you could, mel, especially with the sunpower number, is to miss this much on revenue would mean to me because they didn't warn that this must have been them basically having a customer that cancelled at the last minute because otherwise
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why do you come in and miss by $100 million here? >> right. >> the fact that you're going to miss by that much that tells me they were waiting until the last minute. somebody cancelled or some salesman got fired. >> so they're all going to trade down, you know because this is a big name in the space, obviously. but i believe in the space long-term. i'm long solar edge, which we had here and sun edison. it's going to be a little lumpy, but i really believe the growth is there. and they have decoupled from oil a little bit. i think if oil goes higher they will go higher. >> a huge move obviously. if you look at it $55 is sort of the level that we had resistance at before. it should find support now. i'm with tim. if you're looking to trade around $55 is the line in the sand for solar. next the franchise beat expectations by a wide margin gilead. >> came up almost $3 a share. huge revenue beat as well. and their two major drugs crushed. nine times forward earnings.
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$15 billion stock repurchase last quarter. about 10% of their market cap. everything works for these guys. the knee jerk in the stock, by the way, was to take it lower. it's higher now and should be higher still. >> is this the one that you step in and buy amidst this ibb crush? >> yes. quite frankly, i met a woman here in new york just a week ago that turned out she got this drug. >> i didn't know where that story was going. >> it could have gone all sorts of ways. >> she had hep c. she went and she paid up out-of-pocket more because it wasn't covered. she paid up and basically said this cured her. so the fact that gilead has a product like that, even though it's $90,000 a dose is something that since it's a cure rather than a perpetual medicine that you have to take, that's very strong. >> cyber security fireeye posting lower than expected stock is popping after hours. >> they recently partnered up with checkpoint. the loss was less than expected because nonetheless it's still a
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loss, right? 48 cents versus 51. and revenue numbers looked really good mel. as far as fireeye, i think fireeye and skyworks swks are two to keep your eye on. skywork because of the 61 million whatever that apple sold and fireeye on the security year. >> is this fireeye's year? it's outperforming palo alto. >> in terms of beta it probably is the year. you get more bang for your buck in fireeye. but palo alto networks has pulled back from 158 or so down to about 148.5. i don't see anything wrong. but they are the best company in probably the hottest space out there. a huge announcement from tesla tonight that could determine the next move in the stock. the top-ranked analyst on the street is here. he'll tell us what elan musk could have up his sleeve. next. and later, live to the las vegas strip ahead of the biggest fight this century. mayweather versus pacquiao. what it means for the video on
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coming up in the second half of "fast money," the biggest fight this century in just two days. we are talking to one of the men who helped make it happen.
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we head to las vegas to hear how the fight came together. plus, home improvement stocks have been on a tear, but some traders are bidding against them. we'll tell you why. and we'll continue to bring you all of the big after-hours big movers. but first, tesla falling ahead of a big battery announcement expected tonight. phil has more. >> that announcement will be happening about 11:00 eastern time tonight, 8:00 pacific in southern california. that's when elan musk is expected to unveil what they are calling a stationary storage unit. we don't have a lot of details but this is what we have discerned. these stationary storage units, we are expecting two models to be unveiled. a home model you could lease or buy for your home and also a small business unit. these units will be able to store power as well as return electricity to the grid. but a number of any questions
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will need to come out tonight. first of all, what's the price? the price for being sold and also the price if you were to lease one of these units. is it $3,000 for over 10 years? or are we talking about $13,000 if you want to buy one outright? will they be sold through solar city of which elan musk is the chairman of? and we know there are some prototypes that tesla has already worked with solar city customers in terms of testing out the product. what's the initial and long-term demand for these stationary storage units? the giga factor factors into this in a large because when it opens in 2017 it will have the capacity eventually to crank out about half a million lithium ion battery packs annually. most of those will be going towards electric vehicles. elan musk is hoping most of those will be tesla models. but also for these storage units. as you look at shares of tesla, this is almost always a case where there is news hinted at or
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eventually going to come out. you see the stock run up. and then once the announcement comes out of a new prosecutor a new development from tesla, then it trades back lower. i think we might already be seeing some of that with the way the stock traded today. announcement again tonight at 11:00 eastern, 8:00 pacific. back to you. >> phil, thank you. now let's bring in dan, who just this week got even more positive on the stock. he has an outperform and a $290 price target on it. dan, great to have you with us. specifically on storage, you wrote that it provides additional valuation support and rough estimate it adds $35 to $40 a share today. in terms of the key questions tonight, what do you need to hear answered in order to say, you know it is $35 to $40 a share? >> well i think, you know what we found out so far is this is a little bit more real and probably a little bit more near term than we thought originally. walmart is already buying the battles. solarcity is buying the batteries. there are utility partners that tesla is working with.
