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tv   Fast Money  CNBC  March 22, 2018 5:00pm-6:00pm EDT

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then everything is a problem that is what we've seen. we need to understand what's making things go south i think it's rates driving up. >> thank you guys. >> price drives news. >> we will leave it right there. >> we'll follow it. >> we will see you in the morning michael. thank you. that does it for "closing bell," everybody. facebook starts right now. >> live from the nasdaq market site overlooking new york city's new york scare pete najarian, steve grasso and guy adami. tonight, an interview with cnbc about the challenges the social network faces. is redemption a relate for the tech join. john scully joins us to sign in on the scandal and weigh in on the tech wreck first, the dow got crushed today. sinking more than 700 points, closing near the lows of the session. now in correction territory.
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the s&p 500 joining the dow. both lower for the year. it is a myriad of issues unhinging this market. president trump announcing tariffs, tech stocks getting slammed as facebook remains under fire and chaos as well at the white house as the lawyer for trump in the mueller investigation resigns. guy adami? >> last week the lead of the show was are we now in a sell the rally mode pete said absolutely karen said this was the first concerned she has been in quite some time. she was getting long volatility. it's playing itself out. i thought the disappointing thing today, maybe i'm incorrect but 1:00 the market was starting to turn up now in the last six or nine months that turn would have accelerated, obviously that didn't happen today. something fundamentally changed.
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i think we test the february low. it probably happens by the middle of next week. >> what did change the fed -- j. powell came out and did fine according to most accounts the tariffs were announced they are pretty much in line with what we expected in term of the size we still don't know the products but we didn't expect to know that what is different today? >> i think you have to digest all of the above instead of just one of the above to your point on the tariffs, it was impressive how the market rallied actually as soon as that news conference came out the market got a chance to digest it a little bit and said maybe it's in the going to be that bad maybe we will push him higher. then you started to break technical levels, huge levels. on the way down there was no sense of urgency to rush in and buy them you have facebook playing out, the whole tariff thing, the whole china thing, the whole valuation things ultimately, global growth, still intact
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tax reform, still intact, you are going to get an infrastructure bill. there is a lot of reasons to be a buy the dip. >> are you a buy the dip. >> i'm still long, 99.9% of my irk po credit i'm buying the dip and i bought facebook yesterday, yes. >> the idea of what got the market upset again the market doesn't believe mr. powell or the market understands that before us are other issues. the other significant thing why market aren't moving higher or why they didn't get back on their feet the china news would have been significant a couple months ago but would not have had this impact think about allocations, where you have fun, think about the moves that etfs do when you start to see selling across stocks high quality stuff gets kicked out of bed, too. the white house announcement is another announcement that gives people the sense that this
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administration still has issues it's concerned about with all the success they have had with the tax bill and other campaign promises i hear some hubris right now that tells me we are going to do what we want to do, we are not listening to the market and we want to do it because we believe we are right. >> what about what wilbur ross today said. >> i think there are too many unknowns steve you pointed out what we know a lot of those are true. you are right. but the problem is now we have the unknown. we went through the fed. we have got j. powell, i think he did great job presenting what they think as a group. after that, we move to the next i think this that's tariffs there are unenno, sir, exactly how much of an impact this is going to be and where. that is where the market gets uncomfortable. that's why we saw such a cascade to the downside. we got a rally but that wasn't believable suddenly the unknown became a
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bigger question mark and because of that the selling came in. >> all the announce meant i saw today on gdp, everyone saw the same analysis. >> yes. >> when you look at the tariffs they said it to be a .1% effect to china gdp this is all unknowns and they are not in the market until they are the market but we are looking at .1% to us in a retaliatory measure. i don't think this is a real reason to sell -- >> there are a lot of measures on that .1%. >> we saw the tariffs on aluminum and stooul steel was supposed to be 37 million tons was watered down to 17 million tons it's going to be a watered down event. i hope it is, but people are shooting first. >> it's not a watered down event in terms of the dominos that could fall when you think about the technology and the components that are built in china and the interrelationship from a technology perspective look, there is nothing wrong with pushing back on
