world. >> the big question is mr. baseball going to sign up? >> well, i downloaded it for research purposes. it's very bad bones right now. i think my concern, look the 16-year-old, me knew smartphones existed back then, i probably would have done. so i think the big question, will it be a hyper sanitized session at the game? >> for research purposes. >> i'll come back. >> that does it for requests closing bell." fast money begins right now. >> "fast money" starts right now, overlooking new york city's time requests square. our panel, tonight on "fast," check our shares of ibm sink after its earnings report. >> that call is under way. we will hear about the quarter in just a few moments. plus, president trump wishing his "america first" agenda with the new buy american, hire executive order, jim vandehei

says it's another liberal takeover at the white house. later, mark zuckerberg taking the stage at the tech giant's development conference, he addressed the tech killer for the first time. first we start off with a sell-off on wall street. check out the dow falling as much as 1 forepoints at the lows before recovering those losses ending the day down 113 points. in the sea of red, thanks to goldman sachs down 5%, continuing the pressure we have seen on the entire financial sector in the last month. so the decline in goldman today, it has given up nearly half of its gains from highs made just last month. the ten year getting its low since november. slightly above that 2% level. guy. >> i got to be consistent. goldman sachs, karen as well, correctly so. i sort of got on board right after the election, goldman was mid-1 '80s and my argument was, you know, with all the trump agenda, all the rhetoric going

on, people are waiting to see if it happens, they will get ahead of the stock. it traded well, it traded north of 250. i thought once it went through the october 31st, 2007 high of 250 and change, this thing was headed to 300, 1.8 times a tangible buck. guess what, it has not traded well since that last quarter. today's quarter was miserable. there is nothing good to take out of this quarter. i thought when j.p. morgan reported the numbers they did. historic has been the case. it couldn't have been the part from the truth. so i think now goldman sets up probably print 200. i have to be consistent. 2, 220 it will get ugly. >> the thing about the earning, you mentioned j.p. morgan in a positive way. stearns and citigroup. it almost didn't matter. what happened to trading on fundamental also if the stock price is still not going to react to positive earnings. >> i'm sort of surprised. i bought some goldman calls today.

i normally don't like to buy something down a lot. i thought i'd give it a couple days. there is a lumpy part of the business. trading revenues could change a lot. for them to get a big penalty for missing a lumpy part of the business, so meaning it had a big multiple on the miss, i didn't get that. it seemed overdone to me. the other side of that argument is, it was too high going into the -- >> the price was too high? >> yeah. maybe not. i thought it was overdone. i bought some short-term calls, just for a bounce. do i have a big bank exposure, a banc of america exposure, it traded today. >> it started out trading fine. it just got pulled down. >> yes. >> but it was definitely disturbing. you hope that bank of america could have held up the financials. they couldn't. we we heard trump now say that j.p. morgan, bank of america. we're getting all these great numbers. the trading has been fantastic. all of those. >> right. >> suddenly goldman misses on the top line t. bottom line.

then you look at the trading and the trading volume. the combination of both those two. that was the disappointing part for me. you wonder, was it something within the quarter, this is one quarter. they've had this happen before. if this becomes a trend of some sort, then i think we have trouble. >> they specifically highlighted that in the euro u.s. dollar and volatility was low. the thick part of the business, they're more exposed to. they still saw flat year on year. j.p. morgan was up 17%. banc of america was up 29%. >> they traded down 6%. outside of some of the rest of this, i mean, it's very concerning to me that aspect of that earnings call. >> here's the question, is this a goldman problem where everybody got thrown out with the bath water or are banks telling us that maybe they are not trading on fundamental also? because the fundamental also they put up, for the most part, during this earnings season has been pretty decent. the price action, there is no

