154% this year alone. >> imagine that. >> it's got an epilepsy treatment that's going to hit the market. >> i think cramer's been talking about this one as well. >> this is the second time we have had him on. he's a great interview. he always gives tidbits about what to expect in terms of timelines. >> but no samples. we want to reiterate that. >> of course not. >> have a good show. sarah, have a good weekend. >> great to see you. >> "fast money" starts right now live from the nasdaq market site in new york's times square. i'm melissa lee. tonight, you, the viewer, will get to decide which unusual activity pete covers for you. you'll be able to vote at cnbc.com/vote coming up. stay tuned for that. but first, tonight's top story. consumer trouble. stocks at record highs, but is the consumer crumbling? another down day for coach, olive garden parent darden restaurants. are these individual stories or maybe signs of trouble?

bk, what do you make of it? >> the one on that list that has me concerned is owens corning. if you look at what else is going on in the housing market, we've seen weak housing starts. we've seen weak building permits. the housing etf, itb, the construction etf rolling over. so to me, that's the part that's most concerning. when we're talking consumer in general, you have to talk about oil, how long is oil going to stay up with these prices? i happen to think it's going to stay up much longer. >> obviously that can't help stocks like a coach or even a darden restaurants. >> i think this is crazy. i think the consumer is fine. if you look at the metrics out there, disposable income per capita is up year over year. that's better than the trend. at least in line. you're seeing unemployment and private payrolls back to prerecession levels. just to talk about the macro, it's absolutely fine. consumer staple stocks are kicking. coke is at one-year highs. look at all the beer companies. certain parts of the chain are working very well. walgreens doing great.

whole foods, not so much. to me, it's all about valuations. it's all about companies that are either broken or way too expensive. >> it seems there's a lot of broken companies out there. if we want to look at retail in buckets, let's look at costco, walmart, target. these are all well off their 52-week highs. if you want to go higher up the end to consumer discretionary like whole foods, nike, they topped out again. seems like there's a lot of broken stories again. if i put them together, seems like a broken sector. >> starbucks isn't broken. you named ed bunch of companies that are, but didn't we psi tsa topic is are the consumers under pressure. >> but what are the stocks discounting? they're discounting something. there's something investors out there are not going gangbusters with. >> wait, wait. okay. i want to bring pete in. it's true. 52-week highs, that's great. at the same time, if we're looking at higher oil prices, will these stocks break?

are these the ones that keep on going? >> i don't know that they break. i also agree with tim from the standpoint of how long they have been. but, no, they have pulled off the highs. you look at nike. it was 80, now 75. starbucks has pulled back. costco was in the 125 area, now it's 115. you can look across the board and see a pullback. why is that? some of these were leading when the financials weren't, when you weren't getting leadership from other sectors that have pushed this market to the upside. seems like we've had this great rotation. it was big cap tech against a lot of those momo stocks. we keep getting this rotation. when you look at valuations, they certainly look to me like they were way in front of themselves. some of them, like coach, is getting absolutely massacred by michael kors, by kate spade. when you look at these individual names one against one, there are winners, there are losers. >> look at the bigger picture. that's why i brought up owens corning. housing is 40% of the economy. if that's starting to slow down, all these stocks will break. >> how about the idea of these rail stocks moving a lot of the

different parts that we talked about when we're talking about housing? we talk about energy, but we also talk about lumber. we talk about a lot of the things involved there. look at the way those stocks are trading. look at unp. some great performance out of these rails. >> crb, the commodity index s at 21-month highs, by the way. there are certain reasons why the rails and shippers are doing better. to say the consumer is under pressure, that's the blanket statement i think we're making. michael kors, great company, great growth. even then, that stock is running out of gas. that makes sense to me. that valuation doesn't last forever. >> how about about this, though. when you mentioned staples, you said coke, 52-week high, but it's defensive. defensive issues have worked. what's the best performing sector? it's utilities. the things working right now seem defensive. if you want to go to energy, seems to me obviously the geopolitical stuff kicking up right now is helping oil prices. it's helping energy stocks. then there's all this m&a stuff.

