thing. when is that going? >> let's talk about it. s&p. i probably next week. >> okay. i want everyone to watch that and watch what he says about where the s&p was and berkshire hathaway what he started 40 years ago. that's a big tease for you. in any case, michael, thank you very much. >> that does it for us on "closing bell." "fast money" begins right now. >> "fast money" starts right now! luveng from the nasdaq market overlooking new york city's times a square. kim seymour, karen finerman and guy adami. tonight on "fast" shareholder meeting moments away, we will bring you more must haves on the break and morgan stanley analyst adam jonas has an interesting call. who might be the winner? it's not tesla. plus, safety trades are surging as bonds and golds continue to drive t. strategist says fear not, stocks are still a buy. we'll tell him what has him so bullish.

later, karen will tell you the one bank stocks that she says is a screaming buy. and jamie dimon, it's not your stock. >> oh, wow, man. >> we start off what it looks like for a retail armageddon once again. now covering your year-to-date lows t. main calls were, once again, department stores. macy's yeting crushed 8% a. retail sell-off in the other department stores. is this the retail bottom? if not, what do we need to know and see, to see that we've hit rock bottom? >> guy. >> the retail bottom in the names you mentioned. macy's, you say valuation, karen can speak to this probably eight times forward earnings. you talk about negative eps growth. you say, where is the core? i'm not sure. you look at a nordstrom's, it's had an interesting move over the last year, year-and-a-half. you say at 13.5, 14 times

forward earnings. why can't it trade? different companies i know, i get it. but that whole space the anchor stores are in a lot of trouble. i don't think they're tradeable at these levels at all. >> well, there is a couple things going on with me i think are significant. so i like valuation. it's cheap on valuation. but it really should be. so one of the things they talked about today was really important was margin compression. so while the guidance is not bad. they have that earnings, it looks like a cheap multiple. how do you do that? you'd be really promotional. so you put things on sale to zwren rate revenues and you can -- generate revenues. and you can do that a while. it's not a great business model. also, they're shrinking. so they have to cut expenses. it's hard to be shrinking. you got to do it, so it's better tan do it than not. but that makes for a business model that's really in flux. so i'm not really looking at the

department stores t. one thing i did do in retails today, i like when things are really ugly and they trade in intgers. that's people becameing out. foot looker, which i think it had a disappointing earnings is clobbered on that. it's down another $5 from there. so i pulled the trigger on that, i think on a pe basis, a price-to-cash flow, an ebitda basis the balance sheet is superb. i think it's overdone. >> we are seeing the multiples are different, they are doing it all through efficiency and what not? >> it's growth. >> but when you get to a story that you think is, is done enough. why is foot locker done selling off in the same way that maybe a macy's is or not? >> well, macy's has the balance sheets that isn't anywhere remotely closest to foot lockers. that's one. so foot locker -- macy's is talking about keeping the

dividend. they can do that. foot locker has the mammoth cash. they don't need to do that, hope. i think they have been growing and improving where macy's has been shrinking. i'd rather pay up. i'm not paying much at all for the foot locker gloet growth stores. to me, i think that's fair, in macy's you wanted to hear more about real estate. market efficiency doesn't help me at all t. top fund is absolutely shrinking. if anything, you will get eps growth through this kind of a cutback. i have been benign or not railing against retailers thinking there aren't opportunities. i think there are opportunities. i don't see anything in year. remember where we were a year ago. this was where we got that inflexion point in the retail sector. i don't think it's that. >> it's a flat out sector. amazon had a little more than $100 billion in retail sales in the u.s.

