is not the case last night >> no, and it's not -- it's unusual to see in a period where we're seeing such strong economic declines and earnings declines we're going to get a jobs report on friday for the month of april. that's going to look very ugly as we've seen from the millions of claims that have piled up the disconnect between the markets and economy i think continues to be a major neem, and also the retail institutional investor on where the market is going and what they're doing. >> lots more to discuss, melissa lee will continue the discussion next fast money starts right now. guy adami, tim seymour coming up on fast, the airline stocks grounded after warren buffett throws in the towel on the group. should you follow buffet's leaf? also, the forth may not be with disney today.

a heaping of starbucks and shake shack after the closing bell despite a host of developing threats out there, no disability a quarter of companies that have reported so far have yanked guidance china threatens retaliation for its role in the pandemic, and the virus death toll, new reports we could see 3,000 deaths a day in the united states as states begin to reopen. is the action we saw today actually a sign that the market may be climbing a wall of worry? >> hi, mel. >> hi, guy >> it's clearly climbing something. tim's been on this theme, so kudos toll him i was impressed, the price today was, you know, very interesting. so kudos to the market and people that still believe in it. out of the three things you mentioned and loss of life

obviously is the most concerning, but in terms of the market, you know, this potential retaliation against the chinese, that steve mnuchin spoke about today, and saying the chinese were still going to honor their trade agreement, i personally don't think the markets are paying enough attention to this. i happen to think this rhetoric is only going to get louder and it in no way is market positive. although today was impressive and energy really -- >> i think we're having some problems with guy's shot we'll go to tim now in terms of your thoughts. tariffs could be the biggest potential worry? >> energy. >> we're still in the midst of a trade war, we only had phase one go into effect in february we have other phases to go, and we're talking about a ramp in tariffs at this point. >> right, and think about the job in a the market has gotten from the fed, what the fed has done versus what they said they

could do when you come out there and start talking about leveeing tariffs and going back to trade war, even if it's just rhetoric, that's not what they want to do right now, they're trying to boost moral, trying to ultimately boost confidence in markets, but also in the global economy. >> this is a little puzzling, whether you believe it has merit and base in purpose and efficacy guy was mentioning energy before we lost him, i think that's something that at least is encouraging. you're seeing some of the technical elements of the market we know that the supply and demand fundamentals aren't great. we know it's going to happen to demand we have to get some sense for the credit issues, we still don't know that, oil is up 40% in 4 days. if you look at other constructive parts, they were part of that resilient turn around today we have terrible data out of asia, and those were pmi's from

countries that gave us some sense of confidence the earlier month, taiwan went from a 50.2 down to 41 and change on their pmi. just because asia's 2 or 3 months ahead of us, doesn't mean it gets better for them necessarily. i think that's what we're worrying about >> time and temperature for the park for you, dan? >> yeah, i think what tim had to say about a lot of these different moving parts is really important. it's obviously been a volatile period over the last 2 1/2 months or so to say about the u.s. stock market pretty interestingly, toward the end of march, when it was down between 30 and 35% in a little more than a month the selling became very indiscriminate, especially given what we didn't know about the health in the economic crisis. a week or so ago prior to the bulk of the s&p earnings here, i feel like we felt things were getting a little too much over

done to the upside up about 22, 23% from the lows. here we are right now, struggling with this 2800 level in the s&p 500, which is nearly the mid point of that 2 1/2 month range from 3400 the up side to 2400 on the down side. i think that makes sense you use the term visibility or lack there of just before. that's where we are, we have to digest what corporate earnings are going to look like, what are the next shoes to drop for the economy. we don't know right now, the idea that the market takes a bit of a breather here, and addresses some of the commentary for the major companies, makes total sense. i think the market is totally pricing in a lot of rosie scenarios with the s&p 500 only down 12% on the year, given what we know despite all the stimulus to me, i expect a retest, at least somewhere 10, 15% lower than current levels here >> dan mentioned the next shoe to drop. is there an assumption that

there is a next shoe to drop >> i think there's a next shoe to drop, in that i think the reopening doesn't happen as smoothly as we like, and that the rebound for so many companies isn't near what we hoped it would be. i agree with dan, i think the market has come way too far too fast looking through to the other side, we don't really know how far away the other side is, the one thing that is really important, though, is that the credit markets are wide open companies that three weeks ago or four weeks ago, really were thinking very hard about their balance sheets, how are they going to survive they're able to do deals now this is some of the most active capital markets we've ever seen. that's helpful and the fed has obviously said we will do whatever it takes that's helpful, but i really don't -- it feels like people think the fed has done a money

