bell." i really, really appreciate it. best of luck to you with the whole estate opening this spring. that is sure to be as long lasting an attraction. >> that does it for us at "closing bell." now it's time for melissa lee and the gang. >> thanks a lot, kelly. "fast money" starts right now. live from the nasdaq market site overlooking new york city's time square. i'm melissa lee. john, jerry, karen and guy adami. here's what's coming up tonight on "fast." tesla ceo elon musk announcing something in a conference call today. >> most cars don't improve over time, but the model s is out there, software updates does get faster, smarter, better as time passes. and the car improves while you sleep and when you wake up it's got added functionality at th, improved user experience and it feels like driving a new car.

>> so if musk is so confident in the new updates, why is the stock selling down? we'll break it off and should you buy this dip? >> a fed head fake when the federal removed the word patient from its statement but seemed to imply that rates would not be rising. the dollar has come back after the major selloff yesterday. oil getting hit after yesterday's big rally and as for equities, the s&p 500 pulling back after a nice pop yesterday. so is this idea of a new world order from the fed a big fakeout for investors? guy adami, what do you say? >> a big fakeout. i'm of the belief that the fed has lost control of the markets. they can speak all they want, but in reality the markets are out of their control, and specifically the currency markets and the bond markets. if the bond market wanted rates to be higher they would have been higher a long time ago. you still have ten year below 2%. you have german yields i believe at historic lows. i still think rates go lower in

this country and i think the moves in the dollar, you don't get 5% moves in two hours in major currencies. you used to get them in two years. yesterday you got them in an hour and a half. not healthy for the overall markets. i think the fed wanted to jawbone the dollar back down. it lasted for a day. it's not going to last much longer than that. >> what do you think, karen? >> i think the equity rally was, i don't know, kind of a knee-jerk reaction that the fed has said, we're going to look at the data. i think we could be sitting here two months from now and be two months closer to a potential rate hike then. so, you know, i sort of feel like the party isn't a forever party. this is not a free pass forever. >> and we knew that. >> and we knew that but we partied like we can. >> right. >> well, i think what they did in my view is they probably extended the party for a couple more months, right? likely, at least that's what the market has been saying, is that we've taken june off the table, maybe september is there. if you look at some of the data in the u.s. it's been pretty

soft. globally it's been pretty soft. so i think the chances of the economy really getting a lot better are probably pretty slim. you know, it's two days. we have massive moves like guy said in currency. it's hard to say. we've rebounded a little bit on the dollar. we've retraced. crew is up at 6% at one point yesterday. we're down 3% today. i actually bought into commodities like i said i was going to do last night. the probability is if money starts flowing into some place it's going to flow into the commodities. i bought gsg. >> has how you looked at the markets and your invest. changed because of what happened with the fed yesterday? >> no. i thought we would trade down melissa to below 2 in the ten year, we did. we came back up towards the 2 but we're going to be doing that all year. i don't think we get back above 228 that we put on the employment report two weeks and a half, let's call it three weeks ago now. i don't think we get back to that for a while because of all the negative yields that guy talks about, and he and i have been on the side lower for longer, that it is out of the fed's hands, i agree with that.

they can move short term rates. that doesn't mean they're going to impact the ten year at all. >> we are in this world. it may not have changed significantly in the past 24 hours. what are our plays at this point? >> well, i mean, if you look at the russell, i think that's been the key for me. the russell was up today. dow and s&p, nasdaq sort of. russell was up pretty substantially. i think the iwm, you still take your cues from the iwm. as long as it stays above 122 which is effectively what we've done for the last couple of weeks, i think it will drag the broader markets with it. we talked about it yesterday on your 2:00 show that the oil rallies and equities, there's some real ones and there's some false once. we specifically mentioned exxon mobil and connick could he phillips being the false ones. look at those today. look at tesaro. down today but trading a whisper of all time highs. >> that's an interesting one because we do continue to see the spread remaining wide. you think oil is going to

rebound? >> i think oil is going higher. i don't think it's going back to 110. >> does that mean that refiners are not a good trade? >> the thing with refiners, it's all about that spread between wti and brent. i do think brent is probably the stronger of the two so that spread actually might be a little bit wider. i personally make the bet on oil going higher because you're going to start to see some of those supply changes come into the marketplace. >> not a dollar driven oil move? >> well, i think some of it's dollar. i think the dollar goes sideways. we're in a correction phase. it will be hard for the dollar to get higher. >> and those refiners, whether it's holley frontier or whether it's western refining wnr, tesoro, valero, all of these names will continue to work because unless they do change and let them send out nonrefined product, in other words, crude oil directly. >> right. >> then we're going to have the glut. it's going to continue to build to a certain point obviously. it will bleed off some as we get closer and closer to memorial day, but we're going to have an

