next week. >> i don't know anything about bacon prices but i really love bacon, i know that >> it's a pleasure, guys, as always have a great weekend thank you for joining us huge week coming up. so everybody get your rest that does it for "the closing bell." thanks for tuning in "ma fast money starts now. >> live from the nascar market site, i'm melissa lee. our traders on the desk. tonight on "fast," home builders suddenly hot again, up 7% from the lows last month and it could lead to a major breakout for one dow stock. we've got the details. speaking of breakouts, check out twitter, soaring to its highest level in more than three years traders say there's a different social stock you should be buying now plus, just moments away from president trump's meeting with c canadian prime minister justin trudeau. that's a live shot right there of the beautiful scenery we'll bring you the very latest. first, we've got to start off

with the markets shaking off trade tensionings. the dow posting its best week in three months up 3%. this with three key events next week tonight, your mission, should you choose to accept it. continue to buy stocks in the face of the north korea summit, the at&t and time warner decision or the one-two punch of the fed and ecb meetings >> you've got to be cautious the reality is in this market, yes, you do that here it is, so if president trump goes to singapore on tuesday and walks away within 24 hours with no deal, the market shrugs it off. if by some miracle he pulls a rabbit out of the hat and they walk out of there arm in harm, s&p is going to be up 100 handle so i think the risk continues to be the upside. that's just the way the market has traded for the last month and a half. >> that is one event though. we've got so many. >> to me, that's the big event. >> the fed meeting, the probability is 100% they're going to raise rates

that's already there >> yes, but the statement. >> it's a statement. >> we don't know if it's hawkish, dovish. >> i think people are looking at them raising and leaning dovish. ecb i think is the wild card north korea, the guy's point, i think he's in a no lose situation with north korea with the g-7, we've already taken it in the market already so i think that's behind us. >> so risk to the outside as well. >> the market rallied into all of these events we're talking about. the only -- the only question is if they do a sell the news event, which i think that could be mitigated i don't know what you guys are talking about. why is north korea big news? >> anybody who think there's something that's going to get done here i think is -- >> but the market sold off -- >> -- in fantasy land -- >> what? >> the market hasn't been selling off on anything. >> that's my point the market sold off. on may 25th, he canceled the meet, the markets sold off >> how about a split screen? i mean, i got to work with this.

bottom line is, steve, i take -- >> see the luxury of -- >> the periphery, i'm looking at things all over. look, bottom line, i think trade tensions, i think issues with china are a big deal i think ultimately the global trade dynamics which have, if you listen to these beige book surveys and listen to regional isms, people are concerned about trade issues trade issues have been the biggest impediment the top of the range, why do we need to go through higher -- it's a major risk. let's not forget about italy >> so the risk is to the downside in your view? >> that's what i'm saying. >> one thing, the time warner deal, what happens to sentiment in general that's a major catalyst in my opinion. everything else aside for the moment. >> you think that happens? >> i think it gets done. beyond it, because you look at what president trump has done with amazon for instance based

on the fact that jeff bezo, they own the "washington post." >> what is the at&t have to do with amazon? >> if the government loses this case, i think they will have egg on their face to the point that i do not think they would actually press any other nonsense -- >> is this the government that -- >> no, no, 100% -- >> i think you have to look at it -- >> why don't they go harder? >> absolutely not. if they have egg on their face, they will back off for a period of time. that narrative they could be going after amazon for whatever reason, i think it comes off the table, positive. >> president trump is meeting with canadian prime minister justin trudeau right now let's listen in. >> -- for folks on both sides of the border we both got elected on a commitment to grow the middle class and help those working hard to join it and that's exactly the kinds of things we're going to stay focused on pleasure to have you here. >> it's been really great.

