tv Fast Money CNBC March 11, 2019 5:00pm-6:00pm EDT
you will. >> phil, thank you very much for that 15 seconds left, mike, great day for the markets overall. >> we've got to see if there's some follow-through. we're back to where we were last tuesday, so no real harm in this its dip so far. >> thanks for joining us we look forward to your defense related interview tomorrow but that does it for "closing bell." "fast money" starts now. "fast money" starts right now. live from the nasdaq overlooking new york city, times square, i'm melissa lee. check out shares of boeing managing to pare some of the losses after a second deadly crash involving one particular model. we've got the details on that developing story. plus some of wall street's surging stocks are heating up. the nasdaq was up 2% today having its best day since january 30th look no further than the super
tech stocks, apple and facebook breaking out apple up double digits for the year outpacing the broader market nvidia sending all the semis soaring. the market has been fighting to get back to the highs. is it the tech stocks to the rescue have they been the missing link so far in this rally >> those are some impressive super heroes there if you want to look at apple as the culprit, you can make that argument i would argue that tech has had a meaningful part of 2019. but, no, it hasn't been some of the names. in fact apple is interesting because in fact it's been so left out of the party and because really i think sentiment in terms of the analyst community and investor community is very different. if you look at other parts of mega cap tech, alibaba has outperformed the s&p pie 20 percentage points. the qqq has been flat to the s&p. so have they been missing or are they defensive at a time when we're worried
about earnings and the quality or strength of earnings in a lower growth environment, big cap tech is the one place i think you are defensive. we've seen this at different times in this market. >> karen. >> i agree on a couple of fronts alphabet i think is up 13 or so, 14% for the year. >> but flat to the market. >> right not a big outperformer of the market i think that's where value and growth are still, up 14. that and facebook, which has its idiosyncratic issues if they get a settlement, i think that would be a big positive for me, of all of them i think that alphabet is the most appealing. i wouldn't be surprised if it is further on it is off a good 8% from its all-time high so still has a lot of room to catch up. >> i think they're all no-touch. >> all of the technology is no-touch >> it all hinges on the overall market if you think the overall market
is a no-touch, you can't buy the horse that got you here. i think we're all on the back of tech and i do not believe the worst is over. >> i think the market is going to churn until we reprice this slower global growth it hasn't repriced the slow joe global growth. i get it why apple and facebook are up that's the only place you're going to get the growth. that doesn't mean that the entire rally has to rally or can rally here. >> i have a question some people at home might be thinking, hmm, i could have sworn b.k. was wearing a bull suit for a long time. >> i have been, but for the last two weeks or so i've been much oar bearish. >> everything that got us nervous last week is not over this week. i think you had maybe innocuous news day you had a lot of things that were going right for the overall market
we had china falling off a cliff, the ecb saying there was no growth. now we saw that sell-off and this is just a rebound. >> one thing about the ecb having no growth is that has absolutely put the chill on the fed. there's no question. so to me that is a big put with the fed absolutely out of the picture. >> where is the strike price on that put >> is it out of the money put? probably some. but i think you have a trade call which is a call on the market. >> how much fed do we have left in thames of a market rally? patience is the words of a great guns n' roses song look, these guys to their credit i don't think are flip-flopping. i think they have been bearish for a long time. look, friday was ten straight days of cyclicality down you could make an argument today that technically you had every
one of these major indices, nasdaq back above the 200, s&p back above the 200, oil with a nice, solid rally today. you tell me. >> i think that it was so positioned to the extreme on the negative, let's just put it in perspective. it can't really be to the extreme because we had an incredible run right off the december lows. to tim's point, the pessimism got so entrenched we were due for this. >> for these particular technology markets that led the market there were idiosyncratic reasons as to why they went higher apple got an upgrade, facebook got an upgrade this helped bring up mega cap tech stocks and turned the overall market so if we are to believe that positioning got to us a certain place in time, could positioning be the reason why it's time for these stocks to actually because sentiment may finally be turning on some of these. >> on those particular stocks,
