opportunity to get themselves back into the marketplace. great example today, i know we got the ceo on later, but juniper, this is the stock that came out. they had a huge run-in to their earnings. stock got crushed today, because they just didn't live up to everybody's expectations. the stock was down to $25. do you know where it finished? up on the day and almost $27 a share. giving you the idea that people are waiting for stocks where they've missed them, they want those opportunities. now, amazon today, you didn't see that. and part of the reason likely, karen addressed this last night, when you look at the p/e level of amazon, it's concerning versus ebay. ebay's were great and amazon more conservative. you didn't get people rushing in for amazon at a $50 p/e. but they click on the upside. >> we will be speaking to the ceo of juniper net works with "first on fast." let's look at american express, yesterday after the close sold off along with capital one financial, but today both of them finished higher on the

session. why is it that all of a sudden we can over look it? >> you cannot overlook the consumer concerns, because they're still there. i tell you what, next week use whatever you get, the market as an opportunity to scale out of things. because you know what's coming, august unemployment. it's a big ebb u. american express and capital one, what are you seeing? a handoff with credit quality. the concern is moving from the consumer loans to the commercial loans. wells fargo was clearly highlighted in the earnings release. if you look at the nonperforming asset growth for wells fargo, it was up about 50%. that is way above what jpmorgan, bank of america are showing. if you are holding commercial loans or jumbo loans, the exposure to commercial real estate, that's the concern. that's why american express and capital one look good. >> and you are also seeing short coverage. you look at the way the stocks traded. they thought the numbers would knock the guys to their butts and it didn't. i hate to be a broken record, but it is money chasing or

underweight or guys short that got scared. if you look at capital one's numbers, back to the fundamental side, year-over-year, up, that's second quarter '08 before they fell into the teeth of this problem. with these guys it's about the loan quality. not that bad. >> can we back it up? for american express, this is a name up 59% so far this year. you're saying that perhaps there are players out here that were short this name anticipating that finally the concerns about concerns about consumer credit and losses would catch up. they fell off a cliff in the after-hours session and then they -- >> the guys had probably missed some of this rally, or the other side. but either way there wasn't a lot of weakness once they got confirmation. no big surprise on the default. no big surprise. once you got that, you saw there wasn't something more, you jumped in and you bought it. >> once you came off of goldman sachs earnings, they were short covering across the board. forget micro names in particular, everyone started

covering short. it was led by shorts and over the past couple of days, mutual funds tried to get back in. >> there's no reason to go after the credit companies. it doesn't make any sense. why would you chase the stocks, american express and all the rest of them? go after visa. did you see the performance? transactions continue to work. ma as well, mastercard, still looks fantastic and why not go after those that have zero exposure, i mean just zero, transactions, when you have debt and credit. i love it. >> take the other side and i'll ask you a question. >> the reason why you go after american express and capital one and the whole short-short covering conversation, i think there's a whole name behind this thing. it's after the stress test, let's not forget, that was all short covering. if you look at american express and capital one, this is about getting back to normalized earnings which it looks like they will be a lot sooner than the market anticipated. >> i totally disagree. >> let's see how confident you are in this conviction.

if it is the case that perhaps we should not be -- >> liking to get very long? >> no, no, no. is the corollary to the argument that you start to get long and constructive in the retail names because all of a sudden you're not as concerned by the credit losses about the consumers, does that make you more constructive about the consumers and be able to go in the stores and buy? >> knopp. the difference is when i look at the retailer names i don't know that the federal government is behind their business model which basically the financial sector, the government, is supporting as we see with goldman sachs. it's supporting their business model. they are not doing that with the retailers. >> do you buy that? >> well, look, i think the banks that did well this week were the ones that actually took a little bit of risk and the ones that the were actually using government money, and that was goldman and morgan stanley which did not, which was the number we saw this week. i think the consumer through the labor numbers is very wounded. i don't think you'll see a strong retail-led recovery but we're talking about the banks and their balance sheet and if we're talking about american

