Skip to main content

tv   Fast Money  CNBC  March 20, 2019 5:00pm-6:00pm EDT

5:00 pm
come, but you do have to keep in mind the market was coming in this from the high of the year. >> now we go back to waiting news headlines on china trade talks. >> and the fed. >> that does it for "closing bell" today. thanks for watching. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking times square, i'm melissa lee. check out shares of micron that stock is volatile after reporting earnings moments ago that conference call is under way. we'll bring you the latest details. plus tony dwyer says almost nothing will bring this rally to a screeching halt as stocks reach for all-time highs but we start off with the market, stocks sinking as the federal reserve says rate hikes are off the table for the rest of the year. the dow was down 150 points. take a look at some of the big movers the dollar got crushed
5:01 pm
it's kind of like a game of choose your own adventure. >> i love this >> this is a new game. >> these are like your tea leaves these are like your tea leaves read them, interpret them as you will guy adami -- >> before this whole "fast money" thing i used to have a job and used to trade commodities. i look at what's going on and say the fed is going to effect i' ively torch the u.s. dollar. central panics will probably
5:02 pm
continue to buy gold evening the market probably stabilizes here. i'll go right to the gold miners and say in this environment what the fed just said for the foreseeable future, i think gold will get that second bit of the year and i think that's going to take off. >> i love the gold trade but obviously you see a lower dollar it's going to be good for multi nationals. lower yields are going to be good, should be good for stocks. what i thought was really interesting today was the market went back to the old playbook. you really saw an outpacing in performance today which tells me the market is saying you've got to buy growth. you've got to buy faang and all these stocks where you get idiosyncratic growth you can see right when the fed announced what they were doing, very dovish, boom, all of a sudden the nasdaq takes off versus s&p 500. >> this has been the playbook for a lot of the bull market run. easy money, go ahead, buy growth. >> and the fed gave you ease ie
5:03 pm
money today. i didn't think we could take another pull off of this same trade, if you may. the fed got more dovish today. another chart i would look at would be the u.s. leverage loan index or high yield charts or credit spreads, which continue to tighten away. that on top of equity conditions being financial conditions are getting looser and looser, which is great what's now back to august of 2018 levels, emerging markets. they broke through what had been resistance at 43.50. i also agree in the commodity space, as i said yesterday, we have policy that's giving you one thing but ultimately i would tell you so the bond market, which 2.55 on the 10-year tells you one thing. i think we have reflation and energy prices. >> pete najarian. >> what i'm looking for is growth if they have the fundamental
5:04 pm
side on top of that, so many of the tech names fall in that category i think there are opportunities out there. whether it's an intel. i think there are names out that that i think can fight through a lot of what we're hearing on the outside. and if there's any relief in the trade wars, then all of a sudden i really think you're off to the races with some of these names but energy has really been on this great run oil has been pushing towards 60. if you look at some of these equities right now, they're absolutely on fire there's some great movement out there. i just took a look before we went on. i've got ten different positions in energy right now out of probably call it 60 positions. ten of them are in energy. but i like all of them and have no reason to get rid of any of them i literally have everything from the pipelines to the big conglaum rats and i have a lot of the small beta names. >> so you look debata names like
5:05 pm
a rig offshore r.i.g that thing has been ripping. now, just a word of caution out here, it's possible the fed made another mistake today. >> what? record crash, what are you talking about? >> we've got a weak dollar we've already got strong oil what happens if the weak dollar starts to light a fire under that oil trade and all of a sudden we've got $80 oil that's no longer a tax cut to people, that's a tax on people so i'd be worried about that a bit. >> i think that's fair and i think it's something that the white house will pay attention to but i don't think we've seen energy prices be a stimulus on the way down i don't think they have been proven for the consumer to be a headwind on the way up what i hear you guys saying is that the energy trade that badly lagged with very little conviction that these companies are run differently, i think they're run differently. i think the big e & p names are one thing but i would go into oil services here because they have not kept pace with this rally. >> how about financials?
