remember that there has been a kind of serial -- a series of incidents. >> and focus on the case, though, instead. >> and focus on what you actually go there for. >> it's a pretty mild bounce in the stock given how extended it was to the downside. plenty of movers it's time for "fast money" to handle all of this now that does it for "closing bell" today. have a great one "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm places a lee we have a lot of names moving. conference calls are underway. we've got full team coverage throughout the hour. julia boorstin of at&t, meg terrell and am tren, susan li on chipotle we'll check in with them in a few moment's time. s&p, nasdaq, russell all closing at record higs today, getting a boost from some strong earnings reports. mcdonald's, caterpillar, dupont all out this morning, all soaring, helping the dow surge

triple digits, just shy of a record for itself. and we're about a quarter of the way through earnings, with 74% of companies beating estimates, about 10% higher than the average for the quarter. so is this market about to experience earnings euphoria, guys >> yes, we have -- hi, dan >> hey. >> hey >> that's an inside joke no, i think the market has been experiencing that as well. the vix traded almost below nine today. i think it got down to 903 and the good news is, i think that companies that have been doing well are being rewarded and companies that are not faring as well are being punished you see mmm down 5% today. the earnings we saw that were outstanding were, in fact, outstanding. led in my opinion by mcdonald's. we talk about it being a $160 stock. it got within 2 cents of that today. cart pillar continues to surprise me to the upside. i've been a skeptic for some time but there's no denying when saying that most of these reports, three of four, have been very good >> karen >> i agree it looks to me like the second

quarter is turning out to be pretty good. i think we'll see a decent gdp number, and i think the markets should be up on these earnings and obviously, when you have the market up and the expectation of the fed doing something wufb rates move that was very good for the banks. you had sciti investor day, whih people looked at positively. i'm long citi, with i think there's room to run there. i'm sad i'm long google, i wish i'd traded better, but i would not sell it. >> so far, it has not been a sell the news sort of event. >> it's not. but i'll pick it up where she dropped it, in google. google was bad news for you, but good news for energy and good news for laggards, because it gave the opinion that maybe you could rotate last week, what did we see out of netflix up 10% out of the print. we didn't see that with google guys who are afraid of rotating out of tech, going into energy >> but wasn't energy today just baid based on the move in oil >> yesterday, halliburton was up 4% i think yes and no google, not having the performance.

when you see google down, people are betting, hey, maybe tech is not going to be great. maybe that allows us to do the rotation that everyone has talked about, in the back half of the year. everyone has avoided energy. that's the biggest upset if people buy into energy this late in the game. >> nathan, nice to have you here >> i actually have to get something out of the way i owe you a big apology. >> from the start of the show until now? like, when you first began on the show >> we were in the crux of the bank earnings. and i told you i disagreed with everything that you said you laid out a bullish case for them in a lot of ways, when you're talking about all of these earnings we've obviously had most of the bank earnings. most of them just consolidated, for all intents and purposes they weren't high expectations a couple had guided down on trading. we know that the calendar and some of that activity is weak. but with the x lf breaking out today, when you talk about rotation and what kboolg does for some of these other sectors, it speaks to the fact, the youpg there's another leg, banks could be the ones that play a little bit of catch-up. if you think jpmorgan came all

the way up here to 95 bucks, it's not going to trade at 100 -- >> the only problem i have with that, if you look at the xlf and go back one year, you have to capture that november pop. they actually outperformed tech. so, yes, there's more room to the upside in banks, but it's not like they lagged >> my only point is, if you have the megacap tech, just consolidate, and then you have energy start to participate like you mentioned, you have the banks breaking out, i'm not telling you i'm bullish, just telling you what i'm seeing. i apologize, you were right to be calm and collected and just kind of digest the earnings. >> how i roll. >> but if goldman sachs were to play catch-up. if you were to see citi bank drag some of these names up, you'll have an s&p higher. >> that is a recipe for even more than record highs at that point. would you be a believer of that? >> i'm an eternal skeptic. but one of the things we said for a while, the financials, as

long as the xlf holds a certain level, that move is in tech. we've outlined the reason why a metric on tangible book stocks still have some room to the upside we talked about it last week, the private equity fund that blew up in the equity space, that marked the bottom of energy like ameren did for gnat gas ten years ago. you have all of these things kind of coming into play, with an s&p at an all-time high, the markets don't give you ample time to sell the high, here we are. >> one more sector, retail was up 2.5% today. that was a really hated group. you have obviously banks where sentiment is not particularly high and you have energy. >> and that scare of m&a within retail, with jimmy choo, with michael kors and jimmy choo. so you have people say, we've been lucky or not lucky, rewarded on the shorts what are we really looking for in these shorts that perform at a certain point when you see the retail sector has been decimated. >> do you have more hope for retail at this point >> i actually don't think the jimmy choo thing was the driver