though, but that's it. you can still have this churn in the market >> if it does change -- >> go ahead and buy them, knock yourself out i don't think that these stocks in and of themselves are saying the entire market is safe. you get a rally in oil, you get a stronger dollar, any multi national is going to get hit you can still see apple go up because of idiosyncratic reasons. >> on a relative per value -- i won't get the typical snarky response thanks very much on facebook after a 35% move off the bottom but i don't think it's difficult to defend an upgrade, especially in an environment -- again, i don't want to go through those reports, but i will tell you that i think if you're looking for a place where big cap tech can overcome growth concerns, you just named two stocks that i think can do it. >> originally, though, when you
talk about positioning, it's not only positioning among your portfolio members, it's also positioning on the street. when you see these names rally back aggressively, you can't just sit idly by and weight. >> as an analyst covering -- okay >> so i think they're forced to do it. i think they're a little bit late. >> you think so? you think bank of america after downgrading the stock on december 2nd the to upgrade the stock on march 11th? >> why don't you look at the chart. where am i on a lot of different names. not that he doesn't have true beliefs in it, but the charts dictated a lot of their actions. >> i would think that every single analyst on the street would have to upgrade their coverage universe because of this rally because in november -- you didn't capture a lot of that by then. >> we've also seen this, and not to pick on analysts, but we've seen it with strategists too
they're in a tough position. what it takes is their job is to analyze the company. it takes a long time to get through the procedures within a firm to change a rating. it's not just like i wake up and say i missed 35%, i've got to put a buy on it. >> but the point is when you're stuck on the screen, you don't get the luxury of seeing a time stamp on it. a lot of times it will just say where is xyz bank on apple you go back and look oh, they're in neutral or, oh, they're a buy. >> interestingly on november 2nd when that downgrade was put into place, apple was actually higher than where it is right now so this analyst did sort of stick with it, the downturn. >> but the point is also strategists -- >> it capped totured the sentim. >> i think it's interesting to see an analyst get out and
reassess their ability maybe just question what's the multiple for this stock? what's the multiple for the stock relative to the multiple of the overall market in an environment where the fed is out of the picture. >> because that has definitely changed from november. >> that should change the multiple you put on the s&p. >> right but if they do granular good work on what makes this -- what the fundamentals are, i don't think they can be responsible for how the market euphoria -- >> sure, sure. but when i look back, it would have been important to hear that the fundamental story was a little more bullish from him in the starting days of january >> i always have this discussion with carter. does it matter what the earnings do the chart tells you entirely different. >> the chart usually has everything into that price so the price knows everything. that's why they say price is truth. all i'm saying is when apple stock looks like it's flatlined
for the last month and a half, it's an interesting spot where they want to upgrade the stock. >> my bottom line question is has sentiment turned on some of these individual stocks? for instance, in this upgrade of apple, and i don't want to belabor this apple upgrade, but part of it was, oh, do these higher priced foldable phones provide price support? so this had been a pain point to the apple story. facebook, that analyst said maybe regulations actually benefit an advantage for larger platforms like a facebook as opposed to the smaller platforms. so this concern that had been the overhang on the stock into the positive category. >> right it's a sentiment shift, it's one of those type of things. again, i don't think that these idiosyncratic segment shifts, little changes in the marketplace or maybe potentially big changes in the marketplace
necessarily translate over to the rest of the market i think we're talking about a couple of names here that everybody is in, don't get me wrong. everybody looks at and says if those are rallying, things are good they also buy them if they want to get growth and there's no growth elsewhere now an analyst is saying something changed. there's going to be growth that maybe wouldn't get elsewhere. >> well, our next guest says don't chase tech here. let's bring in dan suzuki. you would have said this on friday, right? it's not just after today and the pop we've had in technology. >> yeah, that's right. the most important thing we key on is the fact that growth is slowing. you were just talking about how tech is considered this high growth name. you've got to go there when there's nothing else actually if you look at the underlying data, one of the nerdiest reports i ever wrote at my prior firm is looking at how all the sectors and subsectors of the s&p, how their earnings are correlated with 150 macro
