going on with the euro with elections there matters, too. >> as all of this happens, megacaps, largely continue to run, including amazon, which is being powered higher, largely by aws, and we'll see if that continues. >> yeah, big tech largely leading the way here, at least in afternoon trading, though nvidia, a little bit of a drag. a new record closing high for the nasdaq. that's going to do it for us here at "overtime." >> "fast money" starts now. the nasdaq sitting at its 21st record close of the year. this is "fast money." here's what's on tap tonight. golden delicious. shares of apple soaring 3% on some bullish data out of china. is there danger lurking from its overseas prospects? and banking on gains? shares of jpmorgan hitting an all-time high and bringing other big banks along with us. is the run overdone? plus, tesla charges up ahead

of its q-2 delivery report. amazon heads to new highs. and boeing gets a boost, as it takes a step closer to buying back spirit aerosystems. i'm melissa lee coming to you live from studio b at the nasdaq. we start off with apple, gaining more than 2%, setting a new record close. iphone shipments in china staging another strong month, rising 40% according to bloomberg calculation. analysts at ubs throwing some cold water on expectations for a broader recovery. those analysts estimating china iphone sales rose less than 1% in may.

discounting with a lot of analysts said. you know what, with heavy discounting, you can gain that share, but at what cost? >> to your point about what way, i think their sales in q-1 were up 70% year over year, so, apple's sales in china were down 20%. so, we have this data for the last two months or so, up 52%, up 40%, and again, that's 20% of apple's total sales. so, to me, you know, abpple doesn't do heavy discounting anywhere else in the world. so, they are obviously very focused on this chinese market and retaking some share versus huawei. but i want to think about apple intelligence. let's think about two quarters, three quarters, where people are very excited about apple right here, you know, because of the opportunity for an upgrade cycle here in the u.s. but i don't think the reasons that people might upgrade here in the u.s. are what chinese

users are going to be upgrading for. so, to me, if you're going to heavy discount to try to get back share, that's going to weigh on margins. so, i just don't think it's that interesting. the stock's had this huge move, right? it's up 32% or so from the lows in april. it's still only up 13% on the year, so, it's lagging the nasdaq, which is up 17.5% and the s&p 500, which is up 14.5%. so, to me, the stock is probably fully valued here. >> to your point, two to three quarters in terms of the a.i. story playing out in the united states, or other markets out of china, i think that's almost optimistic. the most bang for your buck is when there is a bigger adoption of this latest phone and a.i. it's not clear how deep that adoption could be if you are only going to get it with the highest end phone.

>> but it's apple, we understand there's 2.2 billion devices out there, and 250 a year that are going to have to refresh. and if you think about this move in apple stock, dan's pointing out, it's been a huge move. it's outperformed the s&p by 20% since april 10th. but even since it's had this move, and if you look at that flag pole breakout chart, it's actually really impressive what it's done in the last ten days. sinlt so, go back to china, i don't think, you know, i think we've priced in that china is a difficult place. this move in apple is all about, i think, this refresh title, and i give you credit, they bring up important points. aft apple's share loss in china is shocking. the growth is about 11% a year and they're growing off 90 basis points. yeah, it was up 50% in april, 40% in may. these are really big impressive

numbers, but they are losing market share to huawei. if you own apple here, you -- you know china's a problem. i think it will continue to be a problem. and -- but as someone that's actually added to apple shares, a few different times over the last 45 days or so, i actually think that apple does look interesting. and i do think this refresh is interesting. what ubs is doing on multiple is maybe the most important thing for the stock. they're putting a 27 multiple on it, which they say is the five-year historical kind of premium to the market. and that's -- i respect that. i respect that. because i don't think apple necessarily deserves a huge premium here, and that's what it's had. >> do you think it deserves even that, karen? >> well, you have to back out the -- it's a hardware company, primarily, in revenues, right? so, whatever the number is, 70%, let's say, a little more, in the hardware business, and what are hardware multiples? significantly less than that. when you look at that, you are looking at something that's much

