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tv   Fast Money  CNBC  May 15, 2018 5:00pm-6:00pm EDT

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dow today about 1.5% to downside after its miss this morning which they did site weather. we'll see if macy's, jcpenney, nordstrom have more to say about that we also get cisco tomorrow. >> it's been a great stock it's usually not a broad market more b mover >> thanks for tuning in "fast money" begins right now. "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders are pete najarian, tim seymour, dan nathan and guy adami. it is a bitcoin cash takeover. the cryptocurrency is the best performing coin in the last month, and the prophet himself, roger ver, aka bitcoin jesus is back with a new prophesy that could sent the cryptocurrency universe reeling he will talk to us exclusively deal wit but first we start off with what we are calling the three prongs of pang cue the scary music. the market selling off as
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pressure increases from rising rates, a strong other dollar and oil prices on the rise could these three major headwinds lead us down the river to selling hell again, like you saw earlier in the year? we're overdramatizing a little bit, guy but you get what we mean you get what we mean here. >> i get your drift. >> we're looking for causality a reasonable why the market was down 7/10 of 1% in terms of the s&p 500. i get it i could make a bullish argument for all three. higher rates should do well for the officials. pete and tim talk than all the time stronger tower stands that maybe the consumer will do well. and higher oil means the economy theoretically is doing better. all of these three things in that pastiche could be viewed as a positive i'm not going to get crazy the market was up eight days in a row. probably a reason for the s&p to sell off close off the tloens date. not a big deal i do think if this yield curve
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continues to flatten, i'll get concerned. all the things we talked about the three prongs of what >> pain. >> what's your dogma, dan? >> let me give you three prongs right here. >> or your pastiche. >> we have a 20-year chart of a ten-year treasury. the high of year 2000 was about 7% and then you draw a line and you take to it the high in 2007 it's about 5.25. you take that line to where with we are right now what did we close, 307 that's a beautiful downtrend what happened in each of the other two trends the equity market topped out i'm just saying. >> where is this trend going is it still going lower? >> what's your pastiche? >> in the ten-year yield over the last year and a half it's more than doubled, right? i'm just telling you, if you look at this 30-year historical downtrend in yields and look at the relative stops we've seen that actually coincide with tops in the equity market. >> this is "fast money" so i'm not going to talk about 15 or the last 15 years now.
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dan brings up a good point i will say the move today in the ten-year is reminiscent of the big move we had onfebruary 5th which was essentially taking the markets into a very negative tailspin and if you want to look again, the chartists who i think really technicians i think are largely in charge right now. you can look at this s&p failure where we did today, holding the 100, but ultimately again, you've got another downtrend line that i think still needs to be proven. so the dollar strength, i think people are making a bigger deal about this than they should. i think on relative terms, the dollar is back to where it was in december. a lot of people want to talk this is going to the next big move in the dxy, which is what we had in 2014 and '15 remember this, though. the dollar's moves in some cases are preserving a sense of what the fed is going to do that is exactly what the dollar did in 2014-'15. if you think this is a move that the fed is going to get ahead of its skis, that's why markets -- >> you can see the pastiche that guy had laid out, though the dollar move is not as big as you think, that oil is moving up
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because of supply, geopolitical and also seasonal effects, right, in terms of gasoline prices and interest rates are telegraphing what the fed is going to do, not necessarily the fed is going to step out over its skis it depends on what your dogma is. >> guy started this. we have to live within guy's dogma and pastiche. >> this is getting out of hand what is your dog in the market do you say we're fine here >> my view is the markets are in a difficult period for digesting this next move higher. this was a substantial move higher in rates. i do think if the markets if anything are range-bound and have a move to the downside coming. >> it's always about the velocity in the ten-year to guy's point, we're down/10 of a percent today. and we've been up, up, up over the previous trading session. >> eight >> i don't think this is a reason to suddenly day -- that's not what you said. i don't think that's a reason to say you know what? we've topped out >> i actually believe we will be
