out everything they can out of it. also, the have pricing capabilities recently increasing by 10%. the fact it's extremely profitable. we think on the e-commerce business, this is the one to play. >> all right. seems well positioned. max, we appreciate your thoughts this afternoon. thank you very much. >> that will do it for overtime. past many begins right now. right now on fast and easy come, easy go. robin is dropping after shooting down reports the company was in talks to buy them. what does this mean for robin? oil stops leaving the market as the sector looks to rebound from a fun. can the trade stay energized? we will get answers. a coast-to-coast correction. when top economist is sounding the alarm for the housing market. what he says things could get rough, quote, very quickly pick this is fast money.

tonight we have karen bartman we start off at the earnings alert on mikey balto after hours. the conference call getting underway pick let's get straight to sarah with all the details. >> hi, melissa. some relief in the stock initially. nikes numbers on the top and bottom line did come in better than-expected. clearly, nike is dealing with challenges. china where sales dropped 19%. also, overall gross margin decreased and missed at 45%. the company blaming their china issue. likely the markdown of inventory in china as much of the market was shut down due to covid. of much of 60% of the business was shut down at one point during the quarter. another issue, the stronger dollar. sales overall this quarter, they were down 1% pick they would've been up 3% if not for the impact of the stronger dollar. nike is still dealing with

supply-chain and shipping problems which have held back sales at home in north america, where revenues were down about 5%. on the plus side, nike direct to consumer and the digital business are still going strong. up 15% for digital. it would've been even higher if not for the stronger dollar. on the conference call, which is just kicking off, we expect guidance. usually get that from the cfo on the call. there will be questions on how the brand is doing now that china has finally reopened. china has been a key growth driver for nike in the past two years. it had some hiccups. first the national sentiment with the boycotts and the kovich shutdowns. also, we are listening for anything on brand heat in general. nike has weathered covid and the supply issues on the back of a strong brand. its ability to resonate with the consumer, and the ability to get pricing power as a result will be key for investors to figure out whether that is still going strong. to determine whether they should look through the headwinds outside of nikes

control, like currency and covered lockdowns. just a rock, this is a stock that is down 30%, worse than the market and the retail trade. on anticipation of these issues. bottom line it was a $0.09 beat. >> sara eisen out in aspen. i think the context of the move is important going into the quarter that the stock is down tremendously but guidance is expounding. >> down to the current level. 106 was the prior art time high way back in january of 2020 before the world change precipitously. i look at nike with the following, valuation is cheap compared towards bennett 25. this is what caught my eye. 23% year over year inventory build suggests margins will be under pressure. i think there is further room to the downside, but not a lot. i don't think you will get killed owning nike. i just think there's a better

entry point. >> karen, what is your take? >> i kind of agree with guy. there was one thing i was curious about, the income tax benefits. i don't know if that matters at all. one other thing that i think is important, of course china not just to nike and other companies like starbucks. but also, investors will they care about the miss or not? it seems like we are kind of dismissing it. maybe that's the right thing to do. i'm not really sure. that is been one of the things weighing on stocks, the idea the dollar is so strong. they repatriate earnings from foreign countries, but they will have lower earnings. we are seeing that a little bit, 3% i think is the change. but i think the street is ignoring it. maybe this is good enough, and the pe multiple has come down a lot.

it is significantly over the market multiple. it should be. it's a premier company. i don't own it. how much over the market multiple should it be? i would rather be in lulu. >> yeah, i think it's not surprising. earnings came down so strong over the last couple of weeks. i think what's important to look at for nike, is really what is there guidance going to be? i think when we look at the consumer, are they still spending on something like sneakers? they are a high ticket item for consumers out there. i think it will go to show what some of the other companies are looking for is is the consumer still strong? that's what the markets are worried about. nike itself, i really like it still priced below the five- year average. it could still have some ups and downs as china's reopening. long-term, it's a good company and it's pretty cheap right now. >> still two words, constant currency will be a theme of q2 earnings. you just brought up the point about currency impact to u.s. multinationals microsoft less

than a month ago preannounced the quarter. they were blaming it on currency. didn't seem like it was that big of an impact for a company that does that sort of revenue. so, we will hear that a lot. i think this company, late cycle, doing this and saying this is important. with the guidance will be. it might set the stage for q2 earnings in general. and what people get comfortable with as we think about a period of time, right now, were visibility is poor on multiple fronts. if not just the headwinds to the strong dollar or covid shut downs. there's a lot of crosscurrents too. >> we are looking for the guidance, but for china, you would think things would be in an upswing. the guidance for china would be unbelievable because of the reopening plus all the measures to help the economy. right? we have seen attack rally in china. that were get people feeling good. >> you would think. if tim were here, he is clearly not. he would say nike is still a north american story.

