>> yes, and that area is in trouble if you look at tonal, a business that had taken on a lot of investment. this had markdowns. and probably makes sense for lululemon to integrate that into some of their other stuff working. >> both of those conference calls are going on right now. we'll continue to monitor those. but that's going to do it for us here at "overtime." >> "fast money" begins right now. right now on "fast," green chutes in a down market despite rising rates, stubborn inflation, three sectors not only surviving but driving. plus, another winner, we'll go inside the numbers at mccormack. can you profit with paprika and pepper? planning to six into six units and could it lead to more companies following in their footsteps? this is "fast money" live from the marketsite. estimate seymour, karen finerman, guy tammy and jeff mills.

guy, fleiss to be back. surprising spots of strength. s&p, dow closing off lows of the day but still both breaking some three-day win streaks. nasdaq leading the losses down half a percent. energy, the best performing sector and this week even after underperforming the broader market so far this year, all but one name in it up. some consumer names holding up despite stubbornly high inflation, chipotle, domino's, darden beating the broader market this month. we'll dive into both of those during the show but let's start with the real head scratcher and that is home builders. even with mortgage rates at 20-year highs, sectors stay strong. all up double digits this year and how do you make sense of these seemingly unexpected moves, guy? is that what you saw happening? >> first of all, we're in the presence of greatness. [ laughter ] >> you're a baseball fang. like aaron judge, a rehab stint

in aa and a big star plays with the bambinos. >> might have to step out of the batter's box and compose myself. >> you just don't know. you get tongue tied. >> 17 seconds or so. >> back to home builders. we've talked about it on the show. imbalance has been there for awhile. people tried to sell these trying to get ahead of something late last year and realize, wait a second, these are strong company, strong balance sheets and the supply and demand fundamentals are in place. polti made not a 52-week high, but an all-time high. despite the weakness in the economy and market, the home builders are still a place to hide out. >> you agree? >> i think there's a bit of a lag effect. the velocity is down. guy had a great call on this. i'll point more to what's going on with interest rates. with we peaked the 420 on the

ten-year, you had lennar at a two-year low and up 49%. we have seen some construction costs go down. i know you're not seeing it at home depot but lumber prices are down and when you hear from builders they're talking about profitability. even if you have single home family starts down 15 to 20%, ebitda and margins are as good as they've been and i think that's what it is. i till think it's interest rates. >> labor availability one piece of this. skepticism? >> home builders versus the last crisis they were way out over their skis with so many lots of land and the balance sheets looked terrible. this is a complete -- and the supply/demand was out of whack. where we are now it's a totally different story and people are so spooked that now you can see, all right, even though they've traded up, it's not like they're

crazy expensive and maybe rates have peaked. if that's the case you generally want to buy them before they actually, you know, rates will be down six months from now and that's maybe where they're looking at. >> what about bank lending? we get to a place where what's so many different interpretations. i know we're about to have a bank discussion. if you think about lending and think about where mortgage standards have gone, and do you think banks will putting out more mortgages? do you think they'll take on more risk? i don't think it helps and, again, as much as i'm pointing out this move has been massive this is not a move i'm chasing. not a move that is sustainable. i don't think the consumer is getting stronger in the next six to nine months buy that house and i don't think rates go down. >> i wonder if the profile of the writtening home builder is changing because of remote work, because of what may or may not happen to commercial real estate and people's ability to telecommute. is the toll urban center, home builder going to be a winner again? >> i think it's more price

demographic than anything else. if you look at the demographics of the united states, for example, you have that prime home buying age somewhere around 30, 31, 32. that's the biggest cohort of our population so when i think about what home builders might do the best, i think it's that mid to lower end, d.r. hortons of the world but i'm skeptical so we're -- tim mentioned it relative to rates. we're in this pivot window. right afterwards you often see a bump in housing data, a bump in home builders. the question is what happens after that? do you have the proverbial soft landing or go into a recession? my guess is the economy continues to deteriorate some and that's going to be a drag on the billers. you had that huge rally up 40% right to 70% and the home builders etf. that's clear resistance and failed there. that doesn't make me feel great. the one thing i will say and saying it a lot last year, you know, rates probably have peaked, so i think that's good to some degree. if you look at the history of home builder performance, they

