baked in and those stocks have been backing off in the last day or so. >> i would only add that we also have a fed meeting tomorrow and a virtual news conference with jay powell we know the fed has been all in here very active and intervening in markets and just recently going into the muni bond market. any comment on the economy will be newsworthy. >> we are out of time on "closing bell. thanks for watching. melissa lee is next. >> welcome back to "fast money." guy adami, tim seymour and steve grasso an earnings palooza, alphabet, starbucks, ford and amd, we are digging in on each of these big names plus morgan stanley's mike wilson is with us and why he says we have turned a big corner when it comes to werings and horton hears a who, and what sent that stock soaring today.

alphabet, the stock higher after reporting a quarter that is under way. we have full team coverage under way and gene munster is listening in on his phone, and let's start out with deerd deid bossa. >> i'm sorry guys just on the call right now the cfo was just talking and i was listening so intently because she was talking about the second quarter and she's seeing some signs of commercial activity recovering and she said it would be too early and too premature to make any kind of conclusion or talk about how durable that may be. going back to the results the ad revenues were hit and perhaps not to the extent that wall street was expecting and they echoed the comments that cfo made saying that it was a tale of two quarters, strong at the start and then ad revenue declined he also struck an optimistic note saying he had reasons to be confident. have a listen. >> let me just explain that to

you. he said he was optimistic because as they saw after the financial crisis in 2008, one of the strongest features is that it can be adjusted easily and you can turn it on and off and that is cost effective for many of the customers the alphabet business is more diversified now than it was in 2008 the prime example of that is cloud. alphabet saying that they are not going to be cutting any investments or head count or hiring in cloud whereas they are in terms of short-term levers which we have heard over the past quarter, and youtube and android plagued the bright spots and now have 2.1 monthly active play devices that fits into the contact trade story, and it tells you the huge reach i also want to talk about alphabet's capital return program, and this is a major question for many on the street. the company repurchased

$8.5 million worth of shares in the quarter and the cfo saying that remains intact and the $25 million share repurchase program and i'll get back on it and expect q and a to start very soon when it came to the peculiickupn commercial activity with small and medium-sized businesses which are huge advertisers for google or geographically past the peak are starting to pick up now? >> that's a great question, melissa. they were just getting into it which is why i was late to look, but she said they're seeing some recovery -- but when i did speak to the cfo on the phone i did speak to her and asked her if there were any surprises and if they were seeing business pickup among certain industries and she hesitated and wouldn't call out any specific industry and travel makes up a lot of google's ad exposure and she said there were pockets within many of them that were seeing some bumps

she didn't say exactly what. i'm hoping they'll give more color there on the call. she just said that they're seeing a little bit more and did not want to draw any conclusion. so they're clearly being quite cautious and also striking a confident note which is perhaps why you're seeing shares up 4% in the after hours >> get back to that call, deidre thank you so much, deidre bossa. >> deidre mentioned shares up 3% during the regular session for google so if you put that move in context, i don't know if there is a judgement in the stock market so far on how the quarter was. >> so, look, to your point, we're basically where we closed at 1270 or so if my math is right. that's number one. so we basically got back what we lost today, number one number two, what we are encouraged by is the youtube, year over year revenue growth. youtube is probably 10%, 11% of the overall revenue.

what you're disappointed about, i think, is the fact that acquisition costs went up which means operating margins are up 20% and you could make a very compelling case for google on a multiple level and just in terms of a cost level. it's not expensive in terms of earnings and this is what i would say. made an all-time high of 1830 or so on february 20th. the recent low on march 23rd is basically 1,008, so it's not surprising that this 1270 level is where it's sort of stalled for a week or so if you're bullish on the overall market, i think you say, you know what? good enough, and if you think today is some sort of turn which by the way, i do, i think you're taking profits looking to buy google cheaper than where we are right now. >> most people, grasso, are being looking through the quarter that was reported. if they can get engagement higher, is this then a move for more share in the future and

when advertising does come back, they may be in a better position to actually monetize that. >> yeah. i agree with that, and i like the way you set it up with guy talking about today's move, and i think if you look at the backdrop of what we've seen, the fang stocks for the last two days have been sold off because there's no way that their safety bet or safety stat us that we've seen in the last couple of weeks can really play out with the rubber meeting the road. so what do i mean by that? you have earnings and when google said they're diversified out of the main search business, they're making 160 billion the next best bet is 660 million in their other bets. they're not diversified and they're attached to the ad spend. so that's one thing. yes, on one side of the scale, you have the engagement, but we need to look through corona to get back to normal life before

