bell." thank you so much for being with me. i hope follow me on twitter and on google plus but first stay with cnbc because "fast money" begins right now. have a good night, everybody. live from the nasdaq marketsite in new york city's times square, i'm melissa lee. our traders for tonight are brian kelly, dan nathan, geoff brown, guy adami, and mike kuo. let's get straight to the big story "fast" is following tonight. will rising yields kill this rally? the ten-year yield rising above 2.1% today's session. no coincidence the leaders of the market rally are also taking a hit at the sam time. take a look at these yield plays. utilities, for instance, having their worst day of the year. what is the bottom line here? are rising yields bad for stocks? brian kelly, what do you say? >> i say yes. >> yes? >> i've contended since the beginning of this that the people who are saying that don't fight the fed and don't want to buy bonds but are buying stocks better be pretty careful because when you look at what's actually happening in the market, one, last week the s&p 500, 2%

dividend yield, bonds 2% dividend yield, immediate sell-off. look at procter & gamble. look at johnson & johnson. look at all these namds that were the dividend yielders and they're all just getting crushed particularly today and they all closed on the lows. >> but historically isn't rising yields correlated with rising stocks? >> it's a historical market. we've never -- >> brian, i've got to take the other side of that. when you look at the market, what you just espoused is the exact opposite of what's happening. >> no, not at all. >> what's happening is a rotation that's leading to rolling breakouts across each sector. and i would argue the single most healthy development we've seen is money coming out of overvalued, overhyped dividend defensives. there's no reason why telecom should be trading at 23 times earnings. that is a perversion because of ultra low interest rates. i like seeing the money leave there go into oils, go into chemicals. this is healthy. >> i would accept that except the economy is not strong enough to have those cyclicals --

>> yet. but let me share something with you. >> putting 85 billion a year -- >> the market is an anticipatory vehicle -- >> all right. >> without a doubt it's an anticipatory vehicle but it doesn't necessarily meant economy's going to get better just because the market -- >> dan nathan, weren't we lamenting this market that was rising on the back of the telecom, the utilities -- the defensive plays? we didn't have the rise in materials and technology and the things that we wanted to rise, and here we have a handover. isn't this a good thing? >> i think these guys both make very good points and i think they can both be right. i mean, when you see the volatility that we just saw in bonds today, when you see the volatility that we've seen in commodities and currencies over the last month or so, you know, something's got to give here. and to your point, melissa, yes, you are seeing a rotation. and i agree with josh. that is healthy. you want to see the economy is going to improve, you want to see money flow into some of these more cyclical names and out of the more defensive -- the bond proxies. i would just mention, though. you mentioned utilities down one or a little more. the xlu down a little more than 1% today. these are crowded trades. josh talking about telecoms at

23 times earnings. they're crowded trades. so you do want to watch the rotations and be cognizant of them. >> the problem, though, is if you believe that the economy is not improving as much and rising yields are going to raise borrowing costs for corporations and consumers who, by the way, might see mortgage rates -- >> i think that's to brian's point. so josh makes the point the economy's getting better, rates are moving, bullish for the stock market, which i get. i don't believe it, though. i think the speed with which these rates are moving is what scared me. and i believe the rise in rates is -- a lot of it's happening in japan, and that's really what scares me. >> took out a five-year high from before the crash. >> but it's also -- >> why do you think that -- >> the economy's getting worse? >> yes. >> are we looking at a different series of data? >> case shiller's old, right? consumer confidence is a month old. >> a month old. i mean, what are we -- >> the fed said that dallas is now the center of the universe, don't pay attention to any other manufacturing index. today the dallas fed index came in at a negative 10.

>> i want to bring in mike kuo. mike kuo, will rising yields kill this rally? >> it's definitely going to hurt them. first of all, it's obviously going to clobber any of the yield-based trades. so obviously we're just talking about the utilities and the telecom stocks. frankly, it refers to pretty much all of the staples too, where we've seen the sam thing, people chasing dividends and seeing valuations in names like colgate, palm olive and colleth we've been talking about for a couple weeks. they do look cheap and that means they have priced in a certain amount of concern. tofrom my perspective i'm going to have to lean in josh's camp on this. i think the rotation out is a healthy one because some of those stocks in my view were probably undervalued. one more point i would make. we are seeing the vix again creep a little higher on an up day. and that obviously indicates there is some skepticism among investors, and that's probably a healthy thing. >> all right. fear not those rising rates, our next guest says. there may be dissension here on the desk. our next guest is clear on this.

