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tv   Fast Money  CNBC  April 28, 2016 5:00pm-6:01pm EDT

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well, maybe stuff is still growing despite this tough economic environment and hey, maybe it will grow when things turn around. >> see if we can get a broader market turn around. the dow down and guys, thank you so much for joining us for another rowdy earnings. that does it for "closing bell." "fast money" begins now. "fast money" starts now and overlooking times square. i'm in for melissa lee. traders on the desk, steve, karen finerman and dan nathan. tonight on "fast." amazon surging called just getting underway right now. there is our team because we have team coverage and the big story, linked in soaring. we're bringing you breaking headlines. the second longest bull market ever. bank of america's chief
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technician. later, while the market tanked today one group of stocks hit year to date highs and the real story. but first, we start with a very tough day for the markets, the dow losing more than 200 points having its worst day in two months. the s&p and nasdaq losing almost 1% and all started with these words from billionaire investor carl icahn. >> we no longer have a position in apple. to start, tim cook did a great job. it's not the no brainer it was. >> well, after that, apple tanked, took down stocks with it. dan nathan, what do you make of it? >> apple is 3% of the s&p 500 and took with it microsoft, which is 2% of the s&p 500 and snowballed. there is bad news in those large cap, mega cap names over the last week on earnings and continue to get sold every time the market kind of turns. we haven't had a particularly
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large sell off today, 1% feels like the largest we've had in weeks but if you start losing some of the largest components of the index, this is where the markets rally off the fed lows could run out of steam. >> steve who was -- sorry, i was going to say what the doctor didn't order in an atmosphere and environment where tech is already under fire and then you have carl icahn come out and say i no longer have a position. >> and make you wonder how much facebook and amazon can do for the stock market anyway. you remember we had four stocks that did it last year while the market was actually falling on it knees and we know what happened but i would say this happens -- this started yesterday. we walked in today, markets were down, okay? nike was down 3.6% last night. the end is rallying. that's often a risk off sign. you can't tell me this is all about apple. in fact, i think the fed is more hawkish yesterday. >> the fed did recover. >> it did but you can't tell me there wasn't volatility already today. >> they were a little disturbish. so they -- so --
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[ laughter ] >> they wound up giving us a little softer economic data, that comment and of usually taking away the global concerns. >> isn't that -- >> that was hawkish but taking backwards and saying the economy is a little softer than we hoped or economic data paraphasing a bit. gave the bulls and bear something and today icon, your dude wound up taking the bears side but wasn't just the apple comment. it was him saying the markets, as we moved in a day of reckoni reckoning. >> karen, not like the cautious tone from icon is new, just sort of reiterating it today after you had this tremendous rally off of 1810 and s&p. >> that's the far more important part. >> today was bad but back to where we were a week or so ago. this run has been enormous. so this tiny little crack -- i think it did go too far too fast but not super high.
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i'd love to buy new stuff but i'm going to wait a little more. to have a couple days follow through wouldn't be a big deal here. >> i think dan, people were stunned by the events overnight. no one really saw the boj move coming. coupled with yesterday's news from the fed, which, you know, people said had a more hawkish tone to it makes you question what central banks are doing if they have any ability to do anything anymore. >> well, it makes it -- we talk about a lot on this desk. we think about what is going on in europe and japan and currency going lower. to tim's point, when you see the yen rallying, that is a problem. i don't think there is any conclusion about if the fed, you know, what they did yesterday, it's more confusion. they -- so just saying they are less worried about international -- >> look at the dollar action. you look at utilities and high yield. i don't know how you can say coming out of that that it wasn't more disturbish than
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anything else because rate sensitive stuff obviously moved up and performed and i think that's what they told us. >> you're right the dollar should, if it was hawkish the dixie would have done something. really seeing the central banks which we've all been arguing for a long time is starting not to work. you need more than monetary policy to get it done. the boj is clueless. they had to throw the kitchen sink out on cnbc asia and go 20 trillion in corporate buying and go even further negative and we're at a place markets need the next move and seeing parts rallying. the trade, commodities, resources and break 96 and therefore some things will be in play. >> wasn't just apple carl i cca warns is in deep trouble. here is what he said about the market. >> i do believe in general that there will be a day of reckoning
