what companies they're going to file with. >> etsy moving high an on a billion dollar share buyback fedex one to watch with earnings after the bell economic bellwether. >> we're going to watch that. >> that's going to do it for us. happy fathers after day to all the dads out there, including you, john. >> thank you "fast money" starts now. right now on "fast", the s&p closing out its best week since march. the naz daca up eight weeks in a row. gain of 2% into the weekend. can the markets keep the bull run going, or are choppy waters ahead? keep on trucking transports trucking higher is there time to get all aboard this red hot sector? later, charts of the week. with interest rates at lofty levels, these post new highs seemingly day after day. i'm melissa lee. on the desk tonight, tim

seymour, bonawyn eison, steve grasso, and julie beal broader indices following today. the nasdaq and s&p 500 snapping six-day winning streaks. dow shedding over 100 points still, a good week for stocks. nasdaq, longest winning streak in four years. the s&p seeing its best week since march. the dow also seeing solid gains as a springtime market rally brought in beyond big tech the dow's big winners, intel, up 16%. its best week since 2009 nike, amgen, cisco, all in the green. is the market breath a good sign for investors? tim, do you think that lasts >> i think it is there are people arguing there's not a lot of breadth but we have had over the last eight or nine sessions, all participating. the financials struggled a bit more you see names like cisco, look

at mega cap tech, and there are names that underperformed in that space cisco certainly one of them. it's interesting because now we look at the nasdaq up, i see, 30% from that svb bottom we're talking about an extraordinary month run we have had. it's also, when you think about this week, the ecb sounded more hawkish than our fed it's a week where inflation was pretty tame. we got numbers again today university of michigan consumer expectations on inflation at least out one year came in dramatically, now 3.1% purse 2 these numbers are better it's awe question of where this market came from that to me is what this week is about. bank of america said, you get these kinds of runs -- he said big rally before big collapse, and that's -- i mean, that's a little scary, but that's where we are with this market. does feel extraordinary. it's hard to justify multiples

>> you outlined -- but at the same time the fed got the message of two more rate hikes 6% potentially higher for longer, grasso. in spite of this, we rallied >> but if you have two more, you know what the end is going to come in two more rate hikes, right? so the end is near that's the way i -- the glass is half full type of fact of it but where you started the show was the broadening out of the rally. so everyone said that we're isolated to a handful of names now we have a lot more names participating. tim's good at focusing on the other names and sectors. it wasn't just the seven names if you really look at it, those are good things for a rally. if you look, either the whole market was going to cave or the market was going to broaden out women saw it broaden it ow i think it's going to broaden out more for a healthy market, you do need to have a little reversion on this trade, and i think the

fed made it possible for the bulls to continue to run but i think we're going to see a reversion a that trade v it settle back in, all normal, healthy. no collapsie, but we reversion trend. >> it's do you think the economy is enough for it to continue forward, or the fed presence going to overtake the economic strength we see now? they're saying the labor market does need to continue to loosen. hasn't gotten there yet. they're saying that they have the majority of fed panelists saying they want at least another 50 basis points. i didn't interpret that assaying that's the end game. i think the market -- it's the notion they will in fact stay higher for longer. let's be clear, the bulls fought the fed. the bears fought through the pandemic all the way down and lost so i think that at some point you start to get a little top

heavy. speaking of breadth, which is the initial question, if you start to look at the iwm, really over the last month, you have seen outperformance. that to me says investors are in fact believing the economic robustness is leading to a rally. so, with that in mind, i think this in the short-term does have legs however, do you have that fed overhang that right now in the short-term is no concern. >> over the last month sb small caps up 8% midcaps up 7%. julie beal, that's your neck of the woods. >> reversing a lot of the long-term trends where, you know, small caps have been consistently lagging, and i think it makes sense because much of the small cap index is not necessarily high quality, and in a recession, it's concerning if you look at the s&p 500 last year is a perfect butterfly image where we went up this year, down last year if you think of last year,

market selling off 2%, 3% every day. rates were low the economy was strong, and here we are now, banking crisis, rates are higher, and it's not totally clear how good the inflation is going to be that's a little unusual, right i think it bears making sure the businesses you own are good and strong. >> does feel like the market, to julie's point, is climbing a wall of worry. we've gotten through crisis after crisis we've got through the notion that rates will be higher, and yet we have di jested this and moved on is it time to get on board even here at these heights >> equities have been responding to positioning, sentiment. they have been responding to an earning season that has been absolutely fine. mega cap tech arguably had it great. those folks carrying the market actually at great numbers. i don't think earnings are going to expand. i think we have a place here also when i talk to guys involved in credit markets, necessary even necessarily high yield stuff,

