tv Fast Money CNBC August 9, 2021 5:00pm-6:00pm EDT
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live from the nasdaq markets overlooking new york city time square, i'm melissa lee. co-founder of market rebellion.com. we're all over the action shares of amc the reddit favorite stock kicking off the latest earnings call recent losses today but one notable name sat out the rally what it says about the sector. later, a kiss for crypto rocker gene simmons has been setting on the biggest on doge
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coin tell us why he's so positive on the crypto space gold at the lows of the session. april of last year silver is now down 8% in past week copper and lumber, you know, also down. does smod commodity sell off give you pause for concern transitory as the fed says what are your thoughts >> i think it tells you that think think or crude who firmed up the dollar, who firmed up the ten-year u.s. treasury yields. they think the fed will start to taper soon if you go back to 2013 in the december meeting, the fed started to taper bond purchases in 85 billion a month to 75 trillion and they started tarping $10 billion. if you look at the risk assets that we talked about, that would signal maybe we get it as soon as jackson hold at the end of this month or the next meeting
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in september that the fed might really start speaking to it. obviously, i have no idea but when you look add crude oil, i'll tell you what happened from december to 2013 to december 2014 when that taper was in full effect crude oil got caught in half crude oil is working the up trend that has been in place since the lows a year ago. it seems a bit in tough spot especially right now when the world is kind of grappling with this delta variant and maybe we're seeing less demand for kr crude. >> that's what i think it is i think it's delta variant when you have commodities and a bit of a pull back on demand, commodities are commodities. a little less demand means prices can move especially as commodity increases are gearing up making more that's what it seems to me i'm not sure how to fit together the very strong jobs number. that's not covered for the fed, at all yet, this commodity action that
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is -- and the delta variant and the number of cases and hospitalizations is some cover for the fed. i don't know what they do. >> a couple three months ago was that perhaps the markets were starting to price in a taper and here we are. would you agree with that here in terms of the reason behind the commodity drop >> i'm not ready to call an end to oil oil staying at 69 a barrel on brent is great news for energy companies. let's be clear the dollar is up almost 4% from mid-may and during that time crude is up almost 7%. if i think it's traded fine. i realize it's brought up important points on the shark. it's a demapds story
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i'm not concerned about the price of oil more importantly, to the energy trade, look, i like the way a lot of the energy companies are trading. i like how we heard from second quarter earnings from a handful of them that show a lot of capital discipline and couples that are run differently i don't think this is fed melt i think it is case of a huge run in energy. a will the of uncertainty people have around the oil price. i think it will be stronger than anybody. >> how are you trading this? >> i think it's really interesting. i agree with what tim was just saying i think if you go back to november of last year, obviously, right when we're talking about the elections, that's when we had all kind of different areas in the market that started take off. you had the financials and energy and awe ll kinds of different things dan could be right i'm not a great chart guy.
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it makes sense to have clauses it makes sense to have pull backs. it's absolutely ripped if you go back to november to where it is right now. i think this is just a healthy pull back right now. on top of that, i bought some exxon calls today. i increased my exposure in the energy space when i know it comes to a lot of the other names whether it's exxon or going through the various names from the xop, that's where i find myself really in the options and getting mostly some incredible gains when it starts to move to the upside i'm hoping exxon is the next one. >> do you buy into this dip that started in term of the oil patch in july.