higher than 27 for the rest of the business. so, the other thing is, i'm not quite sure that we've seen the -- how is it going to monetize a.i., right? i'm not clear on that, which is sort of the bigger story, you know, at large, on a.i. -- >> everybody. >> for everybody. >> right, well, we know how nvidia -- >> well, microsoft is selling -- >> selling co-pilot. >> right. >> but i agree, it's not charging, per se, for apple a.i. >> they would say, okay, we're going to have so many a.i.-enabled apps, that may be. maybe it's just, you know what, i have not been an apple bull for, i don't know how many points, ten -- bunches of tens of points, so -- i don't know, i feel like a lot of this is getting priced in. >> yeah. julie, how do you feel about the valuation at this point? >> i agree that the valuation is challenging, right? but i mean, as a long-term holder, i think i've owned apple

personal little for 11 years. and for me, the opportunity in a.i. actually is really clear, it's exactly what happened with google and search, right? google pays apple in order to have search as the default feature. and i'm pretty sure that openai will be doing a similar situation. i'm pretty sure it's going to go to whoever the highest bidder is. and that is because they want to be able to monetize the absolute best user base of any iphone, right? the higher end user base. so, i think their positioning and their eco system is going to enable them to generate a lot of revenue from that user base, and it's unique, because it's a near-term revenue that we have better clarity on and it's very high margin. >> can i ask you a question, julie? i had thought openai was not paying -- >> they're not paying right now, but i would have a good feeling that -- like, the way i look at it, the competitive dynamic is such that google has 90% plus market share of search, and they still feel the need to pay to be

on apple's platform. so, i think it will probably make sense for any of the openai and competitors to be paying to be in front of a user base. it's a really compelling user base. >> i understand that line of thinking, julie, but does anybody say, x points of apple's multiple is the revenue that google's paying to apple? or is that part of anybody's bull case when investing in apple? i feel like it's not, and so -- if that's not going to be, why would a revenue stream from a.i., an a.i. provider paying apple, why would that be part of the bull case? >> i think we've talked a lot about services as being a pretty important part of the apple story in terms of being able to support this kind of a multiple. so, the revenue that google pays them is within that services bucket. so, i think everything that's not hardware should, bill virtue of the size and the scale of the business be higher margin than the harolddware, and it tends te recurring in nature.

that means vins investors are g toll be paying for that. >> julie, i wanted to say, i loved seeing you in "the wall street journal" this morning. >> kudos. >> julie could be right, but you know, i think a lot of folks believe that a lot of these models are going to become very commoditized. google pays tothe default search on safari, if anyone is going to pay, it would be google at this point, because they know they're not in the driver's seat, relative to openai. if i'm google, i want to defend that moat of search in a way. >> but even putting aside a.i. for just a moment, in terms of its china market, if you were to mark down the china market -- china is going to be a difficult place -- >> foreseeable future.

>> probably even worse as we enter full swing in the political season, i think tensions between the u.s. and china are destined to be a little bit shakier -- >> for sure. >> and there court informal boycotts, as we've seen, with even just, you know, state agencies saying you cannot bring an iphone into work anymore. i mean, things like that make a difference at the margins. so, at what point do you start saying, that as going to hit apple in terms of what we should value it as? >> i think we've seen that in apple's growth. i think we've seen it in the lack of growth. how many successive quarters did we have of essentially no growth or declining growth? and i think it gets back to -- i think it's enough for a stock, by the way, that underperformed the market dramatically for a long time. that 185 level was a level you had back in '22, while the market's gone to all-time highs, whatever place it's been in, one through three, but mostly one or two, this is arguably one of the most important companies, if not the most in the world. you have to make an argument that you should be getting credit for all these other

devices, a.i. stuff that's not in this current phone. you're going to have to get a new apple phone. it's that simple. and it gets into this refresh dynamic. hardware company, i get it, but the margin on software continues to grow, and it continues to be a big part of why they get more than they do. i'm not saying anythings that really changed here, but the current phone is not what the next phone is going to be. and people are going to want to buy that phone. it's nice you get a little snapshot, a taste of it right now that's being dropped in through a software upgrade, but this is about a refresh cycle, and talking about apple, 2.2 billion devices that need to be refreshed. >> that includes the devices in china, so, let's say that a.i., apple intelligence is a reason for people to upgrade to a new apple phone in the united s states. then the same would betru true china. they can't get a.i. on an iphone, so, they will go to another device, and start losing