express capital one because those are encouraging because we see stabilization. >> american express did say third quarter and fourth quarter write-offs were better than what analysts were forecasting. let's go to the chart of the day, this will shed light as to whether we should believe in the rally. if you take a look at advancers versus decliners on the s&p 500, whenever we spike up to the area here, if i can get this gray area. >> nice job. >> i tried to telestrate it here, it doesn't -- there it is! once you get up to the levels, once you advance to that level, we usually see a pullback on the market. steve grasso, you're on the floor, the line is up on the board all the time. is this an argument that you actually put money behind? >> it has been an argument. >> uh-huh. >> i have never seen a market like we've seen this week. it is unbelievable. for the last two books, you watched these hedge funds lay them out, lay them out, lay them out. even from the beginning of the week, they tried to break the market. they couldn't. i was 5-1 sells to buys. i reversed that yesterday and today. >> so, what does that mean?

>> it just means that it's different from any market that we've ever seen. it means at this point i don't think you'll see the pullback. the shorts that we've been talking about, the hedge funds, half said they believe the market is going to cave 70 points ago. >> and look at microsoft between the number last night, before we went to numbers at 3:00 yesterday and where it traded downpremarket, it was an 11% move. i jumped in premarket because the numbers weren't that ugly. they were second quarter numbers. we know all the good stuff happening with microsoft with the third and fourth quarter with the xbox and the rest. >> it hasn't done well the past decade. >> the cash flow and the balance sheet. >> the stock, the stock performance. take a look at the chart and it hasn't done that much. why does win 7 all of a sudden move the higher for microsoft. >> because they've been stuck in the vista vortex. they haven't been innovative on the product side and they haven't broken out. i would argue it has broken out

and it has responded to the exciting product launch cycle, that's why you can buy it. >> this to me, i don't know. >> in 12 hours that's the stock you buy. >> i tell you what we need to be careful of, we need to be careful of getting the pompoms out and it's okay. you are talking about the credit cards. the consumer is not okay. we've had a tremendous run. we had a big lift in the market. we wanted this catalyst. we wondered who would lead us this earnings season. it was goldman sachs and jpmorgan. and we've gotten good numbers from cat and all the rest of them, but as you get to the next level of earnings, i think you will have concerns out there. that's why you are seeing the kind of activity that you are seeing in the options pits, where you are seeing the puts. they are trying to get closer to the marketplace and buying the puts and getting the protection at the cheap volatility levels. we start to get to a pullback and you start to accelerate to the downside, steve, you will have guys selling, selling, selling. and that's the kind of market we could face over the next couple

of weeks, so let's be careful of the consumers buying. >> pete is right, it's not only about the consumer. what would take us higher is the corporate balance sheet. they are strong. go back to microsoft, i told you last night, you know my feelings on microsoft. you have to reduce your position. >> how do you define strong? >> the goal was to reduce the position in microsoft. when you look at microsoft they are still sitting with $30 billion in cash. what do you do now? july 30th is the financial analysts meeting. pete likes to listen to the guidance. i agree. listen on july 30th and see what they will do. at some point microsoft will come in and you may even see a stock buyback from microsoft. >> absolutely. there's no doubt in my mind that you'll see that. we talked about that on "halftime report" as well. but i still think you got to be concerned. microsoft still has to produce. windows 7 all suddenly the focus is on windows 7, windows 7. if this ends up being an egg, we got a problem. >> it is. and we've talked a although about it. but the entertainment side of the business has gone from 7% to

13%, the server side and the enterprise side is a big part of it, the corporate side. nobody on the desk is saying the consumers are the great place. what i would point to, microsoft that's a rear view mirror look at it, and if i wanted to own the stock an hour before the news came out, i was disappointed about the revenues and the businesses are good looking forward, why would i care about the second quarter revenue number when i'm excited? >> you wanted a pullback. we talked about it last night. i bought some today, too, on the pullback would you buy it? i still like it. but performancewise i go back to what you said, melissa, the performance has been lackluster. we had a great move recently. you look at the last several years, that chart is not -- >> that is why technology is leading us higher. because the technology balance sheets are so strong. everyone wanted to sell intel. everyone wanted to sell qualcomm, but look at google, it came back after earnings and could not get back, and