over supply situation for quite a while. that's good if you're a refiner. >> in terms of the banks -- >> i mean, today was a terrible trade for the banks. yesterday was worse for the regional banks and the banks that actually lend. >> yeah. today was really not good. they rallied a little bit off their lows but nothing close to a rally for sure. you know, i don't like this flattish yield curve, that's clearly bad, but i think the valuations reflect not a great yield curve. >> last question here. do we stay away from interest rate sensitive stocks? the bond proxies, the utilities, the reits? >> i would. >> you would? >> i would. i think they've had a huge run. guy -- i would have been short for a while if i were a ten year trader. thankfully i'm not. >> i don't think we'll see the highs we saw a couple of weengs ago in the near future. ten year now is set up in my opinion to push down below 1.5%. nike moving slightly higher

after beating on earnings. the conference call getting underway. let's bring in corina freedman. what did you make of this quarter? >> great underlying fundamental trends. we're 40 bases points better than guidance and the future is accelerated on be the two-year basis. we don't see anything to poke holes at in the numbers but we are waiting guidance which is going to come out during the conference call. >> the stronger dollar was an impact. not surprisingly for nike. do you look past that? how long do you look past that? because even though it's -- you know, the dollar is strong, that's the -- that's what you -- how you do business these days. that's what you have to live with. >> they are hedged and we do think that this is the bottoming of that trend. this quarter was three points worse than we expected. we think they'll guide more conservatively on top dollar going forward and investors will be braced more for that. >> we're long foot locker and finish line. nike has been slowly but surely

building out their own retail presence. how big a deal do you think that will be for them? >> it's big. it's also beneficial to their gross margins. it's been coughing up 20, 30% every quarter. it is impactful and it's something everyone is doing as they become retailers themselves. >> what about nike and under armour and under armour purchasing my fitness app. that's a change for under armour. nike has been in that area. are they head to head in that? >> they are. everybody has their own app coming out. the way that under armour is being more agnostic so everyone's wearable device is going to connect with under armour's app. nike is winding down their field man so we don't know what that means for that division going forward. they do have an app as well. yeah, it's much more competitive landscape in that arena. >> nike is only $1 plus off its 52-week hayat this point. which name do you like in the

space? >> we still like under armour. >> better valuation on under armour? >> no. >> what is it? >> the top line trends are there. you don't have any fx exposure. their international division is 10% versus nike which is 40%. it's a better play. it's been pretty strong growing three times what the market is growing at right now. >> corinna, thank you. bb&t. >> we played would you rather with her. >> i love that game. >> would you rather? >> nike. >> why? >> under armour -- i mean, it's a tough one. i think they're both fantastic. >> 99% domestic. >> nike is still a north american story. look at the comps in china. up to $800 million in that area. the comps were off the charts. that's going to continue to accelerate. that makes nike grow to this valuation. the stock has been ballistic. nothing has been able to derail it and i don't think this quarter is going to derail it either. >> what's your read through for finish line and foot locker? >> for foot locker i think it's

probably better than for finish line. foot locker has more negotiating power than finish line, although i like them both and finish line is the cheaper of the two, foot locker is better managed. >> i love foot locker. pete's in it, i'm not. i have no position in there, but i love foot locker. again, 52 week high today so i know karen and petr both happy about that. the margin story over here at nike looked pretty darn good. gross margins, 49.5. xfx, in other words, that 11% number would have been what their year over year sales numbers were. that's phenomenal. >> would have been. >> would have been. a strong currency is a strong currency. >> yeah, right. >> put the hedge. >> my top down view is at the very least the dollar acceleration is slowing. that's going to be good for nike. i like them both. given tomorrow morning if i had a choice to buy the two, i'd buy

nike. that doesn't mean i don't like under armour. >> facebook shares hitting an all time high. is it time for you to take profits? we'll debate it. a contrarian call. one analyst saying to buy the casinos now. find out why he's so confident and he's beating down names. tesla shares selling off. we have someone who says the stock is going to rise another 40%. that's coming up on "fast." hello. i am a fully automated investment advisory service.

