now. we talked about this rally, and perhaps broadening participation, that would be a very interesting participant, if this keeps up. >> yeah. and in terms of data, japan decision, university of michigan consumer sentiment survey tomorrow, that's going to be a key one to watch that does it for "overtime." >> "fast money" starts now right now on "fast," rip roaring rally. stocks thumbing their nose at the fed and chair powell's plan to keep rating hikes ipo delivering delicious returns on day one is this a recipe for disaster or one for delight? one name in particular that could fall as much as 40%. the man behind the support will join us at the bottom of the hour. and cleanup in aisle three a magical month for investors in delta. i'm melissa lee, this is "fast

money. on the desk tonight, tim sey seymour, courtney garcia, guy adami. the s&p 500 seeming to shake off the fed commentary, closing above the 4,400 mark the dow rallying 430 points for its highest close of the year. the nasdaq up more than a percent, bringing its games since january to over 31%. and look at some of the stocks hitting all-time highs today from tech giants like apple, microsoft,nvidia, to oracl and lilly. shares of cava nearly doubling from their offering price. the best day one performance of a billion dollar ipo so far this year so, all this bullish action got us wondering, is everything really coming up roses shouldn't we be more bullish in this environment we asked our traders to come up with the charts they think tells the real story of this market.

>> first of all, courtney, tim, you have been bullish. i have not i want to be clear days like today definitely leaves me scratching my held but you look at the market, everything clearly is coming up roses. but then you hear the commentary of the fed, if you play the game, you hear these comments, what is the market going to do i thought the market was going to crater, it did not. the china stimulus is helping, but that's not the only reason why. the thing that has me scratching my head, if we're going to go right to it is this two tens, which inverted to the tune of 111 basis points, traded back down to about 42, now it's reinverting. that's not bullish what does it speak to? my opinion, it speaks to the front end of the curve, where inflation is still a problem, as man any festing in the two-year, and the back end, which is going lower, for now at least, means the economy is slowing down. that is not a healthy long-term recipe for equities. >> i would agree with that, but this has been inverted for quite some time now. >> i know.

>> and the recession that never comes. and so, at this point, what do you do how much do you take stock in that, at this point, since it hasn't been a great indicator so far? >> it hasn't i think there is still a lot of positives when you look at the economy. that's what people are starting to price in. unemployment is really low we just saw spending data come out and consumers are still spending like they're really not worried what's going to happen with their jobs and wages. and that's what's keeping the com economy going. the recession does continue to get pushed out when you see that and when you're looking at the markets here, they heard the fed yesterday and they heard they're pausing right now and they were pretty definitive, they said, nothing is on the table yet. so, they're probably going to hike and that's what's getting priced in right now, but the fed, a year and a half ago said, we're not thinking about rising interest rates, and nour they're saying, there's no chance we're going to cut people say, well, if the data shows inflation comes down, aren't you going to follow that? that's why you see the s&p continue to improve, despite what the fed did yesterday

>> so, your chart is the s&p >> the s&p, which has continued to improve, despite what, you know, some are saying is a hawkish fed yesterday. the markets are kind of ignoring them at this point and looking past that. >> you have to wonder if the fed has reached peak not credibility what's the opposite of -- loss of credibility, the markets are doing this in spite of 12 of 18 members saying two hikes, three members saying 6%. we have not talked about anything with a six handle for awhile, and yet here it is >> yeah, that's true i think on some level, you can say that people believe the fed is doing what they're going to say, which is, they may raise go more they're data dependent and that could mean they're done. if we peaked on rates, we peaked on dollar, we peaked on inflation, there's a lot of reasons why equity has done what they've done i'm surprised we didn't play "everything is awesome", because that's really the song we play when the market is going crazy our team has some chance to cue

that one up for the b-block. my chart is ultimately the toward pe on the nasdaq. it could be the forward pe on the s&p, as well, but on the nasdaq, it's a little bit over 30 times based upon today's close. if you look at where we were going into, you know, pre-covid, we were probably around a 20 times forward. take those companies, take microsoft, which went to all-time highs today, up 57% since january 6th, why i mean, i kind of know why, but i don't know why i look at that forward pe, we say this all the time, guy says this, dan says this, it's multiple xpansion. it's not earnings expansion, so, the thing that's most concerning chart to me is, this market at some point is just absurdly expensive. and i'm talking about the biggest companies in the world and some of the companies that don't make a lot of money, of course they're expensive they've gotten more expensive. that's the chart the forward pe, but the forward pe is about 19.4 times and that, again, if you look at where we

