that back to today's earnings they could restart shipments to huawei if they wanted. we'll have to find out if they will or not. that stock is up nicely, 10% higher we're out of time that does it for "closing bell. "fast money" begins right now. that's right, it does. "fast money" starts right now. live as always from the nasdaq market site. i'm brian sullivan in for melissa lee. your lineup tonight, pete najarian, tim seymour, rebecca patterson and guy adami. micron and fedex, both names have been stuck right in the middle of the trade fight fracas we'll hear what they said and how they're doing. >> fracas. >> fracas, fracas. >> energy, finding some energy, oil and gas, one of the best performing sectors this month. crude making a comeback, but how much higher can it go? a top oil expert is here it weigh in all that and more ahead. as always, let us begin with the markets, if you didn't pay attention all day, well, first,

shame on you second, it was a wild ride the dow finishing up and then finishing lower, all this because of what else, the federal reserve, fed chair jerome powell and other officials tempering hopes of a rate cut dow and s&p posted their worst days of the month. it was the nasdaq, some of your favorite tech stocks took the brunt of the beating the faang, bit microsoft, alphabet, down 3% facebook off 2%. you get the picture. guy adami. >> yes, sir. >> fracas, fracas, what do we make of what the action was today? is that how sensitive this market is to the fed >> that's the refor t rhetorica question the fact that we get to 2950 again and again and fail, i think it is problematic. we do it when the vix gets down to 15, pete can speak to that, levels where the last six to eight months the market has topped out i think the market is overestimating the power of the

fed. i think unless we get a trade deal, which i don't think we're going to get, i think we roll offer at these levels. >> you just gave a lot of numbers. talking about the fed, it also -- >> that's what we do here, brian. >> it sounded like you're also saying that it is not just the fed. technicals are playing some kind of a role. >> i think you have to take them into consideration this was a level that we topped out at in the fall, retested it, topped out again when the vix gets down to these levels, it has been a level with a broader market sells off from. the russell hasn't backed up this move to the upside. the transports haven't backed up this move to the upside. gold continues to rally. all those things to me are warning signs. >> tom what do you think >> yes, the bottom line is you got a dynamic worthy expectation for the fed. i think guy framed it well it is not that the fed is not all powerful it is completely the opposite. they are everything right now. when i hear bob kaplan put out a paper talking about the limitations of monetary policy, when i hear powell step back a

little bit, i think he did what he should have done when it looked like the fed gave us more than we could have possibly expected the bottom line is i don't think that will help this economy. i think that getting too neutral and staying there on the fed is very important the most important thing right now remains what we're seeing on macro data look around the world over the last couple of days, hasn't been good hong kong trade data not so good french business confidence not so good. you name it, bond yields, that's what you should listen to. having said all that, people want to look at double tops and this and that. and i don't -- i actually think technicals are very important. i think this is all about the fed right now. >> i totally agree at this point we have got four fed cuts priced in by april next year until today people pricing in 50 basis points at the july meeting. what justifies that? even if we had soft consumer confidence data today, even if we had squishy housing data today, the inflation number is not that far below the fed's 2% target we know it is a volatile series.

they're letting us know they'll probably give us 25 basis point cut in july, probably, not even guaranteed >> probably because last week steve liesman survey showed 100%, that's all the percent, of people surveyed, said we're going to get a rate cut and whenever there is 100% certainty on something, maybe don't want to be certain, it sounds like you think there is a chance we won't get a cut. >> look, if you have -- we have a lot of data next week, next week will get interesting again. we'll have the g-20 outcome, whatever that is, but then a nonfarm payroll report on a friday, after the fourth of july. >> opec -- >> opec, we have got manufacturing confidence coming out next week. there is a lot to chew on and earnings season will come up again. >> on a short week with low volume. >> right. >> we'll be doing "fast money" that friday, july 5th, i bring that up, i will be here. just to be clear >> pretty exciting to be here. >> i'm very excited, pete. >> five guys that -- >> hi, how are you >> thanks for doing your job

thanks for doing your job. >> great day to be here. without that liquidity, with the jobs number, with the fed in focus, there is a lot we need to digest as investors. i pulled that back for you you appreciate that. >> great to have rebecca on the desk for many reasons. >> i'll push back a little bit i get it here is the thing, pete, will do this tomorrow on the 5:00 a.m. show joining us, worldwide exchange if it was just our fed, why is china up, why is germany up, why is brazil up, why is gold up, why is bitcoin up? >> a little bit of everything, right? everything is up and we're all wondering why, especially when you're seeing weakness around the globe for the most part. a great question i think what we're seeing today, not that we're not going to get' cut, i still think 100% is pretty close to what i would put it at. somewhere very close to 100% a cut. >> 100% -- >> these guys have basically -- trump has to put it out there, we're getting a cut. i don't think it is 50 i think it is a quarter. so that's the one difference i think today that was the ship.

