usually about when people get it wrong or do something extraordinary that they regret later, i can't think of anything that nike has done over the years. >> they are going to be the one to watch. >> keep hoping. >> rob, thank you. mike, really appreciate it. that does it for us on "closing bell." "fast money" begins right now. cnbc special coverage of the terrorist attacks in brussels continues. let's get right to sue herera back at headquarters with the very latest. sue? melissa, thank you. three bombs exploded at the b s brussels airport in the city subway killing at least 30 people wounding at least 230 more. as the you'european capital wase again locked down amid heightened security threats. the islamic group has claimed responsibility for those attacks. president obama attend ed a baseball game in havana as part of his historic three-day visit to the communist island nation. he said the u.s.-led coalition will continue hitting isis militants. >> this is just one more example of why the entire world has to

unite against these terrorists. the notion that any political agenda will justify the killing of innocent people like this is something that's beyond the pale. we are going to continue with over 60 nations that are pound ing isil and are going to go after them. in the meantime obviously our thoughts and prayers are with those who have been lost. >> and showing solidarity european monuments were lit up for the belgian people. the brandenburg gate, eiffel tower among others bathed in the colors of the belgian flag. melissa, just moments ago the denver international airport evacuate add section of its main terminal as they investigate a possible security threat. in the wake of the situation in belgium, airports across the united states have heightened security. the terminal levels were five and six at the airport. flights continued while the possible threat was investigated. we'll keep you posted. back to you. >> all right. thank you very much, sue herera.

now let's get more color from the ground. hadley gamble joins us from brussels. hadley? >> reporter: right now a manhunt is under way here in belgium as authorities are searching for a man they believe is connected to the attacks we saw earlier today. he was caught on cctv just a few moments before two explosives detonated inside the brussels international airport. as you can see behind me at the maalbeek station, metro station, another explosion just an hour after the explosions at the airport around 9:00 a.m. international -- during 9:00 a.m. brussels time. of course you have to remember what's happening now, this is a city on high alert. planes and trains have been grounded for several hours now, although we did see a train passing by so perhaps they're starting to get the wheels in motion in terms of getting this city back on track, getting this city moving again. we're just down the street from center of politics, the eu parm

amount and council building where all the ministers meet on a regular basis, the beating heart of europe here in brussels. right now across the city vigils are taking place in terms of honoring these victims. we've heard from the prime minister of belgium today. he's come out and said this is a dark day for his country. he's also said that there will be three days of mourning beginning tomorrow. and he also sounded a bit like winston churchill earlier today in a tweet he said we will defend and protect our values and freedoms. we're confronted by a barbaric enemy. of course talking about what happened in brussels and we're united to fight that. the belgian prime minister coming out standing in solidarity with our european capitals that have faced similar threats. you have to remember this is the second time in four months that a european city has been targeted by terrorists and, of course, a serious feeling of unrest in the city tonight as people go about or try to go about their daily lives in preparation for tomorrow.

>> hadley, thank you. hadley gamble for us in brussels, belgium. of course these are tragic attacks this morning, but the markets around the world have been open. and what is most notable is the market reaction was very muted. whether you take a look on the european continent or here in the united states. so why do you think the market has been so resilient? >> this is an awful, awful day. unfortunately, the impact is much further reaching and longer term. i think it will take some time to determine the impact. i think governments react. central banks react. central banks will have to possibly react to this. countries react politically. they turn insular. they become xenophobic. it's a terrible day. but for markets and for the economy right here and now, in many cases, actually a lot of investors look for opportunity as perverse as that sounds. there are things that get sold off on a day like today that really even in the short to immediate it term are fine. >> they've been incredibly low. if you look over the past couple weeks in general. i look and say this has become

the new norm. i think investors are much more in line not to react to news like this and sell out of positions or aggressively short the market in general thinking that we're going to go much lower. they're much more calm. they look at it and they observe and they make sure that it's not going to be a deep event that will really dislocate stocks and what have you. i think it's becoming an understanded scenario. >> what stood out was the move or lack of move in gold. you would have thought either that gold would have been the safe haven or perhaps maybe this was going to be an area that might face pressure. >> but then we saw the dollar, right? the big mover today, and tim was talking about the political implications. i think that's really what we're talking about here. we've seen from, unfortunately, from other attacks that it doesn't have a big economic impact in terms of corporate earnings. so that's why investors probably didn't react. when you look at something like the british pound, that was down over 1%. on the idea that it becomes more