technology is remaining there. >> the leadership is name specific. because even though some guys have been buying microsoft, i haven't seen my funds buy it. i saw them buy amazon on the dip. i didn't see them buy microsoft. but i have seen in the space they gobbled them up today. >> the specific exactly it. whether it's the storage space or whether it's specific chips, it's not like every chip maker out there is suddenly great. intel is king. >> take a look at qualcomm numbers. down 90% on the profit side for the second quarter. >> there are differences out there. there are absolutely black and white. >> samsung reported today in korea, that does not trade over here, it trades in london. but they are the second number semi macher. they are huge. the second largest semiconductor producer in korea was also up, sending you a positive message going forward. i mean, it's not dare straire s. >> apple a major event. at what level would you recommend people get in if they

have not been in the stock? if they have fresh money and they want to catch apple. at what level? >> apple is clearly running away from everyone right now. what i'm looking for right now is, again, going back to august unemployment, i think going into that you are going to see the market soften. i think it would be prudent for people to take names that have run up so much off the table, heading into august unemployment. august unemployment, though, that may just be your opportunity to jump back into all these and reload. >> that's the biggest point. that's what knocked us off on the first rally. we were up above 900 and as soon as the unemployment came out, we rallied on goldman. >> suddenly they remembered. >> august 7th, that's the date. >> i think the takeaway here is don't chase it. don't chase apple. you might love apple. i love apple. i don't own it right now, because you can't chase these names. you always get a second opportunity in this market. we see it almost every single day. somewhere down the line, you got great opportunities to get back into research in motion. underneath $70 a share. every one of these stocks will give you a second chance. >> we know the labor market will

not improve until the middle part of next year even though we're pulling out of a recession. everyone will tell you don't have to wait until the numbers turn around before you start buying into the markets. i'm not worried about the labor numbers on august 7. i'm not that excited about the better than expected numbers. >> if you are trading this market, it behooves you to buy the dip. >> what the unemployment report does for you it probably provides a little bit of a pullback in the market. >> it's your opportunity to get in. >> and if the number comes out better, because soften it up. this could just add a little bit more conviction to the bulls here. so, i don't think it's going to, but certainly there is the possibility. >> get the giddyap out of pete najarian. >> let's move on. the next trade, wall street hopped aboard the bull market bandwagon with goldman sachs and credit suisse raising their forecast, and legg mason bill

miller has called a bottom to the market. we've heard from the bears, but if you think the bulls are for real, you'll want to hear what our next guest has to say. jeremy, great to have you with us. >> great to be here. >> you said earnings have been unambiguously positive. they beat expectations but are you concerned about the lack of revenue growth? >> no, i think this rally is because earnings are beating expectations which are relatively low and we have a relatively undervalued market. the rally has been driven by the two forces. the fact that revenue growth has really come in in line with expectations and the beat has been on the cost side is normal. we're in a recession. we're coming out of a recession. this is what companies should be doing. we wouldn't want companies to have bloated cost structures. we want companies to trim down the cost structure and be prepared to take advantage of the operating leverages once we come out of the recession. >> at what point, though, do you want to see the sales growth? at what point does it concern

you? because you say it's normal for now? at what point does it cause to it be abnormal? >> the thing that causes us to be a bit more positive in your equity allocation is the fact that we're seeing sequential revenue growth. the fact that year-on-year earnings growth is down is troubling, but what we need to see right now is q2 better than q1, unambiguously. earnings growth is up about 10% quarter-on-quarter and that's important right now. >> republican talks about a jobless recovery. right now the recovery in the market is investerless. investors are not wading into the market right now. the sentiment remains so overwhelmingly bearish. how do you think it plays in here going forward over the next three months? at what point do people step into the market? is it tied to unemployment? what gets them in? >> we're starting to see stabilization in the equity markets and we've seen a nice 44% rally and also further stabilization and further confirmation that the economy

has reached a true inflection point and we start to see growth instead of less bad numbers. i think we'll start to see it in the third and fourth quarter of this year. we're looking for gdp growth of 2% this year and that's a positive sign, a real difference over the past months. >> two asset classes i'm sure you advise your clients to look at is economies and emerging markets, where are we there? and in the cyclical nature and it speaks to what steve looks at, how are the allocations to the sectors? the thing that excites me about the market it's a small allocation of the profile of big institutions and if you get a little bit more, people talk about valuations but sometimes that doesn't matter if you see the flood of money? >> right now in the economic cycle when you go from weak economic data to less bad to eventually good economic data, you want to be in the emerging markets. and even within the -- our u.s. sector strategy, we're really focusing on a pro-cyclical and