today. i think they were just oversold. and at some point, if the economy's doing better, people -- i think people will shop i think they were just way oversold but it does bring me to the jimmy choo point, which i want -- there's a couple of significant things here that i think are worth noting so i love john idle, who runs -- he's ceo of michael kors however, i'm not a giant fan of this acquisition to be fair, they have telegraphed to the market, we want to do a sizable acquisition. so you shouldn't be blindsided for that but when you want a company that is in the middle of a pretty significant reboot of your business, that still has not yet shown its effectiveness, to do a meaningful acquisition, i think, is a level of -- it's difficult. and so there's more risk there so, they have said, we are not going to integrate jimmy choo, which i think is the right thing to do. we're going to let it stand alone. they're going to run their business, and we're going to observe. and don't expect any synergies so this is not kate spade and coach. we're not going to see that.

but here's the other part of it that i think is sort of interesting. they're going to take on debt to do this deal this is a big deal and they are going to not do the buyback anymore. and they're going to use any free cash flow to pay down debt, which they should do but if you step back, and you can observe a lot just by watching, one of my favorite quotes of yogi berra if you step back and say, you know what, they are not buying back an their own stock, which trades at ten times earnings, and instead they are going to buy all of jimmy choo stock at 27 times earnings, what does that tell you about their belief in the ten times earnings business that they have now? now they've also said that they want to do more luxury acquisitions, and i get, they want to become a luxury, multiple trading company but that is not without risk and what does that say about the company that they have now >> right >> so i don't this is a fantastic thing. >> right you have been -- you have cash

on the sidelines, is that right? >> i put some of it to work. i have a smaller amount of cash right now. >> you do? okay >> okay. >> does this make -- these earnings so far, make you more confident about where the markets are and the ability of the markets to hold ground >> yeah, i have a bunch of leverage bets, basically meaning, really in a handful of names. square wi square, i believe the stock that is up over 90% has still a lot of upside. avis budget, car, i believe that that's been misunderstood by the shorts and they're going to scramble to cover. do i want to put money to work in the retail space? i would love to, but i have these leverage bets where i have a lot of -- of insight where i think i should say, i think i have a lot of insight, where i think i know where the ball is going. and i don't really know. even though macy's, i could say, you should be a buyer of macy's, down 34% year-to-date, because the value is there, i'm a little afraid still >> dan, i'm sorry, you were

about to speak i apologize. >> listen, retail, you were just going to say this. xrthas been a position i've had, i've been rolling out a short position in puts and i let it roll out of last week with july expiration. i think you have to give it some room they were way, way oversold here we know that most of the earnings are going to come in august here. so you've got to see if they can breathe a little bit but one position that i entered a couple of weeks ago was macy's, for a lot of the same reasons we're talking about here, the oversold nature, the cheapness, the potential for some sort of, i don't know, strategic action or some sort of investment or something like, this is going back to this whole notion of amazon buying whole foods, some sort of combination between bricks and mortar and etailing, i think macy's is one of those brands with those sort of assets that makes a lot of sense. i know the stock is literally just 5% off its 52-week lows, but to your point, step back a little bit, think of this thing holistically

there's going to be a lot of combinations >> we talked about sell the news event, how it has not been necessarily sell the news in terms of the earnings season so far. but guy, given all the earnings that have come out today, you had your druthers, which is a sell the news opportunity? >> caterpillar but let me say this, i've said that now for -- so i have full disclosure, i've thought that for quite some time. but i still think people are looking at caterpillar as every hole that's going to be dug over the next five years will have a cat tractor behind it. that one's a little extended, in my opinion >> buy the news event. >> bay the news event. wow. mmm, i think they were unduly punished for what was not a terrible quarter and that stock is -- i think the franchise is still in twaact. coming up, blue apron feeling the heat after-hours the company's ceo stepping down in a surprise move afterless than a month of going public we'll bring you those details, plus at&t jumping after hours.

the company just released new details about a service. plus the latest on its deal with time warner. and biotech's up 30% since its lows in november it's heading even higher we'll give us the names he says will lead the charge much more "fast money" right after this listen up, heart disease.) you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. [car tires screech] [bell rings]