they did north of $5 billion and only 1.5 billion in china. as much as at the growth engine, this is still a north american story. unless they get their act together in terms of sales and margins here, it's hard to get your arms around the stock. i understand 100% reopening in china without potential growth driver. the stock becomes cheap at 25 times. i don't know if we are there yet. >> we are no longer lockdown in that part of the world is good for supply chain issues. that had been a worry in terms of meeting north american supply and demand. supply chain issues would prevent that from happening. we see a muted level of sales in north america simply because they cannot get the product here. >> i think that will continue the story. i think there will be pockets of some of these situations that ease. sara mentioned china is down 19% year-over-year. she also mentioned there was a national pushback. i think that

is something we might start to see increasingly so. you might see it within apple. >> and starbucks. >> there's a lot of u.s. multinationals that are not out of the woods. i don't think they have a lot of clarity. they don't have the situation in europe and asia the looks anywhere like it did in 2019, before the pandemic. >> yeah. we have breaking news, announcing the first post fed stress test. leslie, what is the latest? >> melissa, broadly speaking, we are seeing firms increase evidence, not much in the way of new buyback plans. one exception which we will get to. just crossing the wire wells fargo increased its dividend to 30 mac since from $0.35 per share thoughts about a 20% hike quarterly dividend as well. the company has, quote, significant capacity to execute on common stock repurchases. we could see more on that fron , perhaps, in the future. morgan stanley announced a plan to increase its quarterly dividend. they have an 11% boost by

morgan stanley. and the board authorized the new $20 billion, multiyear share repurchase program. that is the one exception on the buyback front. inc. of america increased its dividend as well. that was a small increase by about 5% for that dividend. they mentioned they had just renewed their buyback program in october of 2021, and have about $17 billion deployed there. j.p. morgan said that at the end intended to maintain its dividend at $1.00 per share in light of future higher requirements. that goes into the idea of some banks perhaps wanting to hunker down and make sure they are being conservative with their balance sheet. also, j.p. morgan had what is known as a higher capital buffer set by the fed, which does limit their ability to return capital to shareholders. so, we will let you know. the additional firms and what they are reporting.

but interesting so far. we are seeing most firms take it higher news. morgan stanley sing the biggest news among the big banks we follow up about 1.9% right now. >> keep us posted. leslie picker. doesn't make you feel better or worse about what we expect for the economy that j.p. morgan is keeping their dividend pass? >> reporter: i think it doesn't really follow through. we talk about the issue of them having this other comprehensive market down which is when rates move up, the assets are priced lower, which does hit the buffer. i think they have telegraphed this. morgan stanley is interesting, but it's a different kind of financial enterprise. it doesn't have the same loan portfolio the other big banks have. obviously, huge asset management business. i'm happy to see that. i can't help but think though,

it gets in jamie's crawl little bit, everyone else can at least raise their dividend a little bit and he cannot. at four bucks, it's a decent year. >> i think he comes out looking pretty good. if you're the guy that super storm sandy is a possibility, you aise your dividend, it seems reckless to me. but i don't know. guy, what do you think? i think he's watching right now. i think you should call in and talk to karen. that's what's going on here. morgan stanley $20 billion put their market at 120 billion. that's not insignificant. they are saying our stock is to cheat. we will put money to work where we think it makes no sense. three very distinct business sectors they do extremely well in each. morgan stalling, what i heard from leslie is the most interesting analyst. >> how about you? >> i think the banks are interesting to look at. energy, bank, healthcare, i think that is what will do well in this economy. they are showing the strength they have.