5:06 pm
you know that was a very curious intraday chart on financials we had a further inversion of the yield curve and got confirmation that economic growth wasn't going to be as good so what do financials have going for them at this point >> in my opinion the real thing they have for them is pristine balance sheets and are well capitalized. that's great but i don't think it gives you the multiple they probably deserve or had a couple of weeks ago goldman sachs has had a tremendous run off the lows we saw four or five months ago but i think that's got a bit ahead of itself as well. for a lot of these banks, they should be trading around tangible book. maybe a couple got ahead of themselves, number one number two, look at that outfit on tim >> fine-looking outfit. >> first day of spring, people if you're not going to vest up.
5:07 pm
>> a pocket watch and a monicle and maybe a visor to counting his bills. >> all i can do is try to come back to that tomorrow. >> i bought some calls today in bank of america. i saw this paper out there they're not working great. i still think if you look back over the last week, two weeks and take a look at goldman sachs. got up over 200, over 205 yesterday and jpmorgan moving up i think there are reasons why the financials when you look at the pristine balance sheets, when you look at some of the margin and some of the cost controls that they have got, there are reasons why they have gotten too cheap and i think that -- i don't know that they take off because we've been waiting for that for three years. but i think at some point in time we start to move to the upside >> here's what i also think. if you think about banks and
5:08 pm
think about what's different about banks even now versus two or three years ago, banks as a sector are actually paying pretty decent dividends. at this point if you think about the balance sheet, you think about the valuations which we talk about trough valuations and s&p a 10-year which is at 2.54 with an earnings yield on the s&p of 2.1 but financials with about a 2% earnings yield, that's kind of impressive. so i don't think you run out of banks. i'm not surprised we saw this move today banks that outperformed the s&p and outperformed the market last week, why should you be surprised about this move. >> what i was betting on was a yield curve steepening the fed gave you a bit of a hint that they might actually -- they don't want the curve to artificially invert, right and so they're going to probably do some things that are going to cause that curve to steepen but not today. that was the disappointing part and that's why you have to re-evaluate the financial trade. it's probably a second half of
5:09 pm
the year trade. >> you know what's interesting -- >> many things, melissa. >> a lot of things are interesting, but when it comes to the fed discussion and the markets, yesterday we were focused on fedex, right? >> yes. >> and the signal it sent about global economic growth and the slowdown that could be materializing there or that is materializing there. what the fed said was basically confirmation of maybe some fears on wall street about growth in general. why isn't that all bad news? >> it's fascinating you say that i think it should be bad news. but i think people look to the fed and say the fed has our back bad news is good news. today for the first time, now, we talked about this last night. could the fed be too dovish and could that make the market sell off? i said to pete earlier, 24 hours does not a day make. six months ago these same fed conversations, the dow goes up 250, 300 today we close down a hundred. >> or the fed gets too dovish, we see had old trades back on,
5:10 pm
faang stocks go higher, industrials, whatever, and the fed comes back into play and it becomes a risk again. >> look, let's be clear again how extraordinary today was. we went to zero rate hikes in 2019, one in 2020 maybe somewhere out there in the far -- we talked about the balance sheet and said we're going to get that out of the way in a hurry so this is a fed that right now really could surprise people if they showed a tinge of hawkishness. i think the u.s. dollar is the ultimate example of that it is on the risk of breaking the 200-day. at this point the fed has come back in line with the ecb and the boj. our next guest says there's almost nothing that can stop this rally and new highs are coming. >> that's the kiss of death. >> i did not say that. >> tony dwyer is here, chief market strategist. >> the only thing i know is tim
5:11 pm
had glasses like this, he would be the "fast money" hero with the vest >> characterize your bullishness. >> the fed went from a tightening bias and within six months eased 1995 the market was up 20% gdp growth was 0.5% per quarter for the first two quarters, so you were almost in a recession everybody said the market was ahead of itself. i know this because i went back at microfiched it's a library tool. i read it and everybody thought that the fed had gone bonkers.
