Transcripts For CNBC Fast Money 20240712

Business and you are looking at the incredible scene at the d casino in las vegas shortly after it reopened at midnight. The casino is absolutely packed and very few people are Wearing Masks and no social distancing lets bring in the journalist who shot this video. Mick akers was it as crowded as it looks in the video yeah, it was. That was taken nine minutes after they opened the doors an let people in so people were ready to fill in pretty quickly there. I wasnt expecting it to be that packed and that video is true to form what struck me when i saw this on twitter, i thought maybe this video got mixed up with prepandemic video of the d casino, but in fact, this is a scene that you have been witnessing all over the place. Youve been going up and down the strip all day long and to the airport, as well yeah. I was at mccaron airport and ive been going there every so often since the shutdown and its weird seeing that back and some other reporters are all around the city, and the bellagio reopened today and it had a pretty good crowd, the flamingo, caesars and some great crowds there, so people are obviously ready to get back to the gambling action in las vegas. Yeah. I want to show some of the video we have of the bellagio. Obviously, in some areas of the hotel there is social distancing taking place versus when they first opened the doors in the lobby, but later on you see video of lines, people waiting in lines and theyre on top of each other and theyre not not everybody is wearing a mask. Mick, are you surprised at the reopening that people arent necessarily following the rules to a tee on the very first day whats it going to be like in two weeks . Yeah, im surprised last night 15 to 20 of people had masks on all of the employees had masks on and customers, and i was surprised on thatend and socia distancing wasnt even a thing and they had dots on the ground and people werent adhering to that slot machines are supposed to be cut off every other one, and there was some locations where all of the seats were in there and there were ten people filling the whole entire station so i was surprised that it wasnt being followed to a tee, but youll see how it plays out over the weekend and see if there are complaints and adjustments being made. The d casino is not on the trip and have you seen the protocols being followed off the strip versus on strip . It seems a little more to the book on the strip. They took more precautions there, and their temperature scanners are a little bit more accurate and the one at the d were doing it on the wrist and people werent testing above 98 degrees. It looks like theyre advanced on those and they have plexiglas on the gaming tables and the slot machine wears and keeping space between people and sanitizing stations throughout, disinfecting and hightouch areas, and some of the Mgm Properties have hand washing stations on the floor so you dont have to go to the restroom to wash your hands and you can do it on the game floor. Mick, thanks for giving us a glimpse of vegas you might be wondering why we started with the video of las vegas because it encapsulate it is the hope and the fear surrounding the economy. The hope that the consumer will come back strong as we saw with the crowds at those casinos on opening day, but the fear, of course, is that the reopening could seed another wave of Coronavirus Infections and a second wave, if you will how do you trade this and are we sort of at a wait and see moment in this rally, guy, as we reopen we await the impact on the infection rate, et cetera . I believe its a wait and see, and tims about to kill me for saying this. The mets every year will opening day and there are more people in concessions and in the stands i told you you would kill me and just give me a second and then you can go from there my point is it makes sense if you saw the crowds on reopening. My sense is that it will somewhat wane. Ill tell you this, i know i dont have much of a memory, but march 20th happens to be a friday and as you know we do a truncated show, and i remember tim and i had the performance of wynn, and it was 35 low and closed higher on the day and we mentioned it was a good sign and since then weve been relatively positive on these casino stocks, but i think now it the time you pull the rip cord and take process. Credit suisse initiated the price target and that makes sense. I do think if youve enjoyed this run over the last couple of times, tim seymour, ill let you go ahead, you mets fan you it could be a sign. The casinos are like throwing big money at the dice at the craps table. You have this data, these videos and this assessment of las vegas coming back or not and it reminds me of what we talked about yesterday as it related to the poll of who was going to take the vaccine if given and who was just going go for it, and i think theres a sense of an inevitability of this virus until theres actually a vaccine and some sense by a lot of folks that we have to get on with it if you look at the economy and look at the data points weve had, theyre not green chutes. They are less bad. Its essentially the delta on where we are coming from is whats been getting people to feel better. If you look at the bond market and the treasury market and the move in the last three days. Weve had a 20 basis point move in the tenyear and we closed at 82, 83 basis points and nothing to get excited about, per se and these are tenweek highs and the bond market, more than the equity market has certainly traded in a very tight range and has been on some level really what people were waiting for im not telling you that we