appreciation level to others saying prices would go nothing only happened during the great recession an great depression. >> we remember all of those assurances in '06 and '07. never happened before, diana thank you very much. that does it for overtime. "fast money" begins right now. feeling like we're about to hit the bull's eye ceo of target now sounding a lot more optimistic. plus, a bounceback to believe in is this a rebound that investors should approach with caution and later, we'll shoe on the rally and get you the hood of tesla's electric day on the desk tonight, tim, karen, and guy. we start off with the market bounce the dow, s&p, and nasdaq seeing

their best day of the month. the move coming as major bearish indicator hit a seven-week low consumer discretionary among the leaders. one of its hardest hit members seeing a revival target surging almost 4% the ceo delivering an upbeat tone saying that back to school, back to college and even halloween shopping shouldboost sales. at the same time, acknowledging a challenging environment for consumers due to inflation target stock down about 42% over the past two months. they warned about inventory levels last month, they got crushed what are we supposed to make of target he also talked about the idea of coming out just weeks after the quarter saying we're going to mark down a lot of the inventory to get ahead of the problem. >> that second shoe, that second drop was really the one that was d discomforting because it came so shortly after this giant bomb and you would have thought if you're going to have a huge, bad news, you better just put it all out there.

so were they overly optimistic or did it seem to get worse? my guess is that it got worse quicker than they thought. so i guess he's going to do what he has to. i think that guide down on the margins from originally what we thought would be 8% ended up at five and change. then got down to like 27 hopefully that's big enough that if they actually deliver in that neighborhood, that that would be somewhat of a floor for the stock because people think the worst is behind. i don't think it's a one-quarter event. i think this much inventory plus trying to balance back to school then going into the holidays is going to be a difficult endeavor so i think we're looking at more than one quarter of pretty compressed margins here. >> the nice thing about listening to brian cornell, he's given you a vantage point into the logistics. he even rambled on, not the right term here, he talked about the biden policy on tax cuts and kind of snickered in his own

way. transportation costs up, but the inventories and inflation at historic highs to me is a message that i think we're going to hear from other companies the nice thing about the message today also is that he said he expects a massive back to school, a massive holiday season didn't say anything about the consumer being dead. he really pointed that this has been an impossible time to manage inventories i think we've all said this on this desk with regard to other sectors. the inventory dynamic is going to be extraordinary. what company isn't at some point going to be stuck with bloated inventories. >> my take looking at the headlines, it's down 35% or so, looks like half a tick on the chart. i'd say the headlines look qualitative in nature, right, when you think about it. we had you know, that guide down a month and a half ago then the pre announcement and they were all, like, quantitative. there was a lot of data.

they were guidance this is really how i feel and going back 25 years in my career in this business, when you start hearing you know, second half bloated, it's not usually done in the second half i'm just saying. to your point, karen, you said these sorts of inventory issues, dealing with supply chain and inflationary pressures, they're not one quarter thin so does it make sense to press stocks in a market like this that is really negative right now? sentiment's horrible it's horrible in a stock like this which some will say is ground zero. no, it's not, but see how they act. if this stock can't rally tomorrow after all the headlines and dissecting of this sort of news and then people are walking away somewhat positive, then it's going wrong >> to karen's point, the consumer may buy all those things guy, you're probably in need of a new costume for halloween at this point first of all, target is the second biggest net importer into the united states. he was talking about shipping costs, logistics costs because of fuel, going up a billion

dollars overnight. he used the word overnight because of what has happen ed i the energy complex so, yeah, they can sell all the costumes they want, but the question is what are the margins on it. >> first of all, not the costumes i buy there are a lot of margins in my costumes, number one we'll talk about that closer to october. this is my sense about target quickly. they said everything they needed to say if you're buying target here, which by the way, i think you can, you're basically betting that they're not going to go 0 for 3. they're not going to strikeout they had one strike with the quarter. second with the guide. i don't think it's going to happen again i trust brian cornell's judgment in terms of valuation, even if it's only 11.5, $12 next year's earnings, you're talking about a stock trading 12.5 times forward earnings not cheap. probably as low as it's been on valuation for quite some time. i don't think you're going to be rewarded for it over the next couple of months, but come fall, you're going to say i'm glad i bought target in the 140s. that's my sense here