retail sells were $5.5 trillion. as it relates the point about macy's was margins, right, so amazon, their lodgisting iics, everything they're doing on the price points is squeezing the margins of operators like that. don't forgive, amazon is actually coming off line or they're going bricks and mortars. they have opened book stores now. >> that i will open grocery stores. we know what that's been for wal-mart, that sort of thing. so i think a lot of the traditional retailers, amazon is going for the jug you lar right now. they will be using the technology the logistics and their distributions, they will go online and off line that i will use the data back and forth. so to me, i think all of those department stores are no touches. the best piece of news that macy's can come up with, if they were to do a deal with amazon and use their brand and logistics and the distribution, all that sort of stuff, that would probably be the best news for macy's in shutting do you know lot of stores. >> just because department stores are losing the dollar doesn't mean that dollar goes to

amazon, necessarily. there was an interesting note about gas with the closure of macy's stores up $350 to be spent on william's apparel. that's out there. and gas, old navy could be the beneficiary. can't we think of it in terms of smaller retailers? specialty retailers picking up a piece -- >> maybe people are not spending their money. maybe their spending their money differently. you talked about hotel and travel stocks until today they have been on fire, marriott had a huge run. so maybe people are looking at torld differently. about children's foot locker, there was a $71 when they reported may 22nd. the quarter wasn't great. i don't think it was a total disaster. you talk about growth, it is growing. you probably have es growth trading at nine-and-a-half, ten times forward earnings. it's not ridiculous. if it stops here, this is the same low it made basically this time last year to tim's point. so if anything in foot locker

you have a tradeable bottom, i think. >> despite, the next three beaten down retailers are flashing a buy selling a. tip can be found in the bond market. we have a global market strategy and founder of the bear traps report. solarry, you got three names. let's start off with nordstrom's, what are you seeing here? >> you think of the balance sheet, you want to think of a pie. you got two-thirds equity, one-third debt. the balance sheet is pretty strong relative to many other retailers. most importantly, we're seeing this last couple weeks, you see we have a model that measures capitulation and that's important. because you want to measure the severeness of the capitulation but the credit side the bonds are massively outperforming the equity. it leads to a bullish short-term sign for equities in my opinion. >> how zou measure capitulation? does that show? >> it's kind of the breath of selling, the amount of shares

that have traded in the last say two-to-three, four, five day, or a month over the last six months and discount below that net asset value on say etfs or feeling if it's one or two standard deviations below the bull of japans, it's complex. we were on the program late last year this time and tim and i were recommending european banks, the same ebitda. the situation was severe. the credit and equity, sure enough we had a big move over the last year. >> short-term buy on nordstrom's. what do you see with macy's? >> macy's, the balance sheet is much more stressed, 50-50 in the pie, so to speak. i'd be more careful with macy's because you got a credit situation. so i'm more looking for the less leverage balance sheets in the storm. >> kohl's? >> kohl's is for us the near-term trading,ium side, down side, based on how well the credit is performing. you see in the chart. we're seeing a very pounding the table, short terms one, two

month trading buy here for the equity. >> are you surprised to see, you know, what itself going on with the bond market and your capitulation readings, given the stocks are trading, these guys are going out of business across the board w. that differentiation between a nordstrom's, macy's or a kohl's. >> it might not be as bad as the equities are saying. number two, zero coup upon bonds are up since the march fed meeting. almost 12%. bonds is holding abrupt like 6 or 7. a lot of hedge fund asset managers are under perform credit, under weight, excuse me, bonds, so they're playing catch-up here. so i think a lot of capital is coming into the retail space and to bond as a whole to play catch up. >> would you use these signals? does this give you any? >> well, you know, i look at when the balance sheets start to get distressed. we looked at j. crew months and months ago, macy's is not trading with any distress t. yields are still very tight.

so i mean, that would support your thesis. yes, still, i this i the business models are flex they cone want to step into the equity here. >> this disruption -- when disruption is this powerful, this swift, and you think about how many -- how many employees are in this sector, i don't think the market is going to cart the sector out in a short period of time. i think it will take a longer period. so the relief rally could be six-to-nine months maybe some more pain. >> did you buy oath either of those stocks? >> without question, it all set up very similarly to what it did last year. but i'll say this, nordstrom's reported on may 12th. on that day the stock traded 18th, 99.5 million shares, three or four times normal volume, traded down 41 bucks. it hasn't bounced. today it closed lower than that may 12th bounce. you had a lower decent take.