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so i think that's part of the reason why the stock has kind of gotten a boost from this. i don't think it's really the forum where you're going to get a lot of financial targets or financial projections that analysts can plug into the model. so i think from that perspective, it could be a little disappointing. but i think finding out, you know, kind of the cost benefit of some of the different storage units they are talking about is going to be helpful and maybe we'll get some information about the addressable market that tesla is looking at. >> when you're sayingare is what the storage could be that could be on top of where the shares are traded today. help us understand how you got to that number. >> about 30% of the giga factory output is targeted to this market. you know so just using that output of batteries and assuming a $350 per kilowatt hour price, which is basically like there was a report that came out recently out of a big texas utility that said that this stuff becomes very economic at
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350 per kilowatt hour, and we think tesla can support that. so just simple math would get you to about $3 per share, 20 times in 2020 is $60. and then if you discount it back a couple of years, you're talking, you know, $35, $40 per share within the valuation. so i think people can think about it. a lot of people are talking about the valuation is too high for tesla. i think that this is a secondary revenue stream that you know we may find that you know is quite a bit of value within where tesla is trading today. >> and let's talk about the core car business. that's what it mainly does at this point. you had written also that the recent improvements that tesla introduced has increased the total addressable market by about 75%. walk us through it. is there any fewer models down the road or releasing of prior models?
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>> i think it's real important what's happened over the last six months. everybody knows that the model s got really great reviews when it first came out, but i think that was mostly just because, you know, it's done well. it really blows you away how different it is than normal cars. but frankly, there was a lot of deficiency with the car. their segment, luxury sedans are sold with all-wheel drive. they all have really good safety technology and really good seats. tesla didn't have any of that. over the last six months, they have introduced that type of technology across their entire product lineup. and i think even more importantly, now they have a really compelling vehicle at the low end. you know the old 60 kilowatt hour vehicle that didn't have a lot of range, it wasn't that fast. so if you were buying that you were buying the junior tesla. now the 70 d has great range, great acceleration. you know, people are going to buy that car. and i think the most important point is that this is selling for $75,000.
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that's right in the teeth of kind of the bmw 5 series mercedes e class. it's the first time that tesla has a real compelling vehicle that competes directly on price. and we think that that increases the addressable market. >> last question, dan. it will be a quick one unfortunately. but phil was talking about the tesla trading pattern into news. i know you looked at this long-term. but we set up in an interesting way because it had been trading well, sold off ahead of announcement but then earnings next week. what can investors expect? >> i think news flow is turning positive. people are getting more confident about the volumes they can do in the car business this year and what that could mean to improvements in earnings and cash flow. i think the stock will do -- you could see a pullback after today. but i think it will do well over the course of this year. >> dan, thank you for stopping by. >> thank you. >> 290 price target on this. >> 225 has been the pivot point.
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we're obviously there right now. i'm a little concerned they can't meet expectations. whatever the expectations are tonight, they won't meet them. that said i think if anything positive comes out, i do think the stock goes higher. plus you have earnings next week. so against 225, understanding that will be a tough target because we're right there, but i still say stay long. >> are you in tesla? >> i'm not. i liked everything dan had to say about it here and i would point out, of course that on october -- on april 2, rather, when they announced tonight's announcement that was going to be this big show, that stock was 191. it's put on $41 during that time. that's $5 billion in market cap. so dan's probably right. i think you buy this one on pullbacks. i don't think you chase. >> this announcement tonight is exactly why people should be excited about tesla. stationary stores claim at some point -- the company has been bullish on this and analysts don't know that to do with it because they don't have any data. what do you do with it now?
