for the next fed meeting. then we will see exactly what happens with the economy. we'll see if we get any confidence on a recession call. assuming are we talking about hurricanes again tomorrow? >> [ laughter ] yes, we might be. the expense cuts will be another thing. >> will watch for that. we have so much on our plate. thinking about this, and i want to thank you for your information. bast inflation is still running at the highest in 40 years. the president says everything is in play. how do you chase us environment? the chairwoman is in the money call, or on the money call. twitter is told to continue the buyout with elon musk. where does the soap opera go from here? we have an industrial supply company, with bank earnings, and the rent is too high.

this is "fast money" . we start off with the inflation, 41 years in the making. consumer prices rise more than 9% in june. at the fastest pace since 1980. the stock market was down a bit after the report. the moving yield was more pronounced. the spread hit the lowest level since 2000. does all this open the door for more aggressive fed? what will the market reaction be? the market reaction today was practically nothing.>> listen, there was a lot of volatility under the hood. the initial reaction was the stock market going straight down. when you look at the yields, prior to the print, we had the 10 year shooting up to 3.3. everything moderated. we saw some green on the major indices.

i think earnings will become the real story here. we heard them talking about the corporations, what they say about how the inflation is impacting them. we know the five year break evens on inflation are coming down hard. maybe this is just a moment in time. people are explaining this away, it is backward looking data. it is impacting households. we will see if it is impacting corporate spending. when you think about how much further in advance, how long does it take for the rate hikes to work their way to the economy? if she is saying that everything is on the table, all of a sudden, youse have to have a different discussion. we are seeing lower prices, because we've not had the adjustment to their earnings expectations for this year. it is expected to be high. >> what is your take on the market action x

>> define market volatility. we have talked about this for months. now everybody is jumping on the bandwagon. dan said 303. i think it got up to 307. he did close out on 2.9%. you are talking about a 17 point move. it should not move like that in a month. that is remarkable. i think the 10 year yield will go down. it is counterintuitively. things are slowing down. the yields going lower in this environment is not a bullish signal. i was shocked at 9.1%. that was not on my bingo card. what is more shocking is the people that believe that these geniuses at the federal reserve can navigate their way through this. at the bottom line is, there is no shot of that happening. >> is there something in the markets that could maybe show is a reflection on this?

imagine the reaction is to go down, but will it stay down if the bleep really is that there is a recession in the making, and we are seeing it in the bond market?>> it is tricky. on the one hand, this is a hot number. the fed needs to do something. if they are aggressive, we will see that recession and then they can back off. >> that is good. in the meantime, it is bad. the idea of, are we at peak inflation? is this really number off? i buy into that. i think we have seen commodities rollover, not all, but some. we have seen housing prices come up. i think we will see some aftereffects of the excess inventory, and things coming down. i believe gas prices will come down. i think we may have seen the top print. that does not get the fat off the hook. even though the print comes down, it is an enormous print, relative where we were a year ago.

i think the fed should be aggressive. i don't think they are done. >> if you are a consumer paying $4.70 at the pump, versus five dollars, it is still painful. >> it is the right direction, but it does speak to demand and the burden it puts on the household. we have all come together, you have heard people speaking about peak inflation for some time. what jumps out to me, before was housing, then with gasoline prices. we are seeing some of that stuff abate. karen makes a point, we have seen the commodity complex come in. you don't expect to see that continue. what about rent prices and housing? maybe it is gasoline prices. what about agriculture and food prices? we are seeing despotic additions, now we see conditions of all things rising. i do expect the fed to continue to be aggressive. i think some people are looking to be so aggressive that they

can pivot. i'm not sure i would hang my hat on that yet. >> if you sign a lease for at least a year, things are coming down, you may not see it for some time. these things are sticky. we did hear from pepsico when they reported earlier this week, 12% increases in price on average across its portfolio, without any dent in demand. people are paying for it. at some point, you say, no more doritos, they are to ask vince if. >> i said no more doritos, 41 years ago, when peak inflation hit when i was 35 years old. my doctor told me i had to cut them out. what it comes down to is this, all the things you said, they don't go down in a straight line. they moderate, clearly. they will not revert that quickly. maybe i'm wrong, i don't know, but the federal reserve is 3.5 years behind the curve on this one.