>> so i kind of agree with guy i'm long, so hopefully i agree or that wouldn't make sense. when you lockok at the multiple they have, they've been penalized very, very heavily deservedly that's a disastrous quarter. remember we had mr. simon on who said walmart's inventory was a apocalyptic and target blew it away they deserve the discount, but i think they've been sufficiently punished i'm staying long >> i think the message we're hearing from companies is not really that they're seeing a fallout in demand. that the environment was so complex they really didn't know how to handle it some of the smartest and largest retailers in the world, that's disappointing to me as an investor because i want to knock that down. i hadn't heard about the consumer i heard about a change in terms of where the segments they were buying at and moving more away from big merchandise but that's disappointing >> here's my question though and

that is, i like the way you just sort of -- you're like, what is your -- my question, dan is if brian cornell and maybe others out there are expecting some pretty strong back to school, back to college, back to halloween parties and trick or treating and all that -- >> never knew halloween was an economic juggernaut. >> what will it look like coming in for those seasons in anticipated strength and how do they deal with the inventories they have to get rid of and will they be backlogged again did they learn how to manage the inventory? do those issues go away when they're anticipating such a strong back half of the year >> i think really the point is about visibility that's one of the things that is so difficult right now i'll point you to a couple of other headlines. i don't know if we're going to talk about it. but larry summers talking about 5% unemployment for multiple years to fix this inflation problem. the president's listening to him. that would be a disaster, i think, for companies like walmart and target if you think about where a lot of that

unemployment would come and let's just say that is front end loaded just say companies start getting worried about the lack of viz tbl i they have, they start cutting costs by doing job cuts. that and the housing data we're seeing sort of soften, roll over a bit, that's not great for the consumer like ultimately, looking out say a quarter or two >> got it today, was down small although we had record prices. we've seen nothing out of the housing market data that reflects where mortgage rates are and that's going to happen what i think is fed is quietly doing, the biggest asset bubble is the housing market. $28 trillion i just feel like they can't come out there and put a bull's eye on it. what happens to the consumer when that feeds into some of their choices. >> how does that factor in,

karen, in the consumer could see headwinds and they go and buy stuff at target. those two things are not mutually exclusive that they can continue to spend, but target won't necessarily be the full ben fieficiary of that >> given the inventory they have, they don't need to buy more to meet that supply right? so given to your earlier point -- >> really? they're selling back to school stuff. >> but back to school they ordered a long time ago. if they didn't have it set by now, they are way late so i think they're already set for that i think the consumers there, as long as the consumer has a job and feel like they will keep their job. >> getting to your point, that's where i think you could see things unravel >> if all these companies are inventory that needs to be cut and slashed and brian cornell said we need to get ahead of this, doesn't it mean prices are coming down? it's not going to come down for

food and gas, per se i am, actually it's actually a little late now, but the stuff might get here by christmas, but who knows i just, i think there is some sense and if go into target and walmart today, there are certain segments of those stores where they are slashing prices those things are higher than ever >> all right our next guest believes stocks are in a bottoming process lori is the head of u.s. equity strategy for rbc capital market. great to see you >> good to be back >> i read your target on the s&p 500 and had to read it twice just to make sure i got the digits right 4700 what is the path there from here >> so, look, i think our target assume that is we are going to find a bottom in this market soon and one of the things that we've talked about is that when you come out on the other sides of these declines, the rebounds tend to be pretty fierce in terms of coming back

i think it's interesting to look at where markets tried to make a stand. above 3900 it held for a bit then we broke below that on this last cpi report and the big pivot we had in the fed we're deeper move into hawkish territory. i think what the market is grappling with, is what kind of recession is coming. i think when you look at sentiment in the market, some of the gauges are telling us we've really already reflected the worst of what's to come. you look at cftc, for example, we finally started to really hit the lows of the 2015, 2016 industrial recession, which was all time low in terms of u.s. equity futures positioning for asset managers really it's the idea we've pulled forward a lot of this pain on the fundamental side >> i agree with that my question is and i respect the time dynamic of where we close and bottom to where you can get

