big earnings i'm amazed by lululemon's numbers. >> lulu is amazing i'm not going back on my call. athleisure as a total category probably peaked but the brand -- >> it will shake out to four major players. that does it for "closing bell" everybody, "fast money" starts right now. >> welcome to the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," are we on the brink of a global banking crisis shares of one of europe's biggest banks, deutsche bank, are in freefall and the company put out a statement that is reminding some of the dark days of the financial crisis. we'll explain what that's about. >> plus a crypto hedge fund fighting back and dan morehead says there is one thing to save bitcoin and it could happen soon he will be here to explain.

first, we start off with what rocked the market today, the trade wars hitting a fevered pitch. let's get to aeamon javers for more. >> reporter: wilbur ross told the world that the united states was moving forward with those steel and aluminum tariffs on mexico, canada and the eu. shortly after that wilbur ross jumped on cnbc to explain the decision and minimize the consequences really for the global economy here's what he said. >> even if some others do, it still will remain unlikely to be as much as 1% on our economy remember, just because they put tariffs on some of our products, it doesn't mean those sales will go to zero. >> reporter: so wilbur ross saying even if the eu were to retaliate, it wouldn't be that big of a deal relative to the overall size of the u.s.

economy. we did get some word from the eu, canada and mexico, all of which were announcing moves of their own in retaliation justin trudeau, the prime minister of canada, reacting almost indignantly this afternoon. here's what he said. >> the fact that the united states is invoking national security measures against canada, against its closest allies, friends and partners in the world, including nato and norad partners, means that this is perhaps more significant than the administration realizes and emphasize we will certainly hope to emphasize that by the seriousness with which we take these measures. >> so trudeau saying that canada takes this very seriously, taking a little umbrage at the idea that this was done on national security grounds. i think, melissa, what the u.s. administration would say in response to that is that they

feel it is important to have viable domestic steel and aluminum industries here inside this country in case of any kind ofnational security emergency, a global war, something like that these industries they feel are absolutely vital for national security they also feel, though, that these things can be useful politically in terms of the negotiations over nafta. all of that in the mix as well here as the u.s.' approach to china. so a lot of different pieces and moving parts, but the u.s. saying this is simply about national securitytoday on this one. >> is it a foregone conclusion that these retaliatory tariffs will go into effect? the ones announced for canada are a 15-day comment period or could this nudge them back to the negotiating table. >> i think you heard wilbur ross saying he hoped that this would produce more negotiations between the united states and canada maybe once tempers cool and everybody has an opportunity to go home and sleep it off, you

might get more negotiating rounds coming in the future. but tempers were a little bit hot today as the reaction unfolded to this wilbur ross suggesting, though, he wanted ultimately more negotiations between the united states, canada, mexico and the eu >> all right, eamon, thank you so it looks like we're back in trade war purgatory it is the place where contrasting statements from various officials moved the markets a couple hundred points easily rallies are snuffed out, sell-offs end in a maddening grind of fear. the dow sinking 300 points at the lows of the day as trade tensions escalate and investors run for cover. is there more pain ahead for stocks, guy? >> i don't think so. i don't think there's necessarily more pain ahead for stocks teddy roosevelt was president -- >> you voted for him. >> i did, my first time. >> he couldn't remember. >> i wore the button, the whole

thing. his slogan was speak softly and carry a big stick. now we speak very loudly and i'm not sure what kind of stick -- what my point is, i think the president leads with a crescendo and walks everything back. i think the market is starting to catch wind of that. i'm not sure that today's downdraft in the market was because of this. i think sell-offs for caterpillar and boeing if it's solely on the back of this absolutely need to be bought. >> also a lot of old school industrial machinery companies really saw the impact. >> they see the impact you know, markets hate uncertainty more than a trade war. but maybe now we have both so it's really hard to plan for things that use big industrial products when you really don't know what the tariff situation is going to be that's really unfortunate. i get why they're doing this because they think trade is unfair what i don't get is the methodology and to throw uncertainty like they do and