the ship was -- let's step back for one second right. where we down a lot today? were you just scared to death today when you're looking at the market because we went down 150 points virtually right off record highs. absolutely not this right now is fed driven, and everybody is also looking g-20, everybody wants to know is there going to be any progress with xi. there is a couple of other things i know you guys keep saying, everything is the fed. it is not everything it is not everything trade is still to me much bigger than the fed. >> i think red is more powerful than green sort of from a narrative perspective sometimes. but we are -- but we are in the middle of our best june in 70 years. >> 1955. >> we're down 100 points or so >> off the high. >> holy smokes, that's really terrible. >> this has been a pretty spectacular month for equity if we get up, if we move up every day, shouldn't that -- that's when we should be nervous. >> absolutely. we had a huge rally in june

coming off of may. low yields have helped that. people are expecting better numbers out of housing and other interest rate sensitive sectors. the housing data today gave people a little bit of pause around that story. i think the consumer -- is important from that number today is the jobs, plentiful, hard to get. that little number inside that data point softened quite a bit. and that's important because it is another data point to put together with payrolls just to make us say, okay, we need to keep a close eye on the labor market manufacturing soft, we understand that. if the service sector and the consumer gets soft as well, then we have a problem. >> and really quick, i think it is important because if you look at where we're starting to see deterioration of labor in the european union, the fed's comments on inflation, they have to -- where they were getting some pressure was from wages and that's disappeared as well >> so interesting, i mean, i'm with pete, i think the g-20 is

really important i think china trade deal is really important i don't think it is going to happen i think we're getting strung along and quite frankly if i were the chinese, i would do the same thing if you want to take a step back and view it from the prism they look through in terms of the fed, the president talks about all the time, this is the greatest economy in the history of the republic he said not my words, maybe it is i don't know i'm not an economist if that is the case, why are we even contemplating -- forget about 50 basis point -- >> he's trying to neutralize it against the rest of the world. >> because the ecb and super mario draghi have hit us over the head that they will either, a, be cutting, b, bond buying, or, c, all of the above. >> what we're seeing here -- >> trump has been mad about currency issues and his whole point is i think your point is correct, your point is correct, which is you got to balance it out. if they're going to cut -- >> but why >> you don't want to see the dollar get stronger. >> of course you do. you buy things he buys things

pete buys things. >> i know i buy things. >> but our administration -- >> for years it is a stronger dollar policy. the madness is if everybody is driving themselves into the gutter, why follow them? this is an opportunity to strengthen our underlying economy. might be painful for the market but wond irferful for the econo. >> he's got an eagle on his shoulder might be a pigeon. >> rebecca, here is is the thing, i want to expand it, we talked about technology, faang stocks, bit, all this stuff. what does google have to do with the fed? what does microsoft have to do with the fed they were down 2% and 3% today i understand our broader perspective. what does alphabet care about interest rates >> you know, i know this show is "fast money," so we're talking about what is happening now, but i would take a step back from this and say if you think we're going to continue to look for companies that can grow organically, if the trade war, global growth slows further, i want companies doing something interesting, biotech, technology, that can grow on

their own. and so i say if you have a day like this, you're probably looking at an opportunity. >> i got -- you just made -- i'm going to drop some genius on this show. you're welcome, producers. we need a segment on this show called pump the brakes where once a segment, people like rebecca come in with wisdom, and they slow it down a little bit pump the brakes. >> slow it down too much. >> what were the brakes like on your iroc z. >> new cars, you put your foot on the brakes, they -- in the old days -- >> he's a car guy. >> can we -- >> go ahead, i'm sorry. >> when he's not in an uber, he's being driven around in a limo >> it is not all bad despite the trade fight, m micr reporting earnings to josh lipton with more >> micron had been hit hard, the stock was down since the intraday high heading into this printed, primary reason was