to 4700, but 47 at least implies some eps number for the s&p. so help us understand because that hasn't come in for anybody so it seems and i have a tough time believing it says where it is >> i think you're right. i think we need to see numbers come down, but i go back to this kind of recession that the market might be anticipating we spent some time over the weekend working through different recession scenarios. as i talked to investors last week, i think they have a sense they want to buy the market around sort of 15, 16 times. they don't really need heroic valuation multiples to get back in, but they need some confidence in the e. i'll spare you the math, but we put together a quick recession scenario that models things after the 2020 economic downturn that we had. what we see is that if a recession is starting in the third quarter and you get through it in the next couple of quarters, you can have decent earnings growth for next year. we came up with the number 235 if that ends up being in the right neighborhood for next year, you're trading around a 15

times multiple at least you were late last week, which is something investors have been telling us they think is reasonable we just really need to get some sense of what the contours of this recession is going to look like is it going to be short relatively quick or something that's going to be nasty and prolonged and take a good bit of time to get out of most of the investors i talked to are in the former camp where they think this is something we can get through quickly and won't leave lasting scar, given how strong the consumers are going into this. >> in a recession, do you think that, you modeling that the fed will stop raising or ease somehow and therefore we get back to a higher multiple? because it would seem like then we'd really want a recession, whereas if the consumer and market and economy sort of hanging on and the fed keeps tightening and multiples come down >> i think that's right, karen one of the things our economics

team has talked about is if the n fed starts to see sic-- in the employment data, they're not going to tolerate it too long. i think that's a very valid assumption >> complete pivot then what does it look like to get to 4700, what sort of pivot is it? you stop hiking rates? or you're actually easing in some way >> i think that you have to signal what the path is. i think that markets really want to see the fed to view it as a true pivot, i think the market would want to see a scaling down of the rate increases for the strategy and some signal that they are concerned about those difficult employment numbers that we think are set to come. so i think it's really not just the actions in the short-term, but the forward guidance they provide and some sensitivity frankly that they care about the

employment side of the mandate >> lori, great to get your thoughts thank you. >> thanks for having me. >> rbc guy, can you see 4700? >> yeah. a lot to unravel there i don't see it but i'll tell you what i do see. we talked about it wednesday night after the fed got finished speaking i thought the next day, you'd have a robust rally. that didn't happen, but on thursday, i saw something i ha hadn't seen in a while panic on the downside. i think there's another 8%, 9% to the upside, gets us to 4100 in the s&p in terms of forecast, i think $235 for earnings is a little stretched. i'm probably closer to 210 i'll say this as well. if this fed does pivot in the back end of this year and starts talking about lowering rates, there's something catastrophic going on and quite frankly with inflation north of 8% and their mandate now to get it back to

two, they can't, i'll use this term there's no way they can thread that needle. zero percent chance. >> lori's been relatively cautious on the economy and i think it really just highlights how difficult it is to mesh the really uncertain economic backdrop with what might happen with risk assets that might bottom before the worst of the news is there. again, i don't really see 4700 anytime soon that's basically back towards the all time highs in january that was like 4800 and i think we probably bottom for much lower levels and i also think something that i'm just going to be really consistent on. it's going to be time that really makes the bottom. it's not going to be the reversal because to guy's point, they pivot after this aggressive hiking, the most aggressive hiking we've seen out of the central bank in decades, it's going to be for something that's not going to be so equity or earnings friendly. >> i don't see how they can pivot. today, saying they'd have to

move faster. >> how loaded things are, doesn't it raise the possibility that they could reverse later in the year >> it does but it just tells you how far off sides they are we have fed powell, humphrey hawkins testimony later in the week fed funds rates down to 350 towards the end of the year and the fed telling you they're probably you know, 30 bips higher than that in '23. i think we have to go a lot higher higher than the neutral rate to get there. >> coming up, we're taking the trip to splitsville off a big spin off announcement from kelloggs which other companies could benefit from a break up? plus, stocks rebound frg the worst week of a bear market, but what do the technicals say about where you're heading next? don't go anywhere. "fast money's" back in two what do you think healthier looks like? cvs can help you support your nutrition, sleep, immune system, energy ...even skin. so healthier can look a lot like...you.