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>> these guy just mentioned exxon and chevron. they are down like you all just said, considerably i think pete kind of nailed it once we got the vaccine news in december, they started to out perform those. a lot of these gdp sensitive sorts of groups. i say the jury is still out. the equities haven't acted well for months it seems to be a bit worries about that the only thing that doesn't seem to care about the delta variant
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is the s&p 500 and the nasdaq. >> s&ps on friday. just on friday how do you rethink where you're positioned >> it could be industrial rebound delayed. i don't think it will be denied. so far the delta or the second derivative is also been positive but maybe that's peaking just now. we'll see. fedex which i'm long a lot, not trading well at all. doesn't change my view >> tim, the other side to this commodity crush is the stronger dollar that we saw four week highs or something like that against the euro how do you sort of think about the dollar, the strength in the dollar and maybe impact on earnings >> well, look, for now i think the dollar is something that is also giving people some sense of
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relief about the inflationary pressures. it's taken some of the pressure off the fed. with commodity prices you have to be aware. commodities priced in dollars for folks following that logic the story is one that's always been tried and true. i think you have case where the dollar is goingthrough a recess it was a crowded trade to the short time for a long time there's some sense that the fed is ahead of the ecb. i think there's structural dynamics that say the euro is a current account surplus country. it could go a little bit stronger i think the dollars range. i think the call in commodities should not be dollar dependent i think the call on multinationals should not be dollar dependent i think you have case where especially with a lot of these industrial companies, they never been run better. they've never opinion run with more capital discipline and desire to bring more free cash
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flow back to investors >> let's get more on the drop of oil prices paul, you're with us you gave us a gold paris trade by xop we want to get your take on this commodity crush. what is going on specifically in o oil? >> these are better companies with better management and better strategies. i thought friday was a big day in we had a big lead in the treasuries and you saw the lsx oil field service name and the oils ripping i'm a bit disappointed about today. i think again comments you've ahead listening to you guys coming in about the dollar may be a big part of the problem maybe the jobs number that looks great for oil but the economy is strong it's too many jobs and not
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enough people to fill them that's going to be bullish demand on the covid stuff, it's been disappointing. we still don't have international jet travel it's high consumption in demand. the nature of the travel is very d domestic >> i believe it's 8.3 from 8.6% from the full year and really dropped it for the first
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quarter. you think things normalize more. is there a rough patch ahead for oil and oil equities >> it's so tough anything in china. china sneezes and oil is in bed with pneumonia that's been so tough we don't know. it's so difficult to know what's happening with chinese demand and everything else and whether covid is really as bad as you might read it's definitely a concern. i think the dollar, the oil has been very strong in lieght of te dollar holding here. it's opiniobeen quite positive. you're going to see an inflation in the environment as demand comes back you're going to have to see higher rates you're going to see higher inflation and a weaker dollar. on friday we got some of that but not the weaker dollar. i think that's been the problem.
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i think we'll get through this covid stuff. as you can tell i'm very hesitant about china i don't want to second guess what could go wrong. it could be negative >> paul, when you go back in history and look at oil prices, how have they done in periods of stagflation? that's a term we keep hearing more and more. kind of help explain this odd situation we're in and how we might have fits and starts any data about stagflation that was really triggered in lot of ways by oil never mind driving huge station wagons that was originally the problem.
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it's a bit of a concern. woer so inefficient in our use of oil you transfer away from using it it was very negative on the demand side. >> paul, i want to get your famous, perhaps infamous paris trades that you lay out on the show almost a year ago, almost a year ago, august 25th, 2020, you said to sell apple by exxon at the time i think we gasped. apple is up 15% or 16% since
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then. do you stick with these trades do you think -- the overarching theme to this is oil equities will out perform technology. >> yeah. listen, by the way, i've never been wrong it's my timing is off a little bit. >> of course i did not think it worates woul rally from the 31st of march that ran me over
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that's huge for big tech and negative for big oil that will destroy extended valuations for high multiple companies like tesla still staying short there on the ark. i still like that one. we'll take a fang and short the megacap tech we'll keep riding this i think the key point i want to make is made by tim is better companies with better management and better cash return strategies and the really noble thing to say is that equity value is lower than the present value of the future. these are not greater.
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you're not going to sell it to some sucker down the line. it's about getting better return for your investment. i think we're sticking with it however much gamestop goes up. >> we'll check back with you on these. good to see you. tim, i'll go to you. long fang short, short fang. long fang, diamond back. >> there were a group of equities over done and the energy trade was part of a structural change in how these companies are run at a time when demand has come back and you have the tail wind companies that are starting to deliver diamond back is a story where they will increase their dip by
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about 13%. they have committed to paying 50% of free cash flow giving it back they stressed any mna they do has to be free cash flow of freedom. this is unheard of five years ago, ten years ago in the oil space when it was all about growth at all cost we have been talking about demand i think the more important story at some point will be the supply side i think there's a lot more capacity, discipline inside of the oil space and opecs plus and even in the u.s. coming up, we'll have more on the mcommodity crush. we take a look at gold we have pair of earnings on deck amc on the move after reporting. we have the details next don't go flir. don't go flir. anywhere
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real real. we have details on amc >> could it be a happy hollywood ending losses weren't as bad as expected at 71 cent a share. the company acontributes the boost to the 22 million people who went to theaters in the second quarter movies like fast and the furious and godzilla versus kong helped people leave their home. ticket sells are off from the billions they sold two years ago. they raised more than 1 billion through equity offerings amc is opening up earnings call to retail investors. over 4,000 people sent in their questions. most popular questions like will the dividend come back
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the company stopped paying it back in february 2020. another analyst will look for clues on how amc will raise more equity stock up in after hours trading up almost 1600% year to date back to you. >> thank you be sure to tune in to "squawk on the street" tomorrow for interview with amc chairman. that's 9:00 a.m. eastern time. let's trade amc. we got a headline saying that ticket price, the average ticket price is up 15% versus pre-pandemic that might help offset the lower attendance we have seen. >> it's good ticket prices are higher but when you have fewer people through the door that's less at the concession stand which is super high margin that's not great i love this dguy so much for doing whatever he could but this
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is still a business that's so incredibly challenged. we have seen like box office start not terrible it used to be terrible and not and drop off dramatically. that's not a great sign. delta variant didn't good either all thoeds things with a pile of debt is not good for me. >> they hold 80% of the shares in a recent tweet a couple of months ago 4.1 million of them. >> that doesn't make the situation bad. it makes it different than what we're used to dealing with if i look at it, it's uninvestable they were losing money in 2019 when sales were more than five and a half billion dollars they are expected to be below 2.5 billion this year.perspecti makes sense you have the 80/20 situation. retail sees something different.