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in the range that we're all talking about. >> and i think we are in that range. >> let me add one thing, though, why i think that range may get tighter and tighter and we may stay between say 2800 and 2500 for the balance of the year. look at what happened off of the lows yeah, the s&p rallied 8% we've seen the prior leaders we saw amazon, we saw facebook, apple. facebook hasn't made a new high, but amazon and apple did and where is the s&p 500 it really can't make any traction, even after eight days up in a row. it's still down 5.5% from the january highs. so i just think that's -- >> we have had rotation, but it's technology names that have led. no one will ever deny that but don't you appreciate the fact that you're seeing energy, maybe even the financials starting to move >> it's small. let me tell you something. >> i understand everybody's argument is energy's movement is too small. >> what happened when the dollar really started to get going? crude got killed it got cut in half >> the equity names -- >> back at 100 where do you think crude is going to be? >> and i don't think the dxy is
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getting there. i think there is heavy resistance to this let's not turn this into a macro show bottom line, regional banks do very well in this environment. the strange thing what is going for banks, i think they do well until they don't ultimately, especially in the case of regionals, you can't tell me that there is not a credit event or a sensitivity, especially on the household level. i believe that and i think ultimately what's happening while it's good because it means the economy is in a better place. and right now it's great for the banks. >> the fed is going to go off of data and going back for this for one more second, if energy flattens out, oil flattens out, there is still plenty of room for the big name that did actually lag. but the fact that they lagged as much as they did, we're finally seeing the move out of the exxons of the world from 77 back up into the 80s. i still think there is plenty of runway despite oil doesn't have to go to it. >> off the last month, where has the leadership been? it's been energy and a handful of very narrow group of
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technology and the brought market. >> i disagree on the narrow market i think we've had a broad group of technology, including some of the chip names as well >>, 8% from the highs it made earlier in the year. >> that was 16%. >> the smh, if anything led this last seven or eight-day rally. i'm not saying necessarily we're back to where we were. >> we're taking one step forward two, steps back. i agree that i think the market -- there is a lot of pain below the surface. the indices have looked recoverily fine, especially when you consider where we came from. look at some of the consumer names. they're down 20%, and they haven't regionally bounced. >> the banks get out of their own way right now. i don't see a lot of leadership. >> a day ago we had citi over 73 we had bank of america well over 31 we had jpmorgan screaming to the upside, pushing towards 120. i don't agree with that and goldman sachs actually finally started to move back um to the upswing. >> what does it tell you that
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the leadership stocks are always the first ones to sell off it's a bank stocks today the rates are since 2011 highs on the ten-year yield. what does that say about the market we are in >> i agree with dan on this and i think what dan is saying is the bank stocks are the ones that have led us over the last two weeks. >> they have. >> and think about the times that we've been most concerned about the markets where the markets have done okay, but it's been a very narrow move by a handful of mega, mega cap stocks and not a lot else >> the yankees are playing .700 baseball, 28-12, off to an amazing start. but where is the leadership on the team the yankees are still the best team in baseball the point is -- you hear the little ding ding ding? >> you saw them against the a's over the weekend. >> show leadership. >> most people don't care about the yankees. >> i just needed to make an
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example. >> you don't need leadership from your big guns all the time. >> that's all we had that's all we've had that's the point >> okay. now we don't visit, though. >> look at where your big leaders are, okay. >> so here is the question >> done that for stanton. >> in this market environment where we are range-bound, where the leadership primarily has been from mega cap stocks, where do you invest? in the cap stocks knowing that the next pullback is going to happen, taking mega stocks down more than the rest of the market >> i would give you a name, today there were two names i added -- i didn't add. i added to bank of america which i already own and i think the financials are going to take the next leg up. but the other name is disney it's a name that has been wallowing around there are names out there that i think we would all consider to be fairly large. they're either dow components or somewhere very close in that top 100. >> that's a value play and a turnaround play. it's not leadership. it's trading at $102 and down from 122 three years ago it's a value play.
