cnbc.com/otoh. and i will send that out in just a bit. you sign up now, you'll actually get to see it later. that's going to do it for "overtime," on a day when the markets were higher. we'll look ahead to what's going to happen, and, of course, that gm interview coming up in a few minutes. "fast money" begins right now. right now on "fast," tesla's new charging partner the ev giant inking a deal with gm to add the automaker to its network of charging stations the details, and a live exclusive with gm ceo mary barr right away. plus, bay area blues retailers closing due to crime and office buildings, is there a path to bring the bay city back from the brink and later, the air in the northeast may be starting to clear, but the insurance industry is hardly breathing a sigh of relief a look at the summer fears beyond these canadian wildfires. all that, and a chart of the day

from the scrap heap to firing on all cylinders. is this move too good to be true i'm melissa lee, this is "fast money. i'm on the desk tonight, tim seymour, karen finerman, dan nathan and guy adami we start with the major partnership between gm and tesla. a special deal to use tesla's charging network and technologies tesla and gm shares both getting a boost on the news here phil lebeau is here with the cnbc exclusive interview with mary barra phil >> thank you, melissa. let's bring in mary. i just heard the twitter spaces conversation you had with elon musk why now? why did you make this decision that it's the smart time to say, we're going to go with the tesla charging standard? >> well, phil, appreciate the opportunity to talk to you today. and it is really good news from a customer perspective but when we looked at the situation and looked at, you

know, really, the north american charging standard , i think from a design and performance perspective is better for the customer and when you think about the fact that, you know, ford, general motors, and tesla are all now on this charger, every american automaker, i think this goes a long way to getting the right standard for the united states, and i hope others will follow, but i think this is really important, because from a general motors perspective, this almost doubles the amount of chargers that the gm customers will have access to, starting, you know, in spring of '24 >> mary, did ford's decision a couple of weeks ago to go with the tesla standard influence your decision, and how long do you think it is before ultimately the auto industry and everybody in the ev world says, let's just go with the nacs standard >> well, i think, again, when you look at the fact that, you know, three pretty large companies are saying that they're committed to that

standard, i think that goes a long way for -- for others to follow, and i hope that they do and i hope this does become the north american standard. you know, clearly, it's going to have a lot of momentum, when you think about, you know, what we've announced and the fact that, you know, we're on plan to have a million evs for sale in '25, and this will have our first vehicle ready in '25 and then quickly switch over the entire fleet importantly, you know, it starts for the consumer, you know, early next year. so, i think when we looked at everything and, you know, good ideas can come from anywhere, phil, so when we focus in on what's best for the customer what is going to be best for the industry, we thought this was the right move >> mary, you're an engineer, and i know you've seen a lot of public charging stations in your time you know what the reports are out there. they're a mess about 20% of the time, people don't even use them, because they can't make them work or their credit card doesn't work what's the problem how did this become a stumbling

point, if you will, for ev adoption in this country >> well, you know, phil, i agree with you when i talk to consumers, and i talk to a lot of them and when i see what we have, there is a frustration of, you know, when i get to a charging station, is it going to work? and is it going to be available? and then is it going to work and i think this moves a long way to getting us there, you know, when you look at the reliability of this charger, i think that's another point, but one of the reasons we have the very strong partnership with pilot flying j is the fact that it's going to be -- the chargers that we'll install there, and we'll be talking to them as a key partner on, you know, the standard we think that would be good for them and for general motors, that there's going to be someone there who immediately knows, it is working and i think there's a lot more to be done to be monitoring. and we're going to work with all the ecocompanies that are in ou partnership and comprise the chargers, the 13,000 fast

chargers that are available for our consumers, to make sure they are improving the performance overall, because you are absolutely right, it's so important. and phil, one other point i want to mention is, you know, general motors is aggregating. if you have a chevy bolt, we're going to have the my chevy app that will allow the chargers to be available you can pick your best route we're going to make sure that, you know, we can make it easy to pay, easy to reserve, so, there's a lot of work to be done, but i agree with you, it has to be done quickly to enable ev adoption. >> mary, it's melissa lee at the nasdaq market site how do you share the cost or revenue of the charging network with elon musk, with tesla and does this mean that you might be partnering in the future because elon musk tweeted just recently on the heels of the ford announcement that he would be willing in the future to license other tesla technology, like full self-driving and auto pilot. >> well, i think -- fgeneral motors has crews and we're already operating level four

