with the business roundtable. trump has been advocating for lower taxes and new tariffs as part of his campaign. president biden was invited to speak, but he is abroad for the g7 summit, which kicks off tomorrow, as well. >> plenty ahead. >> all right, record closes for the s&p and the nasdaq. the s&p finishing above 5,400. that's not right. that is right. that's it. that does it for us here at "overtime." >> "fast money" starts now. live from the nasdaq market site in the heart of new york city's times square, this is "fast money." here's what's on tap tonight. the fed's inflation win. the s&p and nasdaq hit new records as cpi comes in soft er than even jerome powell expected. we will debate. and banks breaking out, ending a three-day job draft, but one big name didn't come along for the ride. the stock on the sidelines and what it means for the sector. plus, tim's blicep's trade

gets a boost from lyft's surge. energy stocks take a hit. and an interesting trade in gamestop peaks our interest. what's behind the late-day selloff here? i'm melissa lee, coming to you live from studio b at the nasdaq. on the desk tonight -- tim seymour, karen finerman, dan nathan, and guy adami. we start off with markets pairing their gabs after jerome powell's press conference. but closing well off their highs of the session. the dow down about 35 points, take a look at some of the big winners of the day. banks rising more than 2%. home builders up more than 3%. apple and nvidia seeing outsized gains today. more on apple in a minute. but we begin with the headlines from the fed and the inflation rourt. let's bring in steve liesman, who is there on the ground. steve? >> hey, melissa. it was a dovish morning followed by what you might call a hawkish afternoon for markets. and you can see the entire drama playing out in the bond market, where yields plunged on the two-year note with that better

than expected inflation report this morning. then they bounced higher with a more hawkish fed statement. bonds did hold onto some of their gains as stocks seemed to ignore a good part of the -- what the fed did today. forecasts for the fed this year, for the funds rate went from three in march down to one right now for the full year. they did raise the neutral rate, suggesting they think they're less restrictive than they were before. they see higher inflation this year, and a modest nod in the statement to the recent inflation progress that we've seen. fed chair powell was maybe a bit more dovish than the statement and the projections. he suggested one or two cuts were still possible beginning in september, and that he welcomed today's inflation report. but he said to remain cautious, because of that spike of inflation we had in the first quarter. >> what we've been getting is good progress on inflation, with growth at a good level, and with a strong labor market. now, ultimately, we think rates will have to come down to

continue to support that, but so far, they haven't had to, and, you know that's why we were watching so carefully for signs of weakness. >> the september fed funds futures items the story. exuberance lifted that probability 73% from 55%. traders then dialed back their enthusiasm and bid it down to 61% after the fed meeting. i think you can think of the difference between the fed and markets as one of the optimists and pessimists about inflation. the market, they've seen the sun break out from behind the clouds during the last two inflation reports, and they're ready for summer, the beach, and rate cuts when they come back in september, melissa. >> steve, i'm wondering, what is the cadence in terms of the information flow to the fed before they actually decide on their dots that go in the plot? in other words, do they walk in thinking that we're going to be at two or one and then they get the cpi data -- i'm just

wondering if they would actually update their stance based on data released this morning. >> well, they certainly could. how many did, we don't know. powell was asked that question, it was unclear from his answer how many actually did upgrade their outlook, because of that. it's an interesting question, but melissa, i'd go a step further. the bigger question to me is, does the last two months of inflation, which have been better, do they sort of wipe out the first three months in the sense that they tell us that those first three months were really indeed a beginning of the year phenomenon or seasonality that wasn't adequately directed for? so, to me, it's not just one report or two reports, but the last two, and maybe a third one, if we get another good one for the month of june, do they kind of say, you know what, we were head faked by the first part of the year, and that shouldn't be as much a part of our outlook as it seems to be for the fed right now. >> hey, steve, it's karen.

