down mondays in the market. what happens on tuesday? >> it is turn around tuesday. we have had six tuesdays to the up side to follow the down monday. >> fast money is up next. >> stock investors frozen by fear. fear of europe? >> going round and round in circles which is what i am tempting to say and is beginning to resemble a giant scheme. >> i am not proposing anything radical here. i believe that anybody making over $250,000 a year should go back to the income tax rates we were paying under bill clinton. >> and fear of an earnings season that begins with alcoa. >> live from the nasdaq market

site in new york city's time square. let's get straight to the next big event. that is earnings season. alcoa kicking things off. the conference call is underway right now. has not given guidance. in the meantime the stock is trading higher. >> hi. >> hello. >> good to see you. >> look at the automobiles and airplanes and ipad cases. what can we do? >> it was an encouraging quarter. the stock action in the aftermath is not as good as i think it should be but i think you can glean that it was not a train wreck. i think in terms of trading the stock, alcoa has a pretty defined range, low end being around 8 bucks. it's obviously had a difficult year. if you are looking to trade the stock, you have a good jump off point from the levels that we have traded today. solid quarter. i think it surprised some

people. they didn't say anything that negative. you saw what was done in the closing bell. with an eight and a half stop, it is an interesting trade. >>est matds have been able to come down 44%. >> analysts have lowered their estimates. if you want to dive into the market, are these estimates low enough? and i don't think they are. you will see a lot of disappoint tmentes. >> their bigger problem is the upstream. prices have been terrible. they are competing with china.

>> he has talked about this in the past. talking about he thinks it is something close to seven%. last week when they talked about some of the 20 year projeks when you talked about how outlook. it is an amazingly far out way to try to project. then you look at where will they do things well. for a lot of reasons, i look at it as a positive way. i never have. very often it is a block order. from the projections we got and the numbers we gave and the revenue, i think this is a pretty solid quarter. i tend to move away from you. i think we might see better earnings than people expect. >> we have to point out the fabricating business.

you see the raise of hope with alcoa. look at global growth. let's look at it as a macro condition. there is no one excited about sub 2% growth. >> if you are questioning alcoa. if you are optimistic, you are probably optimistic about coal. 5. >> i don't know i have never thought of. the earnings said that there is the expectation. have they been ratcheted down already. i think for some of these things, they actually have. the bar is low enough where it does not take a stellar quarter to do fine.

>> moving on, amd falling as much as 6%. it sees revenues down because of china you see the stock reaction there. you have got to take a look. i would imagine a lot of the other chips. i think that amd is its own animal. my sense is that the shorts will take an opportunity to lean into the stock again. i think it is a completely different animal than intel. >> we want to break in. a stock that has been wip sawed around a lot lately. i wonder if you think this

augusters more to come in this space given the compression that we have seen because of nat gas prices being so low. >> the coal companies are probably the ones that will benefit if people are switching to nat gas. i would say that it is probably stifled here at about $3. outside of that, you will see pressure continued. >> last week, we actually had bullish activity. then it started to trade around interestingly the rest of the week. there was a lot of bullish sentiment.

>> continue to monitor the story. filing for bankruptcy. they are gleaming specially. >> i think sit a much better company as well. i think that's your opportunity. it is foolish. >> which chip stock would you get? >> intel, i already own it and i would consider adding to it again. now again with apple, they are involved in the server chip market as well.

it does not mean there won't be some bumps. >> dell was down 2%. >> it just hit last week. everybody is worried about hewlitt pack ard. >> what is keeping you from throwing in the towel at this point. >> just time decay on options. they will go away. she has said all the right things. this will take some time. it is certainly a longer term

story. >> it is an evaluation. >> let's move on to shares of visa and mastercard trading lower today. analysts said the new ratings are based on weakening consumer spending. the price is very high right now. john williams is the analyst behind the call. great to have you with us. >> appreciate it. >> in terms of visa and mastercard, was the jobs report sort of the last straw at this point? >> not explicitly. it was a series of data points that have indicated that global growth is definitely slowing. >> let me ask you something.