5:12 pm
the market kept going higher and clint was fighting off a special counsel. janet reno had appointed ken starr to investigate whitewater and he threatened japan, the number two world's largest economy with a 100% tariff on their top 13 cars. does any of this sound familiar? in addition, you had the indicator. the reason we had changed our retest call was you had such a powerful move in stocks. as a matter of fact, there was one time where you had 92% of stocks above the 50-day moving average. when we look back of when that's happened, it happened on february 15th. your maximum median drawdown, 1.17%. how much did we lose this time 1.1% two weeks ago then your median gains six and 12 months later are 9 and 16%
5:13 pm
respectively. >> there's a great question about could this be 1998 you gave out '94-'95 what if the fed eased like they did in '98 and we are just blowing a massive bubble and it's going to end as badly as the internet crash >> b.k., they eased in '98. >> right. >> when you had almost a failure of long-term capital and blew up the bond market. again, it was another situation where the feds actually were bailing out the banks. they were easing because of liquidity and the whole thing was going to zero because of the leverage and long-term capital very different than 1995 where you eased because economic activity was so poor imagine this, in the next three months we get at least one negative payroll number. i'll bet you we get a negative payroll number in the next three months how could you ever buy stocks up 15%, 20%, with the special counsel and prosecutor on the president. well, that's what was the right thing to do.
5:14 pm
the fed is the driver of this game it is always the driver of the game rather than -- i don't like to evaluate whether they're good or bad, i'm not a politician. the dudes making the money and dp gals making the money told you they're going to keep doing it that's my analysis for the day i'm not that bright. >> nor am i. so you said the stop watch starts once the yield curve sort of flattens. >> correct. >> and you've got about 16 months. >> 18. >> give or take. the stopwatch seems to be going now. does the world move a lot faster now? or it's still 16 to 18 months of decent returns in the stock market >> let's think about what this does it shuts down lending, shuts down credit so the market starts to kind of slow down and it takes a little bit of time if you no longer have access to the public credit markets, what are you going to do? draw your bank lines so you still have money availability that's why it works with a lag it takes some time to work through the system
5:15 pm
so the clock starts to count down over 18.5 months. what i love to do is ask the people that are on the other side of the trade, because i've been as armageddon bearish as i am bullish before. if you're bearish, what would change your view what would change my view, credit shuts down. if i come on the show after the curve is inverted on an initial day and i tell you everything is great, it's different, then don't have me back at the end of the day when credit shuts down, it's a leverage system and a levered economy. we're still in the bubble-building side of credit some of the credit deals that happened this week are bananas triple c paper sold five times oversubscribed. >> so, tony, it sounds to me like not only are you consistent with where you've been and good for you on that. does that mean that the same trades will work too does the rest of the world continue to outperform really you've taken the pressure off in the form of the fed, the dollar, higher interest rates and those are markets that have
5:16 pm
been outperforming germany went through the 200-day for the first time in god knows when is that the trade you like >> tim, i'm glad you asked this question because i wanted to bring this up. the emerging economies, the commodity play, the weaker dollar plays, did you ever notice that when there's a rate of change, it's only a negative. it's only when growth is great and everybody talks about it how about when the rate of change is positive the global growth rate of change on many indicators, leading index, the c group economic surprise indices in europe, you're starting to see some of these things go which means you get the cyclical trade that works. again, what shuts that down is when the credit market shuts down and interesting on the financials, what's important to remember is they went parabolic in november, december, january last year. not so much now. >> tony, great to see you. thanks for coming by. >> thanks, guys.
