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tv   Fast Money  CNBC  May 11, 2016 5:00pm-6:01pm EDT

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story. >> i felt better as soon as you said jobless claims. things are calm. we can do this. no rat dna in burgers. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square. tim, karen, guy. widely followed tech investor says now could be the time to short apple. he'll be here to tell us what he's waiting for to pull the trigger. oil nearing year-to-date highs. wreaking havoc on a group of stocks that are near and dear to your heart. and later, another successful test for potential new empire for elon musk. is the man stretched too thing? the former ceo of apple will weigh in on that. first, the dow falling 200
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points. it started with macy's, and spread to the mall reits, and starbucks and nike. anything that touched the consumer and your money was sold, and sold hard today. are these jitters about retail, about retail, or fears about the broader economy? karen, i'll start off with you. >> yes, god, the worst we've had in a long time. i think that some of what was going on is specific to macy's. some not specific to macy's, very general. specific to macy's, they talk about the issue of the sort of tourist that are big generators for them. not doing well. but now this is a little different. they don't see that coming back. they used to think that that would be a somewhat, you know, temporary phenomenon. now they're sort of backing off that. the call from macy's was rather downbeat, i thought. and they -- it's ten times their lowered guidance. which is certainly low for macy's. but they've missed a couple of times now.
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i'm long macy's. i found this very disappointing, as many people did. the wider implications are, i think the consumer's healthy. so where is the consumer? it makes me wonder, home depot was down today. but maybe that consumer is at home depot spending on different things. and maybe they're at amazon. >> you like home depot. all-time high yesterday. >> i still do. i think karen makes a good point. home depot got caught up in the entirety of the retail sell-off. i can't speak to the etf, but a lot of times, individual stocks go down as the etf goes down. one leads the other. with that said, i think home depot is fine. my thing about the consumer is this. don't confuse the u.s. consumers, they want to spend with their ability to spend. we know the u.s. consumer will spend come hell or high water. just find yourself in different cycles. >> it was six, eight months ago,
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everybody was telling b.k. oil was falling and would be fantastic for the consumer. just wait a little bit, b.k., everything's going to be fine. here we are, six, eight months, a year since the oil got cut in half, and the consumer isn't coming back. pre-recession highs, nothing's changed since they're getting weaker. >> this is a totally different thing. >> they're spending on something else. not necessarily retail. >> hang on a second. autos, home improvement, and ecommerce. >> you've got record auto sales. >> used auto sales numbers, they're down. >> no disputing this has been a zombie economy recovery, between low inflation, wages haven't really taken off, even though the job market is strong. the reality is, you strip out auto and ecommerce, it's growing
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1.5%. get back to a place where the stocks were destroyed. especially today. macy's is -- think about this. march 21st, you were up about 29, 30% on macy's year-to-date, now you're down 10%. the reality is, they're not going to make 14% in the margin. a lot of the things they promised, a great balance sheet, it doesn't really matter. it's the entire demographic story. millennial moms not shopping in department stores. there's a demographic thing going on. less babies. there's a lot of things that are multi-year trends that are not going to change overnight. i don't agree with brian that the world's devastated and this tells you we're about to go straight downhill. there are real changes in technology and demographics and how people are shopping. >> i think the world -- i think things are slowing. do we go down further? that's something we'll see six, eight months down the road. but for right now the one thing i do know is the global economy is slowing, the u.s. economy is slowing, and it doesn't matter, the dollar's been lower, oil's
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been lower. of course, it rallied a little bit recently. but everything -- >> by a lot. >> yeah, but in a month and a half. >> i disagree. i think the u.s. consumer doesn't care about china numbers, they don't care about the -- >> why are they buying? >> they care about having a job. i think the question is, are they saving more? >> and the answer is yes. >> maybe a little bit. i also think it's shifting. if we look at amazon sales, it's shifting to amazon. some of the things that macy's used to be the go-to place for, that's -- it's a shift. i don't think the consumer is not spending. >> i think the shift may be away from certain types of merchandise. look at the things that macy's sells. they also offer -- >> parallel. >> -- these things online. >> this is particularly painful, you had fossil, you had macy's. >> right. >> but michael coors i think is cheaper han the rest.
