after the adp report the bond market is twitchy about any domestic slowdown. >> and jobs friday >> we are expecting unemployment to stay after a 50-year low. the yields didn't do much today so stocks outperform without the bond market getting risk on them. >> as always, thank you very much we're out of time. that does it for closing bell. >> have a good evening "fast money" begins right now. indeed it does "fast money" starts right now live from the nasdaq marketsite in new york's times square in for melissa lee, guy, the expression on his face our traders on the desk are pete najarian, tim seymour, karen finerman and guy adami >> hi, joe >> how are you, my man a potential antitrust apocalypse, i call it is hanging over big tech and one top lawyer has brought his magnetic business cards and he'll tell us the tech giants that's most at risk and first we'll start with the market rally and the dow

surging for the second day in a row and now up a whopping 700 points and a trade are trade deadline looms there are signs of trouble, but is that good or bad? safety stocks are soaring with reits and utilities and the ten-year yield near its lowest levels and after the adp report. crude is collapsing, falling deeper into a bear market. so can you trust this market bounce and what do you do, guy adami? you don't want people feeling too good about things, do you? >> look at you acrimony sometimes. >> i don't like it here. >> it keeps you on edge. >> you don't want people being too comfortable in their -- they are too complacent people would agree with this and the vix, in this environment, in my opinion should be closer to

21, 22 than 17 so i think there is a lateen complacency because for the last ten years, every single dip in the market has been a buying opportunity and you've been rewarded for buying the market and for being short volatility i do think the yields going lower is a warning sign and i do think that xlu making all-time high in this environment is a warning sign and i do think that gold rallying is a warning sign. you can't discount the fact that the last two days is an inclination and i would fade this move. >> we do it all of the time. is bad news good news? is good news bad news? and for the market right now, they're putting the fed in play and bad news is good news. bad news is bad news i think if we get two cuts, it's the overall volatility environment. on friday you will get an opportunity with the payroll number coupled with today's beige book that looks e everything is quite fine coupled

with the comments from yesterday to hear that good news will probably beat bad news for the equity market because i think equities have priced in way too much fed here. i think the bond markets are way too ahead and it's equity markets that i would be concerned about. >> can we push back for a second >> so when you're talking about the fed and if the fed cuts once or twice that doesn't -- doesn't make me feel good. >> let me ask you something, so we have the same set of data, right? would you rather have the fed do nothing on it or would you rather have the fed cut on it? the data is what it is and the economy is doing whatever it's doing. i would rather have the fed becausemortgages are cheaper, having debt is cheaper. >> if you look at aprs and credit cards we were at 20-year highs and revolving loans and your question is a good one which is with the same data wouldn't you have a lower rate environment. i'm telling you the fed will

need to see worse data and continuing deterioration and the pmis around the world and our data to cut twice and that will be a bad environment and all of the things equal with lower rates. you're right that's good. >> we got the printed day on gdp and put up 33% for a june cut. 33 pertz today at noon and we were talking about two cuts, but two -- ask ooh not just dependent on bad news. it's dependent on good news. >> what's good news? good news is inflation >> i don't know. i always thought low inflation was good news, but now it's bad news that it's too low, i guess. >> don't we have inflation >> disinflation. >> disinflation is not a bad thing, you're right. deflation, look at japan 30 years of trying to recover

from a credit bubble and the response was the central bank threw everything they could at the problem in terms of liquidity. i think deflation is a risk for the world. >> joe, i'm goingto say something i've said many, many times and we're down 500 points one day and down 300 points the next day and we talk about algorithms and high-frequency trading and some of the stuff that pushed the market around. i'll get out there and say it happens in these upward move, as well i think we're seeing moves that are triggered off of words whether it's the fed, whether it's trade and whatever it might be and that's why we're seeing the intraday moves and volatility where we're trading right now is way too low way, way, way too low and a 16 vix gives you a 1% move per day. if you look at what we're doing per day, close to close is different and i'm talking about the move we're getting right now. because of that we should be trading probably at 20, probably 21, something like that. so the fact that we're trading in the 16s right now