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>> okay. >> better be patient. >> i asked the question, what do you buy? our next guest has some ideas. he says there are three stocks to buy on the dip right now. let's go off the charts with robert sluymer hi, rob. >> adding some jitter. we just talked about or heard about a lot of leadership starting to roll over there has been a lot of chop and in fact the way we look at it, this is an intermediate term correction they tend to last one to two quarters the market is working through it and slowly progressively coming out of it. well look at the russell 2000 here, it's been in the trading range for most of the quarter and starting to challenge the upper end of the trading range so from a very short-term standpoint, it's not unusual to see some of the leaders pull back the russell at 1600 there is a lot of resistance there it starts to pull back. but when you look underneath the surface of the s&p 500, you advance the decline line, it is starting to break out to
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all-time highs it's unusual to see a market start a major downturn with the s&p 500 being at all-time new highs. i think the set up is pretty constructive longer term through 2018 we have a problem. but right now thing is a normal short-term pullback. when you look at a lot of the secular leaders, they've had a big, big run it's not surprising to me that they start to pull back. but some of the laggards are interesting as well. bank of america, sideways for most of the first quarter into the second quarter coming right off its 200-day moving average not dissimilar to what it did back in '16. that's a pretty attractive setup. that's a full four to five-month correction you're just starting to see a turn still an interesting they still viable in my opinion. i still think you see new highs in the name before the cycle is done and fed ex is another name it's not an extended secular leader it's not way up there. it's sitting right at the 200 day. it's had a little bounce, pulling back relative strength is trying to make the corner. i think that's a timely name from a long-time standpoint as
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well and lastly, doing a little dumpster diving, this is under armour i'm sure we'll have comments from this from the desk. but if you look at that pourple 40-week moving average, a weekly chart going back to 2009, this has been in a pretty extended bear market now for years, and it's just starting to come out of that trading range. it has had a big run in the last couple of days but this little trading range is actually 15 to 18 bucks. i think the stock can see $21. that's another 20% from where we are. i think it's an attractive long-term candidate that does not look like the market is not overbought, not overon the other hand i think it's timely here >> all right so some interesting stocks from rob. should we invite him over? >> absolutely. >> come on over, rob ryan will bring the chair in. >> great to see you, brother. >> thank you, ryan so rob, i noticed on all three of those chart, the stocks that you said to buy you have relative to the s&p 500 in this stock price mirrors the relative strength that's what you want the see you don't want to see relative
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strength to be negative or weaker than the s&p 500 and then fill the gap in. >> i believe so. i think relative strength often, it doesn't always, but it often leads. what i like to look for is divergences where price may be making a low and strength leading to the upside confirming what we see in price i think it's healthy action. >> i understand this is a technical call on under armour but my pushback would be fundamentally under armour had a huge bounce off the lows a few months ago that's a pretty significant move my sense most of the shorts have gotten squeezed. and then you look at it, where is the growth? and does it still deserve to be trading at 45 times next year's numbers? i would say no i'm more in the camp that maybe this lasts another couple of days but i'd rather fade under armour than make a break out. dan snaking a face at me. >> he always does. >> it's really only going to move if something fundamental russell. that's one of the first charts what do you think? it got rejected at that level.
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two prior times it kind of paused is that the first major index that is going to break out >> i think it is we've had a multimonth, multiquarter consolidation in so many stocks. russell's leading helped by the dollar tim has pointed that out many times. 94, pretty heavy resistance on the dxy. i think it's heading higher. and this little pullback, i would be surprised if you got halfway down the range breadth is pretty decent. >> rob, good see you thank you. >> thank you. >> rob sluymer you dabbled in the russell >> i threw a little out yesterday and i still feel okay with that. it's a very tactical active trade. i think the things that also work are high-end luxury even a sotheby's, a high end form the market hell to crypto heaven bitcoin jesus is back, and he'll tell us why he thinks wall street is going to go crazy for bitcoin cash plus heavyweights are piling into one group of stocks we'll tell you what they are and
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if you should follow the smart money. and pete najarian says there is one name he is so excited to pitch, he can barely help himself. >> hey, now. >> we're live from new york city where the skies are darkening. we're awaiting a major storm look at that much more "fast money" 56 this. much more "fast money" 56 this. >> it could be bitcoin who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.