follow-through. >> i think it's a goldman issue. >> they're getting a wash sector. >> the if you would also, j.p. morgan, i love j.p. morgan. i think it's an amazing stock t. reason j.p. morgan, banc of america hasn't rallied. it's the yield t. ten-year yield needs to move higher. until that happens, can the banks ramally? that's the question. no, they can't. until the ten-year moves higher, the yield starts to move highary little bit. these banks are in a little no man's land. what would i be doing? i think there is a down side risk. however, j.p. morgan, 80 bucks. guy would say, boo i the stock aggressively. it traded i think at $200. you boo i that stock aggressively. banc of america is -- >> so they're sort of an air pocket in your view, if that is the case, guy, what does that mean for the broader market if there is that downside rick to the financials. >> if the s&p had an opportunity to sell off everything we made yesterday, it should have given back today, theoretically. and it didn't t. s&p was down 7,

8 or 9 handles. it wasn't down that much. so it could have been disastrous on the heels of a good day yesterday. and it's not. the rough patch actually closed higher on the day, slightly higher on the day, all those are good sign, earn courageing science. i'll say it again, ibm 130 t. transport's now right there. i.t. at 160. the s&p for whatever reason find late buying every single day. >> i go back to you. you see the yield curve, we're down to 2.18% or so. they heed the lack of the earnings, at what point is your line in the sand in terms of, they're not acting well, i've had a nice gain on them and you know what, maybe i take them all. >> i think there is more of a consolidation phase. when i get these concrete numbers. one of the things that stood out to me as well. we know j.p. morgan will be buying back their stock. even if they're not going the upside. i think there is a foot beneath

them. i'm not sure what the exact numbers might be. we actually, take a look at banc of america. they bought back 2.3 billion this past quarter. they have the ability to buy their own stock back. they are choosing to do that. i think that tells us the fundamental also are still strong. >> agree. could they all trade down? >> of course they could. but to try to pick when it's the right time to get out, paty taxes and get back in, hang it on. >> again, connect the dots. you are pos live longer term. they may be consolidation phase, does that mean are you constructive on the overall markets as they stand right now. >> i would say i am. i like what we are hearing, i think once we kick it in towards technology and that, i this i we will get much stronger, tonight not necessarily with ibm. i put that in a different category than financials. i think we are looking at a broader market. this earnings season will continue to beat in a big way other than goldman sachs. >> that a month ago, scott red ler p 3live was here to make a

technical calls for bank of america breakout. >> i want to show you a chart that i actually looked at today, which i think has a big opportunity to buy, which i actually did this morning, which is banc of america. if you look at bank of america, will you see, it looks pretty much like the xlf. ittic nighted right here, boom. as soon as president trump was elected. >> bank of america shares are down. just another buying opportunity for the banks in particular or has anything changed technically? >> reporter: well, we like to do, we like to measure trends. just like guy said, when president trump was elected the banks led the rally. theic nighted and had a fast and furious move. few remember, take a look at banc of america, this is exactly when ittic nighted. this is when the market ignited. so last time that we came on, we tried to tell you about thing a sell rated trend. right here the accelerated trend was broken, about a month ago, came on and said, we had big support. you usually get some kind of "fast money" bounce.

that is exactly what happened. it bounced about 7% from that particular time. but what happened here, it came up into existence and kind of fell. so we talked about the potential of a head and shoulders top hat. so instead of going from just bent, it could go to brokeen, in order for this to break, it's got to break 22. if you are still banc of america, i would trade 22, otherwise like they said, it could hit an air pocket. you are looking closer to 19, which would be the measured move from the top of the head to the nextli neck line, if i get my red dot or aroar, that can take you down to about 19. without being said, they say, so goes goldman, so goes the market. goldman already broke that key area, it broke 220. with etake a look at goldman sax, look at this, goldman sachs also led the rally was the first one to break what we called the neck line here right around that say 220. so i wouldn't be buying goldman sachs until probably around 195