they will have to be aggressive, regardless of whether or not commodities come down. it has not come down nearly enough. we talk about it cooling up quickly. this might be the low in the short term. we might see a rebound. they might be purchasing on the back of it. goldman sachs still thinks $140 is in the card. is that we did not mention the u.s. dollar. you see other close today. we know 50% of that is the euro. we know why the euro is weak. it hit parity for the first time in 20 years. you think about the u.s. multinationals. pepsi sells a lot of goods outside of the u.s. they have had to raise prices to absorb the strength in the dollar. this is something we will hear a whole heck of a lot of. we won't have companies that are able to raise prices the way pepsi did. it is important to remember that these are the lower end

prices. they could work at this point of the cycle here. that will not work for the higher-end products. again, listen, corporate earnings, what are the major impacts? we heard about margins. we talked about margins that were peak. many companies are still trading at multiples that are not reflective of the broad market. microsoft will be going on next week. on thursday, when they report, they trade 24 times next year. i think there are a whole host of things. we are early on this. until we see that we are in a recession, it is issued first and ask questions later in the market. to make that is interesting, with a hot number, and the fed having called out the housing industry, something they need to cool down, it was surprising that all of the homebuilders were up.

home depot and lowes were up. i don't know people are looking past that. that is curious to me. >> if rates stay low, things are more affordable. it's been a rates will be higher with a hot inflation. >> that is not what we have seen in the bond market. >> [ indiscernible - multiple speakers ] >> all homebuilders were down. they went down 2.5%. that does not feel like a fundamental move. when you see the price action we saw today, houses are selling at preopening. the fact that they just bought an hour into it, you look at this, in flatline for 1030. that seems unnatural. i think this earnings season, when we hear the inability for these companies to articulate what the visibility is, given all of the headwinds, that is the thing that breaks us out of

the range. at least with the s&p 500, we talk about the rallies here getting weaker and weaker. i don't have a lot of power. >> there is a case to me that it is strong. it will come down the wages in the housing market. until those two things right, and we have seen persistent strength in both, i don't see the fed changing course at all. i do hear dan's point about the price action. what we have seen, early on, we have rotation into the things that have most underperformed. these stocks have killed. i'm not surprised to see people picking and choosing, particularly when you see such volatility in the rate market. these are correlated. i can understand how you see people stepping in there. i don't think it continues. i think it is consistent with the type of trading we have

seen. >> what i was up 20% in the last month. it had one heck of a move. you have your rotation. think about that, the s&p 500 had a high at 9.5%. these names have gotten destroyed, they had a massive rally. that is really important to factor in. is to make the next guest is delivering a grim view of inflation. it is great to see you. >> think about me. just to make you think 100 basis points is in the cards for july. what sort of environment are we entering, in terms of the economy at this point with 100 basis points on the table? >> the market is at a 70% chance that the federal go 100. it was five before this morning. it is pricing in another 75 on top of that 100 at the september meeting. you are looking at 3.5 by the middle of september. the reason is, the federal reserve has made it abundantly clear, job one, job two, job

three, bring inflation down. if the economy slipped into recession, and the inverted yield curve signals that, or the stock market struggles, and struggles. they will focus on inflation. that is their job. right now, we are in a situation where good news is bad news. when you get a strong payroll reports, when you get any strength in any of the numbers, it opens the fed up for rate hikes. we have 100 basis points. it wasn't just the cpi number, it was 373,000 jobs on friday that open the door for that. >> every once in a while, in the old days, you see the emergency rate cuts between meetings. it seems to me, 9.1 is a bit of an emergency situation. why don't they just come out and do it? what is the point of waiting until the meeting? >> i think it is optics. they don't want to look like

they are panicking. you could argue, what is 100 basis points? >> let me push back, i hear you, they are long past optics. the days of them and optics are way gone. that ship has sailed. if they're worried about optics, they are worried about the wrong thing, they have zero credibility left. sorry to interrupt you. >> you are absolutely right. i would say, what's the difference between an inter- meeting move and a 100 basis point hike? it portrays the same thing. you are right, they are so far behind the curve, every rate hike campaign has ended with a positive yield. interest rates above the inflation rate. inflation will not stay at 9%. will not go down to 3%. it might go to five or six. every rate hike campaign will have to end with a positive rate. they have a long way to go. that is why the 100 basis points is coming.

i think the market is struggling. i will give you a statistic, [ indiscernible ] back to 1928, that will tie the record for the least number of up week. >> you say stagflation is a real possibility. >> the odds of stagflation are probably media. let's define stagflation , 9% inflation, low growth, the alanna fed says we might see another negative number. this is another consecutive negative number. if it does not go negative, it will be barely positive. that is your definition of stagflation. the comforting news of stagflation, this is a situation that does not last long. it will last a or two, or several months. it will not go on for years and years. it will be a challenging environment.