5:17 pm
>> pete najarian, i go to you first. >> i tend to lean towards what tony is talking about. i think there are different reasons that we see different areas of the marketplace that can bring us to the upside we've made an incredible run in a very short period of time but i see industrials that look very tasty because of the fact when i look and see stuff trading si single digits, i think there's opportunities there. >> give me one name before we go to break. >> well, i think of all the names out there, if i'm going stick with industrials, i think caterpillar is too cheap. big tech the big winner today. check out the faang stocks all jumping. we've got the details. plus check out shares of micron jumping about 2% after hours. we'll tell you what the ceo is telling wall street. plus oil surging to its highest levels of the year pete says there's one stock you should be yi tbungo catch the rally. much more "fast money" receipt
5:18 pm
after this the latest innovation from xfinity
5:19 pm
5:20 pm
isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back to "fast money. we've got an earnings alert on micron the stock is up about 3% seema mody is back at headquarters >> micron jumping higher despite
5:21 pm
weak revenue guidance. the ceo acknowledged the short-term challenges the company is facing but remained optimistic about longer term growth, specifically in the auto sector with the adoption of autonomous vehiclesover the next decade and 5g reigniting smartphone sales in 2020 he did kroit tcite the challengg macroeconomic environment. >> we believe macroeconomic uncertainty is contributing to hesitation in buying behavior of some customers however, as we discussed on our last earnings call, we still expect it to begin increasing in q3 with demand growth strengthening in the second half of 2019 and likely to normalize by midyear. >> shares of micron have had a strong year, up over 30% in 2019, outperforming most of its
5:22 pm
peers in the semi conductor index. >> thanks, seema guy adami. >> if you told me last night this is what they're going to say, they're going to say revenue down 18% sequentially for nan pricing, margins are light, the guide for the third quarter is 4.8 billion and it was 4.2 billion. they guided down eps i'd say the stock will be down 5% and here's the stock up 3%. so i don't know what to make of this i guess they're buying into some of the 5g commentary that he made if you look at the numbers and the guidance, to me the stock should be lower and not higher. >> the d-ram crash is so obvious that we're not possibly at the bottom a lot of analysts say the second half of the year they get 85% of their operating profit from d-ram. so micron which is cheap on a trailing basis, it's probably 3.8 times trailing 12 months is still a stock that can go lower. it's up 35% off the bottom a lot of this is short covering.
5:23 pm
>> a few positive things for the call was the fact that shutting down a bit of capacity so now there's going to be inventory reductions out there nvidia came out and said they're working through some of their inventory that's bloated out there. the ceo here is saying maybe the second half of the year you're going to work through some of that inventory obviously you can see what d-ram prices have done prior to the earnings call. they're saying wait a second, at some point in time we worked through the inventory glut and this is going to turn around. >> is this a good read to the rest of the sector in that it is so leveraged to one commodity part of the serctor, which is d-ram. >> it's on pace for its better quarter. >> we talked about the financials earlier and balance sheets and where they're trading and some of that these fall into a similar category i think this was a stock that was $64 last may here we are trading at 40 and hit a low of 32. when they gave the delivery, and
5:24 pm
guy outleanined it very well. they're saying hey, this is terrible, but it's not as bad as we thought just yesterday they were buying calls, buying upside in micron just looking at this calls that expire friday this was call buying just based upon the idea that, hey, these guys are going to go higher, almost regardless of what is said on the earnings call because of where the stock is trading right now. >> all right i'm melissa lee. you're watching "fast money. here's what else is coming up on "fast. orange mocha frappuccino. >> grab that vente cup because shares of starbucks are heating up the stock is trading at all-time highs. we'll tell you why one trader says he's not sure he'll ever sell this stock. plus pete najarian is stepping up to the plate as oil jumps to its highest level of the year, he says it could fuel a major rally in one stock. he'll give us the name and the trade. there's much more "fast money" right after this
5:25 pm
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
5:26 pm
5:27 pm
welcome back to "fast money. " big tech is on notice. facebook make major changes to the way it delivers tie advertisements to users. it will remove age, gender and zip codes which will eliminate microtargeting for certain businesses gene munster was discussing why the shift will alter the platform's business model. >> the government weighs in in terms of how data can be used. this news today from facebook is a big deal because what advertisers love about facebook is two things. reach, it still is up press dented, and separately is the ability to target that reach if that gets somehow diluted, that could weigh on the
