treasury just earlier in this hour, certainly going to be raising eyebrows on the street going to see how lawmakers and investors react to that date, which we know from kayla is concerning >> and it didn't mean that june 1st is the x date, maybe more of a y date watch out for it >> that's going to do it for us. >> "fast money" starts now right now on "fast," jpmorgan acquires first republic does this end the banking crisis and did jamie once again come out the big winner we'll debate that. plus, a weighty move a deep dive into a pharma move can it keep delivering record-breaking returns? we'll ask the top analysts. and later with a host of names reporting tomorrow, how the options market thinks starbucks, ford, uber and amd are going to report. i'm melissa lee, this is "fast money.

we start off with the very latest developments on the debt ceiling. treasury secretary janet yellen just minutes ago sending a letter to congress says debt limit measures may run out as early as june 1st, that's earlier than anybody expected. kayla has the details. >> melissa, janet yellen said that june 1st is the date at which the u.s. could default on its debt and be unable to pay its bills unless congress raises or suspends the debt limit now, the new x date is four days earlier than secretary yellen's prior estimate and it comes after early assessments of this year's tax revenues. in a letter to congressional leaders, yellen writes, given the current projections, it is imperative that congress act as soon as possible to increase or suspend the debt limit in a way that provides longer-term certainty that the government will continue to make its payments the white house today dug its heels in, demanding raise the debt limit with no strings attached, despite republican support for budget cuts. house speaker kevin mccarthy and

president biden last met on the issue three months ago it remains to be seen which side will blink first, melissa. most wall street shops estimate that the debt ceiling issue would come to ahead in late july or early august we know treasury's estimates are always conservative, but this is the deadline washington is moving forward >> and it takes into account extraordinary measures the treasury could take? >> yes treasury has been taking extraordinary measures since january when the country first brushed up and surpassed that $31 trillion plus debt limit, so, it's already been using extraordinary measures for the last several months. it's been prioritizing some of the government programs that it's been funding, the contributions it's been making to government employees' retirement accounts, for instance, and there are going to be other changes in the next few weeks, but the secretary is warning, there really aren't many measures left and they'll run out of them completely >> wow kayla, thank you

kayla talk xie from washington this is a month, a month more than what wall street had been expecting. this has to scare some people. >> yeah, people are thinking july to september, you know this is not a big deal -- anyone who is, you know, sitting in a chair in wall street, anywhere in the country in the summer of 2011 remembers what it was like when everybody blinked. it was really part of a global sovereign debt reassessment. but this would be horrible that's needless to say what's really interesting are the politics behind this clearly, if you think about it, you know, gop kind of pushed the white house's hand in terms of agreeing to, okay, we'll give you a year increase, but you have to cap spending and you have to cap a lot of those kind of flagship and some of biden's biggest pieces of legislation, so -- yeah, we're digging in here market's not pricing it in >> divided government looks like there is a way to assert it,

pass the republican plan for a year, see what happens, right? >> that's it but that's not the way it works. >> 60% of the people in this country think that the government spends too much money. so, this is not a minority that we're talking about. and they're cutting the budget by 9%. for a year on $34 trillion in budget. i'm pretty sure they could handle that. >> say we live in a world where steve grasso is right -- >> we live in a democracy, though, and the democrats have undivided government, now they don't. >> the problem is, that's probably not going to happen and that's just the fact of the matter as rational as you may sound, and you may think you sound, it's probably not going to happen so, that's the world that we live in, so, what are the markets going to do? >> i think realistically, this is going to come down to the wire it always does it's a political football, especially in a year like now when we have elections this is something they're going to use i don't think necessarily markets are going to trade on this until we get close to this. this is going to be a

conversation by the end of this month. but yeah -- >> vix was at 1550 on the low today. we haven't been here since, you know, way back into 2021 before the fed even embarked upon their plan >> yeah. karen? >> well, it is kind of ridiculous we all know it's going to get to this at the end. why not just do it now, right? i mean, it is -- it's not like -- the balance of power is going to change really in the next month, but unless they come out with even more ways to delay, and that will work for a week or two. i really don't get the whole thing. but one other piece of data that my friend andy sent me was, the deficit is rising more rapidly than we thought, right lower tax revenue and higher interest rates and so the amount of additional bonds that will need to be issued to pay for the deficit, well over a trillion dollars now, so the bond market should be pretty spooked. and that came out later today. the bond market was already down this morning, i think, on some

