the people on the boat fishing, to those delivering and ultimately putting them on people's plates. >> vaughn, thank you very much for that report from maine we've got 15 seconds left. michelle. >> i'm off to st. petersburg don't be jealous. >> off to st. petersburg i am jealous sorry. i have to be it's going to be a great game. it's been a great week for the markets. nasdaq ends up 2.4%. that is it for closing bell. fast money now. >> i'm melissa lee, traders or carter, tim seymour and special guest trader gina sanchez of trading nation tonight on "fast," it is hard out there are for a bank but chart master says there's one safe name in the space he'll tell us what that is and why it's going higher. tesla circus continues as bizarre tweets from elon musk send shares plunging 12% despite the moves shareholders still love musk. why? it might have something to do with the whole watch that he

does, not what he says thing we'll explain. first we start off with the markets. best performing sector, health care up 3% with terms like this we don't need a new drug, do we investors like what they have. soaring 20% on positive drug data they are all getting a boost this week. as trade war and global concerns heat up, is health care the ultimate hideout trade >> i'll tell you what, i think it's a great sector if you're just looking at bottoms up fundamentals, growth is around 20%. i think you've taken some of the spotlight from negative regulatory front off these guys. at a time when people are worried about trade, cross-hairs, cross-fires, whatever you want them to be i love biotech, i own gilead, amgen, idb riding from first quarter 2016 we kind of forget about biotech now and then you look at biogen and that story you prefaced with is

exactly why people love it done nothing four years and today up 16%. >> positive on alzheimer's treatment that would slow down the course of the disease. a major breakthrough here. >> complete caught off-guard electric that perspective. there's not more data on this particular drug for a while so sort of all clear for biogen in general. look at health care, biotech from a general perspective, they are underweight, very underweight biotech in particular look at m and a, some of the desperate deals announced. novartis makes an $8 million acquisition of a company, gene therapy company in april the company doesn't have approval for their product yet there's a lot of desperation with larger cap names. i look at gilead, there's a name that's going to have to make strategic. >> they did, made a deal. >> was small enough not to get juices going look at the way gene therapy drugs are -- >> so to the point -- that was

not enough for investors for investors burned in the sector before because of fears about drug pricing concerns, war, whatever you want to call it, and then they are waiting for m and a, m and a happens, nothing happens to the stock for investors in there, didn't get much out of it, they are sort of like, you know what, why am i going to be there again. >> i hate to be the debbie downer in the story. >> hi, debbie, welcome to the desk. >> so the one big problem with the health care hideout from the trade war is that there is a potential you could have a limitation of up to 25% of ownership in any company that would benefit from emerging technologies biotech is right in that space so you could really actually see drug companies like merck -- i mean the smaller emerging biotech and pharma companies would get hit if they had to

differen divest chinese ownership that's a big deal. >> are there a lot of companies with chinese ownership. >> i don't know the percentages offhand. i'd be lying if i said that. seeing desperate acquisition, looking at novartis buying the company, gene therapy company. look at these gene therapy companies the way they are trading. you're going to see basically -- i can name six that will do away market cap is too small to mention on the show. talking about $200 million market cap, they will go for significant premiums got taken out for double valuation. they paid $8 billion for this company, that's telling you how desperate. >> it's about the sector what we know, edward, we know managed care one of the top 50 stocks it's all about the big drugs waiting for the sectors in the big drugs and certain biotech. for the first time those are starting to show some life that's what gets the whole thing going. if you do get up, johnson & johnson started a week and a half ago, now all of a lily,

pfizer, merck kicking in that's where the money is. that's the offensive, defensive part of the sector defensive holdings. >> i agree with that i would highlight something david said a beta for alzheimer's out with japanese partner, this is a very, very exciting moment where people have to make a commitment for the next year. ultimately i think it gives a long lead time and people to pile into this, and that is the story. totally agree on united health care this is one of the best performing stocks over the last years. not just because of a regulatory environment that may be better for them ultimately they are growing internationally. their margins are better this story comes right back to the tax deal and consumer and places where i think they are very -- >> what's super important to recognize how underweight the general population in larger cap and midcap names they are completely underweight. we've been waiting a long time for that contingency or that investor to come back to the table and start playing in this game and they are starting to come back. >> okay. back to being the debbie downer,