pete sees it every day, the coal buying in the energy sectors. the refiners going ballistic. it feels bubbly and it's not the thing you want to chase. be uh the energy stocks were moving along before oil was moving to the upside. look at exxon. the energy stocks have been very, very strong. the utilities, to your point, i think there are folks going there maybe to hide. you look at a lot of these companies, they were beaten down. look at the valuations, now they've gotten themselves probably stretched as well. that's still an area everybody's targeting because of the yield. >> so i think everybody here on this desk will agree that there are ways to play within the consumer space that aren't necessarily broken. so what is the trade? tim? >> well, dan is picking up a good point. consumer staples are still rocking. they still work. kimberly clark, kmb, companies with global growth. coca-cola, which was beaten last year and wasn't exciting because they're not growing their top line is a valuation story. >> so if you want to play those, and you're worried about housing, just short itb, the

construction. that's your hedge right there. if housing is indeed slowing down, it's going to take a while for it to feed into some of the consumer stocks. so short itb. >> if i'm just looking at consumer, i actually think that the ultimate consumer stock is apple. i think if you get that pullback a lot of people are looking at that prior consolidation level at 85. get that this summer, maybe there's a weak july quarter here. that's where you probably step in at apple. >> john and i earlier debated under armour and nike. it was an interesting debate. >> was it a would you rather kind of thing? >> yeah, under armour or nike. i preferred under armour. the reason is, look at the growth. it sold off after earnings that were spectacular. when you look at the shoe sales, the accessory sales, everything they're doing online, what a big portion that is of their revenues. you look at nike, you have a solid company with continued growth but a lot slower. under armour for big-time growth they can grow into internationally. >> you mentioned apple. it's getting set to release its long-awaited i-watch this fall. kicking off our top trades

device, may come in multiple versions and will include fitness and health trackers. late in the day, apple took down $2.7 billion in market cap on 30 million shares in the last five minutes of the trading day. >> for a company that used to keep all their products under wraps, the leaks here are -- you know, it's hitting a fever pitch. >> not a coincidence. >> there you go. to me, i think you have this situation where people know that there's going to be a couple phones in september. the i-watch, nobody knows what it looks like. to merks i think it's exciting. i think you don't want to chase it. when the stock was at the tippy highs, you don't want to chase it there. >> this is not your father's apple here. it's not an innovative company anymore. it's already run from 75. >> just quickly, did you see any options activity? what was going on in the last few minutes of trading where the thing ticked down to 1%? >> right. you wonder, is this one of these situations because of the fact

it was options expiration as well? a lot of times we dismiss some of this. when you look at the options activity, apple always one of the leaders every day as far as the equity names. and with expiration, oftentimes we see stocks move oddly toward the end of the day because of those expirations. >> all right. next up, oracle down 4% today following its steep afterhours drop on earnings. tim, last night you said the stock would be bought at these levels. you said actually a gift. >> i did buy some. >> it was a gift to you. >> well, i think so. i mean, i put on a half a position. it's something i'm going to continue to watch. the street out today tells you they're worried about gross margins. it's less even about the top line. to be clear, two of their three-cent miss was an fx loss in venezuela. the financial part of their numbers for the last four quarters has been choppy and lumpy. i think that changes. i think ultimately, this is a valuation story. mega cap, in tech, this is the best place to play. and with a dividend yield.

that was the gift. >> isn't it a company that's facing more competition than they've ever faced in the history of the company? it seems to me everybody is coming at them from crm to microsoft. instead of oracle, i'd rather been in microsoft. >> i think they've always had competition. these guys think they're going to be one and two in the most profitable parts of this space. >> that's the thing. don't listen to larry ellison. >> how do you not? look at the stock in the last five years. >> tim, they have made 100 acquisitions worth $50 billion in the last ten years. there's no organic growth. the company that he built -- >> who cares? why do you care about that? >> you know what the rumor is? they're going to pay $5 billion to $6 billion for microsystems. why? >> they haven't done it yet. >> i know, but why? there's no growth there. much better places than large-cap tech to be. >> agree to disagree. a way to invest in marijuana without investing in penny stocks. the stock popping this week on promising study results.

we'll talk to the ceo exclusively next. plus, get to a computer, phone, or tablet right now. i mean, now. log on to cnbc.com/vote. you'll get to help pete decide which unusual activity he highlights on the show. that's coming up next. here at optionsxpress our clients really seem to appreciate our powerful, easy-to-use platform. no,thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you just set your start and end price. and let it do its thing.

