60% of revenues in either trading or wealth management, but we'll see how it shakes out and certainly some big declines today and wells fargo was down 4% >> it seems like also the lesson of the day from banks, wilfred look at the credit loan loss positions to see how bad the banks think it will be and whether they're guiding on more and the tone of what they say. >> exactly sara, thanks for that and we'll hand it over to brian sullivan ♪ ♪ thank you, wilfred and sara. welcome, everybody, to cnbc's "fast money" on another big tuesday with the market moving higher we have a great investment committee lined up for you on this tuesday night, the names that you know and the names that you trust. there they are, guy, tim, steve and dan nathan, as well on a day when the dow went up 2.4%, 558 points, but that was not the story today. today instead it was all about big-cap technology the nasdaq kind of picking up where it left off about six weeks ago. look at that, the nasdaq up nearly 4% today, in fact, here's

your stat of the day only one stock in the nasdaq 100, pfizer fell today, 99 out of a hundred in the nasdaq 100 are on the rise. big banks, a big story for earnings and the results, the stock's not doing so much and former fdic chair sheila bair is here with a new white house op ed and the new coronavirus briefing, we will be monitoring that in the last couple of days there has been more news and this one a little different. look at the location it is not in that press room this is in the rose garden which, we don't know what they're going to say, but historically, when we have this one podium in the rose garden, we tend to get more news so there is a lot going on, but let's get right back to the markets. tim seymour, i want to begin with you and really today i need a china story. apple, iphone sales jumping 2.5 million in march versus

500,000 in february. better import/export data. did big-cap technology today to you sort of signal that china is providing a kind of road map for our reopening or was it just something else >> well, it has and if you think about also a couple of weeks ago when we started to get china data out of nike and starbuck, it was a catalyst for market look, this iphone shipments data in china of which 2.5 million is apple and 2.9 on the international sales was very bullish. the question is is this pent-up demand or is this a sustained dynamic that you will see into april, but it's clear. you talked about the china macro quickly, imports/exports last night were much better than expected for march so imports were almost flat on the month. they're expected down 9.5% and they came down eight and exports were down about 9% better than

expected so this is what the marks are trying to do with asia as a region to interpolate what will happen over here. >> guy, was this kind of the optimism for a maybe mid-delayed may re-opening trade and if it was and if it's not tell me what it was, but if it was and we don't get that sort of soft reopening, what then >> and then it doesn't become a sell event type situation. >> first of all, kudos to tim. he's been steadfaston this trade being heighter a trade, higher and that's been the case and obviously we've blown right through it and there's optimism out there. another week and the nasdaq's at an all-time high i'm not quite certain what everybody's looking at i mean, if you look at wynn resorts to dove tail the apple story and that was up 7.5%, as

well maybe people are definitely extrapolating. again, i'm hard pressed to believe it's going to be this simple in the environment that we find ourselves in i take again -- again, i take some encouragement in the fact that the vix is 40 the bond market has absolutely quieted down which is encouraging and you have this move in the russell to the outside in this stealth thing, as well. i don't understand how this can continue at the arc and the trajectory that we've had over the last couple of weeks >> and i am right there with mr. guy adami, steve grasso. listen, we're looking at the data, the number of, i think, it was cases and/or fatalities today was a record high. there are 17 plus million people unemployed, millions of small businesses are at risk and yet the market has been powering through like -- like this was six weeks ago before this all happened is it because we're looking to

the other side we're discounting it or is it literally all because the federal reserve is throwing so many trillions at it that there's nowhere to go but up >> i'm going to say yes to that. so it started off with the federal reserve last week throwing multiple trillions at this, an unprecedented amount of money, and then it was the economy and the investors looking towards the other side so it's not about the number, 2.5 million iphones. it's about that it's five times the amount of what it was in february if you look at it that way this is the back to work bounce so the market's going to be hard to be sold in the next 45 days, simple as that, but if you want to sell the market, you wait for the second wave of infections and when the rubber really hits the road as far as earnings or lack thereof of earnings, but people are taking money off the sidelines in record amounts and i should say money on the

sidelines in record amounts and the worst since 9/11 they have to put it to work some place, brian so where are they going to put it to work it will be in the technology plays and the growth plays and the value plays and their day hopefully will come, and right now this large-cap tech looking out over the abyss over what might be on the other side and that's what's so vexing, and i have melissa for a while and i know she's coming back everyone is saying thank goodness, especially the audience you look at this and you think, look at what was up today and the fang names and tesla what is this early february did the whole thing actually occur and did people buying the same stocks, and i almost said something else that they were buying before as if nothing has changed >> sully, this is one of the dumbest, you know what, things i've seen in my wife years in