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what do you need a department store when you can go to coors or coors online. >> or nike. there's been a lot of pain in the whole sector. i think it's demographic. i do think it's reprioritization of where you spend your money. the thing that people can spend money on easily, these things have gotten very cheap. apparel is ridiculously cheap. look at this. this pen that used to cost 3 bucks is now 3 cents. when the sports authority filed for liquidation, dick's rallied 4%, 5%. are you supposed to cheer for this? the reason the sports authority went out of business is they cannot compete in a ecommerce world. i think especially retailers that have built the business are very good buys at these levels. >> we're seeing on the high end, tiffany's saw the pain.
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sothe sotheby's has seen the pain. a lot of that energy money is not around now to come back to the united states and buy the things maybe they were a few years ago. >> the retailers and suppliers to the retailers, in terms of the malls, we saw those get hit as well today. >> you know what, it ended up being that for the good ones, they could always find tenants. it really was just a rate play. i think it's still kind of a rate play that got a lot ahead of itself. everyone wants to shrink their footprint now of stores. so certainly that should be -- i have to think, also, a tanger, which is an outlet mall reit, that that would be under pressure as well. that you don't have people -- people online can get outlet goods as well. >> merchandise. >> merchandise as well. >> is there a play here? >> i think you short the reit and etf. just in gem.
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look how it got crushed today. a great risk/reward. i think it's a great place to at least give this a shot. >> look at simon properties. karen knows this a lot better than me. i think it was april 26th, better than expected eps, better than expected revenue. occupancy is close to 96%, because that's really what the number is. karen just said, you go to the mall, if somebody's closing up, within a day or two there's a sign up, coming this fall. there's a merchandiser who always thinks they can do it better than the next guy. i think the stocks go higher. >> amazon hitting a fresh high today. let's go off the charts with rich ross. rich, what are you looking at? >> look, if you look for someone to tell you to sell the stock based on the technicals, you found the wrong person. it's likely to get you in more trouble than anything else. when you look at the short-term
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chart, look, very bullish breakout from really a six-month base of support. we're up, you can see this breakout, up year-to-date, but 50% off the oil also. it's like a crude oil off the lows. this stock goes higher. how high? let's look at the weekly. look at this well-defined multi-year trend channel. obviously given the magnitude of the move in the stock, you're smoothing out a lot of volatility in terms of the percentage move here. you could see some consolidation in this range. ultimately this is a very strong chart. i think you're looking at accelerate into the high end. maybe 800. the height of this pattern is 400 points. if you project that out on a breakout, best case scenario, i'm not talking about tomorrow, you get to $1,200 on this stock. i think $900 is a realistic upside target. this is really the heart of the matter here, this is the retail etf. this is the xrt. equally weighted etf which tells you that amazon has the same
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weighting as pep boys or office depot. down 4%, 5% year-to-date basis. when we talk about amazon's gain, retail's pain, this is a zero sum game right now. what's coming out of this is going into amazon, going into crude, energy, industrials, materials, all of the things that worked in the first half of 2015, that are not working today, ala health care, ala technology and discretionary. >> rich, i'm curious, when you take a look at amazon and other retailers, we always make the argument amazon is taking away from the other retailers. are there charts that you look at when amazon gains, a certain group of retailers do most poorly? >> i think to the earlier points made here, retail is getting painted with a broad brush here. you're seeing weakness across the board. how many of us have walked into a department store, bought a watch, gap stores, these are bad