it will be challenging for the fed. they will be pulled and pulled by two different things. they could raise rates 100 basis points on july 27. it could be 75, i think will be 100. the next day is gdp. it could be negative, or under 1%. he talked about optics, how about that? raise the rates in 100 basis points that we get a negative gdp report. they are in a difficult position. when they look through it all, the focus will be on inflation. that will spell trouble for markets. the fed is not their friend, the fed is their enemy until this inflation thing goes away. >> stagflation is short-lived , what is the other side of stagflation? is it economic growth? >> it can be. what stagflation should do, should break the back of inflation. we should then start to see the economy. i have argued, we are in a post-

pandemic economy. that means, we had to stop thinking about 2019 returning, it is not. we have a different economy. once we start understanding that, and restructure the economy for the pandemic economy, we can get out of this. we spent too much time fighting whether or not there is a post pandemic economy. a lot of the real estate guys in manhattan are saying, you way, everybody is coming back. no they are not. as soon as we figure out why they are not, and we move forward, the sooner we get to the post-pandemic economy and we can start seeing normality return to the markets, or what we think is normality. >> this is a one-word answer, and as a traitor says, what is better for the stock market? stagflation or recession? >> recession. >> thank you. next in question to you, karen? >> recession. is the max same. >> guy? >> recession. >> understand the question.

[ laughter ]>> we will have a recession, and it will be on the point of stagflation. as to the markets trade better with recession or stagflation? >> it has to be a deep recession. we need things to go up to 4%. you talk about housing, when you see real data suggesting that the housing market has a broken, the fever was in. we have seen a mania break over the last year. we need to see that. we need to see unemployment pick up. you can call we want, it will feel like crap either way. the stock market will not like it. the stock market bottom is lower than here. we have talked about this for months. >> i went to dan last because i knew we would not answer. he is just not that way. coming up, we have more on the hot inflation print, and what sector is paying attention to. we would dig into rapidly rising rental prices. now it is twitter's turn to give elon musk the bird.

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welcome back to 1023. twitter shares are higher after the company seems elon musk. if you watch the show last night, he heard the chairwoman say that twitter made a strong argument. i before, she said she purchased options expecting twitter to rise. this morning, karen tweeted that she exited half the long- haul position. karen, nice trade so far. where are you now? >> i sold about two thirds. they expire this week and next week. i saw that this would happen. this is why i'm in it. i mostly out. it is nice to talk about one that worked well. it read rate, i thought. now i think, all right, what is next? next week, we have two possible events. we have earnings, which i said will be bad. however, support remember, it does not matter how bad the earnings are, the merger agreement is what it is.

this company said, look, you flight on your original deal. we don't have a deal, where you flake. may trade down. if it does, i will use it as a chance to purchase food stock. the only thing that matters is the outcome of the settlement talks with a lawsuit. that is dependent on the agreement and sell. there was a very odd wall street journal opinion piece. >> i read that. they said it looks like a loser. cynic they went through on twitter losing on every front. it was flimsy. it was amazing to me. it was so odd. it made me think, wow, elon musk is a very powerful person. you probably got somebody to write that. that is my guess, i don't know. it seemed ridiculous. i don't know. if you read it, it is so

flimsy. so if you bought the stock, after it fell on earnings, the long-term game is that you think it actually goes through. >> s, no matter how bad, does not change the merger agreement. that is the most relevant. that is the only relevant thing. >> being an options guy, i like to trade. i like the fact that we hear people say this, i like this company, building this option position. stomach it is a short-term trade. that's what you use options for. they say, look, now that the thesis here, based on an outcome, i will go by the stock. i tell you what, if you purchase long-term options, volatility will collapse. that's not what you want to own. i like this is a fundamental traitor, using options in the correct way. i think too many retail traders don't do it. kudos. >> i was skeptical at the time.

i said listen, the probability of these being in the money, it was low. it was about 25% to 30%. i was in, unless you know, you always say, read the fine print. if you read this, and you made an assessment about that. you are willing to risk a certain amount. from here on out, the timing of these events will get harder. you thought, they're going to file a lawsuit, they would do it soon. from here on out, we don't know what the delaware court would you. it's like you know that they will respond, and there is earnings. >> the timeline is so unknown. >> exactly. >> are you worried about owning the stock? maybe there is a resolution for a $1 billion breakup fee. >> is a worst-case scenario. there is no way they agreed to the worst case scenario right out of the gate. >> is not even close. they think they have a deal at

$54 billion. they have a good shot at that. think of louis vuitton and tiffany. could they cut a deal and do something for less? that could happen. that would not surprise me at all. if you own the stock from here, you are staying happy. >> we have a lot more "fast money" to come. this is what is up next. inflation is running red-hot, as consumers watch prices take up and up. how sticky are the rising home prices? we have the details, ahead. plus, bank earnings, financial kickoff tomorrow. which tank should you bet on? you are watching "fast money", live from the nasdaq in times square. we are back, right after this.