of that economic data that i thought was pretty good, but i wonder, though, in a default scenario, i don't remember what happened in '11, actually, but was there a flight to quality? >> even though bonds would go down, would you still -- >> yes, there's a flight to quality. i don't remember, somebody knows, at me, because i could see that happening turmoil in the bond market -- >> right >> but we're in steve's word >> well, steve's world, you have to do something. we're all in agreement you have to do something, and you nailed it the balance of power is not going to change, so, maybe the president and mccarthy can possibly meet. >> exactly >> maybe they should meet. the last time they met was early february, so, nothing is changing, sit down at the table. if it's not 9% in cuts, maybe it's 4%. but it's got to be something and we got to agree on it. >> i don't know, can you do wednesday, mccarthy? i got -- can you do june >> oh, i have the default. it's on the calendar

>> you ever have an asimsignmen you wait until the night before? >> and that's what the markets do, they wait, as courtney said, until the night before to see what the real reaction is going to be. and every time we get to this point, i say the same thing -- this really feels like the time we're going to default this really feels like -- >> to karen's point, though, what do you think happens? this world -- >> well, i'm ready to answer karen's question, because i went to work here i didn't know it nobody else did, either. we went from 3% on the ten-year down to 150. and if you think about, there were a lot of things going on. and to me, what was more significant about that time was mario draghi stepped forward and made a semblance out of chaos, so southern europe, they were about to -- they were the ones that were about to have the sovereign debt default we were doing our thing over here and as we were all saying,

we will continue to do up until the last minute, but it is a flight to quality. and at some point, if you own gold and bitcoin and other diversified efforts where people expect the world to go at some point, until u.s. is the economy in the world, if china is number two, and -- china is not even close in terms of a bond market and the confidence there >> using that as a blueprint, then, we have an interesting push-pull situation where the fed is getting rates to go higher and yet you're saying that the bond market will work against the fed and rates will go lower, if history is a guide? >> i they's right. karen also, though, brings up -- i think before we get there, or, you know, flight to quality is what it is, but there are technical factors that have yields going higher, in terms of issue issuance the same people that are in favor of bit coyne and gold,

they are saying the u.s. is not going to be able to finance their way out of this the way they used to they're not going to be able to do it with the costs being as low as they used to. let's go to jpmorgan, winning control of first republic shares up more than 2% on the day, but gains didn't help the broader banking seconder to. the kre banking etf dropping more than 2%, closing less than 2% from its lows of the year that's the kpe, excuse me. regional banks less than a buck from its low jamie dimon once again emerging as the big winner? karen, you seem to think so. >> i do. i think this is really an extraordinary deal there are so many things to like about it, right? there's so much protection from the fdic, they get to write down the loans, a loss-sharing agreement from five-years on residential mortgage, seven years on commercial mortgages, there's -- there's so much to like here, i think they were

really kind of sandbagging the -- how good the deal was, because they don't want it to seem too good. and then, obviously, the wealth management business, it's a prize, it's probably a little bit dented from where it was six weeks ago, but that can fall very nicely into jpmorgan asset management and he looks like a good corporate citizen and -- >> sure. >> solves the crisis. >> hero. >> once again. >> right >> he always says, it wasn't just me, every other bank was on that call, they were all in to make deposits, we all did it together, they just called me first, but everybody was working on it, but that's true >> everything has its fingerprints all over it they called him first. they -- and they're going to call him first when all the regulatory framework changes, as well, and not that he's going to advantage jpmorgan more so than other banks, but he's definitely not going to disadvantage

jpmorgan over other banks, either this is the one trade that i'm holding onto his stock has outperformed everything in the group. >> yeah. >> one other thing i just wanted to add, because there is this backstop from the fdic, plus they give him $50 billion of cheap loans, we didn't get to that, the risk-weighed -- the waiting for these loans is less than it would normally be, so they can lever up and make more money. it's a fantastic deal. >> i thought something very interesting was -- pnc was in there, as well, and yet their stock was treated as if they were a bank that should be bid for. if you look at some of the banks that were actually -- at least considered to be on that group, pnc, citizens, fifth third it wasn't a great day for almost anybody in the banking space other than the money center ban eggs the regionals sold off some more and if anything, as jamie dimon said, this should solve this situation for now. it's kind of what he said. at least the phases of it. i don't think he was foreboding something much more ominous, but

