inflation number realized that's the next big thing and it was soft which bodes well if you're praying and hoping for stimulus. >> it wasn't so decisive any it's pretty much on trend. >> below target and softening. >> absolutely. july could happen and it doesn't make it a since. >> we are out of time. thank you for watching and that does it for closing bell >> "fast money" starts right now. i'm melissa lee, tonight's traders, tim seymour, brian kelly and steve grasso on the big show tonight the last beyond meat bull just backed down she'll be here to explain what has her waving the white flag, plus stocks sitting below record highs and one top strategist says there's a new trump trade and she'll tell us what it is and why it's your best summer bet and we'll start with the facebook fallout, stepping back into a bear market after a report says there are e-mail showing mark zuckerberg knew about the company's privacy problems and this as the house

judiciary committee on fake tech moves forward. is there more pain ahead of facebook and in turn, the market rallied. tim? first, just talk about facebook it's the function of big tech and it's a very big way and they're holding and there's a scarcity value in social media, despite of all facebook's troubles in the last two years it's a stock that a lot of people feel very comfortable owning because the valuation is hardly demanding, but that to me is part of the reason why facebook's valuation is hardly demanding because people do believe that management is a step behind on the cyber story the trust issues and i think the privacy and the data issues are still things that plague this company and it's not surprising to me to hear that this is information that's coming out now and the market probably has priced a lot of that in, however, and it's a big weight and i do think big-cap tech during a dangerous time for markets and when we have so much outstanding right now, big tech

should be defensive and valuations overall aren't bad and this is not what you need. >> it's up 32% year to date. so it's very difficult to start feeling sorry for facebook i agree with all with what tim said, but i think it's mostly in the name already and i don't think these congressional hearings -- >> i don't know about that i think there's too much uncertainty here and that's the problem you have are advertisers going to start backing away from facebook and i'm not necessarily saying they are, but as a market partis plant you have to make some assumption that there will be uncertainty out there and we don't know what they'll do and this is a great market environment and this is not a great development for facebook i think what we learned today and the reaction underscores this notion that as the investigations go on, theshgs can be uncovered and things can be revealed to the public that show that maybe market zuckerberg knew about privacy actions and this particular e-mail highlighted by the wall street journal wanted after the

consent decree announced before it was enacted and it collected user data and the user data in turn, shared on that app despite what the user said in terms of the opt out in privacy he asked about it and so he knew that there was something there. >> they're cooperating with the government as far as the inquiries go i'm not concerned about that >> they've set aside 3 to 5 billion for the fines and they have to do everything they have to to stay on the right track and the opportunity in front of them is commerce through instagram. so we talked about some of the advertisers. i mean, if you're nike and you want to sell a shoe direct to consumer, there's really no better way to do that than doing it direct to consumer on instagram if there's a commerce platform rather than running ads and having people go off the platform to your website, it's going to be nice to have that commerce done right there. >> i don't think there will be

anything done through the congressional hearings and both sides and it's definitely a democrat and republican concern so it's bipartisan that they want to crack down on social media, but they're willing to listen and they're willing to ask and they're looking for the photo-op and i don't think they're willing to do anything >> i don't think congress will get their act together to do anything per se, but can there be damage done to the stock and volatility introduced into the tape as the investigations go on and as things are revealed >> can they execute on their plan to integrate all of the platforms that they want to do will they now have too much information for people will advertisers back away from that or balk at that all of that uncertainty i don't think is in the stock. i think today was just the beginning of it. at the end of it, if it all comes out and advertisers never backed away and there will be a huge buying opportunity in facebook it's just not today, in my opinion. >> let's look at the triple qs as a function of the overall market and if you get into

apple, amazon, facebook and google, those are four companies that will make up 32% that all have some headline over the last two weeks, three weeks. >> as far as investigation. >> and you throw in the fact if there are three things that you're concerned about apple and one of them is truly just a hard wear issue and the other one is truly china pushes back and the third one is if there's no reason to go to the app store or there's pressure on the app store which is the regulatory headline it's all traded so well and the most important thing is what happened in the last six or serve sessions for big cap tech, you outperformed the s&p and you're up 10% on the qqqs and it's all about positioned and you went from oversold, whether it's qqqs and the semis and they are getting back near december 24 lows to getting back to 65 or 70 on an rsi which means you are almost in oversold territory