should be seeing yields move quickly higher, but when you look at the weaker dollar, the yields break out, the inflationary stuff that continues to trade and be the best part of the market whether youre investing in resources or shippers and rail, thats the part that i think is reflective of what this las vegas scene is telling you about the appetite for health risk in this country. In terms of confirming this move, and dan, im going to go to you because you have highlighted financials as being the worst chart in the markets and it signals all sorts of bad things weve had financials trade very well and can you say maybe theres something to this rally . Yeah, there is. Weve been talking about this rotation and look at what underperformed with megacap tech and it outperformed with banks and they liked that steepening yield curve im not convinced right now. I know theyre still down meaningfully from their january highs and the name like j. P. Morgan is an alltime high and q2, tim said this the data will be less bad. The data is historically horrible gdp now has q2, gdp down 54 or so you have 43 million americans that have filed for unemployment over the last three months or so those numbers will get better period over period and they will stay bad and depressed for a long time, so when i see videos like that from las vegas last night, they might have the same opposite effect, and you guys will talk about the woefull mets in week two, thats what they look like. All of the sports may come back and there are no people in the stands and there are the concession workers and i think when were thinking about the economy in the success half of 2020 and probably for the better part of 2021, we better start modeling what 10 unemployment looks like for a sustained period of time and just to refresh your memory, thats nearly three times what that 60year low print in unemployment was at 3. 5 in february, and i just think that the market right now is discounting a lot of good news on the reopening and a lot of good news about the vaccine and the speed of recovery. I dont buy it and listen, have at it the stock market is up 42 from those lows and youre telling me down 3 in the s p 500 year to date that that makes any sense given what we know about the road back . I dont buy it nine and a half minutes is the show and we have our first danism have at it i agree with you and take your point in terms of the chronically high unemployment that we are likely to see persist. We see this betting against the consumer and we saw the video and the tanker saying in South Carolina where things have reopened 80 , if the retail traffic was 80 of what it was precovid in the early days things like that make you think never bet against the consumer right i dont like to bet against the u. S. Consumer, specially when the fed is also there in the biggest way that weve ever seen in the history of the fed. So i agree that it seems incredibly odd that we are down 3 , 4 and were in the middle of a pandemic and depressionera unemployment, and i think the market is looking at the trajectory of earnings and not the absolute level of earnings and so im not looking to put new money to work here because i think so many things have moved so far, but i think that the bond move is important for banks, particularly and not just necessarily for their Net Interest Margin which will have a minimal effect in the short term, but i think for the sentiment about banks. Look at how poorly they were trading zero intrait Interest Rates or potentially negative Interest Rates and that was only two or three weeks ago, i think. And i think that for the moment is off the table i think well also see some more stimulus from the government so that can keep the fire going. I think theres also a little bit of adverse selection when you see videos like that one that the people who are the least afraid and the ones who wouldnt be looking to get the vaccine, theyre all in and ready to go. Im not. What would you rather do, melissa . What would you rather . Fly or go to that casino id rather fly than go to the casino i mean, yeah would you agree, guys . Yes, i would agree. I dont know. Why not my view well, first of all, going to the casino, you are in control of your social distancing, on a plane it seems that youre not, and anyway, i think flying, were going to talk about airlines later, and i think airlines are putting certain precautions in place that probably cant be violated as easily as the casinos, but look, i get that in the first nine minutes people are rushing into those casinos think, they were theres plenty of people that think they are immune and think theyll be impervious from the virus or maybe, in fact, they are. Im not surprised that there are not that there are animal spirits for people that want to go out, spend some money and people are not in a good way emotionally right now and people are willing to throw caution to the wind lori, great to see you hi. Great to be here youre calling for 2750 and whats the number one them are thing that you see with its very textbook and the kinds of things that you work on a recession low has been working, and it is pretty rich right now. We are trading 21 times next years earnings and you had a valuation opportunity and its dissipated and now we have to confront the reality and well be in this hole in the market for a while and theyre ignoring the lousy levels i think there are a number of hurdles that are coming up in particular the 2020 election is a big risk looming over the markets this summer that investors are starting to Pay Attention to i think also just the idea that weve seen the sequential progress is