autonomy in three cities with two more being added, but you know, of course we're going to always look for ways to be more capital efficient, and this -- this arrangement alone, this collaboration that we're doing, nearly doubles the amount of chargers that our gm customers will have access to, and frankly, we think we can save up to $400 million in the original three-quarter of a billion dollars that we allocated to this, because we've been able to do it faster and more effectively, and we're looking at ways that can be for capital efficient. if there's other opportunities to partner, you know, we're going to be very open to them, in addition to this collaboration with tesla, we have a very important collaboration with honda, we are demonstrating that, we're going to continue to do that, because i think being capital efficient in this environment that will allow us to get the best evs out to the market is crucial in this transformation

>> mary, it's phil i have one other question for you. we are just a few months away from the uaw contract expiring and you've heard the comments from the president of the uaw, basically saying, hey, look, you and the rest of the big three have had big profits over the last several years, and that it's time for you guys to quote unquote pay up when it comes to the rank and file members who are building gm vehicles are you confident you can avert -- avoid a strike in the fall, given the rhetoric that's already out there from the uaw >> well, you know, phil, i think it's important that we actually get to the table and we start to problem solve. of course, we have differences, but as you talk about record profits, one of the things that i'm very proud of is, we've shared that with our employees from a profit sharing perspective, so, they've done quite well in participating in the success that they are

important to when i think about the men and women of general motors and the fact that just a few weeks after we, you know, shut down, when no one knew what was happening in the world with covid, they came back, theyfollowed the safety protocols, and really, you know, just did a phenomenal job. so, i couldn't be more proud of the men and women of general motors that work in our -- whether it's our factories, our warehouses, across the company and, you know, we want to make sure that we problem solve, again, we want to find a solution that's good for the company and our employees. because we need to continue to reinvest right now, we've made some important announcements about reinvesting in these plants, because i think job security is very important to do that, the company has to be successful, so we can develop new products that customers want to buy so, i look forward to being able to have conversations and work through the issues that we have to get to a successful agreement.

>> mary, i've got a question for you regarding twitter. when you tweeted about this, the spaces that you're going to do with elon today, that was the first time you were back on twitter since october 27th, i believe the day it was, when elon musk took over. at that time, gm discontinued advertising on the platform. are you back on twitter? is gm going to continue its advertising? >> well, we've been on twitter, especially for our customers, as they have questions, as they have comments, as they have issues, so, we've been on twitter all along. we're in the process of reimagining marketing. i think it's known that we are in the market to bring in a new head of marketing, and so, i think that's a good question and will be one of my first questions when this new person joins the gm team, so, i definite ly think it's possible >> mary, thank you for joining us today gm ceo mary barra joining us from detroit on a day, melissa, when this is significant news. you now have two of the largest

auto makers in this country, especially when it comes to evs y , joining in with the largest ev company, tesla, in saying, that's the charging standard that we're going to go with in the future melissa, back to you >> phil, thank you phil lebeau, and our thanks, of course, to mary, barra a real positive here, we're siege the stock higher in the afterhours session >> as it should be i think -- i listened to the spaces i thought it was very elegant, actually i thought -- it make sense for both sides i think it's actually more generous of tesla, because they -- i don't think they necessarily need that. they already are the stand about, i think it's more important for gm and, so, good for them they are just trying to knock down all the obstacles to getting into ev. >> i think it's also opportunistic by tesla i mean, they're going to get access to billion dollars of federal funding that was going to go towards building out ev stations they're not doing this for free