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charts. not leaving anyone behind in terms of the weakness. i don't want to say that every other retail stock other than amazon should be sold, but right now, investors, let me put it this way, they're not being particularly discretionary in what they're selling in discretionary stocks. >> rich, thank you. as you all remember, i know you were watching yesterday's show, we had a heated discussion right here on this desk about amazon and how you value this stock, whether you just go by valuation, which would put you in the wrong side of the trade for hundreds of points at this point, or you look at the charts. guy? >> to me, you've got to fall on the charts. it's been the charts that got you in and out at the right price. remember at the end of 2015, they reported a stellar quarter. in the after-market, stock was trading 719. i remember talking with dan nathan, he said get out of it, i said, no, you stay with it. dan was right. we revis ted the post-market
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levels. to be honest with you, you've got to be taking some profits in the names right here. >> tim? >> the positioning on the name is what worries me. today felt like a reallocation day out of retail. amazon is an extreme position name. rich is right. the momentum on the name is very important to follow. and this has been kind of the core. i guess the question i have for a market that really didn't like to rally behind growth names much past the point in which they rallied through earnings, is this lambs to slaughter. it's really a case of what exactly amazon gave for you last time. if steve was on the desk tonight, i would probably be saying something to the effect of, it's in the price. steve would say, i'm not sure what that means. and we would go back and forth a little bit. my point is, i've been wrong on amazon for the last $150. but it's very difficult for me to buy at 300 times earnings stocks that's in the price. >> could amazon for you be a hedge to your retail positions? >> no. because i think that you might be not hedging, you may be
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taking two unique bets that i don't -- i wouldn't short amazon. i wouldn't be long, though. >> up next, oil nearing a year-to-date high. it's causing indigestion for a number of stocks. we'll tell you the group feeling the pain. jpmorgan's jamie dimon banged the table and said banks are cheap. is he correct? we've got a deeper dive. where is dan nile putting his money to work right now? his one must-own tech stock, and if he's looking to short. & in a world held back by compromise, businesses need the agility to do one thing & another. only at&t has the network, people, and partners to help companies be... local & global. open & secure. because no one knows & like at&t.
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welcome back to "fast money." jack in the box shares gaining almost 10% in the after-hours. the second quarter results topped analysts' expectations. in the company's release, the ceo, lenny comeo, points to healthy margins, cost controls for the quarterly beat here, 3% same-store sales growth at the mexican chain, also helped, thanks to more traffic, fewer labor costs and better margins as compared to the first quarter. the stock down about 7% year-to-date and lost more over the past year, but the shares perhaps setup, if you will, for the bounce. melissa, guys, i don't know if
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you know this, but jane wells and i were tweeting about this, jack in the box was originally founded back in the 1950s from san diego, california, but expansion into the houston and dallas-ft. worth areas a big part of their history. 17% of their company-owned stores are in the houston area. it could be a sticking point on this quarter's earnings. >> wow. dom, thank you very much. obviously the connection being -- >> but this is -- listen. there are floods there, which are obviously hurting business a great deal. the comps were good. the stock has sold off 16 1/2 times forward earnings. i don't think it's expensive. i think people are moving away from chipotle. despite the fact that the stock is up big in the aftermarket, i think it bounces from here as well. >> crude oil hovering near year-to-date highs. that is causing wendy's, shake shack, yum brands, across the
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board, crude continuing to rally. are these stocks a no-touch? >> crude's going to continue to rally. the dollar is going to continue to be weak. the commodity breakout for the 200 day for the first time in a year and a half. shake shack is selling off because they cannot sustain the growth or multiple. in new york people are standing in line for these things. it gets back to the things we talked about the last block with the consumer. no, it's stock specific. look at mcdonald's. continues to trade well. where there's actually a reasonable dividend, i think sales that are actually on a trend, it actually shows growth, that's a stock i want to be in. >> i wonder, this wage pressure to the upside is, to me, that's kind of a big deal here. because this is the sweet spot of those employees. i think oil going up, if it's because the economy is heating up, that's an okay thing. this wage pressure i think is real. >> and that will remain. what's your take?