likely there will be a political fracture within europe, that's something that takes six months or a year for investors to kind of digest and that's probably the most direct market impact that i saw today. >> or it will take until june 23rd. >> listen, there's also the one-two punch of the fact the continent of europe has this migrant crisis. these two things together that we've had, these two big events. we have paris and this. it's not likely to abate anytime soon. when you talk about politically it really ties the hands, i think, of a lot of governments for fiscal stimulus when you think about it. when you think about european equities right now, the dax, the largest is down from its 52-week high. it's in a massive down trend. we saw this move in the euro over the last couple of weeks. that's not good for european countries. i think european equities are in a tough spot. i would not be buying it on even the slightest bit of weakness. >> if governments can't do

fiscal stimulus there's not room for monetary stimulus at this point. >> i just dropped some perspective in all of this. i think that 9/11 in this country basically started what was a major, major mistake process by the fed and global central banks. fighting, we're already in recession or on the way to recession, overreacting, showing the world we're ready to fight back and, in fact, unfortunately, i think it created a lot of missteps. there were so many reasons why that was the day the music died in this country. one of the reasons why i always look to the way central banks have reacted to events globally and politically and they're going to react to this. i think the fed has even indicated if china gets a sniffle, we're going to have to react. and maybe that's right but today is one of these days where if we think the fed was on hold for reasons related to maybe china doing something with their currency europe has possibly kicked to the curb again because that may be the best way to shore up issues. >> if anything, it probably puts a european easing back on the

table rather than the u.s. at this point in time. because for everything that tim talked about, we have multiple other economic issues there in europe. what was interesting actually european market pmis ticked up a little bit today. the rest of the world were down. down at 40-month lows globally. the other interesting thing is that export orders for almost everybody global ly had been falling and volumes of exports had been falling so that goes back to europe needs to weaken their currency. >> this graphic that we want to show you is the reaction how long it takes for markets, global markets, to return to normal. so preattack levels. and on average of 25 total attacks that have happened around the world, 2.9 weeks. >> think about where the market comes into this event and i know this side of the desk thinks we're getting ready for a correction anyway, technically you set up for -- i think markets are going to be lower tomorrow and i think the reaction today was calm. i think people will size up the entirety of the situation.

the vix is trading at 15 and that's too cheap. >> it shows you how the market responds to things. it's really news they're comfortable with. they digest it and make rational decisions. rumors are dictating the way stock prices and markets are starting to swing. whether or not that occurs or not, the news from this event is increasing the probability of the speculation that they could exit. >> i see what you're saying. >> the market is reacting to it. so, therefore, you have the pound react to it. you had traders sort of position on a rumor, on speculation not on actual news. that's the problem right now with the market. we're reacting to speculation. >> that's what markets do. we're never at equal ib ribrium. we're always speculating. >> i think it's very important to understand that and important to actually -- when you think about that process of investing, we watched it with the retailers, with other sectors that had so much negativity. the news comes out and hits and

the reaction to the upside has been amazing, right? the market is really digesting news, i think, in a very efficient manner, whatever you want to say. at the end of the day once it process it is it and gets the information wrapped around its head, bang, it's gone. i mean, it moves in a direction -- >> connect the dots, some of the stocks that we saw the expedias, the pricelines, the cruise line stocks, those stocks in your view will bounce? >> i think so. >> it's been on a massive run, david. >> i hear you. >> let's look at specific sectors. airlines in general. airlines, bookings are solid, right? demand across the board. compaapacity being managed. i look at it and say the airlines are being really well run right now. no question about that. right? so pick your spots. united airlines has the most exposure internationally. >> well run doesn't mean stock goes higher. >> in this environment people are questioning just how well run they can be with higher --

lower rates, mel? but ultimately a case here where the airlines are structurally different but not in this market. >> listen, i kind of get what david is saying but the problem is we have had this 13% rally in the s&p 500. it's lost a lot of steam. we know that there's a lot of things out there that could kind of derail global growth or the little bit that we have there. the fed just told us they are on watch. i think when you put together what's going on in europe with the migrant crisis, the propensity for increased attacks like this -- >> it's another thing on the pile. >> it really is. and that's the risk. to bk's point, better than expected data on the day you have this horrible event and probably counteracts it in a lot of ways. >> when we come back we'll hit the other big story of the hour and that is nike. it is tumbling in the after hours on a big sales miss. the stock confirmed the biggest fears the bears had about the global economy. we'll explain. plus, the head of u.s. equity strategy at bank of america has a warning for investors.