to about 204. so there is an opportunity to reach us. i would wait. if they already broke the support, you know what could happen? the xlf which is a broad gain of all the banks that held the first time it came into support, it's time to break below that. if the xlf gets below and stays below. which is important, 23, you will see more weakness in the banks, okay. then in my opinion, that could make the overall indices or the broader indices take a little more of a dip and break that 23, 24 level. watch this close, if it hits an air pocket and goes lower, you probably don't want to be in the way if that breaks. >> we agree, there is as you mentioned, 195, 204 there is that downsize potential as well. >> i think goldman sachs, if it breaks. it broke the key level the an air pocket. i wouldn't get in the way of it. i'd wait to see price discovery happen. i think 195 to 105 is that area

to look at goldman sachs. look at how the broader indices are doing. all right you see how the markets react as well. >> all right, scott, thanks. t 3 live. ly go to you. you mentioned air pockets. >> market cannot rally unless the banks rally. right? it's a growth narrative. the market is up for the nominal growth, improving data and the trump-ryan issues. the trump-ryan issues are taking a back seat. it's growth people are looking for. unless the banks, we see a hawkish federal, the fact that things are improving. >> we have a gin on the year of the s&p 500 with the leadership of technology. so why can't there be a different growth narrative even if they're flat? >> super crowded, megacap names in technology are the ones really leading the charge. i mean, of course, there is the fringe as well. in general, you have a very crowded centralized trade if you will there. look. i think for the markets to move higher, you need the financials. >> i can understand that

argument. the stockmarket will tie up a couple years without the financials. >> now that's the -- >> that might be true. they might need it now. they didn't need it the next couple years. >> what do you think? >> the bank trade is something we all talk about from time to time again. i say it's broader than that you look at the chips, you look at the growth there. if they continue to show the growth going forward, i don't know, i think it's a broader rally than everybody is discussing all the time. so i think there is a chance. >> what did you do today, karen, besides goldman? >> not a lot. back to the same stocks. i'm very comfortable holding on to an alpha bet and a facebook. i understand, you know, they're up nicely. they should be up nicely. people talk about it the flight to safety there. you talk about, i don't know, i'd like them here. still own them. >> what did you do today? >> visa is a name. we saw money gravitating to visa, maybe because when they were out of favor, i think you see money go back into visa the

near term it's more of a safety trade than the financials. coming up, president trump in wisconsin with his buy america-hire america. is the corporate as pro business as it all sounds? we'll explain. check out shares of ibm sink following its report. the 20th great quarter of decline. wow, we'll here later this hour. later, united airlines tour continues on the company's earnings call, the stock tanked. we will tell you what he should have said instead. much more "fast money" still ahead. t become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there.

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remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. >> it's been a humbleing learning experience for united and me in particular. in addition to apologizing to dr. zo as well as the passengers on board, i want as to apologize to our customers. as ceo, i take number responsibility for making this right. >> that was united airlines ceo oscar munoz kicking off the earnings call this morning with a severe apology for the forceful removal of a passenger last week. president scott kirby and andrew levy expressed more sentiments as a scandal continues to hinder

the company. can they safely put this behind them or is there more turbulence ahe ahead. >> i sort of feel there is more turbulence the reason i say that is, when i look, you and i talked about this at noon today. when i looked at the management team at united. it's just not the same as what you see at delta or at jetblue or american or some of the other big carriers where they seem like the customer's always first and always right and you don't feel like that with united. how they handled this i think is just another you know excuse for us to stare at it a little closer and say, wow, how'd they screw this up? how many times do we have to hear them apologize? they didn't do at this time first time. now he's having to backtrack and go back and back. >> yesterday when the earnings came out. they looked decent. the stock was trading decently as well. what was on that call? >> it was capacity. i don't know that -- i didn't think the call was bad,

actually. it was funny, any time anyone answered a question, they would start with an apology over the incident of last week. i thought the conference call coordinator was going to apologize tore the incident last week. they couldn't apologize enough. i think it's mostly over. there will be some big settlements. i think it's really going to be about the fundamental also. i didn't think it was bad. >> how about the reputation? i think part of the problem is, fundamentally all these airlines kind of look the same. >> but people will fly the best price, or the most efficient -- >> that's the business traveler, there was a line from the president he said they got a lot of inquiries from corporate flying. >> 20% of travel is really bother and 80% is somebody flying once every year. so if the corporate sort of client starts to get braveer, it's a problem for united. i don't think that necessarily happens because of the initiatives, the marketing