and their ev charging stations across europe are probably going to get a similar bid to -- to that capacity, and i think it's great for tesla. you know, the interesting dynamic here, you think about convergence of technologies and you think about common standards, you know, gm and ford can only get pulled up in the valuation dynamic. in other words, what their businesses are worth or tesla can get pulled down and i realize you can't just immediately make that -- that transference onto multiples, but there's no question, at some point, they are all moving together and that's why we get to this place where tesla is an auto company. what should you be paying for this company clearly, a massive lead. and then, what kind of capacity do these guys have to build out the stuff, lithium, supplies -- it's a fascinating time. >> tesla's up 60% from its post-earnings low, and again, you know, i thought that earnings call was not particularly great, i thought the margin detail was not

particularly great, i think some of the competitive situations, say outside north america weren't particularly great, but the fact the stock has gains hundreds of billions of dollars in market cap in just a month and a half -- i want to almost broaden that out a little bit, and just say, we're seeing a lot of really crazy stuff, the stock sold off for fundamental reasons to tim's point, because people were looking at some of the valuations in and around their competition, and now, to have this sord of run, and i look at the way this stock traded today, and just so you know, i mean, i took a lot of my position off post earnings and i started coming back into this, this is on the short side in tesla today, i started doing it again today and it just was right in my face. and it really felt like somebody knew this was coming wait to be clear about this, like yesterday, when woe saw the major nasdaq names sell off 3%, and this thing was up 2.5% there's some fishy sort of stuff going on in this name right now, because it's not trading on fundamentals it is a three-quarter of a dollar market cap company again.

>> some of the technicals on the stock, it got through the 200-day. if you look at this move, it's kind of pung waited a move through that downtrend from november of '21 that it's been fighting up against multiple times. and this kind of takes it through it, so, the neck any calls continue to be very strong >> guy, is this -- this is better for tesla stock or for gm's stock >> i think it's better for gm stock, but i can understand why people would flock to tesla. listen, i thought -- we've been talking about it, i've been wrong, but thought 225 to 230 would be resistance. we're clearly through that now and tim's point about breaking through that resistance is spot-on. but i think gm, i mean, tremendous savings, i would imagine, would be incurred by mary barra she she just spoke to it. the $42 mark should be within ear shot if valuation is compelling, which it clearly has been for a number of years for gm and ford

and you start to get some momentum and money put in these stocks, i think $43 is not that unrealistic, given the market we're seeing right now >> the afterhours session highs here dan mentioned raw materials, so, let's say adoption is much easier, because they are part of this great charging network, they signed all kinds of agreements with miners -- >> they're set they're set. >> are they ready to go? did we just clear the last hurdle for gm? >> well, they are at 100% capacity to do 2 million units on ev in terms of nickel and lithium through '25. are they going to do that many units? >> through or in '25 >> from now through '25. >> i -- they've been delaying and delaying this is great for them and i you this it's better for gm than it is for tesla, but talking about 2025, right? so, that's -- >> you can use an adapter starting pretty soon and there's literally plug-in adapters you can start using one of the things that's interesting, charge point, the biggest actual --

>> loser >> well, huge loser. >> all these guys. >> when i had the ford mace-e, charge point -- >> get nowhere >> it was a disaster when phil just said that about getting to those stations, needing that sort of thing, it was really bad i wonder how tesla customers are going to feel, especially in very dense populated areas where they rely on these super chargers, it was part of the selling point, it was definitely part of this ecosystem that would draw you to that, when they see fords pull up -- >> if they switch to another automaker, they'll face the same line >> well, my point is, it seemed like the only game in town for a long time, and now, there's going to be a lot of other options to do that, and a lot of people in america have affiliations with ford and gm and that sort of thing, so, i guess my point is, a lot of these charging stations are super packed as it is, right so, unless they keep up with the building of these stations, it's going to be a hard thing maybe charge point goes under and tesla takes them all over, i

just don't know the economics of the business right now >> we don't know the economics, that's why i'm curious, well, what is the deal, right? so, they're not getting a free ride completely, but i think they could end up, i mean, this could be good for tesla, if gm and ford take a lot of the cost burden and create more capacity for everyone, including tesla. >> charge point, by the way, is down 38% over the past 12 months and it is down more than 2% in the afterhours session. coming up, a.i. on the slide. we're checking in on some now so obvious ways to play the hottest trends. plus, some fast movers catching our traders eyes. casinos folding, while analysts get bullish on wayfair how you should be trading esthe names, when "fast money" returns.