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unless we get physical stimulus. you can't have a federal reserve if negative interest rates -- without creating bubbles. >> well, that view is shared by our next guest and you want to listen to him because marco and quantitative and last year's swoon in stocks. welcome back. >> thank you. >> what do you make of what mr. icon said? >> very similar to what we saw -- what we said today earlier in a note. so fed and rest of the central banks in the corner in a sense that they can't really go much more negative rate territory. they can't -- they also can't hike and they can't hike for two reason. one because inflation expectation and actually if you look at the core pc declining in u.s. and in the rest of the
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world so they are under shooting the target and try to hike there is a risk of basically equity multiple coming down and we have argued between 5 and 15% of equity -- 5 to 15% equity premium due to zero rate policy. right? so sort of they can hike and logical next step if prices or no prices is to go fiscal and government spending and for increase level of government. >> we know what the chances of that. it's like slim to none and slim is left. i mean, the fact that expectation of the government to do anything don't hang your hat on that. >> well, but what would fiscal stimulus be? infrastructure and spending and construction material. all those things already, inflation. >> absolutely. inflation, you mentioned it could be infrastructure spending. there are other options and investors over the past few days
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could be the reaction. >> you said more. here we are, we have a situation timing thing and i think what scott was trying to say for the next year or so until we have a new president and administration, there is not going to be fiscal policy here and so the other thing, when you think about emerging markets and china's fiscal policy, it's the one that created all of this mess that we're in as far as credit and the commodities. >> priced in the other direction. >> but it's not coming any time soon is the point. >> china is stimulating now. >> just about u.s. you could have other countries -- >> hang on one second. let me say, what people are thinking tonight after hearing carl icahn and what happened overnight and trying to make sense of the fed is do i get out of the market now? should i sell some stocks now because of the rally and now i hear carl icahn saying a day of
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reckoning is coming. >> right. so the question is which stocks, right? some stocks may react positively. some react negatively. so we maintain sort of the view that growth stocks, momentum stocks are actually going to fill head winds and you'll have some stocks like materials energy, multi national emerging market exposure more generally valued sectors may feel a tail wind from this. so just generally say get out of the stocks but certainly pair down exposure that may not do well in these type of markets. >> marco, thanks for being here. good to have you. >> so no, i think when you look at it coming out of the g 20 to tim's point, when china is is still stimulating, you have their deficit to gdp ratio, usually is 2.3%. they said they will take off, not to get wonky but they said they will take off the gloves and go to 4% or 3. if you raise that, we rallied in the s&p 11% from that point.
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that measure. to your point, you're still able to buy our market because janet yellen is still looking at china for the lead. >> up next, everyone is talking about peak autos so why did a major auto stock keep going higher? we'll explain. plus, linked in is soaring after hours on a big earnings beat and despite an earnings miss, instant reaction and of course over the big story stocks shoring as they break. much more "fast" is just after this. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of the at&t network, a network that senses and mitigates cyber threats,
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since 2001, more than 700,000 comcast nbc universal volunteers have lent a hand to their communities. this year, we're extending our partnership with our friends at red nose day and global citizen. making it our most rewarding day ever... hands down. we're back on "fast money." dominic chu back in the newsroom has the latest. >> shares gaining more than 4% in the after hours session. we'll say in about 248,000 shares, this as the chinese search provider gave stronger than expected current quarter revenue guidance and reported the monthly active users, they were up 9% in the first quarter, as well. the company's q 1 did miss estimates and narrowly missed.