thanks for being on. which do you weigh as more meaningful piece of information, that cpi print or the hawkish tone from the chair? >> you know, you got to take both of them into account, karen, i don't know that i can weigh either, because what you're trying to do, in my job, and then, by extension, in your job, too, is figure out what the reactction function is. how moved are they going to be by the data that comes in? a british economist made a joke that i don't even quite get, but it was sort of funny. he said the dot plot is going to have the shelf life of liz truss' lettuce. i guess there was a thing about her lettuce wilting quickly because she was in office -- i think it's going to have a shelf life of a scaramucci, something i understand, anyway. in any event, if you get a couple more -- this one looks to me -- i was surprised that so many -- there were a bunch of

people, ten officials were at 467 or lower in march, and now none is lower than 487. so, that's really a big shift on the committee. they kind of went -- somebody -- i don't even like this met or the, said the fed has sort of ptsd from the first quarter of the year. and i think that's true, and part of it is mechanical, because i did run the numbers, and powell's right, if you do zero twos, which are pretty good on core pc for the rest of the year, the year over year rate does go up, the three-month, six-month comes dourngs it crashes down over that period of time, but if you're going to follow the year over year look -- here's the danger, and i'm interested on whether or not this becomes a trade. it hasn't been a trade for awhile, but is the new trade the fed making a mistake here? the fed holding on too wlong and driving the economy down into an unneeded downturn? if you hold to that inflation report, if you follow the year over year rate, i think you are

led down the wrong path. >> that's interest, steve, i don't know how it came up, but growth in payroll jobs may be a bit overstated, which i thought was sort of interesting. what were your thoughts on that? >> i think that's possible. you got to be really careful, you know, there's a plus or minus 100,000 on how confident we are in the number that comes out. i do like to follow the unemployment rate, it has been kicking up. and you have a cross that shows the unemployment rate gradually coming up and the inflation rate coming down. that's the response you would expect to see if, indeed, the fed was restrictive. and so, you're kind of seeing it play out. the fed has only been at this rate for what will be a year in july. but you do see the inflation rate still coming down, and today's number is really interesting, because almost immediately after -- now, hold on, because we got to get the wholesale report tomorrow to get a feel for, you put that together with the cpi and you know what the pce is going to be at the end of the year, it

shouldn't be this complicated, but it is, i'm sorry. goldman almost immediately came out with a report saying they see 2.6 for the core pce by the end of -- that will come out at the end of this month. that is what the fed forecast for the full year. so, that was my question to powell is, why do you not see any real gains at all in the inflation rate this year? >> steve, thanks. always great to get your analysis. steve liesman in d.c. >> analysis and his jokes, or, not his jokes, retelling of jokes. i think the entire fed meeting will have that -- less than that shelf life of liz truss' lettuce. they're funny over there on the other side of the pond. i look at the move the equity market had upon the announcement at 2:00 and then kind of what i call the cha-cha-cha. you could have said there's no fed meeting today. the cpi was what the story was, and the market we rebalancing. i think the market, whatever the fed said today, who cares?

that dot plot, i kind of agree with that number. it was 3 to 1, that was seemingly hawkish, next year, you cut down one to five, but ultimately, you look at what the bond market had done through that cpi number and that told you all you needed to know. the market is getting more comfortable with an environment -- i think we've had al mosaic of economic data over the last ten days and i'm talking about joments jolts dat payroll number that was so much more balanced in terms of the job openings and the level of unemployment that the fed is kind of like, yeah, we're hanging tight. of course he's going to try to be as hawkish as possible, and of course, as he wants to do, he can't help but be dovish. today, the story was more about cpi than it was about the fed, and i think the market is kind of reading through that. >> yeah and steve just said, the big question is, right, the fed going to make a mistake? are they going to kind of keep their foot on the pedal for too long? if you think about that, the potential to slow down the economy, i mean, on the flip

side of all that data that tim just mentioned, you know, that looks pretty strong, there's actually, under the hood, been some weak consumer data. so, when you think about that, there's also two different economies right now. if you are an asset holder, right, before rates went up, if you are long the stock market, it's been a good time, right? real estate's become kind of scarce, because there is, you know, not a great amount of demand where yields are right now, right? and we know there's problems in commercial real estate, and that's a different story, but you know, on the other side of it, guy just mentioned that question about wage growth and the like. and that's the thing, if we just, on a cumulative basis, as we talk about with inflation, that's hurting middle and lower class right now. and that's the thing that has the potential to really slow down the economy. >> right. but they are getting some relief, at least in the grocery -- the things they spend on every day. >> insurance big. >> insurance came down. >> i'm not going out to dinner any time soon. the cost on eating out are getting absurd. and we learned that. >> but grocery bills should be coming down. beef, seafood, vegetables, eggs,