it's a good opportunity where you protect your portfolio or you exit your stocks if they performed well and you stop replacing with options before that and either way, you have to start owning options and spdrs and whatever it is that's protectioning your portfolio and you buy when you can and in this market we can easily see a vix trading in a couple of days. >> in a bull market that is very scary and very quick, that's usually a sign of i continuing bull market because it shakes people out is the same thing true in a bond market if you get a sharp move back up? that's what rrs me it's the drip, drip, drill in a bear landing bull marks and the next thing you an on i would look at this trademark and start it off with china, but look at the terms of tariffs being talked about it's longer a bit of a trade war

and i don't mean that we're not changing the dynamic immensely for me because there are great opportunities every single day there are opportunities and it's a trading environment. you have to scrunch down what your timeframe is right now. >> i think if you look at that, i agree with that. valerie reflects a put back into the market, but back to the market we had today and stock picking, look at how apple has begun to decouple from the sma apple is considered to be a trade war stock, poster child number one and has rallied 4% or so over the last couple of days and smh is back, because ultimately i don't think should be tabbed directly to the semis and the cyclicals related to trade so there is stuff you can do, pete, out there in this market. >> larry kudlow in early may said the president has said greatest economy in the history of the public.

it might be. i'm not arguing that, but if that is, in fact, the case why are we having conversations about fed rate cuts? >> inflation >> i will -- >> why have the pedal to the medal with no deflation. >> why don't we do something novel like strengthen ours, including maybe for the wrong reasons. the fed's job isn't saving the economy and raising rates on strengthen the ten years -- so we expor mg? >> we -- you don't need's are a stronger there are i would think the consumer watching at home, and everyone thinks it's great to have a weak dollar and it's wrong. >> 111 on the euro and i thought

it would be much higher. i think if you buy things you want your buying power to be stronger and it's stronger if the dollar -- i know that's not great for multinational, but it's great for the folks at home >> one thing i will say really quick is if we're in such a great market, if it's so great out there, why are we seeing want just the utilities? how about the medals >> not so much we're seeing paper and silver every single day now either individual names or the etf or whatever. you're starting to see the precious metals and people are jumping in there, joe. that's what i see. i see in the derivatives market. i'm just seeing gold they're running scared right. exactly right. >> oil should be going, too. and it's not it's going the other way. >> right >> in fact, so to dove tail that, joe, they were back on the

sell side if you want to happened the leverage pressure and the commodity because they're the biggest and best commodity trader out there and that stock's been on the skids now for six months and i think until you start to see that improve i'm not in there buying commodities wholesale. >> did you people actually trade things today they told me to ask you. >> i did not. >> you did not >> i haven't traded things in 26 years. >> what in the world >> i'm not allowed i'm not allowed! >> i guess you could trade -- >> i guess i could do that, but i'm morally opposed to those >> one of the things i got. >> -- bond yields that begin to normalize more off these levels and i've been owning both calls and spreads in the tbt which, to me, is the opposite of your view on treasurys rallying that they're going to sell off and you're long in i just think you have to reconcile and the bond markets are screaming something that i'm not sure the fed is taking

place. >> i've done quite a bit of trading in the last two or three or four days and because of the fact that i'm seeing these short term type things gld, monstrous buyers. i'm already out of that trade. the junior miners, that gives you extra torque i don't know that everyone knows that they're the junior minors and dropbox is another one everything that we're seeing does not go out more than two months i mean, so everything is short term everything seems like it's tradable and there's not a whole lot of investing going on out there. >> yes there's a time when i invite people over and we have an applause thing how quickly can we get that? s savida i ♪ ♪ >> i had it all ready to go and trade tensions are rising and our next guest thinks that it