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money. we have a news alert on some of the largest hedge fund heavyweights making big moves. let's get to leslie picker in the newsroom. >> the filing day is here. the hedge funds add and took new positions in technology during the first quarter, but selectively. so if you recall the sector experienced some significant volatility during the quarter. it's clear that hedge funds really sorted through those and picked their winners and their losers facebook did get some attention with tiger. >> third point green light all adding to their positions. same with alphabet with tiger management, duquesne, all increasing their stakes there and amazon with more and duquesne putting money to work in the ecommerce giant apple a mixed bag. all slash their stakes or sold out. but berkshire hathaway of course remains a believer, as warren buffett mentioned on cnbc. johna also took a new small position in apple. outside of the fangs also saw
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some interesting moves twitter saw a move from management and tiger global which each took new stakes in that one however, green light reduced its stake in twitter and now a few well-known hedge funds took positions in dropbox which consequent public during the kwoert sorrows and tiger quarter to maim a few the rally in energy took place largely after the quarter ended. but before that we actually saw some hedge funds cut their exposure to energy not the best timing there. stan druckenmiller's duquesne solved its stakes in apache, eog resources and marathon oil keep in mind these are as of the end of the third quarter and may have changed since then. melissa? >> all right, leslie leslie picker in the newsroom with the latest on the 13-f filings that we've gotten so far. you know what stock is really moving in the after hours based on a revelation from the filing? teva pharmaceuticals warren buffett doubled his stake to $700 million. >> 115 -- i think he increased
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the stake by 115%, more than doubled. sal bear is the chairman and they hired a new ceo in the fall probably -- well, one of the best generic companies out there. very reasonable valuation, and a significant short interest so this is -- this is interesting that mr. buffet gets in a name like this. we talked about this before. this is one that i would follow the oracle in after. >> and the oracle has been pretty right on for the most part when we've seen some of the huge buys that he's made we know for the most part he is going to hold on to them we talked about it on the closing bell, how he bought eight million more shares of micron i thought that was interesting i was concerned he was going the start dumping it also mgm he added to that as well. >> he might have already >> maybe, maybe. obviously it's in that three month. but it's still pretty interesting to see some of the big numbers. wells fargo is another place
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>> i don't think you chase a 13-f, he will point out a lot of these guys are much faster traders than warren buffett. and when warren makes that move, he is still in that positions. >> coming up, media moelgg tom rogers is going all in on sports gambling he'll be here to explain why his newest company is ahead of the betting curve, and check out the weather outside. starting to rain pretty hard out there as we expect the thunderstorm to pick up in the next hour. look at that i'm melissa lee. you're watching "fast money" on cnbc first in business and worldwide. in the meantime, here is more of what is coming up on "fast." >> so we go. let's go >> here we go. >> yeah, could be the future of sports as legalized gambling nears a reality. but we'll head out to vegas to tell you who the winners and losers could be. plus, as hoedlers descend on manhattan, bitcoin jesus, aka
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roger ver makes his return to "fast money" to tell us why the bitcoin software upgrade could change the crypto rlwod forever. bitcoin jesus speaks when "fast money" returns
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wow. >> you know, they said it was going to rain earlier. but it's really coming down cats and dogs right now you can see you know i don't know i don't know why you ask the doors. >> hey >> the doors >> that was so quick >> i know. >> amazing thank you, max, max myers. we have a bitcoin alert here the largest blockchain conference of the year happening right now in new york city our own brian kelly is there reporting for us on the ground check it out >> hey, all, it's bk i'm here at consensus blockchain week in new york city. look at this 8500 people around me. this place is insane you want to see an emerging class look likes
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this is what it. this is the is where it's at you're not paying attention. i was on a panel today with some of the biggest traders of bitcoin in the world they're getting ready securities that's the new thing that's coming out custody. that's coming. they already talked about nyse and i.c.e. mora today announced that's coming out i think there will probably publicly be other announcements in the next few days there is a mix of hoodies, guys like me in sports jackets this is a fun asset collapsed. glad you guys could join me. talk to you later. >> thanks for that, bk. >> it would have been nice if people could have been quiet when bk was talking. >> 8,000 people there. >> excited he looked really excited. >> it is exciting. >> he is talking about custodians talking institutional. i don't know if you saw that coin base announcement basically prime brokerage services for institutional customers today. they're going after that in a big way. when you think about last year when they hit some number of user accounts all retail more than schwab or something like
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that they're obviously set their sights on bigger things, you know >> they're kind of the king maker right now. it's pretty amazing. they're obviously the ones that people are waiting for to anoint the next currency to follow. >> yep. >> and in this case to the extent they can actually put institutions in the trade, that is what everybody wants to see. >> con census isn't the only thing happening in the bitcoin world. the software update sending it lower by more than 8.5%. but still the best performing large cap coin over the past month. what will it mean for the crypto going forward? who better to ask than roger ver joins us from bangkok where he is at, of course, a bitcoin conference roger, great to you back. >> hello, everyone thank you for having me again. >> explain to us what exactly will happen with this update and why do you think the coin traded lower into the update? >> i think it's good to call it an update rather than a fork, because there was no fork. it was simply an update to make room for even more people around the world to be able to use