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welcome back to "fast mon " money. at&t jumping after hours with its conference call underway let's get to jewulia boorstin. >> at&t added a better than expected 2.8 million net wireless subscribers and cf jo john stevens says its new direct tv now skinny bundle is helping to compensate for declining subscribers at its traditional tv business and direct tv now is off to a strong start. take a listen. happy of our tv now subscribers are coming from traditional paid tv, mainly from our competitors. and the over half, at no-pay tv service at all we introduced this service at the end of last year and have now reached nearly half a million subscribers.

this has helped us keep our total video base essentially flat from a year ago >> stevens says bundling phone, internet, and tv service is working, helping to keep their customers hooked, and adds for the next business at&t will bundle in, time warner, he updated the timeline for that deal to close. >> the time warner review process at the doj continues we still expect to close the deal by year end and we have the financing set up to do so and our merger integration team is nearly complete with its plans foropportunities that this deal will make possible in advertising, bundling, and providing customer choice. >> as for what the combined company looks like, he said randle stevenson will be ceo of at&t for some time as for everything else, he said stevenson and time warner ceo jeff bewkes are still working it out. melissa? >> thank you, julia boorstin in los angeles. got to go to dan here.

>> so i bought this stock last week remember the big fast pitch we did a couple of weeks ago? that was my fast pitch >> oh, yeah. >> listen, i think this wireless add number speaks to what they were trying to do at time warner, what the idea was with the direct tv acquisition a couple of years ago. and if anything, it blows a hole in what john lejeras these was last week when he was talking about his earnings and their ability to compete on price. to me, bundling is the story going forward. the time warner deal will get done this stock has a 5.5% dividend yield. it's going to be a little less now that the stock's up. to me, that's helping you compensate as you wait for this time warner deal to get approval over the next year to me you only have about 10% worst-case scenario downside so to me, this looks attractive at 37 bucks. >> let me ask, i'm kind of surprised to the upside, certainly on that subscriber number i would have thought with last week's news, that we would have seen -- it's a zero-sum game in terms of getting new subscribers, yet if everyone's

getting new subscribers, is that really that many new subscribers to get some people have more than one phone? >> it sounds like a great conversation for the conference call i don't know miami telling you, they were expected to lose 22,000 and they gained 25,000 or something like that. there's something about their ability to bundle. >> we also don't know. to the -- if you look at john % levera ledger's side, it's up 14% down 8% or i reversed it, it's down 14% at&t and up 8% at t-mobile we don't know who their partner is going to be sprint and t-mobile have been the wild cards i think they'll continue to be -- >> somebody meaning a partner -- >> to deliver some content and i think that's always been the case i think he's made no, you know, no claims that that's otherwise. but they also -- every time we count a t-mobile out or a sprint out, the stocks do spike in the

coming months, because that's the risk >> we've got a news alert here on blue apron. the company's cofounder and ceo, stepping down already. leslie picker's got more on this story. >> according to a regulatory filing after the close today, matthew wadiac resigned yesterday as the ceo of blue apron. he will transition to a senior adviser role with the company. that company did not clarify what prompted the resignation, only to say, quote, his contributions to the company immeasurable and we thank matt for his unwavering dedication over the past five years they did not specify who would be replacing him as coo, but as you know, the stock is down 25% in less than a month, insistence company has been public. that includes the gains blue apron received from a few positive analyst notes this week the big concern surrounding this company, of course, is competition from amazon's tie with whole foods and the customer churn and marketing

costs that are so evident refund its purchase of common stock, and they forgave that, instead giving him a bonus of over $200,000 however, risk factor said that wadiak was among the people whose blue apron's continued success is dependent upon. now, some background about him he served as ceo since may of 2015 previously served a as the chief product officer, and before co-founding blue apron, he was ceo of cook's venture and founded a pilates studio he's also a classically trained chef >> pilates and cooking leslie, thank you, with the latest on blue apron this was a day after a number of underwriters initiated their coverage on the deal at an outperform rating, no less, more than half a dozen, in fact, on the street initiated that.

>> so at least he got the opportunity to step down after the stock had rallied a bit. listen, when was the ipo june 29th, i think this is less than a month from the ipo, he decided to step down what changed in 27 days, 26 days >> does that scare you, that something's changed, he's going to step down >> yeah, even under a normal set of circumstances, this would be disconcerting. i don't know what happened in a month that roiequires him to st down >> i don't know what happened in a month if they didn't want to have anyone resign during the ipo process, because that doesn't look good. that might be part of it it's a little odd he actually resigned yesterday and we don't know it's a big role. we don't know, but it's a new company. give him a pass on not being quite as timely as they could have been. it's not a positive, but -- >> there's nothing edeviodevioue this guy managed the whole ipo process, he's the ceo of the company, and this was a massively botched deal this company should not have gone public. we talked about the timing of amazon -- >> is he taking the bullet by stepping down? >> of course listen, i mean, the bankers