just pent up animal spirits as tim said earlier or is that going to be a sustained move if we just if this is just a big sigh of relief thats going on right now and we dont see that continued improvement on all fronts. I think markets will have a tough time frankly, i worry when were talking about the consumer, we never saw Consumer Sentiment fall to financial crisis lows the way we did to Economic Indicators so if we do get a second wave of the virus and if we do have a changing of the guard in washington, these are all things that can potentially weigh on consumers. If those jobs that were lost dont come back, i dont think thats factored into the consumer psyche and its not factored into the markets right now. Its funny because the 2020 election seems so far away because of whats going on right now and it is around the corner, lori and you do address a changing of the guard. I want to be clear to the audience, were not a political show, and were not endorsing democrats or republicans or anything like that, but how do the markets perceive donald trump staying in office, is that the preferred scenario still we try to stay out of the politics, as well and one of the ways we do that is we ask Equity Investors how do you think markets will react in different scenarios and what weve seen consistently over the last year, year and a half, they think a trump reelection is a positive outcome for markets and weve also seen that Equity Investors have generally expected the senate to stay in republican hands, and thought that there was no chance that the democrats would be able to come back in and it was sort of a hedge even if trump lost the senate wouldnt flip and so there wouldnt be any massive policy change what we know is that if you look at the betting markets and the predicted data, trumps expectations and his chances for reelection according to the betting markets have fallen and some of those data points that are tracked there and biden has it by a nose, and the senate is basically a tossup. So the expectations on the political front thats the marketfriendly scenario would stay in place, thats started to fade in the betting markets and i talked to investors who started to bet and theyre starting to get very worried. Hey, lori, its dan assuming that we dont see a massive second wave in the virus that we continue to have the stimulus and things have generally calmed down as far as the streets in america, what do you think the biggest risk right now to just things continuing to kind of move forward is it high unemployment in the back half of this year, in the next year and what sort of Unemployment Rate should investors get comfortable with as we go into 2021 thats a good question on the its probably higher than what investors are anticipating i think frankly, the biggest risk will be the consumer themselves and what we heard, is are we going to see a second week of layoffs and we see companies have focused on costcutting and theyre standing by employees trying to keep people employed and its not clear that thats going to last just the emphasis on costcutting is going to be there and also companies have higher costs that theyve got to manage against they have to balance against because all these things that you have to do to keep your employers safe and your workers safe thats going to create incremental pressures. So we think markets are basically anticipating the perfect vshaped recovery and everyone gets back to normal in the third quarter, and the jobs mostly come back and even if it happens its in the stocks now so weve seen markets arent reacting and they came in worse than expected and the data was better than expected i dont think the setup here is necessarily for the data to come in better than expected anymore. Lori, thank you great to see you lori, rbc guy adamy and of course, tomorrow is the big jobs report. Sure it is. All over the map and quite frankly, if you told me what the numbers would be right now i think i have a 50 50 shot in understanding where the marks are and i dont think we have any edge whatsoever because quite frankly, i dont know whats a good number and whats a bad number what i will say is this, 2750 is where i thought the s p would stop on the upside on the 2800 level so i understand where shes getting that, number one, number two, she brings up valuations and i do think valuations matter and right now even if i assume it, its 24 times and who knows what it will look like next year and to your point that youve made about pay cuts and layoffs nobody wants to say it and im not sure any ceos want to say it right now in this environment, but behind closed doors you can rest assured that theyre talking about how do we reduce head count and how do we reduce compensation thats absolutely going on and nobody can tell me otherwise none of that, by the way is particularly bullish. Coming up, a billionaire brawl. Elon musk taking on jeff bezos and why musk is saying it is prime time for an amazon breakup and an alltime high and wlle tell you what it is and whats behind this move fast money is back in two. For. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Welcome back to fast money. Musk targeting jeff bezos. Time to break up amazon. Monopolies are wrong this after a noted skeptic who said Amazon Kindle didnt publish his unreported truths of covid and lockdowns because it did not comply with guidelines and there are a lot of layers to the story and the war of words it brings amazon squarely into the debate over whether platform had a role in filtering content and it highlights a rivalry on musk and bezos on space and amazons investment, and dan, i know you flagged this to me as soon as it hit what was your first reaction here well, pretty interesting. Musk has had a lot to say about covid and hes had a lot to say about the lockdowns and hes had a lot to say about space, and so you know, at the end of the day i just kind of find it funny that hes pointing fingers here. I think jeff bezos is widely viewed as one of the most innovative ceos the worlds ever seen i think musk would be very happy with that title some day in the future i guess the issue i would say for amazon is not as much about a breakup. Its really what Vice President biden said to Andrew Ross Sorkin a few weeks ago on cnbc about taxes and this is a company that in q1 had 75 billion in sales and had 2. 5 billion in net income and they talked about having increased costs i think were having problems with dans feed here well go over to careen and get your thoughts. The other interesting dichotomy between these two billionaires is that elon musk is viewed very favorably by the president he is called the Thomas Edison of our times and spacex has a contract with nasa and on the flip side, jeff bezos is target left and right for president trump. Yeah. Thats exactly what i was thinking its sort of fun they elon musk is able to walk the line of being in the president s good graces and yet having probably a workforce that isnt so protrump. That would be my guess i dont know as you said, jeff bezos and the washington post, clearly the president doesnt like him so i wonder does a tweet from elon musk to not directly, but to the, you know, the tweeter in chief, does that have any does that have any pull, can he get something done i dont know if you like amazon i wouldnt sell it over this. Tim interesting he wasnt tweeting about his own company i do think you have a case when we saw this when tesla was basically fighting the system to get open in california or move out. It did seem like there was an implicit endorsement from washington and there was cover weve seen this over and over. Remember the president s interview with joe kernen at davos. So there is some sense that there are factions that are being put to work here amazon being split up is not a new concept. To the extent that there are anticompetitive pressure out there and has been for a long time and amazon has run for a long time not for profit lets be clear they were running for scale and fulfillment and logistics and erp and pushing people out of business so i can see both sides i love it as a consumer and i think theres a lot of reason to be frustrated by amazon and feels like there needs to be a little bit of a push out there guy its very interesting im glad tim brought up that davos interview. I encourage people to go back and listen specifically to what the president said about elon musk and tesla because you can draw your own conclusions, but factually, the stock has done nothing, but gone up since and elon musk is talking and tweeting right now like he has air cover. Maybe he does. Hes doing things now that lead me to believe he feels hes impervious. Uhoh and that obviously all goes well for tesla, but i think amazon is the place to be. Wait, are you saying that with sarcasm no. No, im not. He feels that theres cover and that gives him a longer leash to tweet something stupid that gets him in trouble which he has done and it doesnt seem to matter for the stock. Didnt he say the stock was too expensive . That lasted about two and a half days and its right back so, look, its interesting to watch this all play out and again, i encourage people to go back and listen to that interview. Its fascinating some of the things that were said in retrospect all right coming up, Airline Stocks soaring for a second straight day, but when will travelers truly feel comfortable getting back on a plane . The Surprising New numbers youve got to hear later, whats in a name . Why the zoom boom is leaving investors scratching their heads. Fast money is back in two. Iy on a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Some Companies Still ahave hr stuck betweenty employeesentering data. A. Changing data. More and more sensitive, personal data. And it doesnt just drag hr down. It drags the entire business down with inefficiency, errors and waste. Its ridiculous. So ridiculous. With paycom, employees enter and manage their own data in a single, easy to use software. Visit paycom. Com, and schedule your demo today. Our revenues now are running they were down over 90 and now theyre down over 80 so anyway, gradual improvement. We have a long road ahead, but its coming back we, therefore, have begun to add more flights that was American Airlines Ceo Doug Parker hinting at a comeback ahead and the group flying high today on a positive outlook and our next guest is where the passengers are on the friendly skies sheila kayalu. Thank you, melissa, for having me. This was a survey of 1500 consumers as well as china and what did you find . Im curious about their appetite for flying and given the airlines seem to be adding capacity so quickly . We found that 55 of consumers dont want to fly for the next six months. 