the business i get what steve said. i get what team has been saying for weeks now in trying to be constructive on the market looking at the other side of this, but i think it is really important to think about what we're doing here and we're looking at the worst health crisis in a century and we're looking at the sharpest market decline in a century and we're looking at the highest jump in unemployment in a century, through the lens of the stock market in little less than two months in a 35% peak to trough decline, and i just don't understand how when we're about to go into or if we're not already in the deepest recession that we've been in in a couple of decades that this makes any sense whatsoever the fact that they are buying the same things that they are buying when we were in looney tunes land about six weeks ago doesn't feel any better and i get microsoft and i get apple and google and amazon and

really, what they're trying to do there is they're going for monopolies and they're going for balance sheet and they're going for the safety trait, but bring it back to apple and 2.5 million iphones and 1.5 million installed base ios globally and it doesn't really matter and steve's point yes, it's 5x february and apple is number five in market share in china and smartphones anyway they are losing share. the information had a great story today talking about we chat is a huge problem for apple in china so when i think about what's going on there, apple up 5% on that data. it's not like it's particularly oversold and sentiment was so bad. i would not be buying apple on that i would not be buying the market here either. >> these are good points and tim, we've got to make this clear. i know you know china. i've been there ar few times and the iphone is a rich person's toy in china let's be clear, and i know it's

expensive and the iphones are pretty ubiquitous and the iphone in china is the same as it costs here with the anke income in parts of the nation of $7,000 to $10,000 a year and is it a good read on the economy and they're not going rush out and buy iphones. >> it's relative to itself and the market is trying to get a basis for where apple sales have been and that's what it's trying to do. remember, this is a market that for the first two months of the coronavirus in china we were indifferent and we were going to all-time highs here and so what we were trying to do was compartmentalize it and say it is only an issue there, and the market is saying, hey, look, china's coming out of it and although we all know there's a lot of pain here and if you listen to jamie dimon, they told you it would be worse than the market's telling you, but that's all today is, and i'll simply say that dan's making a decent point. look, at 285 to 300 on apple and

when 320 was an all-time high and up 90% from june of 2019, i'm not sure you have to chase apple here and now i do think that you've got into a case wherepeople have seen this massive amount of liquidity thrown at markets and that's really what this is, folks, because it's hard to get excited about apple at 20 times forward earnings because we were complaining about that in december, november i know i was so that's kind of how i feel about today. >> and no one's knocking apple and i'm making a point that is feels like when you're taking a tape today and you look at amazon moving up and apple and facebook and tesla and it feels like people just kind of defaulted to what they know, but maybe what they knew, the stocks that worked pre-coronavirus or pp, pre-pandemic will also work, pp, post-pandemic.

>> yeah. i mean, but a lot of of these stocks were working on basically multiple expansion they weren't working on earnings growth or necessarily revenue growth and the market's fallen into that same, dare i say, trap, and i don't want to say that we've been in a vacuum just today or the last couple of days we had actually brought up a couple of weeks ago when apple traded down to that, i think, that 230 level we pointed out that if you go back to october or september 2018, that's where the stock topped out at. in terms of technicals, it's done everything right and i'm with tim, dan and steve on this one that if you caught this bounce which maybe a lot of people have, there's absolutely nothing wrong with taking money off the table. if apple goes racing back to new highs it speaks volumes to the inconsistencies and maybe sort of the price on discovery that

the fed has created more so than fundamental analysis at this point. >> let's bring in another voice to this and everybody can jump in, as well. lori calvasina, head of capital markets at rbc capital management, very patiently, quite a rally in the last week or so, and i use that term lightly. i don't like the word rally, but that's kind of what we've had. would you advise or are you advising your clients sell into this a little bit and maybe take some money off it? i'm sitting on the sidelines and we hit the target on the s&p i feel no urge to cut it i feel no urge to raise it at this point i'll tell you, just listening to the conversation about what in the world was this rally all about today? a big conversation we were having with the folks at rvc and frankly, we've been having that conversation over the past week and a lot of this is better news on the virus and that's legit and i think this is the feel good reaction there. i think a lot of that's legit,

