are pretty much near the high of the day at the close >> if you're looking for a reason i would say this talk about whether or not germany, the eu and the united states can come up with a deal to eliminate auto tariffs that would be one reason. >> definitely got us off to a good start the nasdaq had a victory and tech was the best sector on the s&p, up more than 1% that does it for "the closing bell." "fast money" now begins next i'm melissa lee. your traders on the desk are speet najarian, and tim seymour. >> tom lee shocking the crypto world with bearish comments on cnbc earlier today, but the mega bull says reports of his bearishness are exaggerated. he still sees bitcoin going to the moon and he's here to set the record straight. tesla, as ceo elon musk goes on yet another twitter rant are the shorts getting the best of musk? we have the details and subscription-based stocks are

soaring and we're not just talking netflix here we'll tell you which stocks traders say have more room to run on the fast-growing trend, but first we start off with the rally. the stocks serving into the close, the dow, s&p and nasdaq all closing near the highs of the day, but despite the rally there was a distinct defense to the action today in the last few week, in fact. check out the move with utility, reits and telecom all surging in the past month and the food stocks going crazy as we head into the trade wars, and the global slowdown is defense your best offense >> pete najarian, what do you say? >> i've never liked it and i've never subscribed to the whole idea >> you played defense. >> i did play defense and i'm a linebacker and that's 100% true. >> i don't like the idea if there are better reasons than just defensive reasons to go to any of the names that are out there that had unbelievable days today. i mean, one of the names that stands out for me is kroger which everybody put out for dead after the buy of whole foods from amazon about a year ago and

the stock from 29 and got to 20 and bounced back up and here it is at 29 again and i think that one made sense and they're able to compete and as long as you're able to compete in today's environment and i don't look at someone like that, kroger, for instance, as a defensive stock. >> let's not totally push off to the side technology had a great day today, as well there were defensive names and technology was off to the races once again. >> when you talk about names that are defensive he talks about a name with a story behind it. so when you look at these other names, these food stocks, they have stories behind them, too, and the space, technically, they look like they're breaking out utilities to me is what pete said defensive, but they can pass on the rising rate environment to clients and to customers. so i think that is the defensive play that i would stay with. the other ones are -- food stocks, case by case basis and we truly don't understand how long that m and a can pop.

>> is there something to buying a stock that people need all of the time and that has a yield, a decent dividend yield that could help buffer you from down side >> well, theoretically, but where do they buy that stuff they buy that at a grocery store. what's happened to the grocery store industry there's more and more consolidated and more power in fewer hands and that changes the balance of power between a kellogg or general mills who used to be able to just take, you know, they were able to raise prices at will and they can't do that anymore. >> the other thing for me, a dividend is -- >> the wrong reason. >> absolutely. i think we will see inflation and we have not seen much of it lately, but i think we'll see it so the dividend provides me this much protection and you can lose all of the dividend in a day >> i think they were offensive, not offensive, but offensive. if you think about the rate scare that we had. kelloggs dropped 25% during that

period and kellogg has very real drivers and they have one of the best balance sheets in the space and their margins are growing and they have the direct store experience and they've got different reasons and the snack business and these are all excellent reasons and i think we're in a rising rate environment and the market overall goes into a compression period i think these stocks are very expensive. i think these stocks are very, very attractive when rates were almost zero and people were willing to pay more and the stocks were made and because they're the dividends that karen is loathed to chase which i think she's right. >> back to at&t. >> i think these guys are trading anywhere from 15% to 20% past the five-year averages and if you look at that, i think a lot of that is -- >> except for kellogg. the one pushback i have and i agree with everything you said on the positive side of kellogg. it made sense. it's not necessarily defensive, but at a 15 p.e., if it's the last couple of years running at 17 it's not that bad even though