were in the five years p pre-covid, we were at 16 1/2 >> do you think that because this pe is so high at this point for the biggest megacap stocks that that means that the whole market will come down, or that this market is set next to broaden in terms of the participants >> i think the market is broadening and i think since svb, that knocked what was broadening that was going on and if you look at the 11 sectors in the s&p, they've all joined in over the last six days. they've all been higher effectively during that time, so, it implies broadening, but at some oint, you know, it doe come back to valuation >> in terms of this market picture, you're worried about inflation and the consumer >> and crude so, like you said, first of all, let me turn to guy and say thank you. i love free stars, because i mostly have not been bullish, i've been bullish certain pockets of the market, and that megacap tech i'm going to take my medicine along with you now that we have that out of the way, yes, i have been concentrated on the consumer and crude, to me, is what tells that story. if you look back a year ago,

weer with at 120 now we are just above 70 and when you -- we know that that's not in, like, the core inflation numbers, but it speaks to the health of the consumer and their ability to spin. that's ultimately why we're all roses, or perceived to be all roses, because the consumer has been extremely resilient despite all the turmoil that's going on. when i look at a chart that gives me some insight into where the market is, when it comes to input costs, the consumer, things of that nature, crude tells you a picture. if that were to turn, we'd be singing a different tune >> right the commodity charts have shown charts like, maybe not exactly, but we've seen lumber prices come down. >> not pretty. >> really things have rolled over in terms of those sorts of inputs to inflation. >> so, if you look at the bulks, if we're looking at some of the grains, and there's some important stuff that's coming down in price. some of it feeds into lower food prices, though there's some reasons why food prices stay high i think what's encouraging for commodities is that the dollar,

i think, is also kind of in a place where it can't move a lot higher today is one of those days where ecb went they indicated they have a lot more to do and they don't really seem to care that they have a weaker economy and they may be pushing that over. those central bank differentials have a lot to do with how the dollar is going to trade i don't think is dollar is going to go straight down, but i don't think it's going to go a lot lower. that's going to support crude a lot. every 1% move in the dollar is worth about 3%, 4% in oil prices and other commodities. and i think it's very good for international investing, so, commodities, i realize we, you know, today's one of those days, china, bad numbers, and we think they're going to stimulate and it leads to this, you know, bad news is good news. >> yeah. in terms of bad news, good price action, guy, i would argue that yesterday and today is bad news in terms of hawkish message, today, a rally good price action. >> fantastic there's no denying it. the price action -- >> so, why not just feel like, you know what?

>> throw your hands up >> everything is awesome >> it's time to come around. that's fair. we've been having that conversation, why are you being dol dogmatic, why are you fighting so hard against this i understand the market is going higher, but nothing below the surface has changed, in my opinion. we're going to talk about commercial real estate that is a shoe that will absolutely drop, almost by definition and there's going to be liquidity problem in this market, when treasury needs to raise about a billion -- excuse me, $1.4 trillion over the next four months or so. the fed's not going to monetize that somebody's got to -- it's coming from somewhere >> right >> so, if it comes out of the equity market, there's going to be a liquidity trade at some point. obviously, none of this has happened the market's been great. the lag effect, all this stuff is not manifested itself, but the question is, is it just a matter of time the answer is yes. >> courtney, would you continue to ride big cap tech at this point, or do you want to go to

the other parts of the market that haven't participated? >> you want to make sure you're rotating that being said, you still want to own your megacap tech they're not going anywhere but i just don't think you want to be chasing that you should be overexposed especially if clients haven't rebound their portfolios it is a good time, take some profits. get intoer arir other areas of market that are picking up this run. the general markets, you have not missed out on the upswing yet. >> meantime, the fed lowers its forecast for year-end unemployment to 4.1% from 4.5% in the latest economic projections, but is there more to the labor picture than meets the eye? joining us now, julia pollock, from ziprecruiter. great to have you with us. >> thank you, melissa. >> one of the things that surprised me is how easy it is to get a job still