pro-global strategy. we like energy. we like consumer discretionary for the cyclical nature and the tech trades have very reasonable valuations. the earnings growth will be superior to the market and i think that even though we've seen very strong year-to-date gains in tech, that's masking the big losses we saw the fourth quarter and year-end in tech. you need to look for semis -- or software trading at 14 times. hardware trading at 14 1/2 times the market is trading at 15 times. when you have them trading at a discount to the market especially given as you mentioned, clean balance sheets and stronger core growth because 57% of the growth comes from outside the u.s. and the deleveraging story in the u.s. households, i think that's where you want to see more security in your growth profile. >> jeremy, come back soon. and time now to see what's the buzz today around the trading floors according to "the new york post." just before bernie madoff was invested in palm beach, in --

where was he arrested? he was arrested here in new york. before he was arrested, he ran in to a pal, excuse me, in central park, saw him wearing two gold rolexes on one wrist. when he questioned bernie about it, bernie replied, i got to know what time it is in my london office. what do you think about that? bernie couldn't do the addition or the subtraction. >> it says something about the math. >> it says something about the brain, man, he needs two watches, come on? >> he doesn't have to worry about time in london anymore. >> he doesn't have to worry about time anymore, actually. coming up, 9 an interview with hyundai motors usa on a stellar quarter and your trading setup for next week's big oil. and the casinos are reporting as well. be back in a minute. the big friday show rolls on, while wall street's climbing on this bucking bull, will big earnings next week knock giddy investors to the turf?

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welcome back to "fast money," we're live at the nasdaq market site. positive news for automakers as ford surprises the street and starting today dealerships can sign up for the cash for clunkers program. are automakers in for better days ahead. joining us is the acting ceo and president of hyundai motor america. great to have you with us. >> melissa, great to be here. >> certainly we're operating in a very different landscape from a year ago. you have some major competitors who are now profitable, being ford, some others are emerging from bankruptcy with fewer debt obligations. is this a more challenging environment for you? >> no question. it's challenging for the reasons you mentioned. the competition is getting

stronger. chrysler and gm coming out of bankruptcy will be stronger competitors than ever, but we've managed to have ourselves a pretty good first half of the year. >> hey, john, it's tim. talking about your product release and everyone's talking about hybrids over here. where are you in that to compete in the short run? and i'd love to hear what you're seeing for the global car trade where hyundai has had record numbers and really outperforming in emerging markets. >> yeah, absolutely. so, we admit, we're a little bit -- we've been late to the hybrid game. we've been perfecting our technologies, but we think we've got a wonderful surprise up our sleeve. next year we'll be entering the market with our first u.s. market hybrid. and what we're doing is leaping from today's nickel metal high dried battery which is in every hybrid on the market past lithium ion batteries which are in tesla to your own laptop to something we call lithium polymer batteries, and that will be the battery technology showcase with the all-new sonata hybrid that we'll have this time

next year. >> that your own technology? >> yes. a lot of the current manufacturers in the market with hybrids have done a great job patent protecting their way around that technology, so it takes new entrants like ourselves to sometimes invent our own technology but we're there with our own proprietary technology. we're excited about it. >> being late to the game with hybrids is an advantage, you have other fossil-fuel cars that are fuel efficient at this point to offer consumers. how much are you banking on this hybrid business model really becoming a sizable part of your revenue? >> it's a great question, because the real issue that no one's solved in the industry yet on hybrids is how do you keep them affordable for consumers? even now, like with the great hybrids that are out there right now, we're not seeing an awful lot of demand from consumers with fuel prices where they are, right? so, our focus has been more on developing great technologies that everyone can afford. we're already the third most fuel-efficient automaker in the u.s., and we plan to be number