milk, butter, all those things came down on a month-on-month basis. so, there may be sdata showing the consumer is stretched, but maybe there is some breathing room. >> i agree with tim on the point of, to me, the cpi was far more important, and i understand him wanting to be hawkish, why not, why give it away for free? >> yes. >> i've heard that expression in relation to other things. >> cows and milk? >> yeah, something like that. >> i heard it. >> but i -- i have trouble believing the argument that they're going to make a terrible mistake by not cutting soon enough. let's say they are a little late for a short amount of time -- i have trouble thinking that will -- that will just blow the whole thing. >> after 11 increases, you know, they delay 25 basis point cut by a ninths? i don't know if that's going to the detrimental. >> they need to see two more cpis like we saw today. why would you wait? i mean, why would you move any

faster than that? and it's why the calendar and the dynamics, it maybe doesn't matter, but it means, yeah, maybe you get september. is it september and december, just december? but the calendar math and the need for two cpis that are like today or better is telling you what we're going to get this year, so, that's why everyone is looking to next year, and frankly, i think that's why investors are starting to look out on duration in the bond mas market. >> last night, maybe the ten-year auction was so good, in fact, maybe people were dn. >> in contrast to the poor auctions we've had. >> maybe they were front running what the anticipation -- >> the cpi. >> yeah, now, let's see. to me, i'm actually -- that late rally in yields, selloff in the bond market, is interesting. so, you know, i'll remain one of the few people that still think rates are going higher, but interesting to see how it plays out. >> for more on the fed decision and inflation, let's bring in michael schumacher, the global head of macro strategy at wells

fargo securities. so, what did you make of this decision and the market reaction? >> yeah, cpi was the dominant piece of news. you think about powell, he's a little bit downbeat. i thought he might smile a little bit more. he wasn't all that fired up. but the market is going to look at the data. and this was a great print, but it's only one. think about the jobs report, only a few days ago. red hot, wages up, jobs sky high. that was bad for the fed, so, a few days later, we get good news, but it's only one piece. so, i think people need to see a bit more before they really get bulled up. >> so, you haven't changed your outlook based on cpi/fed today? >> decent environment for risk, because we know that a rate hike is virtually certainly not going to happen, so, that's a positive. but as far as getting that -- that extra push from a rate cut, that's got to wait for awhile. i agree with tim, that's twice in one day, tim. >> be careful. third time is not going to be the chairman. >> in terms of good data prints,

you need more good news on infl inflation. not just one more, probably a couple. not yet time to buy a lot of bonds, in my opinion. >> yeah. interesting you say that. so, you saw the move down in yields, we basically stopped where we bottomed out a couple weeks ago. is it just in this range, four and a quarter in the ten-year, or is it going to break -- i think it goes high, but what is your sense? >> i think the range is right. the big news is going to be the actual cut. when it happens, september, november, december, who knows, our advice to clients is pretty simple. at that point, the market will price a lot more rate cuts. that's when you get the big move down in yields. until then, probably not. so, if we think out towards the end of the year, yes, we do think there will be a cut or two, so, ten-year ends the year 4, maybe it's 3.90, somewhere in that vicinity, but the big move is going to be a bit delayed. >> so, michael, is that what the equity market is doing then? why would you wait?

and obviously the equity market hasn't waited since last oekt, but the argument is that equities in the markets are a discounting mechanism. so, to me, it's really power whafl you're saying when you simplify it and maybe not overly, i don't think you are, but this is a decent environment for risk. the vix went down to 12 today. it went down 6%, almost on that cpi number. so, doesn't this say green light equities? >> it seems like a decent green light signal for risk, and if you compare volatility in rates, fx volatility pretty low, it's the rate market that seems a little offside, as far as the volatility measure. and one more reason why i think people and rates are reluctant to take risk, you think about the shape of the yield curve, it is inverted. it's unusual. in bond land, if they can't fund at a cheap level, they do not want to buy that five-year, that ten-year, let alone the 30-year security. that has to change a bit.

