feel that the market is not rigged though. scott london was arraigned last night. we still don't know what shaw will be charged with, but a deal or no deal, his business should not be diminished. we'll take a break. we want you to know that we are beginning next week's big earning story with a big comeback at the end of the day. the dow flat at 14,865. "fast money" begins now. have a nice weekend. live at the nasdaq market site new york city time scare. i'm melissa lee. here's what "fast" is following. jcpenney stock and bond, it's a double dare you will not want to miss. the earnings path, will the market pass it from financials to tech. dozens of big companies report next week. and cnbc gives you a well

rounded global portfolio. we're tackling the post game analysis and giving you the setup with karen finer. the market mystery of the week. gold's downward spiral. touching its lowest level in more than a year. this coming as we see continued strength in the dollar and on the back of lowered outlooks on gold on wall street. mining stocks also taking a hit. seekers, you sold gold today. >> i sold gold when it was down about $30 which felt awful until it was down $80. that felt a heck of a lot better. it still didn't make me any money. i got out of gold and silver today. the bailout in cyprus went from 17 billion to 23 billion. europe said they're not giving them anymore cash. sell your gold. >> it's another precedent that suddenly came out of the unique situation. >> right. won't be so unique when the big

countries start looking to sell gold. >> central banks buying gold was one of the many thousands of reasons why we could say gold was going up. deflation, deflation, deflation, deflation, and deflation. if you look at what's going on with commodities, gold is the lynchpin. ed morrison has been on our show. the sunset is essentially 2013 will sing the bells to the end of this rally and commodities, but gold, i think a lot of this was technical as well. slice through 1550 and 1530. that's where it was bouncing. >> melissa, if i may, a lot of what people do is when you see a situation like gold, you say it's a mystery. gold, we've already had this breaking down for a couple of weeks. what most people would say is it's always been one of these situations where you can't value it so people only wanted to own it while it was going up. it had broken major trend lines all the way down and with each

new trend line broken people say, why am i still doing this. i think the recertain si that's entered into the market, that's all that's going on. >> i think the question going into next week is is gold in fact telling us, can we look at gold as some sort of an indicator. we know they have a total of, what, more than 3,000 tons of gold that could be on the auction block if they need to sell it to offset austerity. >> that's a good point. i look at fundamentals. gold has no fundamentals. i'm interested as a voyeur. with no fund amouamentalfundame. i'm out. >> ten year up trend. >> what are the fund amt als? >> shiny, yellow. >> the fundamentals are breaking down. >> it doesn't have cash flow.

>> right. >> you have to look at gold as the access level. the old saying is out to gold will buy you a good suit in london. it's the aggregate price level. >> you're obviously not shopping in london. i'm just kidding. >> in terms of the -- >> i wonder if other things take over, whether it's something like, you know, paulson is gigantic. at some point it needs to be liquidated. >> at the aggregate price level, then does it go to what tim is saying, deflation in the world? >> absolutely. >> does that mean stock prices have to come down? >> i do want to address paulson because that's the next speculation in the market. with gold prices coming down will we start to see redemption? will there be pressure to change strategy? kate kelly is saying paulson will not change the strategy.

that's the party line right now. that's certainly something in the markets to watch next week. as a major holder of gld. how much pain are investors going to endure before they start saying, you know what, give me my money back. >> i think that's the bigger point. it may not be the pain that he can take, it's whether or not he gets redemptions. >> let's step into the earnings fire, shall we? next week is quite a big week for earnings. let's find out which stocks our buyers are selling. bk, kick it off. >> next week we have a lot of tech earnings. intel is one of them. we've seen pcs plunging. i'm staying short, ewy. very heavy tech. very heavy international trade. >> josh? >> as a rule i try not to buy a stock just because it's reporting, but the one i'm most interested to see and i may get involved with is linked-in. not quite next week, it's a couple of days after. linked-in has been crushing estimates every time it reports.

my friends at estimise. i would not be shocked to see another blowout quarter. lnkd will be the one i'm looking out for. >> karen. >> long jpmorgan, long bank america going into next week. we'll see what they have to say. >> you're not worried what jpmorgan and wells fargo did that they'll be weak and trade off? >> a little bit. we'll get to it a little bit later on jpmorgan. i think there's fundamental things happening and it's positive. >> let's go to old reliable. coca-cola reports before the bell on tuesday. this is a company that has some currency head winds. has underperformed the s&p. the first quarter comps year over year don't look good. coca-cola is an emerging market play. if you're feeling defensive, you should buy this. >> let's talk about a big mover this week, jcpenney coming in as the second worst performing