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the stock up 3% on a year to date basis so setup there interesting up four, almost five. back to you. >> long, a name ultimately the big, the 80 and fxi listed are places and the case of buy. 30% growth and 20 multiple. this is value territory in a company that's dominating the region. if you like google, you like baidu and expectations are very, very low. >> all right. let's move onto the auto trade and ford and gm. ford posting a monster beat from top to bottom line. that stock is hitting year to date high. gm reporting similar results. so are the stocks telling the real story about the economy? >> well, you know, what is interesting -- what is interesting is that these guys, when the economy was supposedly
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had some escaped velocity or actually seeing some incredible numbers in printing record numbers, stocks have been doing nothing for the last two years. ford broke out and today's move well above the 100 and 200. what does it mean? you're in a place where people look at the fact maybe the best days are behind them but that you're left with evaluation and the dividend and a company that's much more disciplined than they were during the last run up cycle. i don't think they have the same exposure to financing. i think the margins are holding in. the f 150s to me is the highest margin vehicle out there and if the housing market is recovering, there you go. >> it's been peculiar to see the least how we talk about how strong the auto market has been for the last 18 months minimum. >> the numbers just levitate. >> disappointed. >> and almost like the better they report earnings, the more that solidifies people. that was the peak quarter. i was looking over the last several years, the p.e. multiple
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was nine and change. people clearly, the dividend nearly five. it is curious. all that having been said, i don't own it. i'm afraid the autos peaked. >> i do believe you need global growth. you need a growth environment. i think this is a whiplash because they have been beaten down so badly. ford is up 2.5% year to date. gm down 5% year to date but i think you need tim talked about housing. i think that's correlated. the f 150 is correlateed to a better housing and better housing numbers haven't been great. >> they do have great margins with suvs and trucks and if, if oil goes back, there is a fear that those high margin items will -- the mix will change. >> to me when you're talking about housing and talking about autos, you are really talking about a proxy for the u.s. economy and to me, when i look at gm and ford, they are in pretty interesting down trends just personally, technically and you saw today the move that you saw that the housing home
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builders etf and world pools results and masco is rolling over. they are ready to take a pause. like you said, yeah, ford is up 30% off the february low but still down on the year in a mighty down trend. >> north a little bit. >> a little bit. >> up next, linked in surging and company with strong guidance. we'll hear from the ceo of linked in in his own words and we're following the action in amazon. that stock is killing it. massive beat all the way around. we'll give you the headlines from the call. look at it there up $72. it's a gain of 12% in the aftermarket. i'm scott and you're watching "fast money" on cnbc. in the meantime, here's what else is coming up on "fast". >> i'm mad as hell and i'm not going to take this anymore. >> that's how invest tors feel about the bull market and that might explain why it might keep going and next --
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it's transforming our world. welcome back to "fast money." julia boorstin live. >> scott, even more meaningful than the company beating on the top and bottom line than the better than expected earnings outlook for the second quarter and rest of the year. jeff weiner talking about improvements on the ability to return investment acrossed board and talked about the growth of the recruiter business and adds which it calls sponsor updates and engagement on mobile in
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particular. >> q 1 marked the first full quarter and pleased with performance thus far. members are engaging at record levels with the more real veble feed. during the quarter, viral actions increased 80% and daily shares up 40% and traffic grew more than 150%. >> cfo talking about how the company is benefitting from user growth with the addition of more new members than they have seen in two years and 23% increase in page views per user visit. the stronger outlook that we're getting from linkedin sent shares down 44%, the day after earnings last quarter, right now the shares up 8%. quite a different story. scott? >> yeah, julia, thanks. i can't help but think as i look at this linkedin beat.
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>> they were down 44%. they did not beat -- don't say it. here is the other thing about linkedin. you know what that is on a gap basis? a loss of $1.90. it's ridiculous. >> the camera so far. why is it up 8%. >> because people are shorting the stock. >> yeah. >> what dan and i are in agreement, it's a powerful moment. the problem with linkedin -- >> i misspoke. >> the engagement for them is a fraction for what you have for other social media. say what you want, it's social media. at the end of the day i don't see how this justifies. >> it used to be a must, must be on social network and i think it's lost a lot of luster, but on a technical basis, it can rally another 10 to 20% from here just on a bounce level. so under appreciated, thrown
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out, baby with the bath water event down 45% never underestimate how high stock that's over $100 can bounce when people scramble. >> how much do you think -- >> another $20. >> that doesn't make sense. >> probably 20%. >> from the -- what is it up nine, ten? >> from this point i get my balance levels at 155 to 170. >> what does over $100 have to do with it? >> how often have you traded? i trade every day and when you try to buy a stock over $100 -- >> whoa. >> oh! >> came back -- [ laughter ] >> yes, brought a knife to a gunfight but when you buy a stock over $100, the liquidity isgapping. it takes 50 cents to a dollar. >> it's still the same -- >> what? >> now i got options. >> this is y 2 k over here, people. listen, this trade is tight. >> trade school making up. >> are you kidding me? when you try to buy a stock -- when was the last time you tried
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to buy a stock over $100? >> yesterday. >> i'm sorry, more than 1500 shares and i'm not being facious. >> they lowered expectations so in my mind, they didn't beat anything. >> i'm thinking of old tech versus new tech and on a night where we seen amazon blow the doors off, facebook blow the doors off and coming off a week where microsoft disappointed and intel disappointing, ibm disappointi disappointing. >> linkedin does not save the market and amazon didn't last year. amazon trades at 120 times and not growing fast enough for that. >> amazon did save the market last year. >> wasn't amazon 50%? >> yeah, amazon, netflix, the market was flat every other stock. >> you talk about this -- >> you ever traded a fang.