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>> i would be out of all of them. we know from the bigger picture that the consumer is not spending. oil has been cut in half. but that doesn't really seem to bother anybody. now that oil has doubled in the last month, people seem to be worried about that. i would be selling them off. even mcdonald's. but there's one up there, chipotle, that would be the one i would buy -- >> oh, really? >> oh. >> on the idea that people would come back to chipotle. >> they hired a former fda person and former jack in the box person who oversaw the recovery from the e. coli from the '90s -- >> it's warm up here today. maybe i'm deaf, overheated. tim's been spot-on. crude and the dollar. a lot of these beneficials saying, two more rate hikes this year. which i don't think will happen. however, if you do see a rate hike in june, what does that do to the dollar?
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to me the dollar is coiled to go higher. i think a rate hike might get that move to the upside. >> are you backing into the whole thing with the notion and the strong thesis that crude oil and raising gas prices, that does affect consumer spending on burgers and fries? >> let's face it, there was one sector that got a benefit, i think it was fast food. some of these guys also, whether it's a buffalo wild wings or some of the high flyers, at least the high multiple in the growth names, it's an argument. but we can't have it both ways. there's no way it's going to hurt on the way up. the reality is that i think if you see a rise in commodity prices, it will have some pricing power. for a lot of these industries it will trickle into top lines. retail will actually be good. the turmoil in china may be far from over. we'll take you behind the $2 million bet against the chinese stock market. i'm melissa lee, and you're watching "fast money." in the meantime, here's what else is coming up on fast.
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>> that's exactly what wall street is saying about elon musk. are investors growing weary of the musk empire as well? john skulley weighs in. one of the most widely followed tech investors said there is a new must-own tech stock, and it's not amazon. dan niles. [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses.
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i thought my stock was very cheap. i thought people were overly reacting to the move. >> that was jamie dimon on
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"squawk box" this morning. wall street refers to it as the dimon bottom. if he thinks jpmorgan is cheap, are the other financials also undervalued? brian kelly, what do you think? >> no, i don't. if i look at the environment, i've gone over this before, you have low -- terrible operating environment. look at how many m & a deals have gotten crushed in the last several weeks. you don't have much of a spread when it comes to net interest margins. for me, and then you have the outside risk of what could happen to the european banks, what could happen to japanese banks. it's just not a place i want to be in. i don't think they're cheap at all. >> i think you're talking about the first quarter, an environment that was extreme. and i would argue it's already -- you've already seen a real return in investment banking. are we going to be back in a place of easy money? i can't argue liquidity is getting better out there. to say the banks are totally tethered to a first quarter is brutal. i think it's in the price. with any little bit of glimmer,
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they're still underinvested. i think you own cheap banks. >> i'm right there with tim. i look at bank of america, which is a u.s. centric bank. i look at the lumpiness of the parts of their business, but i think when you look at it together, as a pe, and price-to-book, ridiculously cheap. >> how can we say nothing's changed? >> prices are up 50% -- or actually 100% from the lows. doesn't that make a difference? because the bear thesis on the european banks is oil was going to be an issue. a lot of the banks as well. >> look at what's going on with glen corp. copper breaks to $2 -- >> 140%. >> the last couple of days it's been down. >> so look at deutsche bank. you just mentioned crude is up 100%, wherever we are now. 100%. but deutsche bank, european bank, sizeable bank, has traded right back down. it's 16 1/2 handle right now. it clearly wasn't crude oil that was bothering deutsche bank,
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like i thought it was. there's something else going on. is it glen corp? i have no idea. deutsche bank trades like there's something going wrong. >> no argument with that. to indict the entire banking sector, deutsche bank has issues related to greece, to the ecb, loans and collateral that nobody knows, regulations that they haven't even stepped up to the plate for, and probably china. to say the rest of the banking sector is like that. jpmorgan announced they're 6.3% of energy loans, they raised $700 million against reserves for them. and if anything, we're taking a lot of pressure off the commodity sector, which, again, rallied today where it hasn't rallied since 2014. it's bottoming. >> i would agree with everybody where the u.s. banks really aren't that big of a problem, right? better capitalized than they've ever been. they'll get hit by things like deutsche bank.
