february. the market is okay with it as long as the mac kroe data optimistic. >> you think it's basically priced in. the way the yields have risen, if -- >> it's very rare to be well above 15% odds and not have them go. something strange would have to happen to get in the way. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq markets overlooking new york city's times square. tonight on "fast," kevin o'leary, aka mr. wonderful. he's buying stocks at near record highs. plus president trump vowing to amp up military spending today. and later energy lagging the market today as oil fell to its lower level in nearly a month but the commodities came. first, we start off with the big story of the day and that's snap's triumphant debut on wall

street. bob pisani. >> a lot of fun today the company priced at $17 per share, it closed at 24.48. i call that a successful opening. now snap has a market cap, $34 billion. this is the same neighborhood as travellers, deere, general mills and marriott. why the healthy pop? the markets are trading near historic highs. second investors have been starved for a high demand ipo for a long time. third ipo returns have been strong. the average ipo is up 26% in the last year. and finally, the number of shares the company floated pretty small, just about 14% of the total shares outstanding. this was a great first day pop but a lot of tech companies have had great first days then they run into trouble within six months or so. item number one. facebook priced at 28.12 but had

a terrible time after that. then we had twitter. they priced at 26 in 2013. huge first day. they closed almost $45 but it too was plunging six months later. and we have alibaba. they priced at $6 in 2014. their first day they closed at $93 but it too was dropping six months later and eventually went below it's ipo price before recovering. we got that six month cliff. melissa i said this before, the ipo market is going to open. i'm looking for easter, the calendar starting to look a bit crowded. bankers are getting called. i know i did this with you back in december and we had a terrible february, but i think this is finally going to do it. >> all right. we'll hold you to it. thank you. let's trade snapchat. as soon as snapchat opened, one had a $10 price target the other had a $16 price target.

dan, where do you stand here? >> i think it's fantastic they had a successful deal. congratulations. they pulled it off. here's the other thing i want to make. it really is about scarcity not only ipos but also the fact that this is a very unique social property and when you get asked this question all the time. we have lots of guests on who ask about how do you play a pure play br or ar. there's nothing out there in the public realm. this is it. of course it's an ar play. when you think about how the people use these filters and what they're going to do with it and you talk about the wearables, i'm not telling you at $34 billion it's a slam dunk. it's one of the only pure plays in the public market in which to do it. lastly, last summer you remember that pokémon go phenomenon.

it got downloaded 500 million times. you look at pokémon go and there is room to grow this thing pretty substantially. before you start discounting the potential growth there's other things to look at. >> facebook's instagram already has more users -- >> you know what? as far as facebook's concerninged the kids are not using facebook proper, they're using instagram and i think that snapchat has a beach head here. >> it very well may have room to grow. it better grow. it already was a little bit scary. some of the metrics, the rate of growth slowing, some plateauing. i thought at $24 billion, that was already discounting a tremendous amount of growth. at this level, the scarcity value i get that, not that many shares that are publicly traded. however, i can't get anywhere close to valuation. you got to think that growth is

so spectacular for a while to come. >> for me, it's not the that i disagree that it's an augmented reality, i guess it is but that to me is not something that is really compelling but it's just something that's relatively new. you're going to want to get into that when you're a venture capitalist. so on a venture capitalist is essentially basically selling me the shares in augmented reality. that's not the time i want to buy it. >> facebook is up 700% from its post ipo lows. there's very few venture capitals that have this sort of return in snapchat. so what i'm saying is before we want to get all negative on the story because it has an eye popping valuation i think you have to think about the fact there's a lot of things we're not even considering where this company's going to be going. >> i totally agree. facebook went down after its ipo. i'm talking purely from a public

markets trading i'm not sure you buy it at these prices. >> i'm not saying that. keep an open mind. guy, welcome to the show. >> i do have an open mind. >> i posted a snapchat picture -- >> you can't post it. >> i don't know how to use it. >> how do you trade the stock? 24 and a half dollars? at some point over the next couple weeks it retests the price -- the ipo price at $17. do you want to play greater fools theory? maybe it's the right thing to do. could it have a 30 print? i guess it could. i'm inclined to believe that by easter, to your point, or sooner than that -- bob pisani did. that's what happens. that's why i shouldn't be talking about snapchat. i can't tell dan and bob pisani apart. >> i don't think you're going to see 17 that quickly.