as monetary magician bernanke has another trick up his sleeve. strategist legend edgar denny, president of yardeni research, joins us on the phone. ed, great to speak with you. >> thank you very much. >> so many people say he's used every single tool in the box at this point. >> well, in 2002 then governor ben bernanke gave a speech in which he listed all the possible tools that the fed could use to avoid deflation. and the one tool he hasn't really used so far is to peg the bond yield. in that speech he talked about pegging the two-year treasury note. but he might actually be forced to peg the ten-year at something around 2%. >> so let's say he pegds s it. i'm just wondering if you believe, as we've been debating on this desk, that rising yields will in fact hurt the stock market and so therefore a peg would be a good thing for stocks or if it doesn't have any correlation, rising yields are fine historically for the stock market. >> i think the fed's got itself into a catch 22 situation here

because the economy continues to improve and stock prices continue to go higher then you are going to see bond yields do what they're doing, which is go higher and maybe even spike up. and that would really risk the recovery in housing that has clearly buoyed the economy. so i think the fed will be forced to phase out qe but to keep annuals from spiking they may very well have to announce that never targeting the ten-year bond yield to keep it from going much higher than it has been. >> hey, ed, it's brian kelly. you started out talking about bernanke and worried about fighting deflation. but that wouldn't suggest that bond yields are spiking, number one. and number two, if we're fighting deflation and then the fed goes, hey, to fight deflation we're going to peg bond yields, that's a rather negative sign, is it not? >> well, again, i think the fed got itself here into a real catch-22 situation. the economy is doing somewhat better. it's certainly not doing a lot better. but the real problem here is

stock price is going up. but there too you've got a catch 22 because if their concern is that higher bond yields would put a kibosh on the house recovery and therefore they feel like they've got to peg them just at the sam time that they had to phase out qe, the stock market would absolutely love that as we were just saying. i think we're looking at a summer meltup situation because the fed one way or another is going to have to keep interest rates down, particularly in the long end. and particularly if they're forced to phase out qe. >> hey, ed, it's josh brown. doesn't this remind you a bit of somebody saying i'm going to quit smoking and then you being more worried about their withdrawal pangs than actually saying hey, that's good for you, long-term it's healthy? what's the right way to look at this? should it come to anything like a repeg or -- >> i've stopped trying to be moralistic about any of this. i've stopped trying to be a policy maker. we just have to take the policy makers as they are and conclude

what are their policies likely to be and what will that do to the markets? and look, you can certainly make a conservative argument that qe1 was worthwhile but qe2, qe3 were just not worth doing. and that we really needed to go through more pain than we've gone through. the reality is gatsby's back. you're hearing about the hamptons having parties again and about home prices going up and people renting out space to park their rolls-royces. i mean, the -- we're kind of doing what we've done in the past. we'll get out of our problems by doing it all over again. >> ed-g >> ed, good to speak with you. thanks for your time. >> sure. >> ed yardeni, yardeni research. he said the fed will keep rates low, that essentially would mean that the short bond trade is over or has topped. what do you say? >> yeah. i think it's probably not a bad place to start buying bonds again. i've been wrong on tlt here but

it's not a bad place to look at buying these once again. if the fed does this you've got to look at the way they're going to do it because there's a shortage of that collateral. you may see them selling as many puts as they can in the treasury market to peg it. >> but by extrapolation to what you said earlier, if the fed does this, then that means stocks will go higher. >> stocks will probably go higher. 2% of yield -- >> let me add something. i'm not a permabull but i want to be really clear on my opinion on this. they're not even talking about raising rates. they're not even talking about stopping qe. they're not even talking about anything other than maybe at some point in six months we'll buy less bonds. and the market is going to get used to that. and it will be volatile. >> is it, though? the model we've seen, though, today, it's almost a historic move, and if you think about the volatility we're seeing across multiple asset classes -- >> you've got to have -- that's the whole point of jawboning is conditioning the market. >> got to hit our top three trades for today.

those are the most noteworthy moves of today's session. first up, facebook back below 25 bucks a share, still down more than 35% since its ipo last may. guy, you noticed this. you flagged this on the call. it's been an underperformer versus the nasdaq for the past -- >> since they report td was the beginning of may, the stock was 27 1/2. you got that report, which looked good to me because it's all about mobile to them and they seemed to be able to monetize it. 28. here we are trading 25 and change on a great tape. couple days here noted. but if this stock doesn't rally know when is it going to rally? it still feels broken. maybe it trades down to 23 1/2 it gets interesting. but the fact that facebook can't rally now really has to be disappointing. >> i want to lob in linkedin. we're getting a lost tweets on this and that's one you called right. >> i thought when they reported we'd see a move to 220. we didn't. we've seen it move to 180. a couple attempts to 190 and here we are lower again. i said it the day of earnings, i'll say it again. you have to wait on this one.