i do think the point was, this should put a nail in the kofl fin on runs on banks and yet, again, one of the bank that was in there bidding and claimed to have a competitive bid, they were down 6% today >> one last thing, i know you want to go to courtney, the thing that will continue the run on the bank is if the fed continues to raise rates and people continue to usher money out into money markets, that's the one thing that's the problem, it's not so much what's going on with running in to rescue these banks, the fact that the fed is creating the run on the banks >> courtney? >> that's what we're going to see, the fed raising by 25 basis points or not. this was happening before silicon valley banks we were getting calls every day asking clients to buy, and the banks are going to have to raise interest rates in order to keep their money there, because this was a problem. that's not going away. it gets worse every time the fed raises interest rates. when it comes to jpmorgan, i think this is really beneficial for them the biggest thing, which karen

mentioned, this really gets them in the door with the wealth mansi management business. they can compete now, because they just gained all of these high net worth assets and the clientele, they were still keeping. so, i think that will be interesting to see >> i agree and it was -- it's that wealthy clientele that's very important. it was the bear stearns prime brokers. jpmorgan is a massive prime broker that are much different than they were back then back then,custodian, one of their core businesses so, jpmorgan doesn't have to say, i've got the capital. fdic went to us, because we have the lowest impact on the cost to them on this solution. but it is, as courtney -- the wealth management business is such great business for jpmorgan it's the one business, if you look at their ivory tower, and it is ivory, has some places to

compete. and to get better against the biggest ones in the country. >> morgan stanley had the advantage because of its wealth management business. >> but also, it these stock price advantage, to the extent that it's -- that part of the business as opposed to the l lumpier part of the investment business there's the notion that, is it the end of the crisis -- the fdic has kind of said, we're going to insure uninsured deposits they -- there isn't a new regulation thing -- >> proposal saying business accounts should be able to step up to higher insurance brackets to have more of their deposits insured. there are a lot of things going around but you have to hope there's another bank failure >> you can rest easier as a depositor in excess of $250,000 now, likely that the fdic will be there >> there's been an implicit

backstop the whole time. >> during the first two. but here we are six weeks later, another one that was -- and there they are >> well, they have to -- >> they have to. i agree. >> there's no other step jpmorgan will take who else is going to go in -- this is not a solution in a systemic sort of way in a sort of, this is the blueprohiint ho we -- >> that jpmorgan -- >> jamie dimon picks up the assets this is not a sustainable model. >> when he put together a consortium of banks to give $30 billion -- or lend $30 billion to back them up, it shows that jpmorgan was in on this. they wanted this solution. jpmorgan, the stock, i want to say, for all the pain and suffering in the banking sector, if you look at jpmorgan against the s&p over the last 12 months, it's outperformed the s&p by 17%. i'm just using 12 months back. you can find different places in

the last two years where it's really underperformed, but it's been fed heavy and the worst of jpmorgan's underperformance in the year before that was really as the fed -- as the rate hike cycle began in earnest and was aggressive and since then, even with higher rates, jpmorgan has been outperforming. it's getting better, even if the margins are going down >> all right, for more on the banking crisis, let's bring in jim bianco. we have the banking crisis going on, we've got this new x-date, which has been moved up to the beginning of june. how do you think this factor's into the fed's decision, if at all? >> i don't think it does i think that the fed is focused on inflation and they're going to raise rates and they're going to leave the door open to raising rates again in june. now, i happen to think that's a mistake at this point, but it doesn't matter what i think. that's the way they've been doing it i'll remind everybody that february 14th, there was a meeting, this came out with the

report on friday, the governors of the fed, jay powell was there, they were told that the banks were getting unrealized losses and they were in trouble and they pointed out a specific bank that was in trouble, silicon valley bank. three weeks later, he went to congress and said, we're going to raise rates aggressively, 24 hours later, they failed so, he's not worried about the banks, it's all about inflation. he sees inflation has a problem, he's going to raise rates this week and leave the door open for more rate hikes. >> you don't think the x-date gives the fed a little bit of -- to the extent that monetary policy should help fiscal policy and vice versa, that's gone hand-in-hand, but there's going to be a dovish hike, a raise, but then we'll see >> well, i don't think that the x-date is going to really matter yes, it is a big surprise that it is early june