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intellectual property rights in this country this has been a big issue for a long time. i'm happy to hear this u.s. steel is down 30% since you had the tape tell you they were going to invoke the steel tariff. >> that's the problem is they did the carve out and it was pointless because we wonund up getting more steel the market was looking at 37 million tons and they got subpoena they got more steel from canada and mexico. >> your point is that the tariffs don't work. >> they don't. >> multiple mull. >> i am a globalist. i actually think that an efficient market steel companies were doing well in this country right operating at 90% capacity with a global market for steel. >> there are other things going on as well when you look at a bank, deutsche bank, if it was a u.s. bank we would be talking about it every day on the network non-stop the stock made a 52-week low
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today. it has not performed until recently a decent tape along with many other banks. you have to ask yourself what's going on with deutch. >> about it's going the make its way into the mainstream down 4% today again. 52 week will he. it is a libor story, and much more than that. >> the labor or story and it brings up the notion about approximate rise in short-term borrowing and what effect that could have in the united states as well. >> good for guy for bringing this up. he has been talking for it deutsche bank is down 30% in 40 days libor, the shortened of the curve is tied to that. it's moving up it's going to move even more i think there are sensitivities to that. i need to stand up and say i think european banks still look good what is shocking over the last 450 minutes since that fed meeting and since we are down today, we are down 5% on the
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u.s. financials, on the ones that should be levered to the economy, less regulation >> for more on today's market selloff,let's bring in the global head of derivatives and quantitative strategy at jp morgan marco, glad to have you with us again. you have got a 3,000 target on the s&p 500. has anything changed today does today make you take a pause here >> no. today was an ugly day. it was disappointing we were expecting the market to go up a after the fed. yesterday' fed we saw it as a positive for equities. market reaction for 22 minutes was in that direction, going up. we were thinking after yesterday's close in thered that we would basically go up today. didn't happen. we had overnight selloff be between 2:00 and 3:00 a.m. if you look at the u.s. futures for some reason they got smacked down pretty hard in the nighttime hours and that spilled over in the morning in the u.s.
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hours. we broke the 200 day moving average. i think some of the tick technical sellers like cps probably had to start selling along the way. obviously there was an announce men on tariffs people didn't want to step ahead of that. once the announcement came, market rad rallied and rolled over and then we accelerated dealers were short on the downside, sliced through the put options, trying to stop losses and it was a disappointing day so that certainly is not a positive development but we think nothing fundamentally has changed. you know, so we are -- ahead of us is a strong earnings season in april global growth is decent. it's strong. we think sort of second, third -- i don't think it matters as much it's solid and consistent across different regions. basically in february we had quite a bit of derisking in february already when we look at the beta of hedge funds where we look at where the systematic positions
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are in terms of their leverage, it's where it was in january positions is better. earnings are 15.5. we done think that's expensive we stick to our price target of 3,000 and recover in the earnings season. >> it is a mainly tech knickcals. >> mainly. of course there was a lib of a buyer's strike people were taken aback by sort of selloff when we estimate flows from systematic investors gamma edge hadding and investors, i think it explains all it. >> in terms of fundamentally you don't think much has changed concerns about trade, they have not hyde heightened? earlier you said not much has changed since january. >> yeah, yeah. >> it hasn't changed, you don't think the trade tariff rhetoric has gotten worse. >> in january we had a fear of yields going to 3.5. seems today we have fear of yields going lower we had the father of inflation
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that was dispelled with some numbers. a fear of four hikes that was dispeld we have the fear of trade war fierce we try to estimate basis points of growth, how much it can take. we are single digit basis points and we are not confident there is a lot of fear stories some come and go some clearly comes and sentiment is bad what i find is in minority somebody who is excited about this market. a lot of people are scared so we think it is a bit of a sort of a noise that will pass as with he will. >> selling in the afternoon was fueled eye technicals. is there anything that fuels us higher tomorrow or in the coming days. >> it could be just that, tech knickcals selling, it's usually what we call a temporary price
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exact. it pushes market out of equilibrium. buyers don't assess properly the situation and this type of technical sell they ten to revert we will see. we think that may happen tomorrow as well we certainly think that market will revert by earnings season in april. >> the bottom line here is that you would be a buyer in the market. >> i would be a buyer. we said that february 8th. we said that after that. we are still above our february 8th. clearly it was a tough call. there is a lot of volatility it is not an easy call but we are sticking to it. >> marco, thank you. >> what did you do today >> i didn't do anything. it was tempting to see technical levels break and do something. i didn't because i do think there is an overreact. congrats to marco and his team because there have been a lot of tactical twist and turns in the road back when we had the first draw down everyone wanted to tie it up in a neat ribbon and you
