very much. "fast money" coming up in just moments with mandy drury sitting in. hey, mandy, what's on tap? >> we've got lots coming up including the ceo of electronic arts who by the way is an aussie and grew up very close to where i did. but we're going to be talking about what matters more the fed or greece slash europe to the markets right now. we're going to debate that. and of course lots of other things. but "fast money" does start right now. >> over to you guys. >> we'll see you tomorrow. live from the nasdaq marketsite overlooking new york's soggy times square i'm mandy drury. our traders on the desk are tim seymour, pete najarian, dan nathan and guy adami. tonight on "fast" we will explain why the hottest sector this year could be cheaper than you think. at least if today's chatter is true. plus netflix under siege as alibaba plans to move into its turf. but a top analyst tells us why this could actually be a good thing. but first to the volatile day in the markets. stocks paring their losses after feeling of a exit had the dow down as much as 200 pounds

earlier in the day as a fed meeting is looming on wednesday. begging the question, folks, what matters for to the market? is it the fed? is it europe slash greece slash maybe something else? >> if you talk about europe you've got to talk about the dax. 8500 was the low it made back in october, november. rallied to 12,500 pretty quickly. the move we're seeing it's down side for me is healthy. i think 10,500 is a 50% correction of that range. i'm not saying it gets there but i think if it does you buy with both hands. the s&p on the other hand 2039 was the march 11th low. i don't know if it's going to get there either. i happen to think the market the s&p is trading pretty well despite some of the weakness we've seen. the fed matters. i think europe matters more. >> greece has been in an almost perpetual state of crisis over the past number of years. over decades in fact. so is it any real reason to sell off? >> it's been a lot of noise. let's answer the question first. the fed is so much more important this week than drese. i don't really care what happens. in fact, we already have a

technical default and let's see if they get the imf payment but if you think about where the s&p has been where equities have been while waiting for the days we've been 180 days since we've had a plus or minus 2% move in the s&p. that's way too long. if you're setting up for the fed everyone is coming out with a september rate hike. this to me means in june you can ghin planning for the things that do rally when the fed starts to hike. that's emerging markets, that's global growth that's commodities. why? because if the fed is hiking the world's a better place. you have to ask the question are we in the same backdrop of all the other fed hikes? we can save that for another show but the fed is much more important right now. >> is there a possibility yell lenn bring on more market-friendly commentary in light of the nervousness over greece? >> i think fed is going to go out of their way to let you know what they're doing in september. >> i think the s&p down less than 2 1/2% from the highs made last month tells you they're kind of okay with the fed's message at least in the way they've been speaking and the way rates have moved in the last few months. so u.s. equities in my opinion continue to be a safe haven when you think about what's going on in greece, you think about volatility, guy just mentioned

the dax. the dax had a 5 1/2% rally off of the lows. now, it's given a lot of that back in the last couple of days. but the u.s. is probably where you want to be if you are worried about greece and i would also say the u.s. equities for the time being are okay with higher rates. >> what about you, pete? >> i'd say the u.s. has always been where you want to be. you want to continue to be in the u.s. i don't disagree with tim on the emerging markets but i would say as we know sooner or later we're going to see rate hikes and i think the fed is the most important but in the immediacy right now it's greece because that's right in front of us. the fed, we probably have a good idea of what's going to go on in june. probably pushes to september. and then the speculation once again starts to pick up. but this volatility mandy, has given us great opportunities to be able to stick with trades. take out a name like tesla, take out the vix. tesla if you would have been able to get in there and buy the applied volatility at the absolute historical lows, stock was trading around 207, you've been able to ride this stock all the way up to over $250 a share. s&p sort of the same story. you can stay in this market because all we're seeing right

now is this continual rotation that we've seen in a range-bound s&p. so there are opportunities out there. the financials i still think -- i'm looking at something like a jpmorgan for instance today. 60,000 options rolled out of june up to september. somebody actually placing a huge bet. financials are just at the beginning stages. and this is going to go through the summer. >> but hires question. even though you guys are saying the u.s. is still the place to be if you're going to put some fresh money to work wouldn't you see a better buying opportunity in some of the markets that have taken a real hit on the back of the greece problems like germany or other markets in europe? >> i would say -- i'm not saying the u.s. is the place to be investing. i'm saying what's more important this week, fed or the ecb or greece? i think it's the fed. but these guys have brought up germany. roughly 10,500 is where you get the 200 day. you don't need to chase the 200 day. it may not stop there if ghingtz really nasty this week but no question to me better earnings eps momentum in germany, better valuation 15 1/2 versus 17 18 at the s&p, and i think you also