but at the same time i will tell you it feels like that's starting to have run its course, and when i dissect the price action in the market today it looked like it had a very defensive undercurrent and the maga stocks, the fang stocks, those are secular growers and when we think growth will not be good any time soon that's what investors clung to you also have a strange mix of staples popping and short coming in the consumer discretionary names. russell was up and it lagged the nasdaq and the s&p pretty hard and this didn't have a risk on feel and traders trying to have their foot on both sides of the trade. >> yeah. you look at -- okay, let's go to the maga trade, right? microsoft, apple, amazon, google they're all very different companies, let's be clear. apple, for the most part is almost entirely a consumer products company that's it. >> microsoft, almost entirely with the surface pro tablet

which i hear is very good, is almost entirely an enterprise company. google is an advertising company. they don't actually have much in common at all except that they're big and they're lumped into the same acronyms and they're almost all up exactly the same amount today and is it just kind of lazy investing? >> i think it's a lazy stashing of the cash and just a way to go back to the tried and true names that you think will not blow you up in the long term and we hear a lot of the phrase core holdings and i talk to a lot of clients in the last few weeks of the growth side of the market and say this pandemic is terrible and it doesn't make me change my long-term investment philosophy i think it's a way of getting some money back into the market. things are starting to run and people don't want to miss the upside, but i wouldn't say there's anything sophisticated to it than that. >> hey, lori, it's guy when the s&p reached its

all-time high at 33.93 assuming we'll get $160 worth of the s&p 500 earnings and the market was trading close to 22 times. you can make an argument that we're not going to get anywhere near 160 and maybe we'll get 130 and the market is trading at the same multiple and i understand the fed backdrop and what's the right mixright now in terms of how you see the s&p 500 going forward? >> i think you bring up a great point. one of the things that we talked about late last week where we basically reiterated our target and we trimmed the earnings this year to 135 and if you look at our guesstimate for next year, stocks aren't cheap and our guesstimate is 153 and there we had been down around the 14 times multiple on the march 23rd lows and now we've popped back up to almost 18 times and you're not crazy expensive, but you're not cheap and if you look at this year's earnings which we think it's 135 and you're right back to the level that consistently marched the peak

since 2013 and it feels to me like from the valuation perspective a few weeks ago, a lot of people were trying to say wroen what earnings are going to be and stocks are cheap. it's hard to make that argument now. >> we'll leave it there. lori, calvasina, be careful and don't put a lot of money here and we appreciate the candor and the views. thank you very much. >> we have big breaking news on the airlines and their relief packets and go to phil lebeau for more on that. >> brian, remember that the c.a.r.e.s. act which congress passed put aside $50 billion to the airlines and basically cut in two pieces and one part, low-interest loans or loans backed by the government and that still needs to be determined and the first part, however, $25 billion in what they're calling payroll grants and the treasury department has finalized the agreements or not finalized, they've reached an agreement in principle with ten major u.s. airlines and we're starting to hear from the

airlines about what their agreement entails and they still need to finalize how quickly that needs to be worked out. they'll receive a total of $5.8 billion in aid, 1.7 of that will be in the form of a low-interest loan. southwest says it will receive $3.2 billion in aid and 1 billion of that will be on a low-interest loan and we'll show you alaska, delta, united and jetblue and we expect to hear from them probably later tonight or many a case that will be filed and the airlines grant include 10-year low-interest loans and that makes up about a third of what each of the airlines will be receiving and are, the airlines as part of getting these billions of dollars agree to not have major layoffs until september 30th and they'd like to avoid it all together if they can they have ray lifeline for now

and have agreed they'll have their payrolls in place at least until september 30th. >> so, phil, just to be clear, following the story, and the change here and correct me if i'm wrong, please. it was the beginning sort of all just here's the money. >> correct >> here's the money and a third of that has to be paid back and it's not just a grant and there is a loan perspective and the taxpayer will get some of this back. >> right the government is also going to be receiving stock warrants from each airlines basically coming out in 3% of the value of the money that is being given to each of the airlines and basically that's what it comes down to. whether or not the treasury department interacts that way down the road, but you're correction the $25 billion payroll grant, about a third of it, they'll have to relay.