5:28 pm
profitability of some of these companies. >> this on the same day google gets slapped with its third antitrust fine to the tune of $1.7 billion jamie dimon also speaking on the network today saying when it comes to big tech they haven't even seen the full monte yet in terms of congressional hearings. >> that's a visual. >> and legislation is that something bad? he means it's only the tip of the iceberg, all right let's shift metaphors here it is worth noting all faang names closed higher today, as it looks like the increased regulation risk couldn't stop investors. but should investors be concerned about this overhang, b.k. >> i don't think so yet. a lot of the sell-off in these names in 2018 was anticipation that there was going to be problems, the so-called full monte coming out you may want to take that actually from jamie dimon because the financial industry went through something very similar after the crisis, right? so he's coming from a place of
5:29 pm
experience i understand that. facebook, of all those names, is the first one to really start making some changes. their new privacy push they're going to go to a messaging system they might have some count of a facebook coin. they're taking a proactive stance if you look at the way facebook traded today, it closed at the high of the day. that's what i like in this sector. >> you can't go to tower records anymore or blockbuster but you can go to amazon and buy that movie about steel workers that are out work you would enjoy the movie. where am i going amazon has traded remarkably well on a day fedex got taken to the wood shed, amazon is up big. that means it probably makes a run to its all-time high before they report earnings i believe on april 24th. >> monte for google and facebook is gdpr in europe. the europeans are so far ahead of us. if anyone is getting the full something, that is probably what's going to happen meanwhile if you look at what's
5:30 pm
been trading in some part of the faang, google for sure, last month has outperformed qqqs or their entire sector by 6%. what sold off hardest was a bunch of these names they appear to be riding back in the leadership in a lower growth environment. what do you want to own, google that's growing at a multiple of 20 times. >> full monte says the full amounting expected, desired or possible, just fyi. >> guy, why were you going with this >> the 1997 movie. >> it was a perfectly acceptable term. our next guest says there's two names that are heading for a bigger breakout. let's go to todd gordon. take it away. >> sure, melissa we've seen a relative shift into technology we'll start off with the lower part of the chart first. this is that nasdaq 100 relative to the s&p you see the ndx outperform so there's your empirical evidence that tech, we're rotating back
5:31 pm
in so far since that september high we've been in correction mode. i'm going to tell you a little bit of a story if we can go back to that nasdaq as possible, that would be great but that's okay if not basically what's happened is we've hit the last retracement there we go. thanks, guys this last retracement right here is not the 61% those of you who are used to retracements might have been used to the 61.8 here's a little math tip technical analysis, geeky stuff. if you square root that, that puts you at the retracement of last resort, 78.6. if you don't hold that, there is a very strong implication to break to new highs in fact what you would do is say old highs are expected then what you'd expect to do is go up to the 1272. b.k., please back me up when the guys hammer me on the desk after that if you take the square root of
5:32 pm
your fibinachi multiple, it puts you right there. that is 8200 in the nasdaq that means we break this line, you go to 8200 that's the expected relationship and it's pretty reliable when that happens, it could be this year, it could be next year, but that's the upside target the stocks we're seeing, amazon, a beautiful shelf here we're trying to break this inverse head and shoulders i'm going to try to chase as probably many people are as we get up to the old highs. again, amazon into the nasdaq, we're showing relative strength. just recently amazon is starting to come on the other one, no surprise, is netfl netflix. i don't have this trade on, i want to get it it looks like we are well contained in a nice parallel channel here we should be able to test this upper level here when you are on a log scale over here, that changes the upside targets and gives you a target of around 600. again, that doesn't need to be this year, it could be next year, but that's where
5:33 pm
