the health care decision came down. >> i do have a wife here that says the u.s. supreme court says that it upholds the health care mandates. >> in essence, the court has upheld the individual mandate as a tax, but not a penalty. >> the candidates weighed in. >> the highest court in the land has now spoken. >> i disagree with the supreme court's decision. >> and investors ran for their lives. with stocks continuing their late june swoon. well, we always have our health. >> i'm in great shape. and obviously, you know, lacking it for a very long time. there will be a time when i'll slow down mentally. >> guy is ready to have the last

laugh in the second half. >> really? >> and b.k. is ready to refer to himself in the third person. >> b.k. agrees with the negotiator. >> fresh from the trading floor, this is "fast money." > let's get to the actions. nike drops as much as 10% after reporting lower than expected fourth quarter profits. it wasn't just the top and the bottom line that was troubling. it was what the country said about china, joe. >> yeah, and if i would have purchased the calls in nike, i would have been successful in having a consecutive day of entirely losing bad trades. but that being said, this is inkri incredibly surprising. it's incredibly disturbing ini the standpoint of seeing what's going on in china, seeing the orders come in at 2% when they're supposed to be up 15%. you have the euro cup.

you have the olympics going on. you would think things would get better from nike. you want it to stabilize over the next couple days. then you take a look at it and try and buy it. >> across the board, this nike report didn't look good. china was the worst of it. the biggest miss there. the one not so terrible but not brighter than the rest of the spots was north america, which was -- it didn't quite meet expectations but wasn't that far off. the rest of it looks terrible. this is bad for any european exposure, any retailer with significant european exposure and china exposure as well. >> yesterday you were saying you weren't in the stock, but you were going to watch this. what do you look for? >> a lot of times we'll say there's no read it through because it's a company specific problem. this seems to be a global economy slow down type of problem. not only that, nike talked about margin pressures, rising labor costs, all these things that are simply not good. you can look at other companies that say, yeah, labor prices are

going to be going up. our margins are going to get squeezed. we're just motnot making as muc around the world. it's not good all around, i guess. >> i don't mean to cut in, but just to bring out a name. i don't know where it's trading, but think about where yum must be on the back of all this. yum must be getting obliterated. again, this really brings what is going on in china back to the focal point. the currency continues to weaken. it's got to be problematic for those that have said, well, let's own companies with exposure to china. >> this is the sixth straight quarter of falling margins for the company. not just this one quarter. >> and karen touched on, i think, the reasons why. you continue to see these, i think, what are tremendous inventory builds. in this quarter, i think the inventory came in about $3.3 billion, which was up 20% year over year. as you see the inventory builds, it stands the margins to get

whacked. the stock trading now 86 or so. now you're some $30 off the highs we made pretty recently. i'm not saying nike is going to be a valued stock tomorrow. i think you're getting a lot closer. >> and a move in the after hours session. nike shares were at all-time highs in early may. wasn't too long ago where they were at highest ever. zach, i think -- i bet you're going to defend nike's china business. >> a lot of this weakness was telegraphed over the past weeks by people doing surveys both on the ground in china and in general. you're going to get a lot of these companies, nike in particular being the first one, showing that there was april, may, and early june weakness based on this whole set of stuff we're talking about. when you get nike at 86 coming off $30 a share in eight weeks, for a company that we know is going to be around for years, this is the kind of moment where i'm really interested in investing in this company. by investing, i mean that

old-fashioned let's buy this name for a longer haul because it sold off pretty heavily for a business they don't think is going to just -- this is not a rim story. we'll get to that later. >> i think one of the reports you were referring to was off the record research that came out with some channel checks indicating some weakness. a lock of excitement surrounding the new products. at the same time, it bothers me when people say it was so well telegraphed. >> exactly right. it wasn't telegraphed in terms of the stock. you make an excellent point. obviously sort of overlay this with some things you heard out of family dollar, which i'm sure we'll talk about later. we'll what you heard out of ford. the picture is not nearly as rosy as it was a couple weeks ago. with that said, here's the s&p that continues to sort of trade either side of this 13.25 level. it's anybody's guess now. i think you know where i stand. i think lower. it's choppy as i've seen in

quite some time. >> let's talk about ford. it's also a europe problem. the cfo saying international losses will triple in the third quarter. he's citing weaker euro demand. they may close an assembly plant in europe if it continues. just the pile keeps getting bigger when it comes to european concerns, and during the session we had jpmorgan coming out, cutting their price targets on i.t. companies citing weak european spending. you had citi downgrading the european sector. you string these togetheri and you have a market driven by europe. >> the more disturbing thing about ford is they talked about how it could go on for quite some time. when you start talking about closing down factories, you don't have a lot of great vision out there for the next year or two. then you talk about nike with the inventory build. now ford having spare inventory.