looked like fools, investors are upset, there needs to be a scalp and you got one. so to me, with i don't think there's anything that changed about this business. we know what's going on hear it was mispriced the company should probably not be public. >> the amazon deal, the head winds we have faced with the amazon headline coming out of it and you always talk about the lockup expiration. that's october 27th. that's coming. it's not exactly like it performed going into that lockup expiration so you have two things that are possible head winds for you. >> still ahead, biotech heavyweight amgen seeking after-hours, but the technician says this isn't the end of the rally. i'm watching melissa lee, "fast money" on cnbc, first in business worldwide in the meantime, here's what else is coming up on fast. >> it's the battle of the billionaire brains mark zuckerberg and elon musk, exchanging some harsh words on what the future really holds we'll tell you which side the traders are taking plus -- >> get me out of here! >> that's what states are saying to hedge funds and a top pension manager from illinois is here to explain why

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welcome back to "fast money. we're live at the nasdaq market site it was a record day on wall street the s&p, nasdaq, and russell 2000 all closing at all-time highs while the dow rallied 200 poi points we're all over the after-hours action tonight pam jen, wynn, on the move we've got full coverage of those earnings call. seema mody is monitoring wynn and susan li is checking on chipotle we'll bring you all the headlines later this hour. first, we've got to go to capitol hill, where earlier, republican senators gathered enough votes to advance a health care bill. kayla tausche is in washington with the latest there. kayla?

>> reporter: melissa, it was as thin a margin as the motion could get. 50 republican yeses, 50 democrats against, and vice president mike pence breaking that tie of the handful of noncommittal republicans, all but two, senator susan collins of maine and lisa murkowski of alaska, ended up supporting the motion to proceed senator john mccain returning to d.c. from arizona to move forward, despite saying he was against the current bill but it was senator ron johnson of wisconsin, a late and unexpected holdout, who cast the last vote after a conversation with leader mcconnell, that mcconnell said would remain private. it is just the first step in a multi-step process, despite the dramatic events of this afternoon, with even mcconnell saying he's unsure what the finished health care product will look like >> there'll be a lot of different amendments offered by different members, trying to craft the bill it's really entirely possible to predict, in a reconciliation debate, exactly what amendments

will be offered or what amendments will succeed. it's wide open >> the debate on the beginning of this process is still ongoing inside the capitol mcconnell saying he wants the process to wrap by the end of the week but remember, melissa, the house is expected to go on recess at the end of the week. that calendar may change if, in fact, the senate can produce something to send over to them >> kayla tausche, thank you. well, mcconnell said it, karen anything is possible at this point. is it impossible at this point -- >> is it impossible for there to be a deal? >> well, that's possible, too. in terms of trying to handicap winners and laurz losers in this space, can you >> no. although, i don't think a deal gets done, actually. if it met resistance after every turn, just to get to this? to have it be that close just for this procession, i don't think they come to a deal. i don't know if that means repeal alone i'm thinking not >> how does this stop the xlv,

though, from reforming the health care etf. it's up 18% year-to-date probably stays on track to outperform the rest of the other etfs do i think there's going to be a deal no >> can this be considered a win for trump? they thought this was dead just days ago >> i don't think it's a win for trump. but i do think that you'll see hospitals remain under pressure. i think that's probably the area you'll see the shorts try to attack hmos will probably still rally either way i don't think a deal gets done and yng this wi don't think thia win. >> you know, it's funny, i think this was a win to get it to where it was you saw what mccain said today >> i feel like i'm in opposite world here what is going on i think you have to assume that they're gaining some momentum, the fact they've gotten to this point. you think how close it was just for this mtp at this point, they have two days, basically, to wrangle, you know, just one more senator to vote in favor of this thing,

vote for a bill that knno one knows what's in it it's a sad state of affairs. >> sort of ironic, this is the way the original affordable health care bill got passed. >> we were just talking about retail and consumer confidence and these things one thing is for certain, that there's a lot of consumers in this country that are going to have a lot less money to spend if these -- why? >> if these exchanges go kaput, if they fall apart >> they won't -- >> they will fall apart. >> there's also $50 billion that's been brought forth to stabilize the exchanges. >> maybe that's enough this is something the president has been threatening to actually just do -- >> he's been threatening, but i don't think you'll get it to pass >> my point, very simply -- >> last word >> if it does pass, if it's just a repeal, these exchanges will fall apart and peoples dramatically will go up. >> i don't think repeal passes >> anyway, we've got to move on