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can't do that. more volatility is ahead. >> the tail winds for the steel sector were tremendous until the news of the tariffs came out full disclosure, i thought that would be continued i was wrong. u.s. steel is down 20% since you first heard news about tariffs again, that sector to me is too cheap. nothing fundamentally changed is only thin that changed is a headline risk. >> we had a technician on the disk last night and i said i was looking for one more swish to the downside i believe this is that swish if it holds, this is going to be a tremendous buying tune and then we shoot up from here. >> you are holding on your position, you are not buying actively. >> i bought tech yesterday but home builders e which i'm still long, we are holding on to green most of the day. and it was surprising, on that last woosh down they actually went red. >> is it 2450 which is the summer lull or 2560, the next
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number down. >> the 200 day average right now is descending of the it's 2583 the december lows are 2532 the 200 day would be enough. >> marco talked about the technicals that was part of what we saw at the end of the day the cascade in the final two hours. the one trade i executed on today i have been waiting for the opportunity to get back in home depot i think it has been seld off from the highs and it is a great opportunity. >> nike soaring after reporting earnings we will bring in comments. plus the facebook c suite. farmer apple ceo john scully is here to weigh in on the facebook fall out and what the loss of tech leadership means for in market later, the dow is in correction, and the s&p is slipping towards a correction steve grasso will break down the key levels to watch. u e watching ib "fast money" live from times square in new
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york city. we have got much more fast right after this tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night. with the right financial advisor, life can be brilliant.
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welcome back to "fast money. facebook's coo cheryl sandberg breaking her silence for the first time since the facebook
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scandal. >> reporter: cheryl sand better weighing in on that data privacy scandal that has drawn concern from users, regulators and investors and advertisers as well sandberg saying that the business model of facebook does not fundamentally put user data at risk. >> we provide a free service that's an ad based business model. in order to do that, we do not sell your data we are able to show targeted advertising that's relevant to people we are able to give advertisers aggregate anonymous reports, never telling them who you are we believe we can operate our service with our current business model, continue the provide a free service all around the world, and protect people's data. but we are going to have to earn that trust >> i asked sandberg if there are other shoes left to trop and she
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did not promise that this will never happen again. >> we have a big platform. we have billions of people who use the service. and that means there are always going to be people trying to do bad. and it means we are going to have to react quickly. it also means there is a lot of good done on that platform now, that good depends upon trust and depend upon us earning it so at this critical moment, we know that we need to establish trust. we are not going to say that we are not going to have issues we know that there will always be bad actors on our platform. but we are going to work as quickly as we can to prevent those problems, to disclose those problems, and to prevent anything going forward >> sandberg saying she and mark zuckerberg have laid out strong steps to prevent this from ever happening again. she does say she wishes she and zuckerberg had weighed in earlier on this issue. >> julia, one question she seemed in the interview to say they were willing to spend anything that it took to protect the consumer experience, to
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protect their data, and from an investor standpoint that sound like an increase in cop ex that's not accounted for in guidance. >> if you remember in the last earnings call mark zuckerberg warned how they are hiring pir and warned they are spending more on security and it will impact profitability but they think it will pay off in the long run i asked her if they are going to be responding more than that she said yes, we are spending more than we laid out. we are investing in security and making sure our users' data is safe it's hard to say how much more that will impact capital expenditures but it sounds like they will be spending more than we already knew about to maintain the safety and security of the platform. >> moments ago, steve bannon the former vice president of cambridge analytic and a former trump adviser addressing the scandal moments ago. take a listen. >> that's how facebook -- that's how -- they take your stuff for
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free they sell it and monetize it for huge margins that's why the companies trade for such high valuations thissan they write algorithms and credible your life yet zuckerberg sounds like a first year associate, mumbles through the interview and no one asked him the tough question. >> it seems like maybe the fallout for facebook is far from over there seems to be questions that are still unanswered after two executives came out and gave extensive interviews. >> were they hard hitting interviews bannon asked will zuckerberg get in front of the commissions and testify? there were a lot of thing. one thin that stood out for me listening to cheryl was, she talked about earning trust back. that's for sure. it doesn't mean people are going the delete a facebook account.
