tv Fast Money CNBC July 27, 2022 5:00pm-6:00pm EDT
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in the future we see quite a few of catalyst as well. >> we will see what happens. it's not far away about 20 seconds until it begins. i appreciate aunt. a shareholder reacting to the stock decline. we have a big earnings data model. it is apple, amazon, intel. i will be at the desk and i can't wait to see that. fast money begins right now. >> pitch perfect? they go 75 for future hikes. posting its best session since the early days a bit the pandemic. dropping after disappointing results. continued concerns about advertising. spotify has a big surge and activists pushing on paypal in the uranium stock. we will bring the headlines on all of that. on the desk tonight dan nathan.
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we will dive into the big earnings miss in just a moment but we start with the rally on wall street. all industries closing near the high of the day. s&p jumping almost more than 4%. check out some of the individual names serving today. the best stock day since april 2020. after the bell, best buy getting the guidance for the year with weaker demand. may not be a good omen there but a better market for mirage. >> again, let's go back to june 15th last time we heard from chair powell. the market valley. the next day the market got whacked but collectively we said so much pessimism. the market will rally.
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that close today. i will stand by that. today was the day to culminate and talk about slowing the pace. good luck with that. there's as much chance of that happening is anyone here on this panel have winning this billion-dollar mega millions so i think the market did what we thought it would do. it has exhausted itself and we will see what happens with apple tomorrow. >> it's almost like beauty is in the eye of the beholder. how did you interpret some of these comments because to say it may be appropriate to slow them at some point well, yes. at some point he's going to slow hikes and the notion that it may not be a huge increase in it may not translate into a big gem, that's a good hope right there. >> it is a good hope. i interpret it as a sad. the pivot i was concerned about
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was tall so much. they got the fed downgraded in the economy. that's what everyone wanted to here. we went down 10-15 basis points. you're not around 315 or 320 as you get into march april. the market is clearly thinking the fed is on point. let's be clear. returning 25 basis points this year is aggressive but a fence that is giving you some sense that you need to continue to put your foot on the pedal but they also told you in no uncertain terms that they are a bit concerned about the company. we talked about semiconductors. they were the biggest beneficiary and they are now at almost 22%. the market is at 11%. you feel comfortable with the economy based on earnings? there for putting the market down 14 or 15%.
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that's the big question here. we had a big bounce back and i'm not sure it's over yet. >> was this a pivot? a possible pivot? the prelude to a pivot? >> i didn't know you could open it by saying i heard what i wanted to here. i heard inflation and that is very concerning. i can't imagine that they are on autopilot to get to a neutral rate regardless of what the data shows. i think if we inflation data, i think that's okay. they need to get a handle on inflation and i think what i heard, you are really concerned about that and he sees that as job one. i don't think he sees preventing a bumpy landing as the most important thing. it's a byproduct.
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>> i think that's kind of okay. them having credibility is a good thing. >> how about you? >> listening. i think they are going to do what he says they have already done but they're going to do it again and again and again. they need the ability to recognize the fact that they have the tightening or the weakening of economic conditions. it's a financial condition. they will obviously have a look at that and they know it's not going to be a negative point tomorrow. at least it's going to be revised. that is just semantics but the idea they are going to avoid some sort of economic downturn and they will be able to thread the needle by some sort of pivot, that's the fastest increase in points of history. it just doesn't seem likely. it does appear we are chasing
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the stock market right here because you think the fed is going to pivot in the fall and were going to get cut next year. i just don't think that's a great way to invest right now. that being said, the things that rallied the most the day, they do feel like they are a little bit overdone on the downside. especially if you don't think that rates are going so much higher. there is a lot of people that feel like rates have to go much higher mid-single digits to get to where inflation is. i don't think that's going to happen because of all of the debt that has been accumulated over the last two years. i don't think this is something you want to chase. we know the history of their market rallies here. i suspect this happening. >> if this is truly a pivot, it might not be a chase. isn't this the big signal investors were waiting for? we just had high multiple stocks that did really well in today's session. if there is a pivot and store
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and not race it will no longer be contained. then this is your ticket, right? tim i will go to you since you believe this is a pivot in some way shape or form. >> i don't think you can dispute what happened today. the market said they are not going to be as aggressive as they thought they were. they peaked on june 17th at the last meeting. >> on some level it doesn't matter because i'm not going to tell you that i think they are going to take their foot off of the gas. i will tell you how the market is interpreted. they have enough today to talk about spending in the dynamics of the economy to have people believe those that thought they are going to break something, that in fact maybe they won't break something and i'm not telling you that's right or wrong. i'm not telling you whether they said today they are going to pause, i don't think they will and they shouldn't.