huawei and fallout from the trump administration black listing that tech giant. it is important micron customer makes up about 13% of their revenue. right off the top of that call, quickly the ceo addressed that concern. take a listen to what he told analysts. >> micron immediately suspended shipments to huawei and began the view of micron products sold to huawei to determine whether they're subject to the import restrictions we determined that we could lawfully resume shipping a subset of current products we started shipping some orders of those products to huawei in the last two weeks however, there is considerable ongoing uncertainty surrounding the huawei situation and we're unable to predict the volumes or time periods over which we'll be able to ship products to huawei. >> so pretty interesting, the ceo saying we reviewed the export ban and found we could lawfully resume shipping some

products to huawei though he also said, listen, if huawei remains on this export ban, this black list and fiscal 2020, there would be an impact, he's telling analysts. more fundamentally he's saying 2019, challenging year for micron and the markets that they serve, near term, some uncertainty. also said they are seeing these early signs of demand improvement. as for the outlook, q4, looking for 45 cents on $4.5 billion and you can see the stock moving sharply higher now in the after hours. >> josh, thank you very much. here is the thing, micron is -- micron is still down 40% over 12 months up 9% or 10% in the after hours. are you a believer in micron, short bounce after hours and what has been a depressed and depressing story for the better part of a year >> within the chip space, there is a lot of different discussions about micron and how commoditized they are, what is going on with dram, some of the core part of the business. relative to the s&p, down 45%

year over year this move and this pop after the bell, an exaltation to my right, i believe, someone is happy about it, i think the bottom line here is this is about expectations these guys, first of all, they came in, they beat, they guided better, the expectations are these guys are in for a long winter in the middle of the summer and that's not what's happening. >> it is a stock that the average 27 analysts covered. the average rating i buy with a price target under 42. ten bucks above -- >> this is a stock that gets too cheap. but there is still an opportunity where you got to wait and wait for that opportunity to present itself. >> now that time >> it recently had i bought the stock not that long ago. it was virtually based upon the options coming in, looking ahead, and trying to read through all the tea leaves, the information, some not so good. this was an unbelievable report. that was crushing of the earnings that was a nice beat on the revenues like tim said, you start to put

out more guidance and it is still murky. there is still issues with huawei these numbers, brian, were pretty phenomenal. if they can even get close to these numbers that they're projecting going forward, look at what the pe is, look at this company and the potential that exists there i own stock, i sell calls. that's what this stock is made for because we talk about applied volatility all the time and guy referred to me a little while ago talking about the vix, the vix is low let's just talk about it the vix is low at 15 implied volatility of the faang stocks is very high. which gives you that opportunity. if you own facebook, sell calls against it you own any of the faang stocks right now, you have great implied volatilities there where you can sell against it. micron is not a faang stock, but that fit in as well where you're getting dollars in premium to be able to sell upside against a long position in the stock. >> rebecca, the fact that the vix is at 15, given that tankers are being blown up in the straits of hormuz, the rhetoric has gone up, we have g-20, the

trade fight, the potential for brexit and yet vix is at 15. >> because of central banks. because of mr. draghi, because of mr. powell, because of -- >> the market has a bodyguard. >> it believes in that the question i have is do they believe in it too much i do think we'll get easing, especially if the global economy softens further and inflation is still low. but it is so priced in you have so much easing already priced in. this weekend, we'll have an eu meeting, european union meeting, they'll talk about draghi's successor. what if we get jan heideman coming in. >> who's that? >> janes heideman looking to do draghi this is why she's here. >> because draghi was the hawkish one across the european union that wasn't giving the ecb any room to angle. the ecb according to many people saved europe from itself