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>> last time -- >> it's a market -- [ laughter ] >> yesterday. >> agree. >> but i ultimately to me if the message is the same that a hand full of stocks are the ones that are driving on the headline and getting people excited when in fact, a lot of other stocks are not performing. that's not going to save. linkedin, expectations so poor, a beat here doesn't get you excited. expedia doing well. the margins can protect margins. there are places where i think you can actually look at earnings and say nothing is happened in terms of a change in theme. i'll put it this way over the last couple days we haven't seen for the last three weeks. >> i'll add amazon expectations were high and stock did get slayed after they reported and guided down and reported a $29 billion revenue number in the quarter. fantastic. okay? but they had an operating profit of 545 -- >> made $51 billion or whatever. >> and attended. >> so down what i'm saying it's
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not going to save it, either. it's just not. have your ball. trade the amazon and trade back up to 700. whatever you want to do but i'm not going to be part of it and you should be -- >> you haven't been part of it and you don't like the stock and haven't been part of it since $190 or forever. it's never going to check the box for you, right? the point is to get in now, and say that it's not for you, you have never been on -- >> steve, steve -- i know you're busy trading $100 stocks but here is what i'll tell you because you can handle a couple pennies here. they are write books about amazon like some day your kid is going to go to a good, you know, business school and stuff like that and there is going to be -- >> this is only an hour show. >> have a ball, have the amazon -- >> $400 in profit and all i'm saying if it's not for you, it's not for you but it doesn't mean -- >> is it for you? >> i've been in and out of the stock and made money in the stock. >> all right.
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we'll leave it there. i was going to say you guys need to be separated but this going on and only two of us. >> not a personal attack. >> i need to sit there now. are we good? all right, up next, the amazon call is half way through. the stock is surging, as we said. headlines you need to hear and later, think the bull run has been on a tear? ain't seen nothing yet. find out what has one of the most well-regarded technicians on the street saying we're about to hit new highs sooner than you think. more "fast money" is back after this.
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welcome back to "fast money," stocks accelerating losses into the close. the dow falling 1%, the worst day since february the 23rd, apple putting pressure on the whole market after carl icahn told us exclusively that he was out of the stock. here is what is coming up in the second half of "fast money." despite the major dip, could the best days for the market be ahead? why new highs are around the corner and inside look at the
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$12 billion move that the energy sector could see tomorrow from two companies. we will explain. let's start with amazon. josh lipton monitoring that call from san francisco, josh? >> well, scott, the very first question was about the company's international segment and we'll explain the growth. the cfo answered the question. take a listen. >> europe and large countries in europe and japan are a few years behind the u.s. on a lot of key prime met tricks but we said last year prescription that up 51% year over year and 47% and scott, the company, that was the best. and more selection and a lot of questions about aws, the
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company's cloud computing unit. cfo saying he was pleased of 24% but said it was too early to draw conclusions just yet where the margins are headed long term. noted they will be bumpy in his words. he did say investors should expect capital investment to continue and building out aws. he said we intend to maintain our leadership position in that market. scott, back to you. >> josh lyipton. thank you. let's bring in gene munster. welcome. >> hello. i mean, i'm sure you can come up with a lot of superlatives but when they say margins could be bump y going forward, what does that mean to you? >> they should be thinking at any given time amazon could pull the lever and margins could go down but they also should be thinking that the under line frame work of this company is getting more profitable. while there may be dips and
