tomorrow, on "closing bell" we'll have a expert perspective, a legendary investor perspective, jeremy grantham who also recently slashed his funds exposure from something like 60% to 20% on equities so he's bearish on equity markets from here. thanks for watching today. "fast money" starts now. "fast money" starts right now. tonight's trader line-up coming up on "fast," the china threat, the shocking headline out of beijing that could pose a major risk to this rally we'll tell you what it is. plus, oracle on the move in the afterhours, reporting results, the company's conference call is just getting under way. we will bring you all the big headlines. and later, the big bucks in slimming down. the one stock tapping the tape today, the battle of the gubulg. we start with today's rally on wall street, stocks rallying with the s&p gaining nearly 2%, it all started with news of a

major breakthrough in treating the coronavirus, a steroid that could cut deaths significantly among the sickest patients jay powell assuring the market is willing and able to backstop the economy. and finally, fiscal stimulus reports the white house is preparing a trillion dollar infrastructure package for everything from roads and bridges to 5g network. so, were these the three things the market needed to hit it big today? >> the three horsemen. hi, mel. >> hi, guy >> how are you well, i mean, they definitely helped, and i'm looking forward to jerome powell's testimony tomorrow when somebody asks him what his favorite hard-hitting question, what his favorite color is that's always riveting to me it's all about the fed i think we all agree with that their commentary has been nothing short of astonishing the infrastructure -- supposed infrastructure bill, obviously, caught everybody's attention i'm hard pressed to believe that will get through this year given the divide we have, politically. the covid news is great.

absolutely great that's a plus for sure i don't think it's necessarily a vaccine. it all comes back to the fed and the fact that they have this thing backstopped and i've tried to make the point that valuations are stretched tim correctly has made the point that valuations don't matter in this environment, and i think that's where we find ourselves today. >> yeah, this morning, premarket, it was retail sales, which were much better in the month of may versus april. plus, the news about dexamethasone, karen, so it's driven by the green shoots that we're finally seeing in terms of the reopening and the boost it's providing to the economy through the numbers that we've seen so far, whether it be the jobs report or retail sales, and then also this progress in how we deal with this disease >> right so there was a lot of green shoots, as you talked about, that the treatment, that would

be, obviously, a huge one. the retail sales numbers were really good. i don't know, though, if that was just pulling forward some pent-up demand as well as stimulus checks that people had that they were able to spend, which may or may not recur in the short-term i don't know so, i'm a little bit skeptical of that. there was also some negative stuff. industrial production, right and then i feel like the market has been up a lot of times on the notion that the fed is there. we've sort of known that the fed is there so it's sort of -- i can't quite get my head around why we trade up every time on the same news that the fed is there. so, i mean, i don't know what to do, like, in a market like today. i think the infrastructure is kind of new, and so, it makes sense to me that those stocks would react particularly strongly to that news. but overall, i mean, given the rally yesterday and this today, i don't really -- i don't understand it's like the whole market now

is one giant day trader -- i don't know i don't get it, to be honest >> the fed is there notion is interesting considering for certain programs it hasn't really spent all too much money at all for individual corporate bonds, it hasn't spent a dime yet for corporate bond etfs, it's spent a pittance, basically pocket change in the sofa of the federal reserve front lobby, steve. >> i think they started today, though >> they might start today on the individual bonds >> i think -- yes. >> okay. grasso >> i think that, yes, the perception that they are there, to your point, and to karen's point, they are actually buying now, so they will be there they will backstop it but if you look at the marketplace, what's the number one thing coronavirus. so, to me, it's 70% therapy or vaccine, maybe 30% fed, and i think to karen's point with the

day trader, as long as things are getting better on the virus front, this market can move forward. people will spend money. but you need the virus front to subside. we've seen states open up. we haven't seen the taxing on hospitals that we saw in the beginning. if we don't see the taxing on hospitals, the market will continue to recover. the fed is there they're not going anywhere no one will fail it's not too big to fail it's no one will fail. so, between those two things getting more positive, that's why the market can continue to grind higher, in my opinion. >> it is amazing, though, the mileage that we got out of dexamethasone and i don't want to pour water on this because this is very hopeful, especially for the sickest patients, but basically, tim, if you take a look at what it's going to take to open or reopen the economy, i don't know if dexamethasone is it i mean, i don't know if knowing that you have a one out of eight chance if you're on a ventilator of being saved by taking this