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that's the first read, well everybody is going delete. >> it doesn't have to be deleting but it has been lessen gaugement or not sharing as much data with the site which may make what they are able to do with the targeted ads less robust. >> hyper target ads. it's interesting, how cheryl said we offer a free service and bannon pointed out it is the opposite they should be paying you, they are giving you everything you need a company whose core asset is data or software or anything like it, how is this company responding this was a data breach. >> a great point. >> all of need to under how their management teams are operating in this space. >> that's why all of them are trading as one big group you overlay amazon or all the
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large tech all the charts look identical. is anyone going to flee out of large cap tech no, i don't think so i think this is going to be a buying tune. you can't tell me nvidia and netflix are going to have the same exact risks and the charts look the same. buying tune for those names. >> bannon talked about big valuations facebook has 20 times earnings and it will grow at 22, 23 times earnings it is not a big valuation. number two, you know what you are getting into when you sign up for it. number three, i hear what peter is saying but i think it's easier to mine bitcoin than it is to delete your face from facebook i don't think they got in front of it as quick as they should but zuckerberg talked about a spend six months ago on the back of tangential stuff that we are talking about. it's not like the that is a huge unknown. valuation is fair but you have headline risk.
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>> let's bring in john scully, former apple stut executive. good to speak with you. >> thank you. >> do you think a situation where facebook will be able to convince congress wooem lawmakers they can self police or is this the opportunity that lawmakers have been waiting for to impose regulation on this industry >> i think what is not clearly understood is that facebook is really two businesses. the first business is the one that cheryl sandberg talked about, the business of a platform, it's highly personalized it's a community the community trust is obviously key. and it is on scale like no other company in the world it is a beautiful business model for selling ads. but the other facebook, the one we don't love, the one that we fear, is the media company of it is a media company with no reporters. it has no journalists. but it is a media company that uses computational an lytic,
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custom are computational data. it's not what facebook wants to have, but it's the ability for people like cambridge analytic and probably others other there who can take that data and manipulate public opinion. we have seen it all over the world as tribalism breaks out across the political environment. and that's one which i think is a solvable problem these are smart people at facebook and i think it's all about machine learning i think it's about learning how to get control of that computational data so that you can be able to prevent -- maybe it's with curators they have hired thousands of people to go in and cure ate the media. i think it is solvable but it's going to take time. >> the worry is advertisers are going to go somewhere else they can't afford to go somewhere else there is only a few, probably two places they can go and get the bang for their buck in advertising. is that an unwarranted worry to
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worry about advertisers leaving and fleeing facebook in a permanent way? >> no. i completely agree with you. facebook is a machine like nothing else there ever has been created from an advertising standpoint of i'm very positive that facebook will be extremely successful over the long term. yes, they have got some issues the to deal with maybe they could have done a better job of handling these issues but the reality is, this is an amazing company. there is nowhere else to go. maybe google with you tube. but between those two companies, they dominate, you know, well over 95% of the growth of the interactivity ad market. >> john, it's tim. thank you for joining us ultimately, i'm concerned about shining a bright light on players who, again as i mentioned earlier have data as their corps product or use algos, computational analytics, as you said. who is next? how do we as investors evaluate
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those companies that are doing a good job or those doing a bad job? >> i think we have got to pay attention to what's going on in the eu they put in something which is called the general data protection act what that's all about is they are starting to go in and say wait a minute, we need to have a lot more control over people owning their own data. it isn't that companies can take this data with a simple opt in we have got pay attention i think to what's going on in europe because they have been working at this for about five years in a byzantine way of making decisions as they do over there. but the reality is they are further along in terms of the regulatory path of looking at big data than we are here in the states maybe some of that will carry over to us, too. >> john, great to speak with you. thanks for your time. >> thank you, melissmelissa. >> john, how are you feeling
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about the facebook purchases you put out there yesterday. >> i'm being patient cheryl has been in front of somebody mark has been in front of somebody they are late. i think that's a problem that's going the push the stock around a little bit. there are going to be highs and lows stock is around the level a lib lower than where i got in with the call we will see how it plays out but i think over time is not going away. >> where is your strike. >> 175. >> how are you feeling >> samesies. >> same as pete. all right. >> cute, steve >> i heard it from mr. scully. there are a couple of places you can go and get that bow hemot from your ad dollars this is a stock that's not going anywhere is the worst going over, i don't know, if the you are sitting at home, 164.95 was the recent low. if you don't have the stomach get out of it. >> how do we trade it. >> tuesday we had a huge volume
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day, traded five times normal volume it pegged down to steve's low. didn't breach it today peets calls are probably going to come into play. valuation is reasonable. not like advertisers are fleeing. as much as people say i'm going to delete facebook guess what it's become so addictionive that nobody going anywhere. everybody settle town. >> the dow and s&p getting slammed today reaching key technical levels steve grasso will break down the most important chart you need to see today. i'm melissa lee you are watching "fast money" on cnbc here's what else is coming up. >> this stock has more than doubled in the past arye one of the traders says it's about to rip even higher much for "fast money" right after this selling brain-health supplemente in drug stores nationwide. prevagen. the name to remember.