>> so, you said you think once they start cutting, you think there will be multiple cuts. why should that be the case, if you look at over the last 60 or 70 years, where we were right now has been about the average, which includes the '80s, super high, zero for a good amount of time also. why should it be very different than that? >> it's interesting, karen. if you go back to the 1980s and look at the average of the easing cycles since then, the average size of the rate cuts in the first year alone is about 260 basis points. it's huge. yet, if you look at what the market price is right now today, from september of this year, so, let's assume that's the first cut, to september of next year, it's maybe 100. so, i'm not arguing the fed's going to do 260 basis points, but the market pricing seems awfully light. so, there's quite a bit of room in our view for that to go up to 150 or 175 basis points, maybe 200. and probably in pretty fast order, frankly. that could be a month or two,

maybe. so, the market seems awfully pessimistic. that's hard for us to accept. >> what do you think about -- back to the equity market. russell 2,000 was massively outperforming the s&p and nasdaq early this morning, kind of closed near the lows, but it's kind of unchanged on the year. are there any parts of equities that you like more than others? is russell an area you would like if we start getting more aggressive rate cuts early next year? >> i'm going to defer to chris harvey on that one. he's got all kinds of opinions. with respect to broad macro, though, i think you have to be fairly comfortable right now that the fed, at least, is not going to derail the markets, and oh, by the way, we've had rate cuts just in the last ten days from bank of canada, ecb, going back to last month from sweden, switzerland a bit farther back. the rate cuts are happening. the fed is late, perhaps, but others are already doing this, too. >> michael, great to see you. thank you. >> thank you. meantime, apple continuing its postw-wwdc momentum. it ended well off the highs of

the day. shares had been up more than 6% earlier in the session and apple seemed on pace to reclaim the top spot in market cap from micr microsoft. it closed the day about $10 billion off of that market. i'm going to go to dan first on this. >> i'm a little bit dumb founded. this seems like this is based, obviously, on the anticipation that this is going to be a huge earnings revision cycle. this is not a company that has had that in a very long time. so, i don't know if this is, like, investors getting behind this, whether it's the machines playing for a breakout and playing this sort of momentum, but i'm still kind of stuck that i think the launch of ios 18 in the fall, i just don't think we're going to see all of the sorts of stuff they detailed there. and didn't see a big upgrade cycle. again, we didn't see numbers move up. we saw multiple expansion. and it's a beautiful breakout, i get it, but it's hard to move around a $3 trillion market cap company and obviously there's some capital that's very committed to this, but i suspect

you see this thing retrace back to 200 in the not so distant future. >> it's hard to like the multiple. it's hard to like apple expanding their multiple here, and you -- i -- ios 18 -- there's -- oh, ios 18, looks like 2015 all over again. so, there is some sense that apple is not on the leading edge of ennovation. you get back to a company that's throwing software and services anywhere from 8% to 12% at a 75% gross margin. this is not the massive, you know -- it's not the reset moment for the buying of handsets, but it is a case where 250,000 or so handsets, 250 million, excuse me, are going to have to go every year. it's the shelf life of cars. people are going to go out and buy them. i just think when you've seen the capex, that was reinforced by an oracle. everybody around a.i. is talking about capex, and it's proven that people remember that apple is the way to the consumer.

i do look at that chart that did nothing for two years, s&p had one of the great bull markets of all time and apple underperformed the s&p by 3%, going all the way back to jan of 2022. the fact you pe, people are rem they need another place to go, it's big capacity, it doesn't surprise me. >> today, almost 200 million shares. three times normal volume. yesterday, two. i mean, obviously people are now either playing catchup or saying, this is real, this is a breakout. and, again, i think it comes down to percentage. services revenue, percentage of overall revenue. if people think, clearly, that's going to start to tick up north of 27%, 28%, which justifies the multiple, i don't know if it's going to happen in the near future. coming up, we're watching broadcom on the move. the numbers, the 10 for 1 split, and the conference call next. and two stocks hailing some major gains. uber and lyft both jumping in today's session, but can these names stay in the fast lane? we'll debate that when "fast money" returns.