push i don't believe it i'm always looking for things to buy, and right now i find very little things to buy it's amazing 3, 4 weeks ago, there was plenty to buy so i think this bounce back is really really too far, and i think it's discounting very good treatment. a vaccine next year, and a robust recovery in pretty short order. >> the credit markets being opened that's really a lifeline for a lot of companies, that extends the amount of pain companies can endush we're talking about companies from ford to avis. troubled company in a troubled sector, to apple which doesn't need the money, but is going to raise the money anyway we have companies out there raising money left and right with the feds implicit back stop to all of this >> which is definitely market bullish, but it gets you down the rabid hole of should we do

be doing it in the first place or should we be allowing the phrase corporate darwinism to take over. i favor that it's not pleasant but i think it's vital and important and necessary. to sort of echo the things karen is saying, i find myself -- you know, i think tim's on one end of the spectrum and looking smart on that now. i find myself closer to dan at this point than tim for a myriad of reasons, i was mentioning this u.s. -- china rhetoric that is going to continue to escalate i don't think that's bullish or the market is giving it consideration it needs to. here we are at 2800, i think it's a level where, you look at some of these stocks and say, it's time to take money off the table. >> big cap tech helped prop markets up today don't change this mini-maga rally, though. always great to speak with you great to be here

>> you're not talking about technology, you're saying overall, don't buy anything right now, why not >> i think we have to be careful about making it a big cap tax thing, at 29.50 i'm not chasing. what's interesting, the fed put -- if you had a strike price, it would be right here, this is -- on april 9th, the game changing decision that the fed made was to announce a $2 trillion stimulus package that could buy municipal debt that made it going all the way back to the low on likely. you have a fed putting it right at this area, this is a perfect place to have a real bull/bear epic battle. a tug of war between monetary stimulus and negative economic outcome. and what a place the rage is right here >> what should investors do at this point >> he with load our rating

market in january. to get us more offensive, to mirror what a lot of the other panelists have said. you need to see more than these mega cap stocks rallying the s&p 500 is the 28, 25 or wherever we're close today it's all up on these mega cap names and accounts for 20% of the index. i don't know if it's good or bad, it is what it is. if you look underneath it, what would get me more offensive, you would want to see the u.s. treasury market have a pretty significant uptick in yields suggesting that it's betting on economic recovery. it's what happens each time as we talk about last time, you're coming out of a recession, you get a sharp steepening of the yield curve, if you couple that with relative out performance of the offensive sectors, that is where you want to start to attack the problem is, let's say, i don't know, 5, 10% ago i said, everybody in i would have been wrong on my sector bets.

it's been these mega cap stocks versus the underlying sustainable economic outlook groups >> so tony, it's dan, how are you? >> good, dan >> so talking about these maga stocks microsoft, apple, google and amazon all of them reported decent earnings amazon had some issues do you think there's risk if we do take a leg lower in the broad market that those names lead to the down side and present more of a problem than if western to continue that toward 3,000, the help that they may give to the up side. do they have the potential to snowball because of that concentration? >> well, i got to tell you at 2300 with the most historical condition in the market's history. you got to buy for relief rally. so now what i could sigh happening after we've been

turned back at 29.50 frankly, i felt like an idiot, because i didn't get it. i didn't think it would go up that much. back here at 2800 i could envision a situation where the market -- the s&p 500 index itself doesn't do a whole heck of a lot, but you start to see the roy taking underneath. to karen's point there, a lot of the broad market hasn't been lifted, fines have been a disaster, industrials have underperformed even with today's strength and today was a good day accept financials and industrial industrialals, the two offensive sectors that lead out of a real economically driven bear market low underperformed you had had a nice stabilization in the treasury market, i want to see those groups catch a real bit. more than a one or two day bit, pick up the relative performance, then we can get offensive. >> not defense you need signs first >> tony, great to speak with

you. thank you. >> thank you, have a great day >> what do you make of the underperformance we've seen in financials and industrials >> i'm kind of surprised with the underperformance of financials mainly. i can accept that maybe this is where they should be, or they should be lower. what i can't understand is, how is the broad market here with financials there that is a disconnect the economy is going to be much better than the banks are telling you, or the banks are telling you the economy is going to be weaker, those two things i really think need to divert, so i'm long financials. you know, i think we're in for some big provisions coming up this quarter and next quarter as well on top of the one they reported. but i think they're going to make it through. and so surprising to me that -- and they are levered surprising to me how big this underperformance is. >> we have some breaking news on restaurant brands.