there is consumer growth slowing down. the penetration of electronic payments and visa and mastercard specifically is what we are talking about here. as you see the proliferation of things like square or pay anywhere, do you see that as able to make up some of the growth? >> sure. just to be clear. a lot of our call is a function of what is going on macro-wise. our point right now is that everybody seems to love the stocks, everybody owns the stocks and really what is left to buy. >> probably spot on. let me ask you this. years ago, i think 65, 70% of all transactions were with cash and it has flipped towards

plastic. where does that number continue to go to? in other words at what percentage can plastic transactions reach in the years to come? >> i would like to think that they can reach close to 100%. i don't think that happens any time soon. >> one more question as a mastercard holder, i hope that it's wrong. where do you have stocks holding? >> we're about 10% on the downside or so. this is by no means either of them are broken companies or stories. we don't necessarily like the macro set up. >> we're going to leave it

there. when he says incredital buyers, do you buy that? >> you know what? he was neutral before stocks have jumped all the way up. now he is putting it at a cell. i have to disagree. i see the global markets moving much more towards the transactions electronically. it seems to me when you are moving into the plastics, continuing to see there should be a transaction base that i think will grow for him. i would look for this name. >> it is interesting. >> in terms of mastercard it put

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>> >> traders hate to be long volatility this time of the year. it just tends to melt away. we saw well over two points in the trade for each call. that is much more bearish than we would normally see.

every single one of the 20 biggest trades today, every one of the 20 biggest was a put so people are using the fact that the vix is below 18 to buy some protection in earnings and slowing china. >> we're sitting around the 13.50 level. it likely -- could it not just be protek. >> i think where the vix is and where applied volatility is, you can't be wrong buying protection here. it's like saying i am sorry that i bought that life insurance because it didn't pay off. >> all right. from europe to earnings, it is

tyke to look ahead. joining us is joe, business insider deputy editor. thanks for joining me. >> i actually think the interesting thing in europe is there is basically nothing scheduled. we have gotten on this routine of crisis meetings and bilateral meetings. right now we saw yields shoot up. we don't see how it will end. what will be the action that cuts this down. >> are there any debt sales coming up? >> i don't remember. and they -- six month bill of sale and the yields went

negative. during the worst of it there was a question whether france was more germany or italy. right now they are not going to win. finally europe takes its action. france seems to be in the club. >> france is the new germany. earnings also take center stage. >> lit be interesting. consumer popularity. i am always interested in seeing earning earnings. that will be a huge topic all week. >> the big news is one came out

and said this perfect storm taking place now. which side of the camp do you come down on? there seems to be some truth to it? >> certainly in 2013, the potential triggers and so fourth could be huge. they find a way to resolve these things. i can't explain it or explain how europe will resolve. it seems like in the end the worst case scenario doesn't happen. not quite as negative. >> time now for pops and drops. the movers you want to miss in today's session. >> it took a bit of a hit there.

>> the stock did drop to the 50 and closed beneath the 50. i have been high on the stock. but it seems to want to hold high. >> got a drop on dollar tree. >> it was down on a downgrade. the stocks had a stellar run. but 21, 22 times earnings a little rich for me. >> boston beer down 6%. >> it was ubs also that downgraded sam. >> a record 1 billion hours in june. >> i still feel i don't have an edge in the name. >> it has been an incredible move in the last couple of days.

>> a pop here for facebook. up 1%. >> it's 1999 again. face book up because it will be the new hot jobs.com. >> thomas knows something about penny pinching. he recently cashed in his collection. his coins weighed more than 50,000 pounds. it took two days to unwrap all of those pennies. >> somebody said that. >> someone must have said that because it was said. >> ben franklin. smart man. >> i will go with ben franklin. >> it was not nathan hill.

>> our ignorance is on full display here. >> stock on fire lately. we will talk to the company ceo to find out if the rally is poised to continue. stick around to find out what stellar idea our own kate boss has dialed up tonight. you can only find out what it is by staying tuned. more fast up next.

>> rebounding from friday's sharp losses. one day dollar and percentage fwan in three weeks. let's bring in the old commodities king. >> otherwise you would be the former commodities gain and no longer the current king. >> nat gas, where is it going? >> i suspect we can get up to $4, maybe $4.50. >> it'ses astonishing what we he been able to do.

the shale formations. >> you can't do that with nat gas. it requires a specialized shipping formation and specialized transmission point to get it to accomplish it. yes they have $16 nat gas in japan. >> you do like lng but it seems like a lot has to happen.