steroid, if that's going to get you to go out to a baseball game or a concert >> no, but i think you have to understand that reopening the economy, there's a lot of people out there that don't believe this is a problem for them there's a lot of people that actually think that they are looking at the numbers, they're looking at percentages of flu deaths and they're saying, you know, and i'm not here to qualify what's dangerous or not. i'm just telling you that i think that reopening the economy, we've seen this on polls, we've seen this in terms of people flooding into casinos, the lack of social distancing, people that are saying they're going to get on a flight earlier, so that, to me, is the concept of the economy i think everyone is rightly brought up the fact that retail sales may be just better because stimulus checks and there's a lot of liquidity flooding around so fundamentals versus liquidity. remember what $500 billion of fed balance sheet did in the fall from october 3rd to the end of the year and even up until we ran into coronavirus, it led to a massive move in the market where fundamentals were very stretched, in my view.

so i don't think there's any question that this is about fundamentals excuse me, about liquidity and that fundamentals -- people are very comfortable saying, i'll wait until 2022. thank you very much. >> i think we lost tim's audio we'll work on that >> also pretty interesting >> guy, i'll go to you since tim is frozen out of the conversation for now >> yeah, i caught most of it he's right it's not about fundamentals. he's been right all along. and you know what i'll say is, in terms of the coronavirus, i mean, we haven't talked about it yet, but beijing are closing down all their schools that doesn't seem particularly bullish to me. the situation between china and india doesn't seem particularly bullish to me. at a certain point, with -- they're both our allies, the administration's going to have to say something, i would think. that's not particularly encouraging. retail sales, yeah, that was a big number, but look at it year over year. it's a funny thing about numbers. year over year, you're down

6.1%, so i get everything, and i understand that people want to be optimistic, but when you look at the headwinds out there, they're still significant. i still think it's all about, you know, steve said 70/30 coronavirus to the fed i can understand that. personally, i would flip that around >> steve >> yeah, so, the -- well, two things without a therapy or without a vaccine, it didn't matter what the fed did in the past. the market sold off. that's number one. number two, if china is quarantining or pulling back 108 million people, that's a good thing. what was the major blowback originally when wuhan was the up roar it was that they didn't act quick enough or they were allowed to travel out of china so, i don't think you're going to see that again. this is not part two this is what we have learned from a couple of months ago. >> that's really glass half full, steve. i mean, to take a look at

beijing and think that, because the impact on the economy is the impact on the economy, whether or not you think it's great that they're being cautious or whatever else the reason is. i mean, if you're going to close down a city, the impact is the impact bottom line. >> yeah, the impact is the impact, but as tim was just saying, we're not floating on fundamentals we're floating on a couple of months ago, we thought the end of the world was coming. now, people are just happy that we're starting to restart again, so i think we have to forget fundamentals and be lucky we're where we are right now >> all right let's talk more about today's rally. our next guest says thanks to the fed, he is officially out of the bear camp. let's bring in jim bianco, president of bianco research what specifically about what the fed has said and/or done that makes you think, you know what, it's time to climb aboard the train? >> well, they've gone beyond just supplying liquidity

that was the early part of the equation but lately, they've now started in on market support but they started buying corporate bonds today. they announced it yesterday. they didn't need to do it. they did it to just show that they were serious about their intent, but the fact of the matter is, they have put a massive floor on this market, and you know who's noticed retail they have noticed it as well too. first you cut commissions to zero then you allow the purchase of less than one share. you get millions of accounts opened up, an explosion of trading in the market, and when you talk to them or read the reddit boards, the word "fed" always comes up that they're not going to allow -- they are not going to allow the market to go down it won't go down then you get jay powell last week at his press conference, when he's asked if the market's overvalued, he didn't really answer the question, but the implication was, it doesn't matter we're going to continue to do what we're doing right now, and it's becoming a force in the market that it's going to go

higher it's not going to be this way forever but it is this way for right now and if you think the market's going to sell off soon, you have to find something that says it's going to be so powerful to bring the market down that even the fed's unlimited printing and the davie day trader crowd buying like mad is not going to be able to stop it it's still going to fall that's a high hurdle to put on it >> right now you're saying put aside the fundamentals, you have to ride the liquidity train? >> if you want to go with the fundamentals, i think it was mentionedd mentioned earlier, they're all overvalued they're stretched, as guy said, to be, you know, simple about it, but there's nothing about this market that says it's cheap, other than we make up new statistics, the two-year forward or the three-year forward implied earnings ratio, which never existed until 60 days ago but those are kind of made-up numbers but the traditional numbers say this is a very fully if not overvalued market