campaigns they have. but i say you are 100% right, the corporate investor or flyer decides to pull back a little bit. >> next up, tesla tanks the truckers. jeffrey's downgraded who engine companies which make engines on tesla paccar and cummins and elon musk tweeted last week about the semi truck it's planning to develop or unveil in september. i thought this note was really interesting. because the analysts basically said, you know what, laugh all you want, this is a trend that you have to recognize is coming. >> i think it's a trend you absolutely have to recognize it's coming. i think it's a little early to make a trading decision on that trend. so self driving cars are a ways off in general. self driving trucks, delivering, you know, product to people, are even further off. so i look at it and say, absolutely, it's a part of the growth narrative. elon musk delivers that better than anybody else around, except for a jeff bezos if you l. it's

a part of the growth narrative you need to sell to investors and keep them on that chain of we will see stocks go to higher levels, because we have things to come. i don't think it's a near term for truckers there to be fair, it's not going to be a factor for the next two years at the earliest, but already, the valuations for a peak cycle optimism. >> real quick. io enif we have a chart. can you do it on your own. from 2012 to 2014, middle of compensation went from $80 to $160 and completely round turned. from the beginning of 2016 to recently, cummins engine went from $80 to $160. which is where we basically find ourselves now 145. so with the valuation with this note, aco gent argument by that analyst, if you have been in this stock for what has been a ridiculous move to the upside over the last 14 months, there's nothing wrong with taking profit. >> i would look for the tesla investor. it's not the semi truck that was the most interesting and exciting thing that elon musk

tweeted. it's the pickup truck. right? if they can make a dent in the pickup truck market, that is -- >> when he said to bring that up, because the fact we already know you got the 3, but the pickup truck. that's what ford sells. that's what zb m is selling. >> that is the area of growth. >> as long as you got it. >> i would be on that band wagon. >> would you boy a tesla pickup? >> yes, especially. >> what's that mean? >> the problem is that for you i will make it. >> it's got to look good and be cost effective. if the cost is too high, a lot of the individual contractors won't be able to afford the products. you are right, a couple years off of that. ibm down about 4% after marking the 20th straight quarter of revenue decline. we'll bring you the latest from the conference calm. i'm melissa lee. you are watching "fast money" on cnbc first in business world wide. here's what will be coming up.

i will be selling a buy america and hire american executive order. >> sounds good. but is that policy good for the market? we'll break down the winners and losers as president trump pushes to bring jobs home. plus, ronald mcdonald is going high-tech. embracing technology to increase sales. now, the streets is noticing. we'll tell you just how high the stock can go when "fast money" returns.

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. >> welcome back to "fast money". we loo live at the nasdaq market. all ending the session in red t. dow dropping 115 points, energy and health care were the biggest laggers. here's what's coming up in the second half of the show. ibm is posting another quarter of revenue decline t. conference call is under way.

we will bring you all the headlines moving the stock. mcdonald's is beefing up its technology, ha ha. the stocks are hitting an all time high on two an nists upgrades in the past two days. is it too late to buy? we'll explain. we starnlthed off with president trump moments ago buy america hire america executive order. >> reporter: melissa, this executive order targeted policies on trade and immigration. one division aims to get rid of loopholes and rules that require government agencies to buy american products. this is primarily aimed at the steel industry t. administration says it's unfair for companies to use subsidized foreign steel to win federal contracts. the second part of the order deals with immigration. the white house directed homeland security and the labor and state departments to root out immigration fraud. the administration also wants to move away from using a lottery to help decide who gets an h-1b visa. they say that has created a flood of low wage, low skilled

workers, particularly in the tech sector. the u.s. chamber of commerce criticized these moves saying that restricting high skilled workers would be a mistake and expanding by american rules could wind up closing off foreign markets at home t. president signed these orders after a wide ranging speech that attempted to reaffirm the economic message he ran on in the election, even after his agenda hid road blocks in washington. one of the things he talked about was tax reform. they are close to a proechl. he show confidence in secretary mnuchin. he brought up health care is a pre requisite to moving forward on taxes. we have to see what happens once congress returns from recess. >> thank you. so what do you make of all these developments here? not only did he talk about tax reform. he mentioned something big happening with infrastructure. i know we have this potential limitation on h-1b visas.