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the real risk in the financial business right now is the asset managers. the asset managers are where the risk is. black rock, companies like that, to me, look like trouble. one widely followed tech investor says he's thinking of getting short, get this, short apple. dan will be here to explain why, and where he sees value in tech right now. later, tesla, sol ar city, is elon musk biting off more than he can chew. former apple ceo weighs in with a very interesting take. much more "fast money" right after this. ♪ you're not gonna watch it! ♪
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xfinity lets you download your shows from anywhere. i used to like that song. welcome back to "fast money." the dow ending the day down more than 200 points, having its worst day in three months. the s&p is, well, in the gutter. having its worst day in a month. stocks in health care were the biggest drags on the market. here's what's coming up in the second half of "fast money."
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surprising take from the former ceo of apple, john sculley. and two important emerging markets, china and brazil, could be in for major turmoil. we'll explain why later this hour. but first, we started off with technology, the best performing sector in the last week. with the tech earnings behind us, how has it fared? breaking down the scorecard is a man we like to call our own mvp, dominic chu. hey, dom. >> hey, melissa. all i can say is, awe shucks. you're going to make me blush here. when it comes to market mvps, got to be the tech sector stocks. the most influenced on the markets, and so far this earnings season, things have been better than expected for s&p 500 tech companies. but still, they're not all that great. according to thompson reuters, close to 80% of the members have reported their numbers. and if all remaining companies report earnings and sales as expected, earnings growth will be negative. just not as negative as
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previously thought as you can see there. top line revenues, though, setting up to be slightly more negative than expected. so that's something to watch out for as well. and when it comes to among the most impactful tech earnings of the season so far, on the down side, you can't really overlook what's happening with the most impactful and most valuable stock of them all, apple down big. you remember that day. as far as the more positive surprises here, another mega cap called facebook, which remember soared after its earnings report. so it's fair to say, melissa, that tech will just about always be a key part of that market watch and conversation. back over to you guys. >> okay. thanks so much, dom chu. we know where we stand now. where can you still find value in tech and in the market? let's bring in today's -- today's -- fast master. dan niles, founding partner joins us on the fast line. hope you're chuckling, dan.
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dom talked about the two most impactful stocks. those are the two stocks you want to talk to us about. as for facebook, hit a new all-time high in today's session. do you still like it here at these levels? >> yeah. i mean, i don't see what this is not to like. facebook has probably got the best combination of growth, because if you look at it, and the past three quarters, the growth has accelerated from 39% year over year in the june quarter, to 52% in march. and you just have that segment on how tech revenues are down year over year. that's pretty remarkable if you think about it. the profitability, they've got adjusted operating margins above 60%. and you look at the valuation relative to that, and it's actually pretty roam given how fast they're growing. so it's very hard to find a company with that combination. obviously amazon's successful, but you've got to get through the nose bleed valuation and very little profitability. google is growing a lot slower. i think facebook has got the best combo of the bunch.