200 million shares. you think about the buyers. when you look at these large mutual fund complexers. they're not buying it from ten years. >> is this basically an advertising company? it makes it's money by selling ads? >> we don't know yet. >> then why are we buying it. >> you're buying it that because you believe that spiegel is the next zuckerberg. they're $400 million in revenue -- >> does it have to compete with facebook, and twitter and google? my point is that -- >> you're just trying to be difficult. >> for you, dan. the point is that when facebook went public it didn't have the competitor that this has right now. >> here's the thing. you could've said the same thing when twitter went public. it had that competitor in facebook. they went from $500 million in sales to $2 billion last year.

there's no doubt in my mind that senate chat will do the same thing. >> twitter has not changed their product one eye oata and it's become a cesspool of just everything that we hate about social media and this is not -- >> that's what you're making the bet on that. >> they see it as a form of communication amongst people. >> so did twitter. they saw it as a form of communication. if snap doesn't change their plan, doesn't change their business plan then they go the way of twitter. >> let me just ask you this, this valuation, what do investors need to see in the first quarter. >> you mean 35 times sales. they need to see a lot. facebook again is going to do $40 billion in sales this year. that is still absurd. there's no doubt about it. but it's the only way to play that advertising play. that's it. >> what does it mean for facebook valuation? were you surprised that facebook

didn't do much? >> it was a great day today. unchanged. i do think it facebook was not the atm for snap. i think -- i think facebook should trade up and maybe it has been. i don't know. i think it's good for facebook. but i'm skeptical of this valuation for snap. >> right. if you're looking to invest in snap, you may want to grab the drama meter. the next guest says the stock will be a roller coaster. gene, always good to see you. >> hello. >> the vast investors out there did not get a chance to buy at the open and they might be sitting on the sidelines wondering what do they do. what do they do? >> they hold off. you let this settle down. you've already just talked about the valuation piece to it. you talked about other tech companies that had similar ipos. if you have a perspective of a year just don't even mess around with this. if you do have a perspective of more than a year, i completely

agree with where dan comes from. this is an augmented reality company. it is a real $400 million in augmented reality revenue and i think that they are going to be on a collision course for this paradigm shift. it sounds too futuristic to impact it but that's where it's going. >> some might think it sounds rosy too. what is the augmented reality aspect they have? they have a lot of -- granted, i'm not in the demographic. i'm far from it, they got a lot of fun filters and i get that that is an aspect of ar. how do you use that technology in the future for other things to make more money and sell ads? >> so initially as you said it's an advertised based model but augmented based reality will be a new way we'll interact with computers and machines. we'll go to more natural ways. that's what specticals from snapchat is. it's a starter.

they've got a ton of hardware people working on solutions to really flush that out and that's where the story gets exciting longer term is to see what snap is going to do around hardware and play out that vision of being a camera company. >> so we just had a discussion whether or not evan spiegel is the next mark zuckerberg. turns out he's probably pretty darn close to it so is he the next mark zuckerberg. >> i think so. i think he is. i think they both share both zuckerberg and he havens share this concept about virtual reality. it's shocking how much mark zuckerberg wants to be associated with -- i think they're both like minded about this paradigm shift. >> do you know how the shares will start to be fed into the public? is there a six month lockup or how will we start to see more of these shares traded publicly? >> it's my understanding of call

the five or so billion dollars float right now, the majority of that is with shareholders who are going to hold it more than six months. i don't know what percentage that is but i think that this will have some volatility to it. the volatility really hits six months from now. >> so long-term buy, short-term wait, right? >> yes. >> all right. great to see you. thank you. has gene muenster changed your mind? >> augmented reality for me is making me look like carry grant. not making me look like one of the characters from alice in wonderland. i get this could be -- i understand this is the first iteration of many iterations. you got to hope in the meantime -- the only reason to buy here today is to hope somebody a little more ambitious is going to buy it at 26 bucks. >> let me answer that question about the advertising model and