factors. tech earnings were more cyclical than any other sector, including when you look at manufacturing or industrials, it was more tied to the ism or more correlated to the ism. so if growth is slowing, that's going to hurt the cyclical stocks tech is one of the most cyclical stocks so if that's the case at rba, rather than buy the cyclicals, we think you should focus more on stable growth and quality so i think that's the place to concentrate. now, there are things to like about technology one of the concerns people have about the cycle is credit. but i think if their earnings start to roll over, which you've started to see signs of, that's going to be reflected in the stock. >> so there had been some argument that technology was somewhat defensive because of the cash on the balance sheet because companies still have to spend to increase productivity in an environment like this
because they pay dividends now at this point. in your view, though, what is the most defensive sector, if not technology >> i think right now the sectors that are defensive that we like the most are health care and staples. health care, if you look at the fundamentals, they are gaining momentum some would say health care is crowded, but i think the fact that valuations are good, fundamentals are very good, there's no other sector that has better beat percentages in the earnings than health care does so what you want from a stock is a stock or a sector that's going to beat expectations health care continues to do that staples is completely out of favor. if you look at fund positioning, that's pretty dloesclose to a lw but even going beyond sectors, i think the biggest theme that goes across our portfolios is higher quality so it doesn't have to be health
care and staples, but companies with strong balance sheets, stable earnings, that's the type of company i think you want to own. >> let me push back a little on the staples. when you talk about growth there versus growth in technology, that's got to be a substantially more subdued number at multiples that are maybe marketish multiples. >> i think that's a fair point but it's all about relative growth if you look at the growth of technology, which is way up here, it's starting to slow. staples growth is starting to grow i'd say those numbers are getting more attractive despite the fact from an absolute level technology's growth is better. i think a lot is priced in. >> the last time i spoke to you was the beginning of february and you liked china. do you still like china after the run that we've seen? >> i do. what we're looking at today, everybody was talking a couple of years ago about global synchronized growth.
we're in a global synchronized slowdown i think china is bucking the trends on all fronts we look at profits, liquidity and sentiment. i think sentiment from china is clearly improving but it's still at the epicenter around people's concerns around trade, global slowdown and credit. they're the only economy that's pumping liquidity into the economy. everyone is either slowing their easing or outright tightening. so they're bucking the trend from that perspective. and then from a stimulus perspective, they're clearly the ones that are accelerating their stimulus a lot of people don't realize that global growth is slowing and we have all these articles about global growth expectations are basically the lowest since the recession. a big driver of that is just that governments are spending less this year they had a big couple of spending years and they're easing off the gas pedal and i think that's the opposite of what china is doing
so i think that is very encouraging to us. clearly the data coming in on china is getting worse and worse. but the forward looking indicators, there's a lot of green chutes there from a risk/reward perspective it looks really attractive >> dan, good to see you, thank you for coming by. dan suzuki what do you like that dan said, or maybe nothing >> he's talking about tech in general and i agree with dan if we get a global slowdown, tech in general, not just facebook and apple, but you get a global slowdown, you get a stronger dollar that's going to hurt tech in general and that's why in general i am more bearish than i was two weeks ago i think we haven't priced in these problems yet and tech will be at the forefront of it. >> i look at big cap tech. dan makes great points i do think staples to me look really expensive
some of the names he mentioned are great. but colgate, procter & gamble, coke, pepsi, you name it, that's defensive. that's also really expensive here. still ahead, check out shares of boeing the stock getting slammed after a 737 max 8 maumgds odel is invi a second deadly crash. plus look at this mystery chart. shares are up 80%. we'll tell you what is shredding those shorts. and shares of harvest surging after a deal that makes it one of the largest multistate operators in the u.s the ceo will be here to explain why this could be the beginning of a buyout frenzy much more "fast money" right after this
at&t provides edge-to-edge intelligence, covering virtually every part of your healthcare business. so that if she has a heart problem & the staff needs to know, they will & they'll drop everything can you take a look at her vitals? & share the data with other specialists yeah, i'm looking at them now. & they'll drop everything hey. & take care of this baby yeah, that procedure seems right.