i mean, the amount of time that you have to spend, you know, looking for a job is not very much and job-seekers feel enough power in this market to actually ghost employers. >> employer ghosting is going up, not down and that suggests that job seekers are still very confident. the share that are satisfied with their new jobs keeps rising, the share getting signing bonuses, getting proactively recruited by employers, all of those keep going up we have seen a decline in the share getting job -- wage increases when they are job switching, so, we see a little bit of a pull back, but not that much >> where are you seeing the most strength in terms of industries? >> so, this is still a market very much being propped up by strength in consumer spending and in those consumer services industries americans especially high wage americans are flooding to those taylor swift and lizzo concerts, to the baseball games, and on

vacations still and so, those industries are continuing to buoy us. but industries where we would expect to see weakness, construction and manufacturing, given how high interest rates are, have proven remarkably resilient, part of that because of the enormous amount of private investment that's being stick lated by subsidies >> are you surprised that the job market has held up this well inspite of ten consecutive rate hikes? >> well, i think, you know, everyone is surprised. no one would have expected that raising rates 5% would cause unemplmroemployment to fall everyone expected that would hurt the labor market more it seems now that that may not need to happen that inflation is coming down quite meaningfully many of the real-time private sector indicators suggest that it's actually coming down faster than official statistics show. and thatwe're closer, perhaps,

to that 2% target than fed members yesterday suggested. >> so, if -- wage growth has been sort of the fly in the ointment here, and so, can we have a situation where wage growth may be slowing, which it has been, but it still remains strong, even though inflation has come down and that's okay, because that would imply, i mean, if i'm going to extrapolate onto corporations that corporations will be feeling the pain in terms of margin compression >> yeah, so, right now, you know, workers have seen 25 consecutive months of real wage declines the only workers who received a real wage boost are the lowest wage workers, but they've also been hardest hit by inflation and have very little disposable income left after essentials have gone up so much in price. and even know inflation is coming down, consumers are looking at what's happened and they're saying, prices should

have gone up just 6% since the start of the pandemic, instead, they've gone up 17%, and my wages haven't kept up. so, there will still be a tension between employers and job seekers and workers in those conversations about offers, about raises, about promotions, with workers saying, hey, i've been left behind here. and you need to catch up so, that will continue to be -- to be a tension in the market and it will keep inflation higher than the fed would like, but we're seeing so much relief on other fronts, that i think the picture is still quite bullish. >> all right, julia, great to see you, thank you julia pollak in all that, if i'm reading between the lines, tells me that the consumer may not be in as strong a position as one might think if you are to think that -- i mean, prices are coming down, but prices went up a lot and wage growth hasn't really kept up, guy. >> a lot to unravel there. i think exactly right. i think people are surprised by how resilient the job market is.

1.7 jobs for everybody looking for a job. it's incredible. wage growth is still there but you know what? the gist of this inflation problem comes in services and comes in shelter that's not going down. and the comps on this inflation get more difficult moving forward, given what happened this time last year. so, there's so many cross currents here, but in terms of what you just said, consumer now with a trillion dollarsish of credit card dealt and rising interest rate environment, it does not paint a particularly rosy picture we say it all the time the u.s. consumer will spend until something scares them and it stops on a dime the thing that's going to scare them is the market, but it has not happened yet. let's turn now to a developing story on goldman sachs. "the wall street journal" reporting that the federal reserve and the s.e.c. are looking into the role the bank played during silicon valley bank's final days. leslie has the details >> yeah, melissa, goldman sachs diss closed that government bodies were in touch with the firm as part of a broader probe into the downfall of silicon

valley bank. the fed and the s.e.c. are investigating and the justice department hass subpoenaed goldman as part of its investigation into svb "the journal" cites people familiar with the matter in the reporting. an attempted capital raise took place right before the bank failed "the wall street journal" said regulators are looking into investors in goldman's trading division were communicating about the portfolio sale those are supposed to be separate divisions that have kind of a wall in between them now, i haven't been able to confirm specific details about the investigation, but a spokesman for goldman sachs said in a statement, quote, as we have publicly disclosed in our 10-q, goldman sachs is cooperating and providing information to various governmental bodies, including the firm's business with svb in or around march 2023 the firm told svb in writing

that it would not act as an adviser on the sale, and urged svb to hire a third party financial adviser. so, an s.e.c. spokesman said that they do not comment on the existence or nonexistence of a possible investigation the doj and fed declined to comment. melissa? >> all right, leslie, thank you. leslie picker. not too much, you know, up .4%, but a reaction here. this comes a couple days after there was an article about goldman sachs, partners being unhappy with david solomon, because the money losing consumer business venture that has to be closed down. dj not spending enough time on the job, lloyd holding sway at a bar at a company retreat with people saying, you know what, he said that he's not -- that dj is not spending enough time in the office guy's laughing >> i'm not laughing. >> this is serious >> this is serious