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i'm just telling you the market for three weeks has rallied mostly not on earnings in the sense that they have seen it from some inflation on the good side and we are getting enough economic data to tell you they're going to have to ease up a little bit. that's what the market tells us and we saw that clearly today. >> one doesn't preclude the other in terms of it being perceived as a pivot. but it's also a rally in that market so where do you stand on how the market is reacting? >> i think it has done what we thought it would do. if you listen to some of the things we said for the last month and a half, some of it is coming to fruition. here we are. this is what i think. i think the yield is going lower and in this environment is a bad thing. it doesn't speak to a robust economy it speaks to a slowing economy. that's probably a bad thing and
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they are potentially going to pivot and that's a bad thing because of the inflation they are trying to come that is just going to get right back out there again. listen to walmart it tells you all you need to know. inflation is forced and foremost is karen set it going down. that to me is collateral damage at that point they accept that. they are thrilled the market is going high over the last month i don't think it's going to last very long. >> there was something interesting he said during this news conference that struck me and that is the notion in the second half the economy should be okay effectively because there is so much money on people's balance sheets and job openings. we are working against that in some way. it makes the inflation so much harder in terms of trying to put grit in the wheels of the economy to slow things down. >> i was a little bit confused by that though i agree. i didn't know what to make of that. i don't know if the number of
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job openings ends up changing because we see a lot of layoffs. or if more people come into the labor force, i don't know. i was confused by that. i think they still have inflation but i also think inflation is coming down. but there is still a lot happening at the same time. inflation is coming down and the fed needs to raise and i think that's what they will do. >> let's get to the nether story this hour. the company formally knowing a facebook posting its first-ever revenue and declining the conference call. >> meta shares are trading lower their first-ever revenue decline in lower-than-expected. top and bottom line results. this is the key thing here. it fell short of expectations guiding to a range between 26 and $28 billion.
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that's what analysts were looking for. just moments ago on the economic downturn will have a broad impact on this and it's hard to predict how long that downturn will be but he said the situation seems worse than it did a quarter ago. he also noted they have seen more than 30% increase in time spent on the new format. it's across facebook and instagram. before the call started just before i spoke to the cfo, he pointed to the strength and the engagements within 3% higher than expectations. it's a broad-based deceleration and both directors in brand advertising noting a particular weakness. he also noted that they are being more focused and disciplined on spending and
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across the board. the company did lower it 2022 total expense guidance between 25 and 20 billion to a prior outlook but he did say they are investing in the meta-verse for the long term. melissa? >> keep us posted, thank you. of course the stock was up 26% from today's session. today's rally alone. last thursday when they reported they were down 40% in june. here it is now. there was nothing good about it. the good news here if you are a shareholder. i'm a shareholder is that they are getting closer to publicly bottoming out and i guess the concern about the pivot, the good news is julia just mentioned it the 3% from daily active users winter about 2 billion with one-way active users when they get that pivot
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right. they're going to be able to monetize those users so they don't lose a lot of them. to me the pivot is obvious. they saw some things coming. right? with some of their products here when they talk about what that is and what they have turned into instagram. i don't think kylie jenner loves it that much but they are making it more and more like tiktok. the story is messy and there's been some management that left. when you think about that and think about the cash assistance, they came down last week. mark zuckerberg is the ceo but he's not a wartime ceo. i think that's really interesting. it's a little bit closer to being at the bottom. >> we haven't seen many wars with mark zuckerberg as the general. comments he made about the
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difficulty in predicting the turnaround, it seems to be a little bit worse. that would be very dynamic. impressions are going up but prices are going down i thought that was very interesting. not in a great way. the impressions are up and they are knocking the price down. they pulled forward from yesterday. what i think was in response to the quarter itself describing it as lackluster which was good enough. clearly there wasn't enough guidance. i haven't heard the decrease in the expenditure number than that was maybe $4 billion shift which is meaningful. i don't know i come back to the evaluation. it wasn't priced in to hit the ball out of the park. to me not a ton has changed. i want to hear that call and get some of the nuance from how they view not just the ad
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market but their business and really what they can do expenditures for billion sounds like a lot and i wonder if they can do more. >> we have much more later. he will break down his thoughts and get updates from the call. coming up we have a lot more earning action coming your way. ford is on the move. we will bring you the numbers next. the market reaction to a federal hike.