it is about momentum, and it is about the fed supporting the market right now >> are you saying, jim, that the retail investors had enough power in this market to help this rally go higher, that it's a big enough force in terms of dollar amount, that it's actually impacting the move? >> yes, i do think that that's the case, and i'm going to push back on what tim said last night after you talked to portnoy and that they do there's no statistics that we could trot out we can only go with anecdotes but the one closest statistics we can have is in the options market they break down trades by the size of the trade. small trades of less than ten contracts or more have exploded in orders of magnitude in the options market many times before, higher than the previous peaks so much so that they're powering the entire options volumes, overall volumes higher as well too. the number of trades of one contract in the options market is approaching 15% to 20% of all

trades from practically nothing a year or two ago so, you could see it in the options market unfortunately, we don't have the similar statistics for the stock market, but we do know that they're there, and prices set at the margin and they are the marginal buyer that is new to the market in the last several months >> so, you're on this trade, you're, you know, riding this rally, jim at what point do fundamentals enter the equation or do you think the fed's printing press is strong enough to actually get us a bridge to the other side, so to speak, of this pandemic, in terms of businesses recovering and actually being able to give guidance and fundamental things that investors typically like to have in order to value stocks, and do you care about whether or not the fed is able to exit the trade, so to speak >> no, i care about all that and i do think there will be a reckoning somewhere down the line if my premise is right and this has gone beyond liquidity to

price support, pushing the market higher, there will be a problem somewhere down the road. but not now. and the market's going higher. yeah, at some point, when we are done reopening, i-n-g, and we've reopened, e-d, and we assess where we're at and that's it, we're done reopening, maybe there's a disappointment that sets in then at that point and that we realize we're going to come up short but we're not there now. we're not going to be there next week we still got the hope that things will be better next week, things will be better in two weeks because we're going to continue to reopen more restaurants will be coming online more people will be able to do bigger gatherings as well, and the hope that things will continue to get better when we get to the point where we say, you know what, this is it, we're done, we're reopened, this is the economy we have, maybe at that point we come up short. i actually think we might. at that point, we might run into trouble. but like i said, that's a story for another day. for right now, this liquidity is

what's really powering the market up. >> jim, always great to speak with you thank you. jim bianco, bianco research, and yes, again, dave portnoy makes it into the a block here let's talk about buying stocks on hope, karen does that work for you it's sort of like buy the rumor, sell the news is what jim is saying buy the rumor of reopening being promising and sell the news of the actual reopened economy not doing as well, maybe, as we all hoped. >> right and i guess, yeah, if we come up with a vaccine, then just sell everything right away. i don't get -- i mean, i understand what he's saying, that the fed is there, and i understand that that is putting a floor under the market, but i do think that -- i mean, look, you know, i don't know if we get to what happened at the cruise lines just a few -- a little while ago, you know, sort of a setback. so, i'm kind of afraid of that because i think things are so overvalued and are already

pricing in such a v-shaped recovery so, i definitely am not on hope and i'm definitely not trading bankrupt companies on hope i think that's just crazy. >> yeah. tim? >> well, i think i've said liquidity is what it's all about, so i'm not going to repeat that other than to say, there's different parts of the market that have responded more than others as a function of the retail investor. i don't think there's any disputing that but i also think that you have a cross-asset kind of cyclical thing going on, so you have had this recovery and resource stocks you've had this recovery in banks. you've had this recovery in industrials, and transports, that were two years into bear markets. so, that's part of what's extraordinary here, and that's -- i think that's, you know, that's the institutional community. it doesn't really matter, ultimately, and trying to determine -- i don't think we have statistics that are going to tell you what percentage of this came from robin hood and what percentage of it came from, you know, well, we have those but they're not out there right

now. the more important dynamic here is momentum, is that fundamentals don't matter, is that this is the same thing we've been doing since 2009. we've had people come on our show and complain about fundamentals, saying they want to short it, the feds lit it al on fire when in fact, all that's happened over the last ten years is the market has responded to liquidity and it will continue to do that, so i agree with jim bianco and there's no disputing that >> all right, coming up, apple charging higher as the street crowns a new top bull. we will break down that big call but first, we're all over the after hours action and oracle just reported results the call is now under way. we'll bring you the trade. ♪ ♪ ♪