>> this is not a black swan, maybe a black forest event >> oh. >> see what i did there? these are the kind of things we need to watch for. >> this matters. >> it does matter. >> even if you do own u.s. stocks this matters. if you see europe going down, it is going to hurt the multinationals. >> she's spot on i'm so happy she's here. quick, back to micron, pete is right, they beat revenue and they beat on eps and margins were better. those three things are great this is why valuation does matter revenue, dram revenue 64% of overall revenue, down 45% year over year. 45% year over year that's pretty devastating. but the question is, is it reflected in the price of $32? and this quarter it appears as though that's the case i don't think it is going back to 45. i think you can make a cogent argument it rallies another 10%

or so from where it is. >> all semis or micron. >> this is micron. >> micron specifically. >> we showed you, some semiconductors can maybe jump on this. >> i'm sure if i looked right now, i haven't looked, i'm sure intel is higher, knee jerk reaction, this, to me, is a very micron specific report >> okay. now, a fast look at other earnings, movers, as we head to break. fedex higher off its numbers conference call in the next 15 minutes or so. the company last night announcing a lawsuit against the united states over handling of huawei the latest plus, oil at the helm of geopolitical tensions. one talk energy watcher says a key event next week could send the commodity surging. mike bradley is here and biotech m&a heating up pete says there is one name in the space that could be the next breakout stock he'll give you his fast pitch. we're live as always from times square much more "fast" right after

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mcdonald's, starbucks, chipotle all in the green after credit suisse initiated these names with a mouth watering outperform rating and that is your call of the day. stocks have been hot this year chipotle up 70%. starbucks and mcdonald's, they're trading near all time highs. are these a safe haven safe haven redundant. >> for a-long tiwe were talking and mcdonald's was one of those names. but the story of mcdonald's been about u.s. same store sales. and the brand and technology and key oftens kiosks and the quality of the food, multiple, demanding to itself, not demanding to its peer group and you look at chipotle, which, to me, trades at an absurd valuation. it is important to bring it up over and over again. to me, sometimes the valuations of the company and the margin base and the direction of the management team is where it is supposed to be it is going higher

>> shake shack another one that credit suisse initiated, $77 price target that's probably trading close to if not more than 100 times forward earnings but maybe the growth rate justifies it and so we have talked about actually -- i worked there one day, you may remember it was a great day for me, i think there is a real chance every -- >> have you worked at every -- >> domino's. >> at the hut? >> pizza the hut. >> and this was research >> this was research i did a great job. they wanted me to stay for a while, go figure brian. why are you looking at me like that don't look at me -- that's not nice that makes me feel insecure. >> look, there he is >> i'm always in favor of getting boots on the ground. >> don't care about the valuation. >> i'm shaking my head i don't know how -- i don't know how you're preparing shake shack valuation with mcdonald's. one has 70 million -- >> did you hear me say mcdonald's i didn't say mcdonald's. did you hear me say mcdonald's >> i'm going to give you a

comparison, however, that is direct dunkin' and starbucks. dunkin' is cheaper and -- in front of them they got growth in front of them, you talk about the west coast, where they don't have enough exposure trading at 28, 29 times versus 36, 37 times for starbucks, that's an opportunity. both are at 52 week highs. why? when coffee prices go up, they raise the price. >> coffee prices, glad you mentioned it, at 30 year lows. >> no kidding. >> just off a 30 year -- >> that's what i do for a living. >> for more on the big analyst calls of the day, go to cnbc.com you're watching "fast money" on cnbc, first in business worldwide. here's what else is coming up on "fast. >> i love gold >> that's what the traders are saying and someone just made a million dollar bet the rally isjust getting started. we'll break it down. plus -- ♪ doctor, doctor

>> biotech m&a is heating up the space. one name that could be in the waiting room for the breakout. find out what it is when he delivers his fast pitch. much more "fast money" after the break. invest and protect for the future. so they'll be okay? i think they'll be fine. voya. helping you to and through retirement. so ...how are you feeling - on a scale of one to five? wait... when it comes to feelings, it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry, clive! actually, really angry. thank you. and seat 36b angry. you're clive owen. and you're barefoot. yeah... there's also apprehension.

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can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement. welcome back crude oil rallying 10% this month. geopolitical tensions in the middle east rising you got tanker attacks drone attacks. increased -- with iran new sanctions and export sanctions. that move sending energy stocks higher one of the best performing sectors for june terrible over the last 12 months with these new sanctions on iran and opec meeting next week, will this crude comeback continue michael bradley, strategist, he joins us now from houston. you and i got to stop meeting like this, talking about oil here is the most amazing thing