it will prove itself at some point but you're in month no man's land. >> tesla above $00 a share today for the first time. josh, you say this is the new apple. apple meaning when it was a love stock not now that it's a hated stock. >> this doesn't have the fundamentals of apple just yet. when i talk about it as the new apple i mean this is the stock that every single short-term trader, every growth investor has on their screen. in some cases they've got the symbol up there multiple times. what's happening here is people are still discovering the story, it's relatively early and i think right now you still have enough shorts in the stock that every piece of good news gets amplified even further. i won tell people run and take a full position in tesla here. it's done a lot and it's got a lot to prove but quite frafrpgly you cannot be short this name. >> tiffany a beat on both the tom sxwomt line sending the stock up big-time today. is the high end alive and well? dan nathan. >> the results certainly say they are. and not only that, it was not only here in the u.s., but it was also in asia and that was a

cause for concern right over there. but when you think about what the nikkei's done, up 50%, up 100% in the last year or whatever, i mean, piem are buying more blue boxes. great performance here. the stock gapped up, closed up 4%, but it closed 2 1/2% off of those early highs. i think it's kind of full valuationwise. trading 20 times. only supposed to grow earnings 10% a year. so i think this one you probably see consolidate up near these multi-year highs. >> are you worried about japan and the impact of the consumer? >> this could be a very volatile situation. josh wanted to talk about consumer confidence here in the u.s. well, consumers should be confident. the stock market's up a lot. just like it is in the nikkei. >> higher energy costs and so on. >> i had i it's a backward look. >> coming up next, the world at war over oil. the commodities king tells us this tough talk will lead to a trade. plus protecting from a correction on the cheap. and later on, snooki alert. is an influx of jersey shoregoers kupting rental prices in the hamptons? the horror of that story is coming up next when robert frank joins us here on set. tdd#: 1-800-345-2550 when i'm trading, i'm so into it,

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america's energy revolution is creating a rift in opec. african and arab members are divided on how to deal with the energy boom in the united

states. joining us now for the trade, the commodities king himself, dennis gartman. hey, dennis-g to see you. >> mel, always good to be seen. >> this is certainly a rift that has been going on for quite some time where you have the african members of opec and the arab members of opec. the african members of opec are producing similar grades of oil to what is being produced from the shale boom here in the united states. the question, though, dennis is can opec actually survive this rift this time since the shale boom in the u.s. is not going anywhere? >> well, mel, we've been talking about an end to opec for what, 35 years. they're still around. they've always had problems. this is unique. this is interesting circumstance at this point because one of the things i've always said in speeches that i've given for years is asking american clients who is the united states' largest supplier of crude oil from outside the country? the answer's always been canada. and everybody has always answered that it was saudi arabia. and i would have to say no, saudi arabia's been fourth, fifth, sometimes sixth. and it was always nigeria. it was venezuela.

it was angola that was filling in, mexico that was filling in. now you've got a real problem because the angolans are angry, the nigerians are very angry. nigeria depends absolutely on exports of crude oil to the united states. and the saudis have quietly usurped that position. so once again we are beholden to middle eastern crude in an unusual fashion. >> okay. so if you dissect the situation here, players like venezuela, like iran, they're probably most at risk because they have higher costs. what's the trade out of all this, dennis? >> well, i do think right now what's happening, stock markets are telling you that economic activity around the world is strong, demand has been very, very high. you're going to continue to see continued expansion of oil production here in the united states in the various shale, tight oil as they call it formations. you want to own the railroads that deliver crude oil around the united states. you want to own the refiners that have exposure to the united states. you want to own continental oil, that in the united states. and i'm sorry, if there were a

way to sell opec short i would try to find a way to sell opec short. i'm not sure how one does that. but the loser in this is going to be opec. no ifs ands or buts about it. and saudi arabia is hanging on by its fingernails, angering the rest of the cartel. it's really quite interesting. >> dennis-g to see you. dennis gartman, the commodities king. mike kuo, let's go to you for the trade. >> i also like the oil services names, names like halliburton i think should continue to do well. we're trying to develop obviously new fields and companies like that should benefit from that. i think the refiners obviously have had a very good run. but they have a tendency to see some mean reversion with respect to their margeins and we don't have that on the near term but ultimately we are going to see it. i prefer the oil service names like hal burtown and schlumberger here. >> if you're not in the energy names, a lot of them especially the big ones have had a very big run. we're advocating clients take a position in ieo, essentially an etf that owns all the producers here in america. they don't have that middle