you extrapolate that into what, you know, the 830 gdp numbers were. you see a build in inventories, which is an addition to gdp. then at a 1.62% rate of gdp, you're starting to look like maybe flat gdp 3-q and 4-q. >> i think you have to call in to question the consumer discretionary trade. in the case of nike, you had rising costs that we were told would be able to be passed along to the consumer, but you're not seeing that evidence being displayed here in these earnings after hours. now you're looking at europe. you're in essence saying you have an entire zone that's in recession. you're looking at china and seeing a significant slow down. u.s. labor conditions are also slowing. it brings you back to consumers discretionaries ability to be resilient and talking about the markets today, it was one of the leading reasons why my consumer

discretionary exposure is less than it was coming into today. >> by the way, taking a check in the after hours session. ralph lauren, tiffany, coach, mcdom mcdonald's, all of these stocks are trading lower. meanwhile -- >> foot locker will be crushed. >> they'll likely deal with effects from nike. rim shares getting hammered after a dismal earnings reported. missing big on the top and bottom lines. they expect the next several quarters to continue to be challenging. they're cutting 5,000 jobs, delaying its next phone to the first quarter of 2013. that's a long ways away. >> it's a long ways away when you're hanging your entire future on that new phone coming out. but that's been their strategy for a while. delay the release forever and talk about no clarity. so nothing -- >> kudos to joe for not taking the bait at any time in this whole r.i.m. story.

here's an opportunity to trade it. clearly, the opportunity has only been to sell it. in good conscious, i can't say here at seven or wherever it's trading to sell it now. certain stocks, you get to a point where you just sort of say, you know what, i'm completely missing the story here. i can no longer talk about a positive or negative. you just sort of go away because it's clearly been a stock that's confused most of us, if not all. joe excluded in that. >> let's bring in the senior technology analyst that covers r.i.m. great to have you with us. >> thanks for having me on. >> do you feel like you're sandbagged at this point with r.i.m. management not only missing so badly on their earnings but also delaying the launch of the phone? these are things you would think you would hear in some sort of preannouncement. >> yeah, i think the key difference here now is this company is losing money, losing a lot of money. before that was still something they could hang their hat on. you know, sure we're losing share, but we're still profitable. now they have this really big

loss and likely going to be big losses going forward. i mean, that gets to a point where they have a limited amount of time. if they're not careful, they could look at bankruptcy. >> let me ask you this. there are those that will look at nike tonight at $7.50 and say this is an option. there's value in something within the company. does the global environment that continues to deteriorate, did that, in essence, deter finding and extracting what the value in this company will be? >> it certainly doesn't help. it depresses the value of r.i.m. and others, but particularly companies that aren't doing well. then right now because they're losing money, i think investors will be even less tolerant. we think there's still downside risk even from here. >> it seems like r.i.m. is on death watch. how much time do they have before they have to turn stuff around? are we talking six months, 18

months before they run out of cash and have to look at other options? >> yeah, we actually did look at that. we estimate that at the current run rate, they have about two years. so it depends. if they're not careful in cutting expenses, you know, it could be less than that. the other thing to keep in mind is with severance costs, these layoffs, it's not free. you have to pay severance costs. it's going to be a drain on cash as well. we'll have to monitor that. >> is there at this point some of the parts evaluation to r.i.m.? >> the last we did this, you know, when we gave some credit to the cash, which is roughly about $4 a share, you get a stock price of around $9. when you x out the cash, we're talking about potential downside to about 4 to $5. >> it sounds like you're telling investors to sell this thing. you got a neutral rating on the stock. >> the reason why it's been difficult in terms of a sell rating is there's always the risk of a potential take out.