welcome back to "fast money. we've gotten on earnings alert on oracle, smahares are moving lower. the call is under way. let's get to josh lipton in san francisco with all the details hey, josh. >> reporter: so, melissa, oracle reporting q4 results just want to dig into the segments here. cloud services and license support, that's their biggest segment, $6.85 billion, that was lighter than expected. that includes cloud revenue but also maintenance fees for traditional software cloud license and on premise license, about $2 billion in the quarter, also missed expectations that's license revenue for software that can be deployed in the company's own hardware or on hosted datacenters quote here that's interesting from oracle's cfo, she says our overall business did remarkably well considering the pandemic, she says, but our results would have been even better except for customers, she says, in the hardest-hit industries that we serve such as hospitality, retail, and transportation, postponing some of their

purchases. checked in quickly too with kirk over at evercor. he says, listen, obviously, revenue came in below expectations he did notice there was strength in cloud erp, so that would include financial management and supply chain software is what he's talking about there he wants to know what the company can do in terms of operating income growth and free cash flow growth in fiscal '21, noting the free cash flow growth was negative in fiscal '20 he has a neutral rating on the stock. i asked kirk why he remains on the sideline, he said the bottom line is, can oracle show more sustained revenue growth going forward, heading into this report, the stock had a nice bounce, up about 30% in the past three months so it was underperforming that broader tech sector. melissa, back to you >> josh, thanks. we got to wonder if decline in license revenues and specifically cloud indicates that it's losing market share to microsoft and amazon, guy. >> yes and we talked about it last night, and if you look at the -- if you just want to go

technical, look at the chart since july 2019. i think it was the $60 stock they have a series of lower highs, lower lows, that's not encouraging. you have no revenue growth, basically, over the last few years. it trades at a trump valuation because there's really no growth i'm not knocking oracle. i think they're making the move. they're trying to make the transition to cloud, but they're getting beat at it, and that's not particularly encouraging and i think you could call it a zero sum and i think you can point to microsoft like we did last night and to a certain extent amazon as well as the winners and oracle, not necessarily a loser but they're definitely the -- an afterrunner as they used to say. >> steve >> yeah, so, when you talk about cloud and licensing, it's 80% of their revenue, so these guys were on premises, switching to the cloud. they're just late. they're lagging. they remind me of ibm. ibm had to turn around the ship

and really had a different path and i don't believe they're capable of competing with amazon, up 42% year to date, or microsoft, up 24% year to date, against oracle, up 3% year to date even with that 30% recent rally, so i would stay other places besides here. >> all right coming up, just as the u.s. expands its reopening program, a major setback in beijing could another lockdown in china hit stocks at home plus, we're counting down to earnings from kroger, why options traders are betting this 'lbeacinwoo p.is ready tpo wel bk t r sleep? try nature's bounty sleep3, a unique tri-layer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management.

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of the coronavirus the fresh outbreak exceeding 100 new cases and forcing authorities to close schools again and reinstate a city-wide lockdown the news could have major impact on u.s. companies with big exposure to china. dom chu is over at the wall with the key names to watch >> melissa, it's this world's second biggest economy so they do a lot of business with american companies and so we combed through annual reports and took a look at last year, which companies had what kind of exposure to those sales numbers in china these numbers do include sometimes china specifically or the greater china region, which could include hong kong, macao, t taiwan and areas around them as well tiffany and company, we know they're in the middle of a possible agreement to be merged with lvmh. they get 36% of their total revenue from china apple in the greater china region, again, gets about 17% of their total revenues we know nike has a very large market in china. roughly 16% of their business comes from china and that

greater china region there many semiconductor stocks make the list but micron is one of those headliners and then boeing, aerospace giant, we know that them and airbus do a lot of business there. boeing gets about 7.5% of their business there as well this is obviously an incomplete list but it gives you an idea, melissa, of the types of big-name companies in the united states that have a good amount of exposure to china we'll keep an eye on them just like we did during the trade war and trade negotiations over the last several years back over to you >> yep, it's all the same basket of stocks. dom, thank you so much we bring this up because we're trading here in the united states as if it's all over, right? but when you see lockdowns again in china and you got to wonder, is that going to impact the s&p 500 companies here that were so dependent on growth in china we've seen this story again and again, tim dom mentioned the trade war, the initial wave of the coronavirus, and then possibly here yet again. >> yeah, but i think when you -- i'll talk about nike, which was