have a case where the weaker currency, i've said this for a few months we really haven't gotten the benefit of that in european earnings yet. we're going to see the earnings of the weaker euro very helpful for these guys. >> despite today's volatility there is one chart that indicates any pullbacks off greek concerns to be bought. one chapter all the more. ari wald is oppenheimer's technical analyst. what do you see? >> that's right. market's down today. a lot of that blame is getting put on greece. we have a chart here that would show that these greece worries are not a problem for u.s. investors. here it is. it's the s&p 500. that's the orange line. and it's plotted with the number of times that the word greece is found in headline news stories. think of this as a sentiment indicator. the higher the reading the more times greece is in the news it's in focus the bigger of a concern it is. and a couple points to make of this chart. one you go back to early 2010 some of the highest readings of this indicator. also late 2011 into 2012.

that's when greece was most in focus. if we looked at how the s&p 500 performed, there was indeed some volatility but i'm very encouraged by the fact the s&p 500 was able to rally through those concerns in each of those instances of course, that long-term uptrend continued. now, point two, if you look at the more recent data we can see much lower levels. greece is less in focus. it's less of a factor. we think it's indicating that it's more priced into the market market. overall there's problems with the market. we don't think greece is one. if you want to use this as a signal days when the market's down, greece is in the headlines i think this chart suggests today's the day to buy stock. >> hey-ai it's tim. how do you explain the fact that even in the office where greece was looking like a done deal the s&p was stalling? and the s&p arguably has been stalling for six to seven months at least at a minimum. certain parts of the underlying the nasdaq has outperformed. the russell has even outperformed. but there have been a lot of times during the last six months where we thought we had a grecian deal and we still didn't see stocks break out. >> yeah i think these are

u.s.-centered problems. if you look under the surface, you guys were talking about there's these industry rotations going on. while the market's lacked direction, we've been in this range for a couple months now, underneath the surface there's areas of the market that are doing very well and areas of the market that are not doing very well. much more important to the investor right now, rather than these headline concerns are finding those areas of the market that are doing well. technology, financials. that's where investors have to be invested right now. >> is there other spots, though? i know technology and financials and it seems to be we always beat on that drumbeat all the time but are there other areas in the market right now? is health care in that sector as well? >> i would definitely put health care in that sector. that's been an established leader throughout this bull market. there's really no signs of a topping in the charts relative to the market looks great. i think health care continues to do well too. >> it certainly was a big hot spot today wasn't it in the markets. what do you think of all of this? >> you talk about large cap tack and to me obviously it's very safe. we know the billion sheets here. but they've really stalled. when you think of the s&p trading in a really tight range

we know what makes up a good part of the s&p, apple and microsoft and google and microsoft and google, for instance, and intel, these are all huge components of the nasdaq 100, they're all down on the year and they really can't get going. apple had a lot of its gains, we're going to talk about that later in the show in q1 but it's also gone a lot of sideways. big tech, while a lot of money has been parked there because it's safe. i'm not sure that's the beta trade. i'm not sure that's the trade that's going to help you beat the market from here on out the rest of the year. >> okay. thanks, guys. we'll get back to all of this in just a second, but coming up next, big money in big health care. we were just talking about this sector. why the hottest sector on the street could be getting ripe for even more consolidation. going to lay out the next names that might be hot for the picking and tell you who can profit and how. plus alibaba taking direct aim at netflix with its latest plan to jump into video streaming. but could that be a good thing for the streaming giant? a top analyst will explain. and later on electronic arts up 75% in the past year. but could virtual reality take the stock even higher? the ceo will explain in an

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we've got a news alert on the gap. moving higher in after hours trading. courtney courtney courtney reagan give us the details. >> 175 of 600 north american gap stores over the next several years. it's also cutting 250 headquarters jobs in the fiscal year 2015. but gap also reaffirming its full-year eps guidance of 275 to 280. the result of the closures and cuts will be about $25 million in annualized cost savings starting in 2016. gap inc. ceo art peck tells me these store closures are not driven by digital shopping shifts or the current business that it's really about getting the fleet to the right size. further, peck says this is not previewing the death of the mall, gap is hosting investors tomorrow in san francisco and no doubt will speak more about this but i also want to tell our viewers to tune in to cnbc beginning on "squawk box" tomorrow for my interview with mr. peck. it's actually his first tv