let's get to dom for the latest. >> restaurant brands, the parent company of burger king, tim hortons, popeye's, louisiana kitchen up 5%, roughly 2 million shares of after market valium. this is on headlines coming out, because pershing square's bill ahman has now taken his stake above a threshold amount to a total qsr. you may recall that he's been an owner of the stock for the past 8 years, he actually made some comments to our very own scott wapner just a few momenting ago, saying this is in no way an activist position, and they fully support management and the board at restaurant brands international. they tend to go into discussions. not an activist position but the reason why they made this is because they crossed a threshold amount from a

regulatory perspective it's now roughly about a 9 1/2% stake in restaurant brands international. back over to you >> thank you, dom, guy adami i'll go to you, owner of popeyes, et cetera >> i wouldn't chase. >> no, i love -- >> yeah, but not a cheap stock and less cheap now with the move to the upside. you know i love popeyes, we did that taste test when we were all together months and months ago i don't think you follow, in my opinion, you don't follow him in at these levels. to dom's point, the disclosure needed to be put out there, to chase it up now, probably 10% in the after market, i think you're trading wrong, i use this as an opportunity to trim the stock. >> well, it -- bill ahman's been decent in the fast casual and

quick serve space. think about chipotle, other things he's been a part of recently where he saw not only a trading opportunity, but a fundamental bottom up. i would agree, i don't think i chase a filing, but -- and again bill ahman is someone that went pretty aggressive near the lows in the market with putting the cash back on an allegation basis. we're going to talk about mcdonald's later in the show, shake shack. i don't think it's a great environment for these quick serve fast food locations. having said that, i do think there are franchises that are taking market share relative to their peers. >> we're going to talk about food next actually >> a java volt, what starbucks said had the reopening shooting higher in the after hours session. is this the mcdonald's of the future, the big test underway in the netherlands that could show fastoos w rm fd'nenoal i know that every single

time that i suit up, there is a chance that that's the last time. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan. this can help you cover your essential monthly expenses. learn more at protectedincome.org .

yeah. this moving thing never gets any easier. well, xfinity makes moving super easy. i can transfer my internet and tv service in about a minute. wow, that is easy. almost as easy as having those guys help you move. we are those guys. that's you? the truck adds 10 pounds. in the arms. -okay... transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today.

let's get straight to phil lebeau for the details >> the stock is plunging right now on reports that hertz is hiring restructuring lawyers and bankers preparing for a bankruptcy filing. that's why when you take a look at shares of hertz, it's under pressure on this report that they're hiring restructuring lawyers at hertz in preparation for a possible bankruptcy filing they just missed a lease payment or there are reports of them missing a lease payment at the end of last week, that's when you start to see the pressure mount on this stock. we know what's going on with all

of the rental car companies, and the financial pressure we've been facing especially given the fact that we've seen a massive drop arrange the country >> what is the ripple effect if any, on the auto industry of hertz taken out as a player, a buyer, fleets of vehicles? >> well, i'm not sure they've been taken out as a buyer. more than anything, it's that they restructure their debts and especially when you look at their fleet portfolio, that would have some implications in terms of the pricing, the residual values on those vehicles in terms of demand in talking with executives in the auto industry, almost all of them say the same thing, they're not expecting much demand for the remainder of this year they realize what's going on in terms of the rental car companies. >> phil, thank you dan nathan, it's no surprise, they missed the lease payment, the clock was perceived as ticking since that point in time, and it's being hit, no travel to airports means no rental cars from there.