here we could have this debate forever. moving on here, amgen seeking after-hours session after reporting earnings let's get to meg terrell back at headquarters with the latest on that meg? >> hey, i'm listening to the amgen conference call here they're just finishing up their prepared remarks, about to get to the q&a it was a beaten race for amgen here in the second quarter however, that stock you're seeing has been down after-ho s after-hours, although it looks unchanged as of right now, no, it is down about 2.7%. the midpoint of their 2018 guidance coming in about 8 cents short of the consensus analyst estimates there. also, analysts calling this a sort of weak beat for the second quarter. that coming out of mizuho, contributing a lot of the beat in revenue at least to inventory stocking in terms of specific drugs, there's a lot of interest in their new cholesterol drug that one has come off to a pretty slow launch it did slightly beat analyst expectations in the quarter.

e embril, their rheumatoid arthritis drug, did beat expectations i want to talk about neulasta, it's given as a supportive treatment to patients taking chemotherapy that came in a little bit light of analyst expectations thanks to a really interesting phenomenon a lot of that can be explained because of the immunotherapies that have come in to replace some of the chemotherapy when they're using less chemotherapy, they may be using less neulasta, as well we'll keep listening to the call and bring you anything interesting from the q&a, mel. >> really interesting. meg, thank for more on amgen and the biotech space, let's go off the charts with rich ross of everycorp isi. what do you make of amgen? >> we're going to give you 1 million worth of gain for 999. the chart looks a little dramatic here, down 2% but as you zoom out and look longer term. you're going to see a very strong setup here with the charts

here's what i'm talking about. this is a weekly chart the stock's been in a very well when have defined trading rake it's outperformed biotech over the past few years, displaying excellent relative strength. and when you look within the context of this range, which i like is this sort of continuation pattern here. you have the classic head and shoulders. it's not a bottom, it's a continuation partner, in this case, and in my view, the stock collects itself after this dip, post the earnings. and we actually get a breakout 180, key resistance for the stock. i think you take that out and move significantly higher. biotech is not just about amgen, a good segue, 8% look at this setup here. in my view, it doesn't really get much better than this. basically you have this big base of support, the stock's been in the penalty box now for almost two years and for good reason. cyclical bear market decline, 40%. that's a bear market in my book, but now you've broken out from this base of support in textbook fashion. that tells me that biotech is moving significantly higher.

here's a couple ways to play it. we've seen amgen here's another one of the big boys, celgene. big base of support. you know where we're going out of this range, boom, you're going to get a multi-year trading rage breakout that sets celgene up for continued success. now we go from celgene to blue, not blue apron, bluebird delivers the cure. you lost 80% of the value here in bluebird bio, but look what the stock's done beautiful run off the bottom, higher lows, there's your 200-day. you're currently higher. this is a stock that continues its comeback and finally, we go to gilead now, you sort of know the story here 50% decline. you've been below the 200-day for almost 18 months now, but just recently, the stock takes a break from going down every day, and you see this very nice rally, you've reclaimed that 200-day, you've taken out the trend lain i'm not telling you it's a textbook bottom. but i am telling you, this is a

stock to trade here on the break of the trend line, the break of the 200 day, this is a stock that could make nice comeback in the short to intermediate term secular based breakout in biotech has further room to run. >> rich, come on over. >> amazing work you guys have done what do we call that thing now >> the plasma. >> brilliant >> i have a broader question we were just talking about health care, overall how important is biotech to health care in terms of the charts that you see? >> look, clearly, it's a huge component. health care, more broadly, has been a revelation. on an equal-waited basis, it's still the best-performing sector year-to-date, even better than technology it's sort of done it quietly sew. biotech, obviously a big contributor there. and i think the charts speak for that resurgence. that multi-year breakout after two years of relative underperformance that's very compelling, both relatively and absolutely. >> let me try to play the devil's advocate here. amgen and ibb. amgen, we stalled out at 184ish

in march we seemed to have stalled out there again. so although i enjoy your enthusiasm for the stock, you can make an argument for a double top in the ibb today, 52-week high reverse close lower on the day do either one of those concern you? >> failure into key resistance has held for multiple years in this case are always a concern today what i think you saw was this give and take we've seen, the growth to value when interest rates pick up, people have a preference for banks, crude is rallying, copper is rallying we're selling some tech that's underperforming and selling some biotech, but don't let that take your eye off the ball. amgen is going to have its day here this stock has bided its time. it's consolidated within that very well-defined range. it's hanging o out here. and i think don't sleep on the giant. you're going to get that breakout >> the gilead chart is very interesting. that's been a name with pete through low 60s. now you have it in the low 70s it broke that long-term downtrend like you mentioned why is that a trading stock and