interview as ceo and the first time that we've had a sitting gap ceo on cnbc in at least nine years. so this is one i'm really looking forward to. mandy? >> making history of sorts. thank you very much, courtney reagan. let's trade p. what do you think, pete? >> they're talking about the right size, and none of us really know but obviously when a ceo comes in they want to make a splash they want to make some decisions and make things change up a little bit. >> and they always bring a really big broom. >> they do. i think when you look at what's really going on in retail the ones that are having the greatest success right now are those finding new areas of growth, and i mean that to be -- maybe it's online maybe it's in the male or the female category that they didn't have exposure to before. i look back last week and we talked about lululemon, this is a stock that was absolutely flying to the up side but where did they have all that growth? online. they've been absolutely killing it online. that's 20% of their revenue and moving into menswear. closing down stores maybe that is the right decision right now but that's a little bit concerning i would think. >> do you adisagree with peck's comment it's not the end of the

mall? >> yes. >> anybody disagree or agree with him? >> humana's been in this range -- not humana. i'm sorry. the gap. i've got humana on my brain. the gap's in the range between 35 and 45 -- >> i thought i was on the wrong show for a second. >> 38 and change. 10 1/2% short interest. the risk is probably to the up side. you know gps. >> let's move on. now guy. >> i'm headed into health care. >> you're ahead of us. in the health care space. kicking off our top trades. cigna shares hitting a record high after the "wall street journal" reported that anthony anthem approached the company with a takeover bid which cigna later reportedly rebuffed. we should note later on in the day reports surfaced that united health could be eyeing cigna as well. guy, your cue now. >> sorry about that. i think humana is the way to play this space. in you go back in early june here's a stock that went from 180 to 220, they were partnering with goldman sachs for a potential takeout for them. i think where there's smoke there's fire. they say there's nothing to it,

there's nothing out there, but this whole space is in consolidation mode. they are more expensive than the rest of the space at 21 times forward earnings. i think they're the best in breed. i think you buy the weakness in hum. >> anyone agree or disagree here? >> i would agree with guy. i look at humana i think it's a great opportunity. the sell-off is definitely an overreaction. this is a name that was actually skying just the other day on the rumors of what they might be up to. you look at the health care space right now we know there's consolidation. i think gloegz to continue to be con sought daigs in health care in other areas of the marketplace right now. this is just the beginning. we're at the tip of the iceberg. >> tip of the iceberg. next up a rough day for the chip stocks. micron trading at 52-week lows after morgan stanley downgraded to underweight from equal weight. the downgrade weighing on the entire semiconductor space. dan, this is quite the loser recently. >> yeah. you know it's down 30% on the year. so this call today isn't a huge surprise. i think a lot of investors have been pricing in higher inventories and weaker pricing,

but i'll just say this. when you talk about sentiment i was just looking, there's 25 buy ratings still on this stock and only six holds and three sells. so if you do see a sustained period of weak pricing and weak margins, then you're going to see more of wall street banks banks kind of peel out of this thing at least from a sentiment standpoint. the stock is breaking huge huge technical support at 26 bucks. i think you probably get to this analyst price target in the low 20s in the coming months. if you do not see an uptick in pricing. >> timmy? >> i think micron, probably the level's around 24 24 1/2. but i agree with dan that more of the enthusiasm that's -- it's 12 months ago we learned these guys were no longer a commoditized business with pricing power. that's yesterday's news. the stock you look at is intel. this is a much more diversified play across the entire chip space, a company we've also had a fresh round of weak pcs, delayed seasonality, all these things we seem to hear over and over on intel. data service to me data skrernt a very exciting part of their business. the valuation is good. it's a case where you're getting paid to be along for the ride on this one.

i look for the chart on intel, somewhere around 31 1/2. i think that's your bottom. that's the place where you continue to trade. we're right there. and this is a place where i think investors have to take a look at this stock because it's a time where the chips are overly beaten up and i think there's not as much cyclicality there. >> currently sitting at 31.39. next up twitter. this stock is also hitting a 52-week low. as co-founder jack dorsey gets set to take the reins as the ceo in about two weeks over the weekend. twitter investor and saudi business magnate prince al waleed said he would support dorsey if he wanted to stay on as the permanent ceo. pete. >> i'm not so sure that dorsey wants to necessarily be the permanent ceo. i think he's happy at square. but we'll see how that plays out. certainly they needed some changes at the top and i think cost costolo despite the fact he had year over year revenue growth of 70%. this is a guy who's hit just about everything out of the pack. but they staggered on their users and engagements are a huge problem. they've got to figure monetization and they wanted to add somebody else who's going to run this and try to figure out