welcome back to "fast money. check out shares of boeing falling today after a deady plane crash, the second in six months involving its 737 max 8 plane. let's get to phil lebeau with the very latest on that developing story. >> any minute now we should be getting what's known as a continued air worthiness notification for international carriers, also known as canic.
it's the faa saying we may be investigating this and have concerns about this aircraft but we still deem it air worthy. airlines should continue flying it if they want to continue flying the 737 max-8 the black boxes with regard to the crash in ethiopia yesterday, they have been recovered now becomes the process of analyzing those black boxes. the faa and ntsb are both involved in this investigation meanwhile, there are airlines and countries that have said, you know what, we're going to grounding the 737 max-8 until we have more information. who's grounding it all the chinese flights. the country has said no flights today. the same thing for indonesia you've also gottet ethiopian airlines and com air out of south africa just a few said we're not going to fly the 737 max-8 while we figure out what's going on here in the united states, you've got two airlines that fly in aircraft.
let's start first off with southwest airlines there's a pattern here look at how the stock recovered as you went throughout the day southwest has 34 of the max-8s we hear the same thing from southwest. i talked to people at american today. they said the same thing, which is this aircraft is performing exactly as we expected it to perform. we don't see issues here and that's why we can take a look at shares of american finishing positive for the day finally take a look at shares of boeing it was down as much as 12% premarket and throughout the day it cut those losses. why? in part because you don't know for sure that this plane is going to be grounded by the faa. in fact this air worthiness notification shows it's not going to be grounded by the faa and also you've got this bag log. if you go back and look at boeing shares in 2018, remember the 787 battery fires? that stock got hammered when this came out, and peoplesaid oh, this is terrible news.
look at what the stock has done since then and look how the backlog has grown. not to say this isn't a serious situation for boeing, but this is not the end of the world that some people predicted early this morning or even last night when the first reports came out about this crash. >> what are the penalties, if there are any, phil, for cancelling a plane on order that's in the backlog? >> they work that out. the airlines negotiate that with boeing it does happen sometimes it happens because an airline reassesses their financials and say, look, when we first placed this order for 50 aircraft, we thought things would be much better with our business than they are as we look at where we are in the order book and when we're supposed to take delivery. then they negotiate that part of that is whether boeing has somebody else that can step in is there an aircraft leaser who will say, yeah, we'll take more of that aircraft it's a constant negotiation between the airlines, the leasing companies and boeing. >> phil lebeau joining us for
chicago. shares, again, paring their losses today grasso. >> so this was selling off before we even got this news today. it was off by about 6% the chart seemed like it ran out of momentum. i believe that once a deal gets done, this has been the poster child for the trade deal so it's been bullish going into it i believe once the deal is done, you sell it off. even throwing out everything that happened today, because i think there's overexaggerations to the downside just off this headline news. >> this is some devastating news flow for the company and for the world. until this is proven, as far as i'm concerned boeing is one of the best run companies in the world with one of the best balance sheets and best free cash flow generation you're down 16% off the top, which all things being equal i think is a gift. if you want to look at the 737, it's an important part of their fleet. there may be a little bit more here and i think that's something to think about
i will stay behind the view that i think poboeing is not as cyclical a company as you think and the trade war was a much, much overblown dynamic for their sales cycle. >> we have a midday call every day for "fast" and you were saying are there equivalent situations in terms of product safety recalls or other sorts of things, whether they be cars or drugs or something else. >> well, phil mentioned the dreamliner it didn't have this kind of impact, right? i don't know, i feel like the stock is just where it was just a couple of weeks ago without this and i sort of disagree with you a little bit i think it is inherently a cyclical business. so to have a completely noncyclical multiple, right, is, i think, expensive still so it is a great company, but i just -- before this, unrelated