but i think at this point, you know, arguably we probably should have had a sell rating. at least we didn't tell people to buy the stock. i feel grateful we didn't do that. >> thanks for joining us. we appreciate it. we want to go to scott nations on the option desk. if you were to rate the stock, what would it be? >> if i were to rate it? >> would it be a sell? >> what is below zero? i mean, just the conversation in the last ten minutes is fundamentally different than the conversation we've been having about r.i.m. for the last two years. for the last two years, we're thinking, what product is going to get the company turned around? you know, blackberry 10, how is that going to help? now it's, oh, my god, they're going to run out of cash in 18 to 24 months, which means the company is going to die. it's a completely different conversation following this earnings report than it was simply yesterday. and now the fact that they're going to delay the phone -- the company -- i don't know how you would trade this company other

than to buy a little bit of it with some mad money and put that away and hope, hope, which is a terrible investment thesis, that somebody comes out and decides they want to own some part of r.i.m. >> we want to move on to our next trade. that's europe. that's the other big story of the after hour session. we want to go to the latest. >> there's a break in the eu summit right now, which is why in the last 15 minutes we are getting a flurry of headlines. let me read you the latest just out under 30 seconds ago. dow jones quoting an anonymous italian official saying italy will not sign off until there's a deal reached on the bond proposal. let me give you some other headlines. we did get official comments from herman van rompuy.

there's an agreement to spend 120 million euros. van rompuy saying we are serious about single currency. he says that nearly every time he gives a news conference. they're going to discuss short-term proposals tomorrow. we've also seen tonight. that's going to be the bonds buying issue. the short-term proposals are what do you do in the meantime to calm the markets and bring down the interest rates. they've agreed to boost the eib capital. that's the european investment bank. that's the mechanism in which they spend those 120 billion euros, which is 10 billion euros less than what we thought it would be. the number had originally been 130 billion. van rompuy saying two countries are very keen on the shore-term measures, i.e. the bond buying. that would be spain and italy. we're getting reports on this anonymous official through dow

jones. they are interested in this bond buying program in order to help them with their yields. back to you. >> thank you for that. b.k., what do you make of this? it was a headline concerning market that moved the markets higher in the last hour. >> the key to europe is that short-term support. if they agree on something, it's going to take time to implement it. what do to you in the next six, 12 months to make sure italy and spain can access the market? that's the bond buying part. it looks like they're playing that game of chicken they played earlier this week. it was rumored that montee had said if we don't get bond buying, i will resign. that back fired. he denied it. looks like maybe now they're trying to play that game again. the bond buying is going to be the key. if you see bond buying then that is going to be a very bullish sign for the u.s. markets, for everything. that's the good news out of it. >> all right. we got to take a break here. coming up next, the supreme court's decision on health care. still to come, we're continuing to give you a winning strategy for the second half. jim keenan is findsing value in

three sectors in particular. you'll have to stick with us to find out what they are. much more "fast money" straight ahead.

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let's get to the main let's get to the main story of the day. that's the supreme court upholding the requirement that all americans acquire health insurance. the individual mandate. let's hit the big movers in the ruling managed dare stocks dropping. hospital stocks, though, surging on this decision because the thought there is that they will be reimbursed. they won't have as many losses from the uninsured here. >> you made a great point today on your morning show about is the trade over yet, or is the trade over. this is what you've been waiting for. it's an excellent point. we specifically talk abouted a a few names, hma being one of them. it's either going to six or eight. got pretty close to eight today. what now at 7.5? my pushback would be, although

now you're later in the trade, i still think there's opportunity here in hma. some stocks the trades have come and gone. i think there's still some upside. >> there's more mandated spending on health care. all of this trillions of dollars will be spend on health care. everybody will benefit to some degree. insurers will still benefit, even if unh is higher by 30% so far this year. >> yeah, but the hospital stocks are where the play are. you do have these 8% runs. if you have a gap up or a big run like this, you wait one or two days for a bit of a pullback. usual a 61% retracement. that's what i generally use. then you see a reversal. that's when you get in. i would be hard pressed to buy these tomorrow. i'd have to wait two days. >> i think we've made this an election issue itself. obviously when you break down the sectors, the hospitals look well, but you have to look at how the price section, as guy mentioned today, really was.