>> first of all, overbought or oversold as anyone can unwind itself >> quickly i think it can relief itself and the market will move higher which i do believe it will, people will have to reach for these name, for tech and consumer discretionary and these names will be in the target zone for everything that we just talked about and i don't think it's a tremendous headwind anymore. >> i'm less concerned about tech than i am with the stock market right now because if you look at the equal weight s&p and you look at it from january 1st until today, performance has been about the same, but when you look at it from february 20th until today, the average stock in the s&p 500 has been underperforming the overall index significantly, and if you can't get a broad-based rally, i think that's trouble ahead for the market >> i don't know the answer to this and in a couple of minutes i would pull up the chart and in the longer timeframe, isn't that true all of the time, though, that the bigger cap stocks have outperformed in this era of fang

and isn't that what we've seen >> you tend to have this concentration in really crowded positions. for me, if i look at the market and the last three days i come into the office and i see the market trade up by the end of the day everything is faded and that is terrible price action in the relatively short term. add in all of the news that we got today and we'll broaden this out and there are some problems. >> we had an aggressive move. >> what i'm saying is that people should give a little bit back and to mr. tepper's point, when you look at the xlk and look at the tech in etf, you've had a terrible month and you've had the rip roaring rally that we've had and there have been other sectors that we have had the defensive names and the utilities names and the real estate names and those names have done heavy lifting. >> are we degree mr. and mrs. on the desk i want to get this down. >> if i say david it's the wrong

name >> since we're talking tech and weakness there, and there's no recovery into the second half of 2020 >> look, go back to first quarter earnings listen to the people that you wanted to listen to. listen to the guys that want to talk about the chip cycle and whether it's texas instruments and whether it's intel nobody had anything -- let me tone down the hyperbole. it wasn't constructive tone for most folks, okay so when you layer in the fact that some of the leading spending and the capex and because of the trade war or whatever we're calling this i don't think bodes well for semis. if the chart guys are here and we traded right back up to the 50 which is now resistance and in fact like clockwork it traded up i'm not saying that you have to touchdown another 15% on semi, but it's hard to get very excited on this trading range. >> the semis and the strength that was in the semis was not

consistent with the export data that we saw coming out of asia which is where a lot of the semis are coming from and there was a disconnect with the underlying macro here and add that to another pile that makes that a risky bet at this point. >> the same way that facebook, it wasn't in the name. i'm going to say in the overall market and that to me means tech and macro, the s&p and we ran up and we ticked above the 50-day moving average and settled back down right at the 50-day moving average right now in the s&p >> we can even trade down another 70 handles and still be in great territory to rally. >> it would take a long time to shake you out of your bullish position >> you are willing to sustain down 70. >> we are much more than that and only 50% retracement from 27.22 up to where we were, but for me, i look at the trade headlines are better or worse

going into the end of the month and we know that rate, although they might not be cutting immediately and not raising in july so we have that still on hold, so we do have a backstop for me and i do think this limited down side to the overall market don't you think, steve that we have a case ---ed if futures are down 9% for july or before we don't get that. equities are pricing in higher multiples for the s&p based on rates right now. >> it's 81%, but the problem is -- >> mr. grasso will call me a liar >> mr. grasso, sir >> here's the problem, though. we know they're not raising so are we going to short the market based on the fed not cutting rates? and the answer is no >> 100%. you're a cowboy. the rest of the people aren't going to do it because they got their faces ripped off when we

traded from 27.22. >> we're not at 27.22. >> why do you think we ripped so aggressively >> because -- it was because of the fed. if the fed doesn't do what the markets think, then what happens? >> the reason why we ripped so much higher based on the fed was that the marketplace was caught off balance. they were not -- why would they be caught off balance now? they're chasing the cover and they're not going to get their faces ripped off and it's coming whether it's coming in july. >> your face looks pretty good >> thank you, doctor >> you're welcome? >> i would just say this and i would look to look at things like the bull-bear industries and the aaii, and whatever you want to look at and we're not at all-time bullishness and we're certainly a lot closer to highs on bull industries than we are near the bottom, and it's all about positioning for me right now because i don't think you