one in the industry on fuel economy by 2015. hybrids will play a role, but honestly not a major role in how we're going to achieve great fuel economy going forward. >> real quick, is there anything in the pipeline as far as diesel is concerned? we're seeing an explosion in diesel in every one of the foreign makers for sure. are you exploring that as well? >> the issue with diesels and what happened in the u.s. recently is almost every one of the automakers have canceled their diesel programs for the u.s. as we've all had to tighten our belt. diesel engine costs twice as much as a gasoline engine and then you have to throw another $1,000 or $2,000 into the exhaust system to clean up the tail people enough to meet current u.s. emission standards. so, by the time you're done, diesels need to have a $6,000 or $7,000 premium if you want to make the same kind of margin on a diesel car as on a gasoline car. that's why you are see folks stepping back from diesel, at least in the u.s. market. >> right. hyundai offered the cash for

clunkers program early by offering the rebate straight to your dealers. will we see it in the next batch of auto share reports, will we see you gaining share because of this boost? >> absolutely. in fact, we're seeing it already. so far, about 15% of our sales have come with cash for clunkers trade-ins, had is great. the wonderful news for american consumers is that cars we're getting as trades have on average 140,000 miles. they're old cars. they get on average about 16 miles per gallon. the new cars they're trading in to are more like 25 or 26 miles per gallon. we did a quick calculation, kind of back of the envelope. if the rest of the industry sees the kind of response that we've seen, american consumers will save about $170 million a year in gas savings alone. not to mention the fact that they'll be trading out of unsafe, older cars into new cars with six air bags and electronic stability control. it's good enough for the american consumer.

>> thanks so much for your time. we appreciate it. >> great to be here. oil rallying along with the market. but today's earnings out of schlumberger weighed them down. joining us is cio of caz investors, christopher zist. nice to see you. >> glad to be here. >> what is your expectation for the big, integrated names? >> i think you'll see the same. i think there eye-popping declines year-over-year. outlook will be tepid as they are not really excited about what's happening in the refining as well as the enp side between here and the end of the year. >> chris, it's joe. it's actually ironic that we segued from a conversation about efficient cars to oil. but looking at oil specifically, chevron, conoco phillips, exxonmobil, they have underperformed the price of oil. is it time now to not look at those big names as the play on oil? is there better plays on oil not

the big integrated names? >> i think there are a lot of better plays specifically that will correlate better to oil itself. the integrates are always the first. they're the easiest to get into, the most liquid, but i don't think they'll track as well as the enp companies or even oil service names to a certain extent. they will track much more what's happening in refining markets. the integrates will track much more what's happening in the gasoline market as opposed to necessarily strictly through the price of oil. >> so, chris, what is the best way right now to play the oil sector? is it actually to go into an oih which is going higher than the equities out there because the correlation is not real tight at this point? >> no, i like the oil service names over the enp just because the predictability and the -- what we seal is the downside protection. we like the oil service index quite a bit here. it's just recently broke out. we would be bullish on that as long as it can maintain the breakout. and we think it will trend higher to the end of the summer. >> thank you very much for your time. have a great weekend.

>> thank you. the financials are closing next week. they closed the week higher more than 27%. and, pete, this is name that you were watching. >> all week long it's been extremely active. you take a look at the shares, unbelievable volume. 30 million shares. way above normal. and you look at the options activity. all week they have been coming out just out of the money calls in august. earnings are next week. if you take a look at what happened with chubb and then you start to look at hartford, unbelievable. they were buying the august 13th, the 14th, 9 the 15th, all exceeding open interest during the week. today was an opportunity for those of us who were lucky to get in to take off some. but going into earnings, you still like hartford, incredible amount of activity even today. >> be careful, chubb is to me, they boasted about this on their call, they are so far ahead of the competition in terms of the quality. the confidence that essentially their customers have. people look at aig and all the other gives that have taken

t.a.r.p. money and they don't view chubb the same way and they don't stand alone. >> was it a concern that geithner when he was giving his testimony he would support more government regulation of the insurance industry? >> i think it's got to have -- always have some kind of effect. >> i was actually surprise the stock's held up. >> as a matter of fact, closed on their highs. it shows you how strong it is and how much the market believes in the names and the fact that the balance sheets are far stronger now, people are definitely looking at the names and saying maybe they are far too cheap, not a little bit, but far too cheap and still have plenty of upside. >> i would say the government regulation is the other part of balancing out the health trade, with the obama press conference, there will have to be compromise and it may mean spending more time going after the companies than raising the government's ante in the entire magilla. >> i like that term. the big tech selloff, we talked to the ceo of juniper networks. and why people are not trading big on macs and why