sing them come out, they have a good understanding of how the consumer is doing from a different level. seeing them come out with earnings is what we are watching for. >> does this make you feel better about the economy, dan? >> not really. i do think it's going to continue to be a tough pass for the market. we talked about this last week before the stress test. the way the banks were leaning to the downside. the underperformance was troubling. that is saying more about the economy than i think the stock market is. it makes sense to pay attention here. and you say, how is j.p. morgan, the whole group, not raising their dividend at a time where competitors are actually raising buybacks. it goes back to what we talked about. they may have to start taking reserves, credit reserves, again after unlocking them over the last year. i look at morgan and goldman. guy, he brought this up last week. they will trade their way out of this. goldman sachs most definitely. and morgan statelet, when you

think about the companies they have bought of the last couple of years, they seem to be in a comfortable position right now. >> maybe there's a story that can be told, or something gleaned from who is increasing, to dance point. bank of america had a smaller increase. j.p. morgan no dividend increase. maybe these are the models you do not want to be in, and this economic time. >> well, that may be two very different things. do you want to be in them? do want to be? clearly it has not worked so far. i think that i wouldn't read too much into the dividend thing. i think they telegraphed it. if we see rates move lower, they will have the flipside and build additional capital. i think j.p. morgan has laid out very clearly, they are going to spend a lot of money. they will look to do acquisitions. and they are going to, they are going to do buybacks.

i don't see them increasing the dividend analyst they have more clarity. which i do not think they will have in the near two quarters. >> check out energy leaving the market jumping 3%. trying to stage a rebound after a rough couple of weeks. our next guest is the recent drop could be a good sign. what are you looking at? >> reporter: i'm looking at the selloff we have seen in the sector in recent weeks. is telling the bear cycle has now come for the leaders. the one sector that was still holding a near 200 day average. i do see that as a sign, as the leaders surrender, we are closer to the end of the climb rather than the beginning. with that said, the s&p 500 will form a w pattern over the coming months, it will form a double bottom. i think energy needs it as well. the support levels i'm watching comes in at the 200 per day

average versus $67. if you were to overshoot, it gets pretty ugly in the third quarter, $61 does mark the january breakout above the 2020 peak. the sector is still down 21% from its recent high. that long-term trend does indicate, you want to buy these pullbacks. let's keon the best of the best in the sector. stocks went up that can withstand near-term volatility that you want to own for the long-term. the standout for us is conoco phillips. why? is one of the few stocks in the sector that already broke above the 2014 and the 2018 highs. excel was not able to do that. to thus, that's the indication of long-term leadership, and one of the names we are looking for in the pullback in the sector. >> interesting. the only age going from 317 to 220 and six trading days. not commensurate with the move in the commodity or the broader

market. it seems like people are selling first and had questions later. which leads me to believe, in our roulac taylor, a lot of choice in the energy space. does that concern you at all? >> reporter: yeah, i mean it's a sector that had this extreme run-up the year-over-year rate of change, at its highest point at 100%. that year-over-year has only gotten about 60% a handful of times. looking at a century of data, for that sector, going back to the 1930s. some additional time is required in the sector and the market overall. i follow the roadmap even tech coming off the clouds in 2003, financials in 2009 would be an example after the extended decline energy had for number of years. this parabolic rise is historically unprecedented for it to continue at the current pace. which is just to say, expect

the returns to start to slow. pullbacks can be bought, but you won't see the pace of gains continue as it was. >> before you we let you go, give us your take on what we are in or, in terms of market rates. >> reporter: i think the key positive, let's start with the market, is just how washed out it is. nobody likes it. at least the bear ratio of zero point -- that is an argument for the long-term. typically when you see the sediment pendulum swing to peasant, the extreme peasant can linger over the near-term. perhaps an indication it's too late to sell. is it too early to buy what a more conservative approach where you wait for the base building make sense. especially, when you consider midterm seasonals as well. the market should be through the third quarter. it will lead to a q4 upturn.