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4 welcome back to fast money earnings alert. we have shares in the red after the quarter fell short of estimates. let's get to christina was listening in on the conference call. >> the biggest chipmaker for smart phones is a little bit weaker particularly in the mid and low tier smart form range that was discussed on the call. top and bottom line beat by the guidance. came in between $3.23 so that midpoint is lower than what street wanted.
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that reflects a $.20 impact due to lower sales and economic factors. although they are diversifying, assets are a huge part of their business data shows a 9% decline which is why companies like them take the hit. the cfo said the higher and offsetting the weakness something they echoed recently as well. revenue is on track to grow. coming from below the 50% year over-year target duke to increase processing on content. the company is pushing into other sectors such as networking. just saying moments ago the hit record revenue for the automotive as well as the internet side of things. a large portion of its profits come from licensing. they did announce they are
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expanding the patent license agreement. it will be a multiyear agreement. not only samsung phones but all galaxy devices. you can see shares are climbing lower right now. >> thank you for that. >> you trade it for the number. the stock was up 32% going into this. i think the cautious smart phone sales, they have been smart and they just died it down to 5% if they concern. i love the auto segment records especially for the outlook. evaluation is not difficult. you are not chasing the evaluation. i think the entire space as we talked about earlier has just been flying and again the smart phone segment is still something that they are very much tethered to. it was a great run for the stock. >> the comments about the relative strength birther. a little helpful.
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if one wanted to be hopeful especially when it comes to apples results. >> so you go to dan? >> i did that out of irony but yes. >> they are a 23% customer. over the weekend there was some reporting that possibly apple is offering some short-term discounts which is interesting because that is obviously a place of concern for demand and we also noted they will have some issues there as it relates to the supply chain with manufacturing. for me the fact that they are not going down a whole lot, that's the last couple of days in the major technology earnings. they really snapped in last week. sent might be a very isolated situation. even if you miss a little bit in your guidance is not as bad as expected, it's not going to
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be a disaster at this point. >> he is a little hopeful. dan can be hopeful. contrary to popular belief. let's get to the service now. results sinking after a slight revenue miss of 25% that the company is cutting its full- year guidance in the revised numbers coming just two weeks after the ceo warned that the strong u.s. dollar is hurting the technology sector and here we are at that 6% day. >> is given back what it has made during the day. it should be down a lot more. evaluation is still a concern. the stock bounced. i'm surprised it bounced as much as it did. this is worse than people expected. i'm surprised it's not down more. it's pretty defensive that it shouldn't bottom out and it holds up i think. again in terms of evaluation, i think it's about as good as it gets. >> which one you want to trade
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welcome back to fast money. let's close out the trading day with wall street embracing the remarks about potentially slowing the pace about 436 point. they expect 4% but the next guest ones stocks on a collision course with more pain. we have the chief equity strategist. he's the second biggest bear. i don't know how you feel about that title. there it is. you didn't think this was a pivot today? that's how the market interpreted it. >> look. it's the beginning of the end. okay? we learned about this a lot where the market has been stronger than we thought.