is this pro business. >> anti-business? >> i think it's talk, actually. i don't know, every day we see these things come out. we have a great tax plan just, just around the corner. i don't think it's anything new today -- how many times are you going to say that? the big league tax claim. >> it's all talk. you are 100% -- there is nothing they can do kout congress am approval. you leak at incy. they are taking the names and moving them offshore. how do you tax human capital? it's almost literally impossible. right? a lot of the jobs will place them over there. i see a lot of the names have been beaten up. if you buy it aggressively here. >> what do you -- >> you have that look in your -- >> really when you think about this executive order, granted it's a review of the program. so as you said, nothing may happen at all. but this seems completely anti-business. i mean to tell them what to do? who to hire, where to hire them

from? what to buy? >> they will couch it as pro-business. >> see, i said, he is not as, he, the president, i think he's more teddy roosevelt than ronald reagan. i don't think he's as pro-business as the media puts or he portrays himself to be. let's put that it way. i think the business is scared of him. so it appears as though he's pro-business. i think he anything but. with that said you hit the point of diminishing marginal returns t. more and more they talk, the less things get done, the less things get done. >> it's an executive order at a press release. seriously. >> noise. >> and the binder, that leather binder. i don't know. >> you talk about pro-business. where did he borrow money from? ge capital and chinese. that's where he borrowed money from since 12, 15 years ago, even more probably. so i look and say 100% not a pro-business guy. our next guy says the

executive order represents a coup as well as liberal democrats, jim vandehei from politico joins us now with more. it's always great to have you. >> here here. >> moderate republicans and liberal democrats. how is this a victory? >> i'm not arguing that, that it's a victory for them. what i would say is what you said there on the set, it's much to do about nothing. it affects some companies on the margin. there are 81,000 of these h-1bs. they want to move it to a merit-based system. they want to go to some companies on the margins. you can't even clang the number of h-1bs without congressional approval. i tell you, when you talk to the steve bannon wing of the white house. they really do want to go after h-1bs. they'd like to clamp down on silicon valley and go after the tech companies that create wealth and don't necessarily create a lot of u.s. jobs. so the victory for those forces

that don't want to take the most radical approach towards business, towards silicon valley, towards the tech company. >> that weren't supportive of trump in the campaign. and this continues a pattern where you have a white house that sort of talked big, particularly on the campaign trail and hasn't done a lot substantively in office. >> so does this represent steve bannon's diminishing stature within the white house? it seems like steve bannon is not necessarily sitting at the adult's table anymore. >> he's still in the white house. over the last month or so, there has been a huge change internally. you now have the jared kushner, ivanka trump. have you gary coen, the sort of new york centrists, liberals who have a lot more authority and clout with the president when thinking about rhetorically where this white house is going. in the early days, it very much was bannon filling the void, it was steven miller filling the void, which is why you had a much more bombastic white house

thinking in much more dramatic tones on immigration or might do on visas. and the only caveat there is i don't think trump know what is trump he wants to be yet. so while he likes this approach that he's getting from the family. hemoswitch that if he feels like it's not working. where it might not work is, he's got to get legislatef accomplishments. if you want to get tax reform, infrastructure. you got to get it through congress. there is not a democrat in town who wants to do business with the trump white house. >> that itself not what the activists want. that's not what the money wants. that's not what the voters want. so he's got to figure out a way to thread that needle to get conservatives, you a thent tick conservatives in the house. >> does he have a better shot of getting through the legislation if they deal with the trump part of the white house that's a little more cent rift than this steve bannon white house that had existed before. >> that's the new bet? i don't know that that works. i do think it requires some democrats, some moderates democrats to say they want to do

