let's get the trade with the "trading nation" craig johnson, technical analyst with piper jaffray. stacey gilbert, head of derivatives strategy with susquehanna. welcome to you both. craig, is this year's worse performing sector so far about to stage or in the middle of a turnaround? >> i don't think so tyler. i think what we're seeing here with the xlu is simply this -- it peaked back in january. as we continue to hear about more confirmation that the fed is going to be raising rates, we have been seeing a pretty steady sell-off in the utility sector and frankly all of the interest sensitive areas of the marketplace. what i think happened this week is nothing more than another relief rally. if you look at your 50 and 200-day moving arch averageverages, you're still in a very much descending situation between the 50 and

you heard josh sourcing gene munster of piper jaffray. gene joins us now he's got an overweight rating on the stock a $162 price target on apple gene, great to have you with us. it sounds like you think that this music could be one more reason for people to be in this ecosystem. but as an analyst how do you determine whether or not it's worth it? they're going to be spending royalty payments for plays. they're going to be spending on promotion and marketing. and we don't really know if this is going to be an actual reason why people are buying more iphon iphones, which is the company's bread and butter. >> you've got to do it. the total costs are going to be pretty small. think of this as a few hundred million dollars a year. we obviously know how much money apple has. as you think about the broader phone experience, something that's fundamental to the phone is the music experience. and apple's been about three years behind in that. so think of this as a catch-up. ultimately it's going to be difficult to really pinpoint the exact economic

piper jaffray's managing director gene munster. what is it we should be looking at sneer what's the metric? >> the resale value. so to get a read on iphone demand we look at the resale value of old phones and compared to the retail value today. what we found is that the phones today are getting higher prices in the after-market, which is a sign that demand is higher. so the quick numbers are this. is it a typical iphone 6 sells for 72% of its retail value he, 285 days after the launch? that compares to an iphone 5s that sold for 60% of its value 285 days after its launch. credit my crack team here with travis for putting all this data together and tracking this on a daily basis. but that's what we're looking at. we also look at it in china. and the comparisons are similar. the good news is this, is that these higher resale values are a strong indication for future iphone demand. >> hey, gene, we often here, you know, one of the main justifications for owning apple is valuation. and here it trades below market multiple, x cash it tr

piper jaffray said a buyout could he transformative. roughly double annual revenue and that jails with most of the m&a and by our taxes we have seen. every company appears to be looking at scale. it is about trimming down a big business, trying to get skinnier and focus on core consumers, sort of what we saw with target selling its -- selling to cbs. joe: things are getting interesting with the rhetoric we are seeing out of grace. the head of finland said they will need them you are cold to get a deal. and tsipras gave a speech today where he talked about imf criminality. you do not typically associate try to get a deal with calling your creditors or no. he said they were in succeeding the greek economy. really rough stuff and there is are gettinghings bad. i have a slightly contrary in view. i think that maybe this serves a useful purpose. it reminds me of the debt ceiling fight from 2011. one at the end it seems like he got ramadi but the acrimony serves a purpose because then when they have to make their final concession, tsipras sai

piper jaffray initiated. we talked specifically about pru. look at the move that had today. if you think rates are going to ratchet higher as b.k. is saying now those stocks should continue to outperform. >> the kbw insurers record high. >> so they have been suffering with these low rates. so now higher rates. they can start to match their longer liabilities with longer-term treasury bonds. what's interesting about this, maybe this is the fed's plan all along because what they're essentially doing is replace their buy orders, the fed's buy orders with insurance company buy orders. it allows the fed to get out of this balance sheet trade that they have on by bringing in another buyer. maybe that's pure genius. i'll throw it out there. i don't know. but if it is it's pure genius. >> going back to utilities for a moment because i think you're the only person on this detection that actually owns a utility. >> i owned. i sold it. i'm out of the name because when you say that it's still strong, it's not so strong. it's down 13%. so i sold it when i started to really worry about th

the highest in the past two months after piper jaffray raised to their price target.hat is currently the highest price target on the street. towards expect a shift virtual reality in the next 10 years, which facebook is well covered because it owns the oculus rift. netflix is touching above its acord closing high after monster adjustment to its price target, from $600 to $950. well above the current share price. the reason is netflix can go far beyond the 50 million domestic subscriptions it has. timing into my bloomberg terminal, we can see the rise in those subscriptions over four years, since the fourth quarter of 2011. subscriptions have risen 93% through the end of last year. a mastic.st netflix plans to expand around the world, including japan, italy, portugal, even cuba this year. netflix could hit about 240 million people by 2020. all of this up and up, one loser, semantic. ubs about 1.5% after downgraded the stock to a cell and cut his price target down to $22 a share. the easy money has been made in cyber security stocks. shares are suffering the worst two-d