though, big cap are exposed. you look at merck, lilly, haven't heard retaliatory measures on big pharma so they could be potentially exposed in this there are other ways to play health care. you could play health care reits. health care reits in the managed care space, that's a big and growing space, a huge aging population another way playing health care space is basically playing it through -- >> you don't like drugs. >> don't do drugs. just say no. >> say no to drugs. >> i still like xbi over ibbs from m and a perspective that's going to heat up i think they are going to perform relatively from a relative performance perspective in line going forward given the fact a lot of larger cap names you're starting to see them come back and m and a will pick up. >> let's get to our next guest next guest says there's more room for health care carter head over to the platform,

carter. >> i think it's important to note if you think about health care is the second biggest sector but also the third best performing if you don't count feng, feng is consumer discretion, tech it's basically the best performing sector year-to-date anyway, it's size. you see the numbers here of course this the case. what's really important is that health care is the second biggest sector among the 11. let's look at the chart and try to figure it out from here here is the xlv. a lot of different ways to draw the lines. as a minor thing you have a head and shoulders bottom if i put in the trend lines quha you've really got here is a well-defined wedge, and this week, with our head and shoulders, we have broken out from much higher prices. relative performance, that's what it's really about this has been a dog. year-to-date things are changing

relative performance peaked exactly a year ago every since, right, we have been going down even as the sector itself has been able to advance. i want to you focus on the here and now. just of late what's happening is the following. same chart we have now broken above the relative down trend line that's a very important development. we have seen staples play catchup, we saw energy idot earlier in the year. we've seen utilities, reits play catchup. it's just a money flow issue money is playing catchup in health care. in my estimation i think you want to get on. >> consumer staples we discussed vigorously last night whether or not it was a defensive trade or not, is it done? are those catchup trades caught up and now you're looking for the next one >> some have -- it started with staples. that's about two and a half-month-olhalf months old aggregate, financials, systematically got it into

reits, utilities, staples, even telco. health care is now starting to be a part of that. at some point you get mean reversion. remember, this has been so long in the making, i don't think this is over it's nascent, just begun. >> we talked about how overweight, underweight, from your vantage point you're out there talking to folks all day long at a time it was a popular trade, it was crowded. what do you think right now? is that a good call because you think it's underweight >> properly so think about energy as the setup for this if you've been underweight energy three, four, five years, it takes a lot of time, money to get on sides the same thing here. they have been terrible. lilly, pfizer, bristol meyer, amgen sitting on all that cash the money flow thing once it starts it's hard to stop if it's hard to stop doesn't stop enough in a month to month period this is just the beginning. >> top picks in the sector.

>> i say gilead because the valuation has been pressed down for a long time. needs to be more strategic with them, it's inevitable. larger cap names, gilead in particular picks its head up and moves higher. >> coming up, the rally in your cupboard, soup and cereal surging, could get better for one of those names right there plus the most boring group of stocks in the world suddenly surging. utility stocks yes, you heard that right. that's where we are, folks suddenly hot and a couple of traders think hotter we'll tell you how to play it. later, this stock up 150%, a big player in the stream wars. no, it's not netflix can you guess what it is the answer -- i should say the question in just a little bit. vethhe nasdaq market sit in new york city fast money still ahead.