to this, i just think it's expensive. >> i think if you're trading this for the trade war, then maybe you stay away from it for now until you get more information. if you have a view like tim does, that's great, stay in it but given this news, it's a no-touch all right, so we are just getting this from the faa. excuse me while i'm reading this the investigation has just begun and to date we have not been provided data to provide any conclusions or take any actions. the planes will continue to fly for now. for more on boeing's impact and its fall -- it's impact on the market, go to etf edge.cnbc.com. i'm melissa lee. here's what else is coming up on "fast. you're a fake and a phony and i wish i'd never laid eyes on you >> whoa! >> wall street's most hated stocks are surging we'll tell you the names that are shredding the shorts, and
which ones the traders are buying plus, a big pot deal setting the marijuana space on fire. it could be just the beginning of a takeout frenzy. elg ceo of the cannabis company fuinthe flames will be here to explain much more "fast money" after this es. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org
welcome back to "fast money. a hot trend taking hold of wall street as investors show some love to the most hated stauocks this year. let's get down to bob pisani with the details. >> hello, melissa. some high interest stocks are soaring here bed, bath and beyond, boston beer, snap, mattel, they're soaring this year.
short interest is the number of shares sold short divided by the shares outstanding it's often used as a quick and dirty way to see which stocks are most heavily shorted high short interest is typically an indication of bearish sentiment. anything above 20% very much on the high side. so when you see stocks that start moving up on relatively high short positions, that may be a sign of a short squeeze where the sellers are covering their short positions. typically because there is positive news events or maybe because sometimes the overall market experiences a big valuation spurt, which is exactly what happened in january and most of february snap, for example, is up more than 80% this year typically the higher the short interest ratio the bigger the potential for a short squeeze. they're all consumer names companies in the beer business, some in the movie business be careful here. you have to be very careful interpreting results with heavily shorted stocks there are plenty of weak companies that have rallied
because the market moved up and they get helped by short squeezes but then they fall apart again right after the rally. here's another thing to bear in mind these stocks all popped after their earnings announcements and shorts now seem to be betting that the rallies won't last. maybe, we'll see many traders use high, short interest as a contrarian indicator, betting if everyone is selling the stock, it's got a good chance of moving up you know this, being a short seller is a tough business. >> it certainly is. this feels like a great time to play -- >> what? >> trade it or fade it. >> snap is up 81%. grass or grasso, trade it or fade it. >> i'm going start off and say trade it we all know the negative headlines or the headwinds for snap i think this is all about positioning. no different than the overall market a little more extreme with this one. i think they're going to be able
to grow revenues ad space, they're selling it it's over a billion dollars they have made. >> let me get this out of the way, fade it for sure. and again i think it is because sentiment is so poor that you've had the snap in the stock. bob talked about shorts being de company is going to have $150 million loss of free cash flow versus $165 million. i don't see this company making money any time soon. we see stabilization in their growth matrix. they're not making money >> and they had an opportunity with facebook losing its mojo, having all this regulatory problems if facebook, as the analysts we talked about at the top of the show, are coming out of that, snap could be in trouble if they're focused on that. i'm a fader as well. >> next up, b.k., trading or fading boston beer >> well, as much as i like beer, i do have to fade this one it's not so much i have anything
bad to say against boston beer, but it's more of the market call on this. we've had a tremendous run-up in this name. the market has had a tremendous run-up i think this name gets hurt just like everything else if the market is going down which is my view at this point in time. >> i thought what was going on is maybe what was working in favor of boston beer >> but i was going to ask about the cannabis story is that a potential headwind >> beer is my department cannabis is tim. >> and bore is not department, i quit for 47 days but the bottom line is i think you've got a dynamic where you're seeing a slowing top line for all the major companies. this company had their day in the sun. i fade it. moving on, mattel, the toy maker, up 46% so far this year so, tim, trading or fading >> by the way, all the things i've said about these other companies that i've faded, people can throw right back at me on mattel