then walk it back. eventually they'll just be crying wolf, i think, right? maybe we're there already, i'm not even sure. it's unfortunate we have to rely on others to be more measured. trudeau definitely giving us a chance to, all right, do the right thing. i think we'll ultimately get there, but i mean a day like that, it was an awful day for me i'm happy to own puts. i do think that there is more volatility to come i'm actually surprised the market wasn't off more. >> karen is talking about the uncertainty. how about the fact the volatility hardly moved. the fact we closed at 1540 two days ago we were over 17, closed at 17, and here we are in the 15s. i find that very, very interesting and probably a read-through to what you're talking about, guy, which is, hey look, there's some sells down 200 on tuesday, go up wednesday, today down once again. this time the volatility didn't follow along so i find that interesting. i think there were opportunities in the marketplace today

not necessarily in some of the industrial names but there were other spots in the market where things were getting sold off and i think it's still a stock picker's market, no doubt. >> i'm more in the guy camp, i think everybody's camp here. this is part of the negotiating tactics. to the extent they're successful or not, we don't know yet. so far these type of negotiating tactics have worked for this administration so you have to temper a little bit of the fear today with the fact that maybe this does get walked back. so i looked at stuff like ksu, kansas city southern, they transport all the cars from mexico into the u.s. so that's kind of the epicenter of what would be going on here decent support, it was down $3 or so today. i wouldn't get too scared on this and i would look to that name to buy. >> and maybe that's why the volatility ended up where it was. the fact that it's been walked back we've seen this time and time again. >> it's the trade war dip kind of market. >> i think there are opportunities out there. the market seems to overreact to

every one of these different news stories that we get and we get one almost every day but at least every week we've got something. one week it's china, the next it's north korea, somewhere in italy, but there's always a news story moving the markets. >> it's interesting that brian brings up ksu. when the president got elected is when it troughed and we had a whole conversation how this stock is way too cheap valuation. they will back off this wall thing. they haven't necessarily backed off the wall thing but some of the rhetoric in terms of mexico has gone away. now you have a stock that's north of a hundred bucks i still think it's relatively cheap. the sell-off today on ksu was on the back of this and misguided in my opinion. >> other names you would look at and say i'm going to buy the trade war dip because i think it's going to be walked back >> well, just one more thing before that. we haven't seen the eu response yet, right so i think there's a little more to go on this trade war dip.

ultimately, yeah, i think there are things to buy. for me boeing was too expensive going into it so that's probably not a name i would chase. >> in terms of the old industrial companies -- >> like a uri which is u.s. centric, almost entirely u.s. centric. that would probably be a name i would go to. >> consumer staple stocks getting crushed as the sector gets stuck in the crosshairs of this trade war but our next guest is rob slimer to find out why. >> so it's been a terrible sector, down about 17% here and it's come right back to the 200 and it takes you back into the trade range you had in 2014, 2015 so it's getting into a support level. we took a contrarian view and said what in the market may offer some opportunities take a look at this relative performance versus the s&p 500 it peaked beginning in 2016 when the equity market took off in its rally. we're two and a half in a market

cycle. the market generally moves in four-year cycles two and a half years into it you've got to start looking at them saying the relative performance takes you all the way back to 2007 you're back to some support levels it's still early but we think it's time to look at a few names. so we start with church and dwight, a growth manager stock it bounced here, it bounced here relative strength is absolutely weak but we're starting to see some signs of a turn so for a growth manager longer term, i think you're back to a support level and it's very contrarian then we look at clorox again, back to the lows that we saw in 2014-15 back to the 200 week very oversold. it isn't a sign of a hook yet but i think we're getting close. being a price support i think there's a mean reversion trade it looks very interesting and an interesting place to diverse if the back side of '18 and '19