>> all of this snowballs, it becomes a problem in the board room >> well, it may. the regulatory dynamics of actually being a buyer of securities portfolio and advising on a cap raise are things i'll let all those people sort through, i mean, i think goldman has sat in many complex positions many times throughout the years, by the way, they're the first call for every company, let's be clear, i mean, who was seen asthe one who could do the best job here i'll say something else, i mean, if i look at a year -- we talked about the market, if i look at the last 12 months, goldman versus the s&p, it's flat. for all the bad news and all this and that and for investment banking market that is completely dried up, i mean, goldman's performance isn't that bad, so, we had the dj, you know, discussion on this desk and my guess is -- yes, during more difficult times that becomes a bigger deal, but the things we all do on our weekends that are around, you know, having fun with music, if you can only see me, you know, it would be pretty funny.

>> i spent a lot of time in your spotify playlist >> 100%. >> one that you curate >> tim is a drummer that can sing, as well, as you know, melissa. >> true. >> real quick. there's clearly a faction that does not like david solomon out there. not a goldman insider, came from bear stearns, the whole thing. the stock performance under his leadership is actually done rather well, number one, and listen, they've made some missteps, without question, on the consumer side of things. that's what happens when you take chances but there's clearly a bulls eye on his back, and more and more of these stories coming out, you see what's going on, but in terms of the timeline, you know, he's probably towards the end of his tenure, if you go back and look how long all of them -- men, by the way, have lasted he's right up against it this is what you start to see as people start to sort of navigate and position themselves for the job. coming up, we're watching adobe. shares on the move after reporting results. details from the quarter next. and driving into lyft.

the company's annual meeting wrapping up almost as quickly as it started got all the details when "fast money" returns ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes,

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welcome back to "fast money. earnings alert on adobe. shares moving higher after a beat on the top and bottom lines. let's get to dee idrdre bosa fo the details. >> unsurprisingly, the call is still under way, but a lot of talk of generative a.i the ceo saying they're bringing generative a.i. to life as a co-pilot that's something we've heard him say before about their new product firefly, that is, he says, getting a lot of adoption. he's saying the strategy focuses on data, models, and interfaces. investors don't want to just hear about product launches. they want to hear about monetization, as well. so, the adobe team trying to sort of feed that itch for investors, saying there are new opportunities in a number of places generative a.i. tools are going to drive higher retention. for firefly, they're going to have a standalone consumer product and enterprise version

less detail on those hard numbers. they say they're going to sort of give more details around pricing once they have some real adoption mel, i'm also listening for any details around that figma acquisition that has faced some regulatory pressures haven't heard that yet, but the call is still under way, we're only about 23 minutes into it. >> while we have you, i want to asken you you about lyft. it lasted 15 minutes what whare the headlines out of the meeting? >> i can give them to you in about two seconds, because as you said it, mel, the meeting lasted less than 15 minutes. only two questions one question, what are you doing about the stock price? it is near record lows the new ceo, he said that it's going to take time he said it's a lagging indicator, but he's been in this role for a few months and i think investors probably wanted more on this strategy here, what he's going to do to turn it around we haven't heard a lot of detail on that. still losing ground to uber, still really struggling at those

levels so, it was stunning to me, mel, as well. it was over so quickly and i think expectations were a little higher given how it's trading. >> all right, thank you. tim, you weren't asking that question, were you lyft is the l in your lag trade. really -- >> it is the lags trade. and look at that again, how happy i would be if i hadn't picked lyft everything else is doing well. i still believe in the story i still believe in the, you know, the fact that it's a clear number two in a space that i think needs more than one. and a space that some of the macro dynamics in the economy are not the reasons the stock's trading where it is. we'll see. i certainly hope to hear more. >> i'm actually -- i guess you have to hold annual meetings that's a requirement, but for them to stop after two questions? and not expect a question about strategy and what they're going to do to help shareholders at an annual meeting is kind of shocking >> well, that, and share price,