a lot of people thought it would be around late july or something like that, so -- that is a surprise jay powell has made it very clear and i've agreed with him that the fed's position about the debt ceiling is to do nothing. this is 100% political act, and it needs to be solved by congress without any mitigation by anybody else in terms of trying to fix this this is congress's issue, this is not the fed's issue, so, i don't think that's going to change and he's talked about fiscal dominance, that's fancy talk for, we're not going to let the possibility of a default or big deficits change what we think is the right monetary policy. >> when you look at the two scenarios, the fed continues to raise rates and continues to break something, or they don't, inflation continues higher, those two scenarios, won't inflation, high prices, won't high prices save themselves from other future high prices

take me down, just really quickly, if he does nothing, what's the difference? >> well, i think the way that he looks at it is that 57% of the public, and this is a recent survey by bank rate, lives paycheck to paycheck they couldn't come up with $1,000 in savings. so, he looks at a 5%, 6% inflation rate and says, these people lose. i have to do something about inflation. if a bunch of rich people and stocks have to suffer because i'm raising rates too much, then a bunch of rich people and stocks have to suffer, because i'm raising too much he's not going to say to the 57% that live paycheck to paycheck, sorry, you just are going to have to deal with having prices rise faster than your paycheck, because i can't let the stock market go to 3,500 or whatever scenario you want. he doesn't look at it that way he's focused on inflation, and that's the dilemma if he focuses on inflation, then financial markets could struggle he lets inflation go and he's

viewing it from that 57% versus stockholders he's made that clear in a lot of his speeches and press conferences. >> jim, let's say we hit the debt ceiling, about to hit the debt ceiling, what happens to bonds? >> what usually happens around june 1st is all the treasury bills that mature on that date, people will avoid them and there will be a big hump in the yield curve, because if you don't get paid on those bonds, your money market fund has to value wait at zero, even if it is one or two days, so, no one wants to be in a position to break the buck so, you're going to see wild guy rations in the treasury bill market so, it's more of a headache for mutual fund managers than anything else. i don't think it creates a bid for the ten-year or a selloff in the ten-year, anything like that >> all right, jim, thank you jim bianco well, if the fed says, you know what, it's a political problem, i don't think anybody has much

faith in congress to solve this thing, but that really leaves the markets in the lurch, because you're not going to get any help >> well, we want our central bank to be independent it's not independent in turkey they have a different situation going on the fed has the dual mandate of core inflation against unemployment you have a dynamic where i feel like they have to lean on inflation. we forget that today we had an ism number, we know we're a service economy, manufacturing is kind of what it is, take out two inflation -- sorry, covid lows and this was the lowest ism we've had since going all the way back to the financial crisis the numbers right now, the leading indicators, tell you the economy is not in a good place, and the labor market figures we've gotten in terms of job legislation claims and what not, have been showing a weakening labor market, so, the economy is weak ng. we know that and i just think that's -- we haven't really seen it in the stock market. coming up, watching mgm in

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welcome back to "fast money. earnings alert on mgm. turning in a beat on the top and the bottom lines the stock closed at more than 52-week highs in the regular session. contessa brewer has the latest from the conference call >> revenues nearly 50% higher than the estimates it's all important earnings metric, adjusted property ebita, more than double it's one of the best quarters ever he pointed to a big jump in market share in ma coe since the pandemic, from 9.4% to 15.4% and said he expects to keep that share, because mgm china has been awarded a third more tables in the concession process, and only about half are in use domestic operations, the vegas strip came in with a record first quarter result for mgm,

increased profit margin, driven higher by revenue per available room, and the average daily rate is up 31% over last year, and they said on the call that the bookings are up every month through november ridge nall casinos, steady mgm expanding its interview national footprint its european subsidiary announced it is requiring push gaming, and then, of course, the focus on developing that new casino resort in osaka, japan. it's clear that this is a company that is intending to use its free catch flow and reinvest it, melissa, to make its interview national footprint even greater than it is. >> contessa, thank you contessa brewer. casinos had a probably good day, up 10% and mgm up 2.5% >> mgm is the most diversified casino play in there, in that their macao business is much