all right. phil lebeau with the big, breaking news. >> steve grasso, i take it in tung and cheek >> we'll have a, the taxpayer is now an equity partner. oddly today, boeing fell a bunch of percent in an overall uptick. what do these stories tell you about airlines and boeing? [ no audio ] >> brian -- i don't know if steve's there -- >> i meant tim seymour what does this tell you about airlines and boeing? >> never at a loss for words, brian. first of all, i think we have to understand that the grant loan of which, you know, possibly 10% of that is -- is really where the warrants would be attached so if you think about this, the biggest thing you think about is

in equity shareholders' dilution and i'm not worried about a 5% loan and i think that's great news for the airline and every airline is not created the same because they all need a different amount of capital here american airlines needs most and yet they may be closest to american airlines, but really based upon the numbers we have in the first tranche we'd be looking at a 3.5% dilution and if you look at delta it's around a 1.5% dilution and this news doesn't scare me what scares me is the controls the government has over the airlines and some of these airlines have done some pretty aggressive things and positive things over the last five years in terms of rerating about how they've handled their balance sheet and how they've handled capacity and how they've handled negotiating and the government loans don't sound onerous and they're better than equity

investors than people had expected. >> am i the only one, tim seymour that can see when we all start getting on planes that baggage fees might start to go up ooum wobtderring -- we've got a lot to do, and markets in turmoil, 7:00 tonight and coming up after the break, bank earnings or we should say bank results and not sure if there were earnings and form are fdec chair and an op ed why she says the millennials, all of them out there are basically getting hosed because of the fed to everyone working to keep america strong, thank you.

and... l(music fades in). hey! -hi!

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>> all right welcome back let's talk about where the money is and that is, of course, the banks and the investors in banks today ended up with less money if they were sellers because the bank stocks fell and j.p. morgan chase down 3% and wells fargo down 4%, as well and guy adami, the eps numbers, as expected were not good, but were you surprised how negative the market was on jpm? >> yeah, i was and karen spoke to this and the rest of the panel and it wasn't about earnings and what i was focused on is what their tangible book value was going to be and if you recall a couple of weeks ago when the stock, j.p. morgan traded around 85 or so and even if their tangible book comes in at 55 or a 10% haircut from the previous quarter it's still a buy and the tangible book came out at 60 and at its peak, j.p. morgan was trading at 2.3 times

tangible book. i think the market is looking at this wrong and just my opinion and it deserves the premium and i'm not suggesting it should go back over to two and even at a 1.8 it should be north of 106 and 107. so i was surprised how poorly they traded today and let people try to figure this out and i still think jpm goes higher from here. >> dan nathan, i'll let you jump in so quickly on the banks and anything in the price action stick out to you >> i think sully was a tough setup last week and the xlf and the etf attracts the bank stocks and although it was a great week for the s&p and 12% week after week and the xlf was up 20% and coming in here obviously, they were coming in a little hot, listen, i think it's really important to remember that we just talked about the airlines and we'll talk about hospitality

and we'll talk about all of these other groups that will have a hard time once the rally ends these sectors are really kind of impaired here and these banks have expoach you are and the longer we go to 2020 and with this exposure and bank debts, they'll struggle and go higher >> thank you very much >> let's bring in a new voice to the conversation, as well and one that is very well known to our cnbc audience and that is the former chair of the fdic sheila bair of the new op ed, overreliance on the fed is com pro myselfing t promizing the future for millennials. >> i want to ask about the banks. >> are the banks doing well? a lot of concern a couple of weeks ago that the health crisis would turn into a financial crisis and a banking crisis and in your view is there any

indication that could still happen >> we don't know how bad this is going to get and there will be a lot of loss and i can only assume for banks and they have tremendous exposure to these various sectors that are hit hard and generally, if we slide into the recession which is not improbable, that's going to cause further losses more broadly and one of the reasons that i've been saying a johnny one note on this and they need to conserve the capital with the dividend buybacks and get rid of discretionary bonuses and now is the time to hunker down and that's the frame work that was in place and it was contemplated after dodd frank and after dealing with this, we need to keep banks healthy and solvent and continue to lend and i think it will be helped a lot by the government program and it was pumping and robbing liquidity and we don't have to worry about them not having access for the federal rule and ensure that, and will it have the capital

with the losses which is why i've been saying for a long time they need to conserve capital. >> i think this question will dovetail nicely i hope into the op ed into the federal reserve, and sheila, you and i spoke 12 years ago when the financial crisis was developing and back then it's hard to believe, but back then the numbers seemed impossible and a trillion dollars and $900 billion for stimulus and what are you talking about, and now the numbers, it makes them look like a glass of wine and we're chugging two bottles now do you believe the federal reserve did more than it needed to or more than it needed to >> i don't know. i think now is the time, you know, i'm more supportive this time around because this is not -- we're not -- this is not the moral hazard issue in 2008 and 2009 and this is want caused by who is on wall street and