you haven't seen that bounce. my question back now that larry is gone, i don't want to bring it back. like last night, few haven't seen the bounce, when will you see the bounce? i think there is down side on jwm. >> he uses framework to get the european banks successfully. would you choose a nordstrom's or a kohl's? >> no the catalyst. i want to see a reduction in store counts, a massive reduction. i think we are way over short. i said this the ratios of the u.s. over europe are still a long way to go. the department store experience is one that people seem so stress as something we need, to a point. i think it's going the get back down the balance sheet will get to a place where you can get eps growth. >> that will only come through cutbacks. >> are you seeing any supportive action in the options market? >> not really. one thing i would have asked larry is, you know. >> japan. >> why do we frame it that way? just talk! >> i just, honestly, people! >> listen, the whole -- the

whole idea of the equity trading very poorly down 40, 50% from multi-year highs just recently and the fact that the debt is holding in there, to me doesn't really tell you what, you know, i think he is using a short-term balance framework. to me, we all know that the equities are going to be continually distressed. so listen i want to bring it back to a couple things here. at the end of the day what do we have working in retail, cost so, home depo, amazon the new one last week best buy which is interesting when you think about it, you know, again, i don't know why those department stores need to really exist for all intents and purposes in the way in which they do. back to your store count. >> they do, because if you think of what people are investing or spending on right now, electronics seems to be a big thing they are spending on. >> guy single handedly took down best buy, by nobody's business. the point is, people's stock.

>> you blame that on me. you know who does that, the five people on that deck right now t. one in the middle does that. big time. >> i don't do that. >>. >> i'm going to break. all right. coming up, all time highs, the company tesla analyst adom jonas will tell us what he wants to hear from ceo elon musk. the search for safety in the mark, it might not be a bad thing for stocks, black rock equity strategist is here to explain. later, karen finerman says there is one bank a must-own stock. will the other traders agree? she will give us her fast pitch later this hour. much more "fast money" ahead.

when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and.

tthat's why at comcast,t to be connected 24/7. we're always working to make our services more reliable. with technology that can update itself. and advanced fiber network infrastructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. >> welcome back to "fast money" as we wait for tesla's annual shareholder meeting to begin, we have a preview of what to expect. hi, phil. >> reporter: hi, mellissa. i'm not sure we will hear everything from elon music. i think some are expecting an update on the model 3. let's see if he gives us something to chew on or, yeah, we're working on, making progress, the kind of stuff everybody goes, eh, i want more

information. we will hear about solar roof demand as well as the gigafactory and the growth they are experiencing out there. when you look at tesla, the model 3 question will dominate what happens with this stock. this is very much what is pushing the stock higher and higher. i know you will have adam jonas on a little bit. production starts next month, deliverries scheduled to start year end. take a look at the annual deliveries. remember that they have not given us a full-year guidance in terms of what they expect for their production. they have said that for the first half of the year, they expect to deliver 45 to 50,000. somewhere in that range. most expert the full year to be around 110-112,000, something again the annual meeting starts in about 15 minutes. we will be watching it. we will let you know later on in the show exactly what elon musk has to say. it doesn't give us anything of substance when it comes to the model three. >> have you talked about a pick-up truck.

>> that could be 15 points tomorrow. >> and remember, there is always something way out on the field at this annual meeting. >> all right, phil, thanks. keep us posted. for more on what to expect, let's bring in morgan stanley's head of gloeshl global research. welling come, adam. >>. so in terms of the annual shareholder's meeting, is there anything to expect? >> we think of the bigger picture here. we think this is the moment for tesla from taking the leap to being an auto mafrer to feeling their mission and that means using their software and hardware in a network of data capturing, terrestrial drones, to monetize the consumer experience involving data and content. that's what we think is their best shot at being an amazon or apple of autos. >> you came out with a recent note, interestingly, tesla you say is not necessarily or won't necessarily be in the lead when