barbie, hot wheels, not so good. the guidance they gave knocked the stock down with misunderstanding about the multi year turn-around in this company. i think the comps right now with jurassic world and whatnot are really tough for them, but i trade it. >> i would be a fader of this one. and for the reasons that tim just talked about, the forecast. so if their guidance is overweighing whatever revenue or whatever sales they had in december that was favorable, the fact that they still survived after toys "r" us went out, i think you've got to go with what the writing on the wall is telling you. sell it. >> karen, bed, bath and beyond, trading or fading? >> i actually would trade it >> oh. >> yeah. i think maybe it's perhaps turned the reason that it's up so much this year is that it was down so much the year before, right? so it's a bounce back of a little bit of what they lost prior to that. i don't look at it as a really
huge outperformance. and just maybe things have turned people have said they were dead. we've seen the amazon effect not actually kill things we thought would be killed. like a foot locker, like the auto parts retailers so i mean i think there are signs of hope here the other thing it has going for it it they have some time in terms of their debt. there's nothing coming due shortly. >> i'm getting fewer 20% off coupons, myself. that's a good sign for the stock and bad sign for me. i'm just making an observation here. >> so, look, as far as i love scented candles and guy loves pro pre, i'm going to fade this one because i think they have an amazon problem. check out shares of stitch fix scoring 20% after hours. we will tell you more. plus harvest health and recreation soaring after the company made the biggest u.s. pot deal on record we'll hear from the ceo right after this break
after making the biggest u.s. pot deal to date the combined company will become one of the biggest multistate operators in the company for more on what this deal is signaling, harvest founder and ceo, steve white, joins us from phoenix. steve, great to see you again. >> likewise, good to see you. >> you're getting cultivation licenses, retail licenses. obviously your footprint gets a lot bigger can you speak to us about the land grab that's happening right now within the cannabis space, particularly before banking opens up to the entire industry? >> sure. we're -- obviously the industry is very fast growing we're in a phase that's referred to as a land grab for harvest. we plan on developing the largest retail footprint, the largest retail platform in the united states and with this acquisition i think we've done that. >> in terms of the advantage that you might have right now, though, and i know we've spoken
about this in the past, steve, for companies that have the ability to do transactions without any banking, this is really helpful right now in terms of you being able to go out before anybody else can have access to banking, to borrowing, to issue, et cetera. >> it's one of the reasons we went public was to allow us the ability to make acquisitions like the acquisition we announced this morning because woe don't have traditional debt financing that you would find if we have normalized banking in the cannabis industry. >> how much more deals do you have up your sleeve, steve i knew i'd finally get a chuckle out of you and a smile, steve. >> we have -- suffice is to say wee we have a lot of them. our m & a team is very active and we're going to do every deal that makes sense for harvest and harvest shareholders we think it's really important to grow faster than our competitors so we'll do everything we possibly can to
deliver on that. >> is this a race against time in some sense, steve >> at some sense it is we are at a unique point in time where there are a limited number of licenses available. there are a limited number of access points into the u.s. market so we want to accumulate as many of those access points as we possibly can to execute the strategy to ultimately roll out our brands across that retail footprint and across the nation. >> karen here has some questions about the structure of this announcement, steve. >> yeah, hi, mr. white in the announcement it said arm's-length transaction is there some overlap? it was very specific language. why do you have that phrase in there? >> yeah, that's a great question actually that phrase was added after a regulatory review and a regulator required that we add that language to the actual press release. so apologize for the wonkiness there aren't any related parties