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giving themselves an out if they increase spending, that's why they make that comment but if there are dips, investors can feel better about owning it into the dips because of what we've seen over the last six quarters, which has been impressive margin leverage. >> gene, it's karen. let me ask how do you think about the valuation of aws versus the rest of the company? >> well, in total, we think that this is probably two to 250 billion of overall amazon evaluation and so this is obviously a crown jewel of what amazon is doing, the margins are higher. the growth rate is higher and long-term secular theme is as powerful. that's an important x factor. how will google impact aws if they have diane green and putting powerful language behind how they see the cloud google rolling out of the next few years. >> hey, gene, it's sam. how about app usage and mobile
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and this is something point out at least as a tail wind for them. is it that big a deal and again, you know, where do you see them getting the next lever to pull? >> i think the mobile stuff is just kind of that's just where the world is going but i don't think there is as much of a lever on that. the big aspect what amazon is doing is they are systematically taking your wallet and the way is two-fold. first the prime things josh was mentioning, a prime user spends more than 12. the second is they are offering new products to get you to spend more easily. for example, prime now. the one-hour delivery is in 28 cities. it was in one city a year ago and same-day. and so look for them to get more involved with groceries and so i think it's aspects like that that are going to make people think whenever they buy anything, they will go to amazon and that's a huge lever over the next decade. >> lumpy economy here in the u.s. maybe that's not the right word but certainly iffy. how does that factor into this
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story? >> i think less than most stories and the reason is that just the growth is so powerful. unit growth in the march quarter was 27%. that was a 1% acceleration from the december quarter and 2% from the september quarter. so what that is saying is there a secular theme going on. traditional retailer i would be nervous about what amazon is doing. they are the ones that will really get crushed if things get lumpy. amazon will be impacted but will power through by gaining market share. >> thanks, staick with us. we'll be back to you later in the show. >> listen, this company is using that margin on aws to do this other stuff to grow market share. i want to make one really important point because people spend a lot of time on aws of the 29 billion in the quarter. so less than 10% here. and that's really important when you think about the fact they said they will spend money so the margins will be less going
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forward. they have google and microsoft nipping at their heels here. so this story at some point you're going to see massive margin compression in the aws business. it's just going to happen. >> am i reading -- are you negative only the stock? >> i am. absolutely ludicrous. what they are doing -- they moved the first mover advantage and a great margin business but a lot of people will be coming in there doing exactly what amazon does -- >> how do you get ponzi scheme out of that? >> as a stock. it's a great company and very happy consumer. they steal from peter to pay paul and then they will grow market share and retail and that's what you saw there when you saw units up and people love it and stock is up and in the next quarter -- >> the problem is -- >> extremely volatile and reached the all-time high. >> $100 a stock. be careful. >> you should never trade this stock. >> $696. >> he has experience trading. >> $696. >> anybody can do it. >> in december. >> thank you, scott --
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>> we done? >> you started it. >> and then back into the mid fours basically. >> how come nobody is talking about evaluation. >> it's in the price. everybody knows how great this company is and look, the first mover advantage of spending own fulfillment bravo. >> if it's in the price how does it trade up 10%, 13% if it's in the price? tell me that. just tell me that. >> the expectations were very low. >> so it's in the price now but wasn't 24 hours ago? >> first of all, 13% and it was 120 and now 123 times. the stock has been all over the map within $200 of its own price. that's the problem with amazon. >> of course you can say that's in the price. >> what amazon does is keep people who want to short the stock on their toes. you're afraid to sell the stock because you're afraid of this gap -- >> we're talking about two different things. >> steve, what are you hoping for? being long, what are you hoping for?