it comes to autonomous driving. >> yeah, they may not have to be in the lead. again, if tesla is just a car company, limiting themselves to one in the dollar mark, then they can worry about competition from the germans the do meftdics and the traditionals. they want to be much more than. that they want to get into applying artificial intelligence on role world applications on our rods and working with local government and state level to accelerate that. they're spending $4, $5 billion a year, melissa. they're not doing it on cars. can you build three or four auto cars a year with that. they have a much, much bigger plan. to date the investment community has gone along for a ride and willing to funds it. >> so, where do you think that is in relation to tesla? and what could that be worth to alphabet? >> so we work with morgan stanley on a piece where we valued wamo at $70 billion to alphabet. that's giving them 1% the miles

traveled by year 2030. so that's just a starting point. what would be in it for them? well, you know, to the extent that data and mapping and owning the consumer and mobile supercomputing consumer with that platform, that might be of interest to a company the resources of wamo and a bigger picture of alphabet, for example. we're at a point where these big companies, which you talk about in your program quite a bit. you know the ones approaching a trillion dollars or so mark cap. there are only so many markets that can move the needle for them folks. when you wonder, where is that next multi-trillion market transportation, that's right. that's at the top of the list. >> so this question comes a little out of left field, global auto analysts at morgan stanley, a huge position. at what point does tesla no longer fallnd your purview? i'm sure you had conversations? when does it fall out of that i guess? >> when does it grow into this

technology. >> it's a really good question. we think auto 2.0 sits somewhere between the autos we know it and apply ai and tech and megatech that the world is turning to here. so, it really kind of comes up to some of the topics they might be discussing at the annual meeting or in the board level. it could be by the end of this year. it could be next year. maybe it's five years from now. but i figure your point is very fair. perhaps, you know, in the nott too distant future. auto analysts won't be covering the stock any more. >> tesla is up, new all time high in the session your price target, you recently down graded the stock. what is it now? is it over valued? >> we're believers and we ostensibly think a 50 or 60 billion order of magnitude is justified. we agree t. target is a bit below. yeah, it's a bit below.

so does that mean we short the stock? >> no. does it mean that we would make it a core position? >> how difficult is it for you as an analyst to come up with the 305 based on your analysis. it seems to gravitate. i asked a specific question to analysts, if you raise this price target to 429 i think it was, kept this hold rating. are you basically saying it lifts? they said, yes. >> you got to look in the mirror here. when i talked to our institutional clients at morgan stanley, the funds managers, maybe the best this inc. is nothing. it's hard to be a analyst and say do nothing. mellissa, sometimes that's the most important thing to do. i boone necessarily touch the stock here right now. if i'm building the portfolio and had to own and it was limited to my share mobility universe in the united states, tesla is a part of that universe, we would have exposure. to be overweight when you have a wealth of other stocks across a franchise, maybe you come to a different conclusion.

but again, i think people judge tesla and elon musk has said in stone, if you judge tesla on what they are today, it's widely over valued. the right way to think about it, though, if you were to give elon musk $20 billion to go in a room and come out and see what it could create, versus giving a ceo $20 billion. who do you think could create more value? >> it's interesting. >> in real yvette $50 billion and it's done. so that is one conclusion and that's one of the things again they probably need to talk about today is how much they'd do it alone. >> right. >> versus partnerships. >> good to see you. adam jonas, morgan stanley. >> what's great, listening to adam. i think he provides rationality with the big picture thought. with i is clearly what's out there. the must have element for the stock for investors. the real question is, is this a must have? do one of the big tech guys have to answer this company? i actually think the big three are in position. they see transportation as a service, as a business, they

have an entitlement and a right to and a business they're going to be n. i'd be very surprised if actually tesla does this alone. on a valuation. the stock is strechld. i get the big picture. i'm not a buyer. >> i think if you own it, maybe the best thing is to do nothing at all. i think the thing to remember is stock at once a year is 30% peak to trough decline is an opportunity to get you in. i can't help you on tesla right there. intel will close the deal. let's go from ev to av, autonomous vehicles. that's probably a decent play if you look out a few years buying a company that has a half a billion from sales. they make the sensors that make autonomous possible through, you know, their vision centers, that sort of thing. so this is a company that is focused on getting away from their pc server, moefbl stuff. they see i guess what a lot of see in tesla for the transportation. >> still ahead, we are moments away from tesla ceo elon muck

addressing shareholders. we will bring you those comments after the break. i'm melissa lee. first in business world wide. in the meantime, here's what else is coming up on "fast." that's what investors want as they plow into gold and bonds despite record highs. when the top strategist at black rock says the search for safety could be bullish for the market. he'll explain. plus, erin is bringing the heat, serving one stock up 33% in the past year. she says now is the perfect time to buy. the name when "fast money" returns.