we start worrying about how these things play out. i will tell you that if these numbers would seem okay, seem to last for the rest of the fang names, then you can see basically that unwind, that rotation that we've seen in the last two days or so into value, sort of fall off the table i'm long value i'm long growth. i'd like to see that value play work for the next couple of week, but if we get earnings out of facebook tomorrow and earnings out of netflix and the whole gamut of them, i think it will be enough to make it so that this rotation only lasts for a couple of days, but i'm pulling for tech growth to be sold and value to be bought at this point in the equation >> tim, come on into the conversation >> yeah. i want to talk bottom up i want to talk google relative

to themselves and relative to the growth areas youtube up 33% on ad revenues is fantastic and we wanted to see this thing grow and what's gone up in cloud up 52% and remember the multiples coming for other big players in mega-cap tech and amazon is coming from cloud and microsoft. look at that up 52% on cloud and we all know that it's roughly a 59% ad spend story at google. and everybody knows the concern we have around the ad business and here's a positive spoin that what's going on in linear tv and the eventual destruction and what's helping netflix even during a time of competition is fantastic for google this is a tailwind for youtube and it's a tailwind for some of the other businesses so if you look at this as the tale of two quarters, it described relative to either one of those quarters, the core businesses that you want to see

grow are doing better than expected and this is at 20 times multiple for a company of that size where almost 18% of the company's market cap is in cash. this is the easiest high-conviction play in the market for me right now, and i think it's something that people, despite the obvious headwinds should get comfortable with the bottom up story >> karen finerman, your shot's here so what did you make of the quarter? >> okay. sorry about that >> i thought it was a relief clearly, the revenue numbers are good, but the question is what's going on happen now, but i think that it is a complete reversal of the stock action during the day. i agree with everything tim was saying this reilly ally is an incredib powerful story and when you think about the mood of the business and we haven't started to see cost-cut which is is something we never see from google in any meaningful way

so i think to the extent that there's softness they'll be able to help the bottom line somewhat and it's not really a near second-quarter, third-quarter story. it's such an extraordinary business and that cash hoard is huge and i'm glad they're still using it because it gets even cheaper and it is not a crazy price for an extraordinary business >> let's get more on the quarter here and bring in luke venture's gene munster and he's been listening on the company's call. what are the highlights so far from that call >> melissa, this is a stellar advertising business and hats off to them. it's pretty easy to do the math and you can break the quarter down into the first nine weeks and three weeks when things really hit and they were growing their advertising business at 20% which is the same rate that they grew over last four years, impressive and what's surprising

to me is over the final two weeks of the quarter, it was effect life flat and they declined dramatically from that 20%, but for me, a flat business in this environment is impressive so hat's off for an incredible advertising business engagement, too, off the charts and the amount of searching that's done is 4x higher than what it was in the super bowl. so people are at home, they're using google products. this is all really good for their advertising business, but i think it was guy who was putting this into perspective for companies on the other side of this, what does the future of investing look like? this is still an advertising business we have cloud which is the only diversification that's 8% of revenue. solid business, but if you compare that to a company, say apple which is slightly more than half the revenue is outside of the iphone and other companies that are trying to

engineer the future world. that's where i come to, as a trader and someone who is investing in this, think about the multiple longer term 26 times next year is still a pretty healthy multiple. >> gene, i don't know how advertisers work in terms of how real time their what google takes or what alphabet takes in is a reflection on what's going on in the economy. if you're a travel company or a small business and you want to advertise on google, do you buy that a week out? do you buy that two weeks -- i'm trying to find out if there is a lag time because they're talking about the last three weeks that we have seen so if people have bought that ad space three weeks ago maybe we don't know what the full effect is >> so what's unique about the google model, this is different than facebook and we'll be paying close attention to that and it turns off virtually immediately and that's why they refer this as two quarters i think there is a very clear

