built up their war chest just looking at the markets, jon, the dow finishing down four, almost five points, but the s&p nasdaq higher. flash pmi, car max earnings tomorrow >> nasdaq is right back where it was about a week ago things felt like they were moving down, but not so much that's going to do it for "overtime. >> "fast money" begins right now. right now on "fast," financial fade while the major averages have been rocking the banks both big and small haven't come along for the ride is the sector still being ton by the svb hangover or is it something else plus, aws going all-in on a.i. shares of s of amazon, as they y they will invest big money in generative a.i we'll hear from the man leading this effort. and crude's latest fortune the options action on that a major buzz kill for one of boeing's big-time suppliers, and why the slice sector is struggling why so many restaurant stocks are red hod.

i'm courtney reagan in for melissa lee. this is "fast money," live from the nasdaq market site on the desk tonight, karen finer man, dan nathan, guy adami and our special guest tonight. we're going to start with an attempted rebound on wall street, at least after three straight days of losses. big tech and a.i. stocks helping the nasdaq rise nearly a percent today. first gain in a week the s&p managing to end in the green with amazon and fedex leading the way. the dow was the only index that was down today, just barely, though, still marked its fourth day of losses in a row let's look at the banks. lagging the broader market in a big way today. both the major bank index and the kre regional etf down around 3% lori, you've been on the road a lot talking to investors about regional banks what are they saying >> so, it's interesting. when i talked to small cap managers, value pms, people who know that regional bank space pretty well, i've actually been surprised they haven't -- i

wouldn't say they haven't been concerned, but they've been pretty calm. calm is probably the right word. a lot of people saying, look, we know there's opportunity unfolding here with e have to be patient, they have lists, in some cases, they bought certain names. they are not impatient i've been surprised at the tone. i wouldn't call it constructive, but it's been as calm as it's been i think there's a recognition, you have the big dislocations in certain industries, certain stocks, they prove to be buying opportunities, the question is always timing. and i think a lot of seasoned investors have come to that conclusion that you just have to be patient >> that's an interesting take. karen, is it time to look at some of these banks, has the damage been done >> well, all banks are not created equal. we sauf after svb, what was the disaster for some was actually mana from heaven for others. to me, i've been invested in the big money center banks, jpmorgan, i added to that today, you know, they -- their quarter was fantastic, because they are very -- they are very sensitive

to higher near term rates, which have only gone higher since the svb blowup so, they have a lot more deposits i think they're going to have a decent quarter the only thing that will be bad, m&a is going to be lower, trading may be lower, but those things are lumpy and they don't get a high multiple when they're great, they shouldn't get a high multiple when they're down, so -- i kind of like this setup going into earnings. i'd much rather have the banks be down than up. as to the regional, i don't -- i just feel like it's too hard we don't know what potential regulations are down the road, and also, you know, we all talk about the office space and commercial real estate being such potential issue, much more for the regional banks than the other banks, than the big money center banks that's how i'm positioned. dan, i think last night you were short regionals, short big banks. >> yeah, the regionals just -- again, you've said it, you've been very clear about who you think the beneficiaries of all of this, you know, commotion

have been, and it has been large money centers, specifically, obviously, jpmorgan. you can see the acquisition they ended up making and how the stock has reacted. the rest of the banks don't act particularly well. if you look at the kre, if you just think about what's going on here, okay, the fact that we had deposits backstopped, you know, back in march, you would have thought that some of the stronger regionals would have acted better they haven't so, your point about rates is, when do a lot of the analysis, some of the stuff i'm reading, they still have a scenario where their liabilities are higher than their assets right here so, with rates as high as they are, competing for deposits. we could find ourselves in the not so distant future in a similar environment as we were in march, and then what do the regulators do? what are the regulatory costs? what are the expenses? all of this is going to be bourn on the valuations of these regional banks so, again, i would probably much rather be in some of the large money center banks than some of the regionals, but i think there's probably further shoes