which is why you're tuning in in the first place, so, yes, i mean -- i guess my commentary might be longer than their meeting, but the thing that really sticks out to me, if i'm going to make the bull case, and that's an if, is, the you look at the price of sales, and it's .9 or just below 1 for lyft and it's 2.5 for uber. so, if you -- yes, they're number two, but you would expect some conversion there -- i this i that might be the bull case, but until i'm given more than 15 minutes of a clear path towards how they're going to turn this thing around, it's tough to buy in >> i think what's tough, too, they're really losing market share to uber right now, and uber has -- i mean, they have bigger scale, right? they have more they can put into marketing, they have a lot more they can put to get those client acquisitions but i mean, when i'm going out and i'm getting an uber and lyft, i have no loyalty to either you just check and see which price -- >> all the same drivers. >> exactly the same cars. so, that's where it's hard for them to be able to increase their prices and where are they going to cut costs

so, i do think this is going to be a problem for them. there needs to be two in the industry, i don't know if it's going to lead their price higher >> quick on adobe here >> tim's mentioned this over the last couple of weeks, the quarter was fine, but if you read between the lines, guided lower revenue for full year. stock trading with this move 30 times forward earnings probably trades 20 -- excuse me, 11ish times revenue, which is not cheap. it's an expensive stock. but people are getting geeked up about the whole a.i. thing, so, when does it end we're still significantly lower than it's all-time, which was north of 700 bucks not to suggest it's getting there, but you've seen what's happened with these names. valuation doesn't clearly matter and if a.i. is mentioned, these stocks go up >> yeah. there is a lot more "fast money" to come here's what's coming up next semi scoop one long beaten down chip stock seeing a turnaround in recent weeks. one of our traders sees even more upside ahead.

the name he's biting into, next. plus, batten down the hatches. there's a real estate storm passing through. and our next guest says even the one-time save havens offer no shelter from the storm how he east riding out the office space hurricane you're watching "fast money," live from the hnasdaq market sie in times square. we're back right after this.

welcome back to "fast money. let's take a look at the top chip names so far this month nvidia and intel among the biggest winners along microchip technologies and broadcom. tim is making a big bullish call

on one of these stocks you have been adding to your position >> and to be clear, right, i've been on the wrong side of intel during a big move down, but i also trimmed some of that at some point and i've been adding and some of it is the technicals that have meant a move above 31 and move above the downtrend, above the 200-day and things i do watch, but the story is more, first of all, last week at a jeffries event, they actually p preannounced their june quarter, and the numbers were at the high end of a range, so, this is a company that we've been more worried about. the view is, certainly, the view was, that they were not only losing market share in data center, but getting worse and worse. what the ceo, or what the cfe was able to reaffirm, it's actually a little bit better and i think there's a story there about the longer term. they have exciting products coming up. the chip in '24, that's real there's real excitement around it and you get to a place where the worst in intel is over

and there's often a time to buy a stock. it's hardly a front-runner in the a.i. race, but if you look at how underowned it is insti institutionally, that's part of this call. i think on the chart, you can go to 40 bucks. right now, the pe is challenging. >> you agree with that level >> i am. exactly right. if you look at the chart, 40 is where it should go valuation is not ridiculous compared to what we've seen in the space. and they have a catalyst in the form of june 21st, an investor day, whatever they're calling it, so, it's coming up this stock can continue to play catchup, despite the fact they're challenged >> yeah, fits into tim's laggard theme. i think the worst is already priced in. with that said, i probably won't be diving in with both feet. nvidia is where i live, and i understand it's not cheap and it's at nose bleed levels, but you are seeing what is happening with this whole a.i. situation, and i think they are squarely the beneficiary of that, and so, for me, i want to be in the best

name and what right now is the best space >> are you long nvidia stock and are you hedging? >> i'm long nvidia stock and we mentioned this on a previous show, i have trimmed it. from here, being where my cost basis is, i'll let it ride. coming up, are we in the eye of the commercial real estate hurricane. our next guest warns, there's nowhere to hide. more ahead. and wheels up for delta. extending their longest ever winning streak but is there more fuel for this rally? we've got the trade when "fast money" returns business was stea, but then an influx of new four-legged friends changed everything. dr. petsworth welcomed these new patients. the only problem? more appointments meant he needed more space. that's when dr. petsworth turned to his american express business card, which offers flexible spending limits that adapt with his business. he used his card to furnish a new exam room, and everyone was happy. built for dr. petsworth business.