how they can get off the number they are right now. 300 million users. they've had that for multiple quarters in a row now. they've got to get growth and figure out how to monetize things. i don't know if that's in mobile or how they're going to get it but there's an engagement process twitter needs to explore to make it more sticky. over a billion have tried twitter. only 300 million are using. >> i think the issue is to your point. it's the user base. it's a scale thing. they're growing sales at 50% a year here. they're expected to have $2.2 billion in sales in 2015. that sounds great. but unless you can grow those users. and listen -- here's something that hasn't even happened yet. when does the fake user thing come out? that's a problem for facebook too. >> everybody's got a high -- >> that's what i'm saying. they're telling us about all these offline -- that's coming to a theater anywhere you. so the 300 million m.a.u.s is probably a lot lower. >> how much of a takeover target is twitter potentially, buying

google or somebody else? >> there's not a lot of people that can take him out. they need to improve return on investment. r.o.i.c. the advertisers need to want to place their ads there. they need more bang for their buck. that to me is the bigger issue. we know they're stagnating. i think it's all about product enhancement getting advertisers on board. >> did anyone notice last week when dave faber kept pushing jack dorsey would you say yes if you're going to be asked to be the permanent ceo? what was he saying? skirting around the issue. is that a yes, sir? >> it's tough. >> coming up, greece fears weighing on stocks. but we're going to give you the definitive playbook on maybe how you can profit from it and at least protect yourself from a great exit. in the meantime, here is what else is coming up on "fast." >> announcer: disney isn't the only stock with the force. >> may the force be with you. >> announcer: shares of video game maker electronic arts are up over 70% in the past year. and the ceo will tell us why the release of the "star wars" game could be a game changer.

plus, why has apple gone sour since being added to the dow? we'll tell you why the world's biggest stock may have just caught the oldest curse. when "fast money" returns.

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some of the positive trials were there. although there obviously is a little pessimism about certain parts of the study it's important to note here the company's having a conference call that's going on right now with regard to what these results were like. so we'll bring you any more details but for right now you can see a 36% drop mandy in what's happening with avalanche biotechnologies. back over to you. >> thank you for the details. let's trade it. avalanche biotechnologies. >> this is binary biotech. this is the opposite of the

celgenes and gileads. this is not a one trick pony but pretty close. and this is what happens. big short interest about 10%. to me it's imperative that effectively holds right here 25 bucks. it's going to be a hyung volume day tomorrow. you're not buying this on valuation. but if you do see a flush tomorrow on a day it trades north of 10 million shares and it holds 25 this might be worth a look. >> let's bring in cnbc's meg tirrell for more on avalanche. dom was saying there's a conference call going on right now. have you been listening in? have you heard anything of note? >> yes, mandy, what i'm hearing right now, avalanche, what it's designed to do it's a gene therapy. what they're trying to provide here for macular degeneration which now is treated with maybe monthly or biweekly injections into the eye, now, they're trying to make that less frequent. and actually potentially only treat once with their gene therapy treatment. and then actually solve the problem. what we're seeing and hearing is people have to get follow-up

ones. the company has not been pushing it necessarily as only a one-time treatment as you hear with other gene therapy. but it sounds like at least from what i'm hearing right now people are disappointed in the idea that patients would still need any injections after that first treatment. that could be what you're seeing with avalanche right now. >> avalanche on the shares of avalanche. thank you very much. meg tirrell joining us on the "fast" line. as for shares of netflix, they were in the red today. on reports that alibaba will launch a streaming video service in china within the next two months. could this service pose a real threat to netflix? rosenbloom securities managing director martin is on the "fast" line. what do you think, martin? >> i think the stock probably would have been taking a more severe hit if there's real worry because obviously it had a strong advance lately. i think it really comes down to content and in that sense netflix has an edge here for a while because they have a lot of deals already in place lined up including global rights that include china in many cases and i'm talking about content deals with disney time warner and so

forth. alibaba would be in many of those cases really starting fresh. so you know netflix has a lead and an edge there. the bigger picture if you're talking about a few years down the road alibaba i think has a strong interest in developing local content in china. the film industry is something the government and other companies are pouring a lot of money into. later down the road local chinese tv film content could be more of a challenge. but i don't think this is a big worry for netflix in the nearer term. >> i think you brought up the issue. you touched on the issue of what happens on home turf. obviously alibaba might have the edge of a netflix at home in china but how much has the china growth story been a part of netflix's story? >> two parts to that in terms of an answer. number one, i don't think it's baked into street estimates at this point. certainly over the next couple of years. at the other hand i think the