eastern taint to them by and large and quite frankly these stocks are on fire. a major breakout in the whole sector. if you look at the individual names in the etf even, things like devon, apache yeerks anadarko, all of them technically are set up really well. >> let's hit pops and drops, big movers you might have missed in today's session. we got a drop here for salesforce.com. dan. >> they reported earnings thursday night. the stock was down 5% on friday, down another 3 1/2% today. high valuation name that just took out friday's lows. down on the year. not a lot of margin for error when you're trading at 86 times next year's earnings here. this one's probably going to have to shake out and base a little bit. >> drop here for excelon, down 7%. mike kuo. >> so the pjm auction basically, this is a forward look at the price for energy, was lower for the 16, 17 period. 56% actually lower year on year. you know, this is a space that was supposed to benefit from coal plants going offline, but it seems like they're being pressured by new nat gas plans coming on. still a space to avoid.

>> drop for nrg, down 4%. b.k. >> mike just mentioned a little sympathy with excelon. it had a higher dividend yield a little back. under 2 now. it's actually maybe a little attractive at the 100-day moving average here around 26. >> crocs, a pop, 3% the move. josh. >> yeah, i think the story with crocs is very individual to crocs. expectations got way too low and now you're seeing what happens when xapgss start to be ratcheted higher. i think the stock ultimately works its way up. >> drop here for dole, big one in fact, 6% the move. >> "fast money" first. now almost seven years on the show the first time i've heard strawberries being blamed. >> strawberries really? >> strawberries. >> you're making that up. >> how can i make that up? go check out the release. that and they suspended their share repurchase plan. i think they're going to push it lower again tomorrow. >> what was up with the strawberries? not enough strawberries? too many strawberries? >> too many, not enough. and what's the difference? it's a strawberry problem. >> all right. coming up next is the world's

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seems like every hedge fund is piling into the japan trade if they are not already in it. with gains of almost 40% so far this year. but after a week of swings that would make even stevie cohen flinch, is this trade too dangerous for the retail trader? last week was a real turnaround week. >> it was. i think for now to say the japan trade's over is probably a little too extreme, but for right now for the next month or so it's probably time to take a break on this. you're seeing an awful lot of volatility. if you're in dxj and you've made 40% or if you've doubled since last november why not take some off the table? you can get this process going on where as hedge funds start to

get out of the end, start to get out of the nikkei because the volatility it becomes a circular type of thing and the next couple months could see more volatility. >> is this going to be like the euro trade we've seen where it traded within a band so, whenever it hit the top end of the ban then traders would get out? it's just this circle we've seen. >> i agree with brian that -- >> oh! >> we've been in the trade since january. we took some off. but we're sticking with it because yes, the market's up a little the last six months but it's down over the last 22 years. quite frankly, they've just started to reawaken animal spirits. that kind of thing does not run its course in a few quarters. that could be a multiyear trend. and we want to stick it out and see what else is left. if you heard what tiffany had to say about japan just now, what they essentially said was they can't even believe the demand that's come back. i think they reported comps up 21% in big japanese cities. so we think it's a little bit too early to walk away entirely. but if you've made 40%, 50% there's nothing wrong with nibbling a little off the top. >> next trade here. who are you going to call when you think a correction is

coming? you call our next guest, randy frederick, the director of trading in derivatives for charles schwab. welcome to "fast money." >> hi, melissa. >> what levels on the s&p 500 are you watching? are you concerned these rising rates we've been seeing will in fact be a head wind for stocks? >> well, they're going to be a little bit of a headwind certainly but i think there's an upside ceiling there at the moment until the fed does something. but 1665 i think technically is where you want to look at for the top side, but i think we've got some pretty good support around 1636. but the main thing is just look at this trend that started in mid november and the s&p 500 has just followed in this thing almost perfectly. the bottom edge of this trend is almost a perfect parallel to the 50-day moving average. that's really what i'm looking at. >> so how are you then playing this from this point on? >> well, a couple weeks ago when the s&p was right at the top of the trend the commentary i put out to our clients was that look, this trend has been intact for six months now, look for a pullback if it gets down to the middle of that trend, which is

frankrily exactly what happened middle last week. then it's time to buy. every single bit of soft patch has been a perfect buying opportunity. when we're up at the tocchet trend line wait a little bit till you get a pullback. we had that last week. buy back in. all right just by today, this morning in fact, it would have worked out well. right now we're still a little in the middle. so it's not a bad time to be getting in. but as wee creep up toward the p top of that trend, until we've seen major changes from the fed, i think it's still every dip becomes a buying opportunity. >> all right, randy, we're showing the three market drivers of the second half. housing, earnings, strong economy. what are the sectors that follow these drivers? >> well, the industrials are an area that we've recently upgraded. transportation. airlines. these are all areas that i think are doing very well and continue to be strong. consumer discretionary. we heard from tiffany's. i think that's just one name but it's i think a trend we might start seeing, that consumers are feeling better. the consumer confidence number came out today. it was very solid.