>> yeah, what's sat, mel is that obviously hertz avis, these are great american companies, between the two of them, that doesn't mean those employees are all going away, they're going to restructure their debt, the equity in these two k47s is at zero the main takeaway here is that prepandemic, these companies were already in massive decline, and this was just an accelerant for them, i'm not sure it gets much better for them on the way out, no matter how they restructure their debts. fundamentally these businesses have changed and it's going to be a very tough environment for the next few years right now, even if they were not to change too much from here >> saying that these companies basically are zero is pretty dramatic would you agree with that? >> well, i think in hertz case, that's probably true, look quickly at some of their debt that's due in 2022 it was 100 cents on the dollar

it's now 18 cents on the dollar. so that's telling you that the equity, if that's where the debt is trading at 18 cents on the dollar, the equity has to be something that rounds to zero. for avis, when i heard that story about hertz, is that a positive for avis is is it a negative that hertz would be able to restructure in bankruptcy and run more efficiently. or do they just pull back from the market that might be better for avis. i don't know, it's a scary space to be in thankfully i'm just a voir >> you've got an earnings alert for you meantime on shake shack. kate rogers joins us with the details. >> a mixed first quarter for shake shack. a miss on revenues as the company warned in its preliminary earnings report in april, same shack sales fell by 12.8% for the quarter. the end of march really hit the company hard, sales falling to 29% due to shutdowns seen across

the country. a few bright spots in these earnings report. they noted the company is beginning to hire back some of the companies that it's furloughed since the low point of the quarter, shake shack is seeing steady increases in sales thanks to expansion of its integrated delivery partnerships and its licensed business is starting to experience small signs of recovery in korea, hong kong and mainland china in a limited capacity covid-19 will add additional costs as it invests in supplies to keep its staff safe the future impact of the pandemic can't be reasonably measured at this time. kevin johnson just out with a letter to the company's employees as it begins to slowly start to reopen some of its stores across the united states in modified formats beginning today. 85% of company operated stores will be reopened across the united states. they are expecting more than 90% of stores to be open by early

june, under modified operations and hours. very important point there johnson added the foundation of our approach comes from what we learned in china, where more than 98% of our stores are now open, and we're operating under revised protocols. we revised these protocols for the u.s., and heightened emphasis on cleaning and sanitizing protocols in our stores starbucks beginning to get back to normal starting today melissa? >> thank you, kate rogers. in your mind does it make sense for starbucks to reopen that many stores across the united states if a large swath of the country are still sheltering in place? >> you know, i'm going to let starbucks make that decision i think they've been a socially responsible -- >> i'm sorry, to interrupt, tim. i don't mean this to be an indictment of starbucks.

from an investor standpoint. does that make operational efficiency sense to you? >> well, again, i think they willing probably have adjusted staffing if you think about what's gone on in china since they went to this 98% stores that are open, their sales are down 35% we got a little excited out of the gates, and now we have a full month of that u.s. is still 66% of operating income as of at least 2019 so it's -- we want to see those stores -- you're right, at some point there may be a bigger burn to having more stores open if people aren't fully back in certain parts of the cunning the. i think that's what they have to do, and ultimately, beginning, kevin johnson as an operator has always impressed me to understand how to count paper clips, and ultimately that's

what that comes down to. and i think he'll do it. >> guy, i'll go to you on shack since you worked there for some time >> hi, it's karen. >> guy >> i'm sorry, i heard karen saying -- i apologize mel, i worked at shake shack and i'm proud of my time at shake shack. how do you trade the stock >> it was february around 78, things just went to the down side pretty quickly. a major double bottom at 30, this is a 50% retracement. i think you live to fight another day. >> we asked you this question, could this be the mcdonald's of the future take a look at some of these images this is a proit toe type of mcdonalds in the netherlands the restaurants providing social distancing, you have big yellow

dots on the ground hand sanitizers at the entrance. there's a huge plastic screen between customers and the person taking your order. and so you think about this and if we're going to continue living with this pandemic amidst us, dan, is this the kind of mcdonald's that you want to go to and are we ever going to get back up to the capacity that mcdonald's once had if these sorts of measures are in place >> yeah, i think that is 100% the right question we know these brands don't have pent up demand it's whether consumers get back to their old habits. are these new measures, impediments to having that experience when it looks so different than the one before. i'm not certain about that, if mcdonald's from higher on out is going to be about drive throughs and takeout. 2350i7b, consumers will become used to that with starbucks for instance. it really is about lying around

there and getting the most out of your $5 latte with free wifi over 35 minutes. that experience has changed and will be changed for the next couple years we don't know right now, what we do know is all the costs associated with transforming your business for this post pandemic economy are going to be grave. there are going to be far fewer consumers that are employed during that period when you're expecting an up tick in business i think it's going to be a tremendously difficult period, just like guy said about qsr for these guys, even though they are at a price point that makes sense for a recession airy environment. i think a lot has -- the game has changed unfortunately. one analyst doing a sharp u-turn on disney could troubles in the atme supply chain mean a big beat for

beyond meat? you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. don't get mad get e*trade and start trading there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us.