about oil. given what we just talked about, given venezuela's rolling collapse, we're still only at 57 bucks and change in the united states is that simply because of permian production >> well, i think it is a combination two of or three things first of all, it is really demand really demand stats over the last couple weeks and months as you know have really rolled lower. and that's just pressing on crude oil prices from a supply standpoint, u.s. crude bills have been massive over the last two months or so typically over the last two months you get flattish bills. a build of almost 40 million barrels. so those are huge counterseasonal builds that's kind of weighed on it recently, about a week, week and a half ago, the iea came out with their monthly oil report and it showed second half demand going lower and 20 demand going lower as well with supply going higher so it is just a lot of those confluence of events have just weighed on crude oil at this point in time. >> i can remember a day,

michael, not that long ago, if we had tankers being blown up, we had conflict with iran, the talk about u.s. military ships esco escorting super tankers through the strait of hormuz, you could have seen a 10% or 15% pop in a day in oil now you got 12.5 million barrels a day in the permian that is risk free. risk free from a geopolitical perspective. have the days of extreme volatility maybe come it an end? >> you know you'll still have extreme volatility we're at one right now, one extreme, and you're right, u.s. production is such that, you know, volatility is going to be lower over time. i think the issue with u.s. production is -- most people are down a million barrels a day in u.s. production into infinity. that's not going to be the case. we see that production from the u.s. shales and u.s. production in general will be slowing down from that million barrel a day a rate down to something in the

600,000, 800,000 barrels a day that's a good thing. the issue is demand looks so bad, people don't even want it look at anything else. and so from that standpoint of volatility, all to the downside. >> so appreciate all the points. how much is the demand slowdown priced in at this point? your view and one thing we haven't talked about yet or just summer seasonals, we got hurricane season coming up, started already, we have driving season does that matter anymore how big of an influence is that? >> i think three biggest events that will matter now is so you know at the end of this week, the g-20, what happens there if we have a positive event there, that's going to take -- put a premium back into the market the second i was -- the opec meeting coming up on july 1st. consensus is that there is going to be a rollover of cuts, 1.2 million, and so to us that's the main thing that is going to be an issue out there and i think near term, we're a little bit more positive on crude oil and more so than consensus simply because we do

see u.s. crude inventories beginning it decline over the next couple of months. and so that's going to be a positive catalyst. and seco and we're looking at domestically and globally, that will be a stimulus and so no one is taking that into account. everyone is looking at the bad demand numbers these guys are successful, you'll see 2020 demand improve in 2020. >> when the fed cut rates at 95, mike, oil prices doubled, so there is a fed aspect, very quickly is the biggest risk to oil not opec, not iran, not the -- it is debt, debt levels and the permian? is that a major risk because if where it remains the middle 50s, you'll see weaker companies go bankrupt. >> yeah, you already saw, you know, weatherford went bankrupt earlier this year. the one good thing about the equity market now, the energy equities is that, you know, debt levels are in the as bad as they

were several years ago a lot of emps have gotten debt levels back into pretty good shape. and so they can live with oil -- lower oil prices the area you worry about is more the oil service companies. one of the things we have been talking about for a long time is just return of capital, free cash flow. as you know, these emp companies have been in a spin, you any, growth at all cost type mode and they're going to be going in a free cash flow, return of capital type mode. the first return of that capital will be debt paydown the second thing is going to be paying dividends so that's just a net negative for oil service companies over time i think those companies, deep water drillers, those are where the leverage is high, that's the most exposed so i expect the emp stocks to be a big issue except for the guys smaller cap and little more highly levered. >> michael bradley, always great insight, thank you very much we appreciate that my screens here, i got all the oil stocks broken down by

region they're down 50, 40, 60% in the last 12 months it has been an indecimation of investor capital in energy >> well, you got global trade slowing down global manufacturing slowing down you have less production and you have less global trade what do you need less of, energy, oil, to make this stuff, to move this stuff that doesn't shock me frankly. i worry about one thing he talked about, really important, the debt levels on some of the companies. not all of them, but some of them, and playing that into the high yield space. >> mike talked about certainly for the permian and really all the u.s. shale and alternative plays, all about return of capital, not return on capital these companies are being run differently. that's a great thing for investors. right now it is clearly a prove to me story. oih in terms of oil services underperformed the s&p by 50% in the last 12 months i still think this is -- all we have done is talk about supply i think this is a demand story and i still think the dollar which has been weaker is actually not your friend because