part of that base, at least in part of the china market. at what point do you say, that share is going to huawei. as much as it's an upgrade cycle, driver in the u.s., it's going to be one in china and apple is not going to be part of it. >> i don't know how the upgrade -- a lot of times you get excited about the upgrade cycle and it starts off slow and seems to gather momentum later. i don't know -- maybe it will start off with a bang, i don't know. i'm a little hesitant that the upgrade cycle will be as robust as this move seems to reflect. >> all right. for more on apple, let's bring in gene munster of deepwater asset management. gene, great to have you with us. it's been awhile since we've spoken, awhile since wwdc, and how are you thinking now about that upgrade cycle? is it going to move the needle in terms of changing it from what it currently is, i believe it's 36 to 40 months to something shorter, people going to want to upgrade? >> i mean, definitely they're going to want to upgrade. i think the panel is accurately

describing what the next one, two, three years are going to look like. in the june quarter, the street's looking for 3% growth. if china actually does well, might be 4%. and then the growth goes to 4%, 5%, and then 7% for calendar '25. so, we have this kind of accelerating growth. the piece that i can add related to, you know, how to think about this cycle is that ultimately, the growth for next year is going to be 10% or greater. and ultimately, if that plays out, and i think julie was talking about the margin impact, that's really important piece here. we're going to see record margins from apple late next year. they're the only megacap company that is scaling a.i. at an efficient rate in the near-term. and you put those two together, you're going to see some nice 15%, 20% upside. i want to just focus on that cycle piece, but i think there's a much bigger story for longer

term investors, and that's really what's beyond the cycle. >> getting to our china conversation, sentence those are the numbers we sort of got today, gene, that help the stock along, i'm wondering how you think about the china upgrade cycle there for a.i., because if it's going to be a boom and a driver here in the united states and elsewhere in the world, i would imagine chinese consumers also want an a.i.-enabled product and they're not goingto get it from the iphone, at least at this point. so, how do you think about apple continuing to lose market share and at what point it will be material in terms of how you think about the company's valuation? >> so, apple's been losing share, they discounted by about 10%, we see an act segceleratio the first two months of the quarter, so, that tells me the price elasticity is working in china. you bring up the missing piece around the large language model, could it be dbaidu, some other

party. it was deafening, the silence around china, related to the llm, but they're going to fill that. so, i think investors can rest well knowing that piece will be put into place, and the opportunity ahead of apple over the next many years is so much beyond china, i'll just give one quick example of that. mac 9 to 5 published something about a patent that apple has, cameras on airpods. at the end of the day, that will essentially allow you to use computer vision. you don't have to wear glasses. some of the demos apple showed. this would be an example of another product that could be really powerful beyond '26, and i think an example that the apple story is much bigger than china. >> gene, it's tim. how about just giving -- dropping services revenue and that percentage of the segment mix for apple and what -- it's hard for me to believe that apple intelligence or where we are in a world of a.i. and apple

devices that are now able to compute more, butobviously that this doesn't translate into software and services. what's your view, does this remain static? does this -- you know, does this pe piece of the pie grow? we know it's great margins. it's part of why apple is rerated. where do you go with services? >> if you take this approach that they're going to give away, if you look at just gpt and version one here, and eventually they will charge openai -- openai will charge for a premium version of gpt, but let's say 15% of iphone owners upgrade to that, that alone right there sets a very clear reasonable use case for a.i. here. that alone would add about $5 billion to $7 billion a year. and they're currently running at $100 billion. to put the numbers around this, think of this as a 5%, 7% impact around this first chapter around how services can be impacted by