justin has agreed to cut all tariffs, all trade barriers, between canada and the united states so i'm very happy about that >> nafta's in good shape. >> we are actually working on it we are actually working on it. our relationship is very good. we are actually working on cutting tariffs and making it all very fair for both countries. and we've made a lot of progress today. we'll see how it all works out we've made a lot of progress it could be that nafta will be a different form it could be with canada, with mexico one on one much simpler agreement much easier to do. i think better for both countries. we're talking about that among other things but the relationship is probably better, as good or better as it's ever been and i think we'll get to something very beneficial to canada and to the united states. >> excellent >> thank you very much we didn't discuss it >> when you come to an agreement

on a joint statement -- >> we'll see you -- >> i think we'll have a joint statement. >> -- leaving earlier -- >> and that was president trump and canadian prime minister justin trudeau, all smile, and also talking about cutting tariffs to the benefit of the united states as well as canada. let's go to kayla who has more in quebec for us. >> in having that conversation in a very congenial manner with many laughs. despite the fact that the tone between the two countries took a turn around the end of may when a nafta deal failed to materialize and after that, the president put those steel and aluminum tariffs in place. they said they were going to be discussing both of those things. the president repeating a familiar refrain that he's trying to get a better deal but potentially that he could be doing a separate deal with canada and a separate deal with mexico worth noting, canada's foreign

minister held a press conference just before this bilateral, setting the stage for u.s. canada relations at this g summit she said she met with ambassador lighthouser here in canada beforehand that there is still a joint communique that is in the works. it is not finalized. but it is in the works and minister freeland saying that there is no place for russia in canada's view in the g-7, despite the fact that president trump made a surprise overture to russia, suggesting they rejoin the negotiating table after being expelled about four years ago we'll see whether these two very charismatic leaders together can work any substantive policy decisions during this bilateral meeting. it certainly seems like from a body language perspective and from a charisma perspective, they're starting off on a good foot. >> any word on the rescheduling of the meeting with french

president macron >> we are still waiting to see when that will be scheduled. both sides seem to be hedging for the potential that it won't happen the french putting out a tweet on president macron's official twitter page, showing the two leaders talking together the white house press secretary who is here in canada also putting out a statement saying that the two leaders had a brief pull-aside here in canada, and they talked about trade, they talked about north korea, they talked about some other issues, saying it was a cordial encounter. both sides already met we're waiting word on whether a longer expanded sit-down is going to happen. >> kayla, thank you. covering the g-7 summit for us this fits perfectly into our conversation because, steve, you mentioned the markets were going into this not expecting anything

could the risk be to the upside because something could actually come out of it, which was completely unexpected when all the headlines were crossing. >> i think the markets had sold off, worried about what was going to take place. now when you see softer lines. with nafta, trump was worried about sunset clause. that's what we heard from prime minister trudeau where he said that the sunset clause was what was the sticking point. very close to having an agreement on nafta market sold off on that. steel stocks moved on that and now everyone plays nicely in the sand box on this weekend, i do think that you'll probably get this lift to your point, lift sort of sideways to higher. so i agree the expectations aren't high. i just look at market positioning. outside of a couple of sectors what does this mean? steel prices let's go right there steel companies should be doing a lot better steel prices record highs certainly very clearly 10-year

highs. they were at 350 in 2015 steel companies are making more money in ebita positive right now. >> i'm not dismissing what tim said it's frontierland was my favorite, not fantasyland. you said steve and i were in fantasyland. you happen to be right, but the zit geist of this market -- >> you can be in frontierland, my friend, i don't really care. >> -- is that it shrugs off the negative news -- >> so there was upside coming out of g-7 which was largely unexpected. >> yes. >> you react to the upside >> i think the risk is to the upside i think the market will try to take out the previous high made whenever it was, in early december or january. >> i agree i think you have to look at even sectors that have caught a bit to them recently there's momentum to this tape. >> financials? >> financials, i mean, anything here that has any positive tone coming out of this i think will keep that momentum going. >> because we're a trading show, i want to make it clear, i am

not bearish on the world but i can tell you 2,800 on the s&p in this environment with the fed and ecb next week, the two biggest risks for the market, why do you think these things are going to go higher, i don't think so. >> social butterflies twitter and snap surging up today. but stuck in regulatory cross hairs again. are these the best way to get in on the social media? plus, home builders on a stealth rally up 7% from the recent lows it could lead to highs for one major dow component. let's play a little "jeopardy. this stock is down 35% in the last year. it is one of the highest yielding stocks in the s&p 500 and it is trading at 30% discount to its average analyst price target. >> i want to know. >> can you guess what it is? the answer, i should say the question, later this hour. >> i can't wait. >> live times square at the nasdaq. much more ahead.