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>> in terms of apple, dan, what's your take op the stock, and how it's doing? it's sort of in no-man's land right now. trading in a range. where are you positioned on the stock? or where are you looking to get positioned? >> yeah, i mean, with apple, we've written actually a couple of columns for cnbc, and you can kind of look at that and starting back in september saying how we didn't like the stock. we were shorted into the most recent earnings release. we had no problems with what they reported. in fact, it was pretty much -- it was actually a little bit worse than we expected. our view on apple is that, you know, over the next several years, it could have a lot of problems. it would not surprise us to see the stock go down significantly from these levels, because it's a bigger picture, apple, to step back for a second. global smartphone sale units were up 25% in 2014. in the most recent quarter, they were down. so this isn't an apple problem,
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it's an industry problem. apple's products were down 16%. but the real issue here is, their average days are 640. samsung is down at 210. there's a lot of profits that can be given up. >> right. it's a broader problem. you know, i understand that argument that smartphone sales are contracting. the margins aren't as good. it's really an apple problem, too, though, because they haven't moved past being a smartphone company, and that's where they sort of missed the boat. >> you're exactly right on that, melissa. i honestly thought by now i would have been long apple, and getting very excited about a tv service offering or something. but what you've seen, as you rightly pointed out, is that, you know, they haven't done a whole lot in services. you've got hulu talking about launching their service coming up. you've had cbs, you've had hbo now, you've had a lot of other
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companies going with over the top. the longer apple waits to get something out, the more consumers will have picked what they wlant to use. i love netflix, i love amazon prime. it's harder to break into something when you've already -- the consumers have already chosen. that's a huge problem. >> so the bottom line on apple is you see more down side ahead and you would be looking to put that short back on. as for disney, dan, you are short currently? >> yes, i'm short disney currently. with disney, this is a case, much like with apple, i love the products. i love watching all the super hero movies they put out. it's great. the real problem is the other side, which is sports. espn in particular is a problem. and they talked about the fact that they're still losing sub skrubers there. they can mask that a little bit with over-the-top services, going out through sling, but you're getting less money. but big picture, disney missed etfs for the first time in five years, despite blowout results
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in their movie division. they've missed revenues three out of the past four quarters, and this is the best advertising environment we've seen in years. we've heard a lot of companies talk about that. including disney. but this is the best you can do. in that type of environment. what happens when you get past the presidential elections, past the olympics, and you're sitting in next year when the advertising market will weaken again, how will things look then. >> dan, great to speak with you. >> good to speak to you, too, melissa. >> dan niles, our latest fast masters. >> three of them so far. >> which trades would you be -- >> it's about talking about shorting apple hee. i can see the e-mails coming. so i'll leave that one alone. >> wait, it sounds like you would say it is. you're scared to say it. >> you've got to do better than that on the show. start again. >> come on.
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>> listen, until last the couple of days, it's underperformed since may of last year for a robe. saying not to short it the last 18 months or so has been incorrect. why not short it here. number one. disney, it comes down to valuation. what is the right valuation. we had this conversation last night. i do think it deserves a premium valuation. but i think once it gets closer to 18, which it was a few days ago, that's when you have to sell the stock. >> i don't like the disney risk reward here. i think there are clouds over this issue. espn. there have been for a long time. i think that will continue. i think there's also the big question mark about who will be running disney. >> that's two years from now question? >> yeah, but they can't wait two years. they've got to give us some news. although i think there's a shot at cheryl sandberg which i think would be well received. the risk reward doesn't set up. apple i wouldn't short here.
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i'm long facebook and google. >> the skinny bundle isn't so bad, especially for the media companies and conglomerates. i think we've seen the content component of diz ne's business possibly more than counteracts it. >> long disney? >> i'm not long disney. i bought it last week. one of the things i want to say is i think the services revenue which was a bright spot on the -- i realize it's small, but the second largest revenue component of their business mix. if you tell me this company can't grow with their installed base, with their itunes customers, all the apples services, you're wrong. i think they can steal it from amazon and hulu and all the other people out there. a rough ride for china. one trader betting $2 million things are going to get worse. phil lebeau? >> on a windy day in the desert north of las vegas, hyper loop one gave us our first peek at what they believe will ultimately be the hyper loop. we'll show it to you when "fast
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money" returns after this.