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companies should split tim? >> the first thing that's interesting is often these are opportunities where we see companies come together. there are synergies, massive cost savings and that's usually the reason for doing it. when you break up these companies, you're actually adding costs i would just look at industries first and answer the question look at what's going on with the department stores. look at their ability to spin off ecommerce business heard about sax. the dynamic with macy's. the other names that just seem to be ones we've talked about from the beginning of time google google and ultimately what you have here with the core business versus the youtube business, which i think is undervalued and the question is is it a media company, digital ad company or all the things it is in between. with amazon, you have a dynamic with aws one with high margins and one with low margins right now, i don't see a reason

why you'd want to separate them if you're the company. >> yes, 100% if you think about it, what their valuing in that retail business is basically nothing so you're putting, i was on with a friend of mine who's a very smart tech guy put a 13 times multiple on the aws. if you are going to rerate that stock or rerate the aws portion lower, amazon's going much lower, right because you're not going to assign more value to that. i think you have to start and stop all of these conversations with does it unlock shareholder value for the whole. >> karen, would you be a happy alphabet shareholder if it split? >> i don't think that's the problem, really. yeah i feel like -- >> is it optionality and is it a driver we've said that about youtube. undervalued. no >> i guess it is, maybe, but not anymore. i think the valuation of those properties iscoming down, right? so i'm not so sure

i do think the transparency it's brought has helped the valuation a lot and the financial engineering. one we didn't mention that is doing a split, jnj, it's going take a long time, but consumer part of their business i think will be interesting. >> yeah. guy, which split have you heard about that you're a fan of >> jnj's interesting let me throw this out there to be the countervoice. if you need to split your company up in order to unlock shareholder value, then you're running your company poorly. you're not telling your story well enough. the street clearly doesn't understand that's my take on the whole thing. like, why do you have to break it up in order to get rewarded for it tell your story better and maybe the stock market would start rewarding you for the company that you have. just throwing that out there because why not. >> i think of activist shareholders and whether to nelson pelts where he's been at

proctor and gamble it's been a way to value the parts. companies shouldn't have to come up with dynamics and tricks to add value. but i think companies in many cases are worth more than the sum of the parts >> all right we are just getting started. here's what's coming up next >> a ton of green arrows today as stocks shake out their worst week in the bear market, but is the rally just a head fake look at the charts, next, to find out plus, a ferocious day for chewy. you're watching "fast money. tesque.m the nasdaq market site inim sar we're back right after this. rve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened!

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welcome back call it a rally, a bounce, rebound, whatever you want to call it. all three major averages roared higher the s&p its best, led by energy. nasdaq up by 2.5%. dow finishing up close to 650 points check out the gains in united healthcare it alone accounted for about 190 points on the dow. do you buy this rally, guy did we see the worst of it >> i think in the short-term, absolutely i thought the panic was on thursday friday was sort of sideways, today makes sense. i think the market can rally for the next couple of weeks quite frankly, 8, 9%, then you're selling it again this rally's going to provide you with the opportunity to make sales then look for a move down

to 3400. i'll give you another little tidbit because why not it may come in the form of apple earnings not necessarily the quarter, but potentially their guide. if apple guide suggests what i think is going on, and katie hubberty from morgan stanley has been caution i think that's what takes the market lower >> we are fin this little i dont want to see honeymoon period, but information vacuum >> we're just back to where we were thursday at lunch felt like a big rally. been in position for a little bounce but mostly long. it's been a dreadful, dreadful month, but maybe a little room to run i agree with guy i don't know if it's going to happen tomorrow or not, but i think there's room above for some relief rally to continue. >> would you use these rally to sell >> the 21%, 21.5% move in 50 sessions down april 1 left you