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♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo. welcome back to "fast money. dow enters a correction. more than half of the s&p sectors are 10% or more off
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highs. let's go to bob pisani >> correction everywhere dow is 9.99% off its all time high in january. this is the second time this year we have entered correction territory, 10% off recent highs that's a correction but we are still 600 points above the february of theth below. the blue chip index is the only major index in correction right now. sectors have entered correction. s&p, energy stocks, 14% off of jan highs. consumer staples, utilities, telecom, health care, materials, all also down more than 10% from their recent highs there is currently 307 s&p 500 stocks in correction that's about 60% of the s&p 500. a you if a of the biggest stocks currently in correction, walmart. wells fargo. exxonmobil, home depot, boeing, citi group, disney and alphabet google what's the issue
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trade wars on the table. social media worries, led by facebook, which is in a crisis in general on social media other teches are faltering with no other leadership groups comes forward. and bond yields are falling in a flight to safety that's putting pressure on bank stocks finally the feds upgraded economic projections and sent the message that higher rates are coming down the road it is a lot for the markets to digest i can't wait to get out of march so we can get into earnings season which are going to be stellar at least on the surface right now in the next couple of weeks. bob, thank you. >> bob pisani at the new york stock exchange bob was talking about some of the socks in correction territory. home depot is one of them. you bought that. on your list, tim, there is there a list. >> fedex and jp morgan are at the top of it. no one here on this desk is ready to say there is not great growth in the backdrop there is market factors and
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technical factors. delta and united those are three or four names to have on the top of the list. >> the quarter was outstanding >> fantastic. >> if you look at the numbers it is a cheap stock compared to ups, down how from its high fedex is this, ups as well steel stocks -- tail winds for the steel sector didn't go away. the only thing that came into the conversation was the tariff conversation which i think will go away at a certain point. >> besides home depot what are you looking at >> i already own it. recently is exxonmobil it has been in correction. and they have not caught up. as oil has gone higher the names haven't been pulled up with them i think sooner or later that's going to correct exxon, chevron, take your pick. >> grasso, head over to the plasma. >> love the plasma >> look at that. >> today when you look at the
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market you have to -- everyone walked in today and they taught it was going to be a down day. the market was getting tapped a little bit then the market started to rally it was a head fake rally let's look at key levels let's start off through this prism. this is the all-time high, 280726789 this is the recent low, 25032 so in here you have got a lot of stuff to worry about let's -- why don't we key in on where we broke today that was the 2662678 that's a retrace men between these two key levels once that faded, it opened the door back to this level. that's why the bottom dropped out. so between here and there, there is one other stop. it's 2612. if you get that stop there -- i'm going to call this one a speed bump it is a light support. et cetera a not something to
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really hang your hat on. tomorrow when you walk in the the market does not hold i think we are going recheck or try to recheck this level the only problem is, between this level and this level now, you have an ascending, 200 day moving average that is located at 2584. this is the level that bears and bulls must know. if we break this level, hide in the corner >> tim, auto i'm sorry -- >> so ultimately is the s&p driving how you are looking at tech knickcals for the market overall. should people focus on the qqqs because that's been leadership for the last six to eight week. >> you can look at the large tap influence on the qqqs. but for me the biggest worry is tariffs. then you have got to look at the global index that's the s&p there is a lot of international exposure key in on the s&p. great question, good point. >> a lot of levels to watch, guy. are these the levels you are
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watching >> 2585 is absolutely a level. that was what we bounced off february of theth. that's that we bounced off of that particular friday that's where in my opinion we need the retest and rebounce i think we will. i'm not crazy bearish. this is something we said for the last couple of wee the fact last week we talked about it being a sell the rally mode rather than buy the dip it wiwill become buy the dip again. speak we test the lows >> let's check in on the banks mike we were looking at xlf today as i'm sure you know, the financials were the worst performing secretariesor until the s&p 500 today. we saw more than five times the average daily put volume in xlf, all the rul of a large trade of almost 200,000 contracts someone rolled out of a march 30 put spread 50,000 times and rolled down and out for the 2923