to drop. you started out the show by saying the nasdaq, you can't keep a good thing down, whatever look how poorly the regionals and the xlf traded today look how poorly the energy sector there's still stuff that just doesn't trade particularly well, and the stuff that trades well is keeping the entire market up right now. >> so, it sounds like you are taking a bit of the opposition position of what lori has seen with the regionals >> i think it's a time -- i think the clients she's talking to are thinking about valuations, the government backstops, all this sort of stuff -- >> i'm actually more in dan's camp than the investors i've been talking to. we've been neutral on the financials and the banks i've told people, there's plenty of other stuff to buy in small cap besides the banks. i think if you look at earnings, the sentiment indicator, we watch the rate of provisions, it's down around pandemic lows that is typically a hold your nose and buy signal, but i struggle with the lack of catalyst i hear valuation, valuation, valuation, these are good companies, but i struggle to understand what the catalysts

are, and i worry, like you guys, i worry about the regulation, especially heading into an election year where i think the democrats are going to be pounding that table. >> i was going to pick up on that regulation, guy with powell saying, maybe we do need to look at some more regulatory actions with these banks that have $100 billion or more in assets. what do you think about that what could more regulations look like and how would that impact these cheaps going to be harder -- regulation is coming, whether they like it or not, and a lot of ways, they brought it upon themselves i mean, the silicon valley bank thing was all of their own doing, clearly and there are going to be ramifications for that capital requirements are going to go up, as well. and is this really an environment where banks are going to thrive? i'm not necessarily sure that's the case so, you put all those things together, valuation, compelling, but look at bank of america, for example, delinquencies, karen can speak about that more than i, a year ago, they were like 0.84%, now they're north of 1% not markedly north, but north. trending the wrong way is my

point. so, you're going to see more delinquencies, more writeoffs coming down the pike regulation is coming capital environments more stringent. and can they pass those costs on probably not historic valuations are probably not as favorable as one would think in this environment. and the kre, quickly, to dan's point, traded up to -- over the course of the week, it's given back 10% or so doesn't trade particularly well. and bank of america, which is not a small bank, a quarter 0 of a trillion dollar bank, that's within a whisper of a multiyear low, so -- although jpmorgan wins this, i get it, there are otheren banks that are not really in a favorable spot >> interest rates have everything to do with how banks trade what are you looking at when you look at the bond market and watching this yield inve inversion? >> we talked about it on the show for awhile, think about the two tens for example we had a conner have sags with steve liesman last night, not necessarily as important as other spreads, but since we're talking about it, here's an inversion that went from flat toll 1.1%, back to 40 basis

points and now we're either side of 1%. over a year now, we've been inverted historically, that's not a particularly good sign and one has to ask themselves, how does this resolve itself i won't be pretty when it does so to me, it's a tremendous headwind that the market's not taking into consideration. >> it is, but before we get to our guest, lorlori, i want to a you about the vix. we're sort of come play sent, as a whole, in the market, beside what we're seeing, perhaps, in the bond market and beside what we're seeing in some of the financial stocks >> the vix, it was interesting to me when the vix was above 25. that's typically a buy signal. but you worry about complacency setting in i have other things i look at, as well. the net bulls have been at 20%, over 20% for the last two weeks. once that starts to hit a four-week average of 30%, you can see that reasonably happening within the next month or ypically gives yo

a sale signal. didn't think the vix at 13, they're not necessarily telling you you have to sell today, but they are telling you this thing is getting where you need to be careful. >> paul mcculley is with us, he teaches fed watching at georgetown great to have you here with us we heard from powell on capitol hill, in washington, d.c., he talked about a lot of things, though, i guess not a lot that we learned was new let's get your take on where we are right now on fed policy with this pause how long should we be in a pause scenario for rates >> well, that's the key question everyone wants to know i think that fed policy is actually in a pretty good place right now. even though the marketplace seems to be wrapped around the axel about the fact there's going to be a couple more hikes. the fed's restricting. that is hugely important they've gone from uber easy, i

mean, zero, and all of that sort of thing, to 50 0 basis points inside of 15 months. they're in restriction the yield curve is very much inverted and inflation is coming down so, i think the fed is in a good place, but they don't want to declare victory early. they want to declare victory late so, the price tag of the pause last week was two more hikes in the dot plot, that's not a policy that's voted upon, but essentially powell said, you know, that's a pretty good guess. so, essentially the marketplace has to grip with the notion that the fed's not finished they're almost finished, but not finished the fed's not ready to declare they are sufficiently restricting. >> paul, it's karen, thanks for being on i know you've been in the camp