despite the fact that everyone's earnings went down a little bit at the beginning of the year because of the tax law changes and things like nap there's this pent-up demand. we're seeing people getting confident enough to go out and spend 134-some point. part of that's being driven by the fact their houses wejtd up. they've got this net wealth effect. if their house is stable and increasing in value people feel they can spend money again. >> randy, good to speak with you. randy frederick of schwab. volatility low obviously. options are cheap. >> the vix here is pinned below 15. and at the end of the day we talk about three ways to use options against stocks that you own. and one is yield enhancement so you can sell calls against stocks that you own. the other one is risk management. this is a real big one. a lot of guys like to buy puts against stocks that they own. i actually prefer the idea of doing stock replacement. and the other one's leverage. leverage your bet ideas. those three uses for options i think make a lot of sense when volatility is really low. maybe not so much the yield enhancement. you don't want to be selling

calls against stocks -- >> you've got to be careful too because you can bankrupt yourself just buying puts endlessly. right, mike kuo? >> that's exactly right. this has been a very tough period of time. obviously in a situation where the market is rallying, if it does so slow and steadily, buying options may not necessarily be the best way to proceed because they start to decay away as volatility comes in. so in these unidirectional markets it's fine to simply own stocks but i would point out that another thing you can do is sell some of those upside calls, use that to buy some puts or sput spreads, and that way you can participate as the market grinds higher without actually selling all of your positions, without essentially buying premium. there's a couple different ways to do it but that's one i would take a look at. >> coming up next, the "fast money" version of the movie "casino." with guy adami as robert der nero and brian kelly as joe pesci. see which casino stock has these two coming to blows. and later on, snooki alert. is a jersey influx killing hamptons real estate prices? cnbc's robert frank is on that

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welcome back to "fast." we're live at the nasdaq

marketsite. got some breaking news here. we have just learned that john paulson is taking a major stake in william lynn homes. a 10% stake again taken by john paulson. now i'm going to say the statement. i'm sure i'm going to get a lot of flak for this. but paulson has not exactly been on the right side of many trades of late. so do we care? >> in that fund he has. in like the reflation, rebuild america trade, he's kind of nailed that. i mean, he's been in the banks. >> so we do care. >> yeah, look, he's a brilliant guy. not everyone has the best year or two years of their lives right after having -- you know, it's not an easy game. but he's been right about the rebuilding trade. he's owned a bunch of these home builders and banks. so why not? >> let's move on here. shares of winn resorts flying so far this year. revenue growing in both las vegas and macaw. so are the odds in favor of the stock going even higher? we're tackling that question in our street fight today. guy adami is our bull on wynn.

b.k. our bear. >> if you watch casino it didn't work out well for joe pesci's character in the movie. abe rothstein was the one who walked away. chances are i'll win here. favorable trends in las vegas. just look at the first quarter, their table holds were up to 27%. normal's around 23%. and they really -- they work well with the high-end clients. and clearly the high-end client is back if you look at tiffany's. also, macau, they are probably the most profitable and the best-run casino in macau, and trends are developing well for them there as well. and the last thing is 7%, 7 1/2% short interest here. valuationwise, they're more expensive, the las vegas sands but i think the short interest in the stock, people betting against it will continue to help toward the up side. >> beakers. >> my friend ace over here, it didn't end that well for him either. he'd better hope he has a special plate under his cadillac because i think when you look at macau things have probably peaked there. this week china talked about 7% gdp growth. that's well below the trend of

the last several years. most analysts on the street have compound annual growth rates for earnings of 20%. trees just don't go to the sky. rbc came out with a report today talking about how the trends in macau are actually below estimates. they're still up. nothing's falling apart. but i think a lot of this is already priced into the stock. then when i look at the technicals and i see it making a new high and the rsi divergence. and then today we see some more weakness in it. it's not a stock i want to buy. in fact i probably want to short it. >> a lot of people tried to play wynn from the short side and they've lost doing it. at some point just like tesla it's going to be right. i just don't think it's going to be right right now. >> but if i say it enough it will eventually happen. >> yeah. >> so you wish. all right. dan nathan, comment on this. >> b.k. had me at rsi divergence. let's be honest. but listen, if there's a disaster on this planet waiting to happen it's in china. these guys get 70% of their sales from macau. so at what point does this rally 25,% year to date, already incorporate -- >> china has outlawed any kind of economic downturns or