21 dont see themselves flying for the next 12 months what is more interesting is Chinese Consumers are ready to fly. Over 60 said they want to fly in the next three months and that makes sense because chinese traffic has reopened and their way out of this versus us. Weve conducted another survey where we are tracking real time air traffic and scheduled flights and what were seeing in china right now is chinese domestic traffic is down 1 year over year. Very close to normal whereas International Traffic in china is down 94 still. So youre seeing that recovery and what else . Another thing our survey found is that folks want to travel domestic and wa domestic and not international any time soon. Thats great for china and the Chinese Consumer are you raising this for the blueprint that we will have in the economy of the united states. It is a blueprint for what we will see in the u. S. People feel more comfortable going to a restaurant. They feel more comfortable seeing friends and theyll get back in the air. I think domestic will come back first and thats why from our Aerospace Manufacturing standpoint, we are more supportive of narrow body production rates versus International Traffic and the larger bodies. In terms of the airlines providing the domestic travel, what sorts of airlines is it going to be the large carriers that depend on having a hub where you have to transfer or is it a point to point sort of airline the u. S. Airlines are pretty well diversified when you look at delta and united in terms of their International Traffic. I think what were also seeing is the type of aircraft that theyll use will be newer aircraft and theyll keep their a350s and their 787s and retire the a380s and the 777s and 747s just quickly, when you hear of the airlines intentions to add capacity, sheila, over the summer, does that jive with what you learned from the survey in your data points and granted, the airlines are operating at just partial capacity so maybe they have to add the capacity, but how does that line up . Sure. Exactly. Were seeing that right now. In fact, yesterday the International Air transport association came up with a global figure where theyre seeing traffic it was down 82 for april. Our survey says where were tracking scheduled flights it is down 87 in may. We think we saw the worst of it the week of may 18th so that was the bottom and we are tracking traffic down 83 and that is directly with doug parkers products in terms of capacity sheila, great to speak with you, thank you sheila of jefferies tim seymour. You are in the airlines. Pretty hopeful what sheila tuesday are said. Yeah. To me its always been a question of of timing. I feel strongly about this for myself and the problem is that a lot of airlines dont have runway and as weve seen some expedited coming back to work, but listen to what delta announced. They talked about their employees and the deal they have with qwest diagnostics and the mayo clinic and the number of flights in july will be two times the number of that in may and they told you that the middle seats will be there and the firstclass capacity is 50 . This is all about getting people more comfortable and doing something to begin to put capacity online and you can idle a lot of capacity and its different than the production line and you can bring it back on pretty quickly. The move in the airlines has been 45 and greater than the entire market over the last 13 days and to be clear and i was bullish when this happened and they underperformed the market so they werent a great trade into it and theyve now been an extraordinary trade and theres a lot of confidence that this timing issue has been overcome guy, just quickly on American Airlines im curious, this huge 41 move and 31 of shares are short. So this is sort of a coiled spring and American Airlines just got their Credit Rating cut yesterday to deeper into junk territory. No, its interesting. Again, good for tim. Absolutely and ill talk about american i remember the day, may 14th the day they said from 14,000 to 7,000 pilots and that stock closed higher that day and weve been basically on it ever since and last night we said 31 is what its up to and pull the rip cord you go back and look at delta specifically that stock bounced in midmarch up to 32 and failed again to the 17. 5 and 18 level. In terms of american and the big Short Interest in this environment is not particularly healthy, but youre probably getting squeezed and you have seen the capitulation. I would say if you enjoyed this bounce and you caught it, theres zero wrong with taking off the table and Warren Buffett didnt get stupid overnight if you recall he liquidated his positions and the thought process is very sound. Coming up, slack getting whacked when investors are logging off on the ultimate work from home play and unusual options actityn vi itiffany. Well tell you if theyre seeing deal danger. Fast money is back after this. Helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. Welcome back to fast money. We have an earnings alerts and we have fullteam coverage and Courtney Reagan standing by at the gap and Restoration Hardware and well start with deirdre bosa that Earnings Call is under way and he started saying that amazon has licensed slack for all of its employees and amazon is the second largest private employer in the country with nearly 850,000 employees that announcement, however, has not been enough to stem losses that we have seen in extended those shares are down more than 16 and investors knew that slacks user growth is surging in the pandemic, but what we learned today is that hasnt translated in the similar surge in the bottom or top lines and revenue grew 50 year over year compared to 59 year over year given those lofty expectations and the enormous runup in share price this year and compare that to another hot, very popular work from home play, zoom, which earlier this week said that its revenue surged 170 last quarter and more than doubled its earnings guidance. Butterfield is trying to address the big question of sustainability around all these work from home plays as the economy reopens. He said that unlike many other videoconferencing platforms and he mentioned Microsoft