and then conagra, relative performance is weak but we're starting to see very early indications it's start to turn and put a bottom in. there's three names. we think as we move through 2018 into '19 as the market puts in a longer term cycle peak, these are interesting names to take a look at. >> should we invite rob back over to the desk. >> no. i mean yes >> brian will bring the chair in thank you. >> joking around. >> i know. >> it didn't feel like these are pound the table sort of buys, rob. is it just to diversify? >> i think it is the market cycle bottomed in 2016 everything went up all the global growth cyclicals. staples were left behind they were apparently very expensive. now they retraced all those relative gains on a relative basis they start to get very interesting. are they the best trades right here today, no, i think there's

other things in the market that look more interesting or in other markets, for example, but i think when you start looking at what's potentially going to happen as we move through '18 into '19, i think these names are at support levels, they're very contrarian. not a lot of ownership there i like the names down at these levels. >> when you say relative, are you bullish on the market then >> on the equity market? >> yeah. because relative to the market you're saying? would you short the market against them, be long? >> i would be long these stocks. >> no, short the market. if you're saying relative to the market these are better than the market >> through '18 and into '19, yes. i think they're going to outperform. >> out perform the broader market. >> yes we think the market is moving through a broader cycle peak, which i think is developing in the next eight to ten months and i think you want to own these names. >> do you own some of these names? >> so my question. i'm not sure to me xlp looks like a failed

breakout over the last month so i'm talking let's shorten it up. we've had this range yesterday looks like a breakout, completely failed today and it's breaking lower. >> it did. >> so that's what scares me about this what are you seeing that would tell you that's going to be another false breakout or breakdown. >> when you think of these as intermediate moves, one to two quarters, you've already declined for a full quarter through january, february, march, april, into the lows we saw a couple of weeks ago. if you put that on an intermediate or weekly momentum indicator, deeply oversold as we've gone through the market sector after sector has been putting in a bottom. i know there's a huge debate about whether the market is topping, but to me it's a progression of lows developing i think the staples are one of the last sectors to bottom. >> rob, thank you. any staples interest you, guy? >> yes rob talked about staples go back and look at procter &

gamb gamble, 1999 went from $50 down to $23, bottomed out just as the market bottomed out, reversed, went higher '08, '09, stock went from 75 to 50, bottomed out in march just when the market turned now look at procter & gamble turned from 93 down to current levels if he's right and these staples are about to turn, that's very good for the broader market. just use procter & gamble as your proxy with an x. >> pete, any of these staples name >> the one name that stands out is clorox. it was a $150 stock and now it's $120 stock it has to make sense on top of all of that. there was some growth. when i look at the valuation, it was stretched and now it doesn't seem so much. coming up, general motors revving up having its best day ever after a big investment firm announced an investment in gm. it could mean trouble for one other auto stock, we'll explain. plus, it's been hard for

bitcoin ballers, but dan morehead who made a fortune betting on crypto will tell us the one thing that could save crypto hedge funds. gene munster says the meeting was a circus and facebook is dead money he will explain why. we're live fm rothe nasdaq in new york's times square. much more "fast" after this. it took a whole lot more. that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. and that 2% cash back adds up to thousands of dollars each year... so i can keep growing my business in big leaps! what's in your wallet?

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welcome back to "fast

money. shares of gm soaring nearly 13% for its best day ever. phil lebeau is in l.a. with the story. hey, phil. >> reporter: melissa, this was a big day for investors in two of the big three automakers let's start first with general motors announcing this morning that softbank is investing $2.2 billion in the gm subsidiary cruise holdings. gm cruise will be a 19.6% stake softbank owns. they are planning on commercialization by 2019. so why is this deal sparking a rally in gm shares they have a valuation now on the gm cruise piece of the gm portfolio, the autonomous vehicle portfolio. as a result, they believe the stock could go as high as $47 a share. also a big day if you're an investor in fiat chrysler. shares moving higher after the company announced it has formed or expanded its partnership with waymo, formerly the google