do the bulk of underperforming prior to reseg, even in 2008, they outperformed the s&p 500 during the actual recession, so i think you take some comfort in that. you might see volatility here going forward, but the bulk of the underperformance might be behind us. >> i wonder how much of that analog makes sense given that the balance sheet profile of the american household is a lot different than it was coming out of '08, right? >> is it better? is it worse? we talk about it on the desk. credit card debt either side of a trillion dollars and people look to the balance sheets looking better. certain metric, yes, talking about credit and has over the skis people are, $5 trillion worth of debt out there in the consumer world is not a particularly good thing with rates moving the way they are. so there's that aspect. again what tim is saying, you don't want to chase these. in terms of a trade, all these stocks will report on or about april 20th to the 23rd. they're all going to probably i think trend back up to those all-time highs we made december of '21. that's when you pull the rip

cord. if you're aggressive that might be the time to start shortening them. >> we say all the time the labor market is a lagging indicator. we're saying we haven't seen the impact of the fed. it's hard to believe the housing market gets stronger when, if anything, under the surface some of these last rounds of job numbers we've seen have been incredible. again, i think the move from interest rates and to a sense, karen, you said in the fed's peak, i think they've peaked. we've seen as high as the ten-year can go but i don't think you will see it much lower. >> can you slice and dice single family, multifamily -- 15-year high, something like that? >> i would have thought that would have moved more actually, but i guess it takes time. it's interesting, rates during the '08/'09, this is where rates were. we were used to zero rates and now think this is insane. it's where we've been on average for 30 year, however, home

prices were lower than -- there were too many homes, but so there's that. so i'm not long on either, but i do think the setup isn't bad. they're not over their skis, and i think -- i actually am in zillow, an asset lightweight to play the home space. >> from mortgage ranges to banks, the senate banking committee grilling regulators on the silicon valley bank collapse and michael barr described the final hours leading up to that bank's demise. >> morning the bank let us know they expected outflow to be vastly larger based on client request and what was in the queue, a total of $100 billion was scheduled to go out the door that day. >> insight and let's bring in chris whalen. great to have you back. >> hey, carl. >> i've heard some discussion that maybe today's hearing gave us a little more transparency

than we were expecting. were you surprised? >> no, i was happy actually to hear vice chairman barr talking about some of the details. i think it helps the public understand what's going on, but, you know, that number, $100 billion in a day, that's how fast a bank run can move compared to the old days when we had to count the money. and i think it also shows why regulators, the fdic were flatfooted. they didn't have a chance to sell the bank. they had to set up a bridge bank. the velocity of change in our market i think is the biggest factor we face, both as investors and risk managers. >> well, i said it on the show when i was corrected. maybe if silicon valley bank were under the auspices of the bank's stress test it wouldn't have happened. as it turns out they would have passed the stress test so the stress test by definition is flawed. how can we trust regulators and the stress test? they were stressing against the

problem we had 15 years ago, not obviously the interest rate problem that, by the way, i think you believe as i do the fed created. >> well, absolutely. i mean, you know, it's kind of ironic, the fed would have to use an economic narrative for a stress test which -- the last battle, 200 was about credit. credit is coming, by the way, to your earlier discussion, it will be here in about two quarters. we're just normalizing credit now, because the fed pushed up asset prices, so it was hard to lose upon on a bad loan, even autos during covid, my god. so credit is coming. but this is market risk like you say, and i think there's two thing, one is the regulators were not looking at their own data, which would tell you the differences in business models. silicon valley bank was a hedge fund, you know, plain and simple, and i think they'll get prosecuted -- or sued by the fbi, the receiver, when there is

a loss in the receivership they go after the officers and directors and they should. >> it's karen. thanks for being on. what do you think is going to happen with first republic? we're in like a dead zone of not a lot of information which is surprising given that there's probably a lot going on underneath the surface? >> i think they were probably one of the weaker asset gatherer, i call them, the people in the advisory business that happen to owe the bank. they were also a -- jumbo mortgages which is why jp and the other larger banks came to their rescue. they don't want to see a jumbo issue go down, that would be bad so they can easily get by. it's not that big of a bank. the top floor is not in the game. think about somebody buying it, it will be the next group down, which to me any way is the most interesting group, you know, pnc, schwab, u.s. bank, of course, truist. these are banks who can go out and buy stuff. but the top four, no, they're in the penalty box forever.