between verrano and harvest, but that was something specifically we were asked to add. >> thank you. >> steve, it's tim congrats on this deal. what's most impressive about harvest to me is how efficiently you've used capital to this point. you've been able to acquire assets, acquire liecenses at a fraction of your competitors talk about this being a different story than other players who don't have that profile. >> tim, that's a great question. one of the things that we have been really good at is acquiring licenses when they're allocated by the government, which means that we don't have to go out and buy them later for tens of millions of dollars when we can acquire them for a few hundred thousand dollars what we've seen in verrano is they have the ability to do that same thing they won more licenses than anyone in the state of nevada in the recent round of license awards there it's also true that we have had an emphasis on profitability
from the very beginning of our formation. and when we started talking to verrano, we got the very clear sense they are like-minded in that respect so they have been running a profitable company for quite some time as well. in the u.s., the cannabis industry is quite unique there are only a few companies that actually run profitably in this case you've just combined two of them so there's one less. >> to that end, steve, not every license i would imagine means profitability for you. how do you select which areas of the country look much more promising and which areas don't make any sense for you >> so, it's becoming closer and closer to time where they almost all make sense for quite a period of time we didn't have a lot of access to capital, so we had to carefully look at whether or not a particular jurisdiction allowed us a path to profitability if we could not find or we could not identify that path to
profitability, we had to pass on it and so we've become very good at determining what states -- how a state is set up and what implications there are going to be for the eventual profitability of that license. for example, do they have all the right qualifying conditions, do they allow the products to be sold to people all of those things feed into our analysis as to whether or not a license will ultimately be a profitable one. >> steve, thanks for joining us and sharing with us the news of the deal we hope you'll keep us posted. steve white, the ceo and co-fourngd co co-founder of harvest health grasso. >> i think all these companies will gobble up a lot of the smaller players. i'm long cronos and canopy stick with the bigger players, i think they'll get the cash injected and be the ones taking out future competition. >> there's going to be massive consolidation, especially in an industry that doesn't have a lot of debt.
remember, this deal was done with all shares. so it's currency that you can put to work. also distinguishes the u.s. players from the canadians the valuations are so different and you're seeing a lot of the u.s. guys continue doing creative deals. >> there's a discount to the u.s. players. >> major, major. i think there's a lot more value in the msos here. we've got more details on the faa's plan with boeing let's get back to phil lebeau. >> just a quick update to this air worthiness notification from the faa. the faa and boeing have agreed that by no later than april of 2019, next month, boeing will make enhancements to the flight control systems in the 737 max-8. we're not going to get too wonky here, but they're talking about things like activation enhancements for some of the systems that are helping in
specific situations where the pilot might in the past rely on memory in terms of how to operate the airplane they want that to be less about the pilot's memory and more about overt examples or warnings within the cockpit of how the aircraft should be operated by the flight crews also signal enhancements as well as a maximum command limit for the 737 max-8. and again, all of this has to do with giving the pilots, the crews and the airlines greater reassurance that any potential issues that might have arisen in the lion air crash and potentially in the ethiopian airlines crash won't happen again in the future. having said that, melissa, we still don't know the exact cause of what happened in indonesia, nor do we know the exact cause of what happened yesterday in ethiopia but this is the faa stepping up and saying we don't see enough here to ground these planes. furthermore, here are some of the enhancements we expect
boeing to make to these planes by next month. >> i havesomany questions, i don't know where to begin. it all seems very confusing to the flying public. the faa says these planes are air worthy and should continue flying we don't know what's caused either of these two crashes but we anticipate design changes by april. they don't know what caused the crashes in the first place. >> these design changes were first identifiedburg the lion air investigation. it's been well accepted within the aviation community that boeing was going to be doing some software upgrades to the flight control systems, if you will, within the 737 max-8 at the heart of this discussion, melissa, is whether or not this airplane reacts a certain way in certain situations when fault y data is fed into the airplane putting pilots in the position, okay, i know exactly what to do