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welcome back to "fast money. stocks ripping higher as investors digest yesterday's fed decision all sectors finishing in the green. and the s&p and nasdaq up more than 1%. the dow jumping 430 points and speaking of streets, shares of sofi breaking its record. the stock dropping 9% after a downgrade at oppenheimer analysts saying they're still bullish, but that sofi's valuation reflects their raise outlook. sharms closed off the lows, but still in the red activist investor in the commercial real estate space has a new warning out. he said the hurricane is spreading to an area many have considered a safe haven.

medical labs and there's one company that might be right in the eye of the storm. jonathan litt is behind the call jonathan, welcome back let's get straight to this name. it's a fascinating report. it is -- >> alexandria real estate. >> a study of 495 buildings. >> right, so, last time i was here, we were in process, or i would have chatted about it. we know office is bad, people are not returning to the office. this company operates office lab space, and most people thought the stock was insulated from work from home and the stock is trading at a very substantial premium cheaper than it was, but it was a premium. and we said, well, maybe we should buy it down here. and then we started researching it, and everything was lining up and the company saying, everybody's back and we'd been using the cell phone data, we talked about it last time for six flags. we said, let's look at the buildings. and we did 20 buildings. down 50% on attendance so, we did another 20, i said,

you know what, do every building we did every building, it took a month, and it's down 50% >> across the board? >> across the company's portfolio. their largest market, which is boston, is down 56%. this is going the way of office, and it trades at a massive premium to office. i think it's going to be a real challenge. if you are pfizer or ely lily or bristol meyer, one the leases come up, you don't need it people are working from home all this important research we're doing, people are doing it from home. all the administrative people, they're doing it from home they'll go to the lab for a few hours a day, but then that go home and finish up their work. >> how do you think about the leases in terms of, is there a time, is there a common, i don't know if there are vintages, years where leases will come due? >> yeah, so, they have about 20% over the next several years and then it just continues to grow i'll just digress for a moment blackstone owns a large portfolio called biomed.

jon gray was commenting on this about two weeks ago, and he said, look, vacancies are going to tick up and rents are going to be softer i agree with that. i think it's a little bit of an understatement i think it's going to be much worse than that. bio med, we looked at their buildings. they did a better job underwriting them and they are not as badly hit as tall sand dree ya's, but alexandria has a big problem. >> they have a pipeline coming to the market in terms of lab space that will be available, which will make it even worse, i would think that lab space is more expensive to build out? >> correct there's about 20% new supply coming to market, which is on top of what's likely increasing vacancies, people shrink their footprint, i talked last time in washington, d.c., people are shrinks their footprints by about 30%. so, you can have supply from shrinking footprints, supply from new construction, and the reality, when we looked at al sand dree ya, their average rent

is 50 bucks. that's not lab rent. lab rents are like 100 bucks so, the new construction, maybe they're going to get 100, but at 50 bucks, you got no competitive advantage in the space that you have i'm getting into the weeds a little bit, but i think it's going to be a real struggle. >> just to be clear, you are short this stock now >> we are short. >> have you been building up the short position >> we have originally, we started thinking it was going to be a long. and then as we got into the cell phone data -- and i don't know how much you are hearing about this on the show, but it's fascinating and i think more and more people are going to use it. it's just remarkable >> i think what's interesting in terms of how you use it is that you took a look at minimum 60 minutes in the building, to eliminate, like, some guy delivers a package >> correct >> a visitor to the building you want to know who is working in the building. so -- >> yeah, and they have this data, which shows how long people that are there for more than 60 minutes, how long are they there, how long is their cell phone there and it's like 350 minutes.

so, it's not even an eight or ten-hour day they are in, they are out, they go back home it's really interesting. >> maybe we buried the lede on this one, but you see downside as much as 40% >> that's correct. for this to be valued where office is valued, it's going to be down 30 to 40, and what's interesting, before the show, i was talking to a banker about a variety of things, i said, did you know this about lab space? he said, i have no idea. we have to go see if we have credit out to them he's concerned, if they are in the line of credit, what's going to happen. i think you are going to start seeing financing get tight >> while we have you here, we've been hearing about property owners abandoning their properties in san francisco, west field mall, for instance, they are handing back the keys, they don't want it anymore, they don't want to operate. i'm wondering if there is more pain to come in a city like san francisco and are there ways that you are participating in that sort of decline >> we've avoided it.