better sports betting is much more meaningful, and the competitive forces are calming down a little bit. the numbers out of macao, though, gross gaming revenue came out last night, 449% year of year. i realize china was closed, but up 15% from march. anything that's got core exposure, this is, to me, probably the sands, how i've been playing it a long time, and i bought tosome melco crown we have vip, all the things that i think build into that story, and i think that's up. >> so, i am in mgm and, you know, when i got into it, i liked it for its not being so heavily weighed in china, and getting into the online and las vegas would come backened and however, what's happening in china now, that's -- it's not anal ba tros, it's great they

have exposure there and really doing well, but if, you want to be turbo charged, you have to be where tim is >> vegas sands, yeah >> the only thing negative about this -- obviously las vegas sands and wynn have an outsized dependency towards macao mgm is leveraged here and building that leverage they are dipping into online more and more, because it's tougher to build out the footprint of what's already there. tougher to get the licenses. everywhere where the growth is, the problem is, if we go into a recession, how much does that hurt where they're weighed the most, which is vegas so, that's -- the chart looks excellent, for the last year, chart looks excellent. the 50-day broke above the other longer term moving averages. ering everything on the technical basis looks great. i'm thinking it's looking too good maybe you wait to see how the recession pans out for new money. breaking news, we have to get to d.c. and kayla tausche an

the details. >> melissa, president biden has spoken with all four congressional leaders from both parties and set a meeting for may 9th to discuss the debt limit. that is a week from tomorrow now, this comes as house speaker kevin mccarthy is traveling in jerusalem, as the house is out of session this week but it also gives the white house and democrats a little bit of time to come up with their plan to counter what republicans passed last week that bill raised the debt limit into 2024, but also introduced some across the board spending cuts and reversed many of biden's signature policies democrats so far up until this point have argued that there should be nothing attached to the debt limit, it should be raised with no strings attached and that the budget process should proceed we will see if they can cobble together a counteroffer in the coming days, or if they'll continue digging in their heels. melissa? >> kayla, thank you. president biden is set to host a reception within the hour, this is a picture, live picture of the east room, we'll be

monitoring the event in case he does make some comments on the new developments regarding the x-date being moved up by janet yellen to the beginning of june, as opposed to what many expected, sometime in july or washington, so, we will monitor this as this happens bring you any developments as they do. it's getting real, courtney, i mean, may 9th, that's next week, but three weeks later is the x-date >> and people were expecting we had another month or two it would be shocked if anything happens may 9th. that would be wonderful this is going to get pushed until the end of the month, at least, so, i think it's going to be a continuing story >> all right, there's a lot more "fast money" to come we'll be right back. trate our unmovable strength? (eagle call) nope. how do we show that we'll stand tall through the storms? nah. (thunder) how do we make our clients feel secure and- ugh...

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welcome back to "fast money. japanese markets in rally mode today. the nikkei hitting an eight-month high while the broader topix surged by a percent, touching its h highest level since september 2021 european markets were closed today, but those stocks in a tear in 2023 french and german end sips posting gains of more than 14% each and toutpacing the s&p 500's 8.% gain since the start of the year new leader at the top of the boj, tim >> yeah, it's a combination of currency dynamics and what's going on internationally and someone that spent most of his career on the interview national side of things, i think some of this is very sustainable. not just some of the trend in fact, you've seen the underperformance of the euro stocks 50 against the s&p. so, they're dow 50 basically, the biggest and the

most bulletproof companies in europe finally after a decade of underperformance, as the dollar was topping out, started to outperform, so, i think companies that are paying, you know, a growing cash yield and dividend yield in the interview national arena and i work on an etf that just does that, where else would you want to be to have some part of your money as the world is looking for value and also cash flow >> yeah, i think a lot of people don't realize how well europe has been doing specifically france is your best developed market year to date. about 19%. a lot of that is benefits, they have a lot of luxury goods and china reopening is benefits from that europe and japan, i think they're a great buy right now. when you look at earnings relative basis, 30% cheaper than the u.s. right now especially as we have this 15-year uptrend on the dollar, looks like it's starting to reverse. only going to be a positive for europe as you move forward you want to continue to look there. coming up, earnings season in full swing. and options traders are getting