michael jackson is helping this name win big. we're back in a moment. on tonight's trader ra"trad this company was founded in 1921 providing equipment to radio operators aboard ships after some rough seas in the retail sector, this consumer electronics chane has started shaping up. >> they've gotten their balance sheet in good shape. >> the share rose at an upgrade on rbc capital. who is it? the answer when "fast money" returns.vi ou need? ou need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney. a new wealth management firm with over 130 years of experience.

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on the "trader radar tonight" radioshack, the electronics chain was among the most active on the nyse today. welcome back to "fast money." we're live. juniper net works, the leading supplier of net working equipment, reported second quarter earnings with receives into you down from last year. do they see tech spending improving in the second half of '09? here to set the market straight is juniper networks ceo kevin

johnson. thanks for joining us. >> hi. >> gross margins were an area of disappointment according to wall street and they say it's because you were trying to keep competitive on price in order to keep the business spending coming in to you. i'm curious because you're cautious our outlook. what is your outlook for gross margins given the environment, according to what you're seeing, isn't looking like it's improving significantly in the near term? >> well, certainly we saw quarter-on-quarter revenue growth of 3%, we expanded operating margins and as you pointed out gross margins were down a point or so. primarily it was three thing. number one was product mix. if we have a mix of products, chassises versus line cards. different gross margins. we invested with a new product on the market with more spares to help ensure we're delivering great customer satisfaction and there was discounting mainly in the service provider segment. but i think as we guide for the next quarter, you know, we believe we'll be back within our

range on gross margin. >> bernstein today came out with a note about spending in general. they're saying that juniper is at a near trough in earnings, but the service provider spending necessary to cause an acceleration in revenue in earnings is still one to two quarters away. would you say this is pretty much on the mark when it comes to what they see for your earnings being at a trough and what it sees for spending? >> well, we -- this last quarter we saw service provider revenue decline about one percentage point. i think we're bouncing on the bottom with service providers. the enterprise revenue grew 12% quarter-on-quarter. we're seeing good demand and strong growth in the enterprise. the sense is that, you know, look, over time service providers at internet traffic continues to double every two years, have got to make some capital investments to help -- to help handle that traffic, and it's just a matter of -- of when, not if. and we're -- we're continuing to manage to a set of principles we outlined at the beginning of the year, one of which was to assume

challenging economic conditions ahead, and we're operating against those principles. >> well, goldman today talked about your earnings per share bottomed. but i'm curious about the ibm. can you give us any more light on what's going on between yourselves and ibm? >> well, certainly we've had a long relationship with ibm. over the years we've worked with them on things related to silicon. most recently we started doing joint work on them around the data center architecture of the future with cloud-based compu computing and this week we announced that ibm will be selling ibm-branded switches and routers from juniper networks. that really is about our route to market in the enterprise. ibm has a phenomenal sales force and great relationships in the data center. the joint r&d work makes sense to provide the products through the ibm channel. they continue to resell juniper network's products, but in order to achieve scale, ibm is one of our partners to help us do that. >> thank you for joining us, kevin johnson, the ceo of

juniper networks. certainly this is a stock that has had quite a run so far this year. any buyers of this stock? >> goldman sachs just sold the conviction buy list -- not the conviction buy, they put a buy, $29 target. you'll get a lot of hot money chasing this. >> i like the international growth. it's gone from 16% to 13% to 25%. they talked about 338 million internet users in china. a whole lot of infrastructure and systems to jump on and help out. >> don't chase, pete? >> don't chase. it's at $27. i think the pullback was the opportunity. if you missed, there could be another opportunity. if we get the selloff that potentially the catalyst is out there that we don't continue the rise upward. i think you have a shot at $25. let's move it on to the names and the stocks that are making news this week. for "pops and drops," we quick it off with the pop, caterpillar, up 23%. >> caterpillar, i like bucyrus, and global. more of a commodity play.