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you have a whole list of choices to invest in discretionary consumer things. it's not going be our thing. >> is it pete's thing? from time to time, it's pete's thing. is it pete's thing right now >> it hasn't been for a well and it's because it dropped off from where it was in term of activity to where it's become almost one of the other stocks out there. i know it's a meme stock i still know they have some volume but it's nothing like it was at the hay day at the begin of the year when it was that name in gamestop and several others yes they raised capital but they have an unbelievable amount of debt that is helping a little bit of that move from the memes to the upside at time and maybe a bit here as we're looking at it in the after hours. i don't know i look at this right now and i think of all the competition that's out there and it's not just the competition that's normal competition
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it's the trstreaming competitio and all of that. i think it's challenging spot for amc. i'll trade it but i'm not in it right now. >> other interesting questions from tremendous tail kplunts could there be a tie up with gamestop which could be the ultimate in meme stock it's like wonder twins united or could it continue streaming live sports up next, shares of real real sinking after reporting results. courtney reagan has details on this one >> disappointment for investors that are bullish on the real real the luxury consignment company reporting a wider than expected loss and lower revenue than analysts forecast. shares are down about 7% or so it's been a rough 2021 for the real real. it's down 22% year to date the xrt etf is up 47%
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the real real continues on its path to profitability and did just report a record high gross merchant value it's up 91%. the take rate or the fees and commissions did false to 34.5% the average order valued grew nearly 25% over last year and above consensus. orders grew 54%. that was short of estimates. the real real conference call is under way right now. ceo julie wanewright mentioning the delta variant saying it's a wild card and in general apparel is doing well. >> i got to go to karen on this. you defended it. >> i'm long it this is disappointing. what courtney brought up is the most important thing is the take
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rate which was the low expectations just from the notes i read, it seemed like it was because the mix, if someone sells a watch on the real real, the seller will get a higher take than if they sell a dress something less, less expensive that mix needs to change we'd like to see more apparel. that mix is better for real real i really want to hear that i also want to hear about expenses they have been running two distribution centers that will be combining to one. i want to thaer was part of it and other expenses i'm clearly disappointed the calls going on now as courtney said. i'm going to listen to it tonight when i get home. it was disappointing because they have been putting out monthly numbers too. what we didn't know was this mix. we knew about gmv. that's a good thing. i think local stores which has
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been a big push for them will be a good thing they're all in urban centers that's the negative. >> i guess the delta variant seems to not be as bad in the new york or kmig we'll see. i want the hear that that will be important >> tim karen knows this better than i do that's where i think the disappoint is. the comps here should have been in their favor this is 18, 19 p% short interest stock. this is a kind of story that's a little culty as well down 31% going into numbers and had a period of down 51% for a big rally. this has been all over the map i think at some point you'll see the growth is interesting and the company has been beaten up
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they have kcarved out a great space. >> i want to add one thing about the short interest there's a convert that struck at 17.87 or so. you'll see a lot of hedging. >> good point. we're just getting started here is what's coming up next. >> stocks still feeling some indigestion. what's the cure in tony twines us next. chinese internet stocks seeing a big bounce today. how should you trade we have fathat and a lot more wn fast money returns that building you're trying to sell, - you should ten-x it. - it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything.