delineation over the first week in march that's good news, and they can come back relatively quickly they also had a piece of the comeback side as they said that some of the results in asia pacific were slightly more positive which i think speaks to trying to put pieces together about when this recovery starts. it is -- a conservative person i try to always exceed expectations and google is setting expectations that ultimately things are starting to improve and it is encouraging. >> all right >> gene, thank you >> thanks for your time and analysis we'll see you tomorrow so, guy, your quick thought after hearing what gene said and the latest on the conference call >> well, i'm not correcting gene because you can't see and it was steve that mentioned sort of the diversification that google

enjoys or to steve's point and maybe not enjoys as much and again, if you're putting your trader cap on which gene was sort of doing and i'm not take away anything from the quarter and they operated better than a lot of people expected my point is this, if you look at the context of what the broader market did and there's this 1275 and twef1280 level and it's a 5 retracement to take money off the table and look to buy this stock cheaper. >> after-hour session highs up 4.4% we'll keep you posted on the moves in the conference call breaking news on uber. the ride-hailing giant is discussing plans to lay off 20% of its employees and let's bring on amir efradi and he just broke the story on the information >> already on april 16th they withdrew guidance so we knew they were foreseeing the impact of covid, but tell us what sorts of employees and what other

sorts of cost-cutting measures may be in the offing >> well, employees of all ride-hailing companies whether uber or lyft or anywhere in the world have seen their businesses take a nose dive as much as 80% compared to next year and there is an expectation broadly that layoffs were upcoming. it is unfortunate because ride hailing and uber is maintaining the profit a lot of people don't even realize that, but never theless it's all gone now and they don't know when the recovery's going to happen. a 20% reduction is one of the things that they're very seriously discussing right now some groups may be hit harder than others and it's a huge company of 27,000 employees. >> google wenting with the drawing their guidance a week later. are we thinking, probably this will happen also at lyft

>> yes lyft is much smaller in terms of its business so it's fixed costs in terms of employees are much lower than uber. >> they have a lot food delivery unit at uber eats that is growing as fast as it was in the fourth quarter of last year, reit now so they have something to hold on to and put their effort into. >> amir efradi with his information about his report on this, you're looking for a return to normal, but where would you expect that turn to happen >> i think that turn happens and there are similar dynamics here with the airlines and whether you're more comfortable in a localized environment getting into a ride share versus getting into an airplane when you have to go some place or you really want to go some place, but the easier decision is to locally

figure out something else and so i think the fact that they're cutting costs and getting what they can to get through a difficult time, we talked about balance issues with this company in particular. so i think this is a case where you have very little reason to get back in especially for a company that, yes, was showing profitability trend, but still the complexity of this business makes it a harder business in this environment, and if you had a relative value, would you rrth rrt rather -- lyft is an easier call i don't see where you you would invest >> you go for option c recalcitrant coming up. we have a lot more earnings reports to break down and we'll dive into the numbers for starbucks, ford and amd and mike wilson will join us with his thoughts on the rngseaeain sson and why he thinks we may have

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welcome back to "fast money. the dow snapping a four-day win streak while the s&p 500 and nasdaq closed at session lows and the maga stocks are kicking off a huge round of tech earnings and let's bring in the chief equity strategist. mike, great to have you with us. >> thank you we got the report from alphabet and the stock's up in the after-hours session about 1% over what it lost in today's regular session. i'm curious, if the rest of tech sort of delivers like this, do you think we can hold on to gains? that's enough. >> i think you guys have said it right. i just got back in the after market what it lost throughout

the day and these stocks have been tremendous winners for years and not just this year our view on the market overall is that we're bullish overall and we just think there's more upside in potentially some of the laggard areas and one of the reasons we feel that way is because quite frankly, the revisions have been much worse and the earnings revisions have been much worse for some of these smaller cap names and some of these out of favor areas and the down side risk is less there and when things turn which we think they will in the economy later this year there owe operating leverage and upside in those names and that's not saying anything bad about google and the large cap growth stocks. they're wonderful companies and wonderful business models and you don't have the upside potential as the laggard areas do >> in terms of the upside that you foresee what's your forecast and i'm curious in terms of the upside and you're saying that this rotation that you've seen recently to value, that's going to persist that is going to drive that