in a place where stuff's very oversold think about what we digested in terms of the move and yield curve. mostly just rates outright i think you have you've had three rallies, certainly two decided rallies north of 9% in the s&p since january. this is an opportunity especially if you can get a sense from a couple of the data points on inflation and that would really be i think the catalyst to give you more of that trading range, but would agree. somewhere up to around 4200 we have room. down to 3800 and change. i think the next level is 35 >> according to today, it's got to be one of the worst quarters we've had in the market. s&p's down nearly 17%. that's including today's gains here could we rally into quarter end before you're calling the information vacuum it's not too dissimilar from what we saw in the second half of march there was this lead up then we just rallied on the way out. i don't think the news gets better in july i think the focus is going to be

on that coming down then investors are really going to start to say, okay, we overshot on the multiple to the upside. probably likely to do it near term >> for more on where the market is headed next, let's bring in katie stockton great to see you >> you, too. >> so what are the next levels to watch in the s&p? >> well, we had one level that's in play. we've been watching it for a long time. it's around 3815, based on a retracement and it has been penetrated pretty decisively that leaves a break down pending confirmation this friday if we see that, unfortunately, the targeted support level becomes about 3200 there is interim support around 3500 that's obviously very widely followed level and would be a natural place for some kind of relief rally. and as you mentioned, it seems like there's some kind of relief rally underway, but we don't think it's really tradeable. we are using it in part to

perhaps cover some short positions with the possibility of additional stabilization, but we think it will be somewhat short lived and difficult to trade. really similar to what we've seen already year-to-date in terms of these countertrend moves. >> say we're on a path to what you outlined i don't want to pit you guys against each other, but are you hearing a strategist say 4700? what do you see in the charts? >> i think september, october will be a time for a bottom. the way the indicator's set up, it's really just based on technical analyst. nothing macro is being incorporated here, but the way the indicator is set up is that we should have some kind of reaction to the long-term oversold condition by then and what we're watching in particular is the high growth

arena as measured by benchmarks or etfs like arkk. those areas of the market are extremely oversold from a long-term perspective. so we're watching for some kind of develop there and by that, we're not adding exposure in anticipation of it, but looking for more stabilization, sort of zen sideways price action. as that happens, we would expect momentum to improve. that's where confidence would be restored in our opinion enough to get the market out of this bear market cycle. so we're watching for bases to develop in the most oversold areas of the market adds really a precur suser to that kind of . >> do we need to see big cap technology go down more in order for this overall basing to happen >> i would think we'll see co downside leadership again from the megacap complex on the technology front so if you took technology

spydr or slk, it's been trending lower. that's with underperformance from the likes of microsoft and google and even apple. so we're looking for more of the same in terms of downside leadership it's hard to picture it. based on the indicators alone, looking at their monthly bar charts, they have more room than the higher growth arena in terms of downside to oversold territory. >> great to see you. thank you. >> you, too. of course. >> guy, more downside. chris said friday he was saying 100 for apple. >> if apple were to trade 100, it gets you an s&p somewhere between 3100 and tim's 3200.

so that would be catastrophic. i don't think anybody thinks, well, i shouldn't say that i think people would dreaming they could buy apple that low. tim has mentioned 115 a number of times i believe that's in a report release. that start to make a lot of sense given the backdrop i'll say again, i think the market can rally from here another 8 or 9%. i think that's where you're taking money off the table and looking into apple earnings at the end of july. >> dan >> if you look at the pre pandemic high of 2020, the s&p was about 2400 you could say that in a bear market in a recession, that should be lower, but let's use the ten-year average and you want to say that earnings growth had high single digits this year are still too high we all agree on that and say they're flat worst case scenario, maybe that's 200 bucks times 17. gets you to 3400 that's what i would start