resistance comes in. i'll be looking to add, same thing, netflix, into the nasdaq qqq. certainly a lot of relative strength here so we're seeing a rotation back into tech and these guys will play the catch-up trade higher here. >> todd gordon of tradinganalysis.com. thanks, todd you know what's interesting about the two names todd highlighted, they are ones that are more insulated from these regulatory risks. >> yeah, i think that's right. part of netflix' valuation is defended by their -- you know, they were a conduit. they have an amazing leadership advantage over their peers they also have a lot of your data so i think they could be in a position where at some point people will scrutinize this. to me the issue is competition and valuation, not are they executing because they are. >> they are executing. i think the competition is coming, we all know that obviously apple and everybody else is going to come for them as we expect
5:34 pm
i still think their moat is difficult for people to get across because of that i pitched this stock. >> power pitched. >> power pitched. >> fast pitched. it's been one of my favorite trades and i continue to have it on and i'm still looking at other names in that sector it's names i don't necessarily get my arms around but if i can buy those stocks and sell incredible volatility against them, boeing is one of those names i'm looking for an opportunity like that, it makes it a lot easier. this is a name where literally i think we've collected over $100 in premium so that gives you a price intro point that's incredible versus where you actually bought that stock. i continue to think that that's a perfect way to play netflix. >> todd mentioned a dead italian mathematici mathematician. here's a point you might get some weakness if you want to take a little bit off or sell some calls against it. when it comes to the tech trade, today told you everything you
5:35 pm
need to say. that chart that todd shows of tech outperforming the s&p 500, you saw it the last couple of months, you saw it today, you buy growth in this market. >> everything is awesome again everything is awesome again. would you -- >> what's his name, john lennon. >> if you're not giving me a trade i'm going to break. >> do you think when fibinacci was making this up -- >> did i ever ask him that going to break still ahead, it is a starbucks rally. the coffee giant surging to all-time highs from the december lows we'll tell you what has investors so excited about the stock. plus pete has made his way over to the plasma he is feeling that good energy with oil on the rise he'll tell us the one stock he is buying to catch that move what is that much more "fast money" after this
5:36 pm
5:37 pm
5:38 pm
welcome back to "fast money. the oil run continue, topping $60 a barrel for the first time since november crude rallying more than 30% this year alone. pete says there is one energy stock that is riding the wave.
5:39 pm
he's over at the plasma with the fast pitch. >> this is going to be a lot of fun because this is a name i liked a lot. it's kinder morgan richard kinder, he's the founder obviously and still the chairman but he's got a ceo who is doing an unbelievable job. richard kinder, how about the commitment he has to his own company. he not only already owned incredible size in terms of how much shares he owned, but since november, september, he's bought another 4 million shares in the stock. so very aggressively positioning himself. you've got to like the fact that he's willing to put his money there between 17.5 and 18.5 is where he bought the majority of that he's very committed. it's just amazing and i love seeing something like that i think the fact that they are the largest oil and gas pipelines, that's amazing. and what all the other areas that they have got, they have got the terminals down south, they have all the different
5:40 pm
positions along the way as well as lng there's a lot of things going along that positions them going forward, not just up to now but going forward, because the stock hit a 52-week high today the interesting thing is this divide dividend let me show you a chart. if you go back to 2015, this is a company because you had to make sure they had everything in place. they were very uncomfortable we saw gas prices and where they were but they cut the dividend. this stock dropped dramatically here over the last couple of years after that cut, now that's actually doubled so it went from 50 cents and now it's gone to a dollar. it's almost recovering back to where they were and where they were paying the dividend before. i think this is a very creative company and i think richard kinder is probably the reason why i own this stock and will continue to own this stock. >> pedro, just to play devil's advocate because that's what we do on this show, you know the stock has gone from 15 to 20 and change in the course of a month and a half, two months does that concern you at all
5:41 pm
>> it doesn't concern me because if you go back and look at that stock, this was a stock trading in the 40s i think it has potential to not maybe get back to those levels unless we see the rest of the environment change, but i certainly think we could see it back towards the 30s so it has made a move in the last year but i think that move can extend a lot higher than it is right now. >> anybody else have a question or are we going to vote? let's vote tim. >> pete, this was tough for me i'm a seller i like the energy space. i certainly agree everything you just said is why this company is trading at the top of the range. at 30 times multiple, i think there's other places to go in the space. but it's a reluctant sell. >> b.k., what do you say >> i've liked oil a bit and i like what pete is saying i've got a high dividend in a high growth area i crossed out kmi, no, no, it's a km buy. >> see what i did there, mel