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what do you do with the numbers of the car that keeps going further out in the future? i'm neutral on the stock. >> are you watching this in relationship to your solar holdings? if they are going to sell through solarcity, it might give them an edge. >> it could give them an edge, yeah. i suppose. but i actually want to buy a tesla, but i don't want to be the stock. >> the car. >> the car. yeah. >> but not the stock. fight of the century. floyd mayweather and manny pacquiao get ready to face off this saturday. after the break, we go behind the ring -- behind the ring? with floyd mayweather's's manager. plus which fighter do the people in times square think will come out on top? here's a sneak peek as we head to break. >> so who do we want to? on the count of three. >> mayweather. >> pacquiao. >> pacquiao. >> pacquiao.
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why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to this is going to be the disaster of the after-hour session. linkedin is a big miss. that's down now, actually stabilized, down about 19%. firstsolar and sun power also misses primarily because of
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costs related to that yield co coming down the pike. shares of home improvement giant lowes down more than 2% today. traders are betting there's more downside ahead. >> today about midway through the day we had already seen about 10 times the average daily put volume and the most active strike at that point was the may 70 strike puts. but those expire on may 15, which is prior to the week when lowe's and home depot announce earnings. but the stock had declined already by the end of the day. it traded 20 times the average daily volume. and the most active ended up being the 65 1/2 puts. they are actually looking at more downside to come even before earnings. >> our friend salty dan nathan was here yesterday saying that for all of you home depot lovers, he sees trouble ahead.
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i think he was specifically referring to you who was not on the desk yesterday. >> he could be right. they have been teflon for the last little bit. but since mid april, march, that stock has had a lot of trouble, sort of rounded off the top at 75. he might be spot on on this one. >> if you look at the homebuilders, they have also been a proxy for the broader market sentiment. every time they have broken down you've seen a momentum. this is a stock you don't want to touch probably until $62. that's what this chart tells you. you can then pull back on a multiple at 26 times current. not terribly cheap. >> you bought further into the supply chain. >> i did. >> owens corning. why that as opposed to a retailer or a home builder? >> i didn't see the paper that mike saw, so i would have been happy to trade a put today, mike. but instead, i saw upside call
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buying in owens corning. of course, the insulation company. that's the one i really loaded up on. >> thanks for the action mike. check out our live show at 5:30 p.m. eastern time tomorrow. we have the man behind floyd mayweather and this weekend's big fight. he's coming up after this break.
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there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too.
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♪ [ theme song from "rocky" ] in just two days the bell will ring. undefeated 11-time world champion floyd mayweather set to square off against manny pacquiao in saturday's match, which is expected to generate more than $300 million in revenue. joining us now is one of the men who made that fight happen mayweather promotions ceo leonard ellerbee. also joining us cnbc's own jane wells from las vegas. take it away, jane. >> hi, melissa. thank you for joining us. there have been such different approaches. manny pacquiao has come in with
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so many sponsors. floyd mayweather not so much. is that intentional or is that because sponsors don't want to be associated with him? >> that's not a true statement. i received a number of offers from a variety of different sponsors. we just decided that that didn't meet floyd's needs. and, you know floyd is a very astute businessman. and he's made some very very good financial decisions as it relates to his career. >> he says he's going to make $200 million, which is just astounding. and who needs a sponsor when you're going to do that? but things happen after fights in las vegas. and given how the country may be a little on edge right now, i'm hearing a lot of people talk about concerns about security after. how secure are you about your team security? >> we're very comfortable. the amount of effort that has been put into the preparation has just been phenomenal. we have had a number of meetings
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with law enforcement officials from the fbi, homeland security to a number of different local officials, to make sure that all of the fans will be safe. and we have a great event come saturday night. >> the weird thing that happened today, at least in my experience, was asking that manny pacquiao have his cup checked. why did the mayweather camp want that? i don't understand that. >> well because his trainer -- he used his kind of different kind of tactics. in the last fight that we fought against a fighter of his was oscar de la hoya in 2007. and to the best of my knowledge, he instructed oscar to wear a higher cup so when floyd would hit him with body punches, he would absorb some of the punishment. so if you go back and look at pictures, which there are out there on the internet look at
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how high oscar de la hoya's cup was. so i made it a point to go to the commission and we requested that both fighters' cups be checked because we just want a level playing field to be able to give the fans a great fight. >> leonard, tim sea mor here at "fast money." a question about boxing and the business of boxes. money mayweather against the pacman. and a lot of people are saying this is almost a last chance for boxing. there's a lot of competition. obviously, very big dollars out of the pay-per-view segment. what's your call on this fight being the next wave for boxing? >> well i think boxing is here to stay. there's been a recent edition of what al hayman has recently brought to the table with the premiere network of champions. and where he's brought back boxing to television. and it's -- boxing is here to stay. this is a great event saturday night.