stock this week in the s&p 500. the beaten down retailer is our trade of the week. karen is both short jcpenney stock as well as the bonds. a trade that has worked out beautifully so far on the stock side. >> on the stock side, right. the bonds haven't worked as well. >> why do you think they haven't? >> today's news probably is a little bit of a sign of hope for the bonds if they do raise additional equity, equity would be great for the bonds because that would come in beneath them. i can't imagine there's a lot of people lining up to take a big equity stake without extracting something. the bonds were short. >> can i ask you a question? >> yeah. >> it seems like you are really being gluttanous. your call was on the equity. it was total dysfunction and you nailed it. to get to a place where there's going to be a bond default, i realized -- >> you don't need a default. >> you have to trade down. >> karen, here's the real question. don't they have 1.85 billion in

revolver? if so, why wouldn't they be drawing on that before using blackstone to raise additional capital at god knows what rate? >> everything is on the table. >> leave the revolver and they go to the street? >> what message does it say if they start to take up all the revolver? >> in other words, they must be selling the deal but say the revolver is there. >> they have a little bit of leverage to negotiate. >> it is an odd situation. >> it is. it's not like a chipolte or something. if you're short that, it can go to 500 or something. the bond you don't have that asymmetrical risk. >> you have the negative carry. it could go above par. at one time they did trade above par. they're certainly not going to some multiple of where they are right now so you have an asymmetry. it's to me similar of owning we're not just short stock, we are pea long the push basically.

could there be a squeeze? could something happen that i don't anticipate? of course that could always be the case. the stock is lower, it's not cheap. that is the big difference. if it weren't akron, it would be lek kra. if there was such a floor and -- >> that's never, ever -- >> i think that's a key point. why would steven roth have sold half his stakes if it was such a great score or value in real estate? >> i'm very skeptical there. when you see a lease back, it's not like you get money for fee. you have to pay rent expenses. >> she's fired up. >> she deserves a round of applause. >> they're going to get taken over for 30 bucks tomorrow. coming up next on "fast." a big bad bonanza. we'll get the numbers from citi, goldman and bank of america. first we take on today's earnings.

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trades of jpmorgan falling

even though the bank posted higher first quarter profits. they suggest the bank could be under pressure. this sets off our street fight over the megabank. karen is a bull, josh is a bear. total 90 seconds to make each case. karen, kick it off. >> the earnings were not the cleanest, not the best, but they weren't bad. there's a couple things that actually were in there that i think should be backed out which is very high litigation expense. i think we'll see that go down. credit quality is continuing to improve. the valuation which is what i always come back to is very attractive right here. let's say you take out those loan loss reversals and you had a buck 40ish a quarter. analyze that. 1.2ish times book value for a premiere franchise plus they have more of a 3% dividend yield. over the next six to nine months we'll get bigger buy backs. you'll get one of the premier

names. >> jpmorgan has probably given you as much as it's going to give you in the short term. >> i'm not finished. the rules are the rules. >> i don't think it's going to hold. it rose above. it looks like it's going to be a breakout. i've got to tell you, the earnings were not okay. they were actually pretty weak. they beat the street, quote unquote, but the way they did it was by backing out. >> i don't think you're trying to pull one over on the street. they pointed it out on the very first page. >> i've got to tell you something, they didn't come down traiting 6%, equity trading down 5%. not an exciting quarter. >> all right. so very heated street fight. >> yeah, well done. well done. we have a special judge to actually tell us who won the

street fight. >> karen wishes. fred cannon of kbw joins us now. fred, always great to see you. >> jpmorgan. >> on the bull side actually. >> bullish? i can't believe it. >> notifying the banks for top line growth, it's not there. pressure is relevant. credit will get better for a long period of time. you have a positive back drop. >> is this your top bank pick or do you prefer something like a wells as we do. >> i prefer citi and wells. i think citi is the best restructuring story. i think wells is the best play on the home price recovery. >> fred, when you read through jpmorgan's earnings and wells fargo's earnings, particularly on the earnings side, what do you make of it. >> mortgage revenue is under pressure this year.

the gain on sales spreads last year were phenomenal and wells took huge advantage of that. it's going away because everybody's competing for those loans now. that's here but you have to remember, at the end of the day increasing home prices are a good thing for banks. not this year in mortgage banking but a good thing for banks. >> karen, let me ask you something. what's your price target for jpmorgan? i think we've got $52 right now. >> okay. >> so i think we can break that $48 barrier. >> fred, just quickly in terms of up side surprises, down side surprises, who should we really focus on next week? a lot of banks are coming out. >> the up side surprises are in the capital markets area. i think you need to look at the goldman. the mortgage banking pressures are going to be across all the regional banks. >> fred, great to speak with you. thanks for your time. thanks for weighing in as our honorary judge.