business with the trump white house. because they took such a hard line on health care early on, because of the rhetoric that he uses, i don't think there's that many democrats that want to work with him. i don't think there is that many that fear him right now. and so he's got to physical out a way. this isn't business. you can't just order somebody to do something and it gets done. he has to figure out a way to get a majority of members to say, hey, let's do tax reform or infrastructure. otherwise, it's not going to be 100 days, where he doesn't have significant legislative accomplishments. it can be a year, two years, it's a much more complicated thing than running a business. >> you mentioned tax reform. let's try to clear something up. does health care need to get done in order for tax reform and infrastructure spent to get done? >> no trump better hope the answer is no. i know the president said he wants to get health care done first. he might be able to get health care through the house. it's almost impossible to get it through the house that gets a

consivbtive endorsement and somehow gets the votes it needs in the senate. at some point my guess is soon they will get it to the house and put that to the side. then they'll turn their attention to tax reform or infrastructure. either together, professional separately. i think what you will see over the next four-to-five months, is they will confront the reality tax reform as good as it sounds is really, really hard. it takes a lot of time. you have to make a lot offing isry ifiess. my guess is, if they get it done this year they keep moving the time line, it was going to be august. now the end of the year. i don't think it's as ambitious as the plans talked about now. if he can get a reduction in corporate rates, a reduction in marginal tax rates, even if it's for people in the middle class lower income, you can claim that's a victory. >> that probably would have a positive effect on the markets and a positive effect on how companies are spending their money, but he's got to be able to get those done. he's got to be able to prove he

can do that. that is a big if right now. >> jim, thanks for joining us, always great to see you. let's say it's a form of tax reform lite. good enough? good enough for you, pete? are you happy? >> i think it would be. >> we have to get something there. i think the health care. we all talk on this desk. they attacked the wrong thing, obviously, i think he was influenced by others to go after health care first. tax reform is where they needed to go. that's the area. if they can make an impact there, even if it's a negotiation, i think and tax lite, it's still a positive. >> it's a positive. yeah, is it positive enough to support a market that's only 2.'05% away from a record high? >> ply guess would be yes. >> part of the rally earlier this year was both expectations for tax reform and improving economy says tightening down and that -- from trump part is gone now. i think, it's just improving economy that's all that's left

of the rally. so even if they get modest tax reform, i think that reinvigorates them. >> the market is not giving credit, trump a lot of credit. you are right, as long as the growth narrative stays on track, the market can, you know, perform well. once that growth narrative breaks down, we're done. so he's going to get like you said, chris krueger points on the board, he needs to get points on the board, so he needs investors to buy into this trade. he has to get them up there. >> so we get some sort of tax points on the board or however many points you want to call it. we have improving economy. then you have the fed. they want to shrink the balance sheet. >> fed hiking into potentially a strong environment, look, can the fed fed -- i've asked the question, can the fed hike us into a recession? tony dwyer said every time they've hiked they've effectively hiked us into recession. it's just a question of time. so that will be a problem. i don't know when that kicks in. that's something you absolutely have to watch for.

the longer, long-term rates, ten year and out continue to go down with the present going up, that's not a healthy side. still ahead, ibm shares sink, they marked a dubious milestone in its earnings report. we will hear hour they plan to turn things around. facebook ceo mark zucker burg addressing the facebook killer, at the company's annual conference, why are investors so concerned when "fast money" returns.