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it's not just possible. it's happening. welcome back to "fast money. itmegacaps s getting in on the a.i. rally or can and abdobe surging this year adobe offering fire fly to large business companies and oracle jumping 2%, hovering

near all-time highs. the software company building a.i. into its core offering with analysts expecting continued integration into its application suites dan, you were talking about this on the call today. >> interesting both these companies report next week and i think they're going to be in focus in the market right now where we were, you know, focused on the trillion dollar sort of names and how they're kind of leveraging, at least some of the themes in this little bit of a bubble right here and adobe is interesting on may 22nd, they talked about some of their offering and generative a.i., how they're going to be working through a lot of their offerings, and the stock just went parabollic, just look at the stock. and on a day like today -- listen, this is all great news they should -- they have been working on -- that's kind of my point, like, this stuff is all near the press release is a thing that actually causes investors to say, oh, this stock is much cheaper than some of its peers that sort of thing, and that's what they're rushing into. just understand that things go up in a straight line often tend to discount a lot of future sort of fundamental sort of news, and

so, i'm not buying it here it looks cheapish and they're doing the right things across their platform >> guy, oracle >> i think you can stay with it. i understand why you'd be inclined to pull the rip cord here it's been a dramatic move. and we traded through the prior all-time high. but you probably have 13% earnings growth. i think about 12% or 13% of overall revenues are from cloud. and cloud grew 45% year over year a lot to like here, especially if you are looking for, in my opinion, a reasonable valuation stock that's in a space that everybody seems to love. >> and the valuation is, you know, we talk about it all the time back to adobe, which has been such a big winner over the years until it wasn't. you know, if you look at some of the upgrades we've seen, they're not really playing around with the a.i. numbers they are playing around with mau growth which got to 20%. their digital media, 73% of sales, is actually looking

strong here. it's a 25 times 2024, if i'm looking at a couple of reports so, ilts not crazy expensive oracle never is. and it's just interesting, you look at the overall market, as much as we talk about six stocks, software companies have been part of this move and adobe is ahead of the line >> where are you on software you had been short at one point. >> yeah, i covered some -- i'm still short a little bit i think it's -- was a little bit of a fed play, right, interest rates. and just valuations being high, but i'm still short a little bit of it. just one thing on a.i., you know, i am long nvidia, which is the shovel, but google is an inexpensive way to play the sail thing. >> that was the last thing we had, the cloud plays think about how those names corrected, because they were supposed to benefit from the work from home, school from home -- >> that's because metaverse collapsed, right that's a big part -- >> not really. that was an enterprise thing, a

consumer facing thing. think about the slack, the zoom, i mean, there's a lot of things, so, just remember, people, like, history is rhyming here. >> if you think of the zoom valuation -- >> as a monolith you like to use that term. that was one of the biggest bubbles we've seen in tech in the last five years and on average, most of those names, not the totality of the market cap, because it's concentrated among a handful of names, but most have been more than cut in half and probably down 60%, 70% across the board from their 2021 highs. >> there is a lot more "fast money" to come here's what's coming up next you got to know when to hold 'em and not when to buy 'em. that's the call one analyst is making on a pair of casino stocks why he's starting to hedge his bets, next plus, putting the good in homegoods. wayfairallying on some positive calls outof wall street. so recline and put your feet on the ottoman. the furniture trade is next.

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the ones you can win big with. timing is everything, so make the smart investing choice today and head to vectorvest.com for your risk free trial. welcome back to "fast money. a pair of casino coasts claiming our call of the day. jeffries downgrading las vegas sands and wynn from a hold to a buy, saying the macao recovery is well noted by the market. upside remanes, but recommended owning without adding. is that where you think we are, tim? >> it's similar to what i've been doing i've been long vegas sands for a year i was early, and it's been good to be patient, especially with the recovery in macao.