nonetheless, there would be a few more restrictions on some of this fund, but overall, no, it's doing what it needs to do right now. unfortunately, this is how it's all set up and each time we go into a cycle, we default to the fed and i'm not blaming the fed. i'm saying that's the decision that our government has made and we keep defaulting to the fed to provide monetary stimulus and lower interest rates and you keep getting into -- your economy just keeps getting more and more leverage which we are now and the leverage didn't cause the crisis and the leverage on the consumer balance sheet is making it more difficult to respond to this because with all that debt, we are less resilient so i do think we have to get the boom and bust cycle and any time there is a problem and we turn to the fed to choose the economy with less interest rates and

inserting the liquidity in the wall street and it doesn't work and hold it down to the real economy. >> sheila -- >> we need to rethink that >> your word is very well taken. >> we have overfinancialized our economy. the words you use in quotes that we've trained an entire generation by the way, not just the generation and the biggest generation in american history by probably 12 to 15 million more than the baby boomers we've changed a generation that is coming of age now starting to have families and getting bo prime working age that, a, low rates can solve everything and b, they have no future without debt >> yeah. exactly. it didn't used to be that way. hopefully we can get back to a situation where their economy is back and where the financial system plays a supporting role and not a central role which is

a dom nantz role and this is going on for two or three decades now. i do hope if there is a silver lining on this we'll be fundamentally rethinking how we drive it going forward and we need to get rid of the debt culture and thinking about real value and there's nothing wrong with equity financing and especially if you're in think banking and it's loading up with debt and i hope that's a longer term debate we can have through this >> i'm sure that we will have it because we're now sort of in the let's deal with this stage and the recovery stage and we'll bring certainly a lot of questions and sheila bair, former chair of the fdic, read it in cnbc.com invest, and sheila, we appreciate it best to you and yours. coming up, speaking of treating this pandemic and two of the world's biggest pharmaceutical companies making an unprecedented tie-up

those two names you have to hear what they're doing and you talk tesla's stock soaring today. low oil, who cares electric car vehicles and sales will boom and any news that comes out of that, from the white house rose garden we'll bring you, a lot more to do here on cnbc fast money and you can see the reporters there isncg.ally dtain (music ♪ ♪

all right. welcome back two of the world's biggest pharmaceutical companies making an unprecedented tie-up to try to fight this unprecedented threat in modern times let's get more on glaxo and sanofi with meg tirrell.

>> these competitors are two of the largest vaccines makers in the two and the other two being merck and pfizer, but san ofy and glaxo smithkline coming together to come to work on a covid-19 vaccine both will supply elements that have proven through vaccine technology sanofi on the protein antijen. that's what you show the immune system stimulate the immune response to make the vaccines more potent and they say if all goes well they plan to start phase one, human tefrts in the second half of this year and hope that a vaccine may be broadly available to deploy in the second half of next year now they are just one of many in this race. of course, moderna partnered with the nih already started human trials and we start with the ceo stefan bonsall who said he hopes that they could have a vaccine available for high-risk groups as early as this fall and we'll have to see how the tests go

johnson & johnson which reported earnings today and they rejoinedous "squawk box" reiterated human trials, and it is an unprecedented time to have a vaccine and some are skeptical that they'll be available that quickly and scott gottlieb said at least two years a lot of work being done and unprecedented collaborations back over to you >> we'll leave it there. meg tirrell. >> i'll make a prediction, the day we get a vaccine and we will, it will become the national holiday and they'll get a nobel prize and all of us should run through the streets screaming with joy meg tirrell, thank you very much i say that semitongue in cheek and it would solve the humanitarian issue and ultimately the only thing that matters here and some of the biotechs and pharmaceutical companies heck, maybe they can

become the next apple. >> listen, i was talking to a friend of mine who works at a big biotech company and he was a banker and he's a smart guy and we've had the different trials and the different companies that are working together in a non-competitive way to solve a huge problem for this planet right now and i'm not going to call it an exist earn one and it's the sort of issue that needs to be fixed to get the world chugging again and the notion that these companies that normally compete and use a lot of resources to do it are working together and it's a great, great thing and some of the smartest minds on the planet and they're doing that, and when i think of the xlv, heck, maybe it's the next xlk when you think of the best and the brightest going to solve one of the biggest problems that our planet faces and i'm very encouraged by this and meg's reporting's been amazing and she keeps updating us on all of the different companies and allof the different people are pitching in and hopefully one of these guys or one of these firms working together than others come up