if anything, i think the dollar catch is a bid and the safe haven, all the charts, by the way, in oil, the 50, the 200, and the hundred day moving averages are pointing down for the first time in nine months. not good. >> exxon and chevron both trade probably at trump valuations relative to where they should be you look at a conocophillips, over the fall, the market was concerned, maybe they'll make an acquisition, they shouldn't make, some of those fears have been assuaged, $59 was the level we traded down to in december. seemingly held that now. shades cheaper than both chevron and exxon. for a trade against 59 bucks, i think cop is interesting. >> i think when it held support near 51 is the key for wti everybody talked about it and it did, it made this massive move to the upside. very short period of time. i think right now you got to take your chips back off the table and wait and see do we test that $51 level again. if you want to be in something, a stock i pitched a while back was kmi. i love this name i continue to love this name

and, by the way, who keeps buying his own stock back? the richest man in texas. >> that's not even an oil and gas company. it is a toll taker is what it is let's not forget, opec, quick tease, opec meeting next monday and tuesday. we'll see if they keep that 1.2 million barrel a day production cut deal you got iran there, a lot going on there venezuela. we'll be there as well we'll be there covering it live. >> come on. >> nice. >> giddyap. >> i'll be there fedex, volatile, after its earnings report, the conference call kicking off now the company last night suing the united states government over huawei. we'll talk more about fedex, up 2% plus, health care and biotech lagging the market this year but pete says there is one name that is ready to break out, you're going to get his fast pitch and we want to see if you're buying it i don't know what that was we're back after this.

my degree from snhu has helped me tremendously. the flexible class schedules allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through.

welcome back another big biotech deal on wall street today, abbvie, $63 billion acquisition for botox

maker allergan shares of abbvie falling double digits allergan surged more than 25%. this is the second largest biotech deal this year is this just the beginning, perhaps, of a larger consolidation in the biotech space? >> i think it absolutely is. i don't -- i think the bristol celgene thing, we said it for a while, it is not going to happen every time you get negative headlines along those ways and celgene gets sold off, in my opinion, pete might agree with this, i think it is a huge opportunity. any weakness in my opinion in celgene shut bought not because they're going to get bought, but on valuation in terms of pipeline the stock is too cheap. >> here is what i'll say about biotech. we talked about biotech for two and a half years and could have talked about cheap balance sheets, companies that had expiring pipelines, companies that -- probably talking about the idb. talking about the heavily weighted top six or seven names, biggest market caps in biotech the problem here is i think that every time everybody thinks there is going to be more m&a,

it is a hangover for the entire sector and become a difficult sector to invest in. that's what we have here. >> is it better just to buy and sometimes you can make an argument you want to pick stocks, not just buy etfs. but so reliant on a roll the dice for a headline, right you have one drug if it doesn't work, the stock falls 70%. if it does work, it doubles. >> it is a volatility play, right? so we should be looking at options there. but i do think biotech, there is a lot to chew on beyond the drugs, devicemakers are, a lot of service sector companies that you can look at to expand your horizon i still think -- >> it is a trade fight play. a lot of it is made in china. >> some of it. there is an active management play to do there. >> okay. if you're looking for a way to participate in the biotech space, mr. pete najarian says one name is about to break out all right, so why don't you -- you know how it works. >> starting to walk. >> go to the -- >> doing the pitch. >> we'll shoot it down.

>> they shoot is down every single time. take a look at biogen, this has been very, very interesting. we're going to get to why it is trading where it is now. but, first of all, management. great management team and by the way, new ceo, came over from merck, doing a great job so far. but he also stumbled into biogen right ahead of why they fell down we'll get into that in a second. down 40% why is that? well, if you go back into march and you look, the alzheimer's results and the fact that they yanked that whole system that drug, they were trying to push for alzheimer's, thought they were there, it was priced into the stock, a lot of people say i don't know it was. i think this is a huge overreaction so they have been selling that stock and they sold it down from way close to that 4 00 level, down to the levels it is now this stock is very,very cheap. look at the fundamental story here they put off $6 billion in cash a year $4 billion of that they're buying back their own shares they don't have a dividend, but when you look at this trading at