it's hitting highs impea i think there are other names out there. >> that could be a defensive stock. >> but i don't want to buy a -- >> i want to buy a stock that has more and you mentioned some of the margins and deficiencies. >> the fact that we look at it as defensive that's right up there with the dividend thing >> it is odd to me that kellogg is specifically butting up against resistance and that's a year ago old and it might push through. there might be more under the hood technically it's a tactical show at first, i don't know, the chicken or the egg, but right now kellogg sets up >> i think your m and a that you mentioned in the beginning is a potential catalyst if kellogg doesn't get a good price. >> then the others sell off. >> i know at&t obviously has a world of stories around what's going on there, but at&t and verizon, and a lot of the big

stocks and the yield plays in telco and utility land, i think were hammered and we're getting that kind of relief. i think people realize and we've talked about it in the last couple of weeks and you may see rates going back to 260. i think we will. >> that's been a major boost yes. you've had the backdrop of global trade wars be a reason to jump into these things, but the semis have been badly beaten up and we're still bouncing along at 50 and that's a chart not in trouble to me and i would rather own that in a difficult time and those are defensive stocks >> so if defensive stocks are not defensive in your view, pete, technology is defensive? >> i think it is because the fundamental story is there and the growth story is -- >> how can technology be a great sector to be in when you need defense and when you don't need defense and they're both ways. >> i'll give you a great example of a defensive stock would be a microsoft. when you look at the growth and the cloud aspect of it which is what satya nadella was set out

to do so when established as the ceo. he looked for the growth area that he came from. that's where they're going and when i look at their dividend and the buybacks and the fundamental story of a microsoft as one example, i think there is a great opportunity. i think $100 seems cheap for a most i think it's a $110 and a $is 15 stock. five years ago we've had some areas where we've needed defensive stocks and needed some growth stocks and technology by and large has outperformed for the last five years and probably longer than that, as well. >> does it make it defensive >> unfortunately, both unfortunately, right now we're dealing with the headwind of a trade war that puts it right in the bull's-eye and ultimately when the smoke clears this is offensive and not offensive and defensive. >> let's see how offensive some of these defensive stocks are. what we're going to do right now is trade it or fade it >> like it

>> kellogg >> a nice little gain. we had a nice discussion on kellogg. >> i think management here is in a good place it is so clear >> i just wanted to make sure we're all on the same page >> i would stay with this rally. i would trade it and i would stay long. >> totally agree >> i would look at the valuation and at a 15 p-e forward, this is cheap, actually, it's a trade. >> clorox, karen >> clorox. i mean, i don't know i guess i would sort of fade it. none of them are crazy expensive, right but the idea to me -- oh, i'm going to get out of something that i really like because this may outperform for a month doesn't make sense to me >> right >> i'm not going to do that so i will fade it >> i would fade clorox, as well, and i go back to what i said before when i don't know what the fundamentals are going to be going forward because no one truly knows, i look at the

technicals it looks like it's failing right now at prior resistance so i would fade that one. >> church and dwight, tim? >> a very diversified brand. this stock has been on a tear and some of it is due to management guidance and better margins and this does well in the environment where the consumer has more money to spend. i'll trade it. i'll trade it. >> the story's improving and the margins as you talked about there, they are doing what they need to do to put themselves in a position through 2018. because of that, i'm going to trade it, as well. >> a 16% gain in one month. >> the s&p has been stuck in a range in the last two months and our own steve grasso said watch out below. what are you watching? >> why don't we take a look at the levels and it's easier to explain with the actual chart over here. so when we look at this. when you have to look at a fibonacci retracement, you have to look at what the key levels were and you look at the

all-time highs, and you go to the recent low at 2532 that's the prism with which i look at the marketplace. so when we step out of it here, we are sort of at an increasing trend line still, but the level that is a must hold is 2691 which is the recent low from last week and when you bring back the lens a little bit we have a rising 200-day moving average. that moving average is 2672. so i'm a little out of sorts here, but let's just do it this way so i can't write too big so 2672 is the 2 hun-day moving average. we have to test that level when you look at the most recent high and the most recent low and you come up with the fib bounce level and it's between 650 and 618, wonky levels and all you need to know is stare at that level. we break that level we're going much lower and we will head down probably to 2600 in the s&p