Teams and google hangout, he said its not a digital substitute for inperson meetings and quote, a persistent play. Melissa will be on squawk box tomorrow morning so dont miss that deirdre bosa on slack dan nathan, he will work from home boost can last . No doubt about it i think some of the changes that have been implemented over the last few months are here to stay as far as the stocks concerned, this is an example of trader on trader crime this stock is trading basically where it was a week ago so it had that runup from 31 to nearly 40 in less than ten trading days and expectations were really high this is a company thats growing sales year over year, and on an adjusted basis ive been make the case about slack in the mid20s that slack is very cheap relative to zoom and the ceo butterfield made the case why theyre a very, very different offering and i like slack down here in the low 30s lets get to two other big names and gap is making moves in the afterhours. Hi, court. Hi, melissa, gap shares have been whipped around a lot and theyre up 6 and we are up 52 in a month and up 27 in a week so theyve had quite a run here and think, unprecedented closures revenue falling worse than expected and it is aing it doesnt make any sense in this quarter because of the closures and if you look at the gap brand down globally, about 50 , Banana Republic, not much better did down 47 and athletta faring the best online sales were strong and up 40 in the month of april and 100 in may and online sales are just about a quarter of gaps total as of this fiscal year and its not enough to make up the difference from the store closures and gap putting up a gross margin of just 12. 7 then if we can switch gears and look at rh here. This is an interesting one because stores also closed and nevertheless, they were able to beat con sense with us earnings and revenue and even with the closed stores and restaurants and continued acceleration in may. The furniture seller pointing out what it called significantly higher product margins and says its optimist take those trends will continue to improve with the reopenings about 74 of the galleries are reopened. These are up about 75 in one months time so quite a run for rh leading back to these results. Did they address the rent, the Simon Property rent issue . Exactly just to remind our viewers Simon Property sued the gap for 66 million in rents they owed gap said yeah, we suspended rent payments in april and they are working with all of their landlords to come to a mutually agreeable situation for each of these, but they are leaving the door open to see if they can use this opportunity to talk about concessions, talk about maybe some rent abatement and a cotenancy to try to make this better and whats interesting is they did accrue the rent expense in the quarter even though they didnt actually pay it so that could end up getting charged as they go forward, as they figure out how much rent they owe and if theyll pay. Karen, youre digging in on the rent issue. Right i think when they decide how much they owe. I think simon pretty well knows how much they owe. I dont know if simon is only one of the landlords, i would imagine. This is interesting to me especially because they did raise a fair amount of money early in the crisis and they drew down a resolver and a debt deal in terms of liquidity they probably would be able to pay. Its an interesting tactic i think, you know, maybe theyll get some relief there. All that having been said, though, those numbers are terrible the online improved and it still has far away to go and the thing that was most interesting to me is how vastly different athletta was from gap, navy and Banana Republic which was only down eight. Im long lulu so that reflections on what the consumer wanted to be buying. Im concerned about gap. I dont own it im really interested in how this rent struggle plays out because you can bet there are however many other chains behind them who are going to do the same thing if it works. Right and already have. They already started to. So karens concern with gap and what im concerned about Restoration Hardware and the secondquarter numbers that are extraordinary have signified major sales pulled forward in my view and also expectation. We stuck it down here near 80 and it is printing up near 250 and its gone from being a have not to a have. Their Addressable Market has grown and the ceo was talking about that a couple of days ago and the operating margins have shot through the roof as stores have closed and their online businesses has exploded. You cant tell me that, yeah, i get people are home and sprucing up and people are hunkering in people are nesting, but theyre not going to have those kinds of numbers and it was a relative outperformance to expectations that makes the Second Quarter look so good as much as ive loved this story. I dont love it here and i certainly dont think you need to go buy it here and guy, you know this well pull forward demand because there are only so many arm ors or chaises you can fit in your home couch, i hear you where are you going to put this stuff after a while . Thats why you store it places have 97 capacity because people have too much bleep, if you know what i mean and i said bleep i didnt use the word. With that said, tim is spot on the street was being looking for 7. 