and it could have major implications for the market. we'll tell what you that is. later, will the tragic events in brussels put more pressure on the public stance on privacy? we'll have a special report. much more "fast money" right after this. woman: is that a newspaper?

man: yes. woman: it's quaint.

man: did you read about this latest cyber attack? woman: yeah, i read it on my watch. man: funny. woman: they took out the whole network. man: they had to hand out pens and paper. woman: yeah. man: could it happen to us? woman: no. we're okay. man: we are? woman: yeah, we brought in some new guys. man: what do they know that we don't? woman: that you can't run a country with pens and paper. it's not just security. it's defense. bae systems. ♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song.

welcome back to "fast money." shares of nike falling but sales coming in light for the quarter, so do these results give more fuel for the bears it to the left of me specifically, brian kelly? >> yeah. listen, let's put this in perspective. these earnings weren't bad. they just missed really good estimates. the stock itself trading 30 times earnings, had a very nice run. that's probably what you're seeing the reaction to. what i thought was curious, though, initially they talked about the revenue being a miss because of strong dollar but the dollar has been weak. so i'm not really sure how they're blaming it on that. once we get through the conference call maybe there will be more clarity on that. i think it was an okay earnings report. it doesn't really change my view, though. >> tim, you're long. >> there's a couple reasons you stay long nike. this is truly to me an ologopy at best. you're getting a bit of a

dividend in the way they're growing. their growth in europe, despite all we want to say about europe especially because of the comps don't look as good. china, despite what dan thinks about the stock market equating to the economy, ultimately again 7% of the chinese consumers are in the stock market so they didn't get that wealth effect he was talking about last night. nike, the valuation is difficult and people are going to sell. i think some of the winners more than they'll sell this one because this is a bulletproof -- >> these chinese futures orders, currency up 36%. there's no problems here, but i think what's really important to remember about our conversation about last night is that an iphone costs about 13% of the annualized income of a household in china. a pair of shoes don't. a dri-fit shirt doesn't. some simpletons that i may know may try to compare -- >> much more important to the lifestyle of an aspirational chinese consumer than a parent of nike airs.

i can make that same argument. >> we talked about nike on air about two weeks ago. roughly on inventories and we talked about foot locker. they previewed nike's quarter. foot locker said they were having difficulty in the high end shoe market, basketball shoes specifically, which speaks directly to nike. we knew there would be concern there. their inventory was up, 26%, when foot locker reported. there was concern talked about regarding the quarter. now they're discounting. you're seeing discounts online for nike. that's a massive signal from my perspective. a company that had no issues from a pricing power perspective, you see cracks in the foundation. >> i will extrapolate nike on the inventories level. the sales on the economy wide as that prerecession levels or recessionary levels. they mimic everything else that's going on in the world. >> earnings one of many reasons our next guess says the rally

could be in jeopardy. the head of u.s. equity and quantitative strategy for bank of america/merrill lynch. great to have you at the nasdaq. your price target for 2016 year end is one of the lowest on the street, 2200 -- >> 2,000. >> even another. >> my goodness. >> you've had it since before the rally from the february lows. what are you thinking now? >> it wasn't because the market sold off violently in the first month of the year. it was really because we saw a lack of fundamental support for equities. and a couple of things happened at the same time. first of all, we're in a profits recession. there's no two ways around it. we've had two quarters of negative earnings growth for the s&p 500 equals a recession. so that's not a great setup. on top of which you have the fed embarking on a long, slow tightening cycle. so tightening into a profits recession doesn't sound like anything to throw a big party about. on top of that you've got credit spreads widening.

you've got the capital markets are basically shutting down. did you know that we had zero ipos in january? zero ipos. normally you see about $15 billion come to market the first month of the year. nobody is raising capital. nobody can raise capital. if they are, it's at much higher prices. i feel like this is a really great setup for risk assets to do well. >> you named a litany of reasons why not to believe the rally that we've seen since february 11 lows. when you add what's going on in europe today, how does that change at all your view of the world and view of the u.s. stock market? >> geopolitical risk is hard to model which is why i think nobody does it. oddly enough following most geopolitical crises the market rallies which is an odd factoid. wars are good for economies and wars are good for the stock market. but barring that i think there's a lot of uncertainty that's brewing on a global basis.