sort of, they're much closer to done or should be done, but inflation is still not remotely close, right they are two integers away from the right first number how do you scquare those thoughts >> well, the 2% inflation target is a long-term target. it is not necessarily a real-time target they have it out there as a low star, and we've come down dramatically on the headline we haven't done nearly as much on core, in part because the housing market is lagging in the data, and in part because the labor market is still strong, feeding through to services prices, but inflation is very much going the right direction they will declare sufficiently restrictive with a handle.

they don't need to get all the way to two, so, it's out there as a load star, but it is not a binding constraint on the fed declaring victory later in this year, after it has one or two more hikes, possibly it's -- we got another employment report, obviously, another cpi report, before the next fomc meeting, so, essentially, the fed wanted to push the market out in time for finished and a pivot, and i think it's successfully done that >> i was kind of just going to ask that question. in some ways, it feels like we're in the upside down everything is a little wacky inflation is coming down, but it's still high. unemployment is still really low, but the yield curve has been inverted for over a year. i mean,has the fed successfull avoided a recession, are we waiting for it to happen or have we pivoted away? >> i think we're prime for a soft landing

i don't think that we have to have a recession i really don't it's usually important that the fed not overtighten, but i think they're in a good place to get a soft landing and the inverted yield curve can be taken as a sign that there's a recession coming, or it can be taken as a sign and an endorsement that the fed is going to be successful in bringing down inflation. and when it's successful, then you can have the front end of the yield curve come down. but essentially, chair powell was saying, yes, that's possible, but don't discount it now. we still have a bit more work to do, we're not to the holy grail, and i think that's where we are now, but i would not look at the yield curve as a sign that a recession is baked in the cake, but rather, a sign that the market believes the fed will be

successful in getting inflation down toward that 2%, not to 2% >> paul, if i had your head of hair, i would never wear a hat but you've worn a few in your career, so, put your equity hat on for a second, at 4400 in the s&p, are you surprised by how strong stocks have been? and given what you just said, can this resilience continue can we continue to sort of grind higher >> i have become a bit more agnostic, not optimistic, but agnostic from where we are right now. i've observed, just like everybody else, the leadership issue, the growth stocks, you know, shoring and so forth, anns came down even as the fed was taking up short rates and growth stocks are valued off the long end of the curve, so, that made sense. a.i., which logically should lead to a move

in that direction, and everything in that space will be overvalued, because we don't know who the winners are, so, people just buy everything so, i've understood it, but we've reached the point right now where i'm kind of agnostic on whether or not we can move forward from here. basically because the fed is putting out in time declaring victory and i you this it's going to be hard for the broad market to get a firm bull trend until we can credibly forecast the fed is finished and that a pivot is on a visible horizon. and i don't really think you can do that right now. maybe in a few months, maybe after powell speaks at jackson hole, but right now, i'm a little bit edgy about the upside for the market, for the stock market >> got it. thank you very much, paul mcculley, for joining us with your take. lori, where do you think the fed is right now do you think it's in the right place? do you think we should hold this

pause for longer >> you know, i think they should have paused previously i do think they have a lot of work to do on inflation, but i think they've done a good job of leaving the door open for further hikes. they could have done that before i honestly feel like what they're doing right now, just consulting with my rate strategist is really trying to rein in risk assets. i think powell suggested this is a guess, we shouldn't bank too much on it, but personally, i feel like what they're trying to do is push the expectations for cuts out, and i don't think that that is too detrimental to equity markets a lot of investors have told me they're looking to a pause opposed to a cut still talking about cuts next year tha year well, let's move onto our call of the day. longtime tesla bull adam jonas downgrading them to equal weight to overweight, but increasing its price target from 250 to 200. that's lower than where it