self-driving car project up to 62,000 more chrysler hybrid minivans that will be part of the autonomous drive fleet for waymo. they're going to start their autonomous ride share program a little later this year and that's why shares are moving higher today and finally, what's the story with ford? it moves lower while both fiat chrysler and general motors moved substantially higher why? one reason is the perception amongst investors that ford is just not at the same level of progress in terms of autonomous vehicles as general motors, nor does it have a partnership with a leader like waymo, so as a result when people look at ford, even though they are investing heavily in mobility, they are not seeing the level of excitement and perhaps a path to profitability when it comes to mobility that they think they see with both general motors and fiat chrysler. >> phil, we also saw tesla trade lower by about 2.5% a session.

is that related to this, do you think, or is it just idiosyncratic to tesla >> reporter: no, i think it's idiosyncratic. i think that's a stock that moves for a variety of reasons, up 2%, down 2%, any yuf reasonu reasons. it could be people involved in crashes in tesla vehicles, even though we've seen no additional investigations it's one of those stocks, melissa, we see this on a regular basis, up 2, down 2, not a surprise. >> phil, thank you phil lebeau joining us from los angeles this evening there are so many different ways to tackle this, but i'm curious about the waymo, what it do in the waymo valuation. >> let's start with gm because that moved the most dramatically i thought it was a bit of an overreaction by gm just on this news i think there's a billion four shares outstanding and it was up five bucks the news of this $2.2 billion

investment i think that seemed like an overreaction what i think part of it was is that the markets sort of focused on gm now. this stock was ridiculously cheap and never should have been where it was trading yesterday and today i think it was just sort of an overreaction. so the p.e. went from 6 to 6.7 or there i think that's still cheap i'm glad to see the focus on gm and they're very aggressive about the changes coming. >> now we can quantify what it really is worth, the 19% stake and $2.2 billion what is it really? everybody can say what they think the value is now we have a better sense of it because it's in the open market. they have the international piece ford can't compete the same way and they have the trucks that can go right after the ford truck so a lot of reasons why -- i did not sell out i own the stock, i own the calls. i think it goes higher from here i don't agree that it was an

overreaction i think it's been undervalued so long. >> i think the $5 move on $2.2 billion was too much but 42 or 43 is not too high. >> there's an interesting point made by tesla in an article that i read i believe in "the wall street journal." the amount softbank has said it will investment in gm cruise is pa barely enough to cover tesla's long-term obligations due in 2018 alone >> so you say tesla is really behind the eight ball in terms of their balance sheet. >> right. >> which has been the knock on the stock for a long time. tim seymour makes one of those many points and right now he looks like he might be correct going back to gm quickly, think about this gm is still after today's move cheaper than ford. ford traded 1.5 times to normal volume, close to unchanged what the market is telling you is gm deserves a bigger multiple than ford does and i think it will continue to trade its way into it. what does that mean? it's got to go north of 45 for

it to break out. >> i'm not buying good m on this news because i'm like okay, what's next? coming up, deutsche bank getting slammed and has some traders recalling the dark days of 2008. we've got the details. i'm melissa lee. you're watching "fast money on cnbc here's what else is coming up. >> $550 billion. with today's rally that's how much facebook is worth but tech guru gene munster says the stock is dead money. he'll break it down. plus, bitcoin has had a brutal month, but a top hedge fund manager who made a fortune e meing on crypto says now is thti to buy, and he'll explain why when "fast money" returns. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms...again. and online equity trades are only $4.95... i mean you can't have low cost and be full service.