a 10 pe now, this stock is just too cheap in my opinion. so i think there is a great opportunity there. oh, by the way, earnings growth right now is sitting at 15% annually for the last five years. their revenue growth is 9% in that same time frame this say company that has got a lot of great things going on fundamentally. focusing still on ms but they're actually expanding and they have got four different drugs right now in phase three one of them for als. that could be huge there is a huge industry out there. and, by the way, these guys could make an acquisition at some point if they would like to because they have a great balance sheet. >> all right anybody have a question for pete before we vote pete >> ultimately the question here, though, is about either additional m&a in the sector do you see them getting o outflanked by somebody >> i'm not going to actually buy somebody i think already they have got a decent pipeline of trades really inexpensively. they are throwing off a lot of

cash if they decide to pull back on buying some of their stock and decided to buy somebody instead, i would love to see it be a smaller player i would like to see what pfizer did. an $11 billion deal. i don't like these big megadeals. the 53 and 63 billion type deals. i think those are too big, too clunky, too difficult to manage. i would rather see them, if they make a deal, do a much smaller deal, $10 billion or less. >> okay, guys. no more questions. time to vote, are you buying pete's big pitch on biogen, tim seymour? >> i'm afraid that pete, you know, i have to be consistent with what i said i think the company is very cheap. but i'm probably a seller here, i think the sector is probably sideways at best. >> rebecca patterson >> i'm not allowed to talk about single stocks because of my position at my firm. however, i would like to give pete props because -- >> great delivery. >> buyer of pete. >> appreciate it, rebecca. you're the best. >> i'm -- i have trouble with the english language so i

struggled for a while. but i finally -- >> fracas. >> it is not -- it is too cheap is what it says, which means it is a vote for pete we said this for a while, traded down to 225. alzheimer's is the holy grail. nobody is close. biogen has other things going on it is a cheap valuation historically it has rallied good pitch, pedro. >> now down to 7-7, if prices stay the same, single digit valuations, nice vote for pete's sake guy, rebecca, tim, thank you very much. the desk has spoken. now it is your turn. go it our twitter page, cnbc "fast money," cast your votes, we'll reveal the final results later on in the show plus, gold bliglistening today that's got options traders piling into gold we'll tell you which way, though, they see it heading and it might surprise you. your brain is an amazing thing. but as you get older, it naturally begins to change,

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all right, welcome back to "fast money. the gold rush on again gold skyrocketing in june, up nearly 10%, stocks sitting near all time highs, and options traders were betting on gold summer valley to shine on. dan nathan is in san francisco,

where your options action. dan? >> hey, sully. yeah, so call volume today was two times that of puts on the day that gld gapped up didn't close particularly great. closed toward the lows here. there was one trade that really caught my eye, when the etf was trading 134.79, a trader rolled up a bullish bet, selling out of the july 12th weekly 10,000 134 calls and buying 10,000 of july 12th weekly 136/40 call spread and paying 95 cents for that that trader is looking for a break even 136.95 and possibly as high as 140 over the next couple of weeks. what is interesting, like you said, this thing is up 10% in the last month and it is breaking out we have a one year chart right here it went on a runaway breakout here really to get a sense for the breakout, look at the ten-year, it is approaching levels that it has not seen in five or six

years and here is one more chart. this is a really important chart. peter bookfar, friend of "fast money," posted this chart yesterday. this is the price of gold and how correlated it is with negative yielding interest rates or debt around the globe here. obviously very well correlated you see what gold is doing that as we have seen it taking over sovereign debt here. so this one kind of interesting, trade rolling up a little bit, playing for more upside. one more thing, by the way, pete najarian, i voted against your biogen. >> of course you did i've never seen you be a bull in your entire life you've been wrong each time on these by the way, so giddyap, big boy. >> that was a beautiful chart for pete, the nerp trade, make america gold again pete najarian, what do you think about gold >> i'm with dan. trading 120, now trading up to 135. they have been buying, buying, buying, buying this is 16 different times we have seen bullish activity 14 coming in today

another two today. very aggressive buying in gold got to stick with that trade and i absolutely, spread it off if you have to. not just gld, gdx, gdxj, you can play it any way you want now. >> it is an absolute honor to work with all of the good people at cnbc. i would -- i can say that with all sincerity. but some people reach a certain pinnacle where they have a graphic made with their picture in it. dan nathan reached that pinnacle look at that right there dan's megatrade. isn't that fantastic you don't have one you don't have one >> i hope to get there some day. >> i'm in the pantheon >> you reached the -- >> the hat was blue. >> the whole idea. we're making acronyms great again. >> the hat was blue. dan nathan on the gold trade there. guy going higher