i can help you choose investments. monitor them. and rebalance your portfolio. i can do a lot of what humans can. except have a real conversation. if you'd like that, you can always speak to someone at schwab. they aren't algorithms. try not to hold it against them. say hello at intelligent.schwab.com

i'm almost done. [ male announcer ] now you can pay your bill... ♪ ...manage your appointments... [ dog barks ] ...and check your connection status... ♪ ...anytime, anywhere. ♪

[ dog growls ] ♪ oh. so you're protesting? ♪ okay. [ male announcer ] introducing xfinity my account. available on any device. the housing space kicking off tonight. the stock reversing midday and ending lower by 2%. sticking with housing, home depot ceo sitting down with kelly edmonds on the closing bell moments ago. he had this to say about the company's buy back and dividend plan. >> look at the intrinsic value of our stock on a quarterly basis and determine whether it continues to make sense to drive a share buy back program. we believe it does. we have benefitted obviously from the buy back program as well as increasing our dividend which we have a commitment to as well. the majority of our growth in our stock has been driven by performance.

>> all right. so the earnings data point stock from the home builders, that was good. for home depot you have spring planting season coming around. >> and obviously this rough winter was something that as bad as it is, it sent you back into home depot again and again. so the security breach, it was good that he also addressed that with kelly because that was something that target didn't do very effectively. that's why that ceo got tossed in my opinion. now target has come screaming back since then. home depot addressing this at least saying that they're addressing it. if they have another breach, it will be an issue. if they're saying they're addressing this, the public will listen to that. >> this year home depot has outperformed lowe's as well as its peers. do you like it? >> it's a little bit expensive for me. it's interesting how everything seems to be setting up so nicely for them. they've done a great job executing. the consumer has money. it's cheap to buy houses. i have been surprised how much the housing stocks themselves have lagged and those seem to me

to be a more interesting risk/reward at them. >> are you looking at them? >> still looking. >> household formation chart, didn't that sell you? >> i love that chart. >> i know. i have that as my screen saver. >> liar. >> i don't. anyway, home depot. >> home depot. you can speak to this. this is not a criticism. you could have made the expensive metric argument about home depot literally $40 ago. so yes on valuation it appears to be expensive. they continue to seemingly grow into it. the environment that we find ourselves here, united states seems to win for home depot on every specific level you want to look at. i think they're speaking at a conference next week. i think a data conference next week. i think you continue to own the stock. >> i know you love that household formation chart. >> not so much. it's only one month. why in december did it almost quadruple. i am suspect of that, but i do like home depot and lowe's on be a breakout.

you have to buy them on momentum. next up, facebook, jumping 6% for the week. a new feature is allowing money transfers via messenger. and today ebay citing competition from apple pay and facebook. >> that's why facebook rallied but it should have rallied a long time ago. it has had trouble at $80. their metrics line up well. people will say the stock is expensive. that might be the case, but each quarter seems to build on the previous quarter. their move to mobile continues to work. i like facebook. i've liked facebook for a while. i still think it goes to 85 so stay long fb. >> now to our call of the day, breen capital going the contrarian route saying to buy the macau featuring wynn. brian marr. >> thanks for having me.

we're playing for some sort of rebound. for macau, what sort of rebound are you looking for? are you looking for gaming revenues to resume to recoup all of what they've lost? >> no, not at all. >> okay. >> what we're looking for is an inflection point around mid year. the first quarter is a disaster, we think down 35% for the quarter. we think next quarter is down 15%. then you kind of hit a flat line. you have much easier comps in the second half of this year. we talked about that a lot last year, about how difficult the comps were going to be in the back half of 14 and we clearly saw that. the reverse happens this year. you get much easier comps, but more importantly you've had a situation where you've had a shift from vip play to mass market play. the mass market players have had no place to stay at night. they're spending all their time in the border crossings. what you have coming online is 5200 new hotel rooms in the second and third quarter on a base of 28,000. so about 20% more rooms. the mass market people will have a place to stay at night. they'll stay, they'll gamble,

ggr will turn around. >> when you say they have no place to stay at night that's because there's no capacity? >> no extra capacity. when you look at companies like melco crown, city of dreams, hugely popular casino. in the fourth quarter, 100% occupancy. they turned away 30%. >> the gaming revenues have been bed? >> the gaming revenues have been down because the vip play is down. even though numbers were down, 7.5% increase in visitation to the market. >> let me ask you about the vip. i personally think anti-corruption is short lived and we will see corruption back in favor shortly. and i wonder what -- >> it always comes back. >> -- about having that vip play? >> my view on vip play, if you're questionable whether you should be going to macau and not be seen, you can't go more if you're already not going. if you're a comfortable vip player who has gone for three, six, nine months, there's plenty of them, they'll continue to go.