thinking down 30% round tripping the entire move that's how you have to think about bear markets just like we knew things were getting too overzealous, you're not going to know. it's going to have to feel really bad before you say we're probably over. down 30 fe% in the s&p 500 is wr things start to feel bad >> totally agree with you getting getting back after the fact. >> back to pre pandemic levels on a lot of stuff. the s&p did -- from 2018 into that pre pandemic high it was a market that rallied heavily into the pandemic. crashed and so using that high point, i think might even be generous if you're actually trying to figure out where things should look to. >> coming up, meta meltdown. shares sitting after today's big rally. what had the company in the green. plus, tesla shares in high gear.

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finding that meta used information protected under federal housing law to run its targeted ads let's bring in gene moneyunster break down the headlines seems like another way in which their hands are aehandcuffed a little bit in allowing advertisers to target. >> that is one of the forces in play here is that it's getting harde harder for monetizing. whether it's the housing today upcoming changes to unemployment and credit that facebook has vowed to make using less personal data around that. all of those add up to part of

the negative equation here, which is harder to monetize. in fairness, there's a different side to the ledger, which is what is working for the company. about 35% of global internet users visit a facebook meta property daily it's quite remarkable. and we have those two forces are working in opposition. that growth of that base is still growing despite increases of competition from tiktok facebook reels is doing surprisingly well. but that is what is at play here and that's why it trades at 11 times next year's earnings is investors understandably are getting tired of this drip around more difficult to monetize >> as a disgruntled facebook holder, meta holder, what do you think about, i know the privacy rules definitely have an effect, but how about the underlying business part, whether it's

small businesses who aren't advertising much because they don't literally have the product in hand because supply chains are less optimistic about the company. how much do you think that weighs on their business versus the privacy issues >> i think it's the bigger piece in the near term and i put the near term on it over the next three months i suspect that all companies are going to be cautious about september. your team has done a good job of enumerating that risk and facebook is no different i would put them in the same category as google that has this high level macro risk to it. so that is the other, i don't highlight that as one of the two forces because i think it is more over the next three to six months, but that's a big deal is trying to figure out what's the true health. i suspect the economy today is in good shape, but in three months, that won't be the case

and that's going to create downward pressure on shares of meta >> hey, gene, the first year this company was public, 2012, they had gross margin of about 76% or so. 2016, they demonstrated how good they were at targeting their margins. in a year or two, they're supposed to be back in the mid 70s. is that the problem here, the gross margin for that product is kind of going away then does it really trouble you, this pivot they're making into what's calling the meta verse, whatever they're doing, is that that's going to be, that's really going to eat into those margins, too >> i think investors are able to parse autosome of the investments relative to overall margins. one thing that is a road that has been well traveled that has proved to be reliable around social is that when engagement is growing, companies find ways to monetize, find ways of

increasing profitability so i think that they'll get a pass on some of the investment in the meta because they can break that out, but in general, that to me is you know, the true kind of zen quality here about thinking about this company is to think about ultimately where is engagement going? there's no telling where the bottom is and so that ultimately when it comes to when kind of deciphering where social is going, as it stands today, i think they're doing a decent job of hanging in there and of course the most important piece we'll be watching. >> gene, thanks for phoning in always good to get your thoughts >> so this stock, you saw it there. off 59% from its high. it's down 18% over the past month versus the nasdaq 100, which is down 2% guy, i know you hate this stock. there are plenty of other reasons to hate it besides the

ones you hate it for >> no. i mean think about what you just said this was a trillion dollar company this time last summer effectively. now we're below $500 billion stock to your point down 60% since that all-time high you can make a compelling case on valuation you could have done it for a while. sheryl sandberg leaving, big deal, not a big deal i think it's a big deal. i don't see any positive catalysts other than valuation until you get to earnings at the end of july. listen, if it can't rally today given the tape and selloff the stock has had, when is it going to rally into earnings or anything but i think it's still a no touch. >> this is the real standout in today's rally. big cap tech had some pretty nice gains except for meta >> in fact, if you look at the triple qs and you would expect them to outperform by 125 basis points and they didn't