we have been saying it -- gold is not a story until it is you're going to walk in, i said this to melissa lee, typically here every night, she's on vacation, you're going to walk in one day and gold will be up $100, you're going to say what's going on mark my words, that day is coming >> are you surprised that bitcoin and gold are also going up together? is this a dollar trade >> i think we lost dan. >> jump in there i don't think it is a taller trade. the chart, the great chart before, from peter bookfar is amazing. it only goes back to 2015. this is not a long time. but it is a relevant one we're seeing yields around the world go lower, gold has no yield. in the opportunity cost for owning gold goes down, global yields are down, gold is relatively more attractive that trend isn't going away. >> not only does gold -- put that chart back up if we can, the nerp, 13 trillion by the way in sovereign debt, now negative

around the world gold doesn't have a yield, it has a carrying cost. gold is expensive to own. >> like a negative yielding bond in a way >> yeah. >> so and -- >> why would it go up when yields are negative? >> central -- >> tango. >> that's a good one >> so central banks are buying again. they start diversifying their reserves, adding to gold that trend tends to be sticky it will last for a bit. >> parking spot at the port authority was so tight, i had to do a backwardation. >> oh! >> tune in every fry iday at 5:0 eastern time we're going to tell you what wall street is saying about the results. frank holland on wex this morning back with us stick around see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman?

hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

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and the best lte everywhere else. so you save hundreds of dollars a year on your wireless bill. xfinity mobile has the best network. best devices. best value. simple. easy. awesome. click, call or visit a store today. all right, we got earnings alert on fedex up a little more than a percent in the after hours trade frank holland. >> the fedex earning call is going on right now fritz saying this just a short time ago about global trade. take a listen. >> global trade disputes and low global growth rates creates significant uncertainty for the express business, leading us to be cautious in projecting fy '20 earnings for this segment. the integration of tnt is progressing at a good clip and we will see significant benefits

by this time in summer 2021. >> so the company not giving hard numbers for fiscal year 2020 guidance but expects eps to decline midsingle digits from this year. the forecast has express margins lower after the decision not to renew customer contract that appears to be amazon a decision they announced earlier this month we spoke with david vernon from bernstein, here's what he had to say, quarter itself seemed okay. guidance is for lower earnings for next year which the market has been pricing in. we also heard from deutsche bank, they say the company needs to execute a clear strategy or they believe that this stock is going to be neutral from here on brian, back over to you. >> frank, see you tomorrow morning. thank you very much. let's trade this, guys >> i'll trade it for you the revenues are more or less flat, profits down 15% in express and ground and i think the company after two consecutive quarters of disappointments, i think fred smith is fantastic, i think they have a credibility issue to overcome even though this is one of the great companies in the world and actually i think it is

very cheap here. >> two words for you there, sully. you want them? you want to guess? relief rally that's what this is. >> never would have guessed that. >> relief valley this guidance was, yes, they were looking for atrocious, they got t relief rally, sell it. >> this is a case where the micro affects the macro. look at the lawsuit against the government, look at what is going on global manufacturing, yes, it is priced in, yes the stock is cheap global manufacturing will slow further. >> fedex has been doing this for three quarters. >> i got amazon people delivering packages now. private citizens and yellow vests coming -- >> what are they delivering to you in. >> whatever it is. up next, i don't know, on pethe box. up next, final trades. >> boom. to form the stock exchange which brought people together to invest in all the things that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions.

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giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. you know why pete seems so high on life goofy sayings. >> whatever. >> buying his pitch -- >> oh! >> i'm almost disappointed >> time of his life. >> sell it now >> nice job. they're going to be right. >> weird coffee -- >> i'm mr. coffee. not john i'm -- >> around the horn. >> internet of china, this will go higher, they bought calls today, right last time, right again. >> tim seymour. >> the faangs of asia. alibaba. doing just fine. >> yeoman's effort by her, she had a hawkish german on a

conference call, jans heideman. >> shake shack, 77 price target, i'm in that camp there >> shake shack >> thank you, brian. >> by the way, that does it for us here on "fast money." my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job isn't just to entertain you but educate you. call me at 1800-743-cnbc or tweet me at cramer i say it over and over and over again, no matter how muc