a.i. >> gene, always great to speak with you. >> thank you. >> gene munster. we should note, by the way, that there was a report out today saying they might raise the price of the highest end iphone in order to subsidize a lower cost model, eventually, so, that's sort of out there, too. >> gene's take on china is kind of interesting. 2.2 billion install base. there's some estimates there's 300 million iphones in china. if baidu, to your point, we know that google is not there, we know that a lot of u.s. internet companies are not there. if it was baidu, that's something that was kind of reported on, kind of rumored, or whatever. baidu is kind of a screaming buy. it's trading at eight times, not a lot of expected growth. maybe 5% next year in eps. but a 59% gross margin company. and if you have access to that sort of install base in china, that could be an interesting

competitive advantage. >> yeah. julie? >> yeah, i agree, actually. i think the ability -- i think apple's positioning and its ability to leverage its user base such that everyone else can spend as much money as they want, the hyper scalers, all these guys, all the large language models, and we're actually going to charge you for the benefit of accessing our servers, i think that's a better business model than the uncertain use cases of a.i. that we've seen so far. coming up, jpmorgan at all-time highs. the big bank up 20% already this year. but will the second half be kind e as kind to the financial space? and check shares of tesla charging higher. don't go anywhere. more "fast money" in two. this is "fast money" with melissa lee right here on cnbc.

we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? (♪♪) (♪♪) what took you so long? i'm sorry, there was a long line at the thai place. you get the sauce i like? of course! you're the man! i wish. the future isn't scary. not investing in it is. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

the moment i met him i knew he was my soulmate. investment objectives, risks, charges, expenses "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. welcome back to "fast money." shares of jpmorgan hitting all-time highs today. the big banning up more than 20% so far this year, over 40% in the last 12 months. not the only big bank seeing strength today. goldman jumping 2.5%, closing within $10 of its record.

bank of america touching its highest level in more than two years. but will these names climb even higher? and a lot of banks came out with statements relating to the stress test and dividends and et cetera, so -- >> yeah, i think they can, and you talked about the performance of jpmorgan. in the year of a.i., jpmorgan has outperformed the s&p by 14%. that's incredible. i realize maybe a perfect place to put your dots down on a chart, but i'm just going back a year and i'm thinking about the market we've had, and it's been in a market that i think at times people really have questioned where banks are positioned. so, i know going into earnings in ten days, i don't really want to see the banks reaccelerate, but that's exactly what they've done. they're going to have a nice jump into earnings, and i think we're going to need to see both some guidance in terms of nims that is better. i think we are hearing bits and pieces, jpmorgan specifically at one of the investor conferences talked about their banking and

markets businesses have been a bit stronger. so, price to tangible book, not really that cheap. but at a time when banks are rerating, i think you stay in the money center banks, and i like citi and bank of america a little more. >> yeah, i agree. i don't like the setup going into earnings to have it run into earnings, that hasn't historically been good, but at a little under 12 1/2 times earnings, that's about the 15-year average, give or take. asset management, when the market's up, asset management, that's good, as well. we talk about a.i., and how it will make companies more efficient. i think banking is definitely one of those areas that we could see some efficiency and -- i like it right here. >> well, it's interesting. back on april 12th when they reported that q-1, stock's gone up 6.5%. investors were disappointed by net interest income. so, when you think about the ten-year yield, i'm using this as one basis, it was trading on april 1st, the start of this

quarter, at 4.2%, it went up 4.75%, ended the quarter down at 4.2% or so, you know what i mean? so, when you think about this, it's interesting to me, like, how are they going to guide? what happened in the quarter? and is it likely -- now the stock's much higher, i think they were at $196 when it reported on april 12th, went down to $180, now it's making new highs. so, to me, we know that jamie dimon has been somewhat cautious, you know what i mean, over the last year or two on a lot of these issues, so, this could be an interesting one to kind of set the tone for earnings season. >> julie, where do you stand? >> i agree with dan. i think hearing how jamie dimon talks about what goes on in the economy, he's been pretty gloomy, so, the backdrop for expectations for the economy should be pretty soft. the big question that i have is, what are banks doing in terms of reserves for credit losses? because i think we all kind of continue to worry about what's happening in credit markets, in commercial real estate, and

outside of that. that, to me, is the place where there is the most risk in the financial markets right now, that i don't think we talk about enough. all right, there's a lot more "fast money" to come. here's what's coming up next. we're plugging into tesla, as shares surge with deliveries on deck. why investors are charging into that stock ahead of those numbers, next. plus, after a strong first half, can stocks continue their big run? our next guest says it might be time to hedge your bets. why now may be the cheapest time to do it. you're watching "fast money," live from the nasdaq market site in times square. we're back right after this.