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welcome back to "fast money." i'm phil lebeau in the desert near las vegas. hyperloop one showed us what the
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hyperloop will ultimately look like as soon as it's built. this is an outdoor demonstration on a sled of about a third of a mile long. it went from 0 to 60 in 1.1 seconds, hit 2.4 gs. this is just a small demonstration of a full prototype they expect to build by the fourth quarter of this year. here's the time frame hyperloop one has laid out in terms of building this facility and these projects. by 2017, they expect to have a hyperloop project in the works somewhere in the world, and by 2019, they expect to transport cargo through a hyperloop. and by 2021, there will be a hyperloop somewhere in the world transporting people. >> ideas like hyperloop are available at a faster pace than any other time in human history. there's a whole generation of entrepreneurs that have evolved the skills, and the confidence, and the insights, both through successors and mistakes, and the access to resources to go after really big ideas.
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>> when the first hyperloop is built, don't be surprised if it's not here in the united states. yes, there's a lot of work being done here in nevada and california, but a lot of regulatory hurdles have to be overcome. that's why it's more likely we could see it built somewhere overseas. by the way, hyperloop one just secured $80 million in funding. that will carry them through building their first full-scale prototy prototype, and they claim to show that later this year. but for now, it's at least a peek at what the hyperloop could become from the deserts of nevada. melissa, back to you. >> all right. thank you, phil lebeau, outside las vegas today. keeping his cool as always. today does mark a significant moment for hyperloop which was the brain child of tesla ceo elon musk. even though he has no direct role in the hyperloop, his association, however mild, reminder he might be spreading
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himself too thing. tom sculley is here with us today. john, always a pleasure to speak with you. >> nice to be here. >> people make the comparison to steve jobs holding dual ceo roles. is that a comparison? >> i think there are a lot of similarities. first of all, they both are thought leaders. and thought leadership is really what founders do. so the idea of a professional manager going in and running two public companies, that would be a little hard to really expect it to be successful. to take two founders, elon is a founder, he happens to be an inventor, he's a physicist, steve was not, he was a designer, but they both were thought leadership type executives. and they turned the operations over to other people. so i think it's very realistic that extraordinary talent like elon musk and steve jobs
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actually can run more than one company. but not most of us. >> we just spoke to dan niles who said he would be inclined right now to short apple. basically apple is a smartphone company and it hasn't kept up with changing with the times in terms of finding the next new product. has apple given up the mantle of being the innovator in our daily lives and giving it up to elon musk who seems to be thinking completely out of the box of what we need and how we'll live our lives in the next couple of decades? >> steve jobs was an extraordinary visionary. he could see out into the future. elon musk is one of those people. there are very few people on the planet with that type of skill. but i think it would be a mistake to short apple, because apple sells to the people who love it. and there's a huge base of iphones, and even though it may not be the next break-through product category, the iphone 7, i'm sure, is going to have a lot of people loving apple again. so i saw this with iphone 6. a lot of people are saying,
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before iphone 6 came out, apple is not going to be able to survive after iphone 5. it didn't happen that way. >> even in that answer, really, it spoke to something apple investors are concerned about, and that is it is basically a smartphone company. it's not some other product we don't know about, or some other product that's going to come out in another year or something like that. so to diversify the portfolio, and expand sort of their place in innovation, which was what apple was a few generations of iphones ago. >> you have to remember that there were about seven years between when the ipod came out, until then we had the follow-on with the products like the iphone. so these don't happen every four or five years. they happen, you know, when the technologies converge. it happened that apple was there at the right time with the iphone. it was done brilliantly. apple's never tried to be the first. they're not the first in vr.