and i've gone through all the training what the faa is saying is we want to see some enhancements here so it's not relying on the pilot and the crew's memory and more clearly explained what to do and we should point out we don't know if those situations caused the lion air crash or the ethiopian crash. >> my second question, are these all software fixes or are these physical design changes? >> my guess is it's a combination of software fixes. in terms of physical fixes, i doubt we're talking about mechanical changes, we're probably talking more about alert notifications within the cockpit to better alert the crews in terms of when is what's happening, this is what needs to be done. >> thank you so much, phil phil lebeau covering all the news out of chicago. what a busy day for phil b.k., what's your reaction >> it raises more questions than i had before we came into the
show and before this information was out there. it seems to me that is there something wrong that they know they have had the fix? has this fix been in the works will this be the one that fixes it how many other times have we had issues where a plane hasn't crashed but pilots are reporting it again, for what it means for boeing and me? it means i did not trading boeing at all. straight ahead, shares of stitch fix rpiipng that stock up nearly 100% this year we'll tell you what's behind the move much more "fast money" coming up next
welcome back we've got an earnings alert on stitch fix the company beating and raising its q3 and full revenue guidance the company increasing its client base, closer to 3 million active customers stitch fix just one of the names in this new wave of retailers leading the retail space this year shares of wayfair up 89%, stitch fix is up 89%, ets ycy is up 49. karen, what do you think >> those are really good numbers, the revenue guidance is good, the revenue was very good, 25%. the biggest, most important number to this one is the short interest at just about 30% this was not what you were hoping for if you were a short seller, this is the opposite of that i mean that's a whole lot of stockthat needs to be covered here. >> are you on the best subscription with stitch fix >> i get a new vest every week
they have asked me to create and design a few vests, so look out for that. >> is that the one you bedazzled? energy stocks coming back after getting pounded last week. we've got the details when "fast money" returns you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today.
san francisco with the options action hey, mike. >> we were looking at xop which is the e & p oil etf we saw two times the average call volume and it was concentrated in the april 31 calls including a block of 13,000 which were purchased just under 30 cents the buyer is making a bullish bet xop could rise 10% or more in just over five weeks. >> anybody else watching energy? >> i like energy here too. you've seen fresh longs being put to work here. >> thanks for that, mike mike khouw in san francisco. for more options action, check outhe llt fu show friday, 5:30 eastern time up next, final trades. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies
and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ that we're playing "four on four" with a barbershop quartet? [quartet singing] bum bum bum bum... pass the ball... pass the rock.. ...we're open just pass the ball! no, i can't believe how easy it was to save hundreds of dollars
on my car insurance with geico. yea. [quartet singing] shoot the j! shoot, shoot, shoot the jaaaaaay... believe it! geico could save you fifteen percent or more on car insurance. believe it! geico could save you fifteen percent whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. does your wealth manager a cfa charterholder does. you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise
to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org final trade time tim. >> yeah, we played that game buy or sell. >> trade it or fade it. >> whatever. i'm a buyer of mattel. i've been there for a while. >> karen. >> i like capri holdings, which is the new name for the michael kors brands. i think it's way too cheap. >> brian kelly. >> since we're playing trade it or fade it, transocean rig, i like that one. >> steve grasso. >> general electric. in four days the stock is up 10% and still not overbought on our rsi. i'm still long it, you should bow too. ge. >> i can't stand it when you guys just annihilate the names of these games
>> follow twitter. people or twitter are why don't you call it what it should be called, buy or sell. >> you guys are no fun that does it for us here on "fast. we'll see you back here tomorrow at 5:00. don't go anywhere, 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 make you some money. my job isn't just to entertain but to teach you call me at 1-800-743-cnbc. tweet me @jimcramer. want to know why the market surged higher today? simple last week sentiment got too negative and when everybody's negative