caterpillar too much of a pokesure to the late-end cycle nonresidential construction market. >> pop for merck. grasso? >> >> anything that is associated with a watered-down health care reform, i'm a buyer. >> dropped big, 15% down after the second quarter earnings. the earnings were in line, but they had nonconforming loans. >> mickey "ds," pete's favorite. >> keep performing. the same-store sales were globally up 5%. the numbers weren't that bad, but not enough to push it through the level of $60. pullback, i think it's a great opportunity. >> a pop here for mark buehrle. the white sox, mark buehrle accomplished the first perfect game in the majors in five years, shutting dowfnl the tampa bay rays. this is the pitcher's second no-hitter and only the 18th perfect game in modern baseball history. >> can you give me one other perfect game? >> i don't know. >> how do you pitch a perfect game? >> come on! don larsen.

>> stocks, got to love the stocks. >> i'm kidding. that's not fair. >> that's not fair at all. >> you're a big baseball fan, melissa. >> i love the yanks. coming up, the obama health care reform faced a setback. what will it mean for the biotech and pharma stocks? >> check out pete next to obama in that lineup. >> i almost have a presidential feel when i'm there. >> yeah. stay tuned. we're back.ed the chevy open house. where getting a new vehicle is easy. because the price on the tag is the price you pay on remaining '08 and '09 models. you'll find low, straightforward pricing. it's simple. now get an '09 silverado xfe with an epa estimated 21 mpg highway for under 28 thousand after all offers. go to chevy.com/openhouse for more details. are enjoying the new palm pre with its revolutionary web os.

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we just heard today that, well, we may not be able to get the bill out of the senate by the end of august or the beginning of august. that's okay. i just want people to keep on working. i want to sign a bill. and i want it done by the end of this year. i want it done by the fall. >> that, of course, was the president responding to news that his health care reform bill had hit a major roadblock. excuse me. as congress announced it would not pass the bill before august, specifically the senate. pharma insurer names responded positively to the news. [ inaudible ] >> i think you have to, as you said earlier on the week, as soon as he starts running into a wall, president obama, as soon

as it starts getting more watered down, you got to buy the whole space. that's what we saw happen this whole week, right? >> you made a great point on the "halftime report," we love gridlock in the market. clearly gridlock is good for the market. >> they like gridlock when it means that congress is not going to write a huge check. >> checks and balances. >> clarification, they like. if you like gridlock, let's think about it, when president clinton was in office, he had for most of the time a republican congress. that's when you really see the best of both worlds get put into it. when one person has ultimate power, nobody likes to see that and the markets don't like it either. let's move on. we're talking about health care. one of the best traders of the week played right off of obama's proposed legislation. take a listen -- as earnings season kicked into high gear, our traders kept their eyes on the prize and tried to keep you quicker than the ticker. >> people look for the biggest player. unh is the biggest players.

i see money flowing into it. i see it play that way. >> as the health care reform stalled in the senate, grosso, the governor, played it. united health climbed 9%. >> intel is moving higher and it will take the market higher and it sets up nicely next week further into the earnings season. >> taking insight from intel. the market taking the mojo from the chip giant. the s&p soared 11% in the days following intel's earnings. discover financial, 5%, pete? >> the name last week that got a little bit of love. i like the name. still plenty of upside here. probably less exposure than what people initially thought and it's pushing the stock higher. >> set to charge higher, after it was said that discover financial was a buy, the stock soared 21%. >> dimond offshore is a name we love. they pay a special dividend coming up in july. they've been paying 4% to 6% a year. at the same time they've been

heavily beaten up from a tech standpoint. a great time to get in. >> drilling deep for this dividend trade, after it proved to be a dimond amond in the rou. it leaves a few words to sum it up, "fast money." for "fast fire," we drill our traders for calls gone cold. the pit bosses staying hungry for this name >> if china's got any kind of a recovery growth in the second half, the expansion of the planning, 500-some stores, i think yum! is a steal even at these levels even as it's run up this money, you can still buy it. >> earnings beat, but yum! fell 8%. pete? >> i love it. but i've got to take my medicine. unfortunately i bit on a chicken bone on this one. >> on july 13th, the ambassador telling you to get out of this korean name. >> the cracks in the asian growth, pkx. >> pkx jumped 17%.