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put spread in april. they are pressing a bearish bet and betting it could persist into next month. marco said something the fact they are short those 23s creates support because dealers are going to be net long that strike. >> pete i know you are watching that action. banks are in a curious spot. >> they are. >> they would be hurt by a disked economic growth because of a trade war and we are watching yields go lower. >> as the yields dropped obviously that presses on the banks for sure because everybody was counting that we were going from 28 to 29. we are going to 28 again it's about velocity for me i use that when we are talking about certain areas of the marketplace. whether it's volatility or ten year, it is about velocity growth is there, obviously they
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need the yield curve to high pressure them out. >> hoff that show that he's on what's it auld. >> "options action." check it out tomorrow at 5:30 eastern. still ahead, nike soaring, micron is sinking. the company conference call is underway right now we will hear the latest from the c suite. drop box gearing up for its big public debut tomorrow. it's been a ugtoh couple of years for high-profile ceos. can drop box buck the trend? traders weigh in after this. because if you only want the best thing, you get the #1 thing. directv is rated #1 in customer satisfaction over cable. switch now and get a $200 reward card. more for your thing. that's our thing. call 1.800.directv
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welcome back to "fast money. big earnings movers in after hours conference nike and micron. let's goat courtney first on nike >> nike shares up 6% or so after hours after beating on both the top and bottom lines direct to consumer sales in international markets is what drove the quarter for the athletic wear maker. china, sales up 19% year over year sales fell 6% in north america a drop in both footwear and equipment sales. on the call, nike ceo says it expects its north american revenue to be roughly flat year over year in the current quarter returning to growth this the first half of fiscal '19 repeating the previous year forecast ceo parker addressed the allegations of inappropriate workplace behavior that surfaced last week. >> we became aware of behavioral
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issues that are inconsistent with nike's value of inclusivity respect and empowerment i'm committed we have an environment wherever nike employee can have a positive experience and reach their pulpo tension. >> parker added we geed to a change in the leadership structure of the nike brand at this time continuing to say trevor will work as an adviser through the transition until he retires in august. parker didn't give reasons for why it's time for a change in the leadership >> thank you on nike, 5.5 is the gain in the after horse. >> long the name the international story is what it's about struggling in the u.s. but getting the story back in order. there is secular trend in the athletic wear space. the question is valuation. on the chart, $69 for nike looks
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like it's going to be tough to get through. >> is this a trade war stock. >> that's a head win they are well aware of what's going on this was a pitch stock for me. the reason i like it and the reason why i'm not in it now is what tim brought up. valuation starts to get high you are get growth in china and international, dtc but at value levels you wonder if they continue. >> under armour has outperformed nike and then you get the tail win of the tax reform. underarmor has a high 30s effective tax rate nike has sub 20 already. maybe it's another outperformance the next six months or so >> now let's go to josh lip ton in san francisco for more on the micron earnings. >> the stock was up more than 40% this year. it has given that back in the after-hours a bit. the company's ceo going through
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the business divisions mobile business saw record revenue and profitability, point being high end smart phones are incorporating ai and vr. he says that bodes well for the memory chip maker. he gave a shot out to a number of times to crypto they saw record revenue in the automotive market. d ram made up 70% of the total research in the quarter. up 14% sequentially. they continue to see favorable industry fundamentals. as for trade ram, that represented 25% of revenue in the quarter. down 3% sequentially they are looking for that market to have a more balanced industry dynamic in 2018 versus the constrained dynamic they saw in 2017 there were u.s. questions on the all about the production issues they were having he said that is going to hit revenue by 2 or 3% this the