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it's worked. >> new highs. >> use that as resistance. it's got to hold this level. you know my three-day rule. you don't buy the stock tomorrow. you wait a couple more days and see where it levels out and hold the three-day low. you use the support. >> you're getting long after three days. >> everything, if you want to get long with stock, yes. but you. >> i'll tell you one thing, will you short the stock in three days. i'll flip it back to you. you said you're negative. i said i'm positive. i'd rather be long. >> i would not be short the stock. if it's in the price by the way. have i said that yet? >> it's in the price today but yesterday wasn't. that stung. [ laughter ] >> read something. >> can we fade to black here or something? karen, please say something, come on. >> i love the company. i can't get -- >> remote value person is never going to get -- >> never -- [ overlapping speakers ] >> why can't they trade to any,
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any multiple. >> i don't know that it can't. >> if you buy this stock, you can never think about the multiple. never. you don't look at amazon because he could flip the switch any time he wants. he could flip it and become profitable. he could flip it and say i'm spending more on cap x. it doesn't matter. you have no clue and never in the price. >> i do think of flipping the switch is priced in at this multiple. >> how can this right now when you say it's in the price. >> right. >> how is it in the price when it trades up 13%. >> that's it. can we stop, please? is the deal. selling apple down 3%, here is a company with a $500 billion market cap. a couple 190 billion -- >> apple doesn't have aws. >> oh my god. >> there is the growth. apple doesn't have aws. pricing growth. these people are pricing growth. apple is pricing a blue chip stock now very simple. >> a lot of people are thinking that apple's services in the
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growth. >> hopefully -- >> 5% and tiny, tiny little piece of the overall business and you're rewarding amazon and you should be rewarding apple. >> agreed. >> you ever trade stocks? >> still ahead, about today eavesdrop in the market bank of america says new highs can come sooner than you think. check out shares of gilead down 2% falling. we'll get the latest underway. you're watching "fast money." we're back after this. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find
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to help you keep rolling with confidence. go long™. ♪ welcome back to "fast money." i'm julia boorstin. pandora trading better that be expected results. since he's taken on the helm saying the company has never been more clear about the vision or confident in how to achieve it. saying that the depth and complexity of pandora's monicaization is unseen and business makes almost as much revenue per hour as broadcast radio on a fifth of the ad load
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and knnoted total listener hour is 100 million unique listers make it the third largest in the u.s. behind facebook and twitter. >> in the face of intense competition, our hours listen per user is steadily rising and this despite free on demand services with little or no ad load that are creating a dangerous gray market for music. >> he thinks of pandora as having the same approach and advantage of netflix and amazon. some pretty bold words there, scott. >> julia boorstin, thanks so much. dan nathan, do you like this story? >> no, here is the thing -- >> one of these times, i'll say dan nathan, do you like that story? it will be yes, i do. >> it's got a good brand and descent installed base and a lot of competition. tim cook said they have 13 million people and they will be taking people away from pandora.
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it's going to get taken under. you remember napster? they brought back the founder here. it's a bit of a mess for all intensive purposes but stocks reflects that at $10. >> i like it, actually. i think there is that takeout premium -- >> i said take under. >> whatever you want to call it. i think the 79 million subscribers are very important and i think there is an incredible amount of loyalty and the stock isn't terribly expensive. these are things you can't say about high fliers that we talked about after hours. i think there is a lot of bad news in the stock and a valuable franchise. >> a little bit of twitter to it. >> ever traded a $10 stock. >> that's scary. >> numbers -- >> i don't know if i can do that. >> mobile app traffic only behind facebook which is really interesting, so i'm on tim eastsi' 's side on this. at $10 it's down 30%. i think you got to be careful. >> moving on. carl icahn's comments today may have taken down stocks, but our
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next guest says new highs are just around the corner. steven, bank of america maryland technical strategist is at the smart board. >> thank you. we have a big chart going back 120 years on the dow jones industrial average. why are we showing this? we show this to a client all the time. marquette goes and trading ranges. okay. try that one more time. i did it again. >> you look great. >> see that. smart board. >> nice recovery. >> then you got a secular bull trend and trading range and we just broke out. everybody today is talking about the -- that word in the second largest bull market in history. from '09 but people are missing three years into a secular bull market and the one from 1950 lasted until about 1965, 1966. so when you look at that, the secular risk reward here is
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quite bullish. so that's really what we need to think about in the big picture, the tactical picture is a little different. we are range bound. we're a correction of the larger secular bull trend so when you think about that, there is resistance around the 2100, 2135 range and it could be difficult to take out. now, you know, if you look at near term indicators, a lot are confirming, suggesting that we could touch new highs sometime in the may period but think about go away, that's the biggest silliest thing to say but when you go with the seasonal data, it actually is the weakest six-month period of year suggestion you should back off on the risk. my guess, when you look at the market here on a double bottom was not able to achieve the objective up here. this double bottom, however, achieved around 2085. what it had achieved objective, guess what that means? the means the market is turning more bullish. what is not on this chart, they