the stuff you can see, but stuff that needs a market to market and guys in the leverage loan market and they're telling you, i'm looking at book of stuff, asking to bid on this. there is no market it's not that things are so distressed it's just the mark to market for less of the liquid world, especially credit, are nothing like the equity markets are doing. therl reacting as if there's not a care in the world on the credit side, and credit guys will not tell you that after the kind of move we have had, my chart of the day yesterday, we all -- chart of the market we thought was most important based on where we were now, i just look at the forward multiple and the -- on the nasdaq and s&p it's hard to say everything is great, because it's not great. we have had an enormous move steve talked about the health of getting a pullback what will be interesting is we're starting to see some of the companies that have done really well, some of the folks that benefitted from inflation the fact of the matter is,

inflation is coming down, you are seeing normalization, retailers that are not going to do so well let's see what fedex has to say next week. >> market sets up to hurt the most amount of people at any given point. that's always the case everyone's on the wrong side of every trade. look at what we had in the last week or two. what was the big conversation? all of the options were pointing towards a lower market people were making bets the market was going down. didn't happen. upset everyone what has to happen then? people have to close out their positions, cover their shorts, bring them back into the market. so i have been thinking that i was always worried about the recession coming what happens if we have the recession? i made this case on the show a number of times. what happens if we have the session already? because you always tell the recession when you come out of the recession any way. it's always in hindsight that the economists always give you their tick take on it

let's say we already dod that. market has to move higher. let's say the consumer moves bac back already, and now if you have a job, you feel confident spending. >> how do you know the markets have to go higher if we're seeing a recession the run since october bottom, could that have been the run -- >> i don't think the end of a -- i don't think any of us know anything all i know is every time bears have made a bet, they got run over and you had to pivot. now we're even more extended i would like to see the market come in to give people the chance to buy something at a discount, but statements the market doesn't give you what you want you might have to still keep buying the market. >> shaping up or ship out? we're counting down to earnings from fedex truck into the transport space next. later we're talking used cars and wine bars. >> nice. iseyrit te"fast mon" ghaf

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welcome back to "fast money. as you mentioned small caps have been having a run. fifth straight week of gains, longest weekly winning streak going back to december 2020. chart master sees more greens from here. let's bring in carter worther worth charting. >> area of the market or a theme or a part that has underperformed substantially, and yet it's underperformed to such an extent we're down to levels last seen in 2003 and the covid low. let's look at a chart and try to figure it out together first ratio chart. iwm russell 2000 etf relative performance to s.p.y the rounding bottoms were exactly to a penny to the covid low. such underperformance we're down to where we were at an epic moment here's another chart, 2003

the question is, do you play this for a bounce? it's really sort of an if/then statement. if the market is going higher and higher, at some point small caps come to life, or if the market is going to come apart, one might thing small caps get worse. at this point, so much is priced in it's a head you win, tails you win. we'll see. let's look at one particular stock. look at allegiant travel well defined downtrend in an area that's come to life, cruise lines, airlines, certain hotels. moving below the downtrend line. look at this another way to draw lines. identity cal chart, same time frame, but you can call it what it's known as, cup and handle bottom final it ration you'll see it here if we were to look at the circumstance since the low, we're in a nice well defined channel, and nowhere near the high of a channel, so the

presumption is high from here. we like it on the long side. >> carter, is the extrapolation that the rally is broadening and the other parts of the market can wmake up for a pullback in technology >> that would be the hope. it's not that they look good it's they're so bad they're good but to be fair, they have started to show some life. at this times the relative trade as much as anything else, taking the road less traveled everyone is buying more and more of the steepest, uncorrected stocks i think the real opportunity is reduce your exposure there and put it into smaller things or ai aingan aggregate of smaller things. >> carter thanks we'll see him shortly on "options action. julie, i don't know if you have a take on allegiant or if you can give us one of your top small cap picks. >> allegiant is really interesting.

this is an airline that caters solely to leisure travel it's sensitive, but they have been able to run their business where they're only in markets by themselves i think it's probably pretty well positioned going forward. you can't get a flight anywhere. so i think this makes sense. for small caps, broadly speaking, you really have to be picky. you have to be so picky, because these businesses can be so much more vulnerable. merits just being a little bit careful. >> the broader take on carter's charting is this broadening, looks better than s&p 500 and so on, bonawyn. are you going that route and moving down the market capsize to find values >> i mean, i'm with julie. i think it's tough to do it. for a minimum trade, yes, it is what it is you just ride the trend. when you start to part and parcel situation, the question, is do you think the best of worst of the economy is ahead of behind us? and for me i think there still

is real head winds i don't want to be sliding out of the risk curve, down the quality curve. no. >> should started off the show saying quality companies and russell 200, 40 % of those companies are unprofitable s&p, 16% of those companies are unprofitable if you're looking for high quality companies, unfortunately you get push into the nvidia that's up. you have to hold your nose and buy it, seems like the right trade, but i like the broadening out of the overall market. let's get to shares of fedex. up nearly 35% since january. analysts expecting a drop in both revenue and profit. meantime, u.p.s. has been lagging. u.p.s. authorized their union to draw a strike if a contract is not reached. what does this all mean? tim, this is a trade you're in. >> it is, and i tell you it's