5:42 pm
i said bonsai. >> trade it. >> means -- >> wait, really? >> it's the bonsai pipeline and woe brought in this long piece of pipe. >> i thought that was a suicide mission. >> no, no, no, no. that's kamikaze. this is bonsai. >> the more you know it is your turn at home. are you buying pete's pitch? there's the twitter poll we'll reveal the results later in the show. shares of starbucks seeing green, going green as the company continues to use less plastic. can the coffee giant continue to percolate gains? we'll hear the latest on their shareholder meeting today. much more "fast" still ahead
5:43 pm
you should be mad at airports. excuse me, where is gate 87? 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.
5:44 pm
(butcher) we both know you're not just looking for pork chops. you're searching for something more... ...red-blooded. right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in.
5:45 pm
welcome back to "fast money. check out shares of starbucks, now up 40% off its 52-week low the company continues to go green, use less plastic. also an accelerated stock buyback program. courtney reagan joins us with all the details. >> today starbucks held its
5:46 pm
largest shareholder meeting, about 4,000 people presenting. shares were flat most of the session. you saw them move higher but that coincided with the market they didn't update any financial forecasts other than accelerated $2 billion share repurchase program to be completed by june. it did announce a $100 million investment in a funding that's intended to invest in technology products or other solutions to improve food or retail so that would give starbucks early access to those innovations. they plan to modernize through technology, product innovation and new formats. this is the reimagined third place, meaning it's not home, it's not work but the third place, that reference that they have been using since howard schultz was there. the modernization will start this summer in new york city no financial details today given about what that will cost.
5:47 pm
lastly, starbucks gave updates to its programs to hit those sustainability goals it's going to try some new greener cups and strawless lids at least in some geographies, adding a feature on the app to show the coffee bean's journey to your exact cup. kind of interesting stuff. back over to you. >> thanks, court courtney reagan. i don't even know how to react about tracing the journey of the bean >> it's the bow. >> i appreciate the comps are up 4% in the last quarter globally and the u.s. actually outperforms and these guys are continuing to get prices higher in the u.s. as their costs go higher as we talked about the company, the challenges are the fact that it's up 30% over the last six months, also it did nothing for two years. it's broken out into a new range, a range that you can probably pause at 23 times next
5:48 pm
year it's not that expensive here again, i repeat, this company has been able to raise prices in a world where i don't think a lot of other people can. that's impressive. >> it's interesting. so i would say the story for starbucks to me is it's a $90 billion market cap company and they're going to return close to $25 billion, of which they already did 14 in buybacks and dividends to their stwoeinvesto. that's a significant amount of money. they're not that expensive, but they're not that cheap either. >> the fact they're buy ing back stock is important to me the other thing is coffee prices go up, they raise prices coffee prices go down, they don't touch them that's one of the greatest mechanism the i've ever seen and starbucks has gotten away with that forever it seems as if nobody cares. >> i actually think it's a brilliant move not just for pr purposes, and you say, oh, b.k., you went to
5:49 pm
uvn, go cats, by the way, there's a whole new sector of investors coming it's a whole new amount of money coming in that potentially represents new buyers for starbucks if they can get this right. >> by the way, that's not wildcats, that's catamounts. >> the other night we were saying the most common mascot was a wildcat. >> very well done, mel very well done. >> i do remember some things you guys tell me. >> by the way, not that anybody cares except maybe brian and myself, but vermont, the university of, they're a very live dog up against florida state in the first roundi of th tournament. >> is this the basketball thing that's going to happen >> live dog. look it up. coming up, another stock trading at all-time highs, nike. we'll tell you why traders are betting this stock's run isn't over yet. let's get a check on our cramer cam there's jim chatting with the
5:50 pm
ceo of sage therapeutics much more at the top of the hour on "mad. much more "fast" still ahead the latest innovation from xfinity
5:51 pm
5:52 pm
isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back to "fast money.