but when allergies and congestion strike, take allegra-d... a non-drowsy antihistamine plus a powerful decongestant. so you can always say "yes" to putting your true colors on display. say "yes" to allegra-d.

breaking news on walgreens. >> we have shares up about 2 1/4% this is driven by a reuters story saying that one of the biggest health care and pharmaceutical distribution companies in america has approached them to possibly look into buying their wholesale pharmaceutical business. and they may be looking to pay

for the business those headlines are driving those shares higher. amerisource bergen not moving higher but that's what's driving walgreens higher in the after hours. switching gears here, may the fourth be with you it's not inspiring much magic for disney investors today the coronavirus will be incredibly harmful to disney's near and midterm financials and a slew of negative revisions are on the way as estimates catch up to the grim reality of disney's position it would not seem the force is with disney right now, karen what's so interesting, is that moffat nathanson was just out on april 26 th, saying all these things we're experiencing during the pandemic, those are accelerants that the recession is an accelerant to these trends

that were already in place >> right, but then there's the rest of their businesses which -- it was an interesting piece, you know, they talked about theme parks and obviously that's not a great place to be right now, they put in a july 1st opening for theme parks. i think even they thought it's not going to happen in any meaningful way, and then a lot about espn and, you know, what's -- how valuable is that going to be the movie business i mean, there's a lot of things that are really -- and forget also -- the cruise business. that's just a small part the hotel business as well, i think that they're in almost every area you don't want to be right now, with the exception, i guess of being an airline. it's obviously a great franchise. it's not a -- it's not a run and sell it, i think 112 was their target which was down somewhere -- i think if you are really patient they're talking

about the recovery being pushed out a year or two years. the 21 really won't have them back to where they were. maybe 22 and i don't even know if we'll get to that much volume then if you think we will by then, if you think the theme parks people will go to there's a vaccine, everybody feels good, then i think that '22 will be back to really good earnings, if you're patient, then you can buy it here around 100 i think is an okay place to buy >> cord cutting was a trend prior to the recession we're facing now if we're to believe it's an accelerant to existing trends. that will be accelerated they have a high fixed cost base, and in terms of social distancing, theme parks. i don't know the last time you were at a disney theme park, but it was mobbed. can you imagine if they have to operate where you have to stand

in line six feet apart i don't know if people would go? >> you know, if you had -- think about this, if each person on line for mr. toad's wild ride had to stand six feet apart, the end of the line would be in tampa. i'm not racing back to get on mr. toad's wild ride or hall of president's. neither am i racing back to get into the ball pit at some of these mcdonald's i'm not the only one i understand they lowered their price target from 120 to 112 you're going to have an opportunity to buy the stock in these low 90s. >> the company reports first quarter earnings after the bell tomorrow options tradesers are betting the stock could be on the drop >> this isn't a name that is typically moved very much on earnings it averaged a move of 1 1/2%

over the past eight quarters the options market is expecting more volatility out of it. right now, it's implying a move of over 7% by the end of the week, and puts out traded calls by 1.6 to 1. and the most active short data that i was looking at were the weekly, expiring this coming friday, those were trading for about $3 buyers of those puts are pessimistic going into earnings. that would be below $97 by the end of the week. >> thanks for that, mike for more options action, be sure to tune in to the full show 5:30 p.m. eastern time coming up, warren buffett says he's throwing in the towel on the entire group. what is next for the struggling sector a big bank smackdown on wells fargo that got our attention today.