one of the companies we got some of the first data points on china reopening. we were more, you know, glass half full, i know that term's been used already tonight so let's stay with it in terms of nike bringing back and getting back to its 70% of sales in china pretty quickly i think, you know, nike bulls will ultimately shrug their shoulders on downgrades that have been put into the stock and to be clear, global sales for nike are critical, although the u.s. market's been the core of understanding where that company can rerate, but i think it's the digital sales mix that gives people a lot of confidence in the stock and they're getting closer to 50/50 on dtc and i think that's going to support nike i'm long the stock, full disclosure, but i would not be running on some weaker data points that i think are ones that we're looking past anyway >> weaker data points being the lockdowns out of beijing so we're trading on hope for china exposure as well this is happening around the world, karen

can you wrap your head around that >> yeah. i mean, i accept that it's happening. i just feel like, you know, how much do you pay for hope i feel like we're paying a pretty full pricefor hope already. the alternative, though, which is why the fed is doing it, where else do you go so they said they'll be at zero for -- they're not even thinking about thinking about it, so given that we don't have an alternative, this is the outcome that they want >> yeah. and guy, of course, we have mcdonald's trading higher today on stronger than expected u.s. same store sales mcdonald's, of course, has a huge exposure to china so does starbucks. so does yum. >> yeah. well, as does starbucks. it's interesting you mentioned starbucks because i just had it up starbucks, you really got to close above $80 to take the next leg higher and i hear what you're saying about mcdonald's but i want to point one thing out. sometimes an individual stock sort of can tell a story and you were away at this time but i remember it was march 18th and

wynn resorts traded down to $35, closed at $43 and we were talking to brian that night and we said, if you're looking for a glimmer of hope, or green shoots, which is a term i hate, take a look at wynn resorts. if you look, that's been outpacing the market ever since until recently, when that stock topped out at $108 look at it now i think it's trading below $90 so i think wynn sort of showed us the way in mid-march. maybe wynn is showing us the way now in mid-june. it's something i think the market should focus on because it's a name we talk about a lot. >> do you hate green shoots because, like, you hate happy humpday and gobble gobble? or do you hate it like the concept of green shoots, you know, rays of sunshine, hope >> it's the term that, you know, climbing a wall of worry, green shoots, happy hump day, how was your turkey day? gobble, gobble new normal yeah i can go on. i mean, i could do an entire

one-hour show by myself on things that infuriate me >> you could do that at 6:00 p.m >> don't >> in the meantime, shares of norwegian cruise lines accelerating its losses in the afterhour session. the company canceling sailing through at least the end of september. some voyages in new england and canada canceled through october. shares of other cruise lines falling in simple. steve grasso, you know, we had the green shoot of dexamethasone and all these stocks were higher on the session, and then we have this which just sort of, you know, squashes those green shoots >> this is going to be a tough one. even though i think people will get on domestic flights, they will literally get on and hold their nose, you know, with a mask on their nose, they'll get on, they'll fly, two, three, four hours, and then they'll be outside some place in a state where things will be a lot better and maybe they could breathe. but i think it's tough to look at the cruise line and think

you've recovered very tough i've been on cruises i know you have as well. i think they will recover one day. but i think to -- you know, they're all blanketed. they're all down 55% to 65%. so, it's sort of, you got to wait until you get some traction this is one where you almost have to wait for a real credible therapy, a real credible vaccine, then they're all going to rip so i think you could be nibbling and buying some now, but that return on investment might take a number of months, not a number of days. >> all right, coming up, two big calls in the tech space sending a pair of high flyers moving in opposite directions. today we'll break down the trades and later, why working from home y ve genmahaiv a big boost from the slimdown stock. we've got the details when "fast money" returns rilliant. the lexus nx experience the crossover in its most visionary form. experience amazing at your lexus dealer.