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social butterflies spread their wings. take a look at the double digit gains from snap and twitter just this week. twitter higher on news of the stock joining the s&p 500 this week replacing monsantos which of the two is a better bet? this is a form of -- ways thhatt

game >> would you rather. >> i'm long both so i don't have to choose. twitter, longer term snap for me was a trade. i bought it below $11. it's popped. i'm big on replacement levels. i look at the $22 high let's go back to february. then the recent low, which is basically 10 1/2 and then i do some retracement levels i get a price of between 16 and 17 that's what i'm looking for near term in snap for a pop, maybe about $3 higher. twitter, i'm going to stay in. i believe they have a fundamental reason why they exist. >> what happened in twitter? >> it's ridiculous. >> beyond the s&p 500 -- >> it's crazy. look, you look at the val eyuats of this company. i know i get it wrong -- >> we all do. >> look at this company, on a revenue multiple for 2019, it's trading at two turns higher than facebook and facebook's drawing their ad revenue at roughly 28% versus twitter at i don't know,

12, 6, what have you it's totally mispriced here in my opinion if i buy one, i'd by snap for a trade. i'd avoid twitter at all costs they're not -- >> i think we would all acknowledge in tech land especially with some of these hot shot, you know, go-go stocks, you're not buying it on valuati valuation. i certainly have been wrong on that too you're not buying on valuation you're buying on actually delivering earnings in the last two quarters buying it on the sense -- >> so where's the growth >> we've seen the 5% -- >> hold on >> can you name that movie "night shift,". >> bottom line here. >> anyway. >> twitter is delivering in a way no one expected that they would and no one really cares as much about that -- >> what price -- >> -- say it was overpriced -- >> you guys are all talking at the same time, please, a little decorum. >> they're finally making money. there's a reason to buy them twitter was running before they were making money. now they're making money

it's going to be a beta chase at this point people looking for -- they actually look like the grown-ups in the room. when you compare them to snap where everyone thinks this is just a flyer. >> how about facebook? >> or? >> no, no, no. >> i'm still trying to play would you rather. >> i'll put it in the prism through which you want to look >> twitter. >> whether you like it or not, i've been a believer for a while, wrong on the way down but now we've been right on the way up at a centrtain point, i don't think it's going to happen i think it's going to continue to take the stairs higher. if you want me to play the game, which i love, twitter. >> wow. >> here's the other thing, people punished twitter when they punished facebook and frankly they got those facts wrong. if you look at what twitter's doing, that's not how they're handling their data. the growth is low single digits. that's better than they've been

doing in a long time that's the kind of growth -- >> when facebook gets that letter from the senate intelligence committee to show up and explain why they have a data sharing agreement, what happens to the stock >> look what happened recently we saw a pullback on that. we saw it quickly bought the fact is the ad buyers are the advertisers aren't pull back from the platform because it's a premier platform. they've got scale and the ability to distribute and they've been incredibly consistent on customizing that twitter, they're not growing their u.s. business. it's totally saturated they haven't grown their u.s. business japan's their second largest market that's an absolute infewuroewer infire fear yor -- >> i feel like facebook shouldn't be comparing the two names, now we're comparing future >> so what's the -- >> what happened when you have to -- >> wait, hang on one sec. >> -- to communicate with the

entire world and they can't grow their u.s. business? >> what happens when facebook, to melissa's point, what happens when you have to opt in, not opt out? now you have to opt in on using -- everyone says that all your information is on the web and we should have all known that, we were naive. when you have to opt in, then that behemoth of the ad sales revenue is going to come out and the helium is going to come out. >> i disagree. i think it takes a lot of time for that to transition. >> you don't have to wait. to tim's point, you don't have to wait -- >> why is it not on 2019 estimates -- >> i want to get something clear on twitter's numbers they grew second quarter, second quarter revenue's about 27%. international about 51%. >> it doesn't matter. >> they've absolutely grown. >> no, it doesn't, it doesn't matter you're looking for vehicles that they can grow the business into a multiple of what it is and that's not happening >> david mentioned this