will not be better you're head of quantitative strategy at bank of america merrill lynch and welcome back >> good to be here lots going on. >> i've seen equity markets in the ten-year and it looks like maybe not everything has -- but i don't know if that's true. >> you know, it's interesting because i think what's driven the market higher or what's kept itt these levels is not necessarily the success lickal stuff a cyclical stuff and the stock market is singing right along with the bond market and saying don't buy anything with any cyclical hair on it and just buy, like, utilities and tobacco stocks, and i think that that's kind of what's going on internally with the market i think if you look at what's happened so far what was surprising is that we've seen such a repitity and a height edge of the tensions, and what's called into question now is whether we see a full-blown

resolution, kind of earlier -- early into this year or whether this extends into next year and turns into an election issue, and i think that the market's response is going to determine that if the market drops another 10% we will likely hear approximately seemakers dial back the rhetoric a little bit and we'll get to a better place and i do think there's something going on right now that is unnerving. if you look at yield prices and the slope of the yield curve everything is telling you that we're heading into a recession and the equity market is holding up better, but it's not necessarily the cyclical stuff pulling it higher. >> sub 4% unemployment we'll see friday and the adp didn't help and that number has been so off now and again. it's 275, i think, last month. >> right >> and that was validated by the real number that came out on friday this was an important number. >> right. >> -- i guess on friday, but you think that the psychology of --

because the trade stuff hasn't filtered in, but do you think psyc psychologically that caused corporate managers to pull back? >> we're already seeing that the companies that are guiding above versus below planned capex expectations, from january through april, these numbers were great and everybody is, like, we're going spend a lot more than you think we're going to spend and then in may all of a sudden we saw a nosedive especially in industrials companies and tech companies so companies are already saying i don't know what the world will look like next month or next year so why would i start ramping up my factory building at this point? >> so savita, based upon that how would you then judge the change in earnings revision downward >> yeah. >> it seems to me you put out a note that you were downgraded. >> we took down our numbers and let me tell you, we took down our numbers simply on the direct impact of the tariffs. so this is basically the extra

bryces th prices that we'll pay for mexico and china stuff as well as potential hits to our exports and we're not factoring in anything indirect. some of the indirect impacts could actually be positive for u.s. earnings, right the whole point that we're doing these tariffs in the first place is to bring jobs back to the united states, and if that actually happens, that could be a huge spigot of growth that nobody is factoring into it. >> isn't it too tight? the adp report this week >> look at automation. robotics is still a thing. we haven't fully automated anything there are huge gains to be made here and i don't see this happening in the next six month, but i think there is a longer term, potentially bullish theme that we're not factoring into any estimate. >> they're saying good-bye i think they are saying to you i don't think you want me to leave. >> where are you going you have another 45 minutes. >> savita, not me. i'm staying.

savita, thank you. are we heading into a recession, guys >> i don't know the answer to that, but i'll say this. why would we look at recession to say it's such a bad thing and it's a natural part of the business cycle and it's not such a terrible thing to go through recession? it should be a natural part and it should happen every few years or so and we talk about it like it's a horrible thing. i will say this, with the fed trying to stave off the recessions they've made the downturn that much worse and they've made u.s. corporations in large part lazy because they don't have to focus on their business and they buyback the stock and pay a dividend and everyone is happy. give me an example, go over the last ten years and look at ibm, as well. >> gosh, you're sour >> i'm not sour! [ crying ] >> we've got to go dysfunctional companies on their own. >> he's angry, though, gosh! >> i'm not angry as happy as i can be. >> mel will be back. coming up, walmart shareholder meeting had one interesting guest, presidential candidate bernie sanders

fighting for higher wages for workers and a man who helped build his case against most and he's here to tell us which big tech companies are at risk to be broken up. i hear an ambulance right now. that's why i said magnetic business cards call me! >> he's going to be here in a little while later, pete najarian is stepping up to the plate for his fast pitch and one name hitting an all-time high. we have much more "fast money" after this your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