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there's a smarter way to save. comcast business mobile. you could save up to 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities. welcome back to "fast money." earnings alert on broadcom. the chip maker at all-time highs. the company announcing a 10 for

1 stock split. the conference call under way just at the top of the hour here. 23 minutes in. kristina partsinevelos has the latest. >> all the cool kids are doing it, broadcom joining the likes of nvidia with the stock split. a strong q-2 earnings beat for broadcom. revenues, $12.49 billion, versus estimates of $12.03. ceo on the call right now saying the results are driven by a.i. demand for custom chips and its networking business. more than offsetting any type of cyclical weakness. the ceo saying q-2 is going to be a bottom for server storm with a recovery in the second half. they think networking will grow 40% year over year, it's a big portion of their business. up from the previous 35%. all of those gpu clusters that people are spending money on neat ethernet networking.

and these two drivers, enough of a reason for the company to increase its full-year 2024 guidance from $50 billion to $51 billion. and lastly, they just raised their a.i. revenue number from $10 billion to $11 billion. so, all of these boosts, you can see the stock price up almost 12%, and that 10 for 1 stock split, cherry on top. >> kristina, thank you. obviously, that makes a stock go higher, 10 for 1. >> clearly. >>cesasay sarcastically. >> in this day and age. >> this sort of demand should not be surprising. you think about the market's reaction to this, you know -- you know, it's a -- you get to a point, it's really tough to chase some of these things.

there is a thing called gravity and it applies to markets, it applies to single stocks. so, again, we haven't seen this sort of activity in a very long time, but it seems like there's a foregone conclusion that all this stuff is going to go up, that these revisions are going to continue to happen. and we know that's just not the case. >> at some point, there has to be a digestion period. >> or on a relative basis. >> yeah. >> they'll perform better, whether they'll be not up 11% on earnings beat, but just on a relative -- >> for all the things i've gotten wrong, one we have collectively gotten right is broadcom. and we've said, despite the fact that it was at the time maybe $1,200 stock, you you this it's expensive, on price tag, maybe, on price to earnings, absolutely not. if you look at it now, even with this move, i'll sort of take the other side, it's probably got 22% eps growth ish. and even at this current price, trading at maybe 29 times next year's numbers. so, i don't think it's

ridiculous. now, you can say, they're not chasing it based on this move. that's probably true, but again, this is within you don't want to run too far away from. >> how are you feeling broadcom versus nvidia? tim? >> i -- i think, you know, we're in apples and oranges, somewhat, within that space, but if you look at the underperformance, that's part of what the market is doing here. also apples and oranges, but also interesting to hear about networking solutions and cisco's been such a dog, you know, when are they going to talk about the demand for their products and solutions based upon a.i.? i think the investment world are clearly, everyone is looking for something else that is underperforming. almost makes me wonder, and we started to see this the last couple of days, amd, which clearly is the number two, that is the closer apples to apples, though it still may not be, is a place where i think you do have an opportunity, even though i hate that valuation. >> cisco was your final trade yesterday, wasn't it? >> yeah, like, again, you know, these things go straight up. this stock is up 35% since its

lows in april, so, you're talking about, you know, it's up 10% right now, based on this news, but it kind of rub into it. so when you think about a cisco, you know, there's going to be these a.i.-adjacent trades, it will broaden out, and these things slow down, but maybe they come for the other stuff. there's a lot more "fast money" to come, including a live frankfurter faceoff coming to netflix. >> a five-star rating for ride share stocks, as uber and lyft hail some big gains. the driving force behind those moves, and if the wheels can keep spinning on this trade. plus, one big bank sitting out today's rally. a top analyst joins us next to lay out the names worth a deposit, and the ones to avoid. you're watching "fast money," live from the nasdaq market site in times square. we're back right after this.