>> welcome back to "fast money". ibm shares following the earnings report, let's go to san francisco with the details. hi, deidre. >> hi, melissa. ibm may be growing. comparative business, cloud computing and artificial intelligence. here's the thing, it's not enough to make up for declining legacy software and services business. so that has led to big blu's 20th year over year revenue. they say they're not focused on tha that. >> that 20 quarter headline is not the framing we are thinking about. we are thinking how do we continue to move the business and our clients to get the

growth? now the portfolio will grow. i am confident the ibm company will grow again, it's taking, it takes our time. we are taking time -- >> now the markets have been fairly patient, driving up ibm stock some 20% last year despite declining revenue, but there are signs their patience is wearing thing. ibm is under performing the s&p and the dow so far this year. what investors continue to like about ibm, even if it is taking a while for the transformations t. buybacks are well on the way to becoming a dividend aristocrat, another one could be announced at next weeks agse. warren buffet a part of the reason he likes it so much. he has accumulated a nearly 8.6% stake in the company since 2011. the number he is looking at per share price is 170.43 the average price he paid for his

stake. >> 1 fent.43, 172 in the after hours session right now. he is in the red on that so far. thank you. i was talking to a power analyst, he says ibh trades at a premium to its peers. so what are you getting for that premium? you get 20 straight quarters and a three and a quarter percent dividend yield. >> right. >> does that work out? >> no. >> they're trying to transition from their legacy business to where they want to be in the future. >> it's a tech. >> oracle did it much faster. microsoft did it extraordinarily. >> intel. >> you say cisco to a certain extent. ibm can't seem to make this turn. they will make the turn. the question is here and now, what do you pay? what's the right multiple for a declining legacy business. margins that continue to decrease. their margins came in right

under expectations? >> you said ten? >> listen, i think you could say ten, obviously the market will get you there. it's probably closer to 12. warren buffet will probably continue to buy stock. he is correct. you have that working for you. again, this doesn't change overnight. it obviously doesn't change over the last five years. >> is there hope somebody will come in and demand more change at ibm? >> i don't know. you have warren buffet there behind the scenes, if he has some thoughts about change he wanted to see. maybe that would happen. i don't know, do you hope the 21st quarter is a charm? i don't know. it's not like it's so crazy cheese that you think, all right, there's got to be a pony here somewhere, something that looks like it's something else? i don't get it, actually. moving on, the end to the cleveland murder suspect, he posted on facebook, mark zuckerberg addressed it at the

developers conference in san jose. julia boorstin is oak there. >> reporter: hey, before getting into the development conference, ceo mark zuckerberg addressed the uproar over the murder video posted sunday. on the heels of facebook saying yesterday there is more work to be done to impro the platform's ability to block offensive content. >> we have a lot more to do here. we're reminded of this, this week, by the tragedy in cleveland. and our hearts go out to the family and friends of robert godwin, sr. and we have a lot of work. we will keep doing all we can to prevent tragedy from happening. >> reporter: now, this isn't the first time people posted offensive videos on facebook or facebook live. rbc analyst mark mull haney says he doesn't think this will have an impact on the platform, which

is safe for this regard than alphabet youtube. >> that suffered an advertiser boycott last month over ads being placed to offensive and extremist videos. >> the advantage facebook has by the way, as a closed social network, is you have your friends that will govern what kind of content you put up there. whereas, other sites like youtube are broadcast networks. so anything can go and there is no social sensor against that. >> but facebook is still leveraging all of its artificial technology and 2017 that evaluates videos to make sure this doesn't happen again. both to keep its users and its advertisers comfortable on the platform. melissa. >> julia, thank you. so will the incident have advertisers pulling away here from facebook? is that a concern at all? >> not at all a concern. i'm looking at tragedys, extremely sad. i think mark zuckerberg handled it from a heart felt prospective of it. i look at it, saying not going

to affect advertising, very different when have you advertising alongside it versus a closed off network. this was a person's home page. it's not going to have an effect. >> i will agree. i think the video is strength ai is a strength. this is something that seems like zuckerberg handled this perfectly. valuation wise, facebook, if you start looking, you start looking at these forward multiples and how their growth continues to be. this is not an over priced stock budget, once felt like it was. this was growing into itself quickly. >> which is hard to embrace. i mean, when you see a stock that's up 27% in the past 12 months. oh, well, that's number of value. >> but it could be, just as the stock was down 27%, it might not be cheap, right? so i don't think this would be an issue for them and where else are advertisers going to go? i don't really see what alternatives they have for the kind of audience that they want to be able to share. i don't get it. >> how is your facebook page

going, guy? >> my facebook page? what's that other thing? pinterest page. >> why are they throwing the credits. >> they're shade creations. all right, still ahead, mcdonald's afternoons up technology and celebrity presence, like the commercial are you watching right there. that's caught the attention of a number of wall street analysts. we'll tell you how high they see it's all going. traders are betting one name, in particular, could tank in the next few weeks. we'll give did you names and how to play it. you are watching "fast money" on cnbc, first in business world wide.