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actually have moved beyond the highs hit last may. breath in the market improved. what this tells me if we have trouble with resistance, we could back and fill and perhaps hold 1950 which is a key support now and i think if that happens, it sets up the market few new highs this year. when you think about secular bull trends, they start off slow and tend to gain momentum as time goes on. there are a lot of none believers and right now we're three years into a secular bull trend but my guess is looking at this trading range, we eventu eventually breakthrough and accelerate the trend most likely this year or start income 2017. big support to pay attention to, 1950, if that doesn't hold the range low is around 1800. finally just a couple sector ideas here, we have bullish calls on industrials, consumer staples and technologies. and we like industrials that
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just turn into leadership group, plenty of double bottoms. consumer staples is not just defensive leadership. finally, technology, yes, it took it on the chin today but guess what? bigger picture secular bull market there. >> steve, thanks. >> great job recovering. once you get lost on that thing -- what i love about what steve did is gave you different time frames and set up the long-term picture which you can debate or not but reasonably convincing to me, but that talking about where we're going to be and i believe we are sideways to possibly down and he's talking about some seasonal factors but i mean, again, you got the fed meeting and a lot of things the market is not really pricing in after an earnings period where they aren't so great. to be defensive not a bad thing. >> all right. still ahead tomorrow another huge day for earnings with exxon and chevron on deck. bets on those names today and
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details when we come back and meg terrell monitoring the gilead call. on the blue phone. no red phone. red phone for tech, blue phone for meg terrell. what are you
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we are back on "fast money." meg terrell is listening to the call. meg? >> the call did just wrap and disappointing quarter for gilead missing on the top and bottom lines on the hepatitis c number. that was the main tphoto cut of the questions. turns out they were treating more patients but giving bigger discounts. good story. more people getting treatment at lower cost but that did lead to a decline in the overall hepatitis c numbers. patients were getting treated for a shorter amount of time. that's good from a medical perspective. gilead says there are 3 million patients left untreated in the united states, half are undiagnosed is trying to layout there is a lot of opportunity
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for them in hepatitis c and of course, gilead has a pile of money to spend. $21 billion as of the end of the first quarter. so a lot of questions what they will do and mark of ever core asking would they go hostile. an interesting question in light of the effort to buy. where would they look to buy, cancer, hepatitis b, these are all areas and got an open mind. a lot of people waiting to see. >> meg, it's karen. do you see this pressure at gilead, which i do like as indicative of industry-wide issues or specific to them? >> pressure on the drug pricing? >> yeah. >> i think it's absolutely industry wide. you see it with the hearing yesterday. gilead in someways was a main focal point because of the pricing but more much egregious
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actors but something that is definitely affecting everyone. >> meg, thanks. sticking with earnings, two big oil majors report tomorrow morning. traders expecting big moves, as well. mike is breaking it down at the smart board. >> conaco announced today, exxon and chevron don't move much. typically a little over 1% but expecting a move of 2.4% tomorrow when they report. basically what that will translate into is about a $9 billion move for exxon and half billion-dollar move for chevron. both expecting to see significant results when we look at conaco's results, their average was down 30% and expect the same for these two. >> for more, check out the full show tomorrow evening 5:30 p.m. eastern one place here on cnbc plus a final look at amazon and the traders tell you what they are watching tomorrow right after the break, for "fast" when
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we come back. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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time for the final trade. the highs of the after hours session. gene, how does this set up tomorrow? >> i think it keeps going higher. great secular theme. no competition and they will take over your wallet over the next decade. >> up 13%. we'll see how it shakes up in the morning. gene, thanks so much. let's go around the horn and wrap it up. tim -- >> trading a billion-dollar dollars a stock with the $5 or $500. the same. brazil, tsu the adr play very good way to play brazil. >> a moment of reckoning is coming and carl icahn selling out of apple and amazon blowing doors off after hours after facebook did the same. how does that set up the trade tomorrow? >> i felt like we were totally range but a lot of granularity which is healthy there will be a shakeout in the next couple days, weeks. i think you stay invested in the stocks that you truly believe in. final trade, dupont.
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>> karen finerman? >> i like steve's three-day rule. it's been about five days. google sold off a lot. >> danny? >> amazon take profits. [ laughter ] >> guys, thanks for having me again. good fun. "fast money" again tomorrow, "mad money" with jim cramer begins right now. my mission is simple. i'm here to make money. there is 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. call me at 1-800743-cnbc or tweet me apt jim cramer. we had a pretty decent session until about two clock. when when c

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