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this week marking the busiest five days in a very long time on pete's options radar. he's having a hard time narrowing it down for tonight's unusual activities segment. so he needs your help. so we want you, the viewers, to choose which sector you want pete to give us the goods on. log on to cnbc.com/vote. tell us, do you prefer to hear about the stock that was lighting up on pete's options radar in the media sector, or perhaps more about the bullish move in the industrials? log on to cnbc.com/vote right now. click on your voice. you can vote as many times as you want. so go ahead and stuff that ballot box. pete will reveal the unusual activity in the sector you choose coming up later on in the show. it's marijuana meets bio tech. if you want to invest in the marijuana industry but don't want to bother with penny stocks, this next company might interest you.

gw pharmaceuticals is up 25% on this week alone on promisesiingw studies for a new drug. let's bring in the ceo, justin. great to see you again. >> great. hi, melissa. thank you for having me back on your show. >> the last time we spoke, about a month ago, we were looking towards this data. what was the next stop on this timeline? >> well, the next step is for us to build on this data and to conduct more trials later this year. we'll be conducting pivotal trials on this treatment for the treatment of treatment resistant epilepsy in young children with a view to filing this treatment with the fda in 2016. prior to that time, there will be more data coming out on this product as well as other products in our pipeline as well. >> right. for that drug specifically, in the second half of this year, you're expecting to present for data and initiate a phase two and phase three study, so there are deficient markers along the way before that fda submission

in 2016. >> absolutely. it's an incremental process. the data we released this week is just the beginning of that. around 30 young children with epilepsy showing very interesting marked effected on seizure reduction. there will be more data from a larger group of children later this year and indeed in 2015. so whilst the core pivotal trials are ongoing, there will be an incremental release of additional data on additional children. >> i want to talk about the drug that's farthest in the pipeline. it has thc as well as the can cannabiniod derivative. are you still expecting a 2016 launch? >> yes, so they're in treatment for trials of pain and cancer. we expect a file next year. indeed launch the following year. so between the two opportunities in epilepsy and cancer pain as

well as other pipeline products, it's a very busy time for this company. >> talk about the uses for cancer pain. i think what people may not understand is that some of these compounds and drugs while they're being tested for a certain use right now actually have potential other uses that are not even being factored in right now in analyst models. >> that's right. well, the notion here is that the cannabis plant actually is a rich source of compounds which are all structurally related. they're called cannabiniods. they're distinct from one another and have a range of therapeutic uses. whilst we've been talking about pain and epilepsy so far on this program, we're also researching into psychiatric disease, diabetes, onkolg, and a range of other areas as well. i think we believe the future for cannabinoids for prescription medicines has broad implications. >> all right, justin. thank you so much for your time. good to see you again.

>> thank you very much. >> this stock has had a monster run. even since the last time we talked to him a month ago. >> it has two things going for it. one, a well-run company with real products in the pipeline. two, it's not the penny stock. this is one of the only places to go. that's why it's been so popular. >> bank of america came out with a big note that said the wide utility element of this, people are throwing a lot of stock -- and i don't mean stock. i mean a lot of faith that there's a lot of things this company can do. at least ultimately as they attack epilepsy >> i think it's very impressive. obviously we're still waiting, though, right? we're waiting for this pipeline to produce. we're talking about a billion-plus dollar market cap. this is not some very small company everybody's just sort of waiting around for. we're talking about somebody that's a real company. >> all right. time for pops and drops. big movers of the day. pop for molston coors.

>> morgan stanley is not being lewis and clark here, discovering anything. the stock is up 15% this month. use this opportunity to sell it. >> pop for auto nation, up 5%. >> earlier in the month we got the report for may, the best may in eight years for auto nation. then you start to get the car max numbers today as well as an upgrade from goldman sachs. i'd wait for a pullback. >> pop for yandex. they smashed through their 200 day. up 48% from the lows. this is a company that like google is also buying into the retail part of the internet chain. stay in this name if you own it. >> drop for amd, down 6%. dan? >> weird move today. the stock opened unchanged. sold off for most of the day. there was no news, but there was a lot of options activity. somebody rolled out of the july 4 puts. it looked like into an opening position of the july 3 puts.