president and twitter. there was a president in the 1930s into the early 1940s who did for radio what president trump is doing for twitter. >> did you vote for him? >> i did and look what happened to radio. just putting it out there. >> fireside chats. >> you know what else broke out this week? >> my face >> stock surging 9% this week. in two months, the stock getting a big upgrade. do you buy here? >> yes again, we're talking about tesla. it held that 280 level it had a spate of bad news over the last month i know it traded below 280 but since it's held 280 a couple of times, it's been off to the races. now i think people need a reason to buy it or excuse me to sell it instead of buy it. >> the onus is on the -- >> i believe so. >> at this point >> i added to it at that level 280. that held but this reached peak pessimism.

if they can get those productions level from 3,500 to 5, though, the risk is to the upside we see these price targets that are marching in, that are above 400. not to say it's a magnet not to say it's a sure thing but to me i still believe that this goes much higher. i would say 350 for starters and then we'll talk. >> they get to 5,000 and the capital raise is pretty much off the table. that's what is believed. >> i think that was a concern so i do agree with steve 100% i think the risk is to the outside. i think 350 is that magic number where you take it off. if it breaks down again, 250 in my opinion. >> so many bulls on tesla here. >> the way i look at this is they're at $27.20 at the end of april. i'll see 5,000 when we get that. there is a lot of cash burned. the multiple does not make sense. and to assume these guys have no competition is silly. >> home builders on fire could lead to new highs for one major dow stock.

i'm melissa lee. you're watching qa ining fast m cnbc here's what else is coming up on fast ♪ like a cigarette should >> times have changed. but there's something in the charts that suggest now could be the time to buy cigarette stocks we'll explain. plus -- >> three to win. let it ride. >> we're heading out to belmont in surge of a triple crown and four long shot stocks. those names when "fast money" returns.

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history is on the line as justify attempts to become the second undefeated horse ever to win the highly coveted triple crown. trackside at belmont park with more on that story

hey, eric. >> hey, melissa. so tomorrow at belmont the big race, justify is going for the triple crown and here's the thing, when you have a triple crown opportunity, the numbers are so much bigger you look at tv ratings instead of a typical 6 million people, it's 20 million people for a triple crown race. and the betting numbers are so much better. instead of $50 million bet for a typical belmont, you could see 80 million, you could see $100 million belt t on that one race tomorrow justify, he's got his own sponsorship deal wheels up, the private jet company, they agreed to a record seven figure dollar deal that's crazy for a horse their logo's going to be all over the jockey, the owners, the horse, everywhere. the biggest amount of money, the breeding rights. it's been reported justify could get a $60 million deal just for the breeding rights. so there's a lot of money on the line tomorrow. this is one of those rare sports

where people are not rooting for the long shot. >> eric, thank you out at belmont this is going to be an historic race you can watch this race on nbc guy, are you going -- >> i'll watch the race but i'm telling you, write this down, come back on monday or tuesday, justify will not win, won't be on the money i'm telling you. vino rosso, i'm telling you right now, watch the horse, the todd pletcher horse, that horse will win. >> i'll do the opposite. >> think this will be a good time to pick triple crown trades, stocks that keep on winning. >> they beat you on valuation and growth they're in the right space definitely a good place. internet search. >> on this at&t deal, staying on, more ahead of this, i think it's going to win. >> tesla a lot of times is a long shot. sounds like a horse's name tesla.

>> tim looked great in his picture. he had a jacket on with his crown. put tim's up discovery communications i watched your show today, mel very good job. >> that does it for us here on "fast. see you back here monday at 5:00

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we're live at the nasdaq on in summer friday the guys are getting ready behind me. here's what's coming up on the show >> there's no place like home. there's no place like home >> that's because home builders are showing signs of life. and chart master says that could mean all time highs for one dow stock in particular. plus -- >> smoke >> don't start but dan nathan says cigarette stocks are about to catch on fire and he's got a way to get long for less. and -- ♪ mr. telephone m