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[ a.i. copilot ] it's time for an upgrade. awesome. ♪ ♪ [ inner monologue ] i knew what i had to do. because they never stop. no time to waste. this isn't sci-fi. this is precision ai. ♪ ♪ we're on tv now. >> oh. >> and people heard that. >> we're going to show the worst -- okay, just get ready for this. i know some of you may be eating dinner. welcome back to "fast money." 16-time nathan's famous hot dog eating contest winner joey

chestnut might be barred from this year's fourth of july competition, but netflix announcing today that the champ is set to compete against follow hot dog eating legend kobayashi this september. the live sporting event titled -- okay, this is the picture that's very disturbing. >> that's what caused this whole thing. >> don't do that at home. >> titled "unfinished beef" will be live on labor day, marking the first time they have faced off in 15 years. >> definitely labor day is appropriate, isn't it? >> it's a labor to eat that many hot dogs, that's for sure. is this going to be good for netflix? >> i don't know. i mean, i think we've taken this a little too far. i -- i will say, i'm -- my -- i'm pulling for kobayashi, i mean, for what it's worth, but -- i don't blame these guys for getting whatever they can do. i didn't know this was a sport. what is the name of the council that governs these guys? the professional eating league or something. >> have you ever been part of that? >> competitive eating league. >> bringing it back to a theme,

we've been talking about this a lot, they're pushing into live uns unscripted. >> right. >> and this is probably really cheap. >> i like the idea. >> how much is a bag of hot dogs cost? >> you have to pay two guys. >> a bag of dogs. >> i don't know how it works. >> and i think chestnut, he comes cheap, sorry, joey. come on -- >> you never know, i mean -- >> while we -- quickly, can we put that picture of him sweating with the not snot coming out -- >> it's hard work. >> some people are eating dinner right now. >> i gave them a warning. >> blue plate special. if you are eating dinner now, you are living life wrong, number one. no, not that picture. the other cat. but netflix, it has runway. it was right around $700. the last one with the dude, because that is disgusting. >> seven dogs simultaneously. >> this is what we had to do to talk netflix? >> netflix became a reason we could do all this. >> we have actual news to talk

about on openai. steve kovach has the details. steve? >> absolutely nothing to do with hot dogs on this one. this is for openai. last hour, we brought you a record from the information that say annualized revenue has doubled versus last year to $3.6 billion. openai now telling us in a statement that that information is inaccurate, telling us that the information is publishing inaccurate financial information, end quote there. so, we don't know how much they're actually making over there, but whatever the information did publish, openai is out here on the record saying that's inaccurate, mel. >> all right, steve, thank you. coming up, the bank trade, and how financials are faring after the latest fed decision. rbc's gerard cassidy has his top picks. those calls when "fast money" returns. missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this.

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welcome back to "fast money." banks holding object post-fed decision and cpi gahns. the s&p regional bank etf climbing up 2.5%. the big banks up more than 2%.

both groups lower over the last few months, but current fed policy supports upside for the banks, according to gerard cassidy. the cohead of global financials research at rbc capital markets. a multi-year top ranked investor. gerard, great to have you with us. >> thank you, melissa. >> so, in terms of your expectations for the fed, the baseline, in terms of your bullish outlook for regionals, is what, in terms of cuts? or is it sufficient to know that this is probably going to be max rates and we're only going to go lower from here? >> i think it's a combination of both, melissa. because when you go back, the real unbelievable time for regional banks was going back to 1995, when green span orchestrated the soft landing, the goldilocks economy, and as part of that, two fed fund rate cuts in july and december. if we get one, maybe two rate cuts over the next 12 months, that is very positive for banks. the primary reason, that funding

cost now is stabilizing. and in a falling front rate, short-term interest rate environment, the funding costs are going to go down, but the yields on their assets are still going higher, because the cash flows coming off of those portfolios are a much lower coupon. so, in an environment where the rates are elevated, but expected to come down by 100, 125 basis points, that's very positive for managers, income growth for the banks. >> it's karen. thanks for being on, gerard. so, notably, jpmorgan has really underperformed on the downside lower, and then on the rally, you know, not participating. i know you think it's a little bit expensive, but is there something else going on that would make you -- is it the jamie dimon thing? what do you think is happening? >> it's an interesting question, karen, because obviously jpmorgan in 2023 was the home run bank stock. it was the flight to quality stock. you remember just over a year

ago, we had the banking problems, obviously, in the spring of '23, everybody gravitated to jjpmorgan. and now, what investors are seeing, if you look at the gdp number from the atlanta fed, they are calling for a 3.1% real growth in the second quarter, if we are in the soft landing, and we think we are, it'srisk on there's no need to own the safety of a jpmorgan. valuation is on the high side, as you point out. not certain that the retirement of jamie dimon at some point in the future is a factor yet, but certainly, i think, it's because risk-on is playing, should play better over the next 12 months versus risk-off and jpmorgan is clearly risk-off. >> gerard, it's tim. in that vaugein, and we've had s conversation, it's a risk-on environment, or maybe it's not, but that's an interpretation from today, if you go back to pre-svb, banks were starting to rerate again. banks were at a place where