upside >> it's not so much value as you can have growth stocks, too. it's really kind of names that have not been leading in the past cycle. whenever you have a recession you should be looking for leadership change and it does revert back to early cycle groups and part of those are consumer discretionaries and the banks and some of the beaten up areas in the material space and even energy stocks have been on a tear i wouldn't recommend diving bark into energy given what's going on in the commodity markets perry is. >> the areas that were completely eviscerated have a more upside and it should be a broader market and when you come out of a recession it should broaden out and i think it's a healthy development. >> guy, you have a question. >> mike, i'm sorry, mel. mike, you navigated this really well in the broader market and in terms of, first of all, does

it matter necessarily what your forecast for s&p 500 earnings are? if it does, what's the number and what's the right multiple given what the federal reserve is doing right now >> yeah. i don't think 2020 really matters that much, guy i think the market is already looking past this year into 2021, and so 2021 does matter for right now our range is sort of 150 to 160. i could see an upside case to 170 if we get back to work faster and there's no recurrence of the virus >> i can also see down side to 140 next year if things go poorly and i would say 150 and 160 and the multiple connection expands further given what the federal reserve is doing and they have completely taken out the chance of risk premium blowing again, and they're intervening directly, and i think you can trade 20 times, to 119 and it gets you to 3,000 as

a base case and 3200 as an upside case. >> mike, i've been long -- it's steve, by the way. i've been long value waiting for this rotation to take hold and longer than a day or two when you're looking at value and this taking place, what gives you the confidence that it can actually take place this time and what segments of the value sector basically are you thinking it will have the most upset? >> what's different this time, steve s that we have a recession, right so we've been making this rotation call into these cyclical areas and i would say it's cyclicals versus value versus growth. the defensive parts of value worked beautifully the last couple of years and those were late-cycle areas and what we're really talking about is early cycle sectors that tend to do best coming out of a recession and into a recovery and as i mentioned before that would be

things like consumer discretionary, like the banks and the consumer services area that have been beaten up because this recession is centered on that and then maybe some of the commodity areas can participate, as well. >> mike, good to have you. thank you. >> thank you >> karen finerman, we're talking about sectors that are difficult to understand how this turn happened and we were talking about getting back to normal for retail and curbside pick up going to be normal is shop boy,a point going to be normal is travel going to be normal >> these are all within the sector >> i mean today they would tell you it's going back to normal pretty quickly retail was on fire today as well as a lot of those other beaten down sectors i think there will be a return to normal. maybe not in the next six months, but longer than that in the next year. i do think there will be a return to normal i just don't know who will

survive that whether the department stores like someone like lululemon, of course, they'll survive ask tlif a thrive and their stock reflects that >> we're right in the heat of earnings season. we'll get the details behind starbucks and amd and take a look at the market tapping the junk bond market and is this riskier than investors think "fast money" is back in two. to give you the support you need... to stay motivated keep active and sleep well. add a little more health to your day... with nature's bounty. we're committed to makingh college more affordable., that's why we're keeping our tuition the same through the year 2021.

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welcome back to "fast money. we have an earnings triple play. starbucks, ford and amd. josh lipton is out west with the latest on amd and phil lebeau is in chicago and we kick things off with kate rogers and

starbucks. >> a mixed second quarter for starbucks and they beat on revenue and same-store sales fell by 10% globally and 3% in the united states and 50% in china. starbucks said it had a very strong holiday season and one of the best in history before covid disrupted operations causing it to close half of its stores temporarily in the u.s. and that's its biggest market. ceo kevin johnson sounded upbeat and positive on the earnings call nearly all of its stores in china are now back to normal operations and same-store sales were down 35% in china in february that number was down 90%. starbucks has now moved on to a monitor and adapt phase here in the u.s. and it will start to slowly and carefully reopen in may. while starbucks did pull its full-year guidance, and the onset of covid-19, it expects the negative financial impacts of covid-19 to be significantly greater than 2003, to extend into q4 for fiscal year 20 and

adding more moderate level and giving more color there even though it did officially pull its full-year guidance >> kate rogers on starbucks. starbucks, tim seymour, i think you like this name i'm looking at tim's shot and i think it's frozen. i'll go to steve grasso there. >> they gave us information when they withdraw guidance and is there anything different out of this quarter that makes you think any differently about this investment >> no. i always compare, and i throw starbucks in for dunkin' donuts and starbucks is always outperforming and my nervousness is what made it a great stock is that social engagement so the more you dip into the digital side of starbucks makes me think that they're getting away from their grassroots and what makes it a successful