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and it's a global worldwide event. and for those 36 minutes, the whole world will stop and tune in for mayweather versus pacquiao. but boxing is going to be here for a long long -- many, many years to come. >> we'll leave it there. thank you for joining us. and of course our thanks to jane wells, who is out on the strip. all right. the real winners of saturday's -- >> thank you for having me on. >> will likely be the pay-per-view companies, hbo and showtime both broadcasting the match live. and they are expected to generate $300 million in combined revenue from the event. we wanted to get a sense of where people would be watching the fight and who they think will win. we sent guy outside the nasdaq to hear from the people of times square. >> it's guy. i'm out here in times square. we have a big fight this weekend. pacquiao-mayweather. let's ask the folks if they're watching and who they want to win. are you watching the fight this weekend? >> yes, sir. i'm going for mayweather. >> i have my money on manny.
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>> i think mayweather has got it. >> the pom rain i don't know likes pacquiao. makes perfect sense. >> mayweather, and he'll do it in the fifth. >> hbo or showtime? >> hbo. >> hbo. >> hbo. >> because? >> i've already got hooked up with hbo. >> good answer. >> so that's what the public will be watching. and it brings up a larger question, what is the best way to trade video on demand? we mentioned a couple of options. where did you get those gloves? >> nasty, right? i'm in the undercard. >> what? >> rope a dope, baby. >> i bet you are. you are clearly the under. >> the undercard is the warm-up act. >> oh, okay. >> i know you're going to be tuning in on saturday. >> yeah, sure. >> clowns. kind of a similar concept. >> video on demand. where would you -- >> video on demand. >> streaming video. >> time warner. if you think about the components of this company, you've got hbo. you've got turner. turner sports is probably the
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most valuable -- >> time warner cable. >> yes. >> this is clearly where you want to be adding some of the parts. and hbo has proven that they are -- they set up these kind of productions. this is another one that i think is a very big deal for them. >> it will be a bummer if the fight lasted just like five minutes, wouldn't it? >> yes. >> i'm serious. >> it's not going to last just -- this thing goes the distance. it's decision. mayweather wins on decision. >> really? >> yes. >> that is a bold call. >> write it down. >> written. >> trade. >> it just shows how valuable a property like netflix is. and it also shows you how dominant a company like disney is. look at what they've done look what they continue to do. own it until the head steps away. >> time warner x, i like it. coming up on "mad money" tonight, kramer is back east.
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he has the first response to harm an's drop. and the king of convenient travel, hotel tonight. all that and much more on "mad money." we'll be right back. stay tuned. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.
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this is going to be big. monday, "fast money" is going to miami. we'll be live at the emerge america conference covering breakthrough technologies opportunities in emerging markets, and of course how you can make money on all of that. that's monday, 5:00 p.m. eastern time, in miami. time near the final trades. >> i wasn't a buyer of apple end earnings, but i like apple between 118 and 122. i think the stock is very safe fundamentally. technically, a broader market proxy. nothing you can do about that. >> dr. j? >> i like skyworks mel. i think it trades north of 95. could even be drawn up to 100. >> i like go large with the move back up in oil, i think we'll see the stock move. but the underlying business is lng. i think we'll see good growth in
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the space. a nice run to the upside and i think it continues to move higher, fcx. don't go anywhere. 5:00. meantime, don't go anywhere. "mad money" with jim cramer starts right now. 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. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or tweet me nicely please, @jimcramer. all right. we can talk about the feds role in this quick sand we're swimming in.
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