have a play -- >> if you passed me a note with the future holds and they said mr. seymour, the federal reserve will not cut greats by the july meeting, what would you do today? >> i would certainly be preparing my book against the interest rate-sensitive cyclicals and they've gotten a boost on that because the perception is that it will immediately drive growth so no, i don't think if the fed will cut and if it's at 81, the market is telling you, the bond market is screaming rate cuts and i'm not sure it's right, but that's up to the fed >> tech takes a hit, the s&p is about 2% away from all-time highs and this is the time to get defensive because things are going to get ugly. let's bring in michael cant cantorwitz good to have you why are things going to get ugly >> we're in the business cycle where leading indicators and

coincident indicators and lagging indicators are starting to fall. that and the conference board's indicators of macro data is a lagging data point the point is it's hard to find data that hasn't already peaked and is not getting worse and so i do think the fed will eventually cut rates because the data, is it going to be bad enough to warrant that and we think that will be met -- >> if i slipped you a paper that said mr. kantorwitz, what would you do today >> the market has been aggressively pricing in cuts and i think if they come out and surprise a little hawkish, but i would be in staples and healthcare because the data is still not getting better and we think it will continue to weaken and maybe the fed is behind the curse. >> how much of this performance can be contributed to dollar strength from 2018 until today and now with the fed set to potentially ease we could look at a dollar

potentially weakening and quite frfr frankly, there might be cyclicals to outperform defensives. >> why has the dollar been strong it's been strong because the global economy has been weak the canadian dollar, the mexican peso, the euro and the australian dollar. nothing is rallying because those economies continue to see bad or worse data. if the fed cuts rates we're likely seeing rate cuts elsewhere around the world as well so you're not going to see a big change in the interest rate differentials and when th market becomes risk averse the dollar intends to do well. >> so in light of this ugly scenario that you're envisioning, you have the trump trade and it's not dan's maga thing that he talks about all of the time it really is t-r-u-m-p >> it's a bit of a different trump trade than the 2016 trump trade. it would be more defensive

treasurys for t, tlt and reits, xlu for utilities and mtum, momentum on defense and precious metals, gld. so t-r-u-m-p. >> i feel like you make up the m. >> momentum may not belong and this is the notion of the idiosyncratic growth trade >> momentum has been more driven in the last six weeks by defense more than growth and so we're now six months past the v bottom of the market and the low end of the market and so what is momentum today has been increasingly defense and low beta utility staples and reits and not necessarily tech and certainly not the cyclicals. >> mtum, that etf isn't that mostly tech? is that mostly technology? >> momentum in general, but there's some tech and momentum is going to change and momentum is what's worked over six months

and 12 months and the names in the momentum portfolio will change off of recent performance. gold has been a widow maker for people that chased into gold and this is four or five times when gold should have been breaking out. why is this time different >> i think this time is different that due to the fed's tightening cycle is still a negative headwind that will be with us, we're seeing the broadest global slowdown in the last ten years and the closest risk of a recession that we'll see for the next ten years and the dollar will do well in this which a version, this we haven't seen. >> even if the fed cuts interest rate again in july and again in december you don't see the markets

picking up overall if you see the areas of disappearing yes. places where they're doing well are in the 70s where the fed had to hike rates in the recession and the fed eased and where consumers was borrowing like krauzy >> michael kantorwitsprshltwhere, what do you think i agree with the utilities and the staples. if you want to play that against as a safety bet in terms something will go wrong. i think the market will back up a little, sideways to lower and then will rip higher and in those notes that you were passing as you said before if there was a positive trade headline on one of those, nah wi that will be the next trade. >> i always got in trouble for passing notes. >> i never passed notes. >> of course, you didn't >> to help the folks out at home

instead of the silly note talk i would say this is a trader's market and we've seen massive rotation between sectors and between industries and so i think looking at this trump trade, put that on one side of your trading ledger and sa when things look weak and scary, maybe that's what i rotate into and where everything seems really like it's falling off and then you might want to look back at tech again. >> when it comes to defensives the only sector is healthcare because it hasn't participated in the rally this year and i do prefer cyclicals and i do think it's a playable move and it's not a sustainable move and over the next six to five months. the stock soaring after reporting earnings and the ceo on the conference call >> plus no bull, the last standing wall street analyst just backed down she will be here to explain why. mark tepper stepping down to the plate for the one name and we'll

be here to explain why, live from times square two minute away

welcome back to "fast money. check out shares of lulu lemon soaring in the after hours and