company. >> the other side of it is, china is still devastatingly terrible, and the more that last, the more they're going to get into digital and the more they move away from what they do best >> hold on >> hold on >> i don't think they'd be out of the woods >> it sounds like grasso, like the whole notion of using free wi-fi in the bathrooms even if you don't buy anything that is the starbucks culture? guy adami, is that what makes starbucks successful and integral to the band the fact that you can walk into a starbucks and use the bathroom, use the wi-fi and camp out >> it's part of the experience, clearly, and again, this is not my necessarily, you know, my go-to place to hang out and get wi-fi. with that said, i understand what steve is saying part of it is the experience and the biggest problem i have with starbucks is the valuation it's probably trading close to 28 times next year's numbers

which is either very expensive in this environment or if you don't care because the fed is the ultimate backstop because it doesn't matter i think it does matter in this environment and it's had a good run off the bottom like most stocks have, and i understand how you'd be taking profits and looking for another re-entry lower in starbucks. >> we'll get to phil lebeau in chicago. phil >> it's down because of what the outlook is for the second quarter. it's really not what they did. ianian, february, march, ridiculously bad the coronavirus, impact, they've calculated that to be a $2 million, any negative 2.2 and it's all about where the liquidity is they currently expect the loss of $5 billion in an adjusted

loss of $5 billion in the second quarter and liquidity stands at 35 billion there ares and they just had a couple of offerings a week, a week and a half ago and highly oversubscribed and they raised $8 billion and the ford's cfo says the cash they have on hand, even if they don't do anything in term ws of increasi production, it's sufficient to get through the end of the year. and we know it will come back in some fashion by the way, they're targeting may 18th as a potential, potential start date, but again, a lot of things up in the air and it's a very fluid situation and we'll hop on that and hear what the ceo has to say and ford expecting to lose at least $5 billion in the second quarter. melissa, back to you >> thanks,phil phil below in chicago. karen finerman, what do you say about ford >> not much. i mean, it's really hard to believe it's a 5 and change

dollar stock but gm has gotten out of their european exposure to a great extent ford hasn't. the balance sheet is much better and i think they did suspend dividend and they should if you want to be in the auto space which has not gotten a bid no matter what, it seems, then i would much rather be in gm. >> let's run out this triple play of earnings with amd. the stock is down on results let's get to josh lipton with the latest josh >> melissa, let's get right to the guidance for q2 they're looking for revenue of 1.85 billion for the year there was debate about this they say they're looking for revenue up about 25% they say plus or minus 5 percentage points and expectations closer 28%. two segment, remember, for amd, computing and graphic segment, revenue 1.44 billion that was a "b. that number includes chips for

pcs and it would include graphic chains for gaming. revenue there $348 million and that was a miss and that would include chipsfor the data center for game consoles like xbox and playstation i checked in with hans rosen, and he said that segment should be smaller and that should be a focus for investors and those are the more strategic and profitable area for the company. >> thanks, josh lipton let's trade amd, guy >> so quickly, i will trade m.d., to mention ford is lower because the tock is trading and not to cast as mergzs. if you look it traded up 59 and change and the crater move like the rest of the world and it

came back and recently traded at 59 this quartz aer is not that bad i think the ceo is on tomorrow if i'm not mistaken on one of the morning shows. i think if this stock gets down to 51 1/2 and 52 you buy it with both hands because typically they're able to explain the quarter and a lot better in a longer form. 51.5, and 52 is a buy, mel >> 9:15, a.m., you are correct lisa su on cnbc. you won't want to miss that. coming up, building big games and we'll tell you what the builder said about the future and later, we're gearing up for facebook earnings and why we're doing social media distancing heading into that report by the way, shares of will fabbet are high by 5.6% and we'll get into that right after this we'll welcome back old colleagues, get to know new ones