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current quarter. they factored that in he said into their guidance. calling for 7.2 to $7.6 billion. the street was at $7.3 billion >> guy >> margins are now approaching, operating mother-in-laws are approaching 50% and why is the stock down with some of the things that josh mentioned one of the thing he didn't mention is if we do get into a trade war, i'm not suggesting we are, but if the china want to touch all the product on the market the mother-in-laws that are great right now won't be so great. that's what's concerning people. if you don't think there is going to be a trade war, micron is dead cheap. >> we have seen them lower like caterpillar and boeing the typical trade war stocks technology and anybody who makes hardware is going to be hit hard potentially. >> we talked about the unknowns at the top of the show that's are the unknowns that are
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very, very ribby right now when you are looking at micron and you see valuation at the levels where it is right now it's not nike where it's more stretched. micron, you are talking single digits in terms of their valuation levels with the kind of growth they have got. i think it has more of a cushion comparatively speaking to a lot of the competitors we talk about. >> what do you think >> i think the pricing effects and the trend in d ram and unanimous are going to keep it insulated. let's be clear they are getting their prices right now. >> drop box ipo is come tomorrow much more "fast money" after this break see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable.
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i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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. welcome back to "fast money. we have got a news alert on drop box, pricing its ipo leslie pick is in the newsroom with the details. >> pricing the i porks po at $1 a share. above the range that it bumped up earlier in the week that's according to a person familiar with the marry. that source poeld me it was 25 times oversubscribed
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such hardy demand might come as a surprise in today's plummeting market here what brought investors in the tour a small float. only 9% of the company is being sold in the ipo. small floats tend to yields pops on the first day of trading. that alpha becomes more critical following a selloff like we saw today. additionally drop box got a huge vote of confidence from sales force, which is buying $1 hub million in a private placement nod to the $756 million ipo. if you recall, sales force bought mulesoft this week for $6.5 million investors think buying drop box ipo could yield the same outcome although my sources the me a takeover by sales force or anyone else is unlikely to happen any time season also note, drop box's comp, box, has actually --
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>> market lays. >> i don't know. it's going to need to be a proper light house i don't think with the market here -- i bet they would have loved to have done this a couple weeks ago. i hear 9% free flow. and low liquidity. there is going to be an $800 million of stock out there the company was valued at $10 billion four years ago they waited and waited i don't think it is a great market environment we have had the discussion about some platforms that need the -- why crypto is also a threat to these guys decentralizing, why do you need drop box i think it's going to be tough. >> it's about the float. you are doing the see a pop. it doesn't really matter what the market does tomorrow on the macro, when you have that low liquidity to tim's point you are going to see a pop when you look at the koch, box,
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that popped but a couple of months later the stock was in dramatically in hindsight it's doing well now. unless they think that's an m&a target or not. i believe this one will pop on the opening and sustain it with the light float. >> who is that guy that hates oracle, benioff. you have got the sales force seal of approval for this thing to the teen of $150 million. >> good enough for you. >> what does sales force need to stay this the game. >> brian kelly's point. >> benioff seal of approval. drop box is a good buy to you? >> yeah. >> up next, final trade. ♪ ♪ excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day. ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats.
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time for final trade, pete. >> earlier in the show you asked me what i was buying today one stock. home depot huge call buying in lowes. better name. >> you were asking me what i would buy. i think i said fedex this is a great story. it's certainly the global story. >> what did i ask you early whier in the show, steve >> you asked me what we did today. let me think back. >> housing. >> pulte homes.
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>> what is a home builder that has three letters? nice >> where are you flying to to you united health. >> . 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 you want to make friends i'm just trying to make you some money. my job is not just to entertain but teach you. so call me, 1-800-743-cnbc or tweet me@jimcramer it is brutal out there if you take away everything wewa

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