you have a political election coming up with fairly polarized set of candidates -- a lot of uncertainty around tax policy in the future, you know, what are our tax rates going to be in 2017? it's kind of up for grabs. so i think all of this could crimp spending, could crimp longer term planning. are corporations really going to plan big projects in the face of all of this uncertainty? i wonder about that. >> so simply what will be encouraging for you? >> what are we looking for to get bullish? >> what do we need to start the turn? >> i think a couple things need to happen. we need to see some kind of material sales growth, and that's been the missing link like look at all the earnings reports we've seen. earnings beat but sales missed. they're manufacturing earnings through buybacks or cost cutting but it's not real growth we're seeing at a fundamental level. i think we need to see a little bit of a pickup in top line and along with that a pickup in

demand. >> right. >> what worries me and keeps me liking stocks with pricing power which you mentioned earlier is the fact that i think inflationary pressures are still looming large. if you look at global capacity utilization right now, it's the lowest that it's been in 30 years. there's a lot of slack in the economy, which means companies are going to have a tougher time raising prices than they would in a normal environment. so i think you want to buy anything with pricing power, with cash return, with quality, large over small caps has been our call for the year. >> your favorite secotor is tec? >> favorite theme is big cap tech, big, old, ugly tech companies paying decent dividends, growing their cash returns story. nobody owns them. everyone hates them. they're cheap. what's not to love about that story? >> great to see you. thank you. >> great to be here. >> from bank of america/merrill lynch.

you're one of those people who hate big cap tex. >> there is no top line growth. that's really the issue. so you're buying into this balance sheet. you're buying into this -- and these guys have been firers of people and they don't really have pricing pressure the look at intel and stuff like that. to me i think it's a safe bet to be in a market that's very, you know, uncertain at this time because of the balance sheet. >> i'm not a bull on the market at these levels whatsoever. i said flatten the year. the market will be platt this year. i look at the dollar. i look at oil. oil has rallied significantly. what kind of impact is that going to have on earnings? and the dollar coming in a little bit, what kind of impact is that on earnings? you get your head around $120 earnings in the s&p. could it be $123? is the multiple 17 times? >> there's no way. >> i'm not suggesting it is. there's a range there that you have to think about. what is that impact? how is it going to react? >> up next, one group of stocks seeing its best day since march 1st. we'll tell you what that group is and if any of the names are worth a look for your portfolio.

i'm melissa lee. here is what else is coming up on "fast." tonight on "fast" mark farber weighs in on what the unfold iing terror in brussels means for the market and the global economy and whether there are any assets worth seeking safety in right now. plus -- do the latest it terror developments out of belgium put more pressure on apple in its battle against the fbi? we have a special report and a look at what it could mean on shareholders. much more "fast money" right after this.

welcome back to "fast money." a win for merck in the patent dispute with gilead sciences over its hepatitis c drug. one patent from merck on the hepatitis c treatment as valid in the case filed by gilead sciences. a win for merck, the stock is up 1.4% after hours and shares are reacting down about 2.5%. melissa? >> thank you very much. let's go to david, a group that's headed to the biggest winning streak. >> gilead, this is a blow. to a franchise that, again, is a massive part of the revenue stream that is looked at as a

potential deteriorating sort of asset. i look at it and say it's a below for gilead. i would wait before i stepped in to buy the weakness. >> dow component nike falling after hours on a big sales miss that call halfway through. we'll hear on the impact of the u.s. dollar, china and the competition all when "fast money" returns. ♪ you're not gonna watch it! ♪

♪ no, you're not gonna watch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song.

let's get back to headquarters for the latest on the attacks in brussels. melissa, a belgian prosecutor says police raids are happening around the country after two men are believed to have staged a suicide bombing at the brussels airport and a third person fled. a new explosive device containing nails found in a raid near brussels. an isis flag and chemicals also found there. at least 30 people killed and 230 wounded in the two airport bombs and another in the brussels subway system. now the islamic state is claiming responsibility for the attacks in a statement it said there will be black days ahead for the aggression against it. u.s. officials say they believe the claim is authentic here from isis. meanwhile, democratic presidential candidate bernie sanders speaking out on the

attacks while campaigning in arizona. >> improved intelligence sharing in the united states and our allies all over the world. effective monitoring of social media to stop the recruiting efforts of young people led into the terrible life of terrorism. >> in brussels people paid tribute to the victims of the bombing attacks by laying flowers and lighting candles, others used chalk to write words of solidarity on the ground. back over to you. >> the market having a tepid reaction. what do terrorist attacks mean for the markets right now? the editor and publisher of the gloom, boom, and doom report joins us tonight. marc, it's always great to speak with you. >> thank you for having me. >> the last time we spoke you were bearish on your view of the global economy and the global markets. how does this factor in now?