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welcome back to "fast money", consumer prices have been rising. the number was lower, one major component was stubbornly high, rent prices. they were up 0.2. housing is a major component of the metric. what is is tell us? with the [ indiscernible ] andy, discreet have you with us. how should we think about the stickiness of rent, and what the lag is? they are doing everything to make housing more affordable, and break the sector, how long does it take to translate when it comes to rent prices? >> there are couple components we can look at the rent, you

are seeing carryover from affordability. you look at housing affordability, it's the lowest it has been since the 1980s. the folks that are being priced out of the purchase market are moving into the rent market. i think you will see more of an upper movement. that being said, it's like a runaway freight train. we saw the home price growth that record highs. it will take some time. we saw the annual home price growth fall the most significant degree since 2006. at that pace, it will take time to get back to normal levels. as mike how much is apt to come down? how do we think about what the lag time is? when should we see the results in rent? >> i think we are already seeing it to some degree, especially when you look at the purchase price of housing. you look at home prices, we are seeing those coming into play. as we move through the summer months, the lease months in the market, as you get into that seasonal low, will see the numbers coming down.

>> sometimes you see the market overheating, or not overheating, but have a great return. you start to see more product, right? how long will it take, with the companies that are too afraid to build into a bubble if everyone were building? >> we are seeing that. we have seen growth in recent years. if you take a long-term view of the housing market, we have under built since 2006. this is not a situation, think building will help. it will not get us out of the trap wherein from the inventory perspective. we are seeing some growth with inventory the market. may and june saw the largest inventory growth we have seen over the last year. we are moving in the right direction. it is the demand side falling down. we are still seeing below pre- pandemic levels of inventory hitting the market. the slowdown on the purchase side allowing the inventory to grow. we have some demanded to be

filled. this is not something we will build up in the near term. i think the inventory growth we will see is from pullback on demand. >> i agree, i think will take longer than people think. i was surprised, it was june 14, i think, as jerome powell was walking off the stage, he basically said, oh, and i am paraphrasing, for any of you millennials thinking about buying a home, think again. karen made the point earlier, they are doing everything they possibly can to cool the housing market down. i think it will be futile. >> i think it will work, it will just take longer than x acted. it will be a very difficult, soft landing for the market. we saw this play out in the early 1980s when the fed ratcheted up rates to co-opt the housing market. i think it is more challenging this time around, because of

how far out in front of incomes home prices have been running. home prices are up 60% over 5 years, income is up 15%. back in 80s, the incomes up with home prices. we are in a different environment. the average home is worth six times the income. it is a lot tougher to navigate the water of a smooth landing in the housing market this time around. i think they will be effective at pulling it down. using the early stages. but there is a lag in the market. will see some of the strongest cooling later this year. you will not see the fruits of the interest rate increases for a few months when you track the data. >> strong cooling sounds like a euphemism. what does that mean? what does a non-soft landing mean for the housing market? >> what rate will break the housing market to the feds satisfaction? >> if you triangulate income

rates and home prices, to get back to the normal level of affordability, it would take mortgage rates at 3% right now. there is a lot more of a challenge this time. is not just interest rates driving on a portability like it was in 80s. it is a 2% price growth and 50% interest rates. simple interest rate pullback may not solve the problem if the fed reverses course, tries to initiate a soft landing. there is some risk that the last three times we sought prices at this level, there is not been national price declines. there have been market set of seen price pullbacks. we are seeing early signs of that today. we are getting some indicators of which of the markets it could be, by the deceleration we saw the market over the last month and a half. >> andy, we will leave it there, thank you so much. >> that is eddie walden. >> look at how homebuilders are reacting. what is your take on this? >> couldn't hear what he said