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down back at headquarters. >> that's right, melissa it was a rough start to the year for cryptocurrency focused hedge funds. even though they started turning things around in april, it's unclear whether they can capture the extraordinary returns of last year. according to hfr which compiles a cryptocurrency index, the weighted performance was down each of the first three months of 2018. in march the strategy declined about 34%. in april, things came roaring back the index surged a whopping 49%. its best monthly performance since december while that helped to dent some of the losses for the year, the index is still down about 17.5%. compare that with gains of 2,907% last year the recent losses seem to have hampered the number of crypto fund losses this year. five new funds were launched so far, meaning 2018 is on pace for

about eight new launches compare that to 45 launches in 2017 according to a recent report by bloomberg, at least nine crypto currency hedge funds shuttered in the first quarter of 2018 still, data from autonomous next found that there are still more than 250 crypto funds with as much as $5 billion worth of assets under management. so those who have survived still believe that skillful trading and diversification among the more than 1,500 cryptocurrencies can help them eke out returns. >> leslie, thank you very much for more let's bring in dan morehead, who runs pentara capital which made a fortune off of bitcoin but the hedge fund saw the darker side of the trend as well. dan, welcome back to the show. so where do we stand right now a lot of people are point to institutional investors entering the space as the next big

catalyst has that come? have there been enough solutions when it comes to custodial problems and the willingness of institutions to invest this way? >> i think there's an image that there's an on/off switch it's off now and they'll flick it and institutions will pile in we've had institutional investors since 2013 and it's a process. obviously risk and reward go together a couple of years ago there was a lot of risk but there was a lot of reward. we have yet to get to the point where we have an s.e.c. custodian, but institutions are buying the rumor and selling the fact getting invested now so that in three, four, five months when the institutional quality regulated custodians that we're hearing about come on line, they'll already have their positions. >> where do you see the value here in terms of the price level? >> in our view, all cryptocurrencies are very cheap

right now. they're down 65% from their highs. at the highs, everybody wanted to get invested. >> at the highs, were they too expensive? >> yeah. obviously in hindsight right now they're still down about 65%. much cheaper to buy now and participate in the rally as it goes and there is a good technical indicator that we look at. when the currency breaks through its 200-day moving average, if you buy that day and sell a year later, you make an average of 239% >> once the currency breaks its 200-day moving average, you buy. >> this is on bitcoin. it's happened about five times in the past six years. once it hits that, if you buy it and sell it without even thinking a year later, you make 239% i think that's the essence of this trade it rarely ever gets cheap to its long-term average so today is a good day to be buying. >> how many coins do you own overall and what's your favorite coin in terms of return from

this point to a year from now. >> we own about 35 preoption icos and 25 of the liquid blockchains like xrp and bitcoin. we're always trading those around because there's great opportunities. our fund is actually up even though bitcoin is down since december, so you can buy any one of the currencies when it's going up when other things are going down the most exciting thing in the space is august er it's going live on july 9th and that will be the first big thing working on top of a theorem. >> dan, i want to ask you a little about auger because we saw this crypto kitties, that broke etherium how is auger going to work on top of that if it can't scale? >> i guess i would say it didn't break etherium but i think all those projects are great to show what can

happen obviously they do need a scale all those blockchains do 5 to 10 transactions a second and need to get to hundreds or thousands and auger will prompt that to begin happening. it's not going to be great for initially day trading super active things, it's going to be better for making bets on things like sports events or things that happen a few days hence it's not like day trading apple stock. >> has legalization of sports gambling changed your view on auger? is there a place now that the supreme court has ruled that you can have legal sports gambling >> sure. there's another exciting project, fun fair, the first online legal gambling site that's been launched there again i think is another exciting opportunity to see people using cryptocurrencies to do something, beyond crypto kitty which was a cute little concept. >> do you have a crypto kitty? >> i don't

>> dan, it's always good to see you. dan morehead of pantera capital. do you like auger? >> yeah, i do. i love the project we've been waiting a little while for that to come on. i think these projects will force the scaling. if somebody really wants to use auger and use it that well and it's too slow, that will put pressure, as much pressure as you can on scaling this project and to me, there are going to be two themes, scaling and improbability. >> so does your crypto kitty work properly on etherium? >> i didn't get it a hundred grand for a digital cat is a lot. >> if you can't get enough crypto, head to cnbc.com we've got all the latest developments in the space. still ahead, deutsche stank.