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with all the details. >> that's right, melissa it was a wild week for tesla shareholders it started with a wild week when elon musk tweeted the company had hit the target of 5,000 model 3s in the second week of the third quarter. that's the target set, tesla achieved it. many expected a surge in shares, a bit of a relief rally. it was short-lived q2 announced as a disappointment by some on wall street who expected a few more model 3s to be delivered we along with other media outlets reported they had limb named brake test in the last week for the model 3 that's what it took to send tesla shares lower on tuesday. there was a bit of a break because of the fourth of july and the markets being closed but when the selloff continued thursday morning, that's when we

started to hear from elon musk he sent out a number of tweets yesterday targeting coverage of tesla. he specifically questioned the motives of some of the reporters and some of the articles they have written about tesla last week and brought up the track record of analysts interviewed by a number of outlets specifically he was asking, look, do we know what the track record is of some of these analysts if they are always wrong, shouldn't we know that shouldn't the viewer know the analyst is always wrong. if you take a look at tesla over the last year, while this was a rocky week, this stock is still above $300 a share and as a result a lot of people will be fk you have had on what happens here over the next three to four weeks before tesla reports it's q2 earns expected in august. >> thanks. phil lebeau. tesla and elon musk whether another dramatic week shareholders have solid reasons for loving the stock

not only did musk manage to meet the production goal he set pretty much for model 3, there are still over 400,000 preorders for the model 3. finally while the stock has tumbled this week, it's still about 25% higher from year-to-date low back in april given all this, is musk not getting enough credit for the job he is doing at tesla tim, what do you make of the antics of the ceo? >> i think he would be getting a lot of credit if he wasn't making so much noise no question he's had tremendous credit i've been somewhat negative on the valuation of the stock -- i've been very negative on the israeli wags of the stock. i think the execution and technology risks have been mitigated somewhat as we get into the mass market, this is where it gets harder as they get into volume and become a real operator. this is where at least as worried about anything, a mass market valuation in the stock. no, elon musk has been successfully, i think, executing on a plan. i don't think the plan has

always gone according to form. >> as a shareholder would you be concerned about elon musk taking to twitter to take out reporters, analysts, short sellers, whoever it may be, gina >> that's never a good thing at the end of the day, i think the reason you see a lot of people continuing to be in this stock is because it's an innovation play. this is a major innovation what's really happening now the market has gotten into what have you done for me lately that's really where the execution risk happens what i said before, the biggest risk at this point there's no margin for error that's the challenge is it a good play, long-term play. >> trading range between 300 and 360. i agree with tim wholeheartedly. it's absolutely a bigger the thematic risk to be tweeting if you've got nothing to hide new york city issues with the fundamentals of this company, there's no reason to push back consistently on street ratings in my opinion it does them more

of a disservice. it's a negative. >> is that the personality of the player. >> isn't that what people love about elon musk, he's willing to speak up for his stock and defend himself. >> speaking up for the stock is one thing. i think going after people personally and especially south side analysts on this is completely different i think the south side is fed up with it. >> south side analysts have been calling 450 on the stock and they were wrong. for four years this stock has done nothing you were at 250 fur years ago, it's 280, 290, whatever, when the tech sector surrounding him exploded if this is a tech play it's underperformed. >> sometimes stocks aren't trending sometimes you're getting worse and worse, sometimes better and better sometimes to your point, this was a $25 stock in 2013. one year later 2014 it was 250 the market priced all of this in and now it has spent the better

part of half a decade digesting that primary move. >> what does it make you feel like the next move in? >> trading in the rain going nowhere. there is no move it's just stuck. there's nothing wrong with that. >> the market is short-term and wants everything now remember, what elon musk is attempting to do is something the actual traditional automobile industry took 100 years to do and we're expecting it in 10 years that's the difference. >> the market has got nothing. you say the market now, tesla the big joke here is they have got nothing. they have gotten no deliveries on time, a cash burn they are now at a place they may be getting this. everybody loves tesla's product. but to be clear, i don't think they have gotten what they were promised. >> the trading range, if you were able to trade this range, you could make a lot of money. a lot of money. >> no one can successfully do that. >> anything above 360 you have the bulls in control right new no man's land f we

break below 300. all bets off, stock will go lower. >> a show after this "options action"s this is for stock traders. >> did a trade on tesla options for that very reason ahead, one surging media outperforming netflix over the last year. do you know what it is the answer later in the show i'm melissa lee, you're watching "fast money" on cnbc first in business worldwide here is what's coming up next. >> as banks tumble, one financial is standing out as a safe haven. >> don't leave home without it. >> charts pointing to more gains for american express we'll tell you how to cash in. plus -- >> be very, very quiet. >> we're hunting for yield because there are four stocks with fat dividends tt haare in the traders sights today when "fast money" returns.