stock performance on netflix and obviously stock split and everything i think there's definitely a high expectation that china's going to be a big market for them. so it may not be in the published estimates. that doesn't really matter right now anyway. but i think there is high expectation for china growth. as well as the foreign markets. >> martin, thank you so much for your comments. and how do we trade this? >> i think you still trade it from the long side. given the run the stock had and given this news i don't think it traded all that poorly at all. i still think netflix goes higher from here. yes, it's pulled back over the last week or so. i get valuation is ridiculous. but just signed a deal with marriott. you saw the shareholders approved a repurchase plan of up to $5 billion a week or so ago. the tail winds are still there. i think netflix goes higher. you've got to own it in the july 24th earnings release. >> it does come down to content and international expansion. only 21 million international subs right now. i think that number can absolutely explode without china. you add china to the mix in a partnership maybe with alibaba, that's huge. >> partnership. okay. thank you very much. coming up, gaming play.

electronic arts ea betting big on its new "star wars" game. find out what the ceo has to say about the force and his company's jump into virtual reality when he joins us live. plus, what does today's historic deal between target and cvs mean for both companies? the inside scoop when both the target ceo and the cvs health ceo will be joining us live.

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stocks slumping to start out the week with all three averages off by around half a err p-cent. the dow leading the losses with 107 points. here's what's coming up in the second half of "fast money." playing to win. video game maker electronic arts up 30% so far this year. and with the release in "star wars" some traders say that could just be the quinning. we're going to hear from the ceo himself in just moments from now. plus "jurassic world" turning into a monster debut at the box office. logging the best opening weekend of all time. yes, all time. and we've got a top analyst who says the dinosaurs may have just saved the summer. we'll explain what we mean. but now it is time for pops and drops. the big movers of the day. a drop for u.s. steel down 5% guy. >> u.s. steel has not been able

to get out of its way for the last six or seven months. $20 support on the down side. feels like it wants to go. prices still under pressure. you buy it if it gets to 20. >> a pop for first solar up 6% tim. >> an exciting day. these guys achieve record conversion on efficiency. for this space their total volt yaik efficiency. good day for these guys. >> ford gown 1%. >> the misery for ford continues ever since it broke through the 200 and 50-day moving averages. we may see this bottom out a few more dollars. i'm looking for $13 a share. then you can start to dip your hands in. >> pop for railand up 5%. >> huge volume day. the merger with ryeland here. this deal's going to take some time. a lot of things are going to go on as far as rates and the home building space. i'm not chasing here. i know there are some guys on this detection who think there's going to be higher highs in the home builders. i'm not one of them. >> a lot at stake in the markets

this week as greece tries to cut a deal to keep it afloat. what happens overseas could have a big impact on what happens here at home. jay pulaski who runs utz advisory was the co-chair of the global allocation committee. welcome to the show jay. you have three ways you've laid out that greece could play out this week. let's start with the good. we'll get on to the ugly. what is the best case scenario? >> thet c scenario is over the next couple of days greece and its trio of negotiators, the ecb and the imf come to an agreement. i think if that's the case we're through the worries at least for the near term. most likely until the fall because everyone accepts that whatever deal is done here in the near is merely a short-term deal to get through the next month or two. there has to be a longer bigger longer package for greece to put it on a sustainable path going forward. >> not just a band-aid but what is the worst case scenario the flip side here? >> well the flip side would be that there is no deal and more

than that, that greece would announce that in fact they're going to default on their debts and they plan to exit the euro zone. and there it would be a big deal for markets. while markets have sold off particularly in europe but also here in the u.s. on concerns about greece an exit from the euro would be a big deal would surprise markets and i think you'd see european equities down probably 5% to 10%, u.s. equities down 2% to 4%. the trick would be whether the ecb could come in and speed up quantitative easing kind of put some more liquidity into the system and reduce the real risk of significant financial market breaking. >> greece could default and still stay in the eurozone couldn't it? >> yes, they could. and that's one of the many uncertainties about how this is actually going to play out. and that kind of leads me to my third scenario, which is the possibility of something in between an agreement and a default actually where greece does not come to an agreement with its creditors but nor does

it default. it simply says we're not going to make these payments and it's going to turn the tables on the creditors. because heretofore all the focus has been on what greece needs to do the costs to greece of not doing a deal. i think they'd like to turn the table and say hey, look if we don't pay the cost is going to be to the french to the germans, and to others in terms of writing off our debts and those numbers are one of the few numbers you can get a handle on. for example, in germany, how much will the bundesbank have to write off if greece defaults? that's something angela merkel does not want to have to discuss in the bunde. tag. >> she does not want to have to tell the german people that either. >> thank you very much. jay pelosky. thank you for joining us. >> one of the things jay's pointing out is there's some fluidity to the outcomes. jay knows about this stuff. another place there could be ramifications are places like spain or italy. what do you do with these markets who a lot of people think if greece exits it's just a matter of time you hear about