now down 40% this year traders are betting on even more pain for this stock. we will break it down. plus facebook within 2% of its all-time high but gene munster says the social stock is dead money he will explain why and tell us which other soci sckalto to buy right now. much more "fast money" right after this welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com

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we got a news alert on cbs eric has the details. >> national amusements just put

out a statement based on the cbs shareholder class action lawsuit that we found out about about an hour ago in this statement national amusement says that they are confident the court will uphold nai's action and that action was to exercise their legal right to amend cbs' by laws as you can see it on the screen they also said that the efforts of the cbs directors to unilaterally dilute the voting rights of its controlling shareholder are extraordinary, unjustified and unlawful back to you, melissa. >> all right, eric, thank you. what happens if viacom can't merge with cbs what happens to viacom >> that's a great question look, viacom has been cheap and it gets cheaper, that's not a good thing i think what happens to viacom, it will get even cheaper still but the question is cbs. tom rogers was just here the same week. >> two times. >> he said cbs is way too cheap. at eight and a half times forward earnings, despite all this noise, and most of it is noise, i think it's too cheap.

i think you buy cbs on valuation and viacom, you have to be a believer, which i have been, but been wrong all along. >> switching gears, deutsche bank getting kicked while it's down falling 4% on a report that the fed added them to its problem list shares down more than 40% in 2018 shedding $17 billion in market cap that prompting this response as a matter of policy, we do not comment on specific regulatory feedback the ultimate parent of the deutsche bank group, deutsche bank ag is very capitalized and has significant liquidity reserves, end quote. sound familiar let's bring in wilfred frost who covers the banks better than most welcome back to "fast money. >> thank you, it's great to be back here. >> that was the sprockets music, by the way. >> oh, really? >> i digress.

>> the share prices you went through, some of those negative returns for them, it was an all-time ever low today as well. i think part of the problem with this development from the fed today is that people don't really know that much about exactly what it meant. randy quarrels said as much, this is an internal thing and is fairly subject i've aive and we comment and i think in a week where people are questioning systemic banks anyway led to the decline. people who argue the share price fell too much would point to the fact that ionly relating to the u.s. entity. it is only 10% of total assets for deutsche bank and it's been in place, this title, this label of being questionable, in troubled condition has been happening incrementally. all in all, this is a bank that's trying to successfully pull back its investment banking and as a low-cost possible way

and these headlines make it very, very tricky so people are riding down the value. >> the new ceo has already said that he is committed to the u.s. business that it remains an important part of deutsche bank, so there's no point at which deutsche bank could say this is a troubled area, we're going to ditch this business altogether i think what really gets investors is the fdic that deems the u.s. business as financially potentially not viable, which means they could lose their fdic insurance, which would be a whole world of hurt for deutsche bank in the u.s. >> it's really very complicated this internal process. although it's head lined by the fdic, it stems from the fed ultimately you have seven different categories that they rank them on for this internal ranking but they're committed to the u.s. business but they're making cuts here. they want to withdraw from some areas. i think part of the process is can they sell parts of it before they have to remove it and this

makes it much harder to do that in a profitable way. we talk about the u.s. business in terms of returns versus assets just looking now at what their market cap is, it's around $23 billion. it's so small relative to their global rival its like jm morgan at $350 billion. they have a big share in some investment business. they had 9% global market share last year so there's still quite a lot to compete for but they're clipping in other areas and i think it makes it harder to hold to the bits of business they still have. >> you talk about the u.s. business, but there must be some concern that big troubles at the u.s. business would not be isolated only to the u.s. business, but that there must be some cross collateralization in the bank do you know how contained in iproble - any problems would be? >> clearly things can get contagious if it spreads, but i don't think we're saying incrementally there's more problem here