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bitcoin cash as money and in commerce for the world that's what actually gives it its underlying value is we can use it in commerce to pay for things where a lot of the other tokens out there have turned into speculative assets that don't have act bitcoin is being used as money for the entire world just last night we were at the bitcoin center thailand where you can literally pay in bitcoin cash for your meal and coffee. it's really, really popular here in thailand. tomorrow my flight to hong kong to the conference put on by calvin ayre who is all in on bitcoin cash as well he realizes it has usefulness as money to the world that's what we're busy building. the entire point of the upgrade was to make room for the entire world to be able to use bitcoin cash as money. right now bitcoin has somewhere around the ballpark of 30 times the transactional capacity of bitcoin core
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if you're a business looking to build a infrastructure on a cryptocurrency, bitcoin cash looks like the best choice because it has room for you and all your friends to come on board. >> when you compare the transaction speeds, bitcoin cash is clearly built for transactions but at this point the liquidity is in the other crypto currencies a lot of platforms are being built out in emerging markets, for instance, base odd bitcoin because they want to go where the cryptocurrency that has liquidity. at what point, roger, do you say you know what? in order for bitcoin cash to really catch on, it's got to have a critical mass in terms of liquidity and market cap . >> well, remember that the bitcoin cash market cap and price today is more than what bitcoin cores was one single year ago back when there was only one bitcoin at this point they split into bitcoin core and cash on august 1 of last year. so the fact that bitcoin cash had the bigger market cap than
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bitcoin did just a year ago, that's a bullish sign. you have just about the same amount of merchant options all the big boys like coin bases and bit poi also have full support for bitcoin cash and bitcoin core and all the new information is taking place on bitcoin cash it's no longer taking place on top of bitcoin core. that's why you see all the new businesses building their product on top of bitcoin cash just linebacker myself, we're building all of our new infrastructure and all the focus is on building on top of bitcoin cash where cored a this point, sadly, it's slowed, it's unreliable and it's that by intentional design of the core developers that managed to fork the economy code of the project and take it in a completely different direction that the path it was on that eventually made into it this worldwide phenomenon and success that it is today so if you changes the economic code, you're going to change the economic outcome that's what they've done with bitcoin core and the economic path that bitcoin cash is on is the one that led to bitcoin's
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original success so that's why i'm incredibly bullish on bitcoin cash. i'm bitcoin back in 2011 when i became the first investor in the world to invest in this. >> roger, it seems like bitcoin core, the these success is that store value. you're making a pretty strong case that you want to use this as a currency. that's not something people are talking would be core. what is the inflection point where we're going to start seeing this? you talked about people are using it in bangkok to buy coffee what are we going to see it in the united states? that's something that could cause u.s. investors to start thinking about it the way you're thinking about it? >> it's already happening. so coin base is already accepting bitcoin cash for payments across the platform you can already buy bitcoin cash in your account. you can spend bitcoin cash with any merchant it's already happening all over the world. and when you look at all these people that are busy trading digital assets or traditional
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stocks the reason people trade traditional stocks is these are companies producing a product and hope political they have dividends some day when people say bitcoin core should only be used as a store value, what is it that you're storing if it's not anything that it can actually do. whereby bitcoin cash you can spend anywhere as cash like people use the u.s. dollars. if i don't take away the spendability of bitcoin core, you destroy the value as well. >> in terms of wall street's acceptance of bitcoin cash, how is that to your thesis that it may some day surpass bitcoin core in market cap are you looking forward to the day, do you think if boerne cash futures were traded it would help with acceptance, steps like that >> of course >> are you lobbying? is there a way to lobby for that are you doing that yourself? >> i'm sure there are lots of people lobbying it
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we saw the exchange launch full support for bitcoin cash on their exchange as well it's happening fast and furious around the world bitcoin cash adoption is happening. despite all the name-calling and vitriol that's happening on the internet, bitcoin cash works as money. bitcoin core sadly no longer does i received my very first bitcoin ever from what's called a bitcoin faucet which is just a website that gives out a little bit of bitcoin who anybody who wants it that's no longer possible on bitcoin core but anyone in the world who goes to free.bitcoin.com will get about 15 cents that's possible on bitcoin cash today. i invite people to give it a try and it will be clear to them which one is and which one is not. >> where will bitcoin cash be in a year will where will bitcoin be a in a year >> i think both of them will be
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higher than where they are now but i think bitcoin cash will have much more significant gain than bitcoin core. >> you want to give us a number? >> i think bitcoin cash will double by the end of the year. i think bitcoin core will maybe be up another 10, 20, 30%. that's just a guess, oklahoma ovr obviously. great to speak with you. roger ver. one of the first investors in bitcoin core he bought it at $1 a dollar bitcoin. >> maybe bitcoin bud dadha. he is saying a couple of things important. basically, speculative assets with no ability yet i think it's going higher to be clear, he said bitcoin cash has utility, but he doesn't think bitcoin core does. and really gets down to why are people trading cryptocurrencies? we had this discussion yesterday. because they're opaque and volatile it's not because their store of value.