which spells out disaster for most polls. >> hold on, steve. so if we break 2672 you say the end is near? because we've been testing around that range now for three weeks. >> so you get another hiccup, tim. i would rather bail at that level and you can always buy it back on momentum so if we hit that level and we trade down to 2635, that's the ultimate pull the rip cord, then you want to trade down aggressively you want to get out of your loss >> people will be, i think, bullish on the s&p and holding 200 day and yet that 200 day was 2600 and as you said, it's moving higher. you don't think it holes the levels it ought to hold, but if you look here. if we had the ability to broaden this out what does this okay like to you? we have a head, we have a

shoulder and a shoulder, which looks like a head to me which is short term you can look at a collapse in the market if the trade war fears do not dissipate shortly. >> steve, you had that level, i think it was 2672. does it mean it closes lower than that? or it closes intraday? what do you mean by that >> i do think there's technical damage when you hit that level or trade below that level, but everything that a technician does is done on a closing basis so we have to close below that level for it to be significant to most people that do chart work >> steve's going to come back. >> all ♪ ♪ >> 2672. okay, that's what we will watch. thanks, steve. >> coming up, tesla shares nearing a bear market as elon musk takes to twitter.

are his antics hurtsiing his stock? is he really as bullish as he says he is he'll be here to explain and later, it's the one sinking stock that karen finerman says could be about to make a major turnaround she will give us the name. we are live at the nasdaq in times square we are live with "fast money" just ahead airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform,

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♪ ♪ no one wants to be all by themselves, unless, of course, you're elon musk the outspoken ceo lashing out on twitter, this time trolling journalists from a number of financial organizations and his latest outbursts adding to wall street analysts that musk has gone head to head with recently. phil lebeau has the details. >> it was an active day for elon musk earlier in the day on social media and we won't get into the tweets and play what was said by him and others that said to him and if you look at what happened with tesla and what elon musk had to say today and it comes down to a couple of issues one, motives of some of the reporters that have been writing

about tesla over the last couple of weeks questioning what were their motives for writing particular articles and second of all when it comes to analysts and the comments that they've made about tesla what's their track record? are they fully being exposed if they are wrong about their predictions. that's an interesting topic that i know you guys will talk about in a little bit. in terms of shares of tesla, it has been a rough week. this stock was trading at just over $360 a share after the q2 deliveries came out on monday morning. look where it's at right now under $310 a share down roughly 14% and the big issue for wall street analysts right now, it comes down to what's the production rate that can be sustained for the third quarter, particularly when it comes to the model 3 yes, they hit their production target of 5,000 model 3s in the last week, in the one-week period in the last week of the second quarter and can it be sustained and we heard from an

analyst like brian levy and i'm not sure it can be sustained and we're still waiting to hear from other analysts as they weigh in, although it will be interesting to see how many of them weigh in on that or if they wait until we see tesla's earnings in the beginning of next month. it was an active day to say the least, melissa >> phil, what's interesting is the bulk of the decline that we've seen in terms of taking a look at the one-week performance and whatever recent timeframe you want to see, is that the bulk of the losses came on that report about the breaking test on the assembly line and you put it into context really well earlier. can you explain to people why maybe it's taken out of context that they're not doing breaking tests on the assembly line >> people hear they eliminated a brake test and they might think uh-oh, they're want checking the brakes on these cars once they're built. that's not the case at all tesla made it very clear and they were clear in their statement to us that what they've done is eliminated what's called a brake and roll test because they believe it was redundant as part of the

manufacturing process because they also checked the brakes do a number of different checks when they test drive those vehicles out on a track after they come off the assembly line. so from tesla's perspective, look, we can eliminate part of the manufacturing process that we consider redundant. we're not compromising the safety because we're testing the vehicles, but the reason why this is getting attention on wall street, melissa, is because it speaks to the question of did you eliminate that step so that you can speed up the production process? tesla says look, we're always trying trying to streamline our process as much as possible and no one is saying we should cut corners, but it was an interesting look into how we're increasing production in the final week of june, but again, nobody has said that these are unsafe vehicles that they're building. however, when you say anything regarding brakes, people immediately go, wait a second, is the safety being questioned >> phil, it's steve grasso so i am still long the stock so i'm a bull.