the ones that are uncomfortable will come back and vip could come back. we're not betting on that in our numbers but that's a possibility. >> in terms of the smoking ban though, that's going to be a lasting thing. do some casino and hotels set up better for that eventuality? >> yeah, wynn highlighted that the new wynn palace has a lot of balcony space. you go up to the vip rooms, they can step out onto the balcony rooms and smoke. he's at a bit of an advantage. others will try to find work and. >> wynn basically got cut in half from this time last year to now. it's been unbelievable. your upgrade comes at a good time or initiation comes at a good time. where does the stock trade? it's at 130. where do you see it going? >> i see it coming to $174. we look 11 times for the las vegas properties. 12, 12.5 times. >> and then last question, what are your odds of mgm announcing the replan by the end of this

year? i mean, we had the activist, who is agitating for them to do this, and one key reason is that it's going to become a u.s. taxpayer this year. that could be the impetus. >> yeah. so the difficulty with that, it's an extremely difficult accounting and legal maneuver that typically takes two years to do. it may or may not happen. i don't necessarily think the juice from that trade is so significant above most of our price targets, which are kind of high 20s. i think mr. litz in the low 30s. maybe mr. murr goes through with it, maybe he doesn't. that's a two plus year transaction. >> brian, thanks for coming by. what's your play? >> oh, i love his play on wynn. and, you know, i'm cursing myself for not getting in on it. i liked when you asked him about the odds. >> yeah. yeah. >> because not only is he saying he's got a bet on this, mel saying what are the odds of this. >> yeah. >> i think the odds of this stock being higher at year end are significantly in your favor if you're in. >> guy.

>> i would rather be las vegas sands. there are things going on at wynn that i don't feel i have an edge over anybody else. in this place i'd rather be l.e.s. news alert on a.k. steel. mary is at headquarters. >> the stock is down 6% after trading after the company provided some very disappointing guidance for the first quarter. the company expecting 23 to 28 cents a share. analysts were looking for a penny a share for the first quarter. results of operations for q1 have been significantly and negatively impacted by lower than expected for carbon seal spot market shipments and say the stronger dollar is resulting in an increase in imports and steel and that, too, is impacting its business. again, now a much wider than expected lose expected from a.k. steel for the first quarter. >> mary thompson, thanks for that. in recent days we've seen a crush of these steel stocks. guy. >> you thought fcx in that mix,

that's a stock that can't get out of its own way. steel prices, until they recover which you haven't seen, you can't own these stocks. i thought u.s. steel was a buy around 25. proved to be completely incorrect. you're still waiting for capitulation on the sell side. you haven't seen it yet. >> i think you buy it. if it holds above 385 i think you go the contrallion way. they missed. we know things are terrible. look at the steel stocks yesterday. they absolutely ripped yesterday. just a minor pull back. >> you have to believe in the e reflation? >> yes. it has nothing to do with fundamentals. >> a slew of biotech movers hitting the tape today. we have the one name, the one name that could be gearing up for a major breakout. on the back as the latest drugs come out. later, tesla ceo elon musk holding a news conference. the stocks sold off immediately following his comments. what musk said that drove shares

lower and how to trade it. that's ahead. when i was on wall streetnd music begins ] ♪ i felt trapped in that i was investing in a health care industry that i didn't believe in.

for years i really struggled with this idea that people were making money off my illness and i wanted to do something different and so i finally made that change. [thunder and rain] [thunder and rain] [thunder and rain]

news alert! message! email! calendar update! most of us admit to being overwhelmed by information at work. that's why ibm created verse. it uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. it continuously learns how you work. and helps you prioritize the people and projects you need to focus on. there's a new way to work and it's made with ibm.