to that point, hca seemed to take and digest the news positively and have positive price action. community health, which i've talked about in the past, it went up, but i don't think it really performed concurrently as it should. in the medicaid space where you saw the coverages will be expanded, i think you take a look at agp, which is amerigroup. the price action traded con currently with the favorable news. >> let's go back to sam. we spoke to him on mondays ahead of this decision. sam, certainly a surprise. were there any surprise reactions within your portfolio? >> i think there was a legal surprise, of course, in terms of how the court ruled. there were sort of variations of it. one peculiar one is justice roberts said if it's a penalty, i have to throw this law out. if it's a tax, i like it. the commerce clause can't

prevail, but the tax clause can. let's just do it 5-4 in favor. we have obamacare in place. i think it will look a bit different as the months and years pass. but the stock price reactions in general, there wasn't much move of health care averages in general all added together. the subsectors did move. they moved as anticipated. hospitals higher, insurers lower, medical device lower. big pharma barely touched. bio tech down for other reasons. i think we'll see higher prices by year end in health care. >> so is the ruling in and of itself -- i mean, yes, it was a surprise. the ruling being done, being out there now, is that a catalyst in some respects in that it removes uncertainty from the group and therefore investors in general might be more willing to get it? maybe there are people on the sidelines waiting for this ruling to come out to remove the uncertainty from the industry. >> i fully believe that

uncertainty is removed. i fully believe now that it is removed, the stocks will do better. >> it's karen. let me ask you something. do you think that as the election gets closer and if there's some belief that romney may win that that uncertainty will return? because i think he's been fairly clear about looking to undo this. >> there could be some return of uncertainty, but i think it's extremely unlikely that the republicans would have enough votes in the senate to pull the whole thing apart and get it passed. so i really don't think that it will get past a filibuster. i think this is here to stay. the way it might be attacked by a republican win would be defunding the thing so that, you know, there's no mung around to put it in place. but it's kind of like a schoolyard fight. a couple guys beat each other up then they hug each other, the fight is over, and you move on to the next game. >> all right, sam. we're going to leave it there. great to have you back. >> have you ever gotten in a

fight in a schoolyard? >> of course not. my guess for you is yes. >> it's important. it's part of growing up. >> i don't know where you grew up. scott nations. >> melissa, are you asking why i grew up? >> no, no. your thoughts on health care. >> i get that a lot. the interesting thing, i think, in all of these names is that options got incredibly cheap after the aa nounsment. certainly in names that did well like hca. also in names that didn't do particularly well like well point and etna. for example, if you look at hca, the call was only up about 20 cents. if you're bullish, that's probably the way to play it. buy these much cheaper calls. next, we'll get an update from the r.i.m. conference call, plus we continue to cover the supreme court's ground breaking health care decision. stay tuned. ♪

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call. he joins us now with the latest. >> maine lis sarks the ceo says they're going to continue aggressively pushing blackberry 7 devices, trying to get people to upgrade. that's part of what's going to result in these losses. one of the things investors will be interested in, that's a bit of a challenge for them. their north america sales were up as a percentage of overall sales. it had been international sales that had been powering things. it appears they're having to do some of that discounting overseas. we talked about lower average selling prices on devices overseas. it seems like they've got fewer devices that they're putting through. they did say they sold 280 million playbook tablets, and they believe that they reduced inventory a bit on those playbook tablets out there. continuing a parade of bad news. >> john, has the q&a portion of the call started at all? >> that has not started yet. >> all right.

we'll check back with you. shaw joined us before. he said bankruptcy is now on the table for research in motion. who stands to benefit the most? >> i have to think there's a big piece of pie left. how can apple not benefit here? h this is a lot of customers to take. even r.i.m. is saying we have customer defections. >> i think the needle probably moves better for microsoft. with the enterprise part of it, i think they have an opportunity here. in the past, they haven't actually been able to execute that. there's a huge opportunity for microsoft and the stock. if you buy it, you still get a 3% dividends. >> the bottom line here is there really isn't a -- i mean, for apple or microsoft, gaining r.i.m.'s share, that doesn't moved needle. >> i don't agree. i think it does. >> so it is a trade. it's an actual trade you can make. >> i don't know.

>> you go to -- >> nokia. >> that actually might be, just for a trade, finally you might get a chance to buy nokia on the weakness of r.i.m. that is a total flyer at this point. >> at $2.11. >> yeah. >> at least it's a less expensive flyer. joe, what do you think? >> i think it's game, set, match. this was over a long time ago. really, the only one that benefits here is the shark that eventually swims in it and scoops this up as a ridiculously cheap value. >> our contrarian tonight, what would you do? >> i'm going to say there's a big difference. i want to make this clear in tone between r.i.m. dropping 15% based on what is clearly a dead franchise or nike dropping 12% based on what may be seasonal and regional and global weakness that is limited to the spring. just from a trade perspective, these are very different kinds