>> you know, chris, there was a lot of discussion today about the revelation of those ten largest accounts at svb, do you think that will be a political -- a hot spot? >> look, when a bank has a deposit concentration, they are allowed to go back to the regulators and mitigate that concern and say, look, this is a good customer, for example, a mortgage lender where you take care -- cash, you lend the money for warehouses, it's a sticky relationship. they're not going anywhere but if you have large customers who are worried about payroll and they see, you know, uncle sam paying 4% for t bills for 90 days, that's a more difficult conversation. how can you keep them? you know, average bank funding costs, 1 1/2, maybe a little more, depending on the bank, so right now we have a price problem. the last time we had t bills and fed funds above bank deposits were when paul voelker was

chairman and shooting s and ls. that's kind of where we are. >> we'll talk about soon. i have a feeling. good to see you. >> my pleasure. >> jeff, what do you think of the space overall? >> well, i think right now one of the most interesting things is, you know, can we get clarity on any new regulation and what size banks is it going to apply to? if you look at macro economically the impact, banks are 250 billion or less, they account for 50% of the lending that goes on in this country, so even if regulations aren't right around the corner they're clearly going to pull back and maybe from a broad market perspective. silicon valley bank simmons failed three weeks ago. you have seen no changes to 2023/2024 earnings estimates. i think analysts are sort of in this wait and see mode. at the very least, i think estimates for financials need to come down just given these tighter lending standards, the slowing economy. they are a large contributor to the overall index so i think when earnings estimates needed to come down this only makes it worse, just an additional head

wind for the broad market. >> yeah, i'm part of the earnings pressure we were talking about even in the early days of svb. by the way, speaking of banks, breaking news on jpmorgan's jamie dimon. eamon javers has that for us tonight. >> reporter: "the financial times" is reporting jamie dimon will testify under oath in the case involving the relationship between jpmorgan and disgraced financier jeffrey epstein and sex trafficking. what they're report something that testimony will take place sometime in may. it will be under oath. the bank had resisted for a long time in this case. dimon interviewed on this and resisted on turning over additional documents. both will happen. the big question, carl, what did jamie dimon know about all of this? some people believe he was going to review the jeffrey epstein

accounts as early as 2008. epstein stayed inside the bank for years after that. jpmorgan has denied that dimon had any knowledge of reviewing those accounts back in 2008, so presumably he will be put to that question in this on the record testimony now of what did he know and when did he know it about the bank's relationship with jeffrey epstein. >> eamon, thanks. jpmorgan will be our first look on the 14th in terms of bank earnings. >> yes, one thing about that, i mean, jamie dimon, i love jamie dimon, i think -- he's the most extraordinary executive in financial services so anything that could taint him is bad, right? but jpmorgan also is going to be really interesting to hear what they think of the economy and banking, what their lending is and what did they take in deposits? what will they do with it? they must have gotten a deluge of money and what did they do with it? >> when did they say that --

when is that going to take place? time and where? >> in june? >> i thought it was in may and the folks at jpmorgan say may that day never come. 37% is berkshire hathway, visa and mastercard. >> yeah. >> and it's not trading well, 29 1/2 before covid hit, resistance on the upside and traded on that and bounced but you start getting through there on the downside then you have to start questioning what's going on in the broader market, i think. >> i think if you look at where banks are trading now, we've seen around covid or different moments in time, whether it was -- we were implying there were write-offs, banks will do it first then we'll figure it out. not a terrible setup except for the fact i don't think we recover from this overhang. look at the way the kre is trading, we have to hear about the cost of deposits going up. there's a trade in the short to

medium term and haven't gotten to the credit crisis yet. that's the part that gets marked down and there's a trade in banks after earnings. >> interesting. classic earnings season where they start out on a sour note. coming up, after hours action in lulu and micron hire, lulu surging off beating on the top and bottom line. details from both quarters coming up next. spicy trade for your portfolio. portfolio. sharons of fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. hot dogs! fresh, warm hot dogs! before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com asking the right question risks, charges, expenses can greatly impact your future. - are, are you qualified to do this?