so i want to look at it through the way i see it do you think that this is a learning experience for elon at this point a lot of negative headwinds. he had to ramp up production there are a lot of questions about how he did that, but do you think ultimately this is a learning experience for him going forward even though the granularity seems negative right now? >> i -- it's hard to know for sure my guess is that elon musk on a regular basis is learning more and more about how to streamline their production facilities and how they are ramping up and how can they do it smarter, more efficiently day in and day out especially since he's taken a more active role in the production of vehicles whether or not he would ever come out and say, agree, boy, we've made mistakes and learned from it, there's no way to know for sure, but i would bet he'd be the first one to say, look, we're always learning what we can improve upon. >> phil, thanks. phil lebeau in chicago for us. amid all of this, tesla shares

are down in bear market territory down 17% from this recent high and it hasn't bounced off of that initial report even though the way phil put into context it would seem like in any other take it should have perhaps bounced back. >> yeah. i just wish and i like elon musk and i think all of us do we love his innovation and you kind of wish he'd get back to the business side of what he's doing and get away from the whole trolling thing, but it is who he is. he's a guy who is out there and he's willing to be out there the interesting thing for me and tesla is the stock price has been absolutely incredible it still remains incredible and it's holding on to a support level that steve was showing me over here. the derivatives market is the way to play tesla, because it is so volatile that i think owning the stork or being short the stock is an absolute incredible way to play this thing >> the price action, really, i would argue that it's been extraordinary, but i wouldn't say it's incredible. >> let's get through that level and i'm not saying that they had to get where they traded right

up there, it was almost ae 19% move in three days they're getting to higher volume can they do it they've missed quarterly numbers on deliveries for the last four quarters or since they started pushing the model 3. it's almost had a bigger effect on the risk and that's the risk with the company and it's not that elon musk isn't the visionary and it's not that they don't have a great portfolio and this isn't great technology and you have a mass market valuation in the stock right now that makes no sense to me. they've not proven they can produce this many vehicles >> and this is the first time we've seen them be held accountable to production. >> this is really myopic on production levels. when you price the stock as a growth stock and a technology stock. >> it's because so many things hinge upon hitting the production levels. >> and right, exactly. are they going to be profitable? they can't do that. >> i wonder, right it was buy the rumor

sell the news. yeah >> but the other thing is to make this a -- instead of a 24-hour just stick everything together in the end and doing everything we possibly can, to get it as a real, mass-produced model how much will that cost? i still don't understand why they raise debt? why not? >> they can do it for an attractive, i think they can do a pretty huge offering for an attractive price here and buy time what if? it's certainly possible they run into meaningful headwind >> this say mass market car. that's what the story is we need mass production. >> that's expensive. that burns cash. >> it's hard to do and it's not something that you just walk in and do >> so if you can't get enough of elon musk or tesla, head over to cnbc.com for the latest and there is arn article with elon' battle with the media. it's the einhorn exodus. investors are fleeing the hedge fund at a rapid rate, but are

any of the names in this portfolio worth a second look? we have the details. i'm melissa lee. you are watching cnbc, first in business worldwide and in the meantime here's what's coming up on fast. >> it's not out of the question that it could be over 20,000 by the end of the year. >> crypto king tom lee shocking the world with a surprisingly bearish comment on bitcoin, but tom says you've got it wrong he's still a bull, and he'll be here to clarify. plus, last time karen pitched a stock it rallied 12% in tyheney three months now she has a name that she thinks will do even better that when fast money returns thrs now she has a name that she thinks will do even better that when fast money returns