what does it do. it makes the product sticky. so my 13-year-old daughter, my 11-year-old daughter are now obsessed with these filters and communicating with their friends this way but they're also getting their news through the new discover platform now. to me when you think about it, they're going to continue to add products on to what they think is a camera. it's going to go in a lot of different directions. when you have an ipo that was priced maybe at the high end of the range and up 40 or 50% -- oh, my goodness. i don't think retail should go in and get it. if you're fidelity or wellington, they're going to continue to buy this thing and the other point about being with the stock market at all time highs you may get an amazing shot to buy this back at 17. if the market gets hit hard in the next couple months, the weak hands are going to come out of this thing very quickly and that could be your opportunity. president trump doubling down on his plans to rebuild the

u.s. military today. so should investors pile into defense stock? we'll weigh in. so how worried should shareholders be with caterpillar? and looking for something to buy. kevin o'leary is here. he'll give us the names when "fast money" returns. about your brokerage fees.carl,n fees? what did you have in mind? i don't know. $6.95 per trade? uhhh. and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $6.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab.

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money." caterpillar shares tanking today as the company's facilities were raided by law enforcement. >> reporter: it is developing so federal agents searched three of caterpillar's illinois facilities today including its headquarters. the u.s. attorney's office telling us that agents from the fdic office of inspector general, irs criminal investigation, the commerce department's office were on the scene today. the heavy machinery manufacturer saying it is cooperating and believes the execution of this warrant while broadly drafted is regarding among other things, expert filings related to its swiss subsidiary which has been

the subject of investigation for several years now. at issue whether the industrial giant tried to evade paying more than $2 billion in taxes by using that swiss business to sell replacement parts that came from u.s. operations. the senate released report back in 2014 and the scc which had opened its own investigation in 2015 has since closed that without recommending a penalty, but other agencies have continued to look into this. so despite little impact to that stock when the filing came out in mid-february, shares did tank today. they closed down 4%. that's because no one wants to see feds swarming at dow components head quarts. you can read this that this situation could potentially be escalating. >> feds and raid never two words you want to hear as a shareholder. thank you. we should note -- this is one of the best performing dow

components. >> look how its traded over the last couple weeks. absent any news, there are sellers at $99. news comes out and you get a day like today in the markets where it's a first down day in 45 days or so or 30 days and you get something like this. i would not touch it here. 92 is supporting so it's been trading. it wouldn't surprise me to see it break 92. >> i don't know. it's very good for them it happened now and not a year ago or year and a half ago when things were really very uncertain at the company. debt was trading poorly. it's now trading very tight. so it would be a much bigger threat then than it is now. there's more to come but i don't think this will be a complete disaster for them. i think maybe. i would want to own some put and

would do it through calls. i don't think it's going to be the end. >> i think you want to think about why the stock is where it is. it gapped up 9%. so to me the stock has gone sideways. it couldn't get through that magic number of 100. it found resistance at 99. that gap from november 9th that's what you want to keep an eye on. 2012 they had $8.64 in earnings. they had $65 billion in sales, expected to have $37 billion this year. as far as the global infrastructure played here, i don't know. analysts don't seem too particularly excited about it and it still trades -- >> plus you've got feds raiding their facilities. >> that's not good. >> sounds like no touch to you. credit card wars heating up.