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welcome back do "fast money". castle ceo elon muck ability the take the stage at the annual shareholder meeting. we are monitoring the webcast. we will bring you all the headlines as they break. plus, karen here is making her fast pitch debut. >> wow. >> the one stock she is calling a home run for investors. we'll find out. first we start off with gold at the highest levels since the election. >> that is our move of the day t. gold tracking etf up 1% today. gold not the only safety trade that has them surfing. dom chu is in the newsroom the break it down. hey, dom. >> reporter: hello, we had that upside, what was it the safety dance. that's the one, it's been the safety trade for so many of these days, it's probably more ev department in the treasury bond market. you mentioned gold t. prices for that safety of government debt, they have been on the rise here, that means yields is moving lower and lowerer on the lowest levels since right after the election of president trump back

in november. >> that means etf and track treasuries have been on the rise, including ishares fund, that tracks the latesting theer tlt up 8% since hitting a 52-week low in mid-march. other beneficiarys, assets tied to sensitive sectors, like utilities, consumer staples. they track xlp, hover just below their record high levels. you can see it like dimension inled go. gold futures hitting the highest levels since november 9th right after the election. they're up 12% year-to-date. the mining goes to a similar gain, gold my opinioners, etf that ticker, of course, gdx. all of that said, it's all that safety demand, stocks are still right near all time highs. so for many traders, mem lisa it's about whether we start to see that safe haven play a bigger role or stocks remain kind of trained on megacap tech. we did see some show only

weakness into the "closing bell" today. back over to you. >> by the way, dom, happy birthday. >> thank you very much. it's a milestone one for me. a feel a little depressed about it. but i think this is going to be a good year for me. i already feel it with you guy, so i will keep that momentum going. >> what is it 60? >> i look good for 66, though, right? >> by the way, dom, for reminding us of men without hats, i'm going to take away the birthday present. sow know. >> safety. >> happy birthday, have fun, dom chu. >> that was awful. >> dom had mentioned gold, how about bitcoin hitting a record in today's session? that is probably a part of the whole reach for safety? >> it is, or something, yes, shockingly, i do have bitcoin exposure which is normally not my thing. i think that there is just a reach for it, different alternatives and the payment's

basis has been going nuts. you see some others going crazy. this is the most speculative thing i owned by so much. yesterday it's tiny, i am willing to lose it all. >> very strange day if you think of the end break 100. it's an important break. we only seen that a couple times since last summer. you seen the break down the yeel curve, yet emerging markets rally. yet you see overseas stocks rally. you see china rally in the face of this you get this, first of all, it's reenforcing you are seeing global growth. this is not necessarily a credit issue. i think it's very u.s. centric. look at the dollar, it's breaking down to the july levels. that to me is what's driving this i think it's international trades. >> gold has an international loop. if you look for the breakout level, gld, 125 we broward county down the middle of november. it recaptures 125. there is a good chance we are in

the next leg. i'm not a whacky gold person. >> you might be a whacky gold person. >> i'll mention bitcoin today got to 2950. it was literally trading 2,200. the market cap today at one point was greater than that for the gld and gldx combined. there is other rick assets that people moved into. you mentioned that google, facebook and what was the other? amazon got hit at the end of the day. you see, s&p took it down five, six handle just like that. so it seems the safety trade in equities is the last man standin standing. >> the in fact that the safety trade is working. it's no reason to worry. terry simpson is an investment tragedyist he joins us now. why shouldn't we be worried when we reach for bond proox proxys and safety. >> you have to stand back and tim talked about the global growth perspective t. economic