after a multiyear process, and a lot of bulls eyes on them, they were starting to give back more capital, they were starting to show a lot more free cash flow, and they were starting to rerate on multiple, whatever multiple you think is important, it's probably a multiple of assets. give me your thoughts on this, because i think that's the most powerful part of where we are right now. banks could be, you know, back to ascending higher in terms of where investors just want to own them. >> i think you're right, tim, and it's a really good observation. going into 2023, you're right, the improvement was there for the valuations, the outlook was actually quite positive, and then, of course, the spring came and now that we're further away from that situation, which was very idiosyncratic, as we know now, i think people are looking at this. and you bring up another interesting point, though, which is regulation, because we have to get this final basil three end game, which is the name of the last big piece of regulation

from the last 20-plus years, and once that is set in stone, which possibly it could be later this year, or early next year, the banks and investors will know that the regulations are not likely to change much going forward. so, once the landscape for regulations is set, no more future changes over the near term, and you don't have ne debacles like you had last spring, and i yothink you're on something about the rerating. >> gerard, thank you. >> thank you very much. >> gerard cassidy. tim really gets a gold star today. >> i don't have -- >> big day. >> i wasn't saying -- >> oh, from before? you meant somebody else? >> cnbc's very own brian schwartz is reporting right now that the ceos, moynihan, phraser, and jamie dimon, are going to do a private meeting with donald trump, so, it seems to what you're just talking about, as it relates to regulation. and these guys really trying to cover all their bases.

>> he's in the parthenon, gerard cassidy. >> of? >> of bank analysts. i'll say this, i recall this, i do have a good memory, in the fall of last year -- >> all bank analysts, regional -- >> all. all. he thought citi was cheap, and look -- pull up a citi bank chart -- >> karen's city. and tim. >> i think there's room to the upside. good for gerard. >> all right. coming up, energy on a rebound this week, with crude nearing $80 a barrel. will the summer travel season keep this commodity climbing? that is next. "fast money" is back in two.

welcome back to "fast money." the energy trade making a comeback. crude heading back towards $80 a barrel, up nearly 4% this week, but the broader energy sector isn't catching a bid on this move. the xle down more than a percent today and down for the week. the worst performing s&p sector so far in q-2. >> rotation. >> oh, really? >> that's what i make. i'm not saying i'm right. it's not based on anything fundamental, i don't think. now at least you have the headwind of lower crude has been ab abated, at least in the

short-term. it would somewhat supportive of equity prices. however, with everybody flooding into apple and semiconductors, i think energy is taking it on the chin. if there's ever a rotation, i think it will find its way into energy. energy, to me, the stocks are still too cheap. >> c in clam is konno coe or chevron? >> i don't remember. i think it was -- whatever tim's wasn't. >> don't covet for your clam what actually is in my bicep, okay? i'm chevron. and i -- i think this environment is perfect for energy prices. by the way, in a rising dollar environment, which is terrible for oil, this is great for energy. i think guy's nailing it on the rotation, because that's what this is. it's not sexy growth, and if you look at energy, it's flat year to date. that doesn't bother me as an energy investor. so, i think these are an opportunity -- this is an opportunity to add to positions, but it's not like any of thee companies told you anything coming out of earning season that had you alarmed.

there's m&a, they want to buy each other up. i think assets are cheap. i'd stay there. >> i've sort of been perplexed why it's doing so poorly. i'm just wondering, as trump regains momentum, the idea of, all right, free for all in the energy space, which has led to not discipline, you know -- >> it's interesting, last year, i think, we drilled more oil than we ever have in the history of america, so, when you think about who would be better for the oil industry, i mean, from a regulatory standpoint, some of these deals have gotten done. we're drilling, you know what i mean? and you know, you can say that the biden administration, they sold a lot of crude from the spr at much higher leveller here, so, you know, as far as the energy, you know, complex should be, you know, they should be okay here. coming up, is the kitty making some moves? some interesting activity in gamestop options that could be a trade from roaring kitty himself. we'll dig into that one when "fast money" returns.