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welcome back to "fast money." lululemon shares after hour, the athleisure brand beating estimates on the top and bottom line, conference call under way. our pippa stevens has more. >> while shares are up more than 11% following the fourth quarter beat comparable sales were also ahead of expectations coming in at 27% versus a forecast of 23.9%. adjusted gross margin down slightly to 57.4%, although that was ahead of estimates. now, the company's inventory was up 50% at the end of last year, relative to 2021. standing at $1.4 billion, however, that was an improvement

from the third quarter. now, it really seems to be the guidance that is driving stocks. they expect it to be between 9.3 and $9.4 billion ahead of what analysts were expecting and a lot of concerns heading into the report, so the upbeat guide does seem to be alleviating some fears. now, beyond closing just now on the call the company pointed to a challenged at home fitness space saying mirror hardware sales during the holiday season were below expectations. lulu said it will pivot away from the hardware centric business to instead focus on the app-based model. shares up 12%. >> pippa, thanks very much. karen, are they digging out, do you think? >> there was a lot to like. often you have one quarter, a bad quarter then another bad quarter right after that. this was hardly that at all. the inventory she talked about was one of the deep concerns, the gross margin, i mean, they just beat on every metric and seems like they beat a lot on this quarter, and this was as much as they raise the whole

year so i think there's sandbagging in there, as well. all that is great. a premier name for sure and deserves a premier multiple. too rich for me, 358 which is up 38 bucks. >> you obviously work out. you wear the -- >> i'm wearing lulu now. >> jeff, when you string together pvh, nike's inventory, now this, can we create a thread about the consumer, at least the high end? >> yeah, i think that's generally been the consensus, it's either you want to be low end dollar store or high end in the nike, lulu, really strong brands. i thought lulu could go to 50, 360 plus and i was ready to throw in the towel but to karen's point now that i think you've seen that move, there are a couple of issues, i think, that concern me going forward. one is you've had a lot of excess savings we always talk about. that accrued to the high-end earners. i've seen estimates it could be gone the next one or two

quarters and, of course, the labor market. i still think some high-paying jobs in tech and financial are at risk and severance packages for those left go will start to roll off soon. that combination ends up being a head wind as well. i don't hate the stock here but as our friend carter likes to say, i think it's probably a pair of 2s from a technical standpoint. looks okay. i know it's a lot lower than the stock is now, but i think 265-ish probably defines your downside. >> interesting. got another earnings alert. this one on micron. shares seeing a lyft. kristina partsinevelos is listen in on that. >> the inventory writedown was larger than expected and impacted operating margins by 39 percentage points. it was the first item addressed by micron's ceo who said inventory should improve with days of inventory outstanding in

peaking q2. we're currently in q3 at this moment. four business segment, data center revenue bottomed in fiscal q2, but forecast pc unit volume to decline by mid single digits. micron gets roughly 50% of its revenue from smartphones and pcs. gross margin, big concern. pricing challenges, writedown in inventory which we talked about costs of underutilization and a higher mix of nand memory chips. the ceo warning on the call, quote, the profitability levels in the industry today are simply not sustainable. so the demand and supply environment has to improve in the industry. shares, though, are up over -- when last i checked, over 1% and seems like investors like that q3 revenue is projected to be in line with estimates. >> kristina, thanks. i'm looking at pc mobile, auto. how do you put these together?

>> i think you're waiting still for the whole inventory and decline that's been going on for key end markets to start to turn. and, in fact, and the chart is actually starting to turn. i think the chart looks more interesting than the fundamentals. that's what you do. you tend to be buying six to nine months in advance of that cycle turn and i think that's what we're doing. on the market today too, semis underperformed, and my allegory is the market will continue to outperform as long as semi, this chart looks interesting. >> enough to ratify the move that chips have had the last few weeks. >> no, it's a disastrous quarter if you look at it. to tim's point, what the market -- basically we've gotten back what we lost for context in terms of the gains we're seeing now although now it's unchanged. people are saying it can't get much worse. if you look at operating income, i mean, $2 billion loss, the street was expecting $700 million loss. i mean if you look at margins, negative 56.2%, across the board, it's not good but i think

there's this realization and tim talks to this, you buy these stocks when they look the worst and hope they go from really bad to just bad and then you get the pop in the name but i think you got to let this play out a little bit now, because the numbers are not particularly strong. >> especially with their comments on mobile and smartphones for the year. there's a lot more to come. what is coming up next -- >> announcer: a trade with some kick. mccormick delivering some real zest in its earnings report. is this stock set to spice up your portfolio? plus, breaking up is hard to do. but not when you're alibaba. the chinese tech giant splitting up its businesses and the move has investors flocking in. what the shake-up could mean for your money ahead.