earlier. i think he will likely be right. i would take the flyer on homebuilders, only because i think things will go lower. i think these are so correlated with the 10 year yield. we have an unexplainable rally. they will understand that they will come under pressure toward the end of the year. >> the extrapolation of all of this is that if home prices remain high and rent is high, the headline numbers will be high. the pi will remain high, because it is 2/5 of the core. >> i'm ready to explode. if we are talking about whether the housing market will come in, and we look at the homebuilder stocks that are down 40%, despite the fact they rallied. it would be a near possibility to not see the housing market come in, the way people are

pricing these stocks. does that make sense? do you see what i'm saying? we have not seen the housing market leaking. what is going on? they cannot just be about interest rates why homebuilding started trading the way they are. homebuilders had told us a lot of bad news. we are not seen home values come in. if you want to extrapolate that, i think that will happen. we will have the housing market. it will come in. with the negative wealth effect working through the entire economy, as the stock market remains weak. unemployment is not picked up yet. there is a ticking time bomb here. the way the banks are acting, the one to do the lending, and the way the homebuilders are acting, they are telling you this. >> thank you. >> do you agree? >> no, she doesn't. >> my gut reaction is always to disagree with dan.

i hear what you are saying. we are in the market, where the sellers is in, the guy got this much six months ago. i'm hanging on. that will start to change. prices will come down. there is a big disconnect. there is a lot of room for homebuilders and housing prices to come down. >> know? >> what they have not heard is apply. so why is so much different now. >> i am with you on that. >> there will be softness, but i don't think we are revisiting the gsa. >> coming up, financial foreshadowing, could enpectations .2 rep results? spd a penny wise a dollar foolish, has the currency been stretched to extreme? we could be pointing to trouble ahead. we have the details when "fast money" returns.

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welcome back to 23. we are kicking off big bank earnings. we have important factors when the results cross. we have a headline profit. that is the number that will likely fall sharply.

when the loan loss reserves that is expected to increase, adding cash reserves as economic conditions worsen. it would be prepared. the other factor is capital markets revenue. we expected to be lower as well. the ipo market has all but dried up. lastly, the mortgage business is expected to drop as high interest rates when home loan demand. with this in play, what names do you like going into earnings? >> what do you say? >> i think goldman sachs, it >> to this level. i think right around book value, the quarter will be extraordinary, mostly in trading revenues. they will not be fully rewarded for. i think they will be rewarded to a certain degree. i think goldman sachs can rally. it is amazing the j.p. morgan is within a whisper of a 52 week low. that report is strong.

my sense is that jeremy diamond will back off the rhetoric, allowing the stock to get back into the low one 20s or so. >> for me, bank of america is my biggest position. j.p. morgan is likely next. then morgan stanley after that. you know, clearly, going into this earnings season, we are near the low. i like that set up. in net interest income will be up. that is important. if loan growth is up, that is a better margin. we will not see as much of a tailwind from buybacks. we will also see the other comprehensive income hit. the fixed income they own will be marked down due to the right move. that is all noise. what is really important is, what is the outlook for the economy? that is what we want to hear. we want to see what they have to say. >> i was able to see what jimmy

has to say. >> there is a pesky little thing called the inverted yield curve, which i know you have explained to us many times. it does not necessarily matter that much to bank earnings. at the same time, they get caught up in terms of the trade on how the stocks trade with the inverted yield curve.>> it does speak to the interest markets. that is not the full story. if you are borrowing short and lending long, the inverted yield curve is not your friend. the sentiment around the names is so negative. i would not be surprised of anything. i'm not sure it is sustainable. between those in the interest margins, and what the credit markdown provisions are, that is all i need to know to understand what people who have a pulse on the economy and consumers inc. about the state of the consumer going forward. forget the lagging indicators, if you see the ratchet up here, to very clearly. ischemic we will.

we will. that is telling us more. >> sticking with financials, one trader is betting that things will come down for the banks. they are risking $45 million that is the case. that is exactly right, melissa, especially with anchor earnings coming up tomorrow. we have seen xlf trading. one strategy we have seen a lot of the past few weeks have been traders harvesting the implied volatility to get long. one example of this trade is a traitor that sold 15,500 contracts in here, collecting $.40. that was a little more than 1% of the value. that is an obligation of $45 million to purchase this etf by the august expiration if it is below $29. that is a sizable bet that we are near the bottom, and

potentially in the market overall. >> thank you for that, tune into the full show on friday. coming up, the million-dollar question, has the greenback, too far too fast? carter helps us with the technicals, next. a check out the fast lump. we tell you why investors were fast. we have the details in 23, when we return. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed.