>> i haven't changed my view. i think what we have in the u.s. is not fully priced, fully valued. and around the world we see a slowdown in economic activity. so overall i would be rather cautious about investments in equities. over the last 12 to 24 months many sectors have had huge declines. take gold mining shares since 2011 they dropped 80%, 90%. this year they have a strong rebound. many gold shares are up close to 100% and i think what will happen is that the market will

turn into more active management of equities, in other words away from index funds and that will favor managers that take advantage of sectors. we have malaysia, thailand, indonesia. these markets are up in dollar terms between 9% and 12%. so different sectors will move at different times. i see here and there some opportunities. >> what are the opportunities in your view right now, mark? >> well, i think in asia the sentiment turns very bearish at the end of last year. especially concerning china and the chinese economy and as a result of that mccoo gaming companies got slaughtered and

now they are in my view at the relatively attractive level. these equities are, in my opinion, has embarked on a new bull market. >> i just want to ask you a question. you've been so bearish and you're talking about constructive things you see in china and the market public is one of the biggest issues out there. where are you now versus where you were in '09 on china? >> we have just gone through a recession and actually i turned quite bullish about china in 2014 before the 100% rise in chinese equities.

given the size of the country and given the have a variety of different sectors, there are some opportunities for long er term perspective. i don't think it's a bargain by any means. but i believe china despite its problem could be very substantial will in the long run be a destination. >> you mentioned gold miners in your belief this is the start of a bull market for miners. does that mean you're bullish gold itself which has had a nice run year to date and is that inherently a call on the u.s. dollar as well? >> yes, i don't understand why the world is so enthusiastic about the u.s. dollar.

i think the u.s. dollar will be a weak currency. having said that i can be at 1.93% and in germany, france, europe, in many cases negative interest rates. so because of the yield difference -- the yield differential, i think the u.s. dollar provided the feds with interest rates again and provided negative interest rates, provided all these conditions. i think the u.s. dollar should be okay but not the desirable currency. and that's why i think the most desirable currency will be gold, silver, platinum. >> thanks for phoning in. marc faber, editor and publisher of the gloom, doom and boom

report. just to highlight them, gold miner stocks which he says are at the beginning of a bull market and gold metals, the whole metals complex will be used essentially as currency at this point. >> well, i think that's the point he's making and it goes to whether it's a long or shorter term or medium term view. what marc is saying is what a lot of people are saying. we may get this dollar strength and these currency moves last for six months or a year. they last for a long period of time. ultimately if we get a strong dollar, the fed is going to have to react because that will slow the economy again and the gold trade is the anti-fiat currency, paper currency trade. so that's his long term plight. i think you're fine with the u.s. dollar. >> it's interesting he thinks in the near term the dollar probably goes lower. when you think about his calls for calamity in the u.s., and i know they were a long time coming and in europe, it really had to do with the credit

events. now we've had this rise in the dollar that's hurt china. i don't understand how you get corrective on china. >> the operators were so beat ebb down in china. >> in the casino land in china, some was seen as a crackdown by big brother. neither i think were totally right. when you talk about the gold miners, what is interesting about gold here, let's talk about the micro move. gold over the last three weeks to a month has stalled between 1220 and 1250 after a major run and a lot of weakness in the dollar. that's very constructive for gold players. base metals themselves like mark are going higher and look at where the sectors are coming from. >> yeah, i mean, i look at him and say i have a renewed sort of respect for him and the way he articulated that call. he has a bearish fundamentally bearish stance on the market and he has some pockets of the economy or sectors that he's actually very bulled up on. he's figured that out and that's

what he's addressing how clients arpositioned and whether or not it's a really crowded long or short, if you will. >> still ahead, the pressure mounts for apple as terrorists strike brussels. will this change apple's battle with the government? we have the details right after the break. plus, nike's conference call under way. we'll get the latest headlines. know your financial plan won't keep you up at night. know you have insights from professional investment strategists to help set your mind at ease. know that planning for retirement can be the least of your worries. with the guidance of a pnc investments financial advisor, know you can get help staying on track for the future you've always wanted.