of drops. even though we're equally negative in this particular 20 minutes, these are completely different stock stories. >> okay. let's move on here at this point. today's supreme court ruling being touted as a big win for both president obama as well as the hospital stocks. joining us on the fast line with more on how the decision will impact the election and the market is ed mills, financial policy analyst at fbr capital markets. great to have you with us. it is clearly a win for the obama administration policy-wise. could it also be con trued as a win for romney in that it solidifies the base and makes republicans and people in general realize that the only way to turn this thing over is to change who is in office? >> absolutely. this decision today is a great win for president obama's legacy, but is a big negative for his re-election campaign. what you have done today is energized the base of the republican party yet again and given them a huge reason to get out to the polls and not only elect romney as president but a

republican congress to work with him. i think a lot of people looked at today's decision and thought this was going to be the end all, be all. but this is only the beginning of a long, protracted battle over obamacare. >> it seems like so far the sound bytes that have come out make a compelling case for the average american out. because this was upheld within the taxing authority of congress, this is in fact a tax on the american people at a time when you don't necessarily want to raise taxes. the national retail foundation coming out saying this will have a negative impact, a dramatic negative impact on every employer and employee in the u.s. and further constrain job growth. the sound bytes are all there. >> absolutely. it is heaven for congressional republicans to have this be called a tax. the republicans know how to message tax issues. they've had some trouble

messaging obamacare. democrats are not going to want to defend a tax. they've been kind of wanting to -- they want this bill, but they don't necessarily want to defend it. one thing about this, if this is a tax, we have all these tax issues at the end of the year with the fiscal cliff. now the fiscal cliff probably just got a whole lot steeper. >> ed, it's joe. let me preface this by saying medicaid stocks rallied today. the concern that investors should have that hold those stocks is this, medicaid coverage expansion survives, but yet states can opt out. do states opt out? >> no. i mean, this is going to -- you're looking at, you know -- the provision here is that over the first couple years you're going to have 17 million more americans join medicaid. for anyone who provides medicaid services, that's a huge win. the first couple years, the federal government is going to pay 100% of that. you may want to opt out for ideological reasons, but then you end up paying for it. the states are going to ultimately adopt it. over time, they might want to

pull back, but this is a huge win because they don't have to opt out of all of medicaid to get these funds. they can put these new individual things in. providers get the benefits. >> ed, we're going to leave it there. thank you for your time. back to the retail stocks. we saw a sell off across the board. the markets overall were pressured. do you think this has an impact, that health care cost will have an impact on retailers? >> i don't think a huge impact. i can understand why they would say it. why not? i actually don't. >> okay. coming up next, citi cutting expectations for the banks today, so should you too? we've go that trade. plus, an all-around strategy for the second half of the year. stick around to find out what sectors are sure bets. later, we're bringing you a very, very special edition of the trade of the day. stick around because our traders' top picks for the third quarter are live behind this curtain. we'll unveil those trades later

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welcome back welcome back to "fast money." we're live at the nasdaq narcotic site in new york city's times square. mike key missing on the top and

bottom line. that's a little troubling, especially when it comes to orders out of china. want to go to scott nations here. there were some pretty big trades in nike ahead of the earnings. >> that's right. there was a put sale. these expire late tomorrow. this was somebody who sold these for 76 cents thinking nike was no way going to get below 89.26. just as soon as you think it can't happen t will happen. that's what we see right now. later in the day, we saw 1500 of the july 95 strike puts get sold for $3. somebody's going to be paying $92 to buy the stock no matter where it closes tomorrow. >> wow. karen, in terms of foot locker, do you see any of the nike impact stocks as potential buying opportunities for you? >> it depends how much they trade down, obviously. foot locker is not an expensive stock, but the inventory issues and the futures are really bad. the only thing not so bad, that north america foot locker is

heavily north america, but they have meaningful. they have probably 25% european exposure. that's not going to be so good. >> all right. >> look at runder armour. that stock is probably getting whacked as well. ua is probably down around 86 or so in the after mark. there are going to be opportunities. i think you have to wait on both nke and ua. >> at some point nike will get very interesting. but not tomorrow. i don't think you need to rush in tomorrow. >> right. you can catch more options action tomorrow and every friday. all right. yields on corporate bonds climbing higher as companies continue to improve their balance sheets and stabilize debt while the yields on treasuries are hovering near all-time lows. joining us with this second half playbook is jim keenan. jim, great to have you with us. >> thanks. >> you are invested in auto parts. i want to start off with that because we did get news from