>> okay. >> we are short office, which is there. in another company, park hotels, gave back 3,000 rooms and two hotels, and we looked at the cell phone data, it's down 50%, number of people in those properties again, you look at a traditional hotel, we're off maybe five outside of san fran. san fran's got a problem the mall that was handed back last week, i think it was, was down 42% in terms of people in the space. and i don't know what gets people back, because people commute into san francisco and with work from home policies, they're not. and in fact, i didn't realize this, 7% decline in the population in san francisco. i mean, you think about new york, we're not down that much, most major markets are not down that much. it's a real problem for san francisco. >> jonathan, great to see you. thank you. >> great thank you. >> by the way, we reached out to alexandria for a statement, we invited their execs to appear on "fast money," we are waiting for a response, but in the meantime,

let's trade this it's a fascinating study >> well, especially because alexandria has been seen as very resi resilient, because the quality of their assets, but you know, it's interesting, i'm stare, at a report on jpmorgan, they're overweight on the stock, i mean, they see above average noi growth and that ultimately they're development program is adding value through a number of kind of ways they're allocating capital. so, this isn't a landslide view out there, even though in the office space, it's pretty clear. i just think -- the banks themselves may be the ones that push a lot of these guys -- they're not lending. they're not going to be extending credit in the way they used to. that's the irony here. banks that have been seen as the weakened players are going to be the ones that are really forcing problems that come back and hurt them >> yeah. court? >> yeah, i think the biggest question i'm getting from clients right now is what's happening with commercial real estate this is also why when you look at real estate, you want to make

sure you have a diversified portfolio. it is not in the same position that specifically like office is or san francisco is in, and to his point, maybe we're even seeing the medical space in there, too, so, just make sure that you are well spread out i would not put all your eggs in that basket. coming up, pack your bags, because we are going on a trip delta and disney moving higher today. we'll bring you the trades on both of those travel names next. "fast money" is back in two. a car that goes as far as it does fast. as sleek as it is... spacious. as smart... as it is beautiful. introducing the lucid air. experience the best. ♪

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welcome back to "fast money. delta airlines cruising to a new 52-week high after announcing it will resume its dividend at 10 cents a share. it's extended its win streak to 15 straight days and it's not the only airline taking off this month. delta, united, american all up when did you give this as your final trade? >> ah -- last week sometime. >> yeah, last week >> well, i -- i like to trade airline stocks, i've been long d delta a long time. the delta's up 15 straight days. i think up to 52ish, you even have some more room. but i've been selling upside

calls up 15% here and i'm happy to take this this is also the a in the lags acronym. >> too bad there's lyft. >> shame >> not to go back to lyft. really dragging you down there bonawyn? >> yeah, i just pointed to free cash flow. $1.2 billion in free cash flow in that march quarter after burning the previous quarters, you look at american airlines, that's another one that i'd actually look at, just shy of 3 billion. you compare them versus the regionals, which are burning cash so, if you are going to be involved in the airline space, you want to be international >> you like airlines >> i do. this is what you're seeing, especially with consumer spending data coming out, people are still spending on travel, leisure. this is one of the areas that are justified to continue having growth going forward it is not extremely high multiples, it's been hit really hard since covid, but i hit the's justified. and it's something you want to look at. let's get to disney now. the company announcing that cfe christie mccarthy will step down

to take family medical leave the entertainment giant naming kevin lansberry as an interim replacement. mike's got the action. mike khouw >> yeah, disney was the third busiest among the consumer discretionary single stocks today. that by itself isn't so unusual. what was unusual was the activity in the july 80 puts we saw over 24 1/2 thousand trading due to the institutional blocks, like a single trader was buying those that's a bet of more than 14% to the downside by july expiration. >> all right, thank you, mike. mike khouw for more options action, tune into the full show that is tomorrow, 5:30 p.m. eastern time. coming up, a pop and a drop in the consumer sector what is causing these stocks to move in opposite directions? we've got the actions and the trade straight ahead for "fast money" in two.