not a -- what would make you kind of get off the trade on the long side, if it broke that downtrend km >> i think the only thing that gives you reason for pause is how pervasive that downtrend has been it's not typical that you see a chart with that well-defined downtrend, just have that shot out of a cannon and just go straight higher. it's happened before, of course. so let's just say, i'm warming up to the idea and i think as the stock shows you something after once again year 18 months, two years of doing absolutely nothing, trailing the group on a yae year-to-date basis, let's see that relative strength start to pick up. >> rich, good to see you still ahead, wynn shares sinking in the after-hours follow its earnings report it is one of the hottest stocks in the s&p 500 this year we'll hear from the company's ceo and "fast money" friend steve wynn on what is driving the stock. plus, chipotle jumps after-hours on an earnings beat. will a strong quarterly leave a good taste in investors' mouth

to forget the health scare last week more "fast money" straight ahead.

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welcome back to "fast money. i'm seema mody

shares of wynn resorts are moving closer in after-hours trade. the big topic on the conference is expansion into macau, the world's top casino market and the growth numbers there now, market share is up, but ceo steve wynn pointing to some smaller challenges related to construction and one of its competitors. >> mgm in these final stages has enormous neighborhood implications streets have been blocked, barricades are up. and our conversations with our neighbors at mgm indicate that maybe this november, part of the building, at least >> these obstacles are expected to be removed, come fall now, another head wind, according to bernstein, made prior to this earnings report is chane's anti-corruption efforts. analysts say a wider pickup in anti-corruption activity, as we approach the 19th party congress in october that's in china, could have negative implications for premium consumer spend again, we're lacking at the stock, down by around 4% here in

after-hours trade. melissa, let's make the point this is also a stock that's up over 40% year-to-date. >> absolutely. seema, thank you seema mody, from headquarters. and just yesterday, the whole group got a boost going into these earnings, as well. >> rate, so 139 and change stock. i think this is probably a 2 1/2, 3-year high at least. now the stock is selling off it gives people, although excellent, gives people an opportunity to say, wynn's 32 times forward earnings, steve wynn is throwing some shade, tossing a little shade maybe he's somewhat cautious let's take some profits and a name i've got to tell you something i still think it's a reasonable stock. i think it's fairly priced given their growth and i think you buy this dip >> wynn and mgm both look double topee for me, going back to june 26th wynn is obviously up 60% year-to-date and mgm is up 18% year-to-date i go to las vegas here, and that's only up 17% year-to-date, but the other two technically

look challenging to me >> both double-topee i love the word. >> that's a technical term >> if only rich ross were here, we could ask him >> what do you mean "if. oh, he left. >> do you see him here >> i've got to pay attention on this show. >> sure he appreciates mark zuckerberg and elon musk caught in a spat on twitter. in a facebook live broadcast, zuckerberg had this to say about musk tease dire warnings on artificial intelligence. >> with ai, especially, i'm really optimistic. and i think that people who are naysayers and kind of try to drum up these doomsday scenarios are -- i just don't understand it i think it's really negative and in some ways, i actually think it's pretty irresponsible. >> that was his barbecue in the background, by the way naturally, musk didn't take toon back in a tweet earlier today saying, "i have talked to mark

about this his understanding of the subject is limited." fighting words zuckerberg hasn't responded to that tweet, but who do you think is right, dan? >> it's an easy one. this guy, zuckerberg, oversees a platform that couldn't figure out how to dispel fake news in the last year or so versus a guy who's basically trying to trade to create an electric car, trying to get us to mars, trying to get us from new york to washington in 25 minutes so to me, i think you stick with elon musk. >> he's also working on a brain-to-computer interface, so you implant something in your brain so you can directly interface with a computer without a keyboard or anything >> both of these guys are extremely cerebral nobody on this desk are arguing that they aren't but wlu lohen you look at it, in elon musk is looking one domino way and i think zuckerberg is looking at what faces him right now. so i think it is exciting, when you really think about it. i agree with zuckerberg. it is very exciting. elon musk is saying, what about if you use this for bat. >> he is looking at right now,

right, the use of ai in the home zuckerberg has been working on that sort of project immediate applications >> i hear what you're saying, i disagree, to the fake news thing, to point that out as zuckerberg doesn't -- i mean, clearly, he understands a lot about the way that technology affects people, how they interact with other people, how they interact with things -- >> i think he does what -- i mean, listen think about this every sci-fi movie that we've seen in the last 50 years, 90% of it has actually come to fruition, okay so i think elon musk is probably on to something here, here you know, sky.net, you know, remember terminator in back like 30-some years ago, whatever. we're not so far away from that. to me, i actually think it makes sense. why not be really skeptical and really nervous about this stuff. you can always dial it back, if it's just a change for good. >> so you said, you can link my brain to my -- why would i -- >> maybe not yours >> why would any computer want to do that what's in it for my computer --