crashes. simply not going to allow them to occur. >> mike kuo, where do you stand? >> outlawing economic downturns. i mean, that is a command economy working its best magic, i guess, if they can manage to pull that off. you know, actually at just over 23 times earnings i would probably be a little bit of a skeptic, but actually that's actually cheap for one of these names that's been growing fairly consistently. my recent trips at least in the u.s., like las vegas, for example, it seems like things are picking up there. i think they're doing pretty reasonably in asia as well. so i'm going to stay with this one here. >> i like that. they've outlawed slowing growth. it's the she put basically. tell us who you thought won the street fight. tweet us @cnbcfastmoney using the #bull for guy or #bear for beaks. next today we learned home prices jumped 11% in the month of march, yet commercial real estate is growing at an even faster 35% clip. how do you get in on this action? no one knows better than mark

weiss chief investment officer at rfr a privately held global real estate company. >> thanks for having me. >> we've been talking about rising rates this whole entire show. when you see the ten-year yield go up beyond 2.1% does make concerned for your business? >> if does. if you take a look at property sales, in 2007 there were about $570 billion. dropped to 6 billion 2009, almost a 90% drop. up to $300 billion in 2012. why? two particular reasons. one, interest rates are at historic lows. and we at rfi have been trying to take advantage of that. second, the availability of credit. i think you've seen on the commercial side the pendulum has swung back more toward the middle, faster than the residential side. i think now you're starting to see the residential side starting to catch one that with easing credit standards. >> given that credit has swung more toward the middle but you do have rising rates, at what point do you say rates are so high at this point that it will cause a slowdown of some sort? >> listen, i'm a believer in the forward curve, and if you take a look where the forward curve,

you're saying it's going up another 25 basis points in six months, another 50 basis points in 12 months. still the historic 10-year average is 6 1/2%. so i think still in the 2% to 3% range you're still fine on real estate because if you can borrow at 4 1/2% and 5% and you can't make real estate work you've got a problem. >> do you get concerned at all about the idea that from a secular standpoint we may have seen the all-time peak in terms of the need for commercial real estate and more and more people will be working at home or moving around or renting space as they need it? is that a real kesh or is that overblown? >> i was involved in the leasing market in the '90s and everybody was talking about telecommuting and that was going to kill the commercial real estate market. that didn't happen. marissa mayer said everybody can't work from home anymore, they've got to come into the office. we're not seeing that trend and we're not worried about that. >> let's say you want to lock in the rates however long you can borrow at 4% or whatever. where would you put money right now? i'm assuming a firm like yours is going out there borrowing as

much money as you possibly can and buying property. >> yeah, and we're a believer in core markets. you know, we're in new york. we're in miami. we're in las vegas. and we're in germany. and if you take a look in new york, they say new york is the world's safety deposit. a lot of money from asia, middle east and private equity firms is flowing into new york. and we fill new york is a great opportunity. even if your returns are 8, 910:00%, that's still several hundred basis points aboston treasury. i'd rather -- than try to chase yield in a suburban market or tertiary market. >> we really appreciate it. rfr. rfr is not a reit. but that is the way most individual investors could participate in this trend at the same time with rising rates. reits are getting crushed because people are working out of yield playing -- >> that's the only thing you have to be concerned with as a trade in this, is that you're basically making a rate trade here. pick a view on what you think the u.s. yields are going to do

for a trade and then you'll have your reit trade. >> coming up next, we gave you the top trades of today but now we dust off our crystal ball for our top trades for tomorrow. don't get caught flat-footed at the open. plus, netflix's booming stock and "arrested development" today. we will tell you if this run is over or if there's always money in the banana stand. much more "fast" straight ahead. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. chalky... not chalky. temporary... 24 hour. lots of tablets... one pill. you decide. prevent acid with prevacid 24hr.