sarah eisen covers all things at leisure and she's been covering things at the new york stock exchange hi, sara >> the star of this report is 16% com store sales growth, well above expectations what drove it? ceo calvin mcdonald just said mens continues to be a strong place in this business listen >> within the men's business, comps grew 26% with ongoing strength in both tops and bottoms. the business was led by our abc franchise and three core short styles the main driver continues to be our core categories across both men's and women's, however, we've identified several areas of what space where we can test the waters and bring innovation to our guests? besides men's it was a story of international strength e-commerce strength continues to be double digits and that white space includes the new self-care products, shampoos and

deodorants that lululemon is getting into they're going to open 50 new stores for self-care initially the stock took a hit coming in at the lower end of expectations on the numbers and a little more color on that. the cfo just mentioned that it does take into effect, melissa, what they call indirect effects from tariffs in other words, they don't have a ton of direct exposure to china in terms of demand or production it's the fact that they are having to move to airfreight because the port congestion in asia is getting so crowded because of tariffs and anticipated tariffs and that's costing them on margins and earnings so interesting color there on how the whole trade fight is impacting a lulu which says even if the next round of tariffs go through, that's where apparel and footwear can be included and they're only exposed by 5% of finished goods back to you. >> sarah eisen from the new york stock exchange athleisure stocks taking off shares of lulu, adidas up around

40% while nike is trading up 11% and still at all-time highs and should investors chase this run in athleisure, tim >> you can athletic and you don't have to be it these days, so why not keep going this is a stock that's been a total beast and trades at 45 times and the numbers are tough to live up to, except for i have to say that those same-store sales comps of 16% that's extraordinary when the mens part of that overall spectrum of product lines continues to grow ask digital has been a major driver for these guys and i would say i'm not running for the hills, but this stock has been on such a massive run they think athleisure is back, and that's great. look at nike you name it. i'm not buying it here >> you're talking about the best of breed and flawless execution and if this thing were back at 150 bucks and i believe in the growth story that much and it's uft too expensive and it's come

too far too fast. >> it's up 40% year to date and does that move up reflect the good news that's in it they released a bunch of initiatives about a month ago and we've heard them all and it was by 2023 and they wanted double and quadruple international and i'm perplexed about the guidance that they gave so it was juxtaposed with it and i think this has been the winner and you wait until it backs up a little bit and it has been overpriced and you can see if it breaks sustainably above 180. but in an environment where you don't have a lot of growth choices this company has growth. the one thing we haven't mentioned is otc, trail commute. >> what do you wear? stretchy pants >> like a jegging for men? >> seriously, what is that

>> office travel and commute >> that's why the men think it's okay to wear pants to work. >> if you have to wear a suit to work, maybe you put on a pair of stretchy pants for the ride home >> stretchy pants. >> my, my, things we learn about b.k. i'm melissa lee on "fast money" on cnbc. here's what's coming up on america's post-market show >> would you like to sample our vegan bacon? 100% meatless >> y please. >> like it or not, the meatless mania continues and the only wall street bull on beyond meat is backing down. >> sir, is there a problem >> i'm just making sure no one ever has to eat this. >> she'll be here to explain why. >> plus, the rookirerne tus. mark tepper is stepping up to the plate to pitch one beaten-down stock he thinks is headed for a breakout.

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welcome back to "fast money," it is official everyone on wall street has a beef with beyond meat. the valuation is too high and too volatile not a single firm on the street recommends, a buy, and it is stuck with no buy, no sells and eight holds. the analyst behind the downgrade joins us now alexia, senior journalist at bernstein. you are still confident about the growth prospects of beyond meat. >> oh, yes absolutely >> where should it be trading at right now? >> the trading range has been astronomically volatile as you mentioned now. when you looked at comparables and you can't look within the food space because the old,

tired legacy food companies are just not growing so you have to look outside of the sector and we looked at pure circle out of europe and the stevia company that's based over there and we also looked at the cannabis company looking at canopy trading between 13 and 17 and ev to sales and we basically looked at where the stock is trading today for beyond meat and it's simply feeling too stretch and trading at 31 times sales at the moment and that feels a little bit overdone >> that should be mid-teen >> we faced that at 123 with 17.5 times the forward sales estimate. >> when you think at the long-term prospects of beyond meat, what is the total addressable market >> we are looking at $40 billion over the next ten years. look, the meat market in the u.s. is about $270 billion if you look at the nut-based milk market developed and almond