♪ ♪ ♪ ♪ ♪

this virus is testing all of us. and it's testing the people on the front lines of this fight most of all. so abbott is getting new tests into their hands, delivering the critical results they need.

and until this fight is over, we...will...never...quit. because they never quit. irl stocks tumbling today. after warren buffett cashed out of his positions in delta, american, southwest and united this comes as the krirsz continues to devastate the travel industry. what's your take on this move? >> this is a tough one what is the state of the airline industry, the truth is, we don't know it's important to follow the lead of a guy like buffet who has the deepest pockets in america, and has a time horizon

longer than anyone who watches this show. i don't know how you can get in there and buy them i suspect there's going to be more bailouts, more diluted raises, all that sort of stuff, it's a no touch for me right here >> tim well, he bought early, right he bought a million shares of delta at 46 on february 27th and now has kicked those out and so -- look, we have expected warren buffett to be an investor of enormous patience and opportunism in the past, so why isn't he here? does that mean airlines are a no touch. very possibly, and i'll extend that and say, the cares act requires that a lot of these carriers keep the -- you know, every city open to at least the end of september, at an amazing cost burden, i know there's been a lot of appeals to this, and some of the smaller ones may get some relief, southwest may get some relief, ultimately united last week gave you numbers and

told you nothing is going to be held back in terms of what they have to do to cut their business down and no matter what, this is what i'll say, you're coming back with a smaller market size, no matter what happens. leaving aside cost base and what not. i think there's been an enormous mark to market, even that disney note by moffat nathanson shows it was about longer impact for a company they follow. that's really the story here too, if you believe this is a medium to longer term impact for airlines, i don't know why you have to get in there now >> care ing in the past you've seen value in the airlines, you've been in the airlines. why isn't there value in your view any more? >> i mean, for a lot of the reasons tim's talking about. you know, just the -- operating -- the structure of running an airline, right? it's so capital intensive, the fix costs are very high, and they're not going to be able to get out of that, and then at the same time, you have no clarity

whatsoever on when demand will return i believe it will return one day, i really do until then their burn is so high that i don't feel the need to jump in at all >> even for a trade guy adami, these are a no touch >> we've said that for a while, if you look, they have bounced off those lows we made they haven't bounced anywhere nearly commence rat with the broader markets. i say no, and if you want -- our show is on at 5:00 eastern time, which is before dinnertime, go back and watch that video you made us sit through about the aerosol spray on a plane that was not pleasant, and i blame you 100% and my sense is, without even watching it, they're going to be playing it on a loop at some point. i say wait and see what happens, i still think there's another leg lower in the airlines.

>> that was more of a psa from my standpoint, so people understand the value of wearing masks. a mask can contain a lot of those purple dots which are germs from flying all over the airplane coming up, shares of wells fargo taken to the wood shed this year. the pain isn't over yet. we'll have more on that call next do not miss our special coverage of markets in turmoil. that's coming up tig rht re on cnbc it's a challenging market. edward jones is well aware of that. which is why we're ready to listen. and ready to help you find opportunity. so. let's talk. edward jones. it's time for investing to feel individual.

our retirement plan with voya gives us confidence. yeah, they help us with

achievable steps along the way... ...so we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement. welcome back to fast money wells fargo dropping today analysts raising concerns with revenue and loan losses due to the coronavirus saying wells fargo may not make enough money to protect itself against those

head winds ubs dropping on 19 bucks a share. guy, sales pretty rare on wall street >> very rare on wall street. it's -- i always found it fascinating when banks downgrade other banks. it's fascinating to me. it's like the yankees saying the red sox are a miserable team it traded at 27 and change i mean, this bank has not bounced at all on what's been a remarkable tape. i understand banks have underperformed wells not getting it done. wells -- a lot of the problems at wells are very wells specific and they brought them on themselves, you add this on top of it, so i happen to agree with that downgrade >> u before s has lower loan loss

that's unusual going into a recession airy time. >> ubs is pointing out that wells hasn't done that they've always pointed out that their cost structure is totally ham strung by the fact that they haven't met a lot of their regulatory hurdles it's a money center bank with less flex ability at a time. certainly on a relative value play, why wouldn't you be short wells against owning the emergency of your relative choice >> on that note i go to karen. because you own some >> i don't own wells i own banks. one interesting thing about that note, it looked like city bank was his favorite he has a $64 target on city bank and the stocks at 45 that's the upside. it's on valuation that the price

to book is .68 which is extremely low. and he feels they're in a good position to weather the storm. my first choice is jpmorgan, because it's the highest quality. and why bargain hunt when the best of breed is a bargain >> if all you guys are sitting around me, i am sure we'd make fun of karen and her crush on jamime dimon. >> where do you stand on banks >> the xlf is the sale the primary holding is berkshire hathaw hathaway if this analyst thinks that wells fargo could go down 25, 30%, the xlf has got another 20% down side to those 2016 lows to me, i think karen said

something interesting before about the underperformance of the banks. i think they tell you the recession is going to be deeper and longer than the s&p 500 is telling you that, and there are lower lows in the bank stocks. as the country braces for a potential food shortage, should you sink your teeth into beyond meat be sure to catch the ceo of salesforce on mad money tonight. he has a new set of tools to get people back to work.