closed the day joe natinas saying expectations how much a.i. would boost the company have brought it to a fair valuation dan, we talk about this name all the time this seems like more of a valuation call than anything else, looking at it more as an automaker. do you agree >> sure, i mean, it's interesting, though, that, you know, he's raising his price target all these analysts, they lowered their price target this stock sold off 75% from its all-time highs 75%. it was a trillion dollar market cap. as wrong as people like mel have been of late, everybody has been very wrong on this stock either direction in the last year or two. and so, i just think it's interesting that, you know, you can take a victory lap, you can say, okay, the stock is up 200% off the lows and you can take off your buy rating, but you were lowering your estimates the whole way down what i'm not convinced about right now, the fundamentals improved since they reported

their q-1. some data say that's not the case, that the automotive margins are going to be under pressure i know there's a lot of excitement about the, just adoption of their charging model by many of the eoms here in the u.s., but then also this a.i. stuff, which is not, i think it was in the david faber interview last month, where he said that we might be able to have an a.i. moment that seems very elon musk to suggest that in the middle of, you know, a frenzy that we have in the stock market, so, to me -- again, like, some of the biggest bulls on this stock are selling it in april, too, so, you know, like, have at it, people >> guy, what do you make of 250 as a price target? >> reasonable. i see what he's doing here he's getting in line with where the stock is i've been dead wrong since i want to say 165, 170, but that's the way the stock -- that's what it does to people. but it's a margin story at its core, i think. understanding all the other things going around, and legacy automakers, i think margin 16%, tesla is probably sub 20, headed

that way at a certain point, people will question valuation if margins continue to contract and i understand the bull case he also, adam jonas, his bear case is a $90 handle for this stock. >> bull case, 450, bear case, 90. >> >> hit the about that for second when the stock was 110, you couldn't give it away and there was a cascade of people saying, you know, tesla's in a lot of trouble here, so, as quickly as people get negative on the stock, that's how quickly people get euphoric and i think we've hit that level. coming up, down arrow. shares of spirit arrow systems dropping to its lowest level of the month. what's behind the move and the ripple effects on airplane makers plus, a good prognosis for health care. the adtrers debate when "fast money" returns we're back in two.

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welcome back to "fast money. we've got some breaking news on 3m we've got the story on the fast line >> hey, court. 3m announcing a $10.3 billion pfas settlement with public water suppliers in the u.s. that have sued the company on pfas contamination. they expect to record a pretax

amount there and the ceo says this is an important step forward for 3m. one thing i would point out, this $10.3 billion does not cover the growing list of states that are suing the chemical manufacturer over toxic forever chemicals that are linked to illnesses, so, we still need clarity on those specific legal setbacks, but this news of a settlement tied to water utilities does suggest the company is making progress in addressing this pfas legal setback. you'll see shares of 3m are popping in afterhours. court? >> thank you, seema. yeah, shares up almost 5% in response. well, buzz kill now on spirit aerosystems sharing dropping 9% for the stock's worst day since the start of may the company halting production at its watch that, kansas, factory, following an announcement that employees will strike starting saturday our phil lebeau is here with the latest hi, phil

>> courtney, you gave the headlines there, which is essentially that spirit aerosystems has halted production ahead of the contract with the international association of machinists. their contract expiring friday night. a strike is expected on saturday and that's why the stock was down more than 9% today. this is critical to bowing and i want to look at sharing of boeing it wasn't down -- i think 3.5% today. the reason why is because people are going to say, well, if spirit halts 737 max fuselage production as well as production of other fuselages, what kind of impact does this have on boeing? at this point, boeing is not changing its production schedule it has some inventory when it comes to the 737 max, but this comes at a crucial time, if there is an extended strike at spirit currently building 31 a month. they are expected relatively soon to go up to 38 a month. the goal is to eventually build it up to 50 a month by 2025. and also keep in mind that when

you look at not just boeing and airbus -- airbus also gets parts from spirit aerosystems. when you look at others within the aviation supplier complex, whether it's ge, they've all had a heck of a run over the last year but if we see an extended strike in wichita, at spirit, and i'm talking about more than a couple of days, you know, it would have to be something that goes several weeks, if not a month or so, and nobody knows if that's going to happen. then you would see some real pressure on bowing, as well as airbus, and by extension, the rest of the aviation suppliers >> got it. that's one to follow while we have you, phil, what's going on with ford and possible job cuts >> right well, there's headlines that have just crossed that ford may be considering cuts. job cuts white collar job cuts. now, we don't know how expensive these may be we do know that ford has said for some time, and remember, they last year initiated 3,000