when i hear owning without adding, that sounds like someone that's selling calls so, it's almost like this was my report and i kind of buy it they identify the things that i think are still the reasons to hold it, which is, we're still early in macao their singapore business is crushing it, and i think the valuation is cheap >> do you have to be a believer in the chinese recovery, guy, which has shown signs of sputtering in order to be a u et cetera >> i think so a certain extent, absolutely they are talking about building another airport in las vegas due to the amount of traffic there's a vegas story that i don't think people fully -- at leastcomprehend, but take into consideration, i should say i understand why people say it's strictly a macao story, it's not. i'll say this about wynn quickly. they have $144 price target, it's still reasonable upside stock's in a basically nine-year downtrend, you go toll february

2014, it was 240 something, and we're still in this downtrend, despite we've had a significant move higher. there's going to be a level where the same analyst says, now it's time to get in again, and i think we're close. i wouldn't run too far here from wynn >> was this in anybody's cacrony this year? >> it was in live. it was in live or liv, we wanted -- >> whatever you wanted it to be. meantime, wayfair topping the tape today, soaring 7% after a trio of wall street firms got bullish on this stock. citi, bank of america, d.a. davidson issuing positive notes. and its business update yesterday, wayfair announced improving sales trends and a shakeup to its cco position. a.i. we were just talking about this yesterday -- >> i think you nailed that >> with truist, in terms of -- >> if everybody's got it, it's a

zero sum game. >> and how exactly does that help me buy more rugs or foot stools or whatever they're selling on wayfair >> this is what this stuff exists for this is why these companies have had these digital transformations. it's called machine learning helping you make suggestions if they don't have this sort of stuff, they're going to go the way of the dodo. so, to me, the fact that there's any, like, imputted, like, higher valuation based on this, companies -- this company loses a ton of money, too. like, that's the other thing, right? they're going to lose on a gap base like a billion dollars in net income this year and their revenues are declining. so, to me, don't buy this stuff for a.i. please please >> as we were talking about last night -- >> right >> on the ride home. >> on the ride home, we discuss a lot of things. >> you guys are -- this is what you're chatting about on the ride home, i tell you what >> have you ever done it >> i thought you were snappy, happening chicks you are. >> it's like the web extra,

remember how unbearable they were >> wayfair, one thing, my kids college, get them wayfair stuff, i found the number of offerings overwhelming maybe, if they can really zone in -- >> like, yeah. >> this is what you need, this color, this size, don't even show them all the rest, maybe that -- >> i guess -- >> produce a higher hit rate >> why is this called a.i. -- >> it was already an a.i. -- >> commerce. my lack of familiarity with a.i., but how is it different from what it had three months ago when i was searching for foot stools -- >> is guy buying an extra dutch oven at william sonoma because of this? guy, what is going on? >> maybe a pineapple lamp. >> if you have one dutch oven, you don't need anymore, tim, as you are probably well aware. >> i don't have one. >> if you can quickly pull up wayfair -- we'll see about that.

pull up the chart. that tells the story i think we traded up to 67 or so february i mean, that seems to be where we're going. dan's right, this was a $350 stock a couple years ago it's obviously cascaded lower, but it doesn't mean it can't bounce we've seen more ridiculous moves than this. so, i think you stay with it on the long side until it gets to those $67 levels >> ceo of wayfair is listening -- you have an open invitation to come on the show we got a lot of questions. coming up, california leaving. major companies fleeing san francisco as the pandemic recovery hits some snags but our next guest isn't giving up hope just yet. and a huge move forever carvana. the stock is now basically flat over the past year, but it's what's happening under the hood that has one of our traders kicking the tires. that trade when "fast money" return us. at morgan stanley, old school hard work meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪

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welcome back to "fast money. stocks climbing today. the dow jumping 168 points, third positive session in a row. the s&p up more than a half of a percent and the nasdaq up more than 1%. earnings alerts on docusign and vail resorts docusign vail resorts lower after missing on eps and revenues. businesses in san francisco are abandoning the city.