>> you have to get a lot more ships. tried it ten or 15 years ago and quit. decided they would rather make air carriers. these are expensive ships and then having to have them come to a specific port, take that nat gas, freeze it, take it down to minus 150 degrees below zero. >> just to cut you off lonl because i am long. >> even in a world where there is plenty of hoops and hurdles. >> it has traded perfectly on a technical basis. >> if you're going to play nat

gas, that is the place to play it. they are the only ones that have the ability to move it and the permits to move it. >> the company is owned by the shareholders. do you think that the worst is over. >> nast the other, as far as i am concerned, the other bet. a huge amount of bad news. a stock going down. when you listen about nat gas

and moving it from your house into your automobile, that would allow a car with a flip of a switch, very impressive. those are the two plays. >> dennis, real quick, in that nat gas, the fact that it is so low, do you ever look at the dritives play off of that? as far as the low gas prices right now? >> you're smarter than i am. >> they have done very, very well. >> and well they should. people don't realize the major component in the creation of night general is natural gas. it seems like it is up but seems

it is uncommonly inexpensive here. >> always good to be seen. >> nat gas prices seeing volatility this year. flagged the break out for us. >> they are actually bringing water through pipelines. it's not moving the needle now hugely. you will see a bigger piece of the pie here. it looks amazing. >> chairman and ceo. always good to see you. >> i want to talk to you about this pvr water services. there are a lot of analyst

estimates out there. even that analyst is a little skeptical. give us a hint whether or not you are on track for that goal. >> we are trying to be very conservative. you can't tell how much drilling will occur. i think in ten years, natural gas will run our economy both autos, power plants, and of course home heating. >> is there a direct correlation between that and the amount of money you make? >> we make money bringing water and charging per gallon. if they're not drilling they are not using water. we need drilling and higher prices mean more drilling. we think there are tens to hundreds of years of natural gas reserve in pennsylvania, ohio,

and texas. >> i saw this chart was break out from what is call ed is it e were all looking for gold to be the safety trade. >> if you look at our record, over 5 years, 30%. we have welcome back been a consistent per forformer. i have to attribute that to the product we sell. and the fact that we're on our way to our 13th straight year of record earnings. >> not a ton of cash on the balance sheet.

is this the kind of cash flow we will see going forward for a while? >> we are levelizing now. investment is the way in the regulated utility business that you earn money for your shareholders. we have not floated stock in over 30 years. we are using retained earnings. >> how important is the water supply. what percentage will it be in 2012 and then in five years? >> as more and more wells are drilled, the pipeline gets further and further. we are looking eventually to be to about 60 miles on the one drilling area.

what you keep doing is extending the pipeline. it has environmental and economic impacts. >> most analysts have it for a penny or two and i am comfortable with that. >> 52 week high in today's session. >> and it is in their unregulated side of the business. but they are using their skill set to do all the other things. it's the trucks that a lot of people have problems with. you don't see the trucks. many only want to know about this. this is where the mind set is among the investment community.

>> as we head to break, a special programming note. be sure to tune into squawk box. we will be live starting at 7:30 a.m. wow. >> third in the world series of poker. >> wow. >> getty up. and all of that money goes to charity. forget spain, we heard fast money holding our own bull run. stay tuned to hear from one analyst who is still making the case for one of the most battered stocks on the street. more fast after this. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use

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let's solve this.

>> welcome >> welcome back. we are live in new york's time square. cyber espionage is a growing problem as hackers steal trade secrets. most of which goes undetected or unreported. david? >> thanks very much. sit a threat that no company is immune from.