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liam's heads for comforts is in the 80th percetile. oh that's cool. it's a lot of head. it's like you're the dad and i'm the mom and we're in a relationship and this is our baby. [ laughing ] well... it's exactly like that! exactly! asking walmart, the employees are asking walmart pay the workers there a living wage. you don't get rich on 15 bucks an hour, that's for sure, but at the very least you can live with some security and dignity. >> if you couldn't figure it out that was senator bernie sanners, it says here, after appearing at walmart shareholder meeting today where he called on the retailer to give workers a seat on the board and raise its minimum wage to $15. competitor, costco just raised its minimum wage up to $15 an

hour in april and target bumped its up to $13 an hour this month. how big of a risk is this wage battle two retailers and wages, the labor market is tight and it will happen organically anyway it's a moot point, isn't it? >> well, retailers are really getting stretched. we saw with them needing to have -- >> because of where we are in this environment i guess, you know, if you raise wages you will have that and i'm concerned about some of the retail elements out there. one thing that is working in favor for the retailer, if you look at what's happened with the oil move today look at gas prices which lag a little bit and that will be one thing that will help consumers be able to still, you know, americans love to shop so that's important to help, but i think the wage thing is real. i think it will be absorbed, though >> i think the wage thing, joe,

is real only if you drop it in the middle of a consumer staples sector in a big box store that has an unbelievably competitive landscape. look at kroger, who for example, who was cutting prices last year to gain market share and it helped somewhat. again, these guys are all in massive competition with each other and no one can compete with walmart who at one point led go of the ability or desire to compete at price. kroger has been raising prices and it's been killing vines and i was just reading this report that these guys are at their highest prices since july of 2018 and volumes are suffering with that. the consumer is sensitive and they'll go for price and they're all competing for each other and labor isn't input that's hurting them all >> i like the surge cical appro, hearing bernie say no one's getting rich at $15. no entry-level positions left. the worse minimum wage is zero

when there aren't any jobs and we seem to understand that wage price controls didn't work when president -- you guys probably -- when president ford when wage price control under nixon. it is a wage control and the market needs to take it. are any retailers still paying $7. >> probably not. >> no. >> have you seen what happens when you go to 15 in a city like seattle and suddenly businesses start shutting down? it should be organically in a strong economy people can ask for more money >> yes, i agree with that which is another part of that, do the retailers get hurt if they have to work -- >> you're looking surgically there will be higher wages if you look at a costco, which has had higher wages, they do get a better multiple because they've had better relations with their employees. >> so there is a virtuous cycle that goes on, as well and i think that walmart can absorb higher wages >> if you were to talk to bernie

and say, okay, i guess, if you said how about 50 an hour. does he understand that there is a breaking point up to a certain point where you start losing jobs and people at entry-level positions can't work it for more on their -- i think that means i need to read. got a little vertigo there for more on walmart and what's next for the stock, head on over to cnbc.com and in the meantime, here's what else is coming up on "fast money". >> i don't think anybody reasonable will come to the conclusion that apple is a monopoly >> not so fast, tim. the man who helped the government take on microsoft will tell us why big tech today is a big risk. >> plus pete najarian is stepping up to the plate for an all-time high today and he'll explain why there'mo rs reoom to run. we've got much more "fast money" right after this break you should be mad at forced camaraderie.

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welcome back to "fast money. apple spiking today after tim cook says apple will be safe if the u.s.-china trade war escalates, even if it does, but just as it gets potential relief on that fund its legal troubles back home could be getting started. i don't want this to happen, josh if there's something you can do. i look my apple stuff. leave this company alone josh lipton is in san francisco with more. >> joe, two app developers have now filed a suit in california against the iphone maker claiming they are compelled to sell their ios apps via the app store because apple has monopoly power, in their words over app distribution that apple has charged developers an overly expensive commission, 30% for nearly 11 years. the suit also claims apple