white collar job cuts as part of their effort to really cut into the costs at ford. and we know for some time ford has a cost issue it has to become a leaner company, a less complex company. so, the question becomes, how extensive are these job cuts ar going to be? and if it's a case where they're going to be in one area, most likely on the internal combustion side of the business, how much does it help them short-term and long-term don't be surprised if you see more with this, not just with ford, we saw this at general motors last year these types of buyouts or job cuts is all part of them trying to become much leaner. they need to be much leaner. >> got it. thank you very much, phil. appreciate that. guy, you were saying that the spirit halt is a big deal. phil ran through the ripple effects, and gets worse the longer it goes on. >> it is a big deal, because i think spirit thought they had this nailed down they thought they had a four-year agreement in place and it -- because this seemingly

came out of the blue in terms of the strike but 79% some their workers rejected the contract and 85% went forward with a strike, so they're flexing, clearly, and maybe they feel they're empowered to do that in this type of labor environment. so, this feels like it could actually last longer than, well, i mean, today's market move suggests it will last for a period of time, but last longer than the boeing move might suggest. so, this is something you should watch carefully. well, there's a lot more "fast money" coming up. pharma full swing. investors loving on lilly, as shares hit all-time highs. so, can the name bring good health to your port foul yoel? plus, a.i. delivery. how amazon is trying to keep one the likes of microsoft and google you're watching "fast money," live from the nasdaq market site tes sarinimque. we're back right after this.

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welcome back to "fast money. eli lilly topping the tape today, jumping a percent to close at a record high dating all the way back to 1952 the stock remains the firm's top pick with ongoing strength in its drug pipeline. so, with shares up 25% this year alone, is lilly poised to remain the leader in big pharma karen, what do you think more room to run, or is this it for awhile >> oh, i don't know. i mean, it's really expensive, as it should be. the market for this is enormous. i was long know have to nor disk and long ely lily on this ozempic, mounjaro, and it's an enormous opportunity

how much is priced in? i'm not really sure. there are other competitors coming so -- it's just too rich for me right here. >> lorilori, what do you make in general? >> i think health care broadly and bio tech and pharma are some of the more interesting places in the market right now, especially as the rally has started to feel a little bit frothy, might be time to add a little bit more defense. you've got really, really nice valuations, you know, not necessarily for every individual stock, but at this level it's really the only attractively valued place in defense right now. so, i don't think investors get that too discriminating of a stock level. you've got a nice upward earnings revision story in this sector, and one of the things, you know, that we've noticed recently just in looking at company commentary in our conference in particular, there's not a lot of macro going on in this sector. i went to our health care conference recently, my boss got a little annoyed with me, because i was talking about how bored i was. i'm not hearing anything macro here, except that labor is

getting better for these companies. and so, i just think there's a lot of nice stuff happening at this sector. it's kind of macro agnostic right now. and, you know, i think people will play the winners. >> dan, you need a little macro agnosticy -- >> paul mcculley said it >> the word of the day >> it's interesting. take a look at the xlv, you know, the etf that tracks the sector you have some of the big pharma, but then you have the unh, the largest holding, and that has not acted particularly well, there's a whole list of things, i know there are some that don't like owning these names into a presidential election year that sort of thing but from a valuation standpoint, it makes sense you say defense, it seems like every strategist that doesn't really want to go out on a limb too far on some of the tech stuff, the stuff that's been driving the market, you hear energy, right? and then you'll hear value as it comes to health care i'm probably more in the health care camp than it would be in emergency right now, just because if we do have a slowing

economy, i don't think you want to be in energy at the moment. well, coming up, amazon opens the a.i. flood gates investing big bucks into a pray that whelps customers get a piece of that craze. and the pizza puzzle demand for the party staple usually seems recession proof, but no one seems to have told the stocks this time so, does there need to be a change in the recipe "fast money" is back in two. at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. i promise - as an independent advisor -