with a breakthrough that can get us more confident about getting back to work in our daily lives. >> they're going to do it. and i have no doubt whether it's here, and whether it's steve grasso, japan, wherever it is, some skientsicientist will do tt like we did in 1957 and i remain optimistic and are you optimistic about the biotech and pharmaceutical companies that are out there trying to get this done first of all, let me echo what dan said and this would be great for human beings and it would be great to get to work and the loss of human life is intolerable and when you look at just the stock trading event and you look at glaxo and when it is down 14% year to date, and 9% year to date and for the average investor, you buy the ibb and that's where you will get your gilead and your ametek and your biogen or buy the top holdings you can't pick the one that's going to come up with the cure

and the vaccine and buy the etf. >> steve, thank you very much. steve grasso and looking at pharmaceutical companies and the heros that are in the white coats and the labs and working on anonymity and by the way, speaking of glaxosmithkline and emma walmsley talking to jim about this deal and how did it come about, by the way two fierce competitors coming together coming up, we'll talk about cars, clouds and stock upgrades. look at that, casinos and even the three cs and stocks in the move, and three big calls and we'll get to that. bed bath & beyond, results preview and i won't call them earnings because i don't know if they'll be enis arngand we'll have a special tonight at 7:00 p.m. and we're back right after this you should be mad at forced camaraderie. and you should be mad at tech that makes things worse.

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welcome back we'll talk about stock upgrades and we'll talk about the three cs, and in the interest of time we'll have the president walking into the rose garden we'll do cloud, casinos and cars and let's move aside from cloud and focus on cars and casinos. tim seymour, i hate these kind of, quote, upgrade, credit suisse upgrading tesla, but to a neutral with a $580 price target i mean, why? >> well, look, the numbers out of shanghai have been off the charts and nobody has heard my view on tesla and i have no position on the name and i'll cue up the hate mail there's no way in an environment where we're worried about

consumption trends that this car company will do well and it's a product of free capital and free cash so not a buyer and obviously analysts have been all over the map here and getting to the moves we've had in tesla in the last month and a half have been even relative to tesla have been extraordinary and plenty of people that are catching up right now. >> all right good stuff there, upgrade to neutral and now guy adami. let's move on to citigroup and this one is an actual real upgrade. wynn, getting an upgrade at city because they believe that as china comes back, and macao five or six times bigger than las vegas will disagree with citi's call >> wynn was one we talked about a few weeks ago when we were looking for silver linings brian, if you like, wynn's had a nice bounce and that bounce has continued and albeit, it took a

pause march 26 or so at this level 175 and the fact that we're right back here on a tape that's seemingly impervious in a situation where china is a few months ahead of us you can get a situation where wynn can rally another 15% or 20% on pretty much nothing so i'm with city on this one and this is a name that we've talked about for the last couple of weeks and i'm in a cord here, brian. >> steve grasso, i've got a point of view, listen, you've been to a casino and they tend to be crowded and packed in, a lot of people sitting close for a long time. what's your take >> it's -- yeah. it's funny you say that because when we look at the airlines and we don't know what the airlines are going to look like guy had mentioned a couple of weeks ago whether or not there would be a middle seat what are these casinos going to look like and how profitable per square inch are these tables

going to be? not nearly as profitable as they once were. having said that, las vegas sands, you get a lot of bang for your buck there. it has outperformed the group. if i were to buy one, i'd be a bare of lvs versus wynn. >> lvs over wynn and apparently, i'm told that we're just moving so quickly, dan nathan, we do have time to get to that third "c" and that is cloud computing morgan stanley on work day talking about upgrading the software playbook and the flight to quality work day, and a part of that. are you a buyer of that call >> i'm a buyer of the call i don't think you have to buy the stock here it broke down at that 180 and 175 level, and it really got hurt and it made its way back up there and it's an important stock and a company doing some really good things and there have been management changes over the last year when the dust settled this is the sort of company that you want to buy for that next wave

of just the next wave in the economy. this secular shift is real it's going to continue and these guys are well positioned it's an expensive stock and we're going to need to see really what the earnings hit looks like for 2020 and what the pickup looks like for 2021 to gets your arms around it and to me, i like the call because it's a sentiment play at this point and i like the secular area where these guys play. a buyer of the call, dan nathan, thank you very much. >> good calls and got to all three. good stuff >> we will talk about bed, bath & beyond we'll say earnings and there will be results and we'll find out if there are earnings in those earnings at all. we're monitoring the rose garden, as well, of course, and the president comes out and we're liable to dip in, as well. options action, final trades and what's not to like we're back after this.