stifles innovation apple for its part saying it doesn't comment on lawsuits. this is another legal challenge for the app store. remember, just last month the u.s. supreme court handed apple a setback, allowing antitrust suit against the app store to proceed. plaintiffs in that case also argue that apple monopolizes the market and ceo tim cook has come out swinging flatly rejecting that argument. >> i think that with size, i think scrutiny is fair i think we should be scrutinized. i don't think anybody reasonable will come to the conclusion that apple is a monopoly. our share is much more modest. we don't have a dominant position in any market. >> you're saying you're not a monopoly. >> we are not a monopoly >> they're facing potential u.s. antitrust probes we don't know what the possible concern could focus on here, but

dan nyes of web bush thinks that the doj will be looking at whether subscription fees from developers and the use of that store are in any way anticompetitive. investors would certainly take notice if that happened and they represent 35% of that broader services segment joe, back to you >> thanks, josh. let's trade it >> katie hubert is my favorite analyst and she broke it down. the trade war being one of them and how much that could impact the stock itself and the other one was this entire topic and she thinks it's $13 to the stock. right now it's 231 she actually sees the concerns here so are they really hampering innovation i wouldn't think so, but tim cook makes a good point. i don't think you can call them a monopoly, either, joe. i think they have a decent share, but they absolutely don't have a dominant share to the point that they're not competition because there absolutely is. there is apple, samsung and the different phones in the u.s. and

when you go overseas they're not as dominant as people think. we would like them to be shareholders, but they're not. >> you would have to rewrite these laws for antitrust to somehow take in a woel differhoe different model. i pay zero for almost everything that i do on apple okay, almost zero, right >> by the way, i'm with you so far. if we'll go the euro model when we start thinking about competitors and oh, my gosh, competitors, there might be layoffs and that's not apple's problem. all of a sudden, what does facebook, amazon, apple, they all have something similar that causes them to be suddenly in the crosshairs why? they're good at what they do >> you're supposed to want to try to get a monopoly, a legal monopoly, everybody wants to use you. >> it's a fine line between where a dominant product is a dominant product because it's so far ahead of the competition >> one of the big issues for

apple is also not only alternatives to the app store and the china trade war and also just that there's a lower priced phone that's almost as good as the iphone and so far it's been at a place where it's been really rivalling them at this price point. does that give them an antitrust dynamic? i agree with you, joe, but the argument is that competitors can't get in there and have a fair spot on the app store without apple dictating the terms. >> it reminded me, it reminded me a little of net neutrality and they spent billions of dollars building out this pipe and then they're not allowed to charge people for what they built out. there are costs to things like this the market can dictate -- didn't you say to the right of me is this one of those -- i said i'm sitting to your left like everyone, but i don't understand

this >> regulatory scrutiny piling up there's one name that's most at risk and the antitrust attorney and silicon valley that led the push in the government's case against microsoft and he join us now and gary, we were talking about you on "squawk box" on the microsoft case that it probably did eventually effectuate new things and it needed a new ceo and needed ballmer to build a moat for years and years, but there was something positive about the axe that was taken in your view. >> i think it was extremely consequential. if you go back say 14 or 15 years before the smartphone and microsoft had 97 or 98% of the browser market, the only way to get to google was type dot, dot,

dot microsoft.com. and there was no reason microsoft could take you there they could have put up a warning screen telling you don't go to this site. it steals your personal information without your permission and had they done that, they would have killed google in the cradle why didn't they do that? i've always thought that it was because of the rick of additional antitrust enforcement and they were already under water and about a year ago the new york times went out and interviewed microsoft people and they said, yeah, that's right. we didn't take those steps because of the fear of antitrust enforcement. so that opened the market for google and facebook and amazon in a way that they would have never flourished >> and you think now google is in a similar position. i'll tell you why i keep coming back to you, gary, and that is the golden egg and the goose, and i look at europe and i try to think of a great, innovative company that has changed the world in the last 10, 15, 20 years and over here i can come