e. >> welcome back to "fast money". shares of mcdonald's hitting a new all time high after getting an upgrade from bernstein. more more on that, let's go led to susan lee at headquarters. >> since 1965 when the golden arches, bernstein upgradeing mcdonald's to outperform on better innovation and technology. innovation offering three sizes of big macs, apparently they're doing well. food inflation is back. it might not be that much

cheaper now to eat at home and finally technology, mcdonald's is rolling out the order to all 14,000 restaurants by the end of this year. this is key for the world's largest restaurant chain. as many said they were behind the times, behind the competition of dominos, panera and even starbucks. in the hamburger segments. they are the only major carolina to go nationwide with mobile ordering. wendy's told us they were going to start testing kiosks in 1,000 of the restaurants. that's a big difference in numbers. couple that with returns of 22, 44 billion. the stock is worth $160. >> that itself two upgrades in two day, wells fargo also rating mcdonald's outperform, citing digital as another reason. get in there before wendy's, burger king and jack in the box. i think you have to give mcdonald's some credit here. they have acknowledged, yes, they have been losing customers,

doing something about it. besides digital and all day breakfast, they are using fresh beef and cheaper beverages. melissa, just one more question for you. do you want fries with that? >> of course. >> that's the best part of mcdonald's. >> it's not a question. it's a statement. >> susan, thank you. susan li with the latest mcdonald's upgrade. we discussed this before. a strength in japan, a good macro trend in europe. it would apply a 15% approximately in shares which is the support. they're reducing the earning -- the shares part of the earnings. >> it means kudos to david to my right i think a couple months ago said you will see 130 before you see 110. >> can you see 150? the bernstein price target? >> mcdonald's level lost their way. it seems like they got their

mojo back. steve grass so talks about technology all of a sudden. so often, mcdonald's could get a 33rd of that. >> he made the call so pel well on mcdonald's. what now? >> i got to say i like it. longer term i think it will work. i think you have to be careful with starbucks. it's a second half story. technology actually hindered them last quarter. we we heard about. that that will help them out. >> not a bad problem to have, though. their worst problem. speaking of restaurants, one trader is making a big bet there could be trouble ahead, mike ko breaks it all down. >> yeah, we are looking at b.j.'s restaurants. this casual restaurant is going to be reporting earnings next week. it saw over 100 times. in fact this one trade actually is going to pretty much triple the open interest in it. it was a buyer 5,000 may 40, push, they paid $1 for those.

this will fire in 30 days. it will see the profit if the stock falls below $30. this is a stock that typically moves sharply on earnings about 6.5%, including a decline of 9% last july. >> wow. mike. thank you. mike ko in austin. for more "options action," check out the full show friday 5:30 eastern time. up next, guy is taking aing will at one stock that was winning. we'll tell you the name when we come right back. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim.

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>> time for the final trade. >> look at weatherford, wft. i think this is going higher. >> i am looking at arconic. cloud out. today on the idea of maybe the site won't advance as well because one of the main goals. i think it's worth a look. >> i am a buyer of coach. i think they will do amazing things for their story there. buyer of coach here. >> six blocks southwest, we got big game tonight. >> oh, i know.

i can't wait! i cannot wait for that. what sport are we talking about? >> talk about a down day, steve wynn. >> giddy up. >> i'm mellissa lee, see us back here 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 some money. my job is not just to entertain you, but to teach and coach you. this show, this show is based on