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>> welcome back. there is a live look at washington, d.c., at the white house and we are awaiting the nightly coronavirus briefing and a different situation here tonight because it is outside instead of in the press briefing room what does that mean? we'll find out and we'll tack you to that when it begans and we'll be back with more "fast money" when it begins after this every financial plan needs a cfp® professional --

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all right. well, earnings results, whatever you want to call them, they'll start to roll across the tape, bed, bath and beyond, stock way down and their numbers are out tomorrow and let's see if there's an options action trade here, mike khouw on bbby this is a name that's obviously been moving a great deal on earnings and it's averaged 11% over the last eight reported quarter and it is expecting a bigger move and this stock is

more than 20% higher or lower by the end of this week we're outpacing calls and most of that activity was concentrated in the may 4 strike puts and earlier today about 6,000 of those are traded at an average price and that may not sound like a lot and it represents 10% of the $4 stock price and what put buyers are betting on there that would represent $3.60 a share by may expiration and that would test the lows that we saw the first week of april and some bearish activity and people are not that optimistic and we are expecting big moves by the end of the week in bed bath and beyond >> not optimistic, down 32% in the last couple of months and mike khouw, thank you very much. guy adami. you saw that bed, bath & beyond and people predicted paying

there and dollar general and those stocks continue to go higher >> dollar gen is a monster north of 180, we've talked about it and now analysts are getting on back of it. walmart, you can sort of understand although i think valuations are getting stretched there, but to sort of dovetail what mike is saying and eps and bed bath and beyond is down 83% year after year and it's paid to be short this name despite moves to the upside over the last fear on short covering rally. i can't speak that intelligently about bbby, and what i can tell you is the retail names that have worked will continue to work, brian. >> tim, it just feels like with whether it's technology or retail, four or five big names that will keep getting bigger and keep outperforming everybody. one wonders what the rest of the sector is going to look like and in bby, and bbby, this is a

case where the digital presence is lower and it will not come out in a better position and they're bricks and mortar and just to speak with the asset class and we pooh-poohed the breadth of this rally and if you look at the xrt and the trades and the retail space and it is up 23% in the last five days and you can't tell me this is a defensive rally when, in fact, we've seen some of the more impaired balance sheets and the highly cyclical names in the retail space and yes, i think there will be pain for the consumer and yes, i'm not going to tell you we're going to the moon and i'm just saying the quality of the rally has included retail and i do think it's notable >> steve >> yeah. so when you look at bed, bath and beyond to guy and tim's point and yes, it has, to guy's point, paid to be short and there's not a whole heck of a

lot of positive news that needs to make this thing spike higher and i think there's a reason why there's a 58% short and it doesn't think that the market doesn't think the stock is going survive and where would i put my money? walmart, as you said, costco is up 7%. now if you look at it this way how has behavior changed and coming out of this, that behavior is going to stay the same for the buyers that shop at walmart and costco that's why i'd stay long those names. >> yeah. stay long those names and the big will get bigger in the sectors and final trades wh it the dow 558 points and we're back on "fast money" right after this ♪ ♪

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nice go around and i want to get the final trade on a tuesday. tim seymour, why don't you kick us off >> sure. a lot of talk about pharma tonight and i like merck relative to the peers trading at 20% discount and the catalysts and i think defensive on earnings merck. >> dan >> yeah. you know, the airlines are popping off this news and the news seems pretty decent here and i just think their businesses are impaired for longer than we think i will not be buying them here and i do not think you'll get an opportunity to buy them lower. >> steve >> microsoft, and big brand where we started the show. microsoft teams benefiting from shelter in place and plus they

have a lot of levers that pull even when we come out of this and microsoft the all-time highs and i'm staying long the name. >> bullish on the zoom, no doubt. guy adami? >> j.p. morgan thank you all we'll si see you tomorrow. mad with jim starts now. >> 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 and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money" and cramerica. other people want to make friends but it is my job to educate and teach you so call me or tweet