shares of mccormick topping the tape jumping 10% after beating earnings estimates for q1, reaffirming full year guidance and the ceo spoke to us about his outlook for food inflation. >> cost inputs go up and we'll have to pass that on. for mccormick, i think one of the things that was good news for investors on the call was that for the most part we've got our pricing for this year done. >> still underperforming the broader market this year, but can the stock spice up your portfolio? >> oh, wow. >> guy, we tried to press him. he says he's got -- they've got about 80% of pricing for the year. >> it's an expensive stock and i don't think you have the growth

to justify trading close to 30 times next year's numbers but momentum behind it. it underperformed. people playing catch-up here. at a certain point i think valuations are going to get in your way. 81 bucks here, maybe you get to 85, 86 then then have to say too rich -- >> did you say ketchup? >> i didn't. >> by the way, we -- >> i did throw it out there, didn't i? >> spice up your portfolio. then he reads this stuff like it's nothing. >> taking credit for that? >> no, i'm not taking anything. it's a team game, okay? >> there's no i in karen. >> never. >> as guy says, expensive stock and i think they're a cereal

acquirer. it's a little rich for me. >> he tried to make the argument the cost of eating out is so exorbitant they are actually solving part of the inflation problem for households. >> yeah, well, i think that's part of the argument for owning the stock. it's more of a macro call than anything fundamental relative to the company. i mean, clearly it's a counter cyclical business and you have that argument and maybe people stop going out as much. because of that you could see outperformance in the stock. they can stay expensive for a long time and might end up being the case. i would let it settle in. this move is a little bit too big in the near term, but i think it comes in, again, people do end up staying home and the macro economy continues to slow down and people will rotate back to defensives. staples overall have been thrown out for the first part of this year. i do think that reinvestors out over the next couple of quarters and investors look to hide in names like this. >> they've had a couple of good

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welcome back. another check on the markets. stocks did close lower as rates continue to climb. dow and s&p down 0.1%. the tech heavy nasdaq leading losses falling nearly half a percent. shares of walgreens jumping nearly % after delivering results today. the company post a beat on the top and bottom line but cite a sharp decline in demand for covid tests and vaccines. alibaba surging more than 14% after it splits into six separate companies each with the ability to raise outside funding and explore going public. the company says in a statement the split is aimed at unlocking shareholder value and improving competitiveness coming on the heels of this regulatory crackdown in china to curb the tech giant's sfrauling

influence. jim wasn't a fan of the overall reach out by china to the business community. what do you think? >> when china talking about unlocking value it's hard to believe them. in fact, they wiped $600 billion off the market cap of this company and it's with some irony, some coincidence jack ma returned from his "weekend at bernie's" and there he is. i get the message. i feel like i remember the night sitting on the desk when the ipo was scrapped and that was the peak and that was at $293 on the stock so i get it and i know we'll have an interesting conversation on spin-offs but i think there's no question there's always been a lot of parts. this is great news to me. a wait and see moment. for china to suddenly say when you consider where we are on the geopolitics of megatech to say come do it. >> the argument is they are

under the gun on tiktok and under the gun on chip restrictions and this is one way to push back, right? say, we're here and developing a business-friendly environment. >> i guess, i'm not really sure. how is this going to work out? how do they do it? split them all at one time, do it individually? i don't know. how do they -- i'm confused actually, but i do think you have to think, all right, this is a -- tensions were running lie there, of course, that took us by surprise and got worse and worse. i think this may be the bottom of the sentiment but all that having been said don't own it. >> halloween of 2020 when baba was a $315 stock. significant downtrend since then. >> major. >> 10, 35 to 50% bounces along the ware in a stock that's still pretty significantly lower than the all-time high. we're in the midst of one of these again. this news cycle will last until they say something to the contrary. i think you have a window of