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lawmakers look to add more to -- there's speculation the senate could pass the 1 trillion dollar infrastructure bill as early as tomorrow. in full swing, tony dwyer, always good to see you >> it really started in march. i thought the discussion earlier in the show about the energy market was absolutely perfect. when you look back in march, we downgraded financials and called for a pull back in rates because they had just gone up to a historic degree on a ten-week rate of change to a degree they had never done before they discounted the incredible growth the summer of indisgestion was
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about the move in the cyclicals. not just in the committee but earnings that was the time to worry about a pull back in some of the economic reopening in like the financials, materials, the energy and the industrials that seemed improbable as it does now to look for relative outperformance going to year end. i think that will happen once we get through this choppiness period >> what does no man's looand fel like in term s of relative underpmps. >> exactly what it is. you know me well enough. we have done this long enough. i'll give you real firm opinion when i have one. the summer of indisgestion is you don't know what it will do day-to-day today they are under pressure as
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oil comes down before the dollar moved, i was asked why energy and gold and silver were getting so smoenged in the preopening. i couldn't find a really conclusive reason. the no man's land is we're in intermediate turn over short term we're volatile. the sector rotation is unpredictable and dynamic on a week to week basis what i really want to convey is this is exactly what happened after the first run higher in 2004 and 2010. we went into this summertime where rates went down. nobody thought in the spring of '04 and '10 that rates were going to come down hard. they almost retested the great financial crisis low in the summer and yet going into year end it was about economic recovery >> thanks for being on
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what is it your expecting from the fed? >> okay. the fed is in -- they put themselves in a box. i don't believe that the fed will raise rates for a very, very very, long time maybe years. i know people are saying 2023. there's just too much. they are managing the yields curve and two mandates talking about talking about the balance sheet. they haven't had to do anything yet. they steepened the curve to almost 200 basis points by talking down the likelihood of tapering as soon as you get talked up of tapering, market looks and said the fed is lahead of the game. that's what caused the drop in yields the inflation break even, long term inflation break even held up a lot better than rates that's been true you get a bit of a bump higher in inflation break evens, i think that while people are fearful of the downside of
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interest rates, i think we can go back above that 1.5 level in really creating an opportunity for the fed to steepen the yields curve without having to move >> what's the bottom line on there call, tony is it that the markets go sideways close to record highs >> i have a whole ton of plans like most of us do on a relative basis. i think you see the worst in the financials and materials, energy and industrials. you gave back the relative performance. i haven't upgraded them yet because on an asbebsolute basiss you will have a pull back. it's got to come from higher rates. every time you have this fear of economic slowdown, you have this secular growth names get a bid and they are the ones that dominate the s&p 500 the s&p 500 equal weighted index.
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the transportation index, the advance decline line all of these -- the small cap and mid cap indices are all sideways since april the s&p is being elevated by mid on the megacap growth names. i think you have to lose that bid to really correct the market that's got to come with higher rates which means value or cyclicals should go down less and you want to attack any weakness >> all right my bro producers will scream at. we have been doing in a long time and you have been very direct doesn't sound like you expect rates to go higher soon. >> i do. i think the play book is rates bump up 1.5% i think last week at 112 we brought a piece not so you neek. you had this massive decline going into october of those
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years. your best performance was in the cyclicals even though rates still had a bit more down side net net i think year to end rates go high and cyclicals go up >> got it. thank you, tony. pete, what do you think of this call >> it sounds like he's expecting a bit of a pull back i like there call because of the fact i think he's right about seeing at least from the sounds of it, he stills like energy, materials, financials in terms of going to the upside and continues to hit on these rates. he and i were talking about the hen year and where it is at the time nap was a few weeks ago i think he's on the right path i think we could see some pull backs but if we don't we have that cycle and we start to move higher based on those three different categories >> this feels a lot like last year at the exact same time if you think about it if we're all going to say the
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nasdaq and s&p 500 seem to be impervious and i'll just remind you that in september of 2020, the s&p went down about 10% in a straight line. some of your most favorite names, the names that might be vulnerable if rates go higher, they got slammed apple and amazon were down 20% on down s&p in one month in one month the biggest peak to trough decline we had in the s&p all yearlong was 5.5%. that happened 190 days ago we have some more details coming up on the amc call. >> they will start accepting bitcoin at all their u.s.