the company announcing it would increase the benefits for its platinum card for the second time in four months. the new perks include $200 a year in uber rides. the move comes at visa and master card -- from 26% in 2014. costco is what it sounds like for that. >> looking at american express over the last couple months it had the best run it's had over the last couple years. i still would favor master card and visa over american express here. it feels as though american express is finally gotting itself out the doll drums it experienced right after the costco announcement. i'm still inclined to only am and visa i do think amex has figured out its whoas. >> all it is is a brand. the payment space is changing

rapidly. pay pal, they're changing the payment space all over the place. all you have now with most of these credit card companies and american express in particular is the brand, which is valuable but it's still a melting ice cube unless they change the infrastructure inside. i would rather buy paypal than american express. >> you don't need the card. it's not like those commercials back in the day when you got your diners club back in the '50s. we talked about $200 worth of uber rides. $200 worth of airline credits. those are sticky sort of products. if you identify with the brand and they're giving you that and it's covering the cost and then you know it's loaded into your iphone with your apple pay, then to me it is much easier than paypal, so the brand is important. >> i'm not saying the brand isn't valuable but if i'm going to buy something, where's the growth to me?

the growth is in paypal. >> what you're talking about, though, master card and visa i would think would also be under the same threats, so i'm long master card. i missed the axp turn around. i think there's still room in master card for a while. down the road it is a little scary. >> you're a value gal. when you look at axex trading below, to me it's a no-brainer. the banks have to market those cards. they have to market those services. american express say pure play on that. >> the credit risk to me -- but it's the credit risk that puts it at a discount. and i do think it's cheap. i think they're going to have the eps growth to back up that pe so i would say with axp. >> stocks may be in regard territory but kevin o'leary there are still names you can buy at the highs.

he'll be here to tell us what he's watching. here's what else is coming up on "fast." >> i am calling for one of the largest defense spending increases in history. >> president trump is beefing up our military and we've got the five stocks that could surge off his defense plans. we'll give you the names. >> plus. >> turn out the lights ♪ >> about a hot group of stocks and it could mean big trouble for the markets. we'll explain when "fast money" returns. bp engineers use underwater robots,

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call for a free quote today. liberty stands with you™. liberty mutual insurance. >> we are live at the nasdaq markets in new york's times square. the trump rally taking a breather today. financials were the biggest lag gurds. energy, the worst performing

sector this year. he'll tell us what they are and what has him so bullish. is one of the hottest -- karen will tell us the surging stock that she just doubled down on shorting. when we start off with the markets. stocks may have taken a breather today. but there are still a number of names in record territory. dom chu with more. >> reporter: it still doesn't diminish ut fact that we're still in very extended price ranges to the upside. within the s&p 500 there are currently over 60 stocks that are at least 20% above their 200 day average trading price and among some of the names the well-known ones trading you got bank stocks like bank of america, technology stocks like mike ron and industrial stocks like united rentals and where half of the index is within

striking distance of their 52 week and in some cases multi-year and even record highs. so the participation in the rally has been pretty broad on a relative basis. one thing is for sure, eventually there will be a pullback but to what extent becomes a bigger part of the market story. the last couple of times we saw 5% pullbacks were in mid-august last year. the s&p has rallied by nearly 15% and adding $2.7 trillion in market value. the other 5% pullback right before that the weeks before brexit in june last year. but between june 27th and mid-august the s&p gained around 9% and added $1.6 trillion in market value. of course what's more concerning to some investors and traders is the chance of a bigger pullback, like what we saw in the wake of the fed interest hike in december of 2015 through that famous diamond bottom in february of last year.

so money has been pouring into the market and has been since the election but you wonder, how many out there are waiting for some kind of a pullback to pour money to work in the marketplace. that's going to be a big part of the story. >> thanks so much. if you're looking to put money to work right now, what can you still buy. kevin o'leary and a very special "fast money" friend. very good to see you. >> great to be here. >> you're pounding the table on smalls and mids. >> i'm pounding the table for this reason. you just heard that many stocks are in historic highs and the stretch there 200 days and they're significantly higher on average and but think about this and i want to just go back to the speech the president gave, his most presidential since he started office in my view, he said something that made me a little concerned. if you looked at just the third of what has powered the dow there's only three names, apple is one of them, boeing's one and