time now for stock therapy. a number of the rumors and estates. so ow gino therapeutic soaring up 17%. that brings us to celgene. it's exciting investors after the phase 2 study from crohn's

disease. >> celgene made this acquisition last year. typically they're a cancer story. people were excited when they got into this drug. it's a new mechanism of potentially treating this bowel disease. it's an inflammatory bowel disease. 500,000 patients could be treated. the drugs aren't satisfactory for patients. analysts say they're treated with things like humira, remicade, and patients don't reach remission on them. it could be a potential $5 billion market. celgene has this pill. we've seen the phase 2 data. it was published in the new england journal. we've also had an editorial in the new england journal which looked very, very positive. they basically said unprecedented remission rates with the drug. there's some skepticism that the results will bear out in the phase 3 study. the company is expected two large phase 3 trials in the middle of this year. could potentially see data in

2017. >> could be a big drug but will it be a big drug for celgene if it lives up to expectations? >> yeah, celgene is very big. this is thought to be a potential blockbuster. could add quite a lot. if it's a $5 billion market, could be probably pretty big. the mere term catalyst for celgene, we'll see a lot of partner data potentially and expansion of its huge cancer drug. >> this crohn's disease drug for celgene, there are others in the space, will they feel the pain? >> it's possible. they're much bigger in other areas. i don't know how much they'll be pressed on those companies. >> in terms of what to look forward to, meg. this is what this stock is, it's a wild stock with crazy volatility. >> it's so weird to talk about anything other than biogen. there is another catalyst. that's intercept. it's working on a liver disease

called nash. this is thought to be a very, very prevalent disease. it's tied to obesity and diabetes. as many as 5 to 10% of adults might have nash. there's nothing out there to treat it. tomorrow intercept is going to be presenting more data from its phase 2 study at a small medical conference. they're going to be having an analyst meeting. they could share some details about the trial design of phase 3. the big study will get this drug on the market. they had a big catalyst in january when the fda granted the drug break through therapy generation. they'll have more communication with the fda. it showed confidence in the drug's ability to get to market without a really long trial. >> you mentioned biogen is out tomorrow. what time? >> 5:35. >> it's a european release? >> yes. thank you. get some sleep. surging to the close, it closed practically at session highs. >> you know, celgene, everybody

says celgene is expensive. not expensive. probably the best balance sheet. forget biotech out of major pharma stocks. operating margin is 52% operating margin. this is a big deal. it's only phase 2. you get it to phase 3 you'll add another 10 bucks on the stock. celgene to me continues to go higher. don't trade apple. same thing with celgene. own it, don't trade it. >> are you in biogen? >> pete is but, again, this is phase 1, right? tomorrow with biogen. that's phase one with them about the monochromal antibody. the pe is up there in the stratos fear versus biogwen. tesla coe elon musk says hands free is own a few months

away. so why did the stock sell off after the big vote of confidence? a deeper dive into what's behind that move. that's next. yes, when others focus on one thing, you see what's coming next. you see opportunity. that's what a type e does. and so it begins. with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere.

"fast money" live from the

nasdaq. tesla has anxiety and is giving some investors anxiety about the stock. we have an analyst that says you should buy everything you can. nike shares moving higher. a conference call about halfway through. the latest from the ceo. facebook, google and apple making payment sexy again. originals. ebay and paychex going head to head. you get the vote on twitter for which stocks move forward. please cast your vote. elon musk held a news conference and he addressed range in value. in typical musk fashion things got interesting. >> in real time it communicates with the network of tesla super chargers and destination chargers discarding any that are in heavy use or inactive. it warns you before you drive out of range. you don't need to think ahead or do any calculations. the software update makes it practically impossible for a

model s driver to run out of range intentionally. the car will always take care of you. it's basically impossible to run out and lets you do so intentionally. you'll have to double check, it will double check with you. you'll have to say, yes, i'm sure, twice, before -- before it's possible to actually run out of range. >> sassy car. the conference call musk announced features like automatic steering and continuous updates. the stock was closing lower than 2%. let's bring in our senior analyst, ben could ywan. this is your topic of the year. >> it is. >> in terms of the features, did it make you think that will increase demand? >> i do think it will help with range in value, will help with demand. the biggest take away is there's been an argument that the cars don't keep their value when

they're used, and by offering these new functions continuously over the air i think it helps with that residual value argument that's being made out there and that the cars can actually improve over time. now, i think that the mapping for charging stations, while interesting, it's not the revolutionary thing that some people were looking for on this call. that's why we saw some of the selloff. the stock was strong up into the call. you have the automated steering, that leap frogs them ahead of many of the other oems out there. i think that was an important announcement. then also i think some tidbits on the call. they talk about china improving. also being on target. you know, at the end of the day this has become a battle stock, a crusade stock. it's going to be q1 before we get to see how they've cleaned up operations there. i think they have. i think demand is there. i think, you know, they're making progress on production so i think we should see some good results out of that. until then, we're going to be in