revival is real. i think what most market versus to recognize is economic progress through any cycle is never linear. we look at our practice prytary measures -- owe proprietary measures, we willb in this growth. as long as that growth is stable, that should support rick assets. so when we look at some flows into our products at black rock and how investors are positioning. it really doesn't symbolize to us everyone is really worried about economic growth trailing off expectations, at least. >> are you seeing the flows into cyclicals? are you seeing flow noose is sectors that would tear retically be levered most into this upturning growth? >> a great question. we have seen reversals in the cyclical trade. growth is out performing value right now. so investors are questioning some of these, i think generally across different asset classes, we are seeing inflows in both bonds as well as in equities. tim talked earlier, strong

inflows in the emerging market. that's not symbolic about global investors worrying about what our global expectations will be groe going forward. >> you have investors questioning what u.s. growth will be going forward. >> or u.s. valuation of the clearer mark, exactly. >> i think it does recognize there was a premium. a lot of investors were building into this stimulus and deregulation, not to stay we won't get that. the idea is basically that investor versus taken expectations down, maybe it took six months or so before the year, a lot of investors unwind some of those trades, they're worse off if you have stronger growth, that it's going to support risk assets. i think that's what's driving this momentum across the markets. >> what are you thinking in terms of rates? where do you think we're headed? >> i think it's a great question, we can remain stable. we come down 50 u.s. basis points tenure, year-to-date. inflation has come down. with i is one of the big reasons, we see nominal rates

come down as well. if interest rates cannot remain stable, i don't think year range bounds here. i think testing the 1 he 6 or 1-7 lows, i think that's a different environment and that would be a cause for concern. >> why is that a cause for concern? you talk about dollars the rates, all this stuff. you say it's risk on investing em. everything we see her and equities appears to be rick off. i don't see the 16-month lows, we have jobs data that's not particularly fantastic. people wanted to see inflation. those expectations are coming do you mean. it doesn't seem like a greats environment right now. >> if you think of probably the trend is probably about 2%. i think most strategists across the street agree with me on that. i think the idea, though, was that some people bought into expectations we could get gdp up to 3%. that's not our best case. let's say we get it up to two and a quarter, 2017 or 2018th, there the a lot of hope on. that now i think we have a lot

of investors saying weesh going back to that long run 2% post-crisis. now we will position quarterly off. that what that means is investors will move away from u.s. equities, internationally, where there is upward momentum for that different part of the cycle. maybe that's what we are seeing here. >> i will divide that. >> we struggled. people may call you back in. >> thank you. >> well, what i think is going on, the fed is meeting next week and, guy, will you like this, a baseball term. they now have exit vilo to except rates t. exit velocity for the fed is probably in a much safer place because financial markets are less jittery. you think of a year ago, they didn't do anything. we are arguably in the same trajectory t. fed is below their inflation lows. >> are they? >> totally misreading. >> are they jittery, though?

>> how could they not be? the markets haven't done anything. >> really? >> we talked about currency markets, the bond market. they seem pretty fijittery, don't they, tim? >> they don't, actually. >> think about where we were a year ago. we basically granted in june of last year, we were past the oil bottom. markets were in a very volatile place. i would say -- >> the brexit vote, right? we saw a on tton of volatility r that. >> if it were jettery, you'd see the dollar changing. you cannot tell me markets are acting jerery. put-call ratios are showing -- >> this is really important. equity markets are acting very complacent but the rest are not. the bicker markets. >> a ten-year at 2 mean is disappointing if you want growth at key technical levels. i don't think it's out of hand. >> he's still looking at 2, 5,

two and a quarter in 2017. he said that, that's not hang. >> first of all, if we go with grass iso 4% gdp, can you say people are in a scary place. >> i think they scaled that back. >> guy. get in the conversation. >> vix at 10.5, we are still here, maybe the vix doesn't measure the same thing it measured three or four years ago. make it's changed. i'm not certain. but today we have, to dan's point, i think, currency volatility is actually higher than equity volatility for the first time potentially ever. there is something inherently wrong with that i think. currencys in the world should be far more stable and they're not. i'm not pretending to know what it means. i don't think it means something particularly goods. >> still ahead, shareholder meeting just getting started. the stock hitting an all time high, we will hear from ceo elon musk on what's next for the auto maker. plus, karen's time to shine.