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welcome back to "fast money. stocks may have been stuck in a range but there's a bright spot shiny in the market. utility stocks catching fire a year-to-date high with hot names like con edison, duke energy, southern, dominion up double digits in the last months not just prime minister answer turning heads, stocks boast attractive dividend yields given the numbers we thought it would be a good time to go yield hunting. controversial game southern, the traders like it, you will see this. you'll see this and hear this. >> i didn't hear anything. >> i didn't hear anything. >> sounded like pacman. >> if they don't like it, you'll

see and hear this instead. okay so red duck is bad and green target means you buy it, all right? >> that is fantastic okay. >> pressure is on you. you pick it up, are you buying southern >> okay. i don't expect any sound effects but i'm looking for a red duck, i'm selling. here is why. ultimately i think southern is a very interesting company here but i think it's outperformed during a period when people are just getting back into the utilities trade. they have a more complicated model which includes a nuclear plant, better risk in the sector i'm not against the sector, huge move but i'm a seller with southern red duck. >> you're letting it go. >> here we go. >> there we go. >> i like that. >> you like the red duck. >> red duck across the board so i'm probably the last one you want to talk to. >> you don't like any. >> they move too fast, safety trade is in place. i get that i think the short-term move has been priced in

i wouldn't be chasing it a little bit more upside maybe to these stories possibly. >> doesn't that comply the markets are higher then? >> it absolutely does, over the longer term. i look and say not just buy dividend yield, boom. >> why would you hunt this one. >> group chart possibly, i know we'll look at a bunch of stocks. look at group chart, comparative chart, a bunch of utilities. correlation in three to six-month period as high as 95%. it doesn't matter which utility you buy. straight up. long-term, sure. you set forest fires you're going to be in trouble nuclear exposure, good or bad. here and now it's about money flow. >> about rates. >> look at the chart on the tv right there. those are all four stocks, put five more in there they are identical. >> wow, you'd hunt this one. let's move onto duke energy. gina, would you buy it >> i'm a red duck on duke energenergy

i don't think they are all the same regulated and nonregulated. duke energy is regulated stock right now tax cuts end up hurting all of the regulated stocks if you look at the regulated utilities, they end up making less. >> appreciate the exact same amount over the exact same number. >> this is impossible. i'm throwing a green target. >> hunting this one. >> duke over southern makes a lot of sense because i think there's less execution risk in duke, the earnings profile is better. >> last one. con edison carter. >> same chart. a group chart again. >> you're no fun playing this game you put a target on everything. >> they are identical. >> all right final trade time, let's go around the horn. carter. >> final trade, american express. >> midcap biotech acquisition team. >> gina. >> sabra health care, it's a reit. >> mel, i hope you have a nice weekend, long july 4th

great "fast money" this week we had a block that was going to be social media and i was going to talk about twitter and growth in earnings, twitter, final trade. buy it. >> thanks to gyp, a for joining us today that does it for us on "fast." tcust 5:00 meanwhile don't go anywhere. "options action" after the break. my mom washes the dishes... ...before she puts them in the dishwasher. so what does the dishwasher do? new cascade platinum does the work for you, prewashing and removing stuck-on foods, the first time. wow, that's clean! new cascade platinum.

we're live at the nasdaq markets on a friday. the guys are behind me while they are doing that, here is what's coming up on the show. >> this the taste, this the test. >> and this is brian he is a way to get long shares of pepsi for less than two bucks. plus as media companies scramble to compete with netflix, one company is quietly kicking everyone's you know what. >> you're setting your self up, man, going first. >> yup, wwe. the chart master says beware, a body slam is coming. we'll tell you how to cash in. and -- >> you wan