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welcome back to "fast money. stocks losing team into the close. the dow down, the s&p veirtually unchanged. chegg issues a disappointing outlook. shares down more than 30%. nxp semi, beating expectations, up 4%. car rental company avis posting a massive earnings beat, but shares are flat. check out eli lilly breaking out to a feresh all-time high joining us now for more on the stock's big run and what could draw the results even further. a buy rating and a $440 price target on lilly. can you help us understand what part of your evaluation is

mounjaro and what part is the promise of alzheimer's >> thank you for having me my model mostly is driven by mounjaro, and that's a small part of the business i would say it's probably contributing 10% to 15%, not more than that, it's pretty much driven by mounjaro at this point. >> so, basically, later on this year, when eli lilly is expected to give a readout of the alzheimer's results, if that's positive, that could be just upside that's not factored in at this point >> right i would agree with that. i think at least 10% upside when eli lilly shows alzheimer's data in first half of the year. >> okay. can you help us understand how mounjaro stacks up right now with some of the others out there, in terms of, you know, what is -- what is driving it right now? is it -- has it been production issues with some of the other drugs that are now cleared up and so how is that sort of playing out? i'm just trying to understand what exactly has driven the uptake and what will continue driving the uptake going forward.

>> so, i would say it is pretty much demand-driven right now the demand is such for these products and it's for the right reasons, because mounjaro, if you look at the weight loss profile, if you look at the diabetes profile of the drug, it is much better than what we have seen with any other drugs. so, just to give numbers here, mounjaro, among obese patients, it showed as high as 22% weight loss, and among diabetes and obese patients, it showed 16% weight loss. that's unheard of. that's not something that other drugs do and that's why -- that's why it is -- the demand is such that even mounjaro is running into supply issues, other agents have improved its supply and so did mounjaro, because this quarter call, people are worried about going into the quarter call and worried about the supply, if

they are going to beat the numbers, and they actually did beat it, which tells you that the supply is improving at this point. >> it's karen. thank you so much for being on when they get to full production and that that's no longer sort of an obstacle, what do you think the coverage will be how big of a hurdle is that, what are you expecting from insurers, the government, in covering either mounjaro, in whatever form? >> right, so, for now, it would be a while before they get to a position where supply is not an issue, because by the end of the year, they are still looking at doubling the supply, so, probably that demand will probably be more than that, but eventually, i think the biggest obstacle is medicare, especially for obesity, because half of obesity patients are medicare, and medicare doesn't cover it. i think that hurdle will be removed -- there's a trial

that's looking at whether reducing this weight among obese patients results to a ca cardiovascular benefit if that turns out to be positive, that is going to be one of the important trials which actually removed that obstacle, because then these are not just weight loss drugs, these are the drugs which reduce your weight and help you live longer or maybe have a cardiovascular benefit lon long-term. >> have you, or when do you start, thinking about, you know, people take these drugs, they're not obese, they may not develop diabetes, they may, you knoll, reduce the severity of diabetes and reduce all of these other side effects down the road, and what the impact is on other drugs and other sales of other drugs that can treat some of other things that will now be prevented? >> i think -- mi mean, i think that would be a dream scenario we are aways away from that

playing out, but if you give it to pre-diabetic, that could be stopped. so, that would be -- that would be a scenario that could play out, but i think we are probably maybe ten years or more than that away from that. >> ten years okay thank you, mohit, great to speak with you >> thank you for having me >> where do we stand on lilly here >> i tell you, it's hard to turn away from astock that's made s much money we've been long our clients and it's -- but at 44 times current year, it's really tough here and again, so much has been priced into mounjaro and the aggressive market, we don't really know where it is. i guess -- i look at the dynamic here on valuation relative to a peer group and not everybody has the pipeline, it's all about the growth here and where you are more excited but i think i'd be starting to fade this. >> courtney? >> i do like the pharmaceuticals in germ. this is something that was

underappreciated and people are starting to come back in i think it's valued a little higher i would like something like a merck, which is a lot less expensive and they still have a lot in their pipeline moving forward. but the pharmaceuticals is somewhere you want to be >> the problem is when you look at ely lieli lilly's chart, it' been on fire since february 2022, based at 237, took off when they approved their covid treatment, then it based at 310, and now it's still off to the races, so, when do you bet against it yes, multiples are looking a built expensive right now. but i say go xbi >> this stock's gone up four times in the last five years, though why own bitcoin when you can own lilly? >> and it seems like it's best in breed it seems like they are treating it best in breed the other thing that hasn't moved is xbi the eft for small cap bio tech if all of the other names are going to have to start buying pipelines, then some of these

are going to have to start getting taken out. just look at prometheus, what happened to that stock that's going to happen again >> big risk, though, if all these -- i guess if you are buying the targets and you are going to buy a broad index, may not get the boost from being a specific movement. but alzheimer's, that's an option here. if you are positive, when they have the phase three readout, but great richlgt now, it's really nothing in valuation. >> i think that's a reasonable sort of conservative, really driving this story, though, is, right, is mounjaro, so -- i mean, i -- i sold it early, bought it well, but sold it too early. i don't noknow, given the numbe, the 22% is bet thaern better than ozempic, so, maybe, i don't know, their only -- not their only, it's -- it's the bulk of their business by a lot.