i think you need rates to talk about. the 10 year testing the tenure high at three point 37. growth stocks will find the floor and that will act as your bottom for the equity market. >> thank you. then, what do you think? you know, we were here couple of years ago. it was june 8th and everyone cannot stop thinking about exxon's new all-time highs broke out about 2014 high. we were rolling our eyes. i know tim has been on this. ride crude oil and buy the dips. when excel leaves, we know chevron and exxon are 40%, it was that 25 percent in a straight line for two weeks. we are at the $70 level. some people think it was a lot of tourism. a lot of people crowding into the stream. it probably lines up pretty well. wouldn't be selling it, especially if you think the

inflationary pressures are persistent. to me, xle could line up as the decent trade. >> wasn't mobile your final trade? >> on june 8th? >> no. i still really like energy trade. alumina, you have a huge supply and demand issue. people are getting out and driving, despite gas prices increasing. i think these are opportunities to be bought. i think it will continue and you should take advantage of that. >> karen, what is the best way, in your portfolio to play inflation, energy or something else? >> that is a great question. to me, i think it's high-tech, high multiple tech names. the higher inflation goes, the more the fed needs to tighten. the correlation between those two, or negative correlation is very strong. short rgb.

>> coming up, housing corrections, that ahead. that is the dark warning from the top economist who said the real estate market is due for a nationwide falling. bitcoin. looking to buy robin hood. neat could that mean when fast moy returns. ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions. accenture. let there be change.

there's a reason comcast business powers more businesses than any other provider. actually, there's a few... comcast business offers the fastest, reliable network... the protection of securityedge™ and the most reliable 5g network. want me to keep going? i can... whether your small business is starting or growing, you need comcast business. technology solutions that put you ahead. get a great offer on internet and security, now with more speed and more bandwidth.

plus find out how to get up to a $650 prepaid card with a qualifying bundle. shares of robin hood giving back late day gains after shutdown reports crypto exchange ftx is in talks to buy the company. in a statement he said, we are excited about robin hood's business prospects with potential ways we could partner with them. i've always been impressed by the business. but the team is built pick that being said, there no active m&a conversations with robin hood. the company has merged the lender last resort in crypto space last week to they provided financing. but company provided alone to voyager digital. crypto winter or maybe crypto opportunity, dan?

>> it looks more like the island of misfit crypto toys. when you think about it, and we said he is impressed with that business. he has built a very good business. you take that personal stake in robin hood. i don't know what's so great about it. we can say the hare, but they had hypergrowth. last year, during the biggest retail frenzy that ever existed in the stock market, they were trading good does coin. that's how they made money. i don't find it particularly interesting. i don't know if he can replicate that if you wanted to do stock trading or whatever the kids call today. >> goldman upgraded the stock from neutral. but they took the price from 11.5 to 9.5. i think this is a stock you trade for opportunities like exactly what you saw today. i don't see the long term thesis. i've been seeing this from day one. you can say it all you want but you know my line picked only thing innovative are two things.

the hair and the name. after that, tell me what they are doing. robin hood is a cool name. you don't think so? that's what make markets. the hair is pretty good. you have to admit those cats have great here. >> oldman is interesting because there are concerns about the business model for robin hood. they are saying even though it has a small percentage in terms of trading, it underscores the notion decompression is on the way. it is here. it will eat away and be pressure at the least on the robin hood business. that gets to guy's point. despite being in the ark innovation fund, maybe there's nothing innovative about this company. what do you think? >> well, i guess the innovation was the way they attracted the meme stock investor. not that there aren't others. there's hundreds of thousands of investors. if you read the report about what happened last january, with games., that was disconcerting.

without that being said, it's interesting to me that the stock is trading at about book value. so that's interesting. granted, they are losing hundreds of millions of dollars. that book will be declining each year. right now, book value, you could buy the entire investor base pick that is intriguing. i get why ftx is interested. they own 7.5%. i think they should be thinking about it. you know, is there something to do? if they are thinking about it, others have to be thinking about it as well. so, there is smoke there. i don't know if there is fire, or if the business is burning up. if that's what the smoke and fire about. i'm not really sure. but i do think it's intriguing. >> yeah, i think i do have concerns from the long-term prospect. ultimately, this was noted in the note from goldman, they

have no recurring revenue. i think they will need it from a long terms than pride. they are losing customers. is closed to 2 million from a year ago today. the waiver retail investors drink covid. if they are not able to capture the base again, or somehow get other customers, i don't see how they will do that. it's hard to look at as a long term opportunity. >> we are just getting started here on fast money. here's what's coming up next. housing hardships, a top economist calling for a coast- to-coast correction in the housing market. his advice to first-time homebuyers, next. plus, sweet on semis. options traders dipping into the chip states, is one name lights that. could this be a qualle 50 trade? the deilahd.tas ea you are watching fast money live from the nasdaq site in time square. we are back, right after this.