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welcome back to "fast money." i'm jackie deangelis with the latest news on that train derailment near white marsh, maryland. a briefing just wrapped up a little while ago with the baltimore county executive there. he described exactly what happened. he said that a csx train made contact with a commercial trash truck, that 15 cars were derailed and that two cars caught on fire. that is what caused the explosion at two warehouses. now, the driver of the trash truck suffered some injuries. he is in serious but stable condition. no other injuries reported at this time. 60 fire apparatus units are on the scene. with respect to the substances on that csx train, no evidence of toxic inhalants in the atmosphere right now. there was an updated request for suggested evacuation via twitter from the baltimore county police and fire department in the area.

but again, that executive saying that there is no need for panic at this time. the situation is stable. that well-trained professionals are on the scene. they are doing their jobs. then the baltimore county fire chief stepped up to the plate. he talked about the potential to extinguish that fire, whether to directly apply water to it or to let it free burn. he said that that could potentially be the safest way depending on what chemicals were in which cars. now, according to csx, he said, no concerns about the toxicity, again, of that smoke in the air. he did say that he had no idea how long this fire was going to burn, but he did say that it would last for a while into the night. meantime, we do have an updated statement from csx. they have said that csx's top priority is the safety of the community, that the emergency responders and the environment and also that an emergency response plan is activated to provide full support in this situation. but again, really the headline here is that the situation is

stable. they have well-trained professionals on the ground. they are managing the situation. but again, that smoke could continue well into the evening. melissa? >> thank you very much, jackie deangelis. let's get to our top three trades for tomorrow. first up torz reporting earnings tomorrow morning. guy adami. >> if you look at the last quarter, they absolutely crushed it. beat on the eps side by 20 cents. revenues they absolutely smoked. operating margins better. this is a great operator right now. now, the bear case is valuation has gotten ahead of its skis and you can make that argument $15 ago probably. so i think they're probably going to come out with a solid quarter, solid 234u6 to get this stock to probably another new all tooum high. >> apple. ceo tim cook speaking tonight at the all things digital conference. dan, he's actually being interviewed by two reporters. >> listen, i think there's going to be softball after softball. >> really? >> yeah. i'm never impressed with what comes out there have. the best thing was when steve jobs was with bill gates. but i don't think anything that's going to moffett stock right there. >> ox dental petroleum.

bank of america suggesting the stock could be worth 150 bucks a share. that's a 50% rise from where it is right now. josh. >> and their price target is 120 without any kind of spinoffs. but this is a story i've been involved with for a while. stock broke 90. these things typically tend toward 100. i think you stick with this one if you're looking for oil exposure. a lot of things can happen to make it a winner. >> let's talk about literally the best performing stock of this year. investors, though, sold netflix today hard despite the highly anticipated weekend debut of the cult hit "arrested development." julia boorstin, are you there? i thought there was always money in the banana stand. >> well, melissa, it didn't look too good today. the shares did a real about-face and the stock dropped 6%. the biggest factor was that investors were doing some profit taking after the stock's massive run-up. it is still the performing stock of the year in the s&p 500, up 131% year to date. that's even including today's losses. another factor pulling it down, negative comments from an al

beshd freed & company analyst and the fact that reviews of netflix's new original serious of "arrested development" which launched 1u7bd were decidedly mixed. a far cry from the rave positive reaction to its first original "house of cards." though a sampling of viewing by internet networking firm posera network showed what it called a "successful launch" with a measurable positive impact on netflix's traffic. posera said one of its networks saw an 8% increase in subscribers locking in and a 10% growth in internet traffic on sunday over the prior sunday despite fact this was a holiday weekend. based on those streaming numbers it looks like there is still money in the banana stand. whether that translates to the stock, we'll have to see. but tomorrow morning we'll have an exclusive interview with ceo reed hastings on squrtd squ"squ street." we'll have to see what he has to say about arrested development's return on investment. >> that will be definitely must-see tv. in terms of the hey halo effect from "arrested development,"

could it be people are constitutioning in to watch the older seasons and will get to the later seasons down the road? we actually haven't seen the full impact of p th. >> absolutely. what prosera network says and they have 600 internet networks around the world and they are sampling some of them here in the united states. what they're basically saying is taking a sampling, seeing how many people on that isp are actually watching the new season. so those numbers i referred to are actually the new season. but it is pretty much a random sampling of different isps from around the country. so we'll have to see how it translates and at the end of the day something hastings has stressed repeatedly is that this isn't about a short pop in viewership, what they want to do is get people tone gauge and they've netflix as a place for premium content. >> julia, thank you. julia boorstin in los angeles. mike kuo, what's the omgss action on netflix? >> it trade about two times its daily average volume. the most active options were actually the 220 puts thaex pyre at the end of the week. over 5,000 of those had traded for just over four bucks. they've more than doubled in the