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well, uber gist one of the many earnings headliners tomorrow joining starbucks, ford, and amd. the options market is betting on big moves when these names report mike khouw's got the action. mike >> yeah, we are, indeed, seeing some big implied moves for all of these amd's going to be reporting, looking at a 7.5%, fstarbucks, 5% i'm looking at starbucks this one traded more than 1.5 times its average kday by put volume the busiest call contract were the june 115 calls we did see some two-way flow, but i saw an institutional buyer b paying $5.20 for 500 we saw 20,000 of those trading >> tim, you are a shareholder, you are an angry customer -- >> consumer. >> disgruntled -- >> inflation >> that's exactly why you on it? >> it is and i'm not sure they're going to be able to hold these prices and hold the margins, because

they've been extraordinary, especially in north america. we talk about the risk of some of the china growth. i look at the chart, and the rsi on starbucks, nine-day rsi, retalk about relative strength indicators, they give you a sense of how overbought a company is, but for the last month, this company's been north of 80 on an rsi, and it's trading at 88, never been this high valuation, it's tough for me, even though i'm still long just a little bit >> and paying $7 for a black coffee >> more than yeah sure >> mike, thank you mike khouw for more options action, the full show, friday, 5:30 p.m. eastern. gm getting a boost could shares be about to turn the corner we'll trade that when "fast money" returns thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading.

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welcome back to "fast money. time for our call of the day gm shares hitting the gas, as morgan stanley analysts upgraded the stock to 13% higher than today's close. the market has sufficiently discounted the challenges to making money in evs.

separately, gm announced hundreds of layoffs today, from its engineering hub in detroit, as the latest cost-cutting measure. you guys were psyched to talk about this one on the call, karen, why >> some love maybe for gm. it's rodney dangerfield of the auto space, for sure you know, i -- i love adam as an analyst. this is kind of a big turnaround for hip. i believe last year, he had the internal combustion business at zero it's a melting ice cube, as tim -- >> very clever >> very clever >> i'm not surprised >> it's happening a lot more slowly the margins are tesla-like, in that business, but you know, clearly all eyes are now on the ev even though they got this enormous successful, huge profitable business, i still like it here, but i've liked it for a long time. >> we're big jonas fans. he's pointing out that mary can run this business as efficiently as any and i would argue that when ev

multiples were even a little bit priced into a ford and obviously in tesla, gm didn't participate that on the way up, and they're participating on the way down. and it's crazy so, his point on the melting ice is that they're going to generate tens of billions in profits, and free cash flow in the next decade from that business >> 15 seconds, would you rather, tesla or gm? >> tesla, no brainer after getting bombarded is still up 30% year to date. gm is flat, and gm and ford are both going to have to be pushed into cutting prices the way that tesla did. up next, final trades. a cutting-edge data-security enterprise. yes, with a slide. a perfect location for the world's first one-hour delivery. an inspiration for the next workout cult. and enough space for a pecan-based nutrition bar empire. it could happen.

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time for the final trade >> disney owns a sports network, does it? >> espn. >> wow big game seven let's go rangers tonight go disney. >> karen >> i got to go with jpmorgan very nice deal >> courtney? >> starbucks i think actually ahead of earnings, weevil c'll continue pricing pressure >> steve >> unh

it's prone to have big ups and downs. it's had tremendous downs. looks like it's sort of stemmed the losses expecting higher prices going forward. unh. >> all right thank you for watching "fast money. see you back here tomorrow at 5:00 meantime, do not go anywhere, "mad money" with jim cramer start, right now "mad money" with jam cramer starts right now. my mission is simple, to make you sun i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now >> hi, i'm cramer. welcome to "mad money. i'm just trying to save you money. my job is not just to entertain, but educate and teach you. we have heard from two-thirds of the companies in the dow jones