milk when it took over from soy mill being that's taken 15% of the market over the last ten years. if the plant-based meat market does the same thing that would give you a $40 billion market in ten years' time. >> if you would make the comparison to the nut-based milk market nut-based makers never traded like beyond meat nor will they ever even if they were able to capture a sizeable share does, that earn them any sort of a premium multiple >> i think we had soy milk around for a long time so those nut-based milk makers were growing at a high single digit make and it's more than doubling last year it did $88 million in sales. this year it's expected to do at least $210 million and we have the news this morning that tim horton's is rolling the breakfast sausage product out across canada, so there's a much more rapid growth here >> so how big is the moat that this company has i know the direct competitor is foods and can other food

companies reproduce this because with the nut-based milk it seems like you press a bunch more almonds >> i can throw almonds in my vita mix and have almond milk. they launched their first product in 2016 and this has taken a long time to develop, but as you look at the plant-based food market as opposed to the plant-based food market it's more difficult to get right so the moats will be bigger however, you will not get private label products and a ga zillion tiny companies getting in because the rnd is too high the tyson and nestle companies with deep pockets are trying to get in and we have nestle launching with mcdonald's as we speak, for example >> i'm curious about how you think whether or not or any of the competitors can capture the total addressable market because if you think about them, this is what i run into in terms of the people interested in beyond

meat they're vegetarians looking for another alternative and they're concerned about the environmental impact of eating meat and they're the meat eaters out there which is part of the biggest part of the pie at this point, but in order to capture the meat eaters, don't you at least have to make a product that is nutritionally compable or bitter or cheaper or even at par in price those seem like tall orders because they compare the nutritional value and it is not clear it me that it's actually better for you and it costs more money and i understand they'll be out there i know there are people out there who say you don't kill a cow and you don't have a big carbon footprint i get that, but still, these are very real choices. >> yay i really don't think it's a health and wellness play these products are still very heavily processed and it is an animal welfare play and a commerce change opinion. >> so the market is much ilsmaller then. >> possibly. you have a millennial generation

that are genuinely very, very concerned and the lift that burger king is getting as they put the product into the market. there clearly is an interest just trying to reduce the contion, and for other reasons and other values noop you will have to leave it there upon alexia howard of bernstein who was the last standing bull on wall street. steve grasso >> i agree with everything you said they're loaded with preservatives and five times the sodium content of a burger i'm just waiting for the campaign from the meat industry to start saying that these substitutes are plant-based meat substitutes are not healthy for you. so i think they'll have headwinds there. you're not going to have the same headwinds when you look at almond milk. almond milk, you made a clear choice it was not an unhealthy choice

for you, and i think you're going have a lot of people saying these are not healthy choices, but i would rather be with a tyson that could pull multiple levers and has deep pockets versus the beginning of the stock. >> mark? >> in order for this thing to take off it needs to be the healthy alternative and i'm not convinced that it is i've done all of the research on the opposite diet which is the p paleo diet, hunter, gatherer, fish steak. >> it doesn't fish for keet owe. >> correct, and non-processed foods and if you look at the blood work 30-years a part and i'm not sure what would happen to beyond meat. >> paleo, i don't know what happened to the show how about tired old mcdonald's that got into the fresh beef and kiosks kraft has no choice. there's nothing that keeps these food companies out of this market whether this is meat disruption or not.

they are best positioned and no way i would pay for this multiple. >> i don't know. i've had both. i had almond milk this morning and a burger on the way to work. >> and stretchy pants. >> the point to this stock and maybe you get a chance to buy it at 125, but there is a portion of the population that is curious about these new products and everyone who tried them said hey, they're not that bad so let's call them beyond curious, folks. i think there's still a growth factor there >> coming up, american airlines is the worst performing of the airline stocks down 30% in the past year, but next, we'll tell you what the ceo just said that has them pressing the buy button d ath rk will give us his pitc anwh stock he says is about to break down. "fast money" is back in a flash.