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gill, aka roaring kitty. the options trading more than 40% lower than where they started. as of monday night, gill owned 120,000 june 21 expiration 20-strike calls. baycrest managing director david bulls here to help us make sense of this. david, what did you make of this heavy volume in this strike? >> no dull moments in gamestop. so, again today, right near the end of the day, 75,000 of the calls that you just referenced traded in the last 45 minutes. 90,000 traded roughly on the day. and that represents what could be up to 20% of roaring kitty's position. looking at the tape, it did appear these were sells, looking at where they traded relative to the bid and the ask and the way the stock obviously moved. it sold off, i think, 16% in the last hour or so, so, that created -- if the 75,000 contracts were selling,

potentially to close, that created roughly 6.5 million shares to sell from market makers on the other side. typically gamestop trades 20 million shares in the last hour of the day, so, 6.5 million would impact the stock. now, in terms of how this may leave roaring kitty, if the 75,000 were him, that could have generated $52.5 million in cash, and judging from the last screenshot, where he showed, i believed, $29 million in cash, that puts him about $81 million in cash. now, he -- this would leave about 45,000, roughly, of the june 20 calls, if he were to exercise those, he would need about $90 million. so, we're getting pretty close to the math, to the money needed to exercise those calls, if this was roaring kitty. >> dan, what did you make of this? >> well, it had to be him. there was 170,000 of open interest. he owned 120,000 of them as of monday night, right? if you think about these calls, they ended with an 83 delta.

so, to david's point, if you are a dealer and you are buying these from him, you are going to be hedging them by selling stock at an 83 delta. if you just look at, david just said, you know, this -- a lot of volume traded at the end of the day, and i'm looking at the stock, it was 29 1/2 at 3:15 and closed at 25.46, there's no real buyer of this stock other than shorts, right? if you think about it. so, to me, it had to be him, and there was a lot of looking into this his activity and the like here. this would be the sort of thing. he said he's not selling. it is not illegal -- >> do you know if the open interest went down by -- >> you'll know tomorrow, but it must have, right? >> i saw it close. >> you can see where things are trading. >> david, thank you. david bull of baycrest. up next, final trades. who. with every swing and block,

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welcome back to "fast money." ride share stocks topping the tape today with lyft leading the gains, popping 6% for its best day in over a month. uber gaining 5% in the session, with shares pacing for their third straight week in the green. so, for the second time this hour, we'll talk about tim's blicep. >> thank goodness, i mean. >> you can never talk about it too much. >> i'll tell you what. >> you can. >> he's tapping his rock hard bicep. what do you think of the lyft move? >> i think it's the function of an investor day that's had a week to digest. the analyst community kind of believe some of the guidance. the guidance was aggressive. this is a different management team that probably was appearing mostly at the last investor day, so, there's a sense that it is a prove me story.

the secular trends overall for ride share are fantastic. there is a growth story that's just inherent in their core business, the question is, how are they executing? i think there's a lot to be said about that, but it's an environment where i think there's a lot of improvement, and, again, the delta opportunity in a name like this versus an uber is very high. >> quickly, this goes to the iyt. uber is a big part of it. that has not traded well. this should help. however, i think the transports, you have to watch for downside pressure, melms. >> all right, it is time for the final trade. arn around the horn we go. tim? >> risk-on, lower rates, this is a great environment for emerging markets. the trend is better. and i think you stay with the eem. >> karen? >> yeah, so, i think interestingly, i saw some comments about how good the m&a environment and capital markets. that would actually be good for goldman sachs. >> dan? >> yeah, n.e.t. cloudflare. starting to kick the tires on this one. has not participated.

down a lot from its recent highs, but mid-20s, earnings growth, mid to high 20s, sales growth, 78% gross margins, looks interesting. >> tim will be one of 3,000 people at shay tea tonight. letter c, melms. >> thanks for my mission is simple, to make you money. i am here to level the playing field for all investors. i promise to help you find it. mad money starts now. >> hey, i am cramer, welcome to mad money. friends, i'm trying to make a little money. i want to educate and teach you. call me or tweet me.