reliq health is a growing global company offering innovative digital health and virtual care solutions. with a rapidly expanding base of over 120 us clients, reliq expects to uplist to the nasdaq this year. reliq health technologies

welcome back to fast money. home sales rising a muster percentage rise last month versus april. the northeast up 15% pick there bro figure down 14% compared to the same time last year. next guess warns the housing correction is dead ahead. mark laney is a chief economist at moody's analytics. great to have you with us. >> thank you, liz up. >> you are calling for a correction and not a crash. what prevents us from seeing a crash. is it the underwriting? is a lot different or better? >> that is certainly part of it. the score is very high. it's much less likely will see defaults or as many defaults. you need distressed sales to get a crash. also, the market itself is very

tight. the vacancy rate across housing stock is at a record low or close to. that's a strong contrast prior to the bust over a decade ago when we were rolling into many homes. lots of differences between now and then. not a crash, that a correction. >> receive the tenure yield sort of copout, at least in the short term, at 3.75%, i'm not asking you to play forecaster. the impact your call for some sort of a correction? >> i do that for a living. you can do that all day long. we have all kinds of forecasts. the 30 year fixed-rate loan, we are seeing around 6%. you know, that is high in a problem for first-time homebuyers and trade up buyers. the mortgage payment today to buy a home is much higher, several health -- higher. the

loss of affordability is behind the correction i see. if we stay around 6%, i think the market will adjust, and we did the correction. if it goes higher than that, we will get a much more significant pullback in the housing market. weaker home sales, and home sales. 6% we can digest. it won't be comfortable, but we can digest it. that is consistent with the correction. >> the 14th of june, jerome powell, basically paraphrasing a little bit, worn millennials, now might not be the best time to e buying a home. i mean, it seems to me, the fed is doing everything they can to throw some serious cold water and what is been an extraordinary housing market. you got to listen to them, no? i miss that. that is interesting. yeah, the fed is working really hard to slow the economy growth rate so we don't blow past and exacerbate inflationary pressures. higher rates, the most rate

sensitive sector housing, will field the first of that, and the first effects of that. we are seeing that. this is exactly what the fed would want to see. >> it is karen. thank you for coming on. i have a question about, we are seeing big corporate interest in housing. the blackstone's of the world buying houses and making them available for rent. are they done with that now the rates of moved up? maybe the market is topped out on prices. you think they are still there because the value proposition of high rent is here for a while? >> i think they are here to stay. this is a business model, you know, that works, for the longer run. there's a lot of capital sitting out there. the institutional investors that raise a lot of funds, but they will deploy. now, i suspect they will pause here. i don't think they will sell. they are long-term investors. they may not buy, they may wait

and see how things shake out. that probably makes sense. i do expect house prices in markets where they are most active to experience some price decline. it would make sense for them to pause. i think these are long-term partners. going back to melissa's first question, is another reason why there will not be a crash. you have investors in there that are long-term investors. they are not looking for a quick buck. this is a business model. >> thank you for joining us. i appreciate it. >> any time. >> marc santia committees. >> last week, karen, hugh bring up the point of big investors. starbucks said it was looking to sell two portfolios. we got thinking about this problem, if it does become a problem, of investors selling those homes, and what that is to the market. >> yeah, they have been the ballast. we didn't need a ballast during the pandemic, because there were

people employed in you could work from anywhere. i am concerned that big corporate presence, the clients. and that will tilt the supply demand dynamic, and therefore prices more. >> we've got some more to get to on bank capital plan. let's get to leslie picker for the latest. leslie quick >> reporter: as expected, wall street we are seeing a diversions between banks that are more wall street investment banking sensitive. they are returning more capital to shareholders than those that are more commercial banks sensitive. those that take deposits and make loans have much more business in that era. for example, goldman sachs, they came out and said they plan a 25% boost to their dividend to about 2.50 per share that stock is up 1.7% on that news. kind of matching what we saw morgan stanley pick they boosted their dividend by 11% and authorized the new $20 billion buyback program