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still ahead, former tivo ceo tom rogers is behind an app that could get a huge boost from legalized sports gambling. he'll be here to explain plus pete is going to bring the heat getting ready to pitch the one that could bring a little value to your portfolio. that's the hint. the name when "fast money" returns. need a change of scenery? the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck.
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but we have to do it the right way. we have a working knowledge and we can reduce the impacts of a small disaster, but we need the help of experts. pg&e is an integral part of our emergency response team. they are the industry expert with utilities. whether it is a gas leak or a wire down, just having someone there that deals with this every day is pretty comforting. we each bring something to the table that is unique and that is a specialty. with all of us working together we can keep all these emergencies small. and the fact that we can bring it together and effectively work together is pretty special. they bring their knowledge, their tools and equipment and the proficiency to get the job done. and the whole time i have been in the fire service, pg&e's been there, too. whatever we need whenever we need it. i do count on pg&e to keep our firefighters safe. that's why we ask for their help. welcome back to "fast money. time for an instant replay back in july pete said there was
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a big box breakout ahead >> we've had three straight years of sales growth. oh, by the way, their online growth 20% annually. and when you really look at what they're doing in the margin area as well, that's expanding. so they're winning there as well this is a company i want to own. i like this company. like what they're doing. >> it was good call. best buy shares up 35% since then i think pete was wearing the same tie. >> is that the same tie? he's got a lot of ties like this. >> you got to give him a break pete a color-blind i'm not making fun of his affliction he just happens to be. >> i'm just stating an observation. >> you just threw me under the bus. >> it's a great tie. you can still wear it as much as you want. >> wear it every day it looks fantastic >> best buy, still like it and they're taking it to amazon. they're bringing it right at them and it's a great minnesota solid company. >> of course, minnesota, the common theme here. since pete hit it out of the park with best buy, why don't you give us another home run
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idea, pete >> all right so i got an idea coming at you today. it's a stock that dan brought up i talked about the fact that i bought this actually today, disney and it's interesting because i love the management. bob iger is the man. did he make mistakes along the way? absolutely was he slow to get to streaming? absolutely but they did finally make the deal that's going to come into play in the not too distant future. it's going to at least position them in the streaming world. growth across the parks and studios. a lot of people discount the idea that the parks hotels, they're able to actually show that kind of growth. the growth there has been very impressive they're killing it in the studios. but everybody always wants to talk about espn, right well, what about the idea that potentially with what we've seen over the last couple of days and what's potential for the future that espn maybe gets a nice little boost off of this because of the gambling and that whole idea of how those are going to mesh together.
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i think it's going to be something that's going to actually propel espn and maybe add to the viewership, the ott, all of that. i think when you look at the fundamental story, and if we want to clear that, we'll get to the chart, the fundamental story is this. they buy back their shares, great dividend cash flows all the time. thing is a company that you can see the lack of performance. i think performance is in the future i bought the stock today and i will be selling calls against this every month, creating a little bit of added dividend to what i see here. i don't think it's going to explode higher i think the stock will go higher >> tim has a question, i think >> pete, when you look at disney, do you do it on an apples to apples basis against the other media companies? you just pointed out their consumer products business and what goes on at parks which i believe gets them a better multiple you tell me what you think. >> yes, i do agree, tim. i do not compare that to most of the other media companies because of that. they're far more diverse disney is kind of in their own
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area actually. i love what they're doing. in shanghai, i didn't even bring that up. but that's one more area where i see the fuel that actually gets the stock going. >> quickly over here nice to see you. >> good to see you. >> is there a concern perhaps they would overpay for the fox assets >> i don't think so. i don't think they're going to get into a war, guy. that's always a potential possibility obviously. but i don't think that's going to happen. hopefully that doesn't happen. i think bob iger, again, he is the guy. when we talk about media stocks, is there anybody we think is better right now i don't think so because of that, i don't think he will overpay. >> all right let's vote tim? >> look, i agree with what pete has to say i think it's a great company all around they're cable business partially an issue but i put the mouseketeer ears on my ponytail front that's what i did. >> what do you say >> look how creative i am? i'm also a buyer but i actually think this gambling thing could be really interesting. especially at a time where espn is really setting their sites. they just launched espn go this could cause a lot of
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engagement for that app that they need to work. >> guy >> look at what i wrote them. >> what does that mean i don't know -- how does that translate to buy or sell >> i just jump on that >> i'd say that's a buy. >> this gambling, this could be the buoy, the life preserver, the vest whatever you want to say for espn >> really? >> that comment about his tie. >> no. the tie very georgetown university. >> buys all around on the desk but do you out there pete's switch for disney has the magic touch? vote in our twitter poll at cnbc "fast money. we have the results layers on. plus, legal sports betting getting one step closer to reality this week. contessa brewer is in vegas weighing in on the move. >> i've got a big interview with the ceo here we'll talk about the potential upsides and the potential downsides, and also, i'm going to try to work in a reference by kenny rogers "the gambler" still ahead on "fast money."