catalonia, this breakaway thing, those are opportunities. if you look at the european union, the core and i do count spain and italy as the core they're going nowhere and the spanish market to me is a very interesting place. you don't need to buy it tomorrow but this is a case where it's been pushed around by higher yields. if the spanish 10-year settles in around 250 that's a very good place to own this market. >> the bond market is where you're looking. the bonds should have traded a lot better. if there are that many concerns about greece, tlt. once it got above 1.19 it should have kept going. it didn't. that disappoints me. what was resistance becomes support. in terms of yield it's 2 1/4 in the 10-year. >> i would just make one more point. we're all been pretty calm about equities. we've soon the sell-off in european equities. especially the ones like germany in particular here that listen we haven't had a sell-off in the s&p of more than 10% in a very long time. but when you look at the s&p chart and you look where it was last october and we can't even remember why it was down where it is if things get ugly in two of those three scenarios we're going to have that sell-off.

it's going to come. i'm not saying it's going to come in june right around now but to be too complacent in a market thans trending higher i think the path of least resistance, at least in the s&p, is no longer higher here. i think you really have to be cognizant of these sorts of things. i'm not committing new capital to u.s. equities here and certainly not to european. >> okay. point made. coming up electronic arts making major announcements just moments ago. we're going to go live to the scene with ceo andrew wilson in an exclusive interview right after the break. plus cvs buying target's pharmacy business for almost $2 billion. and we will hear from both ceos on what that deal could mean for you and those stocks. that and much, much more.

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available at participating retailers. the most affordable way to print. hp instant ink. cnbc's julia boorstin is with the ceo of ea andrew wilson at the event in los angeles. julia, over to you. >> thanks so much mandy. and andrew thanks so much for joining us here from your big press announcement. folks here obviously very excited. and a lot of the excitement was about the new "star wars" game you unveiled. how big do you expect "star wars" to be for ea this year? >> i think it's going to be huge. "star wars" is one of those properties that kind of transcends generations.

i was watching "star wars" 30 years ago and now i look at kids today and they're watching "star wars" wars". there seems to be no break in the passion. what we're trying to do is bring that passion across generations and let everyone get in and fulfill their "star wars" fantasy. >> do you have an idea what kind of move "star wars" can give you this year and next? >> we factored that into our forward guidance but we are cautiously optimistic. when you see what we just demonstrated today not just on console which is spectacular but what we're doing with "star wars" the old republic and some stuff we're yet to talk about in mobile we think it could have a profound impact on our future. >> sports is obviously a huge part of your business. madden and fifa are two of your biggest games. how do you keep these games fresh after so many years? you have new versions coming out all the time. how do you convince people to buy them? >> sports continue to evolve. bigger, faster better stronger. so the athletes in the real world sports continue to evolve.

the passion that people have for their team and the leagues they're part of continues to evolve and grow over time. when we couple that with innovation and creativity inside the game to change the way you play, change the way you interact with the sport but more importantly give you a closer interaction with the sport. a closer interaction with the fans who love your team. >> i have to call out the example with your nba game. tell us a little about that technology that changes that up. >> yeah listen i built sports games for a really long time. i had the fortune of working at ea sports for us. the single greatest thing that fans ask for is to put them in the game fulfill that fantasy, to step on the field on the court, on the ice. and what that game face hd does is literally with a smartphone let you put yourself in the game better than anything before. >> obviously, that got a huge reaction here in the room. now, i have to ask you about fifa. it's a huge franchise for you. 000 there's this huge scandal. how do you weigh in on it? >> it's a really good question. for us we're game makers. so our first and number one job is to build an amazing game that captures the spirit of football.