sometimes the challenges of today's world make it tough to take care of yourself, that's why you can rely on nature's bounty... 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.

the biggest week in television is almost here. starting may 11, enjoy free access to the best shows and movies from favorites like hbo, showtime, starz and, for the first time ever, hulu and peacock! catch the show someone on twitter says is "omg cray," exclamation mark. don't look at me. or the one with the character with the eccentric name. (whispers to himself) oh, so that's who offred is. hi. even the one that's inspired all those memes. there they are! everyone's got a show to recommend. get ready to watch the best for free during watchathon week.

welcome back to fast money, tyson foods getting grilled. blaming major production disruptions due to the coronavirus. tyson warning of possible food shortsages because of an unprecedented shift in demand from restaurants to the grocery store. check out shares of plant based beyond meat. they headed higher today beyond meat report rs tomorrow after the bell, so is beyond poised to be the big winner out of all this? alex ya, great to have you, thanks for joining us. >> happy to be here. >> can we make that assumption that a shortage of pork and beef and protein in general and higher prices for the consumer

is a benefit for beyond? >> i think that's right. we've seen a lot of meat processing farms closures, tyson and the other large meat companies. that is likely to feed into a supply shortage over the next few weeks. and yes, plant based options are a bit more appetizing as a result of that >> it may be a bit of a push pull, though beyond is losing a lot of restaurant business as it's gaining on the retail side can you walk us through how much is actually being offset by the grocery side of the business >> well, we saw the grocery side of the business grow by over 200% in the last four weeks. it's going to be touch and go, as you say, a push/pull situation. beyond meat has 50% of its sales in the food service side of the business a lot of restaurants and schools are closed

fortunately the quick service restaurants that are the biggest part of our food service business haven't been hit quite as badly as many other parts because of the drive through option >> if we're seeing a 25, 30% decline it's going to be interesting to see how much that over 200% growth in retail is going to help them out this is a company that's been growing at an astronomical rate for a couple years now, so investor expectations are high we're expecting a sales growth year on year all eyes are on the next quarter and what they're going to report >> your guess is that they spend guidance >> i -- most of these companies, particularly the ones that are toward the beginning of their

fiscal years are withdrawing guidance at this point i think given a complete uncertainty wouldn't be surprising >> thank you tim, where do you fall on beyond meat >>. >> i don't chase the stock, i never have i am concerned about the competitive landscape. as it relates to restaurant partners and what not, that's important. starbucks has added them in china, and the global footprint is also a big part of why analysts had gotten bullish on the name i think the competitive landscape in the medium term, which is how we seem to be looking at stocks these days is incredible there are head winds and tail winds here, and i think the head winds are going to outway the tail winds

>> they have been priced higher. would that make you more likely to buy that's part of the consumer calculous out there. >> to buy the product or buy the stock? >> early in april, i think there was a chance we would take out 126, for a while that was smart, but that was short lived you can see a short covering rally post earnings tomorrow beyond meat sets up pretty well here into earnings don't like it, the product, do uli t sck >>p next, final trade. ♪

♪ ♪ ♪

time for the final trade, let's go around the horn tim seymour. >> we talked about maga, i think they're in the right parts of data center and semiconductors it's defensive here. >> karen >> yeah, i'm always looking for things to buy, today i found only one which was alibaba, only up from its low about 8% and, you know, they're spending tons of money on cloud and it's the amazon of china. i like it a lot right here >> dan nathan? xrt, we're going to get retail earnings over the next couple weeks. i suspect the rise in the etf

incorporates any and all good news >> guy adami >> when paul and energy speaks, the market listens the refiners have had a big move vlo. >> 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. just trying to make a little money. my job is to entertain, educate and teach. call me 1-800-743-cnbc tweet me @jimcramer.