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>> welcome back to "fast money." shares of alphabet hitting after-hours high and now up 7.6% and deidre bossa has more on this big move. deidre >> hey, melissa. that's right we are listening to the call-in a number of times and cfo ruth port has been talking about perhaps some green chutes and she says they're seeing some early signs that users are returning to commercial behavior, but she says it's not clear how durable or how monetizable that will be she cautions that a few weeks do not make a quarter, but as this call is going on you have seen alphabet shares move up to the tune of 8% and there's been a lot of talk around youtube numbers and they were strong and the company is saying that youtube's direct response has been strong and cautioning saying they'll see a decline in

brand advertising. the talk has surrounded a lot of the strong momentum on youtube, and cloud. of course, remember that cloud makes up less than 7% of total revenue. so while it is seeing strength and the company will continue to invest in this business, it still makes up a small amount and melissa, these green chutes we'll call them, these early signs may be giving investors hope even though the company is cautioning >> deidre bossa with the latest on alphabet shares surging facebook is up by 6% and twitter is up by almost 3% in alphabet tim, can we extrapolate? should we extrapolate? >> hi. yeah, we should extrapolate. i think the bottom-up story at google, even in a world where the macro and the winds are well flagged and so strong for a company that is transitioning into higher growth businesses. again, you guys used the word

diversification earlier in the show, so -- >> technology fails us once again. if you could see this board of the different shots that freeze occasionally just because that happens with remote shows like this it's, like -- whammy, and tim was it karen is also not here let's go to grasso let's talk about the extrapolation and twitter. grasso, you're not frozen yet. why don't you give us your two cents. >> there is a conspiracy theory that i've been cutting the lines for careen akaren and tim just get in here. the extrap lagsz and i'm onboard with that because when i was looking at snap and twitter towards the end of the day, i thought, hey, they're going to be an outsized move based on the cut or the reduction in ad spend. so when we start to see these numbers be better than thought then it's going to go with the

higher beta play so i would expect to see twieter and snap both up tomorrow. i would expect to see all of these ad plays up tomorrow you would, unfortunately, expect to see value sold off at least for the remainder of the week. >> all right let's move on now. the nation's biggest home builder just gave us a clue about what the path forward might look like. the important uptick in sales within just the past two weeks the company's ceo also painted a rosy picture about the future saying, quote, the mood of the country seems to have improved over the last 30 days. d.r. horton shares were up, i believe it's 9% or so during the session. tim, here's the question i'm interested in seeing what your mood was over the past 30 days and you also have been in a better mood, but more importantly, can you have this consumer whose mood is improving and be potentially on the brink

of some sort of economic downturn >> i think the consumer is in many cases again, think about their consumer and their target audience i think they have some clarity i think based upon a minus 50 print they were talking about just a few weeks ago to come in at minus 11 is -- is a lot of, you know, relief and exhale, but i have it is i have to say that these stocks run almost 85% off the intraday low that's an extreme downdraft and it's 60% off the low and i don't know that we know for sure i think homebuilders give you some read and the unemployment rate in this country and we look at jobless claims and essentially 18% of the u.s. employment workforce is now unemployed i think this is a relief, and i think homebuilders are part of that recovery story and the lag

story, but it's barely lagging at this point and this is a less bad, existed day and not a reason to buy it tomorrow. >> coming up, credit concerns and is the recent rush creating a high-yield hazard. we're digging in how they're ttbeing ahead of the social media jiefrgiant ahead oe returns.

welcome back to "fast money," the fed taking center stage tomorrow as it wraps its two-day meeting. the fed made an unprecedented move it is a it would buy high-yield bond xs etfs. that sent it surging off of its march lows and a slew of strugglingcompanies have since

tapped the debt market including carnival cruise lines and gap and has the virtual guarantee created a big risk in the market, careen and what we know so far is that the fed actually has not bought one cent of high yield anything so far. >> i know. how amazing is that? all they have to say is just say they will do it and that solves a problem and putting a huge floor and allowing the companies to say all right i can tap those markets and the fed doesn't have to do one thing and the banks that have the weaker loans then can refi them out to the markets more broadly and get a fee in the capital markets for doing it and that's an amazing trick that the fed has done it's amazing to think how sharply things have come back and they haven't even begun the

high-yield program yet >> i hope they will soon, i guess. >> if they don't need to do anything maybe it's better that they need the word we're here if they need to be and then they don't have to do anything and that's probably pretty good. >> karen and i were talking earlier today about this very topic, just on the phone and what we were saying if hyg has gone off of this far of the lows, right? is this a buy the rumor, sell the news sort of event so people who bought into junk bonds are then going to -- should they then sell to the fed effectively what they have bought is the time to get out pretty soon, guy? >> it's interesting, right and i'm going somewhere with this, indulge me >> are you a fan of "the princess bride" by any chance? >> what do you think no but keep going.