pele up there today, crowd went nuts for pele. and what that is the passion for football. and our job is to capture that. as it relates to the organization we're very happy and supportive of what fifa's doing in terms of addressing some of the questions about that. >> will the scandal impact sales of the game? >> i don't believe so. i think people know that what we're here to do is build them a great football game and we're going to continue to do that. >> ea access. you're allowing people to play unlimited games for 5ds a month. are you trying to build something that's like the netflix of video games? >> what we know is when you play games you have a better life and when you play more games your life gets better and better. what we're trying to do is introduce a way for consumers in that particular genre to consume and play more grahams. and we think that's going to have a profound impact on the amount of people playing. >> you haven't announced how many subscribers you have. can you tell us now? >> it's growing and growing ahead of our expectations. >> so you are trying to be the netflix of video games. >> listen, if we were the netflix of video games that wouldn't be a bad thing. >> and just a final question

about virtual reality. it's the big buzz here at e-3 this year but you guys barely mentioned it on stage. how big is vr for the future of ea? >> again i talk about that fantasy that people have to put themselves in the experience. game face hd is one way to do that. virtual reality's another way entirely. we've got studios and labs going across our entire organization looking at all the different types of virtual reality and really trying to investigate the best way to take fans and put them in the game and let them truly escape and immerse themselves in the fantasy. >> we're out of time but at what point will that start to impact your bottom line? >> listen it's early days yet. you know it's years, not months, i would think. >> andrew wilson ceo of ea, thanks for joining us. mandy, back over to you. >> thank you very much julia boorstin. there's a mantra, more games, better life. tim, this has had a monster rally over the past year. 75%, 80% to the up side. how many more legs does this stuff have? >> that was my mantra in college when i was cutting class and

hanging out at the arcade. when i think about electronic arts it's a company that's doing everything right. they've got a fantastic slate, their switch to digital has been very impressive. it's a company doing a lot of things in digital reality. in virtual reality i should say. the big issue for shareholders is what are they going to do about the leverage in the balance sheet, getting cash back to investors? that's why you're neutral on the stock. that's a catalyst to the next level. but right now the rest of that stuff is in the preps. >> it's a neutral for you at this stage. >> when you look at this stock up 30% on the year they do have a great balance sheet, they buy back their stock but i think it incorporates a lot of the good news about "star wars." people have known this is company. and the sports businesses, they really needed the "star wars" thing to work. you have a company that's growing earnings in mid zpeenz sales in mid single digits trading about 20 times. i don't think it's that compelling up -- >> do you get nervous because the stock's trading on the 50-day moving average, literally right on it. if it breaks there's a huge air pocket there down to the 200-day moving average. >> definitely a huge air pocket. they made great points but look

at the last quarter, operating margins were close 20% which smoked what the street was looking for. i think the all-time stock was 70 back in 2004. it tell feels like there's room to the up side. while tim was in the arcade i know i was in the library studying. >> station break it's called. galaga back then. it wasn't digital. it was a bad video table that i sat with a big soda. >> pinball machines. >> exactly. it was. i swear. >> okay. still ahead the box office is under attack. "jurassic world" making a monstrous debut. absolutely crushing expectations. the summer box office. those details ahead. leave early go roam sleep in sleep out star gaze dream big wander more care less beat sunrise chase sunset do it all. on us.

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spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day. one group that managed to avoid today's sell-off was the movie theaters. names like regal and cinemark are getting a big pop as "jurassic world" smashed estimates, turning in the best domestic and worldwide opening weekend of all time. our next guest says the blockbuster hit may have just saved the summer box office. paul dergarabedian is the senior analyst at renttrack. he joins us from los angeles. i do apologize for that.

but good to see you. >> don't worry about it. it's great to see you, mandy. thank you. >> good to see you again. why do you say this is going to save the summer box office? >> i'll tell you, all it takes is one big record-breaking half billion-dollar opening to turn things around and "jurassic world," unbelievable. it really obliterated all expectations. so let's break it down really quick. first of all north america, biggest opening weekend of all time with $208.8 million. internationally, $315.3 million for a worldwide. and this is the big number. worldwide first weekend total of $524.1 million. if that can't turn things around, i don't know what will. >> which of the studios are going to win out of this do you think? over the course of the summer. >> well for universal they've had a great year. i mean, obviously in february breaking the opening weekend record for that month with

"fifty shades of grey." "furious 7" in april for universal broke the april opening weekend record. and now with "jurassic world" universal holds the biggest opening weekend of all time. and this is great for all the movies in the summer because think of how many people around the world are being exposed to in in-theater marketing and trends for the upcoming slate. the more people you have in theater that's going to boost your box office down the line. and remember too beyond the big screen, which is a huge play here down the road can you imagine how well "jurassic world" is going to do on demand? it's going to be a monster there as well. so this brings long-term benefits. and it's great for the summer because we definitely need a turnaround after having a down memorial weekend and a couple weeks down after that. this puts us right back on track. >> paul -- >> pixar's "inside out" is opening later this week. >> mm-hmm. >> number one.