been such an outperformance by fedex this period, and boy, they had it coming, too fedex is up almost 60% from the cpi bottom around 240 u you're at an important part in the chart. it's proving dynamic they had a lot to prove the last couple quarters. margins are better seeing slightly higher ground volume, and some of the difficult comps on express may be coming through here i think it's going to take a lot to push this significantly higher, especially after the move it's had. the multiple, which got down to a the times multiple already moved two turns. the relative trade against u.p.s., i'm almost ready to two the other way again. >> julie, fedex or u.p.s.? >> i think fedex in this case, i think the positioning is probably better and consistent in terms of their performance. and i always have anxiety when it comes to labor contact negotiations they can go really sideways and damage the reputation among the

customers that count on you. >> what do you think you're going with >> you're giving us something that's not -- >> expediters! expd, the chart on that one looks great. on a yearly basis they've outperformed fedex. >> he's proud of himself. >> i love it everyone's talking about what's right in front of you. i want to move that and talk about what's behind, expediters. >> coming up, home builders -- you're smiling from ear to ear good for you, grasso big gains this year, but can there be more upside ahead we're digging in on the foundation of this trade cnbc is celebrating pride month. here's julie beal. >> when i started my career on wall street, there was very little representation. you may know someone was gay privately, but it wasn't someone who was out and comfortable, so it didn't leave a lot of room for anyone else to feel safe and

step out i think that's the responsibility for us elders to be out there and to create space and safety for the younger gay people there's just as many gay people now as there were back then. there's just way more room for them now ♪ ♪ every day, businesses everywhere are asking. is it possible? with comcast business...it is. is it possible to use predictive monitoring to address operations issues? we can help with that. can we provide health care virtually anywhere? we can help with that, too. is it possible to survey foot traffic across all of our locations? yeah! absolutely. with global secure networking from comcast business. it's not just possible. it's happening.

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welcome back to "fast money. wanted to bring you an update on something we brought you yesterday. jonathan lit reveal his position on our show. here's what he had to say about the stock last night >> you see downside to

alexandria as much as 40%. >> that's right. for this to be valued as much as office, it's going to be down 30% to 40. before the show i was talking to a banker i said -- you know this? he said, i had no idea i got to see if i have credit on them. >> we reached out to the company. open invitation to the ceo if he chooses to come on what's your take >> jonathan does such deep work. he's talking about cell phone data no one else is doing. the point that there's a valuation discrepancy between where these medical office space and facilities were being priced relative to commercial, and that's really the arc he's talking about. >> let's move on got a chart of the week. a superfecta for you. >> what's that word? did you make that up.

>> i don't think you learned that at harvard. >> just means we have a lot of charts home builders. all hitting all-time highs this week this comes ahead of a slew of housing data next week, including earnings, home builder confidence, existing home sales. are more highs ahead steve? >> yeah, so this was the first one that was sold off based on rates moving higher, and now when you see rates maybe possibly starting to come in, and we have those buydown rates that offer incentives for new home buyers i would say it has a way to go in this trade. you look under again, lack at them all, look at the charts, let that be your guide. >> superfecta, i would have thought multifecta julie, do you like this trade?

>> it's interesting. look, they have what you need more of, and that's -- it makes sense in certain ways they have been able to weather it. i'm nervous given the valuation side for me i'm going to stay on the sidelines, thank you very much. >> structural issues surrounding the housing trade, they are there. it's undeniable. how much do you pay out for this trade at this point in. >> as we all said, it's about what stock you're going to pick. i'm going to reiterate i think you slide up the value chain. just because you don't have to downside, more stretched consumer there. >> i'm surprised that when i put to you the home builders you actually talked about the home builders >> i gave you multiple i did give a couple -- i almost want home depot. >> you like home depot here? >> i think i like the home builders better than home depot, but you do get that professional that's always there rocking their anchor in the home depot

stock, where enough an outsized professional -- if you go to the home depot, i know tim's always at home depot. >> i live in home depot. >> my mother-in-law gave me a home depot card. thank you, diane i got to spend it this weekend. >> on a shed. >> what are you going to buy. >> >> i need a new power drill, one you pop the drill in. >> sounds like a good father's day gift, seymour family. >> kids, if you're watching, please they were asking me yesterday what to get. >> it's a great idea time for the final trade ahead of this father's day let's go around the horn julie. >> tyler the software name just announced they're going to be moving a billion dollars in free cash flow. good enough for me. >> dads, happy father's day in case you don't hear it great company, but i think some

of the best -- >> newest member of the father family bonawyn eison. >> that does it for us here on "fast money. give your dads a big hug out there, please. celebrate your dads. don't go anywhere. "options action" up after this ♪♪ 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, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

right now, breaking down the action in china ahead of the big u.s./beijing meetings and charting how to trade beijing's breakout moves this week just sell it is now time to get out of the sneaker trade? later, bellying up to the bar with shares of constellation, hitting the used car lot with carmax and adobe we're live from the nasdaq market sitele on the desk tonight, mike khouw, carter