goldman sachs. together they're accounting for about 33% of the move. just those three names. let's look at each of those propensities to continue to rise or at least derisk them. of those three, i would say the riskiest name and, by the way, i think it's the best brand is goldman sachs but all of the optimistic there is based on the fact that we thought as investors was going to get relief from dodd-frank and get accelerated reduction in corporate tax rate. what i heard in the president's speech was that those will not be parallel with health care. they will be after health care, not giving me relief or any other investor in 2017 a real guidance there. i'm not saying it's horrible. financial services are very risky now because they have to wait and see on policy. >> you rotated out of financials after that speech or before. >> i did. i reduced my financials down to about 6%. i've taken a whole lot off the

table and all of it from regional banks. i don't know own any regional banks any more. that speech did not give me -- it was an atm to buy into other areas. what i like now is less risk is $4 billion mid cap companies that have all of their sales domestic. i'm going to maybe get a bae tax so any revenue that's coming in either direction to the domestic markets makes me not really nervous but more nervous. i've never owned the russell 2,000 before. i've never owned small cap stocks because i can't rate 2,000 income statements every quarter. now, they licensed to index a lot of people but in our case it's ousm. i bought it for the first time. i now own 339 domestic, mid-cap. that's where i took my finance

money and stuck it into that. >> mr. wonderful, it's karen. for the bank rally one of the biggest, the most bullish aspects of the bank rally was the fed raising rates, net interest margins being able to expand as well as all the other dodd-frank stuff that i think the net interest margin is bigger a more important driver and i think that part of the story is still intact. sounds like you disagree. >> as long as you get those rate hikes -- yes, if that's true you would also want to be reducing your holdings in tellco. in utilities which i've also done. i don't know how these fast hikes are coming. you're going to see underperformance in those sectors which also participated in the rally. so my thing is, if you're putting new dollars into the market now and you didn't get what you wanted on financials, i'm a little disappointed. i would like the president to

say we're going to go parallel track here. didn't get that. i'm just saying the markets a little riskier now in financial services o. i'm not saying i'm dumping it all, if that's all you're going on rate hikes, chop chop, we better get some real fast here. notice today in this first of many days corrections who got hit the hardest, financials. i'm saying that elastic band is really stretched right now. >> thanks for joining us. good to see you. >> you know what, guy? >> what, mel? >> you just pitched goldman sachs last night. >> i'm not going back away from it. i hear everything kevin is saying. all the points he made you could've made over the last six to nine weeks respectfully. i'll say this. goldman sachs i still think it's about price to tangible book. we went through the math last night. about $173. i don't suggest it should go

north of two and a half. in the environment we find ourselves in with the potential for dodd-frank to go away, all those things to go away, i don't think 1.8 to tangible book is unreasonable which gets you $310 stock. the price action today didn't make me all that happy but i'm not walking away from it. kevin likes small caps and mid caps what can you still buy? >> if you want to go small caps i would go with that because you have this potential collar effect, potential border effect. i'm not really buying a lot of stuff. it's just not my nature to buy. >> are you selling a lot of stuff? >> yes, i have taken profits in financials. i'm completely out of those. i would look overseas. you can look to japan. the one thing i would say about the financials, though, which was different than the last couple weeks. we had rising interest rate today and a fourth governor say, march is on the table and financials went down. that concerns me. >> still ahead.

president trump pushing for a big increase in defense spending today. we'll tell you who the big winners and losers could be. plus more on the trump trade. it's the one stock surging 70% since the president was elected but our very own chairwoman just doubled down on her short position. we'll find out why when "fast money" returns. ♪