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you're watching cnbc, first in business worldwide. welcome back to "fast money. casino stocks mixed on the day as investor digest the big winners and losers in the sports betting ruling our contessa brewer live in las vegas with the latest details. hi, contessa. >> hi, melissa
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merrill lynch predicts the revenues from gross gaming from -- sports wagering will skyrocket. right now $200 million or so they think in five years, it could be as much as 10 billion bucks. look for the game makers these equipment manufacturers, scientific games, international gaming technology to benefit in fact, argus research tells me they think igt alone will see $100 million boost in ebitda alone. the regional casino, penn and boyd, they operate casinos in the midwest and in the south could see a big boost. the big guy, mgm and caesars are ready to roll in new jersey, and then in mississippi, which could have sports gambling legal by the end of june. and i talked with ceo mark frissora at caesar's about the upside and the downside. >> we're excited because we think we're in the best position to take advantage of it. we have been very focused on digital and mobile as platforms that we want to incorporate in our business model
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and this plays right into that. >> are you concerned at all about some of the negatives that come up, that the potential for game fixing will increase, that gambling addiction could be more widespread than it currently is? >> we actually think those issues will be more resolved because what happens today, it's an illegal market, and people are -- it's not monitored properly and there is an awful lot of stuff that guess on that will not go on in i what a legalized environment. we actually think it will clean up the game and clean up sports betting. >> and look, he is looking at more than a dozen states with some kind of legislation already in the works but they're also factoring in, all these companies what are the regulatory hurdles what could the taxes be? what could be the return on investment in these cases? all factors in what they see as revenue at the end let's face it. in gambling, you never "count your money when you're sitting at the table". >> there it is. >> wow
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>> strong. >> very nice hidden talent. >> keep going. >> go, contessa! very impressive. >> keep going. >> i was waiting -- >> or was it that you just want me to walk away! >> drop the mic. >> that's fantastic. >> thank you, contessa, that was amazing. contessa brewer live from las vegas. joining us now is former tivo ceo and former nbc executive vice president tom rogers, currently executive chairman at win view games and a cnbc contributor. tom, welcome to the show. >> thanks for having me. >> how do you break down the winners now that we've had more than 24 hours to think about this ruling and the impact >> well, first, i'm no relation to kenny rogers, and i can't sing but winview games is going to sing in this environment, i promise you. how do i break down the winners? well, i think as pete mentioned, as guy mentioned yesterday, the tv thing is not just going to be a boost. the tv thing is going to be
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huge this merrill lynch estimate, $10 billion? europe right now where gaming like this has been legal for a long time, where people are playing along on their mobile phones while they watch television, 65 million people a year over there doing it the size of the industry, just that sector, $160 billion of consumer money running through that so this is enormous. it is going to change the television experience in sports because it makes it so much more exciting the tv ecosystem will be big winners. the leagues more than anybody. >> right >> and tim said that yesterday the teams, the leagues they're going to be the big winners. >> some sort of integrity, maybe 1% of the winnings or so >> even if they don't get an integrity fee, there are going to be a lot of stakeholders fighting for every little piece of this. we haven't begun to see the regulatory fights that are going to break out the leagues are going to be the big winners because their big money comes from television
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rights and television is going to be so boosted by what's going on here, they're going to be the ultimate beneficiaries. >> i understand the argument in interpretation of the tv viewing, but i don't understand how it will change consumer behavior this is behavior that consumers have really adapted to they don't bother watching these long games anymore they check in on their phone they look at clips that are the highlights they look at the scores. isn't that enough for betting? >> that's not the experience over there in europe, you're watching the soccer game. >> but did europe have that decline in sports viewership ratings and then get introduced to gambling and see the pickup in viewership? is it really a parallel example? >> well, they've been having this going on for a long time. and we've just been seeing sports ratings decline for the last couple of years so the sports industry over here needs this badly because ratings are down, cable subfees are down they're losing subscribers espn lost 15 million subscribers in the last couple of years. i don't disagree with your analysis at all that they're