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welcome back to "fast money. stocks trying to rebound after a three-day losing streak. the dow finishes basically flat. the s&p up .3 and the nasdaq jumping 1% as investors load up on tech stocks apple setting a fresh high, ending the day at $187 a share shares up 44% this year. and home builders trading near records, as well dr horton and lennar hitting all-time hikes earlier this week pultegroup notching another record today. amazon jumping 4% today. its cloud unit, aws, will invest $100 million into a program that will help companies build and create custom generative a.i.

products cnbc's deirdre bosa spoke with aws's ceo about the initiative >> yeah, so, courtney, some investors, they've wondered over the last six to eight months, where is amazon in this generative a.i. zeitgeist? yes, it has been working on a.i. and deploying it for years, but until today, there wasn't that kind of splashy investment or product that we've seen from the likes of microsoft and google. so, putting that $100 million behind a whole generative a.i. program is essentially telling investors that amazon is in this a.i. arms race, and it is just getting started. that's partly why the stock popped today as you mentioned, i spoke to aws's ceo in san francisco, and he said they're going to be doing it differently than rivals microsoft and google have a listen. >> such an important concept here, because otherwise, you ask yourself a question, where are the different runners three steps into a 10k race? does it matter the point is, you're three steps in and it's a 10k race, and what

people need today is choice and to be able to experiment and to be able to figure out what different types of models, what different types of use cases are most powerful. and that's why customers are so excited to work with aws for generative a.i >> so, amazon is focusing not only the consumer necessarily, but at least on this program on the back end and that is helping cloud customers build their own products and applications. so, it's a being announcement. is it as splashy as an openai or kind of search function, maybe not, but a lot of wall street is starting to come around to the idea that amazon is going to be a major player in the this and potentially a winner and you have all of the data that it holds, which is key to this shift courtney >> absolutely. all the different verticals, who knows what amazon can do d, thank you for bringing that to us. what are your thoughts on a.i. >> one idea i've been pushing back against is that whole tech rally has been all a.i. driven, and i just don't see it. we've had catalysts that have pushed people into a certain number of these kind of big

megacap tech stocks. a.i. is one of them. a.i. really only exploded into the conversation in may. it was sort of trickling in prior to that. so, i think it's, you know, the concern about a.i. contributing to froth in the market is a little overhyped that's the overhype i see there. but i think we're sitting here with markets, you know, having -- i think we've priced in the recession last year, i think markets have been baking in a recovery in 2024 next year, but i think it's a sluggish recovery consensus is expecting 0.8% gdp growth typically growth stocks do well in a sluggish economic backdrop. and we don't have a lot of interesting growth stories out there now. we've got reshoring and a.i., that's about it. so, i'm sympathetic to the concerns that this is contributing to frothiness and concentration, but at the same time, i understand how we get there and it feels like a very early conversation >> karen, you know, d said maybe this is an early conversation with amazon and a.i. and adam said, look, we're three steps

into a 10k race, but do you want to count amazon out here is this something you want to dip into now early >> well, i'm long amazon i think that what's interesting about amazon, the biggest cloud company there is, and a.i. will use a ton of cloud computing amazon, though, unlike, say a.i., you know, the -- i don't even know -- i don't even know exactly that they do t, but i think for amazon, they don't do this to pump their stock there's a lot of players that want the magic pixie dust of a.i. to, like, you know, to fall on them and to help their share price. amazon has never focused on share price. they don't care. what i think they do care about is cloud is not growing as quickly as it used to, and they want to be very much in the race, they're the leader right now tin cloud they don't want to lose that

they're going to tell the world, we're going to have a.i. capabilities, because they want to develop the best product. i don't think this is about their interest in, you know, gunning the stock in the short-term >> and have a.i. pop up on their transcript searches. a.i. is the main topic at nvidia shareholder meeting today. the ceo saying that a.i. should be regulated we believe that future regulation will instill confidence in the marketplace to adopt a.i. practices and services, which will help expand and grow the industry. shares flat today, but posting a monster rally this year. dan, your take, generally, on a.i., i guess, and nvidia's idea that it should be regulated here >> yeah, i think it's a lot easier for nvidia to say that, they're not the ones building the models, they're selling the picks and the shovels, and that makes a lot of sense, they're selling a product that's -- they would hope for it to be commoditized at some point that means thattheir advanced chips are being used all over the place, rather than just some of the early companies that are trying to harness in technology. and the one thing about amazon,