up with, like, ten of them over there, what have they got sap? why do we want to -- it's a fine line to walk between making sure that no one is unfairly hampering competitors, but you don't want to hurt great american companies that have given us great stuff where consumers haven't really been harmed >> so you certainly don't want to imperil innovation, but i think your framework is a little misplaced here all of my clients have always been american companies with perhaps one or two very minor exceptions and they're american companies. they deserve the right to compete in the american marketplace. if you go back and look at what google did you will see that the ftc inadvertently released a huge portion of the staff report a couple of years ago to "the wall street journal" and "the

wall street journal" published it and it said what google was doing and it's bad stuff i mean, they were putting their own properties ahead of competitors, even when their own algorithm said that competitors should be first. they were making lists of competitors to demote in the search results and even with theth algorithm wouldn't support that. it was bad stuff and it wasn't fair competition. >> they said they would never do that and never do evil and they were never supposed to we'll have to have you back. i'm not allowed to do that come on "squawk box". >> we'll have you back on fast, gary >> because we want to talk about it more and you've got some insight here i'm ready to just -- i love these companies so much and i'm ready to say have at it, but anyway, you make some very good points and we'd love to have you back let's trade it who wants to talk about it >> one of the points that he's

getting out with google is he thinks they're most at risk and google right now is trading like the most at risk whether you think so or not. what are the remedies? there are those that think there are a number of properties at google that you could spin out including youtube which is very undervalued and would be creative to the valuation. >> i'm sorry >> why can't google have youtube? i don't understand that. why? >> it's not that they can't have it, if you asked shareholders what they would want they might be in favor. >> that's fine if you enhance shareholder value and i don't know how that gives them some kind of -- what's wrong? huh? you've got anything? >> what have you got >> it looked like he was paining. >> i was just thinking about -- >> thursday cannot come fast enough anyway, still ahead, stitch fix soaring after its earnings report and that stock on an absolute tear this year and i'll tell you what's behind the move and plus, pete's bringing the heat the pitch one staple stock that

could put a little pep in your portfolio at a new high today. the name when "fast money" returns. dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias?

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welcome back to "fast money. consumer staples rallying alongside the broader market

after posting its worst drop of the year yesterday and pete najarian has left the set. he says that he's even more impressive he says there's one name in the sector that's headed for an even bigger pop look at that man he's jacked. >> i'm going to pitch a pepsi and here's why i love the ceo and the fact that he looks like he's brand new and he's not brand new and he's been there for 22 years and he's been working regionally around the globe and he has great exposure internationally where 57% of the revenue comes from so i think he's the right guy at the right time and that's exactly what we talked about when she stepped down. the dividend yield almost 3% is pretty phenomenal. over the last ten years they've had the buybacks by 10%, as well and the stock trades as a very fundamental p-e presently and that's important to me the fundamentals are all there the snack business is absolutely

booming. it grew 5.5% year over year in the last quarter and that's now 40% of their profits and this is a company that seems to be moving in the right direction and if you look at the last decade you're look at earnings growth that's very impressive as well and this is a company that's growing and it's not growing at any type of a tech type level and this is a company that's still growing and still grinding it out and for the value, this isn't a trade and this is long term and i've been in this for over a decade now and i think pepsi is one of these stocks that continues to grind and grind higher and i think that's part of the whole growth story and some acquisitions including soda stream so i think they're doing the right things when they can and the mix of the snacks along with the soda i think that all comes out very favorable. here's the thing if you just looked at the short term you would say that's too much, but you go back and you can actually see and it's not made the move that a lot of people expected.