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she can share the information with... >> welcome back to "fast money." bitcoin is back and the cryptocurrency rallying back 10% despite the late-day sell-off. let's get to bob pisani for all of the details >> hello, melissa. the good news is coin is up about 10% in the last few days and though it did drop midday. it's not clear what happened in

the middle of the day. some note electronic company payment square has withdrawn its application to get into the banking business and that was a big deal back in june. new york financial regulators granted square the go ahead to allow new yorkers to trade cryptocurrencies today's drop may be due to concern that there may be less future volume in cryptos not much good news for bitcoin, folks. it broke through the psychologically important 6,000 level and it's still in a long and even a short-term downtrend. the last time there was a rally of any note was way back in april when bitcoin went from about 7,000 to 10,000 in two week, but it hasn't done anything on the upside there have been some reports that volumes on some exchanges have increased in the last few days as bitcoin has come back a bit. that may be true, but in a few days it's a short time horizon and the foreign exchanges have questionable monitoring tools and i'm being kind when i say

that watch the volumes at coin base that's what i do and this is the largest u.s.-based crypto exchange if you just take a look at the dollar bonds and look here in the last few months they have been clearly on the decline and it's down 80% from the february levels to the june levels and it's down four months in a row and you can see that clearly here's what i want to see and see if we can at least see july levels from dropping over the june levels and just bottoming out at this point, melissa, would be a victory >> bob, thanks bob pisani at the nyse. our next guest sent shock waves, shock waves across the crypto market when he made the comments on cnbc earlier today >> bitcoin's historically traded at two and a half times its mining cost. so it's not out of the question that it could be over 20,000 by the end of the year. >> bitcoin would still have to rally over 200% to reach 20,000, but the $20,000 comment was interpreted by some as a sign of bearishness. we may remember even as bitcoin

has plunged, tom lee stood by his 25,000 year-end price target he is back to say that his reports of his bearishness have been greatly exaggerated >> i was on "squawk box" with you early this morning and it did take me back instead of saying 25k do you stand by 25k? >> i do think it's the first time i've ever heard someone thinking something could triple is a bearish comment >> yes. >> right i may have misspoken a little bit. what i was trying to illustrate is given what the mining cost will be and applying the historical average of two and a half times mining cost, that would imply a fair value over 20,000, roughly 22,000 so we still think bitcoin can reach 25,000 by the end of the year or something like that, but it is still a huge move from

where it is now. >> so you're not bearish and i can tell how it's completely exaggerated and taken out of context. >> we've had rob on from your shop as well and you would put bitcoin up and he would come over and i would ask him is 25 possible and he said it's going to be hard, but yeah, that's the forecast >> if you look at the history. bob has pointed out, bitcoin moved from 7,000 to 10,000 in a couple of week, but from a historical perspective, over any six-month period 25 time it's more than tripled. so, in other words, in any typical period bitcoin can triple one or three times. it's not out of the question that bitcoin can make a big move from here and i would just point out that what makes it unusual today is bitcoin is trading below mining cost and six months

forward. this is only roughly ten years in history, bitcoin has had a positive return in nearly 100% of instances whenever it's traded below mining cost >> the risk reward is a symmetrically positive >> this has got to start soon. >> six months out and we are six months into the year and we have six months left. >> bitcoin is quite volatile and it's only got a ten-year history and in the entire history it's always been a good time to buy below cost. >> i don't understand why mining cost is necessarily a floor. we've seen in other, mining gold and things trade below that. why is it necessarily something like replacement cost, why is mining cost necessarily a floor? >> well, mining represents -- so let's imagine bit coin's a commodity because it's a block reward in any commodity where you're

looking at flow, incremental cost does actually explain or govern for instance, the sustaining cost of gold is actually a ta tachometer, and it's in a price to book so bitcoin isn't a great buy when it trades above two and a half times which is over three and a half and it's always actually a good buy when trading. it's unusual to trade below one times. >> so you're still bullish, clearly. >> i'm jet lagged, too >> while you're here i want to get your opinion on other coins. we thought we'd play would you rather i'll give you two cryptocurrencies and you'll tell me which ones of the two looks better. >> and he's jet lagged, too. >> i know. i'll be gentle >> bitcoin versus ethereum, would you rather