>> a neurolink >> would you rather? that's a good game now >> i don't like being put into a corner here. >> nobody puts mel in a corner >> how do you trade ai, though because there are a lot of chipmakers also. >> that's, i think -- i think to dan's point, i think they're many years away, facebook, with on getting ai right. but if you had to choose between the two, i would have facebook than tesla on ai front >> how about google on the ai front. >> you can't do that >> whipt she can play the game. >> you guys are missing one. amazon is probably the best ai play when you think about it, these guys are going to use ai to serve you ads. that's all that grade schooogler facebook can do right now. not particularly useful for most consumers. >> that's not ai >> it doesn't seem that scary when you think about it like that >> when you think about alexa and their use of ai, that could be a pretty useful sort of

thing. >> wspeaking of facebook, the tech giant reporting earnings tomorrow and appears some traders are betting against the stock now. hi, there. >> the historical earnings move for facebook over the past eight quarters has been about 5% that's currently what the options market has been implying and fwal over the last five days, facebook has been the second most active single stock option that's been traded. and most of that flow has generally been positive. but today, most of the opening activity was not positive. we saw buyers of the 157.58 august puts. about 55 had traded and over 6,400 had traded the by the end of the day those are bets that facebook could be as much as 6% lower or more by august expiration that is just over three weeks away. >> didn't we see traders betting -- >> september 175 and 180 callings out in september. buying the really good size last week i will just say this, this stock has rallied $10% in the last

couple of weeks here i think you could have a similar sort of move that google had just digestion of that move. what did they tell us last quarter? that admos are hitting certain saturation rates i don't think you chase it, but it's not going to be a disaster. >> for more options action, check out the full show, friday, 5:30 p.m. eastern time coming up, chipotle is higher follow its earnings report the stock has been under pressure after another food-related health scare last week will a strong quarter be enough to turn things around? we'll hear from the ceo. plus, marc levine, the head of a $20 billion pension fund for the state of illinois just pulled all of his money out of hedge funds. whhey 's saying sayonara to smart money. much more "fast money" straight ahead. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me?

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welcome back to "fast money. we have an earnings alert on chipotle, which is jumping in the after-hours session. susan lea standing by in the newsroom with all the details. >> question after question on the earnings call. analysts wanted clarification on the impacts that last week has had on third quarter sales and how chipotle is dealing with the situation. ceo steve ells addressing the issue, saying that after a thorough investigation of the

norovirus cases in virginia, he said it was isolated to that one restaurant, and it was their failure to comply with company policy >> we take this very, very seriously. we conducted a thorough investigation and it revaealed that our leadership there didn't strictly adhere to our company protocols. and we believe someone was working while sick >> so chipotle's cfo also trying to paint a positive picture of sales in the first few weeks of july when asked how chipotle has been impacted by the negative press, and he says that the third quarter is still running at a sales growth rate of over 5.5%, despite the recent bad press that the company has received. and also, tough comparisons to a year ago when they launched their loyalty program, chiptopia. meanwhile, digital sales, the new frontier when it comes to restaurant, and chipotle well beyond the likes of panera when

it comes to digital sales adoption, they say it's up from the previous quarter and still accounts for more than 8.5% of their total sales. the fact that they have kept guidance, melissa, in tact for the rest of this year, i guess people are taking positives from this, thinking that the cases in virginia will not have a long-term impact on chuipotle sales. >> thank you, susan li, back at headquarters here's a question. is chipotle now in the clear, guy? what do you think? >> no, it's not in the clear although the quarter was good, comps were still disappointing at 8.1%. but i think they gave you enough to see -- last quarter was enough to see that maybe the stock, maybe the company has turned the corner. this quarter is good enough to see that maybe, in fact, all the bad news is hopefully behind him. so was it a bad quarter? look at margins, better than expected comps disappointed, but revenue beat >> they have such a huge target on their back. it can bounce from here, but just because it can bounce,

doesn't mean -- he's talking about it for a trade, i'm talking about it as an investment i would buy in fact other ones mcdonald's -- but when you look at cmg, you think no one's worked sick there? we only hear about it here >> it's amazing, it's ripe, someone could walk in there, trip on something, say it was because of the burrito they ate. they were dizzy. it's too ripe. it's got a target on its back. it will remain that way indefinitely yes, you can trade this stock, but i think it's amazing volatile >> part of that target is bill ackman's involvement, perhaps, karen. he tweeted last week about his order at chipotle. it was an $18 bowl that had chorizo, chicken, and all kinds of stuff that got it up to 18 bucks. but he's sort of a staltarget, o >> expensive, as well. i didn't know if you meant specific to bill -- >> $18 for -- >> build me up for three days.