and i think you have it right, karen, they need to defend their moat slowing growth as it relates to aws, they are losing market share. they have 33% of the market share as it relates to, you know, the cloud, and so, they need to offer these sorts of technologies otherwise they won't have new customers come and they won't have customers, existing customers scale up. and nvidia thing, you know, your point, lori, is a good one, maybe it's just may some of the data you're looking at, but without nvidia, you don't have the microsoft and the google and the amazon rallying the way they do, because without the verification of that order growth that they saw in the current quarter, there's no reason to rush in and push the valuations of my haicrosoft and google and amazon. >> and throw up an amd to your point, sort of a counter, amd reported early may stock went down 10% in a straight line post earnings, it

got back on its horse and rallied 55% on the back of a headline that they were in partnership, some sort of collaboration with microsoft to compete with nvidia on their chip front and the stock went from 80 to 135 nothing changed for amd, as a matter of fact, again, the quarter wasn't particularly good all that changed was those couple of worlds and the market took off, so -- there's certainly some froth around that again, amd's a great company, but it did not deserve to rally 50% over the course of a month and a half. well, coming up, energy taking a hit this week and options thadders are pumping in. how they're playing one energy stock. that's up next and throughout june, cnbc is celebrating pride month. here's the cmo of poshmark >> for me, as an lgbtqi who recently went through a sure ga si process, i'm very thankful that we have two twins i was shocked at the number of people who felt uncomfortable asking me questions about the process. and for me, i welcomed the opportunity to share with them about the struggles, the costs,

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welcome back another rough session for energy the sector one of the worst in the s&p today and down 3% this week options traders are bettin things could get much worse for one big name in the group. mike khouw has the action. hi, mike >> hi there. i was taking a look at pbr this thing traded seven times its average daily put volume most of that, the result of a single large trade somebody bought 80,000 of the july 14 v/13 put spreads. spent 22 cents a contract for that the buyer obviously bets that the recent rally that the shares have seen mail reverse, and we could go back to those earlier lows that we saw at the beginning of this year >> all right, mike, thank you very much. guy, what do you make -- >> makes sense if you look, i don't know if you can throw a chart up, but back in march, it traded up to 15 and failed and we're basically right there now. this is a logical level where you should be taking money off the table, so, mike is probably

spot on. by the way, dan, that show, what is that show on -- >> oa. >> friday? >> friday, 5:30. >> courtney will be hosting tomorrow. >> sure will you don't want to miss it. going to be a great one. >> never do. >> that full episode is at 5:30 tomorrow, friday. coming up, our guy, he knows his way around a good pizza pie. but the beloved staple from naples is not delivering returns this year what's going on? we'll be joined by the ceo of slice, that's next, for an inside looatk the problems. plus, more cheesy puns ahead. stick around we'll be right back. ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro. icy hot pro.

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welcome back to "fast money. big problems in the pizza verse. domino's and papa john's sitting out what's been a big year for restaurant stocks. kate rogers reporting the driver shortages and customers returning to sitdown restaurants is weighing on the delivery business but could these underperformers be primed for a pop? or is there much more pizza pain ahead? for more on that, let's bring in slice pizza founder and ceo. thank you so much for joining us we often think about pizza as a possible recession trigger it doesn't seem luke we're

seeing that from the big players, but what are you seeing in your business >> yeah, i think pizza has been synonymous with some of the big chains, but what we're seeing is actually a renaissance on the independence side. slice powers 20,000 independent family-run businesses, pizza shops, you know, the staple around the corner. with all of the tech and services that benefit the big chains and what we're seeing is 4,800 new independent pizza shops opened up last year, an all-time record, compare that to 222 locations for the big chains and so, really what we're seeing is a shift from big chain to indin i independents, as the technology and convenience factor is kind of evening out through services like slice and other players in the space. >> i was having a conversation with a mutual friend of ours from ggv who is also an investor in your fine company, slice, yesterday, and he was telling me, he was saying, of all the companies he looks across, he