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>> welcome back to "fast money." president trump traveling to newport news virginia rally his support for plan to increase defense spending. more on that story. >> reporter: the president got a tour of the new gerald ford, it's the brand new aircraft carrier expected to enter navy service in 2017. the president got a look around, a new bomber jacket and new hat from the united states navy. he also got an opportunity to tout $54 billion in new defense spending that he says he wants in this year's budget. here's what the president had to say on the aircraft carrier. >> america is always been the country that boldly leads the world into the future and my budget will ensure we do so and continue to do exactly that, american ships will sail the

satisfies. american planes will soar the skies. american workers will build our fleets. >> so that's the message that the white house wanted to put out here today but, of course it got stepped on in the news cycle with this news from attorney general sessions who came out he's going to recuse himself from any investigations into russian influence in the u.s. election last year. that news not welcomed here at the white house. they don't believe that he should recuse himself necessarily. jeff sessions taken himself out of that case and particular investigation. the white house here very much focused on a massive defense buildup. it's absolutely key to the president's agenda. >> thank you very much. we want to talk about defense stocks. first i want to deal quickly on the jeff sessions news in the news conference there. is this going to be some sort of distraction that could detract from the efficacy of the white

house getting their agenda done? >> yes, yes. >> should we be concerned about this market rally in light of what's going on? >> 24 hours does not a day make. i know that sounds ridiculous. >> because it actually does. >> the price action given what happened yesterday is sort of interesting. a lot of technicians will talk about tomorrow if we gap open lower again. with that said, yes the sessions thing could potentially be the event that derails us for a week or so. without question. it isn't to me a pretty big deal. in terms of defense spending, it's interesting he talks about u.s. ships patrolling the satisfies. i didn't go the naval academy or west point. what i will say 2017 world is much different than the 1950s when we needed the fleet that we needed. technology is much different without getting into too much detail. lockheed martin awarded another billion dollars navy contract today or yesterday.

valuations appear to be stretched. i think the space still works. >> lockheed martin you got to buy that above 270. it's another defense area we talked about it which is cyber defenses. look at palo alto had a horrible day. it got crushed. around 110 i don't mind it. >> would you be interested? >> so, wait. patience. >> listen, we've had a breech every day for the last few years and that's been the stories of these companies. they're a high company company. they're probably overshot in 2015 but down here it probably makes a lot of sense. that's the one you go to. i know there's chatter about fire eye getting bought but stick to the high quality that might have an execution mishap. >> trump trade, united rentals. the stock while down today has been on a tear in 2017 getting a

boost from president trump's infrastructure plan. you did something different here. >> the trade update is shorted some and yesterday at the bell which was not the high but at the very close, i doubled my short position. this is a great company. this is not at all indictment of you or i. it's a proxy for infrastructure. despite the well delivered speech, which i thought he did nicely on, nothing new was said in infrastructure. we've heard that plan before and the reality of getting an infrastructure, a $1 trillion infrastructure plan done is so much easier to say it than it is to do it particularly after what's going to be a very bruising health care battle where you have very conservative republicans that you've got to appease somehow and to come at them with a $1 trillion infrastructure plan seems like the stock has a little bit too much priced in. >> what do you think, today blumberg had reported at least

15 federal agencies were meeting with gary cohen to come up with infrastructure policy. the president announced special assistant for infrastructure policy. it seems like enough is get will go -- it's almost like the tax reform. you trickle out enough stuff to make people believe it, it still sustains that rally. >> if gary cohen is involved in something and it will get done effectively. people have discounted him since his college days and they've been wrong to do so. don't discount him now. you're not looking for three or four dollars. you're probably looking for my sense would be 10 to 15%. the pushback would be when you buy the double if you got that 15% to the downside -- >> probably not. >> would you buy it again? >> no. great company but unless i really believe that infrastructure --

>> dekos tow had a really interesting piece today about this $1 trillion spend over ten years and he was talking about the fact that investors may not be thinking about that a lot of this may come in the form of subsidies to private companies which is really actually punitive to consumers. it may not be -- i'm in your camp. it may not be what you think by tractors and cybersecurity, it may be more crony capital. >> quick programming note, tomorrow on "squawk box." an exclusive interview with wilbur ross on 7:00 a.m. still ahead, crude falling 2% to three week lows today as energy stocks continue to underperform. two names you should buy. he'll be here to explain when "fast money" returns. whether it's bringing cutting-edge wifi to 35,000 fans...