$6 a day it's cheap >> not bad >> but that is sort of amusing, right? i'm not sure if you're thinking about the combination of people want to bet against bill, and, wow, an $18 ticket price, that's enormous all that having been said, though, i think this is it -- it's not crazy cheap and yet there's a vulnerability here right? >> yeah. >> so if mcdonald's, if you were to see the same news at mcdonald's as you were to see at chipotle, somebody got sick in one of their stores, what are the reactions going to be? chipotle would be a disaster, m mcdonald's would brush it off. >> if there were a third incident at mcdonald's, perhaps the stock would react. perhaps ackman's issue with chipotle helped to encapsulate broader issues for the industry. persian square down 4% on the year industry outflows on a six-quarter streak before this quarter. investor confidence seems to be rising as hedge fund inflows hit $6.7 billion last quarter. but as some investors rush back in, three of america's largest

retirement systems in new york, california, and most recently, illinois, have pulled the plug entirely on hedge funds. marc levine eversees $20 billion in funds great to see you in person >> great for having me back. >> this is an incremental move away from hedge funds, but now it is zero >> now it is zero. >> what prompted you to move completely to zero >> it was a two-step process the first step about 18 months ago, shortly after i was elected chair, we went from 10 to 3% and that process, we really followed the guiding -- we basically followed the guiding light of groucho marcks, you know, the hedge funds you want to be in are the ones that don't want you we had 65 open funds, we terminated all but one of them and we had a bunch of closed funds and we kept almost all of them and it was really all based on performance. and as i mentioned to you in the past, the performance of the portfolio really, really good. so, now we've got a smaller

portfolio, right, heading into last weak. 17 names and we've sort of looked at it and not all of they will, but most of them are really equities sp so if you're a stock picker, we have a back for you called our equity book. that's where we're putting them. and the best thing about it, from a benchmarking standpoint, instead of this hri nonsense, which is an average of hedge funds, if you invest in equities, we'll hold you accountable to the indexes that you invest in. >> so are you staying in hedge funds and altering your pricing based on their performance relative to an underlying benchmark? is that what you're saying or you're just saying you're out completely into your own equities >> what we found over the last 18 months is we don't like this hedge fund category, but inside of that category, there are some really great managers. who are adding a lot of value and we have aligned interest with they make a lot of money and we make a lot of alpha, okay.

those guys, we're not getting rid of, we're moving them to our equity book. not everyone is going to stay. i don't know what it's going to come down to, 10 to 12 names, but that's the idea. >> really, you do have hedge fund exposure, you put it in a different -- it's part of your equity exposure overall. >> we will have a few equity managers that are these hi high-fee -- >> who are the last guys standing in that book? >> the guys we've talked about in the past. >> yeah. what will it take for you to move more money in >> to move more money into hedge funds? do you think that the days of illinois having a hedge fund bucket are over? >> no -- i really don't. i think what's going to happen is, i do think that the industry is going to restructure and that there's going to be sort of lower fees and proper benchmarks where, instead of getting 20% carry-on total returns, 20% -- the other thing, though, that i did want to bring up, we spend a

lot of time here beating up these equity guys, and they kind of deserve it. >> sure. >> the other side of the hedge fund industry, i'll take the equity guys every day of the week over these absolutely return guys, who historically were reaching for 10 to 12% returns. they've been get zooeeros we've got absolutely return of zero for over the past five years. zpr we're up against the clark ma r marc, but good to see you. marc levine, thank you right away, it was a success. i mean, it really took off. what people don't know is that it all started with points from my chase ink card. i bought the ingredients, utensils, even custom donut cutters. wow! all with 80,000 points. what will you create with your points? learn more about the ink business preferred card.

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>> alibaba final trade. >> erin? >> xrt >> i'm a buyer >> e.? >> i'm melissa lee thanks for watching. see you back here tomorrow at 5:00 for more "fast money. in the meantime, "mad money" with jim cramer starts right now. "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 make you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. does anyone mind if we give some top notch ceos the benefit of the doubt in