we're saying this label was placed on them a year ago and they have probably been dealing with it but can't comment. they have plenty of capital and plenty of liquidity. this remains a monstrous profitability issue for the bank if they are pulling back the investment bank, which is half or so of their eps, can they make profits and boost returns this week in italy, does that push back the prospect of rate hikes and the interest rate market in their calls is not attractive it's when is this bank doeg goio return to serious profitability. the factors that the fed looks at to reach this label for deutsche bank includes things like asset quality, management capability, capital adequacy, things like that it focuses in "the wall street journal" write-up on the capital

adequacy. >> we look at deutsche bank and a lot of us remember 2008. what can happen when a big bank, relatively big bank, can have problems we think the worst but you look at the eufn and it was down half a percent. how could we even -- we should not utter the words "systemic risk" and "deutsche bank" in the same sentence, should we >> it's not so much the u.s. business but it's what guy has talked about over a year now it's their derivative book it's the largest in the world. and that's netted out and we know that when there is problems, that those derivatives get bigger, get larger, right? so the problem that deutsche bank at least from my view has is that, number one, their core business in the eu there's a lot of volatility there. they're also a big lender toe mer -- to emerging markets.

there's a lot of volatility with the derivatives book. >> i think pete bought a european bank but specifically deutsche bank, it doesn't seem like anything is systemic. the markets suggest it's deutsche bank specific i obviously don't know anything about deutsche bank's derivatives book but if it is set up to be short volatility, the longer it goes higher, the worse this is going to do. they could be as profitable as they want, this has everything to do with their derivatives book. >> the derivatives book is the one part that's still very attractive that i think other investment banks, if it's plausible to chop up parts of it, would like to try and pick up because it still drives a huge amount of volume and market share for them in terms of systemic risk, italy was the issue this week. if you look at european banks week to date, they have recovered far less than u.s. banks. so people are saying it doesn't

affect u.s. banks so much. european banks are still a question mark. more pain ahead for troubled deutsche bank. mike, what did you see >> we saw ten times the average daily put volume today most of that activity was concentrated in the august 7 puts over 11,000 traded, including a block of 10,000 purchased for 14 cents. so that seems to be a disaster protection, betting that it could go down as much as almost 40% believe it or not in less than 80 days >> all right, mike, thanks for that for more options action check out the full show tomorrow 5:30 p.m. eastern time. still ahead, three big retailers on the move. costco, ulta moving lower while lulu hits a new high the traders will tell you whether they're trading or fading these names. plus facebook's annual meeting taking place today josh lipton is there

josh. >> reporter: that's right, melissa. mark zuckerberg was there today fielding questions from shareholders about rge o aanf topics what did he have to say? we'll recap it for you when "fast money" returns well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. with a $500,000 life insurance policy.

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welcome back to "fast money. facebook rallying 2% today as they held their annual shareholder meeting. josh lipton is there in menlo park, california hi, josh. >> reporter: melissa, the vote

today going as planned all eight facebook directors were elected so that includes mark zuckerberg, sheryl sandberg, peter thiel and reid hastin hastings they got a new director. there was aboard seat recently vacated. all six stockholder proposals were rejected as the board recommended, that included a proposal making one share equal to one vote. of course we remember this is a company controlled by its founder, mark zuckerberg he reminded his investors about the big investments the company is making in a.i. and security really reiterating a lot of the things he talked about before congress and eu lawmakers. he also talked about the company positioning itself for the future and why that's important. take a listen. >> we also have a responsibility to keep building new ways for people to connect in new meaningful ways. that's people rely on us for and

why they come to our services and unique value that we provide, so we need to keep doing that too. >> melissa, back to you. >> for more on facebook, let's bring in gene munster. gene, good to have you with us i'm not sure what you made of the facebook shareholder meeting. i do want to get straight to your take on the stock, though where do you stand on it >> well, i think that this is going to be underwhelming. i think this stock really isn't going to go much anywhere. the biggest reason is the engagement piece, melissa. in the last earnings call, their cfo talked about these new changes to features in privacy going on in europe and that means for the first time that the number of people who are using facebook in europe will go down sequentially. so as they roll those tools out across the globe, that will have an impact on engagement. and something else just to riff off of josh's clip at the end there, when zuckerberg talks, this also impacts engagement and