>> so the pirate roberts, he didn't have to do anything he just did it on rep tagsutati and, there were about 15 pirate roberts and everyone was terrified and it's the same thing, karen just said it and they don't have to do anything like the federal reserve and i don't think the world's necessarily gotten better and the fact that the fed says that it's going to be there is given people the confidence that they need and again, i would be more inclined to sell into this knowing maybe that the fed is magically lower than they keep hoping the fed props these things up and i'm sort of on the other side of this trade, mel. >> and karen is short, and i'll just say that. i have a bunch of delays and i'll just keep the conversation going, and tim, if you were forced to choose and trade it or fade it and it's an embedded segment, where would you go with that >> love this >> i would fade it, and again, i believe that the high-yield

markets have repaired the fed's going after the plumbing and we're talking about forward guidance and that's the best tool the fed has and that's one of the few tools it seems that they have left and i think we talk about on the show all of the time about the credibility of the federal reserve obviously, the market backed that forward guidance on the high-yield market, but it doesn't mean that ultimately they can support it. remember the last crisis hank paulson talked about having a bazooka in his pocket and that alone is not enough and the fed talked about the biggest bazooka in the world and that's not a reason to go by value and high yield or lack thereof. >> quick to grasso, same question trade or fade, hyg >> i'm going to trade it and it is trapped below its 50-day moving average and i would wait until it breaks above the $80 mark before the financial crisis that was too big to fail, nowacki one will be allowed to fail, and

even though the fed has said it has done what they said they would do >> facebook's earnings and why options traders are betting on a big drop and frequent flyers, listen up. we will show you what really happens when someone coughs on a plane. the dirty details of this must-see video when "fast money" returns. save hundreds on your wireless bill

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>> welcome back to "fast money," alphabet hitting after-hours highs and facebook reports tomorrow after the bell and that stock is down 11% on the year and dropped another 2% today in the options market traders are betting on even bigger losses around the corner and mike khouw has the action. mike >> hi, melissa interestingly enough i have just joined facebook or not interestingly enough last week i might be the last person signing up and right now the options market is implying a move of 6.6% and interestingly, that's less than the 7.7% that the stock has averaged over the last eight quarters and a lot of the opening activity that we saw today was in the weekly 170 strike puts and those are trading for $1.20. buyers are betting that the stock will decline after they report below the 170 struck by

the 120 that they paid and that would put the stock below 168.80 tune into the full show friday at 5:30 p.m. eastern time. coming up, the plain truth behind what really happens when someone coughs on an airplane. we have the dirty detail when we come right back.ll my fa able, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

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coverings for all passengers and that starts next month, but here's the big question. will masks be enough to make you feel safe on a plane the washington post publishing this animation from purdue university shows how germs travel inside a plane and the visualization shows you how tiny invisible droplets from a single cough will flow from a boeing 767 jet and imagine you're sitting next to and the surrounding seats of the purple seat and you're just out of luck, basically. karen finerman do we use that sort of information to try and understand whether or not people go back on planes? >> well, i'm actually very glad that i can't see that video. i think the mask will help and they'll have to address it other ways as well and i don't know maybe with the circulation system or clearly, they have to address it or somehow they'll get that video off the air, but

i'm optimistic, one day air travel will be back. one day. >> we just keep playing it in a loop over and over and over again. so tough luck for them is obviously, the faa can mandate and what could that mean, tim? you've been an investor in the airlines for airline profitability saying you need these filtration systems and you need to wear masks and ppe, whatever it is >> through's clearly going to be a new normal, sorry it for that term and it will be one that -- how are we going to eat the peanuts when you have a mask on. >> do i think that airlines rallied big today just out of the fact that you get it at thea irlines. >> grasso, final trade ♪ ♪ >> so shake shack, i've been long this one for a weil and

it's bounced 75% stay in shake shack. >> karen >> yes i am short hyg and i think long banks. >> guy ♪ ♪ >> amd on the weakness, sister. >> my in addition 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 is not just to entertain but to educate, teach, put it in context. call me, 1-800-743-cnbc. tweet me at jim cramer why the heck is wall street so optimistic that we can re