she is stepping up to the plates for the first time to pitch the one stock surging. can se convince the other tradeers to buy? we'll hear her fast pitch right after this brake. break /* this break. of the nasdaq market. the power of 100 of the world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc.

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welcome back to "fast money". it's time for everyone's favorite game. the fast pitch. one of our traders pitch a stock they think is worth a buy. the others will vote whether they are buying or selling the pimp. today karen is making a bet on the banks. start your pitch off. >> i think it will be a tough pitch. i will do my best. i believe in it. my pick is citibank. i got a number of reasons why you want to own it. first it is a global franchise. we have been talking how we have seeing growth outside the united states, few look at the center banks, j.p. morgan, citi and bang of america, citi has the big pick outside of the united states, which i view as a positive. the second one, i always come to valuation. i love a low valuation and among the big three, citi is the cheap st by far. we look at a tangible book value

above where the stock is right now. they ended last quarter 66 bucks tangible book value. it's 66 and change. they would be a buyer below tangible books. which is a credence to earnings. that's a good thing as well as the pe valuation is not expensive at all. i think we are seeing a re-evaluation of banks relative to the s&p. we haven't seen that in a really long time. it happened, started with post-election. i think it is here to stay. banks are out of the doghouse right now. the third reason is the ten-year bond. this is why banks aren't trading well. people think the ten year is -- that bank's profitability pegs the ten year. that's really a red herring. their assets place a lot more quickly. so this idea of a flat yield curve is not as problematic as people think. we have been in this environment a really long time. i think that's why this stock is

here. it's that red herring of the ten-year bond. and the last reason, the catalyst we see here, at the end of june we will see the sea car results. i think good results will allow them a dividend or a buyback of the shares or both. so for all of those reasons, this is why i want to own citibank, whether or not those four reasons come up. there they are. for all of those reasons, i want to own citibank which i do own. >> the capon would be why do you think? i don't know the answers, why tuning u do you think they've traded at a discount versus a j.p. morgan or a wells fargo? >> i think, well, citi as we all know was the disaster by far in the financial crisis and they deserve to be in the penalty box for a really long time. they were a very expreensive structure. j.p. morgan is run by the most

extraordinary executive. >> whose stock you didn't choose. >> i did choose it, i do own it. it's an extraordinary job, you can't say it's super cheap right here. citibank i think you can say it's cheap right here. >> is it at all concerned about litigation risks or saturday car? >> i think actually with the trump administration, one of the easier things for them to do, nothing is going to be easy for them to do. one of the easier things, i think, is to decrease the burden of regulation on basque. so i don't know that dodd-frank will exactly be dismantled. but i think we will see an easy environment for banks. that's a part of the reason why i think banks are out of the doghughes. i think c-car will be a positive for citibank. >> buying or selling? >> if you are used to scoring a baseball program. that's c equals a home run, people. i'm long the stock. >> wow. >> international consumer credit

card visa also drivers for citi. >> nathan. i'm a seller here. i will tell you why. part of this argument the other day it acts well, up a few percent on the year the 52-week highs. i'd much rather buy j.p. morgan, if this one is going higher, citibank is going higher, i feel much more comfortable owning j.p. morgue him. that's ultimately going. >> she had me with that left-handed mit. look what i wrote k-fine dropping knowledge. that's what she does, i'm a buyer of what she's sell zplg the buyers and sellers for karen's pitch. does karen have it takes to make you want to buy citi? vote in our poll, we'll reveal the answer later on in the show. plus, president/ceo elon musk, the annual shareholders meeting is under way right now. we will hear what he has to say

about tesla's future the model 3. you are watching "fast money" on cnbc first in business world wide. we created the ripple: the doughnut in a doughnut in a doughnut. right away, it was a success. i mean, it really took off. what people don't know