welcome back to "fast money." tesla shares surging to kick off the second half of the year, closing above its 200-day moving average for the first time since early january. the stock up five days in a row. this as investors await the ev maker's q-2 deliver is report tomorrow, which is expected to show a sizable year over year drop. phil lebeau has more ahead of the numbers. but it's allxpectations, phil. >> what's interesting, melissa, we usually see tesla shares move

higher, let's say, six to eight weeks ahead of a delivery report, a quarterly delivery report. but usually people are expecting an increase. that's not the case this time around. for the second quarter, the expectation is for 436,000 vehicles to be delivered. look where it was just a month ago. 448,000, and that's down compared to a year ago for point of reference, 466,000 vehicles were delivered. the full year, if you take a look at annual deliveries, the full year consensus for 2024 is now 1.82 million, roughly what they delivered last year. and in terms of global ev sales, this could be interesting to see what changes in the second quarter, because after the first quarter, tesla was still ahead of byd in terms of market share globally, well ahead of vo volkswagen, gm, and geely. don't forget, as you take a look at shares of tesla, we will get

the financials later this month. usually after they announce deliveries, melissa, they also say, on this date, whether it's july 24th, 25th, something like that, we'll be reporting financials, so, that's going to be the next catalyst, and, of course, the big cast talyst on august 8th is going to be robo taxi and that there. quietly, it has become one of the aspects of tesla that originally people would say, well, maybe some day this could really start to pay off. oh, it's paying off. and in terms of what people will be focused on, that will get a ton of attention, separate from the delivery number. >> yeah. and phil, there's some news on larry culp, it seems like he definitely will not be a new boeing ceo candidate. >> he has told me, he has told anybody who will listen that he is thrilled to stay at ge

aerospace. and -- can we go back to october 1st of 2018? look at shares of ge from the day he became ceo. they were gasping for air. so much debt. it was killing the company. he put together the plan to spin off first health care and then renewables, and now you look at where ge aerospace is, and he believes he's just scratching the surface, by the way. he's locked in through at least december 31st of 2027. potentially through 2028. and, again, every time i talk with him, he says, oh, we're just getting started. >> all right, phil, thank you. phil lebeau. so, two different ways we can go in terms of the trade here. where would you like to go? tesla? >> yeah. listen, this is one where -- i don't know if you know this, i haven't said this name in weeks. >> elon musk? >> the ceo -- >> no, tesla in general. to your guys point, i've seen estimates for deliveries come

down and down and down. you were talking about ex expec expectations, and it would have to be a disaster, below what the whisper number is for this stock to sort of have the reaction like it did last quarter. if you remember, it took a dump, to new all-time lows. so, it's up a lot right now, and so, to me, i think the big issue is, what is going to happen to margins? we won't see that for a few weeks. they have to buy down rates pretty aggressively. more than likely having to do that again in q-3, especially with the volatility of rates and where they are right now. and that's just going to weigh on margins, too. it's been a margin story and just losing share. and the thing about byd in china, they are, like, dragging down prices of this thing, which is also weighing on -- dragging down prices of evs globally. >> but the bulls will remain stead fast on the idea that tesla is not an auto story. you look at adam jonas' price target, it's $310. only 20% of the price target is