the latest, park hotel and resorts, which stopped making payments on a $725 million loan linked to two prominent hotels in the area. but our next guest is hanging on he wrote an op-ed this week titled, "why i couldn't quilt san francisco, and you shouldn't either." let's bring in alex bastian. alex, great to have you with us. >> thank you so much for having me today >> i understand your position, especially considering where you work, alex, but do you feel like -- we're seeing businesses cite crime, unsafe working conditions for their staff, and, you know, there's also the problem with office properties being vacant, which amends to this sort of problem >> thank you so much for bringing that to your viewers' attention. you know, i do believe that san francisco is a great investment, still, and let me tell you why for the first time in a long time, we're seeing consensus in

our city around issues involving public safety and tax reform, and that is something that the city is addressing head-on at this time. we saw a massive investment in public safety with the mayor's budget request, and we are seeing discussions around really restructuring taxes, so that businesses can thrive here, so that bureaucratic red tape can be cut and that's something as a native san franciscan that i have not seen before. so, what you see before you around crime, those images that many people see on tv, are part of the story it's the other part of the story, which gives me some optimism >> make the case, though, why businesses should take the gamble now and not wait to see these things, not wait to see that consensus that is building in the city to address all of these problems, not wait to see that actual -- actually bear fruit. >> well, i'll sail a couple of things the first thing is,

historically, san francisco has always been a sure bet i've lived through an earthquake, i lived there two tech bubbles here and people always counted under the circumstances ous out we always come back better and stronger if we work together, and if we employ common sense reforms. that's what we're seeing right now. as far as the investments, we need to make short-term, medium-term and long-term investments. public safety and clean streets are so important, and we're seeing the city really kind of meeting that with the null budget on the medium-term, tax reform is going to be so important. cutting bureaucratic red tape so that it's easier for businesses to really do things here, open businesses that is going to be so important. and we're discussing that currently. and so important for business to have a seat at the table in those conversations. and in the long-term, what we're really going to need is in infrastructure investments we have the best airport in the world, in my opinion, definitely

the best in the country, and what we need to do is find ways to invest in our airport to really encourage more air lift to our great city. you know, this city is a piece of gold. and it's been in the mud the last couple of years, partially due to the pandemic, partially the mud slinging we're seeing, but if we keep that piece of gold, if we keep it safe, if we hold it up in the light, it's going to shine bright on the world stage again, and that's what we're doing as we speak >> park hotels, they're walking away you're part of the hotel council. i mean, what is the case that you make to your other member hotels, why they should stick in the city i mean, it seems like businesses are growing weary of san francisco. i mean, i don't know if there are many conventions that are going to be held in san francisco any time soon. >> well, actually, that is incorrect. we do have conventions i'm not quite at the level that we did in 2019, but the momentum is headed in the positive

direction. i think it's important to note that san francisco historically was a top three destination for over a decade before the pandemic with occupancy rates fluctuating around 80% during the height of the pandemic, occupancy rates dropped to 8%. and when i came up here to visit at the beginning of last year, occupancy rates were around 25% to 27% you know, i had no interest in coming back to this city i loved my life in l.a i felt at home there that was home for me however, what i saw was heartbreaking, and i felt obligated to take on this job, because i believe san francisco is a good investment that's why i came back, and since then, what we've seen is occupancy rates around 60% now, that's still a far cry away from 80%, that's still a far cry away from where we were in 2019. but we're headed in the right direction. >> alex, thank you so much for

sharing san francisco's story with us tonight. we appreciate it alex bastian of the hotel council of san francisco we do hear a lot of the headlines of businesses pulling out, because the crime is just too difficult to deal with on a daily basis in termsof people going in and just grabbing merchandise and not being able to do anything about it. >> yeah, so, it's interesting. we talk in terms of trading and investing and stuff like that. if san francisco was a stock, i think we'd buy it as a value stock, because it has a long history of being one of the most rich, diverse places in our country. it is the home to -- it's sill von valley, and the innovation that's been created there over the last 50, 60 years. when you think about network effects, silicon valley folks like to think about that when they invest in companies san francisco and silicon valley is that, too, you know what i mean so, right now, it feels really bad, but people felt that way about new york city and new york city's never been better people felt that way about some of these other cities that were beneficiaries from some of this