freshly made in the tokyo-japanese tradition, each batch is small. special. unique... every bowl blurring the line between food...and art. when you cook with incredible ingredients... you make incredible meals. fresh ingredients. step-by-step-recipes. delivered to your door. get your first two meals free blueapron.com/cook.

the attacks in brussels putting the government back in the spotlight. the fbi might have discovered a way to unlock the iphone of the terrorists in the san bernardino attacks anyway. josh? >> reporter: melissa, there is no reason to think apple will back down in its fight for the fbi. these are two different cases and, brussels, remember, we have in idea how these isis terrorists communicated or evidence that suggest they used apple devices. if past terrorist attacks are any indication they may have used disposable cell phones. that, after all, is what the isis terrorists who killed 130 people in paris used according to "the new york times." now in san bernardino one of the

terrorists used an iphone 5c for work and in a new twist as you mentioned the government now says that mysterious third party might have a method to unlock the phone, and that would mean the government doesn't need help from apple which has said, listen, it will not write new software weakening that phone's security for two reasons. one, there is the risk that code could be stolen by hackers or cyber criminals and, two, in apple's opinion it would set a dangerous precedent. tim cook talked about the case. >> we believe strong ly that we have a responsibility to help you protect your data and protect your privacy. we owe it to our customers and we owe it to our country. >> reporter: but does a terrorist attack like the one in brussels put more pressure on apple to cooperate with law enforcement? the technologist at the aclu

says apple already has cooperated in the san bernardino case and it's way too early to sound the alarm about encryption, he says, when we don't yet know how the terrorists in brussels messaged one another if at all. melissa, back to you. >> thank you very much, josh lipton. so let's take a look at this issue because if the fbi has found somebody, some third party who can actually hack the phone, does that mean the phone is more hackable than we thought? >> if they said it would take weeks and months, if somebody can hack the phone, to me it says the security isn't what apple claims it to be. there are bigger pictures in terms of the stock performance but i think it's bad news for apple. >> i think apple with what's gone on today and in light of the fact this isn't an opportunistic grab by the government, this is a very specific case, to me the

attitude is not only one that i think they're very self-serving but they're not showing any cooperation at a time the world needs to come together. i didn't like this from day one and that's it. >> i agree with tim cook 100% taking a stance here. think about at&t with the telecoms in 2015. what happened to the reputation when you think about at&t. tim cook has a responsibility to the shareholders, period, end of story. i'm not making light of the event. why is it apple's responsibility? it should be the government's responsibility. it is not apple's responsibility. even going through a search warrant in a house, right? there's a process and legal ramifications.

it has to go through the courts. i don't think apple budges until a decision is made. >> what does that have to do with apple stock? it's going to hang over apple. >> encryption is a problem. >> if i look at at&t and verizon all the investors care about is the dividend yield. >> let's say they budge on this without a court rule, we're going to figure a way to break this, that stomach gets hit and hit really hard. >> they come out with a new pro detective and the stock rallies again. >> it takes away the foundation of everything they've been built on, security, privacy. >> if you're telling me that technically the minute they do this it's going to leak is absu absurd. >> no, tim. >> that makes no sense to me. >> trust in management is important. they're going to back down on their original thesis of what they stand for, i don't know. it's not a company i want to

invest in. >> you wouldn't invest in apple because of this? >> absolutely wouldn't. >> unbelievable television, whatever the next new product is. >> i'm not saying the stock is going to get clobbered but it's a complete change in what the original sort of dictation was about, the backdrop of the foundation of the company. privacy, security. >> if they back down then you wouldn't invest in the company? >> correct. >> if they're forced to it's a totally different scenario. if tim cook got on tv and said we're going to cooperate. i look at that and say i don't know. from my perspective he's letting down the shareholders. >> they've pretty much dug in their heels at this point. >> too much emphasis on the foundation of the company. they haven't had any hits. they really haven't. i know that the phone had gotten incrementally bigger and better and therefore had some years of great expansion but they have not been prior so as far as the encryption, you guys, you have an interesting debate and i think this is something

americans are thinking about. i kind of am in tim's camp here. they've create add certain device. they've created a certain device and protect their customers under certain circumstances. >> still ahead, check out shares of nike here now with the lows of the session and the after hours now down a whopping 6.6%. it's lost about two full percentage points in just the past seven minutes or so. we'll hear the latest from the call right after the break. you're watching "fast money" first in business worldwide. we needed 30 new hires for our call center.