ford after the bell. saying there's weakness in europe and that international losses could triple in the third quarter. how does this impact your holdings, if at all? >> we're for investing on the debt side of the auto parts companies. some equity exposure. in general, a lot changes in the auto space in 2008 through the restructuring in general motors. a lot of these companies went through restructuring. i think ford is probably allu alluding to what many companies you're talking about are. growth globally is slowing down. anybody that's got a higher multiple on expectations, that either, a, is your latin america was going to drive growth. >> there's my question. high yield is high kweeyield fo reason. a lot of people that watch your show will buy. as a portfolio manager, how do you deal with that global slowdown in companies that might actually get hurt the most in a global slowdown?

>> obviously growth globally has slowed down. if you look in the short term, there's not a lot of drivers in the short term that are going to really drive growth. you might take away some tail risk. but what's going to drive growth in the short term? so we look at it right now, and we're looking at companies that have either a lot less leverage on balance sheet. we're looking at the loan market with secured debt, or we're looking at companies that have just more stable cash flow. either there's not as much volatility and competitive pricing. health care, cable. >> to that point, usually the debt market telegraphs where the equity market will go. i know a lot in the high yield space own sprint. is the turn around story with sprint real? >> so sprint is turning itself around. it's still got a long way to go with regards to the equity story. if you think about what they've done and the deal they did with apple, i mean, really they're trying to get competitive again. you talked a lot about a r.i.m. sprint is trying to sell product that clients want, that the

consumer wants again. that's going to cost money. that's an up front back. they had to borrow money. it's a great infrastructure. the equity story is really going to buy into the fact over the next three to five years s that ultimately going to turn around? sprint as an entity on the debt story is still a very viable company with cash flow. >> do you own the debt in sprint? >> a significant amount of the guaranteed notes. >> what's the yield on something like that? >> sprint has leverage finances a variety of parts. we own a big portion of what's called the guaranteed notes at sprint. that's at about 7%. you can go down in unsecured notes and pick up 100 to 150 basis points. mostly in the credit spread. loans and high yields have very limited durations. it's one of the things that makes it an attractive asset class in this environment in the sense that loans are floating rate, so really have no duration on the interest rate side. high yield trades with three to four years duration.

inherently in thes asset class itself, you're somewhat hedging duration on the long end. >> zach has a question for you, jim. >> jim, i totally agree on the telecom stuff. names like american tour and qwest. what about a name like jcpenney? i'm wondering what you think about those in this environment? >> right now the economy is slowing, right. you look at a company like jcpenney, and it's increasing with regards to its yield. it is a consumption company with a lot of competition. it's competing against a lot of retail stores, both online as well as other infrastructures like macy's. we look at their entire retail space. in the debt market, it just doesn't warrant a good risk reward right now. for a company like a wireless company you mentioned -- or american tower. we can go in and get similar

yields without taking the risk of the cash flow of the consumer in the retail market. >> all right, jim. we're going to leave it there. thanks so much for coming by. >> thank you. >> coming up next, the eu summit's underway, but there are plenty more events in the coming weeks that prove to be catalysts for the entire region. we'll tell you what should be on your radar and how you should be setting up for if all. much more straight ahead. [ male announcer ] trophies and awards lift you up. but they can also hold you back.

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coming up next hour, cramer is looking for winners with the supreme court ruling today. and broken stocks or broken companies? well, day one of the eu summit and the cancelled press conference by angela merkle is already driving markets. we were told to brace for continued european troubles. >> looking at the next week, i would be long volatility. i think the banks in spain own -- the three big ones own 180 billion in spanish bonds. those have gone from 108 to 92.5 in the last two weeks.