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>> welcome back to "fast money," time for a fast pitch. mark is over at the plasma with his fast pitch take it away. >> all right my fast pitch for today is alibaba because quite frankly, right now you have a tremendous opportunity to buy a stock on sale number one, you have access to

the growing chinese middle class. alibaba is basically the amazon of china and they're working with four times the total addressable market that amazon works with here. there's 1.4 billion in china and about 325 million people here. furthermore, the middle class in china, they're seeing rising incomes and therefore they have more spending power. so you want to have access to that middle class chinese consumer any then western brands want to have access to that chinese consumer and they do have access through one of their platforms second reason we like them underlying businesses. so the market is still pricing this thing as if it's just your traditional online retailer, but it's so much more than that. they have underlying businesses such as clout. they have food cliffry and they've got finance and their e-commerce business and their top line is actually growing faster than amazon's top line so 40% year over year on e-commerce and over 80% year over year on

the cloud and their most important asset is the user data and they have monthly average users and they're tracking each and every move they're making and they're able to provide that to third-party vendors so they can streamline and focus their marketing dollars and their marketing efforts to get the best return on investment possible and then the valuations are compelling, as well. so let's look at a couple of charts here. the first one let's look at amazon versus alibaba, and up until 2018 was outperforming amazon, but in 2018, what happened the dollar began to strengthen and emerging markets stocks began to underperform. alibaba's one of the top five positions in the emerging market's index so when those sell off this stock is going to pull back. since then, alibaba has underperformed, but we think it represents tremendous opportunity. so just a few, maybe a month or so ago this thing was trading at about $200 bucks a share and

it's at $160 right now they're growing the top line faster than amazon and ebitda growth is right in line with amazon and it's trading at a better valuation and rs irate now is right around 45 which shows that it's right around oversold territory so we like the stock right here rid now and love it at $160. >> steve's got a question for you, mark. >> so, mark, when you look at the compare sons on the charts you just brought up there, you could have tried a overmichl andentism and it's in lockstep with ali basha, and if they can have nothing, but rosy skies ahead. what happens if we get a negative trade line this plummets whether or not the fundamentals are intact or not >> i think right now, the rick reward from here going forward is very attractive and you've

pot a val wathz and i dofrng the stock will accelerate, and i do think it will value and i think that will be good for emerging markets stocks i think it's good for alibaba. >> no more questions i know what you'll say, but say it anyway. >> i have to say i'm buying mr. tepper's fast pitch here because i am long alibaba. i do think it is in the trade war last week and it's been volatile and the sum of the parts and financial and there are different levers to pull and i don't think they have the same regulatory pressure. >> b.k., brian kelly >> b.k. brian kelly is not a buyer for many reasons that people at the end of the desk talked about and i don't think i have the trade war tariff and i think this is right in the crosshairs and so not a buyer. >> i've been in and out of alibaba, and i am out of it right now, but i agree with mr.

tepper and i am a bare of alibaba and i see how the trade news shakes out. >> two buys and one sell and the desk has voted and it's your turn now and go to cnbc fast money on twitter and we'll reveal the final results later in the show. also ahead, it's been a turbulent year for shares of amic alieranirnes and we'll tell you what has investors rubbing to the stock more "fast money" straight ahead. ♪

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>> welcome back to "fast money," american airlines looks to bounce back from a turn leapt year down nearly 30% as the entire airline industry copes with the 737 max grounding let's get to phil lebeau in chicago with all of the details. phil >> one reason that we saw a bit of a bounce in american shares today is because doug parker was asked during the analyst meeting, what do you think about your company is it undervalued? want only do i think it is undervalued p undervalued, i think the entire sector is undervalued. he was asked about the 737 max and whether or not they were too optimistic expecting it to be back on the schedule in the beginning of september and season september 3rd is the date here's what he had to say. >> we wouldn't be selling seats today if we didn't think that was a highly likely possibility

and that's what we believe, we believe it's a highly likely possibility and that we'll be able to buy that service by september 3rd. >> just a reminder, you've got american, southwest and united all with the max being delayed at least somewhere between august and the beginning of september. now out at the code conference, ed bastion, the ceo of delta air lines was asked by carl quintanilla about the max. the question was, does he believe the question will be up and flying by september and october? here's what ed bastion had to say. >> i think it will probably be longer than anyone would like it to be. not only with respect to the faa and the certification issues and i just think that consumer confidence will take a while to come back. >> and what's the key to restoring that confidence? ed bastion, ed parker and everybody says the same thing in the industry it's going to take time. it will take not only the executives flying the market and just over time, getting the