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locations by year end. they said they are looking to add apple pay as well as google pay for online purchases this is lit up the twitter sphere right now that's what a lot of people were hoping for the ceo did say they are working on the case when it comes to partnering with gamestop he just teased and said more to come they talked about fact they have been successful with recent concerts and concert moves they will be looking at expanding that alternative programming can be a real revenue opportunity and we're chasing it hard. a lot of news coming out in the latest he just announced deal with warner brothers. big news right now is they plan to accept bitcoin by year end. back to you. >> all right thank you. bitcoin imagine what would
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happen to stock if they said doge i think that's another story. sdp i don't know that's the most interesting. the bitcoin thing, i find it -- i don't know i find it -- i mean. this is talking to his base. good for him he knows his base. they bailed him out. he does have some cash on the balance sheet. gold losing some glitter today. we'll tell you howheptns being on this one. it's a o
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this is the gold miner etf a lot of that activity was concentrated in the september 24th weekly 28 straight puts we saw over 3,000 of those a part of that volume. they were buying those for about 20 cents buyers are obviously betting the gdx could drop below that $28. that could be a pretty significant decline from just under 32.5 >> thank you, mike be sure to tune into the full show up next, rock legend gene simmons will join us to break down t mesheov in the crypto world. fast money is back
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comcast nbcuniversal is investing in entrepreneurs to bring what's next for sports technology to athletes, teams, and fans. that's why we created the sportstech accelerator, to invest in and develop the next generation of technology that will change the way we experience sports. we've already invested in entrepreneurs like ane swim, who develops products that provide hair protection so that everyone can enjoy the freedom of swimming. like the athletes competing in tokyo, these entrepreneurs have a fierce work ethic and drive to achieve - to change the game and inspire
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>> nice too see you. hope you're keeping safe >> how long have you been on this kcrypto trade >> i was very lucky. tyler was kind enough to take my call at the beginning of the pandemic it was a quick educational, those notes that we used to have in school that gave us a shortcut i went in big. i nut a few million into good coin when it was around 10,000 i loved the ride up to 64,000 or so i'm what's called a holder for those great unwatched masses who may not be educated. you have an inferred fiduciary to yoours to find out. in your hand is the answer to your questions your hand held device. it's culturally -- it's a
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cultural language that created by the crypto currency kids. it's a misspelling of the word hold i believe in the long run. now that crypto, especially bitcoin more and more is becoming accepted, elon knows you can buy a tesla. s >> what is going to happen to bitcoin? please give us your opinion. >> my opinion is uneducated and protect bied by the added timeso have the world by the beginning of the year we'll be at 55,000 or 60,000 i'm all in i'm putting in more.
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i have about 14 of them. i believe in crypto, you're talking about gold a second ago. look, if i had a bar of gold and i wanted to sell it to you and i want cash, the government will not know about it, unfortunately. find out it's easier to get a gun and to fight legislatures about trying to tire our hands in crypto. every single trade and every single purchase any movement of any kind has a digital finger print. you'll be able to tax everybody and make money if somebody out there sell a bar of gold and takes cash, you're left out in the cold >> we have like a minute, literally. what i do want to ask you, just at the beginning of the
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pandemic, you make massive amounts of money in a short amount of time by making one call to tyler, he returned your call you're in. now you made millions. are you -- everybody. >> some of the other sort of fomo trades out there that are pervasive on the internet like the reddit stocks? does it pull you in? >> i think it's everybody's responsibility to do their own research i'm not going to sit on my highchair and tell everybody you can use crypto currency to purchase my art. the gene simmons art will be at the hotel october 14, 15 and 16 for the first time some of the largest pieces go for $250,000 you can use crypto currency. i'll take bars of gold in terms of the other areas when we were off camera, i suggested
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speak to kathy wood who is much more eloquent and you really should give me much more time. i'm fascinating. >> the next time, we'll try and do that. it's great to have you >> you should. >> we appreciate it. >> see you later >> the rock legend gene simmons on this. pete, i don't know how you follow that? >> i don't know. that was fantastic i loved it i don't know >> he has art work he's a piece of work up next, your final trades
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don't get mad. get e*trade and take charge of your finances today. ♪♪ time for the final trade tim. >> guess who was first concert i went to. >> kiss. >> loved gone tour 1977. bank of america. i'm shouting that out loud >> pete. >> international gaming technology igt. i think it's going higher. >> karen >> yes anthem was down last week. the loss ratio was high. like them here >> sam >> we're talk about demonstrate ta weighing on some of these
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transports i think jet blue, not delta down from 20 near 15. >> all right thank you for watching we'll see you back here. mad money starts right now blan to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job isn't just to entertain you but to educate and teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. this market is afflicted with a serious case of lazy thinking. and
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