number two, imt max, is this something that plays well into them as well? >> absolutely. for imax for the premium large format for 3-d, there is no better way to see "jurassic world" than first of all in a theater on the big screen. and then to value add the immersive experience of 3-d and imax and the large format screen. plus dolby atmos sound and laser projection and all of that just makes the movie theater experience that much more compelling. and i say it to all the naysayers who say on demand is going to supplant the movie theater, i say no way. these two technologies live together in the same world. so you have the theatrical experience and then that drives the small screen down the road. they're complementary experiences. >> paul, thank you so much for joining us and thanks for being a good sport as well. >> no problem. thank you. >> let's bring it back to the desk and trade this baby. >> what did you -- >> he's a good sport because he listened to pete speaking in his

native tongue. >> that's armenian. that's not a good sport. if you've got a paisan -- >> take it easy pal. apparently you guys are short tempered too. >> i think you stay long imax. i get the valuateion. there's a 20% short interest. and i don't think they've gotten squeezed yet. today should have been a trade where it traded four or five times normal volume. it did not do that. leads me to believe you stay long imax into the july 23rd release. >> let's dive into the big deal of the day. target agreeing to sell its in-store pharmacy operations to cvs health for nearly $2 billion. moments ago jim cramer spoke with both ceos and asked if we could see more deals like this at target. take a listen. >> you wanted wellness to be able to up its game make more money in the rest of the store, be able to concentrate on the rest of the store, and this is not necessarily the beginning of the mallization of target but it just happens to be a one-off deal. >> jim, it's absolutely a unique

one-off opportunity. the chance for us to partner with someone who brings scale, experience expertise into the space, can help us fulfill our commitment to wellness. but you should not expect to see this happen in other places. >> well you can catch cramer's full interview. that's just a little tasty teaser. the ceos of both target and cvs health will be ahead on "mad money." how do we trade target and cvs? >> i lying both names and i like >> i like both names. we've seen it more and more, best buy and others as they rejuvenate some of their sales. i look at cvs. they did their omnicare now this deal. seems like they're making all the right decisions going forward. they dropped the cigarettes. there's all kinds of ways this ceo is trying to figure out how he can move this country in the right direction. >> what do you think the right direction would be? >> for target or cvs i?

think cvs right now might be at a pause. this is 12 billion in deals just this year alone. >> yeah that's a lot. tim? >> i would go with walmart over target. i think target's had a great run. listen to them say we've got no more room to do deals is disappointing. the analysts are all over the synergy, what they can do in private label. tloins that. go with walmart over target. better valuation. i know walmart's got problems but look at the charts. >> shifting gears. since apple has been added to the dow the shares have gone well, kind of nowhere. some say they don't see that changing. dan's got tonight's options action. dan? >> well, options volume ran 1.2 average daily average volume today. a little more than expected. the stock was down a little bit. but just as we were talking earlier in the show the stock has gone sideways but a lot of its gains came 15% up on the year. they came in the first quarter of the year. this is what's happened since the company was added to the dow. it's important to think about a company that's i one of the biggest ones.

this one has found support. we need catalysts. they're coming in the fall. i don't think you need a breakout before then. >> thanks, dan. your first move tomorrow when we return. more "fast money" up next. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit?

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it's that time of day. the final trade. let's go around the horn. let's go from tim. >> it's that time to talk about something we talked about in the show, which is intel. so if you look at this company it trades at 20% cheap to big cap semis. around 15 times 2016 estimates with i think very good support around these levels. you set it up here you buy it here, you stop yourself at 50 cents lower and you play probably for a conservative move to 37 38. >> okay. pete. >> brian cornell and what they're doing at target i think this is a buy. i disagree with tim. i know walmart might have gotten beat up it's got more up side. i like what target's doing. they're making all the right moves. cornell's moving in the right direction including target express. this is a stock that goes pier. >> dan. >> i also disagree with tim. i think a conservative 36 37 target in intel with a 50-cent stop to the down side i think you wait till you see a test of 30, i think you're going to get that in july when they report their q3 guidance. i think it's going to be disappointing. >> guy-k we make this a clean

sweep? >> courtney reagan has an interview tomorrow with gap store ceo. i think that's enough news to get the stock higher and gps to the up side. >> you caught a break there, tim. >> i tell you. i'm about to jump out a window. >> 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 money. my job is not just to entertain, but to educate and teach, so call me at 1-800-743-cnbc or tweet me @jimcramer. what the heck does rite aid have to do with greece? simple question that i got on twitter today. the answer greece drives