5:53 pm
" shares of miknike having a bi run this year. it reports earnings tomorrow let's get out to mike khouw in san francisco with the action. hey, mike. >> hi there. yes, so nike saw well over double its average daily call volume today and the options market is implying a move of 5.1% for earnings when they report tomorrow. that's about average where we saw most of the activity, though, was in the weekly 93 strike calls, over 3,000 of those ultimately ended up trading for about a quarter so buyers of those calls are betting nike could trade higher by 8% by the end of the week and that's larger than the implied move you might wonder why they would be looking to do that out of the last eight quarters nike has moved more than 7% on earnings we've seen moves up to 11% even though this is a low probability bet, the stock has been known to move that much and it may yet again. >> pete, what do you think >> low probability bet but
5:54 pm
you've got to like the risk/row wa -- reward this expires friday, so because of that this is a very gutsy play very similar to what we saw yesterday in a couple of other names that reported and they have worked out, micron being one of them today. digital transformation, you heard that last quarter, you hear it again. greater china last quarter was remarkable strong given what's going on over there. nay sayers will say the stock is expensive. i think beware >> you own it? >> i own it. i'm not terribly discouraged by the multiple innovation at nike again at least is acknowledged to be happening which equals full price, which means pricing power. also the channel they control on distribution is clean. i think these guys are well positioned for 2020. >> mike, thank you good to see you. we'll see you on friday. friday is when the full show
5:55 pm
airs, "options action" 5:30 p.m. ermen ti. up next, final trades and the results of the poll. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ 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.
5:56 pm
learn what a cfa charterholdr can do for you at therightquestion.org at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react...
5:57 pm
welcome back to "fast
5:58 pm
money. we've got breaking news. levi's ipo pricing let's get to leslie picker with the details. >> levi strauss pricing its initial public offering at $17 a share. the majority of 37 million shares stem from the relatives of levi strauss who founded the denim company but died 116 years ago. the remainder are being issued by the company itself, which plans to use the cash toward cap ex at $17 per share the offering is about $623 million at a valuation of $6.6 billion. sources told me earlier that it had been better than expected. nonbinding orders for shares are more than ten times the amount being offered. it gave confidence it could price the ipo above the range it had been marketing to investors. i spoke to some of the investors
5:59 pm
who were optimistic about the company's performance, the predictability of its business model. goldman sachs and jpmorgan are leading the deal the shares will be listed october nyse under the symbol levi. >> thank you, leslie picker. so above the range, ov oversubscribed. >> it's interesting. they're known for making sturdy work clothes that's what they got their start in but the women's sector has been the big winner here. 38% growth in the women's sector, both tops and jeans, so i think this one does well. >> by the way, he lost on the twitter poll for his fast pitch. >> it's not unusual. >> we'll get straight to final trades pete. >> kmi, that's the one because everybody is against it. it's going higher. get it. >> starbucks this continues to go higher. they have carved out their market share, their pricing power. stay there. >> b.k. >> talk about carving things out, look at gdxj.
6:00 pm
>> guy. >> yale will beat lsu, write it down schlumberger >> that does it for us here on "fast. don't go anywhere, a for us at t money. "mad money" starts right now 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. or tweet me apple arizonajimcramer this looked like it would be a real bone crusher of a session when the president made some very tough comments about trade with china and stock

36 Views

info Stream Only

Uploaded by TV Archive on