welcome back to "fast money. buzz kill on kroger. shares of the grocery store chain dropping near by 3% after

missing revenue estimates and just beating earnings. the company warning lower end consumers are spending less as economic conditions worsen maybe we shouldn't be so surprised when we hear about the dollar stores talking about their consumers going to food banks now, guy >> it shouldn't be surprise. there's no earnings growth here. you heard what they just said. at some place, there's a value play here, but it's unfortunately not at these levels the low that we saw over the last couple months was about 43 1/2, looks like it's going to take that out. this stock has a chance to probably trade into the high 30s and maybe take another look based on what they just said >> all right, the meantime, target topping the tape. jumping on the back of a bernstein note which is calling the recent selloff over the company's pride controversy a stock opportunity. the stock down more than 14% over the past month. they make the point that part of that drop was because of their earnings, but the bulk of it, two-thirds of it is since the pride controversy and they say that everything has been priced

in >> well, look at my budweiser. we talked about that one, too, that was a final trade some of the stuff is absurd. but i -- some of the same themes that are hurting grossers, let's be clear, the product mix at target became a lot of grocery and the move away from general merchandise is only going to increase but if we have price disinflation, doesn't help for target target very cheap to walmart remember, this is a pair trade, you can also, and it's underperformed probably 30% relative to walmart, which has been on a tear over the last few days >> i mean, i thought what was interesting in this note, the analyst is saying this is no bud light situation, because there's no clear evidence that market share is actually lost to competitors. it's not like a bud light is losing to modelo, which is now the number one beer selling in the united states. but at the same time, because of the mix, these customers could just be deciding not to spend at all, it's not a matter of going elsewhere. i'm not going to buy that t-shirt or that lawn chair, period >> well, i think that's been the problem with target. they have a really high level of

discretionary products you just don't have to go there and buy your clothes or whatever it is. but i do think what may benefit them, you brought this up, they've had a lot more grocery you are seeing higher income consumer -- less people are going to whole foods and more people are going to trader joe's and you can see that benefit in a target, too. they may buy a t-shirt, too, while they're in there some of this might be overdone, but you have to weigh this it's two things happening. it's discretionary products, people not spending, but also what's going on with the pride stuff. that will blow over. >> the pride thing is probably a short-term phenomenon. i don't agree that we're glossing over this half a billion dollars in shrink. that wasn't a made up story. and i think part of the price action of the stock is just that the move towards rotating what their inventory is and some of the past inventory woes they've had before, but there's so much theft going on that eats into the bottom line i think that's a big reason why the stock is where it is >> the downturn in target started in the summer of 2021.

it obviously got amplified when their whole inventory mess and it really hasn't fixed itself. this last headline is sort of the last -- but it's not entire story. people will look at that -- it's not what's going on here target's problems are target-specific, but to the point about kroger, they are consumer specific, as well i understand why people would upgrade on valuation, but it feels like there's another leg left >> i could see you buying lawn chairs at target >> why wouldn't you? >> you're that kind of guy >> yelling at the clouds >> i don't yell at clouds. >> yelling at people, possibly >> sometimes people walk by and, you know, people -- their dogs, you know what dogs do certain things >> what time is it >> time to go. >> probably time for us to take a commercial break >> final trades on the other desi ♪♪ ♪when the day that lies ahead of me♪ ♪♪

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it is time for the final trade. let's go around the horn courtney >> i think a lot is really lining up for emerging markets, especially with stick must in china. take a look. >> tim >> i think everything is awesome at fedex, so, i think the comps get a lot better with express. they're having their time right now. >> bonawyn >> don't look now, look at outperformance of small caps

iwm. >> guy >> stephanie back in ec was playing chrissy teigen and something -- might be the worst song ever written. psx, mel >> thank you for watching "fast money. see you back here tomorrow at 5:00 "mad money" with jim cramer starts right now starts right 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 you a little money my job is not just to entertain but educate, teach put in context. call me 1-800-743-cnbc tweet me @jimcramer. in bull markets people find reasons to buy everyth