auto. $67 worth of that price target of $310 is for auto. the rest is, like, robo-taxi. >> what's the robo-taxi portion of that? >> i don't know what the breakdown is. the technology surrounding tesla e that, you know -- >> fsd, mainly. >> makes it different. >> that's great, but i think that was the story of two years ago. and i think that was largely, you know, we're still waiting. and doesn't mean that fsd can't be highly margin accretive. and you can probably count 50% of that sales to bottom line without doing anything else. i just think that it's all about relative expectations. that bar is so low, i think -- i mean, consensus may be where it is, i see a lot of people out there $410 to $420. either way, the stock's rallied in the face of that, because of other dynamics. doesn't make me bullish. i actually want to point out that tesla sits inside the xly in terms of consumer discretionary, if this was an opportunity -- i'm not doing a

would you rather, but if you ask me to take the trade into discretionary, i think the head fake on discretionary, if you're looking to that, because discretionary is really under a lot of pressure, and i don't know why -- i guess tesla belongs there. people can put it wherever they want to, but i just don't think you're chasing this tesla move, but i think expectations were so low. coming up, a new record close for the nasdaq, but after such a strong first half, can the tech heavy index continue to climb? chris bitterly will join us to lay out her thoughts and tell us why she says hedges could be key for investing by years' end. that's coming up when "fast money" returns. missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this. ga? yeah, it didn't cover everything when i got hurt. good thing i had aflac. (aflac duck) hmmm the cash i got from aflac helped pay for medical expenses,

groceries, rent. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. wish we had aflac on our team. you can! (♪♪) with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

with absorbine pro, so you won't miss an opportunity. pain won't hold you back from your passions. it's the only solution with two max-strength anesthetics to deliver the strongest numbing pain relief available. so, do your thing like a pro, pain-free. absorbine pro. welcome back to "fast money." stocks kicking off the second half in the green. the dow gaining 50 points, the ze and p up a quarter of a percent, and the nasdaq setting a new record at the close. shares of chewy rising as much as 10% early in the day, but finishing deep in the red. the initial bump coming after a regulatory filing showed roaring kitty had taken a 6.6% stake in

the pet e-commerce company. paramount shares lower. the media company is searching for a streaming partner, looking to merge its paramount plus market with another. and boeing surging after announcing buying spirit aerosystems. dave calhoun said bringing spirit in-house will fully align the work syforce. and the ten-year yield hitting the highest level since may. for more on treasury yields and the market, let's bring in kris bitterly, head of investments at citi global wealth. great to have you with us. >> great to see you. thank you so much. >> we've seen today stocks really do nothing in reaction to the rise in yields. we saw at least for today, kris. and i'm wondering, if we stay in a range, if it matters to how stocks perform, in your view. >> well, look, i think stocks have performed really well, even

with all volatility that we've seen. just the repricing that we've seen and rate cuts from the beginning of the year to where we're at now, you know, around two rate cuts by the end of this year. but i this ink the important th, this is the question that we're seeing, you know, given the fact that we have these indices hitting all-time highs, should i stay invested, andthis is where i think the hedging conversation is so important, because we actually believe that we're going to see a broadening out of earnings. we had 7 out of 11 sectors in q-4 last year that were in earnings recession. we anticipate that we're going to see 10 out of 11 sectors see earnings growth by the end of this year. we want to make sure investors are staying confidently invested. >> when you talk about hedging, are you recommending the hedg hedging, or are your clients wanting to hedge going into the second half? >> we're recommending the hedging. and it's really in response to

what we're seeing from investors of this idea of all-in or all-out. i'm all-in on the mag seven or rebalancing or entirely. or i'm all in on u.s.-equities or shifting into cash. we're recommending hedging, because volatility has been so muted. when we look at volatility, particularly at the index level, looking at the vix as a proxy, it's been relatively muted. what that means, some of the hedging strategies are also relatively cheap. so, if you're worried about whether the earnings growth story can continue, you're worried about the outcome of the election, you're worried about continued geopolitical tensions, this is an effective way to kind of get you through the next couple of months and maintain that exposure for which we think is a constructive environment for risk assets. >> kris, it's karen. i agree fully on the cheap protection right now, but i'm curious, the phenomenon of being