>> bitcoin >> yes >> and it is because the investment case for bitcoin is easier because it's a store value and ethereum has some competition. we still like it, but it has competition. >> bitcoin versus litecoin >> we'll take bitcoin again. no offense to charlie. charlie lee, but i would rather own bitcoin. >> and we'll end this with ripple versus bitcoin cash i'd pick bitcoin cash over ripple because i think in some ways bitcoin cash has unique features relative to ripple and there are merits to owning it. >> want to do a bonus round. >> bitcoin or u.s. equities between now and the end of the year >> between now and year end we think it can do single-digit gains and i think bitcoin can easily do well beyond that between now and year end so i would rather own bitcoin,

but of course, it is riskier so it's different than owning an, quit. >> tom, thank you. despite your jet lag for joining us tom lee of fund strap. >> i tend to agree with karen that i have trouble with the cost of mining because i don't think it's commodity i don't think people really -- i see that target moving around. i think bitcoin to me is probably range bound and i think we're waiting for an event of some kind that will be the catalyst there's no question that people want to come in. i think you need the retail guy back in. >> still ahead, sign me up, scotty because amazon and netflix and a number of other subscription-based stocks are up higher and we'll tell you which you can buy plus karen will step up to the plate and getting ready to pitch a stock that is the year to date low fout, but as you're swinging for the fences when "fast money" returns ons for sto, $0.50 options contracts?

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>> welcome back to "fast money." time for an instant replay back in april karen said it was time to buy lows. >> the price has come in a lot and the p-e has come down a lot. it's below the market here and i think there's a couple of things that could go right here, and today's sell-off creates an extra opportunity. so i think there are a number of catalysts. bring it all together and at this price i like lowe's >> it was a great call the stock is up 12% in less than three months so what are you doing with lowe's now, karen?

>> i like it all of the reasons that i liked it before. i still like it. >> stick with it >> yes >> let's get another pitch back to the plate, karen. >> bring some heat >> okay. >> all right so today's pitch is united rentals. >> what i like about united rentals. for me, the first thing i look at, of course, is valuation. it is very attractive and it's for the last several years enterprise value ebitda which sort of corrects for dips because this does have debt. so from the basis. so for those two reasons, i think the valuation is attractive here. the other thing i like is they're very strong and strategic. they are the number one market share by quite a bit after this new acquisition that

they recently announced and probably at 12% of the u.s. market, the next closest competitor which was sunbelt is at about seven and then a distant third, and i love that strategic market position and i love that they are very u.s. focus and almost their entire business is in the u.s so while we're in the middle of this trade war, being in the u.s. is my favorite place to be and that doesn't mean they don't have exposure in the trade war they buy mash reasonchinery thad get caught up in the trade war the other thing i like about it is last year's headwind has become this year's tailwind and that's exposure to the oil and gas business >> it really weighed on them and we're seeing that start to turn as they get increased utilization from the equipment that they have that has exposure to the oil and gas business, and the last thing that i want to go to is the chart. so let's see, right up at about

here it was just under $190 and that was at the market's little peek and before we got into the trade war stuff, here we are today. you can rally a few bucks today and it was about 145 it was down about 24% over the last -- not that long and a few months or so which i think is really overdone, and i think it's trade war and i think there was disappointment the other day and it really wasn't that big at all and i don't think it was a big deal for all of those reasons i like united rentals and i bought it right at about this level where it is today and i've owned it on and off for the last year or two, off for a while and now i'm in united rentals right here. >> i think it's a great story, and i see a lot of tightness in the rental market and it is the ultimate litmus test >> the fact that it went from 100 to 160 and priced so much growth, and this move of late

