3 after demand for the second half of the year is improving. Thats all investors needed to hear today check out the moves. Micron, best day in three years. Amd, all soaring, are they giving the market an all clear sign, guy . Welcome back, scott. Thank you, guy. We missed you last time we had brian we have you back. What would the show be like without that greeting. I dont think it gives the market the all clear the micron numbers were better than the street was anticipating b on revenue, steve knows this, 64 of the companys revenue down 45 year over year. So youre saying how does the stock rally off of that because this time last year, it was a 62 stock. It becomes a math problem. The rally today makes sense. We discussed it last night, but to think you have the all clear based on this, i think is foolish. I think youre having a relief rally, analysts will catch up. I think theres going to be another leg down over the next couple of weeks. The guy says youre way off the highs for names like micron and western digital, and vidia were talking double digit percentage points. Western digital has the story. Micron, theres nothing constructive on the d ram chart. To guys point, 60 of revenue from there sales down 39 what are we getting so excited its a one day off, sell that space, take a look at the market next week. I go back to the ever core note mid june where they said dont count on a semi come back. Youre going to push that to the second half of 20, and they took price targets and earnings down for micron and a whole bunch of other names in that space. Maybe thats more the reality than today is that what youre saying im not saying that not to pick on ever core, you have seen semis, are you measuring the phillies indetectioindex up about 6 they probably bottomed to the s p, third week, fourth week in may. Granted, we still have a jury out in terms of what is going on in terms of the Global Economy, a trade war, whats the fed going to do, et cetera, et cetera, we have certainly in terms of the bond market, put the fed out there as being the savior of last resort. Ill let mary anne bartells, talk about the bears contrarian view those were times the fed was a head fake and drew people into the market, and it was a dangerous time bears were out in full force i actually think that the semitrade is a place to be tactically optimistic in the short run. I dont think the structural stuff goes away, but i do think you have a case not necessarily micron. I think its fair to say within semis, you have a diverse class of companies, and i agree that the commoditized version of what they do at micron is. Are we saying we dont trust microns outlook the outlook wasnt that great. Thats the problem. The demand was going to pick up later in the year. Slightly. It was just a fact to me it was just a fact that too bearish on this. But in this particular case, the outlook was better than expected it still wasnt great. These guys have cited all the numbers that things arent great. If you think were going to get a trade deal and the Global Economy is mid cycle, semis are the place to be. If you take a semiconductor chart and overlay it with pmi, its almost a perfect match, right, so this is the economy right now. This is the roots of the economy, so if youre rooting for higher prices, you want to root for the semis. A lot of these have done really well. To tims point, when you have that call they bottomed and they had come back already, amd is up over 60 year to date. They have a story behind it. They could be replacing intel in the chips in the surface in the next generation xbox, but the other ones, i dont really see wdc western dij, i seem them growing cloud infrastructure, but i dont see it with a handful of the other. Are you a buyer of western dij then i think vidnvidia. Thats basically what youre trading. Each one of them have a a huge investment, i think thats where people are trying to give that the benefit of the doubt. Scott you asked another question, are semis the place to run in and buy, and i think for an overall market die namynamic certain parts of tech have stopped working and you want to point to relative weakness in microsoft or adobe apple is breaking out. Youre getting different leadership, rotation, we saw staples break down, well talk about that later in the show the bottom line is if youre looking for a place where Market Participants and again they dont have to be all, you know, full steam ahead in terms of the Global Economy back on, enterprise spend, et cetera, et cetera, i think you can be tactical on semis. What if youre trying to get in ahead of what could be positive headlines out of osaka i think the names that had huge runs, limb research, i think those make sense theyre still significantly off their all time highs which were probably made last year. We have the bitcoin baller on the desk tonight to your right, and were lucky to have him. Where is he amd is beating intel but theres a sort of asymmetrica l tale, i dont think its coincidental that as bitcoin has rallied a couple hundred , amd has gone from 18 to 30. If you think theres going to be anything incrementally positive coming out of o saka, things went fine, we enjoyed each other at dinner, right now no tariffs stocks continue to rip. They talked about huawei and resuming shipments to that that was incrementally positive. Yes, if you think youre going to get something out of osaka, the g20 meeting that moves the ball forward, then these are the places to buy. Its just not without risk i would also say if you think about where semis begin to break down, july of 2018, somewhere between 10, 112, i think it would be bullish if you see this break above the 115 level. That was a fresh breakout level that we had. A couple days before trump set out on those tweets in early may. The bears havent left wall street just yet. A bank of America Survey shows Global Fund Managers are feeling the most bearish since the financial crisis lets bring in mary anne bar tells, head of strategy at bank of america welcome back. Thank you for having me. Too many bears . Were all shocked because of the level of bearishness, we cant find as you said back to the financial crisis, and were nothing like the financial crisis theres a lot of noise going on here over in europe but the extreme seems way too much from a contrarian basis, that leaves a lot of dry powder as a potential to come into the market so were actually calling for a strong summer rally. We have been, we continue to say the s p can go up. You have to get a rotation out of defensive areas and into some offense i think what you pointed out is, yeah, i love that you pointed that out because it really doesnt make sense, right, how could staples be making a new high, bonds making recent new lows in yields and gold is breaking out, but the dollar is also weakening part of that to me sounds like there are concerns for deflation, gold, bonds and of course cash. Im not convinced the move in gold is defense, more of a concern about the bear mark. Theyearold on tenyear treasuries is 2 our clients need income. Part of whats going on in Consumer Staples is that sector has good yield im not sure, again, its a defensive play i think thats an income play, and i think theres a deflation trade, meaning that the market is very confused on where to be, and again, that gets back to our survey that theres so much bearishness out there, and we dont see a recession. Yes, we see a slow down here domestically, we see a slow down globally, but were looking for 3 global gdp growth is earnings slowing down, yes, but theyre not negative so we cant come up with a reason for a recession or going into a bear market and the argument that i knemade you just had the bear market we dont see clients talking about this at all. You had a bear market in the 4th quarter. And when i talked to our technical analyst, steve sutmeyer, has there ever been a time we had two bear markets back to bark, and he came back, clarified, never before in a secular bull market have we had two bear markets backtoback. And i trade under bob farrel for a time, investors invest on the last cycle, and thats really whats relevant to our survey. Theyre investing on us being in a financial crisis we have completely moved out of that the interesting part is bob said by the time they figure it all out, it will be the end of the cycle and were nowhere near that but mary anne, so when you say the financial crisis, do you mean 2008, 2009, or do you actually mean december, which is the mindset because first of all, anyone that went through 08, 09, basically feels like i could see this in my lifetime, and they trade that way. December felt like that. Im wondering is that the hang over youre talking about. Well, certainly were not 08, 09, the data that were quoting that we have never seen clients this bearish, goes all the way back to 08, 09 eng