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they have been consistently negative even the market is starting to buy-in the fact that the fed is going to go too far and start and drive us into a recession. what was the market excited about? what it's trying to get excited about as we are getting closer to the end of the hiking campaign. is this the last hike? probably not. could it be? it could be depending on how fast things deteriorate in the market always rallies once they stop hiking until the recession begins. the problem with that this time around is it's unlikely to lead to a gap between the end of the campaign and their recession. there's no window down there like there normally is. it will probably go another 4100 like we were saying. that's a good number. 4150 but every dollar we rally makes the reward worse and not better. that's for sure. >> to quote simon and
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garfunkel, man wants to hear what he hears and disregards the rest. inflation might have peaked at 9.1 but even when you take them down 30% you're still talking about the epi living in the high six and low seven. they have a job in front of them still and again in this environment, what is the right thing to put on stocks given the fact that their job is not nearly over? >> that's right and is not just about the multiple guys you know it's about how far did he have come down? you have two outcomes in front of you either a soft landing or a recession. even in the soft landing scenario as we analyze, we think there's probably about $15 earning risk at that level. that would suggest that when you downsize to 3500, in the
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recession outcome it's much more severe. in that area we think it could be as low as 195 when you get to that cuts. now you are talking the low 3000. i think it's really important to frame every investment in terms of your upside versus your downside. a lot of investors and people say things about being bullish or bearish. they don't frame it that way. the market looks good. you are taking a lot of risk here to achieve what is ever left on the table. that's not smart investing. we put our clients money to work and we try to get a good risk reward right now. it's ust not great right now. >> i wanted to ask you about the comment the chair made during the press conference. in the second half the economy should do okay since there are many job openings and money on people's balance sheets. seems to me it would make the fed job even harder trying to
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tame inflation. and opens a door to possibly a different scenario. they see it as a pivot and it's really not. >> and i think inflation is going to come down pretty fast when the demand falls off. i appreciate there is still a lot of cash out there in consumer still have the ability to spend but it's going to be a smaller group pick that's pretty clear. 80% is struggling here. 10% is always fine in the upper 20s are okay but you look at the consumer confidence and how things play out in the economy. the sentiment is not great so even if you have the money i think consumers will be a little bit more reserved with how they spend it. we have all this extra
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inventory. i think we are getting closer to the end the way it's played out in many ways but the problem is it won't quit and we need to have that final move. i don't think that's the final move. >> great talking to you. >> mike wilson of morgan stanley pick that's exactly what we heard from walmart, mcdonald's and even chipotle when it comes to those who do have the money to spend, they spend it on $20 burritos or whatever you get a chipotle but we are getting confirmation for all of this so far. >> chipotle said it's a better time for them because they are getting a higher frequency visit from those people who have the money to spend and walmart has a different crowd although there is a trade down that is setting it off from mcdonald's. people spending more time on fast cash and going in a fast food. the point they are making is around the recession and we are
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getting these numbers out tomorrow. we have a job market right now that the fed still has some room with because jobs well maybe we have had cheap labor, it hasn't fallen out of bet yet. if i had to summarize what we have seen so far in the season, it hasn't been a demand. there have been some downgrades. it is still been about margins in that inventory dynamic and what you should pay in this environment. markets had a tremendous run at 50% off of the bottom. i think earnings aren't getting better. they may not be getting a lot worse but they're not getting better. >> we have a news alert we have to get to out of washington, d.c. reaching a deal on the inflation reduction act. >> this is a surprise announcement from the senator.
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they impose new taxes on corporations with the wealthy to extend it on health care and clean energy. he indicated that could be applied to businesses with about $1 billion in revenue or more. it will allow medicare nick to negotiate with prescriptions. apple work its ay out to 369,000,000,060 4 billion towards extending the affordable care act through 2025. in a joint statement he said he had stored down payment on deficit reduction to fight inflation and reduce target omissions. this is going to be sent up
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tonight to make sure all the languages correct. make sure it will pass the muster. the plan is for the senate to vote on this as soon as next week. melissa. >> thank you. your take on this? >> i think these are priorities that are important to you. it's a big win. there was a time where we were hoping this would be a bigger package. i do think with that headline that says this deal would close the loophole. that something that was talked about a lot and there's a lot of people in our business who don't want to see that happen. it's interesting that was a part of it. >> coming up on the meta quarter and the results. ford driving higher and the details from that report when fast money returns.