this kind of back and forth. >> you know, the stock hasn't really been trading well. lower highs and lower lows. that speaks well for the stock itself. can we be in a world where tesla goes back. your price target is 275. in the world where oil is still $45 a barrel. the argument is people who buy teslas are not affected by the price of gas. the reality is, gas goes lower -- oil goes lower, tesla goes lower. >> the last two quarters have been messy so investors focus has come very near term. we get a clean quarter, people start moving out, start believing in the dream again, start looking at the five-year trajectory where they can 10x their revenues. they look at the giga factor. due online next month. i think that we need a clean quarter of that to get them out of the penalty box. >> speaking of a clean quarter then, have affluents come down enough? in addition to whatever demands

may be out there amongst the analysts or investors, a strong dollar has also been an issue. on that last conference call they said fx is going to be a significant adverse factor for 2015. >> yes. >> since that conference call the euro is down another 7%. have the estimates come downie? >> yeah. we saw the estimates go from 2.25 to around 80 cents for the year so i -- and the stock has hung in there. you have plus or minus 10% since that time. so i think estimates are set up. i think tesla's controlling the milestones in their guidance good enough, better than last year where they could get back into track there. >> ben, going to leave it there. >> thank you very much. >> ben kallo. >> first time here. ben kallo in person. >> first time on set. >> b.k.s unite, man. >> trade on tesla, please. >> he's the axe in the stock. you pointed out lower lows, lower highs. stock has not traded well. whether it's coincidence or not

since september when oil started going down. i still think it makes a move to the may low which is 177. you hope you have a double bottom and it bounces. you either buy it there or you buy the break at 220. right here to me it's still no man's land. >> i think ben would probably agree that this particular issue that he addressed today didn't need the addressing in terms of this particular issue as far as range anxiety. as far as the used batteries, in other words, the reason the recity ssit /* scity -- residua if musk were to say, when you buy our used car we throw in all these new batteries, that's a completely different car then. >> so the residual value concern is still a concern of yours? >> ota updates. >> most people know that tesla updates over the air because, you know, it's a wireless feature that they can do because of software. it's not, you know, a general motors internal combustion engine. they can do it over software. that's great.

i've got friends that drive these things. they have the range anxiety and this didn't solve that, but going forward if they want to sell that car, the used market is terrible for these because people don't want be to get stuck with having to do the $10,000 battery update. >> okay. time now for thoughts about big movers of the day. drop the china mobile down 4%. >> this is a stock that i -- it's a bet on china, right? so since i think china's slowing, i don't want to be in it. down 4%, it's not a buying opportunity. >> big pop. gus up 16%. >> old navy, that's all you've got to know about this one. the margin's expanded. old navy was off the charts, mel. that's the main reason in my mind why the stock continues to be bought. that and maybe the 30% short interest. >> drop cullen frost down 2%, karen. >> yeah. you know, not a great day for banks. not a great day for oil and if you have a bank that's perceived to have energy exposure like

cullen frost, they can't handle it, they can't, that's why it's down. i still think they're in. >> drop in nucor down 6%. >> first quarter guidance was not bad. it was an absolute disaster. we talked about a.k. steel. we talked about steel prices. steel prices continue to be pressured. today was not the day to be buying the stock. they want to push back down the lows we talked 42 bucks. coming up on "fast" the payment playoff. back here with the match-up between paychex and ebay. only one can move on and the other will pay the price and get eliminated. you can start on twitter here on the desk right after the break. . then, we were protecting the transfer of data. and today it's evolved to infrastructure... ♪ ...finance... and military missions. we're constantly innovating

to advance the front line in the cyber battle, wherever it takes us. that's the value of performance. northrop grumman.