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going to be a big boost from it, but they need a big boost from it and the change in television behavior has really been among younger audiences. >> right. >> and people don't sit through games for three hours the way they used to the game is not close. there are so many viewing options. people are out of there. what this has done is held people, even if the game is not good, what's going on in the living room in terms of people talking about what's going to happen next and putting money against it is going on we are already doing this. you're going to ask me how are we already doing this? what is winview doing now, now that the ruling has come out >> well, we've been into this for a while. and you say how can you do that? the rule just came out yesterday. and the answer is winview does this as a game of skill today. fan duel, draftkings a lot of people think isn't this already resolved well, it was determined they're games of skill winview is a game of skill meaning what
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you get 20, 25 questions over the course of a half hour of a quarter of a football game, a quarter of a basketball game you're testing your sports iq. it's kind of the equivalent of hq trivia. we do that as a game of skill today. it's very much totally linked to the siynchronization of what's going on in the broadcast. gambling would mean well, you don't have to do it as a game of skill. you can do it the way they do it in europe. a corner kick going to be headed into the goal? yes or no, 5 bucks. >> right. >> and that has a dynamic that has entranced millions of television viewers out there this is not just a gambling industry thing and a small thing for league, teams and the television industry, this is enormous for the television industry. >> tom, thank you so much for coming by. we appreciate it >> thank you for having me appreciate >> tom rogers. he compared to hq trivia. >> we love hq trif yankees, i love it's addictive. >> we're talking about engageme
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engagement things that keep you addicted. with are watching what people are tweeting about the game. this is going to be good for twitter too. i think the increased engagement, watching the tv, watching the sports, betting on it, i think you're going to see lease in that vertical that it's going to be good. >> you better bring your a game because i crush guy in sports trivia all the time on the commercials on this place. bottom line, i also think this is an overlay to e-sports too. if you look what is going on here, and this is effectively what winview can be doing. you have people playing along at home and actually have the games that people participating this the sports and betting on it >> all right still ahead, one trader is betting that one of the best performing dow stocks this year could be on the verge of a massive breakout we'll give you the name. live at the nasdaq market site in a stormy times square hope you got your umbrella out much more "fast money" right after this
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i tilled an acre of my property. >> welcome back to "fast money." the despite the market going off, one trader on a big break after one hot stock. dan is at the plaza to break it down >> thank you this is a stock that is outperforming the daw, consumer discretionary period up almost 11% on the year. call activity today was two times that of puts and it was just one trade that caught my eye when the stock was trading at 6920. the june 8th weekly 70 calls paying 96 centsfor those on june 8th on the close at 7096. not too far away from here
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and when you look at this chart real quickly, you're seeing bit of tension kind of building here that's 70 bucks. that's the breakout level here we've got a really nice wedge going here and i just want to kind of look at the next chart. this is a five-year chart. this thing has already been consolidating above those prior highs. so it's consolidating in this range. this company does not report earnings until probably the third week of june so this is not a play on that. i couldn't find any other identifiable catalyst between now and june 8th but this one is setting up as a nice breakout on any decent fundamental news. >> all right thanks for that, dan pour more "options action" check out 5:30 p.m. friday eastern time up next, the results from the twitter poll by the way, it's time. so vote. vote now we have the final in a minute. we have the final in a minute. >> we love tony. we have the final in a minute. >> we love tony. it's true. so all...
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♪ you and me together ♪ through the days and nights. ♪ i don't worry ♪ 'cause everything's ♪ gonna be all right. ♪ no one, no one, no one ♪ can get in the way ♪ of what i feel for you. well, it may be a small world after all, but pete is still having the time of his life. >> whoa! >> because america is buying his pitch for disney it was close, close, close 51-49. the closest margin on record >> pete gets more of these than anybody. >> finals trade time pete, what do you say? >> you know what home depot sold off after earnings giddyup. it was time to buy christmas in may >> tim seymour >> caesar's was a buy on a turnaround story before the news it's now more of a buy. >> dan >> i like his disney buy.
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>> guy >> be careful out there in the storm, people. >> yes. >> it's dangerous out there. put my vinyl trade up there. anadarkowe de , llonby the way. >> thanks for watchin 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 other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. where the dow plunged.

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