is negative for the story. when zuckerberg talks about meaningful interactions on facebook, what he's saying is that passive content consumption is something they want to move away from. that's the majority of how people use facebook today. they want to move more towards groups and more things that satisfy people, but that also has an impact on engagement. so the bottom line, i think this engagement story will be a little choppy over the next few quarters. >> is that going to be a hard sell to advertisers? are they trained to think of their ads reaching a very engaged audience versus an audience of x size, whether very engaged or passive >> well, they still will have a huge, massive audience i just want to give you one example of the size and the use of this platform, which is staggering there's 100 billion messages sent every day on messenger and whatsapp that's 13 messages a day for each person in the world advertisers love that kind of

reach. but on the margin if that reach is declining slightly, that's negative for growth. >> there's an article in the journal today, gene, saying that gdpr would be at least a short-term boost for the larger platforms like a google, like a facebook do you buy into that or do you just think it's so short-lived that facebook will still be dead money? i don't want to put words in your mouth, but you said the stock is going to go nowhere in the longer run. >> no, that's the words i would use, it's dead money we go back to what their cfo said despite what the journal is talking about, if they're warning investors about the impact of gdrp and the new privacy features on engagement, i think it's something that investors should yield that cautionary commentary. >> gene, we've got to leave it there. thanks so much, gene munster. >> thank you. >> check out some of the other social butterflies snap rallying 4%, twitter up 1%.

so we thought we'd play a little game of social climbers. >> i love this game. >> if you had to put something into one of these names in the next six months, which one would you buy. >> out of those three? >> yes. >> so it's a social climber. >> so you answer first and then give the reasons why. >> yes. >> okay. just making sure i know the rules. twitter would be my answer so climb the twitter mobile. i'll say this, look at what the stock did since the disney agreement the end of april it went from 29 to current levels now your in partnership with disney in any capacity. i think that's extraordinarily bullish. i think they finally figured it out. i would be long twitter for the next -- how long did you say >> six months. >> six months. >> well, you know what, i'm with guy on the twitter i'll give you two reasons that are different than guy's number one, the big picture. every single day the president of the united states implicitly shows the world how good your product is by using it every single day that can't hurt your company

in the short term the fifa world cup, the football, not the kind that he plays, the kind with the round ball, that is coming up. twir is great for live sports events >> pete. >> for me it's actually facebook twitter i sold yesterday facebook i sold today. but for six months, i think 50% ad growth in facebook, this thing is still growing. >> agree facebook, the valuation alone is so much better than the other ones and facebook has a history of giving cautionary, you know, cautionary comments about all kinds of things. that's what they do. they like to tone down expectations coming up, check out some of the big after hours movers, cost costco, lulu, ulta we'll bring you the latest right after this two, down, back up!

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that's why xfinity mobile can be included with xfinity internet which could save you $400 or more a year. it's a new kind of network designed to save you money. click, call, or visit a store today. welcome back we've got an earnings whip check out the after hours retail movers lulu hitting a new high. let's start with trade it or fade it. let's start with costco. >> i'd be trading it i like what their numbers are and they're down 2%. >> ulta, karen, trade it or fade it >> i'd fade it when you have a big high-flying p.e. multiple and they're going to miss in the future. it has to come down a little but fade it in the short term. >> lulu, guy. >> trade it. pete and i wear the underwear, not at the same time very important for the men's

brand. trade it. thght really is upsetting. i out we were talking stocks. >> up next, final trades welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early

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buy mexico >> that's the theme. >> i'm long the wall no, i'm kidding. you see what i did there >> i'm melissa lee thanks for watching. see tomorrow "mad money" 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 then you find it "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer when it comes to trade wars, you need to understand that there's not just two economies, there's now three.