opportunity here to stay long in the name. >> let's get more on the split with jim osman. jim, to guy's point how many times do we need to get a narrative from at least chinese regulators only to have it thrown in our face? do you trust this? >> well, whether i trust it or not is besides the point. the fact that they are looking into create value for shareholders is a very real proposition. so, we're used to growing up in the last 10, 15 years with the idea ip osse are great to buy but on the face of it, yes, i'm happy about the value creation. i think it gives a catalyst for other big tech like meta and amazon to split up. i think that's very important. but on the contrary side, i think the message for investors here is really, stay away from ip osse. they're purely manufactured and actually, you know, are --

research shows that the actual profitable amount of ipos has been decreasing year on year. from a peak in 2009, 81% of ipos made money post their listings. now, bring that back to last year, 25% of companies were profitable, so this is not the right way to go. i want to make the distinction between that and a spinoff. >> jim, i'm a big fan of your work. you talk about the unhidden value in some of these spin-offs and talk about all time, mcdonald's years ago, psx was a spinoff and one out of merck, there's a long list of hidden gems people discard. meanwhile if they understand what's going on huge opportunity for them. can you speak to that? >> absolutely, and, you know, spoke at a conference recently and someone said, jim, if these are so great and a great place to look for investors and it really is, why doesn't everybody do it?

it's actually age old. no one wants to do the work. so, you know, it takes a lot of work because here's the difference, guy, with the ipo there's a market geared to sell you on investments. on the fact of that, it's not right. valuations that aim towards hiring, they have one price they want to sell you, they'll restrict you from averaging in and lockout periods and the investment is like the best of a seller so to the spin-off where let me tell you in a couple of lines, it's a fundamentally inefficient method of distributing tock to the wong people, so with that inefficiency comes opportunity, so that's why i'm a fan of this. bring up more and that i just sold to you. >> do you think this portends any kind of repair to the ipo window later in the back half of this year, let's say? >> i'm not so sure, carl. like i say, it's an interesting

period in the market because historically what we've seen and i said this late in the year 2001, a lot of spin-offs happen at the top. a lot of spin-offs happen in the bottom. now, and a lot of ipos just have the top. why? because you have companies ready to be offloaded to you, the investor, because i want you to pay the highest price sadly. so at the front end, can i sell that investment to you? no. can i spec it to you and get rid of it to another -- no one wants to buy them so the bottom market, no. so that's why you're seeing a lot more spin-offs by distribution along big companies coming up such as kellogg's breaking up, such as johnson & johnson and such as 3m who you well know. >> right, do you sense, jim, an underlying hunger or bid for new

issues, just because investors are in search of new ideas, period? >> no, i don't. i think ipos certainly have collapsed historically in the last couple of years because there is no appetite but what really is and may i be so bold to say, looking at the spin-offs, all the regular mainstream investors have got stocks like kellogg, have got stocks like 3m and what -- sorry, what is going to appear on their accounts in the next few months are stocks that they never heard of, and it's the spin-offs because they get them by distribution. i want to tell those investors no look very, very squarefully at those extra stocks that they have when they wake up in the morning and not just sell them because that's the natural thing to do when you don't know but actually research a little bit more or find someone to research and ensure they may keep that. some of these stocks have done very well. you know yourself, you know, even spinning off, all these

ones, otis and raytheon, they spun off, 65%. stocks people would have got but would have sold. >> that's a great point, jim. really interesting wrinkle in the market. thanks for your time. good to see you. jim osman. jeff, i think it speaks to the broad problem we've been talking about for a long time. that is that stocks are under-understood, undercovered and underresearched. >> the value gets off on some of these. jim's point is well taken regarding spin-offs versus ipos but i wonder the historical window we're looking at, capitalist-free, companies going public that probably shouldn't and wouldn't in another regime, you know, does that change here a little bit going forward now that capital has a cost again fundamentals matter? i'm not making the argument ipos are better than spin-offs or

vice versa but wondering whether the past 10, 12 years is indicative of what we'll see in terms of performance going forward. something worth considering? >> tim, this playbook, does it interest you and got names that would follow? >> i think it's interesting. i think, look no further than ge as a company that benefited from this. the spin-off of ge health care and their aviation business coming out and i mean, you've got different things going on and guy mentioned the restaurant china. remember when yum china was the growth -- it's been outperforming. i think you speak of what's going on with alibaba, fintech and social media and if you believe you can do that in china with one company, i think ten cent is a better story. coming up tonight energy standing strong despite market volatility and option pits are fueling up. throughout march we are celebrating women's heritage. here's the ceo of lincoln