one analyst at piper jaffray is making this call on the value of the oculus virtual-reality platform.peaking of optimism, look at netflix. it looks like we have a street high price target on this. i had to make sure i was looking at this right. it up about 2.4%. rich greenfield making this call , talking about the strength in domestic subscribers, saying it could rise to about 50 million. i have a chart of the domestic international subscribers. domestic is much higher than international, though that has been picking up steam. we see the mastec at about 41 million, so he's looking at a rise to 50 million. there was a call on the strength of international survivors, so that is being worked out. we are looking at a chart here of analyst calls on the company. pay attention to the white line. 623.verage price target is we will see if he ends up being right on that call. i want to look at the big laggards -- tesla, there's a publication that the model three is being delayed. periodically, we get these reports about the vehicles tesla is working on. the shares have declined, down about .6%.

guest: starting with facebook. 2.9%, its highest level in three months because piper jaffray raised theirrice target to $120. that's currently the highest price target on the street. based it on the ownership of the oculus rift. he says he expects a shift toward virtual reality in the next 10 years. -- ifn the move, netflix we can bring that up, up 2.9%, above its record closing after a massive adjustment to its price target, raising it from $600 to $950. the firm's analysts believe they can go beyond 50 million domestic subscriptions. and it is monday and that means some m&a action. today is no exception. sequential brands says it will buy martha stewart living. not much movement today, but the stock is at highs not seen since 2006. it looks like investors are locking in gains from last week. the stock popped 38% after the merger news hit. m&a, a home properties deal worth $7.6 billion -- lone for the deal, giving it an equity value of point -- of $4.36 billion. scarlet: thank you so much. june 30 isn't just an important deadline for greece. it's also the deadline for iran and world powe

piper jaffray reiterating this is a top pick for her.ble today is starbucks is trading at a record at a moment when the rest of the market is falling. she sees a nerd doubling of starbucks earnings over the next five years. she says her recent meeting with management only reinforces her bullish view. alix: that is able to call. julie: starbucks is a little like nike in that it is a stock that has done very well and the sentiment around it is still bullish. alix: thank you so much. not to a look at some of the top stories. travelns are expected to in big numbers is independence day thanks to a stronger economy and cheap gasoline. aaa says an estimated 41.9 million people plan to travel 50 miles or more from home during the holiday weekend yet my husband still wants to travel. that is the most since 2007 before the recession. the british open starts july 16. if he wins again, there is bigger paycheck waiting for him. the winner at saint andrews will when $1.8 billion. overall prize money as a sword soared to almost 10 million. the british-

the stock ending higher by more than 3% after piper jaffray analyst gene munster increased his target to $120 from 92. the firm making some interesting comments as well about the value of virtual reality on "closing bell" just moments ago. let's listen. >> we believe that oculus gives facebook a foothold and a seat at the table, an insurance policy for this next computing paradigm. >> do you agree with that pete? an insurance policy? >> i certainly don't think it hurts at all to have oculus along for the ride. he think there's virtual reality, there is something to it. whether it's creepy or not is for everyone to decide. you've got instagram, the buy button and you've got this competition online with youtube. they've done such a great job with video. i think there's a lot of different reasons and technically stayed it feels like facebook finally started to break out to the up side. in the weekly options three times what was the open interest on the 84 strike calls were purchased today. that tells me a lot about people right now think that even in the short term oculus -- gene was tal

. >> joining us to discuss, gene munster at piper jaffray and mark stevens.rst, tell us anecdotally why you would put certain clients of yours on facebook ads in terms of video versus youtubes? >> quite simple. they work. we find that one of the main reasons they work is because it's -- two things. they are incorporated into the feed. you this you don't have the gate keeper of the ad stopping you from seeing the content you see. we have people who wait to click it and those who hate the ad because they won't buy anything because it's stopping me from viewing the content i want to see. secondly facebook's tremendous ability to identify the demographic information we want for our clients. it proves itself meteorologistrically it works very well. >> facebook have done a better job as they kept changing format they kept integrating ads into the in us feed. >> our comments today were about oculus. this is a perfect example of facebook understanding how year behavior is changing. they do a good job making those ads effective and relevant. in terms of user behavior