exodus of some of the big places but a lot of those people are kind of leaving. they are leaving austin, miami these are not as good of, like, towns with network effects, so, to me, i think san francisco, a lot of tech folks that i know have not left and they're kind of doubling down in the way they see it >> mike khouw is in the wings, he's been listening to this. he, you know, is one of these guys who has moved away from big cities moved back, so, mike, what are your thoughts on this and san francisco as a place to be >> i think it's going to take a little bit of time to recover, honestly let's take a look. first of all, the retail situation is quite grim. most of the big retailers down in the market street area that are closing. we can see where the prices of office spaces are trading. 350 california just went for $220 a square foot 550 california, a $350,000 square foot office building that wells fargo bought in 2005 just went for $120 a square foot, okay those are, you know, 70% to 80% declines in value. so, you want to see business

return and you kneneed to have retail return. i don't know why thothems are going to come back, if you don't have a reason to be in the city. if there's no shopping, no business, it's going to be tough. >> occupancy will go up if three closed down. that's the kind of thing that creates a buy. coming up, talk about fast money, carvana on a crazy run. can this rally continue or is it running out of gas we'll hit the options pits for how to play it, nextd bond.. are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. (vo) this is more than just a building. diit's an ai-poweredskin investment firm with billion-dollar views. a cutting-edge data-security enterprise. yes, with a slide. a perfect location for the world's

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welcome back to "fast money. carvana shares flooring the gas today, improved second quarter guidance the used car seller says it expects q-2 of over $50 million and that profit for vehicle will be a record $6,000 60% higher than a year ago the stock soaring 56% today. best day on record now back at levels last seen in september. the debt markets, how they are looking these days, karen? >> interesting, i always think the debt spiral. let's look at the debt, so, the middle of the dashgs i sent the debt chart over, we have the five and five-eighths bonds that

mature, they were at 79 at the time, a very nice run off the high 40s, maybe. by the end of the day, that chart was no longer good, they were 84 1/2, and i think we have that now which is actually approaching -- i mean, they're rated junk, you know, the balance sheet's a mess that 50 million of adjusted ebita -- >> what's adjusted >> they take out the things they lose money on and leave in the things they make money on. >> i would adjust my ebita, too. >> that $6,000 profit per car, that's a gross profit, it doesn't take into account the expenses, where they had been losing money on each car, so, i mean, good for them if they can figure a way out of it if it traded 175 million shares today, and closed at 24 and change, i would be out there trying to sell stock as quickly as possible. >> sure. >> i'm sure they're not the only ones who thought, i mean, i wouldn't be the only ones. of course they're going to think of that if they can, but -- at 50-plus percent short interest,

i mean, it's -- it's terrifying. >> sounds like you think the debt markets are getting this wrong. >> i feel like the -- if they can issue equity, that near end bond, maybe they can pay it off if they can, then it goes to par. that still leaves billions of other debt outstanding >> if you are profitable, you seemingly can possibly repackage debt you're going to get people to do it the problem is, back to -- i think we all are frustrated to see adjusted ebita and they are talking about their ability to -- nongap total gross profit or gp unit would be above $6,000, what does that mean? it doesn't mean anything and again, nongap, i don't want to hear it "journal" had a great earlier this week, we never had a wider chasm between adjusted and actual earnings. >> bullish options traders are calling shotgun in this name mike khouw's got the action. >> yeah, i think a lot of this is probably just betting on a

big short squeeze here this thing traded six times its average daily options volume, the fifth busiest single stock option today the largest trade i saw in terms of premium was a purchase of the 22 strike calls. of course, the stock rose 8% there after, so, this trade is actually already profitable. they spent a little over $900,000 bucks in premium. $350,000, making a bet that the squeeze could continue through the end of next week >> mike, thank you mike khouw for more options action, tune into the full show tomorrow, 5:30 p.m. eastern time. coming up, the canadian wildfires took a toll on the east coast the last few days, but what does this weather mean for insurers, as they assess risk we have a live report on that ahead.