mafrn-time because the stock sold off sharply as the day progressed. this thing's going to do just over two bucks in eps. at this price the valuation's really hard to comprehend for me, even versus the 3.94 they're expected to make in 2014. i think this is a tom i'd probably avoid. >> guy, when we talk about the banana stand, do you have any idea what we're talking about? >> well, i could get -- no. no, i don't. >> literally the banana -- anyway, net flix, would you be inclined to be long or short or nothing? >> given the move today, this reversal day you have to respect. it's a name we've liked for a long time. to mike's point, maybe at a certain point valuation does catch up. i think at this point right here 215 given the reversal today it's no man's land. i'd rather look for it to trade below 200 and buy it again. >> 215's a big level. i bought a call spread in the name. >> really? going to talk up the stock tomorrow? >> i think so. he's not going to go on national tv on cnbc, i don't think he's going to say anything to hurt

the stock. i think you'll have an opportunity if the stock opens down tomorrow. >> is that what you do with a lot of ceos announcing they're going to appear on cnbc, the day before you bet bullish? >> well, maybe. i hope julia asks the question. i think the stock was very weak today because that hulu bid from yahoo values networks at almost two times of what yahoo would be willing to evaluate hulu. >> i'm sure she's listening. coming up a timely story from our ace eat reporter robert frank. robert. >> hey, melissa. well, there's so much wealth pouring into the hamptons that we're now seeing the rise of the million-dollar rental. that's right, a million dollars just for the summer. we'll tell you what you get for your million dollars and who's paying it. coming up. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros

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it is the magical place where summer rentals can set you back a million dollars. cnbc's wealth editor robert frank has got the details on this oh, so shocking story, robert. >> it is amazing. you know, the hamptons rental index just hit a new benchmark. the $1 million rental. brokers say there are at least a half dozen homes renting for $1 million or more this summer, and two have already been rented. here is one of them. it's a ten-acre estate in

southampton. 18,000 square feet with 12 bedrooms, 12 baths and a separate staff pool. but the big draw is the property. a sparks a tennis court, a giant outdoor pool and an indoor pool with a waterfall and a water slide. the rent was just under $1 million, or about $9,000 per day. the renter, we're told, was a russian. for those still looking here's another estate in southampton. it's got a sunken tennis court, a heated pool, a guest house, a main house with 14,000 square feet, very clean, very modern, with an indoor gym and your own private theater that seats 15. yours, all that for $1 million. if you want, though, just for august it's only $350,000. a high price but at least you would stay safely removed from snooki and the beery blanketeer crowd. >> the what? >> the beery blanketeers. they're the invaders from non-hamptons places. they come in on buses.

can you imagine? >> you guys can all visit that house i just rented anytime you want. i don't want to -- >> the $9,000 a day house or -- >> yeah. >> 12 bedrooms and 12 baths? so we don't have to share. >> i'd be happy with the staff quarters. >> i'll tell you, i'm a jersey -- i grew up in new york. jersey shore guy. proud jersey shore guy. >> how are the prices in the hamptons if you want to buy? >> the prices are up about 7% to 10%. there was so much buying activity in the spring this year that the rental market just recently has kind of slowed down. because a lot of the would-be renters had purchased. so you know, we've seen so much buying. very strong market. >> to a million dollars. >> yeah. >> $9,000 a day. >> exactly. >> nice. robert, good to see you. robert frank, our wealth editor. you tweeted we traded. let's get some of your tweets to our crew today. this one's for dan. why solar city sinking so fast? >> i actually think this had to do with herb greenberg today. he was asked a question about this name during i think "street

signs" and he said there's a lockup coming up. stocks up june 10th. elon musk owns 27% of this. but other people who have been insiders are probably going to cash out on this thing. >> next up b.k. you said to buy tlt with conviction since april 17th. the etf is down 6.5% since that original call. #floptrade. >> it's kind of like a "fast" fire within the tweet -- >> i know. >> i've been wrong on it. i'm still long tlt. it's about my line in the sand. i'm actually looking more at the 30-year bond futures. they bounced today. if that holds, then i will stay, but within a day or so you'll be seeing me either staying in it or kicking it if it goes a little bit lower. not much. >> coming up next, your first move to make at the opening bell. stay with us. ♪

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all right. how did our version of the movie "casino" play out here in terms of our street fight? b.k. won the battle. >> nice! very nice. >> and claims victory tonight. all right. let's dot final trade here. b.k., victor, what do you say? >> well, maybe things are going to go my way. short spy.

>> put a netflix in front of that julia interview i think you can buy call spreads. >> josh. >> oxy, straight up, no chaser, no straw. i think the stock heads over 100 bucks. >> guy. >> apache seems to be breaking out to the up side. >> i'm melissa for more fast. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain, but i'm trying to teach and coach. so call me at 1-800-743-cnbc. every time you think you have seen it all, every time that we're -- we thought, there can't be anymore scandals as bad as the last one or anymore she contain