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apple closing on records today with citi betting even more gains are ahead the firm increasing its price target to $400 a share citi analyst explained his call on cnbc earlier today. >> we think the number one reason to own apple right now is simply the second half of this year is going to be very exciting a lot of innovation. in fact, many people were concerned that coronavirus would slow down their innovation, and they wouldn't have a 5g product line-up. we have absolutely confidence that they will have 5g line-ups in time for christmas and it will be big and a lot of people will want those. >> shares also rallying after apple announced plans to reopen more than 70 u.s. locations this week, so are you on board with this call on apple, tim? >> yeah, i am. but i don't love apple's

valuation. i think it's interesting we're able to talk about innovation at apple again or the lack thereof hasn't been an issue for the valuation, let's be clear, we know it's been about services. we know it's been about the concept of 5g, but you know, i'm not sure how much innovation is ultimately really there. this has been about a company who's got this huge capital markets machine to buy back stock, to pay a decent dividend, to have a balance sheet that's pristine in a difficult environment and somehow to navigate very complicated political waters in china. so, i just -- i don't love the valuation at apple here but i look at the rest of the market i don't love the valuation of microsoft. 23 times forward has a 26 times, 27 times services multiple and a 16 times hardware multiple that 3 or 4 years ago would have been really tough to stomach. >> it's also interesting that it doesn't seem like there's any concern about this other story on apple today, which is the eu launching two formal probes into anti-competitive practices concerning apple pay and its app

store, karen i don't know how you feel about the valuation, but some might say that it is priced for absolutely nothing to go wrong, and if they are found guilty in this investigation, that's 10% of annual revenues that's the fine. >> i think the market chose to completely ignore that these things take a lot of time to play out so i don't know, it seems like the market's pretty short-term focused and that's a longer-term issue. but in terms of valuation, i read the piece one of the -- i think he wanted to sort of stake his claim as the high target on the street, so he's done that. i don't know if others will feel like, all right, they've got to one-up him and do something north of where he is one of the things he cited, though, was that expectations are low. not -- the stock doesn't -- it's not trading like expect takes are low. i am long, though, so i am optimistic about 5g. but the other thing he talked about was getting to a 25 multiple, so some of the gain is from a multiple expansion,

which, you know, tim was getting to that point. it's pricey. again, i come to the, you know, i don't have another alternative. if i were to sell it, if i want to be long something else, i don't have a better alternative right now. >> all right, let's turn from a bull call in tech to a bearish one. nvidia dropping after morgan stanley downgraded the stock, saying nvidia is a core holding but its current multiple could be a concern grasso, what are you seeing? >> nvidia's up 53% year to date. it controls 70% of the gaming market i haven't even spoken about a.i., we didn't even speak about robots, we didn't even speak about driverless cars on the internet of things this is a stock that you must own in your portfolio. you will -- there will be volatile times but if you look at the chart, straight up. smoother than amd. they always compare it to amd. amd is up 18% year to date against 53% for nvidia i'd rather stay with nvidia. it's not overbought on a

relative strength index. i think you still have some time here and it controls the gaming market and it will control multiple other markets going forward. >> you know, grasso hasn't would you rathered himself this whole entire show. i will invoke the would you rather, as i should, rightfully, as the host of this program. guy adami, nvidia or amd would you rather >> i'm glad you're invoking. invoking is always a good thing. i would rather amd i think you get -- i think you have a little more beta at this point in amd i understand what morgan stanley is doing they're taking the money off the table. i think they actually raised their price target to $380 might be mistaken. it's effectively where the stock is that last earnings report got the stock below $50, i think that's your buying opportunity so in the game of melissa lee

directed would you rather, amd over nvidia. >> you don't need to intro it as that because it is that. or at least it should be >> maybe not so much anymore >> all right, we've got a market flash. you know that freeze button, how do you think that freeze button works? under the desk exactly. zap. all right. back to business here. we've got a market flash on southwest. phil lebeau has the story. >> take a look at shares of southwest airlines, the company out with an announcement that it is going to be extending its guarantee of the middle seat remaining empty on all of its flights at least through september 30th that's not a surprise. that has been a popular policy with people as they have been booking flights. they're also announcing a fare sale to select destinations and like so many other airlines, reiterating its policy when it comes to face masks. wear them if you're going to get on board melissa, we'll talk more about this tonight on the 7:00 show. this is a policy that should not be giving passengers any trouble.