and i get trade wars doesn't make stearns to me >> i'm sorry i'm not sure you're saying, is there something else going on. >> or has it priced all of this good news in on the global economy? it had a big run >> i don't think it's priced in. in fact, the stock was in after the first quarter and they told you on the call. they said we had a softness in weather and that's turned around and we won't see that until this quarter's numbers and you will see that july 18th or 19th and i think things are moving along nicely and we will see that coming up in the next earnings call >> all right time to vote and are you buying it on united rentals >> this is an absolute buy and the valuation levels that we're looking at right now and the tailwind is behind them and this is going back to 190. >> that is a buy >> just verifying! >> buy or sell >> it's in the game. >> i've been in and out and karen's had a great call and i

do say sell it at this point and i wonder what the corporate tax cut and the new planned tax plan, i wonder if that changes the immediate expensing and changes corporations and businesses and buy don't rent. i can be lost in the weeds somewhere in there and i do think that technically, it looks like a bad entry point >> negative. >> ben i'm buying what she's selling. i think a lot of prices is priced in there and the reviving energy sector i think is another catalyst that will probably take this stock higher. >> the more important question is would you at home buy karen's pitch on united rentals? you can vote now on the twitter poll we'll reveal the results later in the show. >> is that toni braxton? >> investors are signing up in droves and one reporting stocks and they all have one thing in common, a subscription model r traders will tell you which ones are worth the subscription and which ones will have you hitting the unsubscribe button that coming up

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so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember. >> welcome back to "fast money," everyone knows big names like amazon reign supreme and other stocks have been surging for more let's go to the man we never cancel dom chu is back in the newsroom. hi, dom. >> i hope that puts me right up there with the amazon prime and netflix subscription, right, melissa?

bu but all kidding aside. while we focus a lot on the amazons and netflixes of the world, a slate of other subscription-based stocks have been showing some interesting upside price action over the near and medium terms. we will call them the sign me up stock. for example, take a look at sirius xm which some folks might be using to listen to fast money as we speak. those shares have taken a hit over the last three weeks and they're still up around 10%. we'll stick with the music thing. after debuting in early april in an unconventional public listing, streaming music company spotify shares are up 21% around there in the last three months moving towards another media company, but on the new side of thing, you've got "the new york times" up around that timeframe, as well and we'll use the subscription stock specials with a couple of lifestyle-oriented companies and we have stitch fix up 35% in the last three months and one of the most impressive

price momentum stories for the last couple of years has been weight watchers posting around a 58% gain during that span. now we're north of 100 bucks a share now and melissa, the same time two years ago it was less than $12 a share back over to you guys. >> all right, dom. thank you. >> also worth noting our own jim cramer has been hot on the rise of these subscription stocks and the subscription economy, if you will, even calling it the best secular trend in the marketplace to play. excuse me. i've been up for a long time subscribe or unsubscribe >> you understand that >> so it's very simple i always think the rules are very simple and then they tend not to be simple at all. >> on certain stocks if the traders are buying they'll say subscribe and if you are not, and selling unsubscribe. >> deny it >> exactly

so we'll kick things off with weight watchers. tim, subscribe or unsubscribe? >> by the way, you look great. >> all thanks to -- i'm unsubscribing on this one. i think it's been a remarkable story and never bet against oprah, and hopefully you didn't, but this valuation his some goals for the future >> her growth rate has been remarkable and take your money and here's why >> when she stood up there the stock was $7 and they had record numbers for subscribers up 28% year over year >> their numbers actually do justify where they are >> isn't it a strong quarter a seasonally strong quarter? >> huge quarter. >> at some points the margins don't add up