all-in or all-out. has that been a barometer of anything good in the past? >> i think it's just kind of human nature. you have markets hitting all-time highs, there is always a question of, you know, should i take some of the gains off the table? i think the challenge for it, though, particularly for u.s. investors, is there are a number of different dynamics that come into play, that could make people relatively -- create some inertia. the tax impact of rebalances, and what that means. so, i do think these types of strategies become particularly useful when you're weighing some of those cost benefits of what it would actually coast in terms of broadening out exposure. >> kris, great to speak with you, as as. >> great to see you, as well. thank you so much. >> kris bitterly, citi global wealth. what do you think in terms of earnings season and it being a catalyst? >> i'm looking at the options chain in spy, you can buy an at the money put in september 30th

expi expiration, that's going to get all q-2 for a little less than 2% at the money put. when you think about that, that's cheap as chips. and if you look at the qqq, where we know that those top six or seven names make up 45% or so of the weight, that would cost you, looking out, again, three months, 2.5% or so at the money put. so, if you are inclined to hedge, and you don't do it too frequently, that's pretty good here. i mean, the odds of kind of that being in the money at some point, especially if you have a portfolio that tracks either one of those etfs. >> do you think the cost to edge will be higher if you want to hedge through the election? >> yeah, no doubt. i think an election year specifically, presidential election year, especially when you have the chance of, you know, a sweep, one way or the other, you'll see, you know, hedging prices dial up a little bit. >> julie? >> right. agree. i think it's an opportunity right now to be able to, you know, protect the gains that a lot of people have put in, and to challenge for a lot of investors, especially retail

investors, they seek indexes to give them that kind of diversification. and they don't have that right now, because of the way they are structured. so, i think it makes a lot of sense to be able to at least lock in some of that protection for this quarter's earnings in particular. coming up, aws' ceo making headlines in a first on cnbc interview with jon fortt, as he completes his first month on the job. that's next. bucks looking to win back customers. more "faston" ghafr is.[door te [door creaks shut] (♪♪) (♪♪) (♪♪)

relax, you booked a vrbo. (♪♪)

welcome back to "fast money." amazon web services ceo matt garman coming up on the one month since he took over. cnbc's jon fortt sat down with him. >> for those customers, many of them that had their data in the cloud, they were able to move rapidly. customers that have their data organized, they've been able to move pretty fast. but the rest of those customers were maybe dragging their feet a little bit, they are saying, i have to get my data in a cloud.

>> "the wall street journal" reporting that aws is in talks to get power directly from constellation energy nuclear plants to power its a.i. growth. ceg jumping 6% on its highs of the day. aws one of many companies looking to power their data centers. they want to be green. they want a reliable source. they want to make sure they have the power, because the grid -- increasingly, data center is going to be a huge draw of power from the grid. >> it makes me think of ccj, is that one of yours? >> yeah. >> because with nuclear, right? nuclear is getting more and more exposure, no pun intended, we have bill gates doing a big mini nuclear, and if that becomes a more broad, you know, solution, it's got to be good for ccj. >> yeah, i think owning utilities here, also. you have to know which ones you own. if you look at some of the big ones that have had volatility in

the last couple years, especially around rate dynamics and just some sense of really what their cost structure is, i think there's a huge opportunity. if rates come down, that's great. if rates stay here. but there this is whole dynamic in terms of data center demand. this is all we hear about, if you are exposed on the chip side, the other infrastructure around it. that's a trend that continues to go higher. i think you follow utilities. >> data center supposed to be 8% of total power use by 2030, up from 3% currently. so, that's -- >> and from nowhere. >> still sounds low, 8%, but even 3% to 8% is big in magnitude. >> yeah, i would be really enthusiastic about kind of any resurgence in nuclear power as a card carrying french person, obviously. but it's really, really hard to get them built and there are a lot of challenges around that, so, the companies that will benefit most will be natural gas, because the data centers really need base load power they

can get 24/7. so, i think they'll be the big beneficiaries. >> right. the thing that we didn't mention, amazon hitting a new all-time high today, dan. >> yeah, i mean, like, they're benefitting, obviously, they've b been investing in their own language model, they're probably going to have every model in th their aws cloud. so, these guys have a great foothold in small and medium-sized business, which are going to be later to the game than large enterprises in general, so, they should benefit from this going forward. coming up, starbucks unleashing its latest weapon had in the battle to regain customers. inside the brand in new ordering system that could be the key to a rebound in the sckto. all that when "fast money" returns.