that's what i'm beilooking for, though a nice grind that's what pepsi gives you. >> who has questions for pete? >> ultimately it comes down to if you look at the bright spot in the snack business and there's competition out there and the comps are difficult and you're paying for this company >> right now presently, it's trading at 14 and 15 and the forward might be edging toward 20 and the growth is not huge, but where the growth is right now i think can support where it is trading and i still think there's plenty of upside in terms of can they make more acquisitions to diversify even more i think absolutely as a matter of fact, keep an eye on the cannabis world. >> no more questions time to vote >> are you buying pete's pitch on pepsi tim. >> i'm done with my picture of pete holding the green pepsi and i'm a buyer and i'm a believer in pepsi this is one of the companies that's been a global leader in the snack business and the ability to diversify the business and they're building in

the demographics >> he's very good. i'm terrible, actually, but i'm a buyer, as well i think in the near-term that global growth will probably hurt them with the $where it is, but for the long term i like the story. >> you have a red sky? >> it's the pepsi logo. >> i'm not very artistic, as you know and petey will tell you, i love fritos. if you like coke at 22 times forward earnings you have to like pepsi at the same and it's got room and i'll tell you this quickly, goldman sachs has been so behind the eight ball on this sucker they just upgraded it to neutral from sell and they need one more upgrade >> i was going to say what's your favorite tos? >> cheetos, tostitos >> i like them all i do i like them. >> he looks like it. >> i like that sound effect. i really do. >> the desk -- is that beevis?

the guests have spoken and are you at home buying pete's pepsi pitch? vote in our twitter poll we'll reveal the results later in the show, plus check out stitch fix which is surging after its earnings report and one of the top performers in the retail sector this year and we've got more on that move right after the break. at cdw, we get that modernizing your it infrastructure requires deep thought. so quit staring out the window, and give cdw a call. they'll assess your infrastructure needs, then design and implement a modernization solution using fast hpe gen10 servers, with security features built into the hardware. and provide hewlett packard enterprise proactive care services, 24/7 monitoring and support, to keep your infrastructure agile, healthy and reliable. for modernized it infrastructure,

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welcome back to "fast money. stitch soaring nearly 30% after its earnings report. leslie picker back at cnbc headquarters with more leslie good morning that's what i normally say >> good morning. it's weird to say good evening to you i don't know, what time is it? 5:00 somewhere anyway, joe, stitch fix's call is ongoing that stock surging after the company beat on both the top and bottom lines showing a surprise profit of 7 cents when the street was expecting a loss. it offers online personal styling and last year startsed a subscription service called style pass instead of charging $20 for a style fee. the style pass costs $49 a year and covers all their style fees. style pass's renewal rate exceeded and contributed to revenue and newer retention. stitch fix, you're right, it is hard to say has been expanding in other new areas as well, men's kids and in the uk lake was asked on the call by

expanding to rentals and she said it could be a future opportunity for the company. stitch fix's stock price surging more than 30% on today's earnings and it is common to see significant moves when stitch fix reports the last four quarters including double digit percentage gains and losses. the volatility is largely due to the company's small float and large amount of shortinterest. >> crazy, leslie 30%. thank you. >> let's trade it. >> i mean, there's a lot to like in this. there's not a lot to like if you were short stitch fix which is most of the reason for the move. so i think it was 24% short interest which is enormous so big revenue numbers that's great for them. good retention numbers and they guide higher that's all good. for me i could never get onboard and just the valuation even here, lower, higher than where it started the day or where it ended the day is too high for me and good for them for getting some momentum. i don't know what you would do

if you're a short seller here. >> it is small the float is small. >> the dynamics are bad. >> there's enough guidance and good news there in their outlook to say they've turned a corner here or justifying that multiple with the growth, so agree with karen, but wouldn't chase it >> we have to keep moving. beyond meat reporting earnings for the first time tomorrow and that tock soaring despite falling today, up 300% dinse since debuting on may 2nd and the options market says another huge move which guy had after eating one of these burgers, could be coming. ♪ >> mike ko is out in san francisco. that's true, isn't it? that's 100% true i'm sorry, mike. >> let's be sure to move on from that one okay so, yeah beyond the options market is implying a big move here about 14% and you were just