they know about it going in advance, and yet, a lot of them seem to not want to wear those masks. what are the consequences? we'll talk about it tonight at 7:00 >> all right phil, thanks phil lebeau. i'll go to you, steve, since i froze you. i feel kind of bad about that, using my power to freeze you >> thank you >> but in terms of southwest, does this change the calculus? because they're doing this for a reason because maybe consumers aren't willing to fly if there is somebody in the middle seat so there's sort of a tradeoff. you're trading off the middle seat occupancy for a consumer who will fill the seats around that middle seat >> yeah, i think it's a good policy and i just don't understand the person that doesn't want to wear a mask it's a very selfish trait. you're wearing that mask for both your protection and their protection, so when you look at southwest, going into corona and covid, southwest and delta had investment grade balance sheets. they were the only two out of the airlines that had investment grade balance sheets you can catch beta, i'm long

spirit, that's where i look for beta, both up and down, to buy it and sell it, but these are names, southwest and delta are names -- are premium names in the space that are core holdings in many people's portfolios. >> tim >> yeah, i mean, we've heard from southwest, and we've heard some of their outlook just on their buying planes from boeing, and some assessment of where their schedule is going to kick up in july, so the good news is there, i agree on the balance sheet. when we went into this, it was always about measuring how many days, who could withstand, who could avoid dilutive equity issuance, a partnership with the government that nobody wants, so those are the two names in the airline space that make the most sense. >> all right coming up, a building boom infrastructure stocks jumping today on reports of a new spending bill out of the white house. our traders will break down the names they like, plus options traders are eyeing kroger for a big breakout we'll tell you why

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welcome back to "fast money. infrastructure stocks rallying today on reports that the trump administration is considering a new trillion dollar infrastructure plan. karen, there's some names in here that you have owned on and off throughout the years which ones do you like now >> well, for me, united rentals is really -- i mean, i liked it before this, and then this was always sort of, okay, this would be icing on the cake if we could actually get an infrastructure deal, and i actually think it is possible i do think there's some bipartisan support for it, so we need more stimulus so, i like it. i think it was in good shape going into this, and doing that -- the balance sheet's in very good shape. they were doing well they had done an integration of

an acquisition and also they were handling their expenses well, and so i think if we start to get some revenue growth, that would be a very good thing, and we'd see some nice margin expansion, so i like it. holding on to it >> the interesting thing about this infrastructure proposal is that it's not just roads and bridges so you think of names like vulcan materials and united rentals, caterpillar, all that, but also 5g. that's an interesting addition to this. >> you could look at some of the cell tower companies and whatnot. i actually think you look at some of the diversified miners and i would look at a bhp or rio and talk about "back to the future" stocks, these are companies that i think are very well exposed to what i think is going to be infrastructure spend around the world, and also, you know, the weaker dollar is very, very good for commodity prices and i think we're going to continue to see pressure down on the dollar we almost broke through 96 a couple days ago. u.s. steel, who doesn't have a good balance sheet, that's a terrible balance sheet, and it's

a leverage story, but in a world where the fed is there to protect almost everybody, i think that's one of the reasons why something like u.s. steel is also breaking out. look at that chart, a name i've traded it well, i've traded it poorly, but i think this is an opportunity to see more momentum there. >> guy >> well, i mean, i'm wearing the debbie downer hat, clearly, but in this environment, i have more chance of playing shortstop for the yankees than an infrastructure bill getting passed even, i think, some hawkish -- some of the fiscal hawk republicans wouldn't go through with it, so i just don't see it happening. i mean, i understand why these stocks bounced on it, but a name like caterpillar, which has been grim death for the last couple years, every rally in that stock has been a selling opportunity my sense is it's the same thing now. >> grasso, what's your take? >> when i look at that, i'll keep it back to the uri. uri is down 4% year to date.

it's not overbought in the latest rally i like that name i've been in and out of it over the years. caterpillar is down 12% year to date that one is not overbought either these are the names that you think about as far as infrastructure plays, but a name that never comes up, it's a smaller market cap, tex, that one's down 34% year to date. i think that one, if you start to see any traction behind this infrastructure deal, and i agree with guy, i don't think it's going to get done, but i think the more you hear the headlines, it could be a name that could pop aggressively to the upside, tex. coming up -- >> hey, mel? >> tim >> can you just tell guy that yankees stadium got downgraded by moody's stay. >> didn't citi field get downgraded before? >> that's not important. today was yankee stadium's day >> okay. all right. okay we're going to break here. check out today's big surge in weight watchers we'll tell you what's got investors piling into the name

jim cramer sits down with the ceos of mcdonald's and canopy growth on "mad money. in the meantime, more "fast money" right after this. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now, you're binge learning. for a limited time, get up to $800 when you open and fund an account. call 866-300-9417 or visit tdameritrade.com/learn. ♪ can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