. >> starbucks target increase to $63 from $55 at piper jaffray following a meeting with management. 2015 top pick. increased confidence in the pipeline of global initiatives and its track record of consistent operational execution. rating remains overweight on starbucks. >> third stock is l brands. bbent t starting coverage with a buy and $100 target. research notice titled, "boos "boosting the entire earth by two cup sizes." it owns victoria's secret bath and body works. they like the recent work toward international expansion. that 100 target applies 15% up side. >> fourth stock burlington stores. stockaded to the u.s. one list at bank of america/merg lynch. retailer up 66%. shares remain buy rated. target is $70. that would be another $17 to go from here. >> go new jersey. >> today's under the radar name new park resources. nr. it's an oil and gas related company. they make equipment. raymond james upgrading to strong buy from outperform. they did cut the target from $13 to $11. 40% up side. newpark resources. with that we say adios. >> sports betting and investing are about to co

piper jaffray's jean munster notes that even if apple matches spotify whether it comes to paying subscribersll add less than 1% to revenue in 2016. mandy, back to you. >> makes them look good at least. the stock is at $127.43. >>> you no longer need acres of farmland to grow vegetables. you just need a factory in the middle of the city. it is called vertical farming. we'll head to new jersey to show you how it is done. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. >>> here are this hour's power points. number one, the nasdaq and russell 2000 small cap indexes, mid caps too, have all jumped to all-time intraday highs. >>> may

when you talk to one of the best restaurant analysts on the street at piper jaffray, nicole she'll pointwe're down 32% in restaurants. you look at some ipos that you have seen this year. you've got shake shack up 200%-some since its offering. it looks like to me right now the way you want to trade these names, because there is such a fundamental shortage of restaurant stocks out there, is to continue to stay long the ones that are coming out from an ipo situation and from a trading perspective, i'm going to put simple ten-day moving averages and 50-day moving averages underneath these names and i'll continue to play these things to the long side until i see some sort of trend break. until that i'm going to let it ride to the long side. >> quickly, zach before i let you go we're talking about valuation. craig mentioned shake shack. 475 forward pe. is that alone a reason to be concerned? chipotle used to have a sky-high pe. now it is about 30 on a forward basis because they grew into it. is high valuation necessarily a warning sign? >> you put your finger on it. . unless you believe and un

>> bullish note pout by piper jaffray and we're going to be talking about apple.rly significant volume. we'll talk about that. also talk about the yahoo! shareholder meeting and also dm's launch of the new cruze for the car lovers over there. >> straight over to you guys. >> "fast money" starts right now. we're live at the nasdaq marketsite. hello, everybody. i'm mandy drury sitting in for melissa lee and our traders on the decemberric dan nathan david seaburg, brian kelly, beaks, and guy adami. good to see you all. and tonight on "fast" follow the smart money? well carl icahn kark out of netflix. why the billionaire investor got out and the comments he made that could signal the top might be in for the stocks. plus stocks may have ended lower today but we have uncovered a secret indicator that says now could be a good time

>> standing outside the piper jaffray conference and had the opportunity to sit down with marvin ellisons the incoming jc penney ceo effective august 1st. he said first of all, they're working on setting aggressive using the word aggressive financial targets. he's doing it on an annual basis. he also says that when he takes over officially for mike he doesn't believe in change for the sake of change but we might see some strategic differences and changes that will happen in the year 2016. he also acknowledges that jc penney is behind on its omni channel strategy. it's probably the biggest challenge but also the biggest opportunity. and believes strongly in what it could do as a second mover with the second mover advantage leveraging what he has done at the home depot with its supply chain initiatives. and i asked him if he had ever considered taking jc penney private of making a change would be easier to be done without being public. and he said it's not something that we have actually asked and talked about ourselves, but perhaps something a board would have to consider at a later time.

look at this amazon another winner, piper jaffray says it's going to $520 a share. up five bucks.inton foundation set for fund raising arm in sweden that brought in 26 million dollars just from sweden. here is the author of clinton cash. peter welcome to the program. >> thanks stuart. >> it's my understanding, peter okay they brought in 26 million to the swedish foundation, at precisely the same time as hillary was secretary of state and not black listing swedish companies for breaking sanctions against iran. does that add up to a quid pro quo? >> well i think it does especially in light of the other evidence. i mean one of the things i point out in the book directly related to this at the same time that the swedish government is sending $26 million to the clinton foundation, bill clinton is given his single biggest speech pay day ever $750,000 for a single speech. who pays him, ericsson at ground zero over this debate of economic ties with iran. before and after, he's never paid bill clinton for a speech before. so this fits the pattern of behavior and you know it's just another

joining us now off the flight from san francisco is apple's analyst gene munster from piper jaffray.e. >> thanks for having me. >> what excited you the most? what do you think is the biggest deal in terms of changing the game for the company. >> this is all refinement. this is taking little things and making it better. siri and the digital assistant which is going to make our lives better. they played up the music service a lot, but few people are actually going to use that. apple pay was one of the big takeaways too. they're starting to make progress. i think this is negative for paypal. this is the start of something that's going to be big for apple. >> because they're signing up more retailers now? >> they're signing up more retailers, but also the progression. they're laying the ground work of a more progressive product. also doing other payments online. so i think those are some of the obvious ones. and there's some subtle analysis to point out. for example, there's been speculation that google is going to be replaced as the default search within safari. we don't think that will