public to say okay, they've got the fix in place and everything is fine with this plane if you look at the airline index. it will be a youf year these stocks haven't done much and a few exceptions and united being one of them and generally speaking, it's been a rough year for the airlines. >> the grounding of the 737 max not a good combination phil lebeau in chicago for us. brian kelly, where do you stand on the airlines? do you believe the 737 max will be in flight once again by the fall in order to be an investor? they're probably more exposed and if i'm talking about the airline sector in general. i just think you need a catalyst and they look like they're ready for a move, but the problem is i can't identify that catalyst maybe it will be lower oil and i doubt that's going to do it and i think the global growth concerns have hit these and i agree with delta airline's ceo and it will be a long time before the consumers are back on

these planes if you think about the capacity tailwind, yes, there's a pun intended there and you look at united and they gave us a reason for may through august quarter and basically, they'll see year over year, plus 3.5% capacity and they pushed it down, but because of the max you've actually brought that in about 30 basis points and you might put in more discipline they trade as if we're in a recession now. so when we get the recession, does that actually perversely make it almost a trigger to the upside delta trades at about nine times which to me is a recessionary level and as phil pointed out, they are in the middle of a range and take a look at our cramer cam he's talking revolve the shares of the millennial retailer i didn't know revolve was a retailer i'm not a millennial >> you're not? >> he's got that and much more coming up at the top of the hour still ahead on fast, the united

tech and raytheon, under fire as bill ackman takes aim at the potential merger and we'll tell you why options traders are fee.t g defense is the bes ofns we're live at the nasdaq in times square much more "fast money" still much more "fast money" still ahead. just the right elements coming together. it started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. it started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. it started with the markets, bringing together steel and buildings and silicon and medicine and rockets. we believe the possibilities of life and investing are greater when we come together. it's why for eighty years we've connected ideas with technology, data with inspiration, investors with solutions.

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welcome back to "fast money. check out shares of united technologies after getting slammed after president trump expressed disapproval with the potential merger with raytheon and as each more opposition from ackman, options traders are feeling bullish on the stock mike ko is in san francisco with the action >> it's common to see above-average activity in the options of stocks that are involved and raytheon and united technologies raytheon is up four times the number of calls and united technologies up more than six times the number of calls traded relative to puts and the most active amongst those calls and those were the ones that expire a week from friday and these buyers were paying about $2.40 so they're making a bet that would be up 2% and they're obviously looking to see some profits and i would point out one other thing that if you do see premium sellers and those are common in deal stocks like

this, these could be pointing that this merger would actually take place because they might be betting that the combined entity would have lower volatilitytha the individual stocks did before they merged. >> mark, you like defense? >> i do. i do i like defense i think that's a great area right now and you see good performance coming out of defense and i think that will continue as far as this merger, i think it's a great merger for both companies and it creates a 50/50 split between defense and commercial revenue so i think it's a good deal. >> general dynamics was my pick the other night figuring that a rising tide lifts all boats and this has been a laggard in the space. we do know when president trump takes a position on something he likes to be right. so i think he's going to voice a lot of opposing views to this. whether or not he has all of the facts or not, i think he'll be a headwind >> this merger goes through, more pressure on ge? >> i think so. >> this will be a formidable company to any competitor out there. i just think that the overall defense sector has traded poorly

relative to its health and this is the place to be in two years kind of into 2017 and boeing is front and center and some of that is the overall weighting of the indices and i just think there are people running out of the trades and they were worth paying for and at this point i'm not. >> i think there will be a chance to buy these and if you look at the political part of the analysis here, what are they not going to cut in the budget defense. so you want to be there. at some point there will be a chance to buy. >> for theulsh fda fl owriy 5:30 p.m. eastern time. up next, the twitter poll up next, the twitter poll revealed and the final trade i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale.

no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

time to reveal reveal the r of our twitter poll. it was the return of the rookie, but toni braxton he struck out again. >> the dance version, wow. >> 5% no to. 45% yes. there is always another time, mark final trade, tim >> i was listening to toni braxton on delta air lines yesterday. they are priced for recession. i own delta i stay there. >> the oil market. >> you know i like alibaba and i

loved it $160, so i'm bigging it. >> use that as your cell stop. mcdonald's. >> that does it for us see you back here tomorrow at 5:00 meantime, ad"m money," jim cramer begins right now. ♪money," jim cramer starts right now. field for all investors. there is always homework and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cray america want to make friends my job to educate and teach you. call me at 1-8 00-cnbc or tweet at jim cramer. even a small selloff, how do you tell the difference between a