beginning in q3. on the flipside, you have citigroup, j.p. morgan and bankamerica, which had uted plans. citigroup sang moments ago, it intends to maintain its current dividend of $0.51 per share in the third quarter. that is similar to what j.p. morgan is doing, maintaining its dividend of $1.00 per share. bank of america hiked its dividend by about 5%, which is marginal compared to those invested big plans. the one exception of these announcement is wells fargo. they did decide to hike their dividend to buy about 20%. and the company noted it had significant pacitti to execute on common stock purchases. this was ecstatic did on the fed test results that wells fargo would be an upside surprise among commercial banks, and the others could see more muted plans in light of the stress test we saw last week. >> leslie picker, thank you.

to the point you were making before, in terms of the business model allowing certain kinds of banks to return capital. >> it will be a theme that will play out for the balance of this year. i don't find anything telling. there's nothing fundamentally these banks are telling you over the last few months. there's nothing that price action our stocks are telling you. they are saying they should be bought for a move. maybe you get 5% or 10% rally, but it seems like we are market words one step forward and two steps back. especially, the sectors that don't have a lot of great visibility right now. one last thing, what mark just said, he think it's a great thing the buyer of last resort those homes until they are not there. to your point, until we have to sell them. ut me, if blackstone is trading at $70, down from 148 or something like that. i'm just saying, to me, i think it's all wrapped up into one big mess if things continue to go south for the economy. >> you brought up blackstone.

we had them on a while ago, jay- z the original as you know. he talked about what dan pushed back on. the fact joe things real estate will hold. it's fine by the way. because they should. is no coincidence blackstone has gone from 147 down to 92 -ish. the housing market got squishy picket think rates are not going higher from here, and this housing market can along, blackstone is screaming by. a surgeon big pharma, which stocks are was tapping into? are traitors have their . ahead. structure populace, one semi bucking tech trends. more on that action when fast money returns.

welcome back to fast money pick qualcomm insuring the green. winning a legal battle after the supreme court declined apple's bid to revise its patent industry. option traders the think they might be bigger gains ahead. mike has the action. >> we fell 1.6 times calls up pacing puts by 2 to 1. the 130

strike call you saw over 9600 of those trading for about a dollar 60 a contract pick that suggest this option traders believe there's at least 3.5% upside in qualcomm by the end of this week compared to the closing price. >> thanks, mike. guy? we were just talking about qualcomm. >> on cnbc we talked about it last week. the stock i want to say it was trading at 118-ish. this has been a round-trip on valuation. less than 10 times forward earnings. it is down since. i still think there's room in qualcomm. the report they do about july 27 pick stay with this one. >> tune into the full shoe friday at 5:30 eastern time. coming up, tarmac troubles. companies continue to/lights ahead of the july 4th weekend. we will get answers on the first

number of stocks with all-time highs. which names are withholding. we're watching nikshese ar declined by more than 2%. we get the latest on the conference call, when we come back. stay tuned. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web. because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade

another check on shares of nike. they have leg lower in the last few minutes. now down by more than 3% pick thing apart, logistics costs continue to dampen near-term profitability north america. they're talking about margins, which seems to be disappointing. karen, what you make of this all? >> there's one thing in the release that talked about inventory obsolescence reserves. which sounds like they will over the price. it seemed primarily focused in greater china. but this, this is problematic pick last year, what was so great for all the retailers was, they were able to price -- without any discounts at all. the margins were big. if nike is having this problem,

it's not hard to imagine others will as well. >> this seems like a very low quality corner. it was trading up based on the fact it wasn't a disaster. the more information that comes out, the favorable tax rate, writing down pick revenue expert patients, this could be a moving target. is really important as we think about what guidance. there are so many inputs that seem to be headwinds. companies will try to eke it out picked is no reason to be a hero. >> cornell wants to be a hero. it was talking about how things were great in the back half of the year. the halloween partying and all that. who do you believe? >> it depends on the area. ultimately, a lot of the retailers will get hit harder. you are seeing pricing issues continue to be a problem for them. the question is, how long-term. the longer-term buyer can take advantage of this. some will affect in the shorter- term. pursue with caution. >> karen, are you worried about