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they always try to be the best. they weren't the first in mp-3 players. they came several years later with the ipod and itunes. i wouldn't count apple out. that doesn't in any way say that steve jobs and tim cook have to be the same. tim is an extraordinary executive. but he's a different person. we're all different. >> tell us about people ticker. >> people ticker is taking advantage of one of those really interesting things, and that is, the rise of alternative work. and work today is being done in projects. all the tools we have today enable that. look at slack, a company that didn't exist four years ago, worth $4 billion today. and so as we go to project organizations, it means that we can recruit people who are permanent employees, they can also be people who are independent contractors, the contingent skilled labor work force. at people ticker, we built the largest cloud platform that tracks every job in the u.s., in every city, regardless of
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industry, but we do that in ten countries and we'll be in 100 countries within a year. we track the pay rate and bill rate for every type of job, salary or contingent worker. no one else has that. it's a tool that big companies like ibm, hp and ericson and others are adopting, because they hire literally tens of thousands of these contract skilled workers every year. so we think it's going to be a major pivot in this rise of a new form of working. >> we're out of time. yes or no, ipo? ipo plan? >> i think we'll build it for a couple years, and i suspect it will be acquired by somebody. >> john skulley, former ceo of apple. do you agree with the take on apple? >> when i talk about apple, i'm purely talking about trading, and trading it technically. if it breaks 91 1/2, i stay apple. do i count apple out in the long run? absolutely not. i love their products. from 91 1/2 down to the 60s, i
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would not want to be long. >> i want to make a comparison directly, but the comparison in the current market with a current ceo -- >> dorsey. >> he's the ceo of two companies. >> but john tried to separate between a thought leader and visionary and executive who manages people. my sense is that jack dorsey's trying to be both. because these companies, they have to evolve. both these companies need new thoughts and innovation, new products. but they have to move the needle with the advertisers. i think that's too tough to do. i hold twitter as a stock. >> what do you make of solar city's bounce today? >> it traded close to 28 million shares. mr. sculley had two people portray him in movies, jeff daniels and matthew modine. >> who did you like better? >> i preferred matthew modine's portrayal of him better. >> his work in vision quest was unbelievable. >> thank you very much. >> one trader is making a $2
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♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. welcome back to "fast money." brazil in no cuss today as the
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senate debates the ousting of the president. the vote could come as soon as this evening. she's accused of manipulating the budget to cover up the true state of the country's economy. amid the drama, check out shares of the brazil msci. what do you do now? >> if you look at the local index in real terms, it's actually up 45% in 75 sessions. if you look over the last five years, it's almost in line with the mean trading average. the ang shon will be in the currency. if i'm investing in brazil right now, it's not in volume. i think commodities can go higher. tsu is one of the cellular names, cbd, consumption stories, where the old regime actually took apart things like utility and cellular, i would be looking at right now. >> are you banking on her being
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ousted? >> i think she's out. it's not a silver bullet, though. >> from one emerging market to another, one trader is betting big china will retest its february lows. >> it's unusual for one of the more active etfs to see the multiples of the daily actions volumes. the china etf, 30,000 of the june 31 puts paying 61 cents for those. a decline of at least 5%. by june expiration. that's probably targeting the lows from january and february in the chinese market. >> what do you think of china these days? >> $31 has been a massive support. i'll tell you, if we close below that, i think you could have problems. i actually like this trade. >> february was a very difficult time for this stock market here. >> the low we made in february
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was 1810. hard pressed to think we'll get back down there. i don't think 1950, which is the level we pivot around, is completely out of the question, given what mike just talked about. >> thank you, mike, out in l.a. coming up next, final trade. i'm here at the td ameritrade trader offices. 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 and 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. td ameritrade.
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time for a little fast but not least. a drone enthusiast pulled off what he called a first herding sheep with a drone. a quebec man shows how he rounded up sheep and guided them from the edge of the farm to the barn. machines are truly taking over. >> why the dueling banjos -- >> i don't know. >> let's just get to the final segment. >> that's a bad idea. >> "final trade." tim? >> starting to see deficits in metals. the miners are going higher. >> karen? >> yes, with this retail blood bath, i like they of iyr shorts. >> i like my idea of iwm short.
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russell 2,000 short. >> sculley, that ratcheted it up. what are we talking about the other day? >> 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. my job is not just to entertain but to educate, teach you. so call me. tweet me @jim cramer. staying power. staying power is a remarkable thing. some companies have it. others don't. staying power is dramatically

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