catches q-2 earnings. i think maybe people are looking at amd as more consumer focused. i don't know. weird activity. >> and we got a pop for model prisoners. the mug shot of a northern california man has gone viral, capturing nearly 70,000 likes on facebook. jeremy meeks, a convicted felon, was picked up on weapons charges in stockton, california, on wednesday with his arresting good looks. the photogenic jailbird has attracted many women. don't reward the prisoner. >> he's working the tat. the tear drop. >> it might be more than a weapons charge. >> i had mine removed. it was difficult. >> oh, my gosh. don't forget to vote. pete couldn't narrow it down. so many choices for unusual activity. so he needs your help.

what would you rather hear about, the unusual activity in media or the unusual options activity in the industrials? go right now. cnbc.com/vote. we will unveil the unusual activity in the sector you choose after this. oh, look. it's moving already. keep voegt. after the break.

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add an adjustable kickstand, a keyboard, a usb port, and the freedom of touch. and, of course, make it run microsoft office, with the power and speed to do real work. introducing surface pro 3. the tablet that can replace your laptop. sing it, pete. go ahead and sing it. >> you kidding me? >> we asked you to choose a sector for pete to discuss media or industrials. so you guys voted in full force. we're going to close the voting

right now. watch as the percentages settle. there we have it. i think the people have spoken. 54% of you want pete to discuss industrials. by the way, this was a lot of votes. this is how many votes? 56,000 votes. >> wow. >> that's what i'm talking about. >> 56,000 votes. >> i didn't know pete had that many relatives. >> a lot of friends, a lot of relatives. >> pete, what to talk about? >> emr. an interesting stock. it's basically been hovering around some of the support areas if you look at it on a chart. that part stands out. then today the september 70 calls, very, very active. there was activity in july as well. but the september 70s, well above the open interest. over 6,000 of those traded. a lot of folks betting to the upside that this sector still has legs. you've seen the industrials move to the upside. emerson is one of those names. >> all right. thanks for voting, everybody. >> yeah, thank you. now, tomorrow marks the official start of summer. to celebrate, we've asked our traders to come up with stocks they like to take a vacation from, names they don't knowsly

dislike but they want to put on the sidelines for the summer. we want to go around the horn. >> dan is standing kind of close to brian there. >> pete, you're up. >> i'm going to start with apple. the reason, it's had a phenomenal performance since april on this big run to the upside. throwing it over to tim. but it doesn't mean this is wrong. it's not going to go anywhere. i'm looking out the next big catalyst in my opinion doesn't really happen until september. so we're basically in a pause. i think other places are much better for your money now. >> give tim the ball. you're up. >> i'm going with disney. i love the stock. i've owned the stock. ultimately, this is a company clicking on all cylinders, but it's looking for new catalysts. technically struggling at 84, but we've talked about valuations. i would also argue disney is a consumer stock. 24 times expensive. great company. take a break. >> i'm going with boeing. listen, you lock at what's going on in the airline sector. you've seen some warnings. boeing, to me, it's a name i'm short. you look at their valuation. it's based on, i think, shaky

valuation. shaky assumptions you're going to have this continued buying from the emerging markets. short boeing. >> i'm going to keep this quick. early july, you're going to get mccown numbers. it's sitting right on massive support. it cannot rally with the market here. i think if those numbers come in weak in early july, this stock sees 180. >> this photo was photoshopped by the way. around the horn. >> international flavors and fragrances growing globally. stay in this name. >> go down south to brazil. ewz, buy it. >> puts are cheap in july. >> i think you can do both oracle and microsoft. you don't have to choose. microsoft is going higher. >> that does it here for us on "fast money." see you back here again monday at 5:00. but don't move yet. the one indicator that says the market is going higher, tune in after this break. have a good weekend.

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this is "options action." tonight -- ♪ summer loving had me a blast >> well, maybe not this summer because gas prices are on the rise. plus, not sure if you should buy stocks? one big indicator says the market is going higher. we'll tell you what it is and how you can top it. and this stock is trading at 52-week highs and one trader is betting $4 million it will go even higher. >> feeling lucky today. >> the action starts now. >> live from the nasdaq market site, i'm melissa lee. these are the t