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the called vince the top of the hour. any highlights from the call so far? what you make from the quarter overall? >> it was bad. as a shareholder it was bad. as bad as the rest of the technology companies. youtube is down 5%. they went down 2%. it was flat so it was negative. there are signs of positive. at least when the call started, a small move up when zuckerberg started to outline some of the impact and you cover that earlier in the show but let's just recap right here. we have done 1 billion in revenue. you implied that's about 5% on the revenue today which was zero a year ago. engagement is up 30%. i suspect it's probably 15% total engagement and its two total time spent. this is all about fighting
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tiktok. that some of the pieces in place just to do that. >> one of the things i wanted to hear your opinion on was the cut. is it enough? do they still need to spend more? what are your thoughts there? >> a step in the right direction. they talked about being more disciplined around their hiring. they basically suggested for 2022 they will reduce it by 3% versus their prior guidance but zuckerberg is in this mode of either get on board or get off. i suspect there is going to be future reductions as i mentioned. one of the reasons we are owners, we believe that he's going to be more aggressive with some of these cuts in 2023 so i suspect that 3% today is a starting point and i suspect we will see more of it.
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it really sets up next year to be a good year relative to earnings because all of the pain they are having right now from the growth are the earnings side, that should be easy year next year. >> the comments zuckerberg has made so far with it being worse than before, i'm wondering if you think this is sandbagging. what does this mean for players out there? they arguably would be in a much worse position towards this unpredictable downturn. >> he talked about the macro. the term that he used was turbulent times on the call. they also talked about the impact of the fx and this is not sugarcoating it. you need to look at all of the layers here. they will have a bigger impact. all companies will have a bigger impact. that's something to keep in context here. when you think about the
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advertising push, they are effectively trying to wean advertisers off of stories and move them on to reels so advertisers are pulling back and they are still finishing navigating that. as a reminder, that came out in april of 2021 so this is the last full quarter where they will see essentially the september quarter get easier. i'm ready to throw it under the bus and talk about advertisers moving in different directions. they attribute probably a third of that down to that and two thirds related to fx and idsa. >> good to get your take on it is always. what do you think? >> i don't think we will see the 154 level in terms of the stock, the worst is over. this has a kitchen sink feeling to it in terms of the guide and we will see.
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the good news is evaluation and it has not been a concern at these levels. i have to push back on something that dan said. to sort of paraphrase and plagiarize lloyd benson. i knew tom and mark zuckerberg is no tom hagan. just throwing it out there. >> you have to let me in there. he's going in for a wartime considering erie here. everything goes back to the godfather. i will say this. there is a really strong chance. we keep hearing about tiktok. there is a good chance that it will be banned in the u.s. can you imagine what a tailwind that would be for facebook? >> it would be huge. >> let's get to the fourth out here. the stock is climbing at the bottom line. revenue listed by sales and crossovers offer more than tripled in a year ago with a semi's shorted.
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they were able to build more cars even in the face of ongoing supply-chain issues. up 6%. >> and a $4 billion commodity hit but the dynamics around this company are that they are executing and they are executing the industry if you look at the protraction growth year over year. we do this all the time. it doesn't seem to matter but it gives you some confidence in the dividend and where we will continue to be. you are 6 1/2 times over 4 1/2 times with the earnings next year. this is very interesting. not given enough credit for the business and arguably pressing the internal combustion engine business for free. so i think they are badly beaten. out for from them almost by 30 percentage points. i think they play catch-up but they're both in great places to be. >> does ford deserve that
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premium? >> i think they do. gm should try to play catch-up. we had great north american numbers. they just seem to be executing better so yes. gm needs to play catch-up. i'm sure they feel that pressure immensely. >> coming up, markets rallying and a few names in particular caught our eyes. the stocks straight ahead in the first apple earnings on the deck with a runoff. we dive into the options. 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.