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>> our view on the oil prices there's still uncertainty in the marketplaces. we're not building our investment campaign based on the assumption that those prices are going to be there forever. >> that was exon ceo on "squawk box" earlier today. the comments come as crude has been in a tight range. what are some of the energy names you should own right now.

denis garment, good to see you. >> good to be seen. >> loved hearing that. you like two names and they're both integrated names. why that route and what are the names? >> first of all, i think at this point i've talked about the fact that crude oil has been stuck for two months now. i think an -- when we get down to $52 that's cheap. i think the odds are crude oil will probably trade higher from here than shall trade lower. given what has happened in the market in the past several weeks, some of the integrated especially the multi-nationals, exxonmobil, and conoco phillips have come down rather dramatically from their highs and wonderful yield stocks. if you're in the market, if you feel like you've missed something and you want to buy a stock that has some time and history and pea nash to it. take a look at exon which is

yielding 3.8%. yielding well over three and a half%. i think those make sense. and i think that it shall. >> so that leads me to my question, do these work if we get just a narrow range in oil for the next couple months which we could get, do they still work? >> first of all, i think this long-term trend, this sideways trend can continue for a long period of time, so even if crude oil stays within the 52 to $56 range i think given the fact that exxonmobil has fallen 10% from its highs, i think it's a great long-term investment. it ain't a trade. it's an investment. i think it makes sense for a

longer term perspective. >> do you have any -- people said maybe rex tillerson leaving, do you think why exxonmobil went from 96 down to 81 in about a month and a half with oil trading sideways? >> i think it has to do with the fears over a tax on imports coming in to the united states. there's confusion as to how that will effect almost any kind of oil company. take mr. tillerson out, add the confusion of the potential to some sort of tax being in for crude oil that could be imported and i think that accounts for the fact that exxon has fallen. >> great to see you. thanks for your time. >> thanks for having me on. would you rather? >> i love this game. >> karen's going to play. an integrated name or enp name. >> e&p name. >> do you concur. if oil stays where it is right

now i'd go integrated. because i want to get the dividend. >> what's your reasoning? >> i think we could see revenue growth higher than with oil staying the same for an integrated name. >> you play the game now. same thing. >> same choices. >> i'm breaking the tie. >> i'm with fitterman. there's something wrong with the way the big cap well has been trading so i'd rather be e&p right now. something has not been right now on what's been a very good take with oil going sideways. where there's smoke there's fire. >> energy has been lagging utilities, as the best performing sector today. dan, what did you see? >> and just like denis was talking about as far as

yielders, the xlu is up and kept pace. s&p is up more than 6% which is really curious. there was one trade that caught my eye when the etf was trading 51.65. there was a buyer 40,000 of the april. those things break even about 6% lower. look at this chart. look at this move right here. this is actually happened about 5% or so in the last couple weeks as expectations for a rate hike have gone up fairly dramatically at the march meeting which you would not expect from a sector like this. and look at this move in the last five years, the xlu has held this uptrend. up 2.5%. when it comes to just buying premium out of the money in a low like the xlu, option prices are relatively low. they picked up a little bit. that's just telling me that

people are looking for some protection in the space. it is pretty expensive. there's a lot of calls about valuation. if you thought rates were going to be higher or a shift more you'd want to be out of this. option prices are ticking up as people are making it the other way xlu. up next, b.k. is betting on one country's stock market for a big breakout. he'll tell us what it is when we come right back. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary.

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because no one knows & like at&t. final trade. >> so costco tonight after the close we didn't get to talk about it. target the other day disaster. walmart last week wasn't completely great. sell walmart. >> wetd a pretty strong dollar today. you might want to look overseas and protect yourself so you buy xd and that's japan. >> the mlp hasn't traded great recently but i think it's still good. i like it right here. >> going to tomorrow's show. big oa.

"fast money" tomorrow. can't wait to see you there. >> jerk. >> i'm a jerk. >> not till tuesday. >> thank you. mckesson. >> i'm "fast money." meantime, "mad money" with jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some 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. sometimes when nothing happens, it can still count as good news. today the new york stock exchange launched its largest initial publicff