sits on lots of boards, he was talking about the trends, he said they are not seeing a slowdown in cap-x, in business in general give us a sense, because you just gave us the scale of which, you know, you're helping lots of smbs across the country. what is it like out there? do you have your finger on the pulse? there's an obsession right now with whether you're going to be in a recession or not, at some point this year, i'm just curious what you are seeing. >> i spoke with the owner of billy's pizza in brooklyn new york, johnny from johnny's pizza in north carolina, and the comments are, say are seeing sales growth year on year. certainly, there's the consumer trend in terms of their appetite for pizza has remained consistent there's shaift happening from some of the larger chains. as their prices are creeping up, but the quality doesn't match. so, certainly, we're seeing

strength and again, part of that is also because pizza has always been a bit of an economic value product and play, you know, for a family, you can feed an entire family with a large pizza, for the average is about $16 not seeing any softness in the category and we continue to see players, small businesses, expand there's businesses opening up, there's second, third locations, and as well as moving their entire business online, obviously that's a big part of the consumer shift >> the average price of pizza is $16, is that where it is now, before inflation, or how has inflation impacted the cost of the ingredients that go into pizza, potential delivery fees or other sort of service fees that are related to getting you that pizza >> yeah, i mean, we definitely see an uptick in menu prycices we have actually this great slice of the union.com platform where all of the insights are

actually made transparent for anyone to go and consume, so, we're seeing menu prices inch up definitely seeing delivery fees kind of inch up, as well as labor shortages. continue to plagues big chains and the family-run businesses. however, i think the difference here is that the consumer is willing to pay for quality and that's what you get with a family-run small business. and i don't know if the quality matches the price with some of the big chains that's my hypothesis i think that dom nope's and papa john's have always been a value play, and the question is, does that still hold true today as they face pressures, you know, both from food prices and labor shortages. >> thank you so much for joining us yeah, i think quality ingredients is one pizza friday tradition for my family is another. how do you trade it? >> yeah, the comparison of the way domino's has traded, it hasn't traded particularly well and we've seen the burrito companies do well, the burger companies do well, that sort of

thing, shake shack is trading at a 52-week high so, i think businesses like his that are enabling small businesses to better compete, i think that's a really interesting trend. coming up next, already time for final trades ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪ (vo) it's red hot deal days from verizon! where you can get the incredible and relentlessly work with you to make them real. iphone 14 pro max on us with myplan. so you get exactly what you want and only pay for what you need. act now and get iphone 14 pro max on us when you switch. for a limited time only. it's your verizon. what if you could make analyzing a big bank's data... no big deal? go on... well, what if you partner with ibm 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. compliance standards? mm-hmm. so they get the insights they need...

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it's time for the final trade. lori, you get to go first. >> i'd buy health care if it's cheap, it's boring, and it's got good earnings >> not a lot of macro situation going on there karen? >> yeah, you know, this is a hard one, so i had to sell some apple, just valuation just getting too high and i hate to do it, but i had to sell some and so for my own personal stock, i gave it to charity. hopefully doing the right thing. >> dan >> never sold. she did the right thing. when she did it, she did it the right way. she's a genius you know it's funny, health care thing is a good one, we spent a lot of time, we've been talking about the weight loss drugs, lilly and the valuation. pfizer, we covered that story, they are working on an ral this one just seems really cheap and caught in that covid hangover, but this could probably start to work, because if you do start to get revisions, this thing, people

will pile in >> guy >> courtney, great having you. lori, wonderful having you what do they call those things, public service announcements if you are getting pizza with, like, pineapple or any other, like, oranges, you are doing it wrong. do not call me, don't at me on twitter. it's just not allowed. t amgen at these levels at the, courtney >> thank you for watching "fast money. 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 help you make a little money my job is not just to entertain but to explain and to educate. so call me at 1-800-743-cnbc or tweet yes @jimcramer this market is just addicted to growth it can't stay away