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>> welcome back to fast money. believe it or not there are still major big technology earnings coming this way. apple and amazon on deck after thursday. there's lots of options. spending about apple. mike has the action. >> yes. apple right now with a move a 3.8% after the report earnings. that's in line with 3.7 that they averaged over the last 8/4. slow was bullish. calling buyers exceeding bearish that. in the 160 strike at the end of
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the week. about 50,000 of those were training buyers. they're going above that level now amazon also expecting some even bigger moves at about 6.5% and seeing some bullish activity there as we did with google as well. microsoft also saw a lot of bullish activity is following their results. >> what you make of the set up of both of these going in? >> as i said last night. amazon to me looks like a 2. i don't think the setup for apple is particularly good given me bounce from the middle of the level we are trading at against the backdrop of hearing what best buy said with all these different stories that are out. despite the fact that people see them playing it, the set up for apple is all that good. >> lumping amazon and walmart together may give it a bit of a boost though. >> it's interesting.
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it's also interesting that amazon could've had walmart headwinds yesterday from google. for microsoft they will go again. and wasn't as strong. i just think the dynamics on amazon to me -- it's an observably difficult concept. they're trying to pull forward and i still think that amazon has the major mega cap outside of google. that's the most interesting thing to own here. >> thank you for that. be sure to tune into the fall show at friday 5:30. coming up, the big rate hike llere they stood out and they wi break down what you should be watching. fast money will be back right after this. it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. 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.
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the stock basically came up to 162. coming up to 44%. that's all for the time being. they took the money and ran. >> the best day since january's earnings. what you make of it? >> what stuck out to me was $365 million in advertising revenue up 35% year after year. they put up a big push. that something to do at that. it's probably a positive readthrough. think about the move netflix has had since they reported those earnings a little bit more than a week ago. they are bucking some of these advertisers with spotify. that's clearly one of them
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right here. feels like they're trying to make it here down 50%. >> they are up on earnings. that's one of yours, karen. >> up $11 in this session and up $11 where we are at. we are in the aftermarket. a big guide on revenue and productivity which is a combination of utilization and price on the equipment they rent. they get the cash flow and they try to not be below two times and they rather give the money back to shareholders we will hear something about that. excellent work. >> the minor jumping on its report. >> color me perplexed. we even see the legislative past forward. they are at 60% of every new contract signed in yellow also
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known as uranium oxide and they have a great option. they continue to not have any short-term debt. surging in today's session a continuation. a blowout we witnessed yesterday after those earnings since the beginning of the pandemic. >> to celebrate i got out and got a burrito. they beat the yankees last night which made my turn for other reasons but i will say this. traded seven times the normal volume today and the history over the last few months, they needed to be sold. i think the evaluation is compelling on a forward basis. she typically is right when we disagree so i will go with her. >> is it rich and deserved?
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>> maybe. we started talking about mcdonald's earnings and we mentioned it earlier today. we have some of those takeaways that are really interesting because they are getting some of the trends as it relates to the u.s. consumer and they take out the credit and all of this stuff. these data points are going to be very useful you can't chase this. the start of the end. just like wilson staying here. it is just gti setngtarted. we haven't seen unemployment taking up. it's coming soon. >> up next, the final trade. demands a lotion this pure. gold bond pure moisture lotion 24-hour hydration no parabens, dyes, or fragrances gold bond champion your skin
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on the open with the trading opportunity. they are going up and down. probably closing up on that. >> shout out to dan as the yields go lower, going higher. >> thank you my mission is simple. to make you money. i'm here to level the playing field for all investors. i promise to help you find it. mad money starts now. hey, i am jim cramer. welcome to mad money. you want to make friends? i'm just trying to make you a little money. it's my job. not to entertain, but to educate and teach you. call me at 1-800-743-cnbc, or tweet me at jimmy cramer.
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