in the greatest tech rally we've ever seen, it absolutely exceeded dot com going back to july of 2017, this company has underperformed the s&p while the rest of the tech giants have gone through the roof >> anything advertising related, which netflix might be now disney meta, all underperformed today no doubt >> speaking of meta, do not miss jim cramer's interview with meta ceo, mark zuckerberg that is tomorrow night on "mad money" right here on cnbc. that will be a good one for sure coming up, tesla charging higher we'll tell you how they're playing the name next and throughout jeune, we're celebrating pride month. >> the begiggest influence on me growing up in a small southern town was a leader we lost this year to cancer she was a fighter, an advocate

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i am pretty despicable. check out the surge in tesla today. elon musk said they'll cut about 10% of its salaried workforce while also cutting hourly employees. one options trader's betting the action will not stop here. mike, what do you have >> tesla's always one of the busiest stock options and toeda, it was the busiest the only stock option to trade over a million contracts today the options market was a net buyer of equivalent $2 billion worth of tesla stock today an example was a purchase of 1,000 of the weekly 775 780 call

spreads. on a bet that the stock could rally more than 9% by the end of the week that trade would pay better than five and quarter to one if it did. >> karen, what do you think? >> i don't know. i got a little distracted and didn't fully hear him, to be honest >> all right what do you think of the notion that these gains could continue? >> to me, i feel like the twitter thing has so much more to do with it. david faber brought up something interesting talking about the loan t that's maybe an out. it's just the flip side of twitter. >> yeah, i'll just say this. look at the last few quarters, the last two weeks they usually coincide around the time of the e-mail hey, we got to make our quarter. the stock rips into the end of the quarter. maybe this is the start of this and the options trade is a way

to define your risk. >> mike, thank you for more options action, tune into the full show coming up, barking up the right tree shares of chewy jumping as analysts say the worst is over for the stock. is it time to throw this name a bone >> yes >> we'll discuss that next "fast nes"acinwomoy' bk t thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective. and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back.

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welcome back chewy topping the tape today shares soaring 11% after an upgrade. analysts citing strong retention and valuation. tim, you own this one? >> i don't i've talked about woof before. the whole space is certainly a case where you're going to see a h lot of resiliency to the downside people don't stop spending on their pets their gross margin was 27% they had a very good first quarter. surprise to the upside and this was after a couple of quarters where they were pushing back on that i don't think you get carried away you've had a decent pullback in the name

i think valuation says you own it here. >> let's hope they don't stop spending during the pandemic, we saw a lot of pet adoptions, pardon the term, but some pet owners are fair weather friends to their pets >> like not guy adami. >> treats the dogs probably better than i don't know, other members. >> i'll tell you this, i treat my dogs better than i'm tweeted on twitter, if you want to follow me on twitter real quick, in terms of the stock. i'm with tim on this one that quarter on june 1st was really good. supply chain seemed to be working now in their favor and one of their directors just announced the purchase of 180,000 shares a $35 price target is not necessarily a ringing endorsement with this upgrade, but there are other people much higher on the street and there's a decent short interest. i think it goes higher >> yeah. dan, have you trafficked in this

sector >> i will say this >> dan's a pet guy, too, as we have seen. >> i have two cats and a dog i think there was this trade up to these higher end products for a lot of things. i think that comes back in a more difficult environment i think some of the behavior that when you couldn't spend money elsewhere. so i don't know how this could avoid the other retailers. >> okay. up next, final trade the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

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final trade time guy. >> amgen has held up pretty well >> tim >> we've talked about trading names. al ali al. >> merck has been down a lot

but i think there's more upside. >> dan nathan. >> we spent some time trying to read the tea leaves. look at this, relative underperformance of bank are saying something >> thanks for watching fast. don't go anywhere. my mission is simple, to make you money. i'm here to level the playing field for all investors, and i promise to help you find it. mad money starts now. >> hey, i'm kramer. just trying to make you a little money. my job is not just entertainment.