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, welcome back to "fast money". the dollar surged to a 20 year high on the back of the red hot cpi read. they do believe the dollar may have climbed too far, too fast. that's right, on a short term basis, this is way overdone. we saw the price action today in the market. what was the initial reaction to the cpi, the dollar reversed. we know rates reversed and gold reversed, and the s&p reverse. was a good comparative charts.

these are the same chart, different time frames. the first one is 2 years. we are comparing the dollar to the euro. basically, this spread is one of the wider spreads on record, in terms of a short-term set up. on a two year basis, the arrows are drawn like that. let's look at the five-year comparative. we have a similar thing. with the same circumstance. we are looking for a bounce in the euro. he gives back on the dollar. let's go further, this is 10 years. this spread is not quite as extreme. my thinking is, we get some convergence. it is always about what your time frames are. look at this one. how about 20? now what? they are dead even. is that good or bad? is it overdone? long-term, structurally, the dollar could go much higher. tactically, it is overdone.

we have 30 years. let's do all data. we go back to 1975. did it stretch? it is not as stressed as that. the point is, on a tactical basis, you want to do what no one wants to do, which is to trim the gains of the dollar and nibble on the euro. >> doesn't mean that commodities will go higher? >> i don't think those things have a relationship on a short term basis. obviously, we know the dollar strength has hurt oil. it did not hurt oil until it did. here and now, this is about the dollar being stretched. they make it is good to see you, carter. i know you are always with carter, what you think of that chart? [ laughter ]>> iso dig carter. i love what he is saying. he says, over a 20 year 30 year

period, the dollar has not stretched it all. where you can trade it, it is stretched. i agree. the dollar can get sold off here. i think rates can go lower from here. we could see a short-term bounce in the broader market. that bounce needs to be sold. it will not be over the next couple weeks, when it comes to full fruition. that is a great word that i use from time to time. >> there is an argument to be had, what we are seeing on the 10 year is sovereign entities purchasing the dollar due to the fears of eu weakness. i'm hesitant to step in front of the dollar that is a runaway train. i could look at gld. this one is up and to the right. carter's charts are above reproach. it is tough to step in front of the supply demand situation

like that, given where we are with a background in macroeconomic environments. >> is tough to time that. we are talking fast on fast. we share the fast thing opng. wel ll you about the supply companies, and what they say about demand. do not go anywhere. we are back in two minutes.

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you have about skill in the manufacturing sector, [ indiscernible ] went into a freefall after they said they see a slowing demand in may and june. the stock dropped 6%, the last lots of it was in 2020. dan flagged this. >> again, if you look at every cycle, i know about this company, because i don't follow it or trade it. remember it in the recession 20 years ago, a more experienced person them he said watch these guys. when you see this headline, and you see a stock with big volume, based on the sort of guidance, you want to pay attention and think about, who are they are customers? who are customers that feed into these markets?

you can make a mistake if you just discount this, because you did not think it was that important of a company. >> i agree with dan. look into it, they are in so many parts of businesses, from energy to transportation, to all kinds of things. this is not great for them. i find myself agreeing with dan. it is still not cheap. >> i'm sure we will both be right. >> it is not cheap. is weeks to the re-rotation where same. first, it was both, into economically sensitive. and we talked about, what does value mean? value does not necessarily mean economically sensitive. i think we will continue to see the divergence. economically sensitive does not necessarily mean value. in this case, there was no value to be had. >> guy? >> yes, i brought up service the other day.

i would submit, and dad would say this as well, they are not the end-all or be all, but they are the catfish. he's right bring it up. it is concerning. if you read through what they said, inflation is a concern, supplies are a concern. the inability to move product is a concern. they are nothenlon t oy es that will say that. it's the same with that service now is impacting microsoft, and others. well done by dan once again.>> up next is final trades. and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna.

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it is time for the final trade. before i say qualcomm, were you surprised that the rangers gave for 7 years? >> totally, 100. >> you and i, i say, qualcomm. >> i say youppi!, i like carter's trade, i don't have the stones to be short, with the dollar here. guilty. >> karen? >> i will stick with my short- term twitter calls. later, we will do short trades that did not work. we have a full hour.[ laughter

]tunic we could have used him tonight. we have half a minute left. you have a lot to say. >> we have a punchy episode here. >> listen, think carter is calling it, and it comes back toward the uptrend. that would putt iaround 104. >> thank you for watching "fast money". "mad money" with jim cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always work in summer. "mad money" starts now. hey, i am jim cramer. welcome to "mad money". i will try to make use of money. my job is not just to entertain you, it is to educate you.