i'm spending too much time hiring and not enough time in my kitchen. (announcer) need to hire fast? go to ziprecruiter.com and post your job to over 100 of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. (announcer) over 400,000 businesses have already used ziprecruiter. and now you can use ziprecruiter for free. go to ziprecruiter.com/offer2 in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades,

and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov let's get to sarah for the details. >> a steep sell-off in the after hours after nike beat on the bottom line, missed on the top line. a higher inventory number up 8%. something nike was warning about but you never like to see this for a retailer, something that the executives are addressing on the call, the cfo just blaming it back to the west coast sh shutdown and the pileup of inventory interest and another specific incident in memphis. the nike brand president saying

that inventories are, quote, normalizing. that doesn't seem to be doing much to encourage. as far as the other disappointment, the revenue miss, bigger than expected hit from the stronger u.s. dollar. sales were up 8% from last year. they would have been up 14% without the impact of the stronger u.s. dollar and what else i'm hearing is that futures orders globally which is the outlook for business over the next few months, some were look ing for a higher number but there are many bright spots in this report and one of them that executives were talking about is china. here is trevor edwards, nike brand president, on what they are seeing in that region. >> china grew an incredible amount this quarter based on the continued strength of the nike brand. the success we're seeing in china today stems from decisions we made to align our teams against the biggest opportunities driving growth in key categories of sportswear,

running, jordan and nike basketball. >> executives were talking about the innovation pipeline ahead of the summer olympics in rio which they say is strong especially with the self-tying shoes that we showed you last week set to lawn this much holiday quarter. the stock reaction down almost 6% is that had is a stock that's up almost 30% in the last 12 months outperforming the broader market. last quarter we saw similar reaction, pretty strong fundamental strength but investors took it as a chance to lock in profits and it's since climbed. >> all right, sarah, thanks so much. on nike earnings. for more on the story let's bring in bb&t analyst on the conference call. she has a buy rating, $74 price target. great to have you with us. what's your interpretation,

overdone? >> we believe this is an overreaction. they're maintaining full-year guidance we think has conservatism in it. inventory is high but were in line with consensus, better than consensus at 8%. nike inventory only up 4% so we think there's a little bit of conservatism. guidance so we think that's a positive. >> flat in most countries around the world, i'm curious how they're getting that. a currency headwind, right, but the dollar has been flat for the last year. >> i don't have a great

explanation for that but they are well diversified. that's why it will continue and top line of mid single digits excluding fx. >> give us an investor's guide. you know the company inside and out. there's nothing broken here. this is a long-term story that's in the sweet spot of a sector with the whole health lifestyle thing going in their favor. how do you handle this, these numbers? >> we think the pipeline of innovation is going to support strong top line. asps were up 7%. we think there's room for pricing to continue to increase globally. they also launched a bunch of innovation last week which we're optimistic about. we do believe the trend for

athletic footwear is longer than the trend for athletic apparel. most of the inventory concern are the licensed apparel, some of the active apparel which is a commoditized market at this point. we do see the trend for athletic footwear is going to continue. >> okay. we're going to leave it there. you can jump back on the call. how do we trade? is this an example of a stock priced, going into these numbers and these numbers just didn't hit on all cylinders which is what investors want. >> price intervention extremely consensus long. people taking some off here. i agree, down 6% probably overdone. this is a stock that will continue to work out. >> up next we have the final trade. stay tuned. the pursuit of healthier.

it begins from the second we're born.

because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen. time for final trade. tim? >> i'm going to do whatever you say, i'm going to buy big tech microsoft. >> they gave guidance of 370 suggesting a back end loaded year for them. >> looks like the u.s. housing market may be softening. we saw that in some of the numbers today. i would sell the construction sector, itb is your etf. >> dan?

>> i'm going to go with the small caps, i think you sell the small caps. >> thank you for the final trades. i'm messa lee. thanks for watching. see you back tomorrow at 5:00 for more "fast." "mad money" starts right now. i'm sue herera with the latest on the terrorist bombing attacks in brussels. three bombs exploded in the belgian capital killing 30 people injuring 230 more. two suitcase bombs exploded in the airport while one detonated near the european union. there were three suspects. two of them are believed to have blown themselves up while the other is on the loose. the belgian police are looking for that third person. islamic state claiming responsibility saying there will be black days ahead in return for aggression against it. president