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welcome back to "fast money." surprising bright spots with a look at energy. the top performing sector up more than a percent. berkshire ups its stake and option traders are betting there's plenty more to run. mike khouw joins us with the action. what did you think? >> we saw that 1.7 times daily call volume, the busiest contract was a weekly 62 spread call over 16,500 representing 1.6 million years trade for 82 cents a contract.

betting on a rally that could extend through the end of the week and longer dated call buying as well. >> do you think the thesis behind it is continued improved action or is this a buffet chase? >> yeah, so it's interesting you mention that, because this was definitely amongst the energy names, the one that saw the most extraordinary volume so two things going on, of course, we saw that upgrade. that played into it. the stock has been hard hit recently, of course, the fact that berkshire is acquiring it is also a positive. despite the fact that the volumes in the other names were more muted overall in the energy sector the flow was bullish today. >> right, how does it compare to chevrons, other names in the space? >> yeah, that's interesting, you know, the chevrons and exxons and big integrated names are basically proxies for their reserve, you know, in the case of other name, marathon petroleum saw bullish activity. some are more specialized and often many times traded at

discount relative to the basically the best of breed kinds of names which would include the two you mentioned chevron and exxon. >> one thing, guy, the parlor game of what berkshire is up to all over the street. >> listen, everybody ran into it at the fall. it's traded -- i think it was a it's traded -- i think it was a $57 stock a couple of weeks agor

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xfinity rewards creates experiences big and small, and once-in-a-lifetime. don't miss healthy returns. lear about the latest in health care investment opportunities from the top leaders in the industry. you can scans qr code or register to visit cnbc events.com. let's turn to one last market bright spot. that's restaurant stocks bucking the march malaise showing strength even as the rest of the market looks for direction. kay rogers joins us with details. >> as you said we've seen continued resilience from a few names from the restaurant sector in the month of march. mcdonald's 2% off its all-time high. last notched in november 2022, a tame historically that's done well in downturns.

yum brand's competitor fresh off its highs. chipotle pacing for its best quarter since q2 of 2020. they've maintained pricing power and consumers have stuck by it even through stubborn inflation. domino's also up 10% month to date on pace for its best month since november as well. meanwhile, papa john's is down 10%. wingstop up 7% for the month, 33% year to date. that company had noted deflation in wing prices, you don't hear ha often. that has helped to bolster earnings and one casual name, darden up over 7% month to date also hitting a new 52-week high thanks to its pricing strategies, as well. >> thanks. kate rogers, let's -- is this about people trading down from fast casual or something else behind it? >> i have a chart and wanted to

make the general point. they are a lagging economic indicator so i charted restaurants relative performance up against a leading economic indicator in manufacturing pmi so you can see it follows it there but with a lag so we are just getting to the point now where you should start to see pressure on restaurants relative performance. the intuition is restaurants are more correlated to the labor market. the labor market is the last shoe to drop so when that shoe does drop that's when you finally see pressure on the restaurant so i think that's what we have in front of us. you can delineate between, say, mcdonald and a and a chipotle but i would be fading restaurant if you wake up thinking about the market and want to make the right moves fast... get decision tech. for insights on when to buy and sell. and proactive alerts on market events. that's decision tech. only from fidelity. - double check that. that's decision tech. eh, pretty good! (whistles) yeek. not cryin', are ya? let's tighten that. (fabric ripping) ooh. - wait, wh- wh- what was that? - huh? what, that?

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defensive, stay there, mcdonald's. >> karen? >> yes, xle.

i feel like nice today to have it outperform but still got ways to go to make up for tomorrow. >> first time ever in cnbc the two smith fans in the united states. >> shoutout to the smiths. >> palo alto. pan america silver. paas. >> you always make it fun. thanks for having a visitor, jeff, guy, tim, karen. thanks for watching "fast money."