♪ i'm gonna hold you forever... ♪ ♪ i'll be there... ♪ ♪ you don't... ♪ ♪ you don't have to worry... ♪ ♪ (alarm sound) ♪ amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪

my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

the moment i met him i knew he was my soulmate. fund investment objectives, ri"soulmates.", soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection. therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. welcome back to "fast money." starbucks serving up some new strategies it hopes will get consumers sipping on lattes once again. can the changes improve the customer's experience and get the stock percolating again? kate rogers has more on the grande revamp. >> the new process is called the siren craft system. these are behind the scenes

changes meant to make a material difference. there's now a play caller role in place who steps away from production and helps to solve for log jams in cafes, like restocking cups. there's also changes to the order in which beverages are made. cold beverages were prioritized from start to finish. this could create traffic jams in drive-through, for example, if someone ordered one of each. the cold would come out first and you'd be waiting for the hot. the company says it's seen meaningful improvements. there's also an equipment component which will roll out an a smaller scale with a milk dispensing system and faster blenders that will reduce steps for baristas and get drinks out faster. this is key, as recent challenges led to starbucks cutting guidance in its last quarter. back over to you. >> they seem like shockingly simple things, kate, that should

have been in place already. you know, in terms of the prioritization of the cold, is that because it's a higher margin cup? >> some of the cold drinks have many more steps, and i was told that basically pulling the espresso shot would be the last part of that procedure, so, sometimes they'd have to pause and go make a cold beverage from start to finish and that, melissa, is where that equipment component will come in. in the next few years to come. that will be in 10% of stores by the end of this fiscal year. but that will also reduce the number of steps. so, basically, they're making the beverages in tandem, and they say, people are et being their drinks faster. and more people are coming in-store now, because the experience has been better so far. >> doesn't make it cheaper, though, does it? >> does not. so far. we'll see, next quarter coming up, we'll see what they say about pricing. >> kate, thank you. kate rogers. all right, so, one piece of the issue, one issue, which is the speed. >> the chaos in the stores. >> the chaos.

>> i don't -- it feels like it. and maybe that person that jumps off the line and kind of gifts in the -- >> the cups -- >> directs traffic, i think is important. the biggest issue is value or lack thereof. interesting that starbucks got into this pairings promotion. they are hearing it loud and clear. and they can't not be seeing it in terp terms of foot traffic. i think it's very important. i think what we're seeing, people are running out of gas. and i think it's a combination of both that their margins are higher, so they have to pass this on, but i think there's something that has to give. and i think these machines they have in the stores that are making it cup by cup are a problem. but that's a personal customer opinion, based upon not digging that very expensive cup of coffee that used to be, you know, a drip coffee, now it's made like a k-cup. >> out of a machine. like what we get here. no knock on the coffee here. >> exactly. >> free, too. >> it's free, too. >> if you look at the stock,

which had a little rally, it rallied right back up to the top of the downtrend. this stock has been in a downtrend for a long time. like a lot of other consumer discretionary and fast serve, quick serve, and restaurant stocks, i think you are getting it lower. don't buy it here. >> up next, final trades.

[crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪

final trade time. julie? >> tim brought up a good point about consumers struggling to find value. ollie's is a good place for them to do that. >> tim? >> decker. how many more pairs of uggs do

you need -- dan, you don't have any. certainly not many my house. going lower. >> karen? >> yeah, new three-day rule. the night of the event, day after, second day. that's where i bought some nike today. >> dan? >> more of a crocs guy here. look at baidu. >> all right, thank you for watching "fast." "mad money" "mad money" with jim cramer 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. i'm not here to make friends. i'm just here to try to help you make some money. my job is not to entertain, but to teach you. call me. there is a gaping hole in the american education system, although i hesitate to it call