>> thank you their retention is unbelievable. >> if they fail it's your fault. if you do well on it it's to the credit of weight watchers. it's extremely stick oy on the stubs basis. it's worth 80 times sales. or 70 times. >> it's up 130%, and i'm guilty of missing this one. i thought it was a sell real early and this thing has defied everything for me, and i do believe that everyone that i've spoken to on a grassroots -- they say that they love it >> i would subscribe >> unbelievable. >> spotify is the next one spotify, subscribe or unsubscribe. careen >> uncharacteristically for me, subscribe. i have loved the product and i've loved it for a long time and clearly the thing for all these models for all of these businesses is if you get a critical mass, every additional

subscriber that you get that margin is gigantic so i think they have that critical mass, and it's a great product. the valuation is cupped and the swallowed butt, subscribe and there is a lot of room in this gross margin to offset what i think will be contract royalties to artists that probably should go higher and they figured out how to co-exist with the music industry and they're rocking it. >> they're losing money annually at an incredible rate and that boths me a bothers me and i know what the stock looked like as an ipo and it will absolutely cripple people, i think. apple is there it's too difficult for them to survive. >> speaking of hot trends, the mad man is back tonight talking the hottest ipos of the year so far. you can see him tinhe cramer cam all fired up and all of that and more top of the hour on "mad

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welcome back breaking news out of washington. president trump making comments on tariffs and john harwood has details. john >> melissa, the president is flying out to a political event in montana, and he just spoke on air force one a few minutes ago with some words that will rattle the markets because instead of dialing back his talk of trade conflict with china, he's dialing it up. the president said $34 billion

of pending tariffs will go into effect tonight another $16 billion in two weeks. that's 50 total, and he said that eventually he has got ready $500 billion worth of tariffs after that in two chunks of 200 and $300 billion and that on top of the conflict with the european union, with canada, with mexico makes for a very unsettled trade and commerce situation for businesses that would export and import and we will see whether he follows through with those words, but those were the words he just had on air force one. >> if he follows through is there any question at this point, john, that come the stroke of midnight we will see the first round of tariffs in place? >> no. no question on those that's tonight and just a few hours from now, but he's talking about $516 billion in tariffs in the future and i suspect that even though wilbur roshs has sad

it won't turn away, i am sure that steve mnuchin has a different view we'll see how those conversations play out, but there is no reason right now to expect that the president has any interest in turning back on this trade conflict even though it threatens the economic recovery and threatens to undercut the impact of his tax cuts >> all right john, thank you. john harwood with the latest out of washington on this. steve grasso, the markets were very resilient ahead of the jobs report tomorrow and the tariffs in place >> so i think that people thought that the president might be backing off a little bit and this doesn't sound like he's backing off which you would not expect in the 11th hour for him to back off. he's trying to negotiate you don't start to get soft in the 11th hour of negotiations. i fully expect him to push really hard. he's going to go through with whatever he said, but we'll see what happens come the morning light. >> one stock that could get wrapped up in the trade war is the traders that made bullish

names. >> let's go to mike. >> we were taking a look at the activity that we saw in general motors and it was traded three times as many calls as put today and the reason a lot of the action that we saw was actually in the january, 45 calls we saw a single block of those 5,000 were purchased for $1.10 this happens to be the option in general motors that has the most open interest. so this could be opening and it could be closing and we'll know that tomorrow. this, obviously, if it is opening is the bet that the stocks will be above $46.10 by the january expiration and even if it is closing that is still an indication that the stock could actually be going in this direction because obviously that's somebody who doesn't want to keep the short call position on any longer and one other thing i would quickly point out, we did also see bullish flows in auto suppliers for warner and data >> thanks for that, mike check out the full show and that's tomorrow at 5:00 p.m. eastern time up next, final trade 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.

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>> going into financials, kkr. giddy up. >> alibaba, keep buying it. >> tim >> mexico, i would be saving it. big move, get out of there. i melissa lee 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 you want to make friends and get you understood money call me or tweet me@jimcramer. the three ts are the