experts we spoke to say china, their effort is the most aggressive. the cost to american business is almost impossible to pinpoint but it is the individual tales of research and development stolen without a trace that makes this threat so serious. >> we had one company that lost ten years worth of r&d worth $1 billion basically overnight. >> as a senior agent, shawn henry has seen firsthand the damage that has been done. >> i'm afraid it's going to take the equivalent of an electronic plane flying into a building before people take this seriously. >> and experts say many companies have yet to wake up to the threat of infiltrations taking place. investors in these companies

don't hear much about the breaches because not many companies are willing to admit to it. >> it is amazing how brazen these hackers have become. a lot of the biggest tech names have been breached. >> that is correct. sometime back, operation aurora it has been dubbed. one of the guys went in and investigated that. there were dozens of other companies that also suffered significant losses of data and never came forward. >> we look forward to it. thanks so much. catch the premier of the documentary tonight at 9:00 p.m. only on cnbc. rick today lowered the

estimates. >> if you look at the way the stock has traded, it has been awful. i think the names are interesting but the stock performance would lead you to believe otherwise. >> all right. shares of chip maker. intel agreed to buy 10% for $2.1 billion. you see there, the spike in the afterhours session. let's bring in the activity in intel this is interesting because it was bearish activity and this was before the amd news hit earlier. >> that is right. there was a bunch of interesting put buying. we saw a buyer of $7 paid $1.01.

they have got see intel get down to $24.99 for this to break even. this was part of a bigger strad. they also bought a ton of the august 23 puts. paid 17 cents for these. somebody had the direction right today. >> all right. you let that get away from you? >> i love it. i will say the open interests there are still extremely large. it did not dent through. but certainly today they could be rewarded tomorrow. i would be rewarded if it gets pounded down. >> with catch more options action every friday. coming up next from china to

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>> >> next hour on mad money, you will pick the winner by tweeting. >> running of the bulls. we have got our own bull run this week, too. talking to analysts who are putting their necks out. we're looking at nokia. that's not shaking our next guest from his buy rating on the stock. james townsend joins us on the fast line. >> it's great to be here. >> the ceo made interesting comments. one being that it's a marketing problem but there is no problem here. that seemed to really worry investors. do you think the course will bring the company back? >> i hope both. i think it will be a gradual

process. it has been bloody up until now. i work closely with a company which is one of the leading market research firms. they have been in my ear for sometime about the technical qualities. and i have been very concerned about the decline. the operating system that noqia has been heavily relied on. but as that disappears and we start to see them do better, i think there is an opportunity here for the battered and bruised stock to do better. >> your buy rating is predicated on a turn in the company's own business and organic turn around as opposed to another force or acquisition of the company. >> most definitely. i think the massive talk we see out there about somebody coming along and buying either company is probably misguided.

i think the opportunity is still internal. the combination of working with microsoft i think is critical to the potential for them to turn this sad story around. >> in your model, when do you see them becoming, if at all, becoming profitable in terms of eps? >> i don't have that lel vel of detail. even though i think the momentum is going to be good starting this quarter and certainly as we go forward. from my standpoint looking at the stock, i am focused more on when people begin to see enough momentum from their good products. >> all right. great to speak with you. thanks for sharing your views.

peter, are you seeing any evidence? maybe it is an option. maybe somebody has taken a flier on this. >> i have not seen. >> i look at them and part of the problem i think for nokia i think they have got to be more competitive on the pricing. >> you recently got rid of your nokia phone? >> yes. >> excellent looking forward.

>> how we st and arrange for the euro at this point. >> we have. a couple weeks ago we were trading for the figure. now we're trading 124, the figure at the top of the range. i think we're largely going to stay in that trading range because we're not going to get a lot of new news out. they are 7% for the ten year. i short euro at the top of the range. >> the trade that you bring to us was tha was shorting aussie versus the yen. this is a play on what may happen in china. >> that's true.

we have a lot of china data out. as you mentioned, the primary data point being out. i expect it to come in lower year on year down from 8.1 so quite a slow down. and we get some important aussie data. this will be the june report that is released. so compliments of both should weigh on. i would like to short the australian dollar against the yen. this would be risk off on global growth. if we take a look at the trade levels, a short trade around 81, the figure. i'm looking for a move down to $78.50 and i have a stop at 82.35. >> good to see you. we're just minutes away from revealing our trade of the day. it is one that is so good that it will make you want to call up your friends and family. i don't spend money on gasoline.

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>> >> time for the final trade. scott? >> obviously no audio. >> steve. >> leapfrog. it was headlined risk on friday. full disclosure, i'm long, waiting for a pull back. >> west lake chemical. >> kbo with voda