1 this is a pretty extraordinary quarter, but now valuation is starting to get in the way and in terms of gap, that stock went from 5 to 13 i dont think its going back to five and i dont think its sticking around 13 for much longer maybe they can pay their rent in denim. Coming up, a deal in danger, why theyre trading tiffanys partner lvmh is about to hit the skids. Well reveal the name and much more right after this. When we started our business we were paying an arm and a leg for postage. I remember setting up shipstation. One or two clicks and everything was up and running. I was printing out labels and saving money. Shipstation saves us so much time. It makes it really easy and seamless. Pick an order, print everything you need, slap the label onto the box, and its ready to go. Our costs for shipping were cut in half. Just like that. Shipstation. The 1 choice of online sellers. Go to shipstation. Com tv and get 2 months free. Welcome back to fast money. Shares of ebay, and the surge in online sales due to the coronavirus so, dan, what do you make of this move . Really interesting headline that caught a lot of people by surprise, but not that many. Is traded over 50 today. Results were great it also speaks to the fact that amazon prime did not work the way that a lot of Online Shoppers had expected during the pandemic and they got a bit creative here looking for other outlls and this is one back to the mid to low 40s and youre trading about 15 times they might have just kind of proven something thats taken 20 years for this company to prove. Karen, you had an interesting question about the release of this and that is why why now . Right they dont have a duty to update us in the middle of the quarter, so what made them come out with this release as you know, elliott was in there and they had a number of things on their agenda and one was to break up the company and have classified business which is a hot auction right now and i dont know if its to sort of say, look, were doing great we dont need to sell this, but you know, if you want to buy it, give us a big price. That would be the spin im thinking, otherwise, i dont know why they need to come out in the middle of the quarter and they dont have the duty to do that nevertheless, i used to own it and i dont now which makes me sad. So good for them, and thats impressive. Still ahead, trouble at tiffanys. Why the Options Market says the jewelry giant merger, and shares of zoom info ripping higher and well break down the action. Chnt go anywhere. Mu more fast money right after this the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. The xfinity voice remote will find exactly that. For, happy stuff. The groups happy, im happy. You can even say a famous movie quote and it will know the right movie. Circle of trust, greg. Relax, the needles are jumping. You can learn something new any time. Education. And if youre not sure what youre looking for, say. Surprise me. Just ask what can i say to find more of what you love with the xinity voice remote. Welcome back to fast money. We have an update on a story weve been following all week long tiffanys is willing to litigate if lvmh proposes a price cost to this offer those concerns are starting to bubble up in the Options Market. Mike khouw has the action. Hi, Melissa Tiffany saw over four times the daily options, and its very common for the risks to sell calls and we saw a lot of call selling. Whats not common is when the strike call is being sold, that is 135 a share and we saw sales of the weekly 120 calls and from seeds were used to purchase even more of the 90 strike puts and it is 1500 and the traders spent 419, and clearly doing that is a speculative bet that the deal is not going to take place at the agreedupon price and demonstrates that they believe it is a significant risk that it doesnt happen at all. Very interesting. Mike khouw, for more options action be sure to tune into the full show tomorrow at 5 30 p. M. Eastern time the zoom boom how wall streets name game is creating serious confusion. Fast money is back in two. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com welcome back to fast money. Shares of zoom info topping the tape the stock soaring more than 60 in its public debut, but dont get this mixed up with the hot teleconference stock zoom video or zoom away travel or zoom telephonics or zoom technologies or zoom technologies which actually had to stop trading because of all of the confusion. So weve seen a boom in zoom and the company is with the zoom in it, guy, but also in the zoom info stock and in the zoom video stock. Yeah. And im not looking to fricka see Morgan Stanley, but the stock opened the stock price at 21 and it opened 40. I mean, thats almost 100 and even i can do that math and in my world it was mispriced and dont but you know and i know, you understand why people get exorcised about wall street sometimes . Well, thats one of the reasons right now in my humble opinion. Time for the final trade. Lets go around the horn tim . If you own at t youve been exorcised about the underperformance of this big wireless and cable giant i think you actually play this one and i think you play the underperformance and the debt market is open to them and the leverage is coming down. Karen finerman. Yeah. So the consumer is coming back and you know, the traffic is good, but the consumer wants a bargain nowhere better to go than tjx maxanista slack i love that theyre taking on cisco, microsoft and google and i think you cheese a stock thats multiple to sales guy if Interest Rates are going to rise, i believe allstate still has room to the upside all. Melissa. Thank you for watchin my mission is simple to make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends. Im just trying to make you some money. My job is not just to entertain but to educate and teach, put it in context call me 1800743cnbc or tweet me jimcramer are we really returning to normalcy here . Despite the 21. 5 million