lulu having the same issues? >> lulu is much more address entered by a lot. then nike. not as much. the one thing lulu, the pe is higher. target pressure with the pe is significantly lower. is it low enough? i hope so. it is 12, 13, versus nike it 24.5 and lulu at 30. >> eli lilly, touching new all- time highs. the excel the continue to recoup losses in today's session. down 2% this month. can pharma keep up the gain? >> yes. we do the show and a few minutes ago and 09 you recall the slogan we had on tuesday when merck was trading eight 4.5. marcus tucci. look at it today, it should trade north of 95.

all the stocks are in play. valuations are compelling without question. the m&a activity. look at amgen which is too cheap on valuation. lily has been a name that continues to make all-time highs. bristol-myers breaking up for the first time in a year. good for k fine. stay with big cap pharma. >> i agree. this is a wonderful opportunity. i think this is something, to your point, of the valuation, regardless of where we are going. if we get through this period without a recession, these can do well. in a recession, they tend to do well either way. it is a good play. i do like abbvie and myrrh. have some good drugs that will continue improve the revenue. it's a good play. >> karen, do you have something? i have a question for guy. thank you for remembering a good one. well merck trade, they traded up to a high, all-time high.

and then closed lower than that. does that trouble you? great point. the last time we traded, i think north of 90, i think it was a few weeks ago we had a pullback. it happened again six months ago were traded north of 80 and pulled back to 64. you have seen fits and starts for that question. i happen to think the franchise, to courtney's point, is undervalued. m&a activity. it will be pretty interesting. to stay the course in this name. coming up, jetblue upping the offer for spirit ireland's. we have much more, fast money in two.

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile.

flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. we got a new development in the m&a battle for spirit airlines. let's get to phil lebeau for the latest. jetblue is back for another offer for spirit airlines to consider after they rejected jetblue on friday night, picking frontier instead. here's the new offer from jetblue. a cigarette, three things to keep in mind. they are now offering an

accelerated payment of 250 per share, once shareholders approve it. up previously with a freeman of adult 50 per share. also the reverse breakup fee to $400 million. previously was $350 million. they are also offering what they are calling, and accelerated monthly picking, shareholder benefit. $0.10 per share starting in january 23 all the way through until the deal gets formally approved by regulators. that's the latest jetblue offer. will be enough to top what frontier is offered, which was enough for spirit airlines to say yes? we talked with the frontier ceo. that's what he had to say. >> from a consideration perspective, the spirit deal with frontier is 50 to $61 in value for shareholders. and abbe lowell, given it's a dead end from the antitrust

perspective, all you are getting is reverse termination fees. three dollars versus 50 or 60. that simple math. >> and maybe simple math to him, whether or not this now makes spirit once again have to say okay, we will take this into consideration. thursday is the day they vote to approve the latest offer from frontier. it's not a vote of i like it more than frontier, it is simply a straight do you want to go with the frontier bid or not? we will see whether not spirit in frontier of anything to say about the latest offer from jetblue. back to you. >> the stock moving in the after-hours session no surprise. this tells you that maybe frontier will not end up being the winner in all this. that stock is rising also. >> yeah, i see the short covering there. this is a crazy deal. airline deals are so difficult.

even though i don't describe this anymore. it's intriguing to watch. if you're the proxy solicitor, your calling the big shareholder see what are you going to do? if they get the sense they are going to turn down the front your deal, they will have to delete the meeting again. >> what do you think about this action? >> spirit airlines should be trading better than it is. right? i mean significantly better like north of 20 better. it is meandering 23.5. something doesn't make sense. to karen's point about risk arbitrage. i would take a shot on spirit here. up next, final trades. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description.

visit indeed.com/hire this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

time for the final trade. karen finerman? >> as guys brought up oh h has been terrible. i do think we would see convergence of oil. so long i oh. >> wow i agree with karen. i like the large energy sector pick oh no.

i will take the ex-elliott 7. courtney? >> the airlines have the opportunity. i look at the delta balance sheet. >> i want the fans to know, before the fans, they i knew that my job is not to entertain you but educate them teach you