>> larry is the author of "a colossal failure of common sense." he joins us now. have you changed at all what you were expecting out of the summit given the market reaction? >> this is definitely a surprise. i think merkle's extending an olive branch to mr. holland. mr. holland did pretty well in the elections and the parliamentary elections, so they need to bring him on board. but at the ends of the day, it's $120 billion. in the u.s., we did a similar thing in 2008. inside the t.a.r.p. there was a growth package. it didn't do much. i think the most important parts are still the disappointment in the eu summit. there's no deposit guarantee scheme. there's no t-bills, no euro bonds. i think the eu summit is still a disappointment. >> larry, when he a headline that italy is refusing to sign the growth pack if they don't get bond buying program, which is similar to what you were talking about, the esm. how do you take that? i take it that they still are at

logger heads over this and it's a threat and they don't have any agreement. am i wrong on that? >> in some bizarre ways, this is the eeasiest market to trade because they constantly, constantly give equity investors hope. you're dealing with -- if you're along, you're really betting on these guys coming to and formalizing an agreement. there's so many moving parts that you really have to just sell the rallies and look at spanish bond yields. if they're above 6.75, i don't think you want to be long equities right here. you want those bond markets to calm down before anything. >> you have an ecb meeting coming up. anything that would lift the markets? >> that's the thing. i mean, i think going into today, this european summit looks so poor that it almost guarantees a rate cut on the 5th of july. so that's a positive. i think that, once again, the market still wants action in

terms of how -- spain has to issue $40 billion worth of paper in the next six months. how are they going to be able to do that? they have to answer the questions around the deposits. the targets and liabilities are a big problem. i know there's accounting around it. at the end of the day, banks in the south owe banks in the north about $1 trillion. >> all right, larry. i'm sure we'll bring you back to talk about europe again sometime in the near future. larry mcdonald of new edge. b.k., how are you trading it? the bottom line i heard from larry is things will be so bad at eu summit and nothing will happen it almost guarantees an ecb rate cut. is that positive for the euro? >> no, not necessarily. i actually haven't traded the euro. the way i'm trading this is via actually the u.s. stock market and tlt. if i see that they're going to buy bonds, like larry talked about, and keep those spanish yields below 6.75%, that's

bullish. if i don't see that, i'll be sure at u.s. stock market. coming up next, an unprecedented here at "fast money." behind that curtain lies a monster version of the trade of the day. our traders have gone shopping, traveling, searching for the best picks for the third quarter and beyond. second half, that is. we'll lift that curtain, reveal all the trades right after this break. you walk into a conventional mattress store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. we provide the exact individualization that your body needs. wow, that feels really good! once you experience it, there's no going back. and don't miss our special financing now through july 4th only. plus enjoy the lowest prices of the season on selected bed sets

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it is time for it is time for a very, very special edition of the trade of the day. it's not just one trade here we're giving you. it's the trades, plural, for the third quarter. we're going to start off with b.k. what's your trade? >> my trade for the third quarter will be dxj, which is probably an etf a lot of people don't use a lot, but it's the japan currency hedge equity index. japan is exposed to china. if they stimulate, japan should do well. the reason you want your currency hedge is because japan is going to print money. the yen will most likely get weaker. if you buy ewj, your positions will be devalued by the currency devaluation. if you buy dxj, it will follow the nikkei up and you won't have to worry about currencies.

>> what is this actually tracking, the stock market? >> it basically tracks the japanese stock market. >> guy. >> hello. >> hello. >> i wanted to stay in the health care topic. i'm going with an oldie but a goody. it's clearly an under the radar narm name. the name is cerner. it's been a great performer for a while. so cern is the symbol. it's basically digitized health care records. as the world progresses, which it should, cerner is at the forefront. people knock down this stock on evaluation, but they've done it for literally the last 40 or 50% in the name. i think it's a stock that has tremendous upside going forward. >> is it the second "r" that's difficult? >> cerner. you say it. you say it much better than i do. you're smarter. >> karen. >> it's a name we've talked about recently because of the downgrade, which is macy's in i know there's a lot of people

don't like macy's now. unemployment. maybe a little bit of this health care thing might weigh on it. what i like about macy's is it's a tremendously well-run company. devaluation here at ten times earnings. it hasn't stayed at this since '09. at that time, the balance sheet was a lot worse. it's a lot better now. i think that the global growth story is overdone. this is an entirely u.s. business. i like that about macy's. that's my trade of the second half. i guess it wouldn't be called the trade of the day. whatever. >> call it anything you want. joe. >> iphone 5. here's your mobile wallet. 1% of the world has field communication. i suspect they'll have it. nxpi, that's who puts the chips in. >> that's a dr. j one. >> i gave it to him. >> what does that mean, mobile wallet? >> you can put all your stuff on there.

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and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. o0 recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards. let's do what's best for our students-by investing in our teachers. let's solve this. let's take a let's take a few of the stories you'll want to watch tomorrow morning. two stories underlying concerns about global growth. shares of nike down