tim? >> there's no letup in asia. we thought we would get a chance to short sum, but korea has beenic kicking butt. there's another economy growing in asia. >> we'll leave it there. a couple people on this desk got spared. but don't go away, we're heading to the options pit for trading after dark with scott nations. back in a minute. [ engine revving ]

[ engine powers down ] gentlemen, you booked your hotels on orbitz. well, the price went down, so you're all getting a check thanks. for the difference. except for you -- you didn't book with orbitz, so you're not getting a check. well, i think we've all learned a valuable lesson today. good day, gentlemen. thanks a lot. thank you. introducing hotel price assurance, where if another orbitz customer books the same hotel for less, we send you a check for the difference, automatically.

money." we're live at the nasdaq market site in the heart of new york.

time now for the "fast money" poll of the day, and the nasdaq unable to continue its 12-day winning streak can the rally continue without tech participation? "a," yes. "b," no. >> how many times can i vote? >> nothing in between. logon to fastmoney.cnbc.com. and tell us what you think. time now for "trading after dark." let's head to the options pit in chicago with scott nations, president of nation share an options action trader. scott? >> my goodness. >> all kidding aside. >> scott, loosen your tie. >> heading into next week, do the pharma names have a lot to do with it? >> you talked about it before, it's talking about obama. we like the logjam but not the risk. one way to play this is pfizer is a great name. it hasn't participated in the rally like it should have. it's actually still lower on the year. we can buy the stock.

we can color it up, buy the stock and buy puts or make the broker cry and execute one trade. i like to buy the $15 call with the stock at $16.50. if it goes up, we participate. all we've done is pay for the call. we get to participate and avoid some of the risks. we'll have the story for the obama plan by december, that's the trade i like. >> all right. scott, thanks so much for that great idea. good music, huh? >> i'm feeling good. i'm feeling relaxed. >> wait until we see more of scott. >> you can see more of scott tonight "options action" at 11:30 p.m. right here on cnbc. >> you as well? >> me as well. but the options action traders, they are the draw. we'll have the "fine traal " after this.

i'm sorry. i can't hear you very well.

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$166. not bad, warren. time now for the "final trade." tim? >> we talked about the integr e integrates. they are cheap to the s&p 500, they look good. >> the best production growth, reports next week. >> kroger found a bottom at $21.50. that's what you use as your point of reference. go in and buy kroger. >> the integrated names are reporting next we are, total, i love dp. you got to love the name going forward. >> give me a giddyap. >> giddyap! >> good friday, giddyap. i'm melissa lee, thanks so much for watching us. watch an instant replay at 11:00 p.m. followed by "options action" at 11:30. you'll be in great hands next week. we'll be back live at 5:00 on monday. have a great week, everybody.

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well, i think we've all learned a valuable lesson today. good day, gentlemen. thanks a lot. thank you. introducing hotel price assurance, where if another orbitz customer books the same hotel for less, we send you a check for the difference, automatically.

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to my world. you need to get in the game! go out of business, and he's nuts! they're nuts! they know nothing! i always like to say there's a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer, welcome to "mad money"! welcome to cramerica. other people make friends and kick back friday night, not the least bit interested. i'm just getting fired up. i want to make you some money. my job is not only to entertain you, it's to educate you. so call me. we should have been down today. we should have been down big today. when microsoft still the world's largest software company, amazon, the world's largest online retailer, and american express, the world's most prestigious credit card company, hey, take it from me, don't leave home without it. when they all disappoint.

you'd think the market would get absolutely obliterated! i mean, hammered beyond recognition! and after the huge run we've had, you would at least expect a garden variety selloff. >> sell, sell, sell! >> sell, sell, sell! >> when i left here last night, my e-mail box was filled with messages predicting the coming armageddon. >> ahh! >> the nasdaq goddash darn damn them. >> i advocated that people -- >> buy, buy, buy! -- >> at the opening, i was immediately cybertasered at the mere rad of people that read and contribute to that site. then this morning, at 4:20 a.m., not long after iok