talking about stitch fix's large and short interest and it's higher and beyond about 35% and that might account for the very unusual trade we saw today which is the purchase of the june 155/160 call spread. the buyer is expecting a very short term and severe spike and that could be betting on some kind of short covering after they report earnings tomorrow and again, it's implying a 14% move and overall because of the options market is predicting that the thing will go lower june and july, maybe 4% to 6%. >> you had one, t-bone >> you had one >> look. look, yeah, i absolutely have had one. everybody wants to eat less red meat i wish these things tasted better than they do. when they make a porterhouse and start making pastrami i'm

onboard. >> let's trade it. >> great >> do you have insight >> i have a lot of insight and its for a different show, dr. oz or something. >> if you were fortunate enough to get in on the stock after it opened at 46 if you sell half your position you're in it for free and i'm preaching what pete talks about all of the time. trade the stock, don't let the stock trade you. get out at half before earnings tomorrow >> okay. very good. for per options action, check out the full show friday at 5:30 p.m. eastern or head to the website options action.com plus check out the pot stocks are on fire this year. bank of america doubled down on lle of those names and we'll te you what has them so bullish when "fast money" returns. ♪ ♪♪

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call reputation defender at 1-877-492-6705. chloe, why is there a lamp shade on your head? shhh. my owner might have given me a little bit of catnip. uh. [ laughing ] that's great. listen... it is great, gidget. everything is grand. [ meow ] [ purring ] [ growl ] are you finished? [ cooing ] that was weird. oh sister it's going to get way weirder. welcome back we actually have breaking news on the trade talks between mexico and the u.s. and kayla tausche is outside the white house with the details kayla? >> joe, after about 90 minutes' meeting between the u.s. and mexico delegation nbc news is reporting according to a senior administration official that there is no deal that has been

reached and this is largely consistent with what we've been hearing about the expectations for today's meeting given that the president is overseas as is much of his immigration policy team and that being said, we did expect there to be some ground broken, some compromise, perhaps, discussed on how to move forward we are still awaiting any statement from the white house and from the delegation that was negotiating, but according to nbc news at this time a senior administration official says no deal to avert those tariffs has been reached joe? >> definitely need some color out there, kayla i don't know when we'll get it and we'll see how the futures react later tonight. i don't know how much we were counting on it after navarro, i thought there might be something, right? >> navarro's comments this morning saying that the threat of the tariffs had definitely gotten mexico's attention and brought them to the negotiating table and that being said i was told by a senior official that today's meeting with the starting line for negotiations

and not necessarily the finish line and we know the president likes to be the closer on his own deals and given that he wasn't in the room that would make it hard >> we just heard fitch downgraded -- on what is that called the lower third. >> everybody's got one >> he just said lower third. >> downgrades mexico's trading -- >> i'm not allowed to mention that there's a show called "squawk box" in the morning -- >> you did >> up next, final trades (osamah) cancer is... the ugliest disease mankind has ever faced. (henry) i thought it was unfair. when-- when you hear those words

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♪ ♪ time for the final trade let's go around the horn, pete >> i'm going to give you dropbox. giddy up huge buying in there call, upside i think it's going higher. >> lockbox >> dropbox >> pete? sorry, tim >> i was so moved by pete's power fast pitch for pepsi i'm actually going with coca-cola. in this environment when everyone bristles at this, it's what you want to own. >> karen >> even with the two-day rally, i am concerned about this market and i'm concerned about this trade and these headlines don't help and the s&p puts and the vix is too low here. >> nice. >> how are you feeling, guy? >> i feel fine i so enjoy having you with us at 5:00 >> i know this is hard

i have to have you at 3:00 in the morning, but thank you on behalf of all of us -- >> on behalf of us all >> costco trades really well, joe kernen my mission is simple to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome into "mad money. welcome to cramerica i don't want to make friends, it is my job not just to entertain, it is to teach so call me at 800-743-cnbc or tweet me at jim cramer welcome to bizarro