up in our "fast money" madness tournament. three tech names compete for the title of champion. so far intel and cisco have made it to the next round. tonight we've got our first contest in the payments conference. on one side, paychex, the payroll service company which has jumped 11% this year. on the other side, ebay

downgraded. your vote counts, too, so log on to twitter and use the hash taug #fastmoneymadness. tell us whether you prefer paychex or ebay. it will be used to break any ties which may happen on this desk. 40 seconds on the shot clock. kick it off, guy. >> you'll be shocked at this, i think. >> what? >> paychex. paychex. >> all right. >> we saw an ebay downgrade. it's been stuck from 50 to 60 forsome time. paychex over the past couple of years, the stock has been parabolic. 3% dividend which i don't know if that filters in. what it says is the balance sheet is almost pristine. you have a great balance sheet, no debt. stock that continues to move higher. 25 times forward earnings. maybe it's a little bit expensive but i think this is going to push up the levels that i saw in 2000 around the $60

level. paychex 1, ebay, zip. you go. >> i'm going with ebay not just because guy said paychex. not that it's so cheap but it's not so expensive. i think we get some decent capital allocation from them. they're trying to be more shareholder friendly. once this split happens, i think because of the land grab that will be in the payment stakes, you'll see a very rich valuation from paypal. i think there's room to go. >> we head to the left side of the desk. b.k. >> that's up to me for now. i'm going with ebay. not just because karen said ebay. i think ebay is a better stock. here's why. there's a couple of catalysts coming up. karen mentioned paypal. that's going to keep investors involved in the stock. number two, i'm not a huge fan of the electronic garage sale that they run, however, the deal with sotheby's to do these live auctions as a potential revenue stream, again, keeping investors in stock hoping something is going to happen. finally, just the move in

paychex makes b.k. want to stay away. i generally don't like buying things at 52 week highs. >> dr. j. >> i'm going with paychex. what i don't like about ebay is i don't like the competition that's coming from apple with apple pay, from facebook and from snap chat. they have the partnership with square and jack dorsey which i think is going to kick everybody's butt. as far as paychex, like guy said, this stock is screaming to new highs, 3% dividends and they're a dividend grower. they didn't just stick it out there, they add to it. i like paychex versus ebay. >> we know what that all means. >> this is a tie so far. two traders against two traders. that means a twitter vote. on twitter you guys out there said paychex. >> give it up. >> paychex advancing to the next round. >> whatever. >> paychex is like the georgia state, wouldn't you say, mel? >> underdog? >> i mean, you know --

>> up there for you. >> we'll talk tomorrow. tomorrow we'll be jumping into our internet bracket with an exciting match-up between facebook and google. log on to cnbc.com/pro. coming up on "fast money", shares of taiwan semiconductor have been soaring up to 30% in the past year. they're making a big bet that the stock is topping out. plus we'll hear the latest from the group earnings call next. managing your portfolio str from the palm of your hand. only vectorvest mobile analyzes, ranks and graphs... ...over 16,000 stocks worldwide, everyday,... ...and gives you clear buy, sell, hold recommendations... ...on every stock; anytime, anywhere. vectorvest mobile comes free with your vectorvest trial. get it now! visit vectorvest.com/mobile to get started

>> yes. >> who i have winning it all, by the way, sorry for the

georgetown folks. they just squeaked by. >> northeastern. >> northeastern. >> they gave them a square. >> mel doesn't care. >> yeah, sure. >> it's always -- it's always the early rounds, guys. those are the scariest. >> scary. >> all right. mary, thank you. >> you're welcome. >> can we get a trade please? >> we said before. >> after the conference call maybe something changed still with nike. >> moving on. coming right back. stay tuned. "options action" is sponsored by -- ♪ ♪

first impressions are important. you've got to make every second count. banking designed for the way you live your life. so you can welcome your family home... for the first time. chase. so you can.

sfx: engine sounds introducing the new can-am spyder f3. with a cruising riding position and the most advanced vehicle stability system in the industry... ...you'll ride with a feeling of complete freedom and confidence. visit your can-am spyder dealer and test drive one today.

the new spyder f3. riding has evolved. time now for the final trade. around the horn we go. dr. j. >> ruckus, wi-fi player. we saw unusual activity a month ago. it's hitting now. i bought the may options. >> i still think the steel stock is good risk reward. by letter x. >> karen? >> here's one we haven't talked about in a while, live nags, lyv is the ticker. built up ticketing. i like the management. buy here. >> guy. >> total stud, a bunch of

villanova people here, they'll beat lafayette. adobe be, the stock goes down. adbe. >> i'm melissa lee, thanks for watching. tomorrow night i'm melissa lee. see you back here tomorrow at 5:00. meantime, do not go anywhere. "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 want to make some money. my job is to educate you so call me at 1-800-743-cnbc or tweet me @jimcramer. all right. i have to tell you right now, we got this whole thing all wrong. we don't seem to understand what's good even when it bites us in the face.