time now for thoughts and drops. we're tackling some of the biggest movers. dror b buy, 5%, karen. >> yeah, best buy, i really didn't like it at 19 and i can't say that i love it at 24. so not a bad week considering it was up 100% more. >> drop for joy global down 4%, sam. >> even without william blair coming out and saying they believe there may be fraud at their i.m.m. unit. this is a company that that is like caterpillar and deere. >> pop for first solar up. >> a monster week for first solar. kind of getting that effect when circuit city went out of business. we've had a lot of businesses go out of business. if you're in this short, you've got 40% this week, you sell them and thank everybody for it. >> pop for gilead sciences is up. >> they're like the sickest

stock. 29 in the pipeline. >> in a good way. >> in a very, very good way. >> i mean, i don't know. >> two potential approvals coming, too. it could be another whole level in upgrades earnings revisions higher even if only one of them goes through. this stock, there's no telling. >> when you refer to it as a sick stock in a positive way, that's a sick stock, dude. >> i'm not really from iowa. >> apparently. apparently. >> all right. those are the biggest stock wins of the week. let's get to some of the best moments of the week from fast. >> gangnam style. >> no time for sigh. let me make it clear, zero time for sigh. >> i shorted rainbows today. >> i went long un corn. long un corn. >> look at that. that's -- ooohhhh. we tallied the twitter votes and you all out there picked bank of america. this is a very nice trophy. "fast money" madness. very attractive.

plastic. >> $2.99 at trophies are us? >> coming up next, class is in session. trader tim seymour gives us his thoughts on how to build the best portfolio and your best trades for money. stay tuned. >> "fast money" means trading. everybody has to bring their best information. the entire trading day is the preparation for that show that night. >> idea generation. all about giving you a framework for how to look at the market, plus the world has changed, our show has evolved.

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♪ the new blackberry z10. with time shift and blackberry balance. built to keep you moving. see it in action at blackberry.com/z10 class is in session here on financial literacy month. if you're just getting into investing there's value to be found all around the world. our own tim see more is here. where do you start, tim? >> if we're starting multi-national, i'm not going to say this is in emerging markets

but i want to be where the consumers are growing. that's emerging markets. i want to be invested in multi-nationals. here's my pi chart. here's the breakdown of my portfolio. i want exposure to the consumer vehicles and discretionary. this is where we're getting the growth in discretionaries. materials we talked about today. i don't think you need to have a bigger weight in there even though some stuff has bombed out. credit is growing. you want exposure to financials and also health care. we've talked about it here, but the social net around the world in improving health care and pharma is exactly what these guys are doing. the stocks i'll give you are multi-nationals and you know the names well. i always refer to the brazil onbeer company. pfizer we talked about. hsbc, tremendous asian growth. we know about nike and

caterpillar. vodafone. that's how you get your consumer. >> very big allocation to the consumer. >> yeah. >> that's specifically because it's global? how would that differ if you were only to lever to the united states? i'm trying to get a sense on where you stand relative to less consumer to global. >> it's important to draw the line. the difference is i absolutely want to be exposed to the consumer growth story. it's happening in china. so having 40 plus percent exposed to the consumer. i'm a value investor. i am paying up for growth. multi-national stocks, you don't need to own the locals. all these companies i mentioned have a great franchise on the ground. i think you want companies with dividends. a lot of the same things you're doing here. if you pay attention to valuation, this is a great place to be. that is cnbcu for today. it's sometimes tough to buy the losers and sell the winners. play a little hold and refold

them. jetblue, first up. beakers? >> even though dave is a friend of the show, i think you have to fold ithere. a lot of the move today and the last couple of days has been going down. so i'd much rather be short oil than long in the airlines. >> yahoo trading in levels not seen since 2008. >> if you've been in it, you've made money. 25 seems like value. there will be excitement with the asian assets. hold it and use a trailing spot at the 50. >> next up, verizon 12 year high in today's session. >> it's really hard to pound the table on this one. dividend year, 4%, that's pretty nice. i would hold 'em. >> lastly, mcdonald's, the burger joint hitting all time high. tim? >> i think it's defensive. i see mcdonald ace as a world

class brand. over 21 on the seller. >> i went to mcdonald's today. up 1.5%. time now for the final trade for this friday. if there's a final trade going into monday. your first move for monday. >> stay short, spy. moving gold is bear. >> the iwm. >> karen? >> talk about it in a little while, but another stock up, gm. >> josh brown. >> you are going to see all sorts of expost facto for gold. do not buy something larger that's going on. we don't know what it is. >> i have one more bonus question on gold, on gold. in the break we were talking about how you thought you were going to be selling gold in the morning and buying it back in the afternoon. monday morning what do you do with gold? >> absolutely nothing. 1400 is where i'll start taking a look at it again. we'll have to see what the story is. >> the price to earnings ratio

is pretty cheap. >> at nothing. the dividend yield's nice. >> i will admit that gold is the ultimate bubble. >> five away, breaking news here. karen won the street fight on jpmorgan. >> wow. close one. >> thanks a lot. see you monday at five for more "fast." meantime "options action" begins right after this break.