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welcome back to "fast money. we'll get another read on the american consumer when kroger reports earnings later this week the grocery chain is up 35% this year and options traders are betting the stock could move higher on results. mike khouw has the action. >> so, melissa, kroger traded well above average volume today, more than two times daily average options volume, in fact and right now the options market is implying a move of more than 8.7% after they report earnings later this week, that's substantially higher than the 5.8% that they have historically averaged in the june 33 1/2 calls, the buyers were paying just under 90 cents so they were making a bet that costs a little less than 3% of the current stock price that it would rise at least 5.8% and some of that may be fueled by some bullish comments that came out of jeffries analyst that was expecting eps to beat the consensus by 50% if they achieve those kind of

results, a move to the upside of that magnitude is possible >> there's this whole element of the stay-at-home trade, you know, people are cooking, they're not eating out, blah, blah, blah supermarkets should benefit. is this one that you stick with, though >> yeah, i do. the best thing that's come out of cincinnati since johnny bench is kroger. a valuation is reasonable. i'm with mike here and i happen to have some chicken mayrinating right now, that post-show, i'm going to throw on the old grill. soi like my grill and i like kroger so there you go. >> the more you know >> by the way, we said kroger is up 35% this year it's up 13% this year. not too bad, still mike khouw with the "options action." tune into the full show friday weight watchers topping the tape w we will reveal what's got the stock ripping higher when "fast money" returns

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welcome back to "fast money. big interview tomorrow, mary barra will be on "squawk box." shares of ww meantime topping the tape today the parent company, weight watchers, reporting a big jump in digital subscription growth during the coronavirus lockdown. karen, you got some thoughts this is a huge pop here, 19% >> right i think mindy grossman was presenting it. i feel really dumb, having seen match yub b match-up big numbers, people want a digital place to socialize, and this sort of gives them that as well as, you know, they talk about a wellness ecosystem but i think as you and i talked about before, i think this lockdown has sort of

created a whole bunch of potential new customers who are looking to lose weight so i think some of their digital offering is more flexible than prior plans so i think they're doing a good job and i missed it again. having missed this one when oprah signed on was one of my bigger misses ever and i'm still kind of bitter over it, but i wish them well i think mindy grossman is a great ceo. >> i think it's interesting because the stay-at-home trades are peloton -- people are riding the peloton all day, losing weight with weight watchers or eating comfort food and binge watching on netflix. i don't know what to make of this, steve grasso >> i like a little insight into you that your comfort food is v velvetta that's impressive. when you look at something like weight watchers, there's so much competition, and i think it stands -- a pop like this that you see in the stock can mean that it was just poor positioning going into this headline i think that people are craving

some digital appetite for exercise and doing something to karen's point in group sessions that they can't otherwise get in their normal life right now. i'd be a seller on the pop, though i think there's a lot better competition out there now, and they're a dime a dozen, to be quite frank. they're all over the map they're all over youtube you don't have to pay for it anymore. so, i'd be a seller in this rally. >> guy >> we've -- first of all, are the -- now i'm going to get at'd by velveeta, but are the ingredients in velveeta found in nature >> i bought velveeta for the first time three months ago. the shelf life is forever. literally. it's forever you read the expiration date, it's years from now and you stick it on the shelf, no refrigeration, nothing >> so is the shelf life for cockroaches. >> anyway, back to the trade,

guy. >> nice laugh track. >> you don't find that at all problematic? i'm going to sell -- would you rather i would much rather peloton here, i think at an all-time high than weight watchers. i dig weight watchers. it's an extraordinarily strong stock. >> let's go "around the horn" for a final trade. >> we talked a little bit about the infrastructure trade i do think bhp is a diversified global miner >> all right, we lost tim's audio. bhp is his trade karen. >> yeah, target. it's off the highs it's got growth. we like to talk about with kroger if there's a hiccup, it will be fine in an up market, it will be okay lot of ways to win here. >> steve >> tiffany's, that original takeout number was $120, it's spiked up there in october 2019. trade it around there.

below it, you buy it, above it, you sell it. trade it >> guy >> i think tim should switch to 6g and i like my kroger. >> thanks for watching "fast." see you lack at 5:00 "mad money" with jim cramer starts right now. jim cramer starts right now 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 crcramerica other people want to headache -- make friends, want to make you money. call me or tweet me @jim