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welcome back to "fast money. as the east coast recovers from an amber haze from the canadian wildfires, noaa announcing el nino is here the climate pattern is expected to bring warmer temperatures and more extreme weather patterns, so, what does this mean for insurers as they assess risk

let's get to contessa brewer for the details. >> hi, melissa means you are going to see a higher risk of wildfires in places we don't think of as hot spots, like canada, and the northern united states el nino just exacerbates weather conditions, and already, look at the prediction from the national in interagency fire center. more than normal potential for wildfire in the pacific northwest, around the great lakes, upstate new york, northern new england, at least for june and july. a lower potential for fire in california why? well, historic rainfall in the spring lead to these lush, wet mountains, and lower risk, but later this summer, when all of that dries out in hotter weather, it could become tinder for wildfires there. and we saw state farm and allstate announce no new policies in california 8 of the 10 costliest wildfires across the globe happened in california chub and aig already gave up on the regulated insurance market there. and if state regulators don't

awhoou approve premiums commence rate with the future risk and with the soaring cost of repair and replacement, industry experts predict we'll see other insurers flee, as well. and not just in california, but we're looking at washington state, louisiana, texas, new york, new jersey, all areas where you are seeing elevated risk, lost cost and regulatory hurdles combining to make it difficult for insurers to make the numbers work >> contessa, thank you great story. contessa brewer. in the past, any of these sort of things that would lead to a premium increase was good for the insurers, because usually they stick, they don't pull them back >> right i -- whatdoes that do to the value of expensive properties? knowing that you can't insure it -- >> right >> you got to think twice. >> right in terms of the market but you know, in addition to insurance costs, guy, this is loss of business, right? it's just -- if we're going to see more of these sorts of disruptions caused by whatever

it is -- >> yeah. >> weird water patterns or what not, people are staying home, they're not going out, they're not doing all the stuff businesses want you to do. >> right in terms of the stock, is it already in the valuation chubb was making an all-time high in january. so, we just had the graphic up, it's probably down 15%, 16% since. but look at the valuation of the stock now, and one thing you learn about these companies, they figure out how to navigate these types of environment, and they will pass on those costs. regardless if it's the right thing to do, that's what happens. so, i think chubb here at 195 or so, if the valuation it's trading at given the selloff we've seen already is really interesting to get in on the back of all the news we're hearing now. >> all right, up next, final trades bm and red hat, use a hybrid cloud solution to connect data across clouds, then analyze all that data with watson. okay, but this needs to meet our... security standards? yup.

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where are you going? >> idiot get back in there at once and sell, sell >> i -- i -- >> 200 yeah >> 100 >> that was 100? >> you get that --

>> ah! >> welcome back to "fast money." today is the 40th anniversary of eddie murphy and dan aykroyd's classic wall street movie "trading places. reason those jam-packed trading pits >> so good >> so much has changed >> oranges they were trading >> that's right. >> guy, a lot has changed since then, but that movie is still a classic. >> i worked down there those guys, you see, and some gals, that was filmed on a saturday and all those extras you see that appear to be actors, they were actually traders down there, and it was nuts but it's a fascinating time, you'll never see stuff like that

again. but as you know, mel, both jamie lee curtis and eddie murphy are huge "fast money" fans >> huge fans >> i know they are watching. guy, if we looked hard enough, could we find you in one of the scenes >> oh, my. >> first of all, it was 1983, okay, wise guy i was still in college i mean, i'm old, but not that old. >> all right fine time for the final trade you could have been an intern or something. let's go around the horn guy? >> i was actually a life guard back then. marriott look at that chart that sucker's off to the races >> tim seymour >> yeah, i'm a karate man, i bruise on the inside and gm has been a bruiser on the inside i think the valuation, this is a catalyst, at least on a range trade. >> karen >> yes i'm also going with gm, a double upgrade. >> love it >> yes i like the plan with tesla, better for gm than tesla, good for both of them >> yeah.

dan? >> yeah, uup in front of the fed next week, this thing might have topped out here >> yeah. watch "trading places. i've only seen it once thank you for watching "fast money. go watch the money "mad money" with jim cramer starts right now starts now my mission is simple to make you money. 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 >> hey, i'm cramer welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make a little money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc. tweet me @jimcramer. every day some analyst comes up with something positive about how artificial intelligence is going to change the word every day it moves up a stock,