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but we've got the get tdigital tools to help. now with xfinity's my account, you can figure things out easily, so you won't even have to call us. change your wifi password to something you can actually remember, instantly. add that premium channel, and watch the show everyone's talking about, tonight. and the bill you need to pay? do it in seconds. because we should fit into your life, not the other way around. go to xfinity.com/myaccount >> welcome back to "fast money" gm, one trader is betting it is

headed lower. >> total options volume, when the stock is trading up 33, 18th, there was a buyer of 10,000 of the july 32 puts at 38 cents to open those, down at 31.52. that's down from the trading price. what's interesting about this trade is it will catch june auto sales will come out on july 1st. but it doesn't catch q2 earnings. the stock has held up very well relative to that of ford. it's obviously been in a bit of a down trend. it's broken that down trends a bit. i mention one point. this is kind of that level there of the puts, 32 bucks. maybe it's from the protection. i want to take it out. all the way back to 2010 since it's re-ipo after the financial crisis here. stocks actually held up pretty decently here. concerning all the headwinds we have, almost every day on electronic vehicles, autonomous

vehicles. to me, this is kind of interesting here. again, i think 30, 32 bucks is a really big level. we may see it back at multi-- multi-year lows. >> the annual tesla meeting is under way, elon musk is on the stage. what's the latest? >> listen, he just took the stage. he is answering the first question. he says there will be 20 questions in all. and most of this -- is going to be focusing on what he says the company's transition is to becoming a fully sustainable energy company. here's what elon musk had to say about what tesla has had in the last year and where it's headed. >> it's been a really great year for tesla. and i think even for years to come. >> just a little snippet, a little snippet of sound. he is answering the first question about the solar roof. much of what he has said so far in answering this question is reiterating what we've we heard before. these will be beautiful roolts.

th roots. this is a way to move towards an energy situation in this country in light of what's happening towards the push for sustainable energy being needed in this country. so we're going to stay on this call and on this webcast and we'll let you know certainly tomorrow what elon has to say. >> so, basically, he is answering questions, there weren't any remarks per se? >> no, that remark was the remark. that was the remark so to say. >> all right. short and sweet. all right, phil, keen us posted. filg lebeau from chicago. -- phil lebeau from chicago. >> did you ever have a wedding the groom the best man gets up givers a miserable long speeches. >> he stands there forever. >> was it you guys had a great year together? the best is -- it's lame, is what that is. >> it's from the beginning. >> he should have started that way. let me tell you something, if you are buying the stock, has this public ability to speak publicly, you should sell them

with both hands right now. >> that being said -- >> they talked about this company. we have gone past the core business, with i is something that is so -- >> i'm not commenting. again, we're only talking about. >> they just took the -- >> when they give their quarterly number with we talk about this numbers, stop losing the numbers, no? >> this is a transition year for the company. it's moving to a full energy company. let's forget about autos. to me, i think it's amazing to me this company gets the slack that they get. >> ultimately not. >> i mean, they're trying to buy into solar city. they have -- >> do you buy here? >> no, i'm not. i think it's becoming bigger that than cars. you think of gagafactor, cars. >> again, ultimately -- >> who would you give $20 billion to an old car ceo or elon musk? who do you have more confidence in? >> is it the first 20 billion or

subsequent 20 billion? >> answer the question. still ahead, are youbation on citi with karen? we will reveal the poll answer right after this. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation.

switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward.

at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 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 $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. >> karen picked citigroup, karen won, according to twitter. all right. time the play, tim.

>> target tgt. >> foot locker buy a downed injection ger. >> guy. >> fun, fun, fun. >> this will get you done. >> i'm melissa lee. see you foreman forwatching. "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. other people want to make friends, i'm trying to make you some money. my job is to educate and teach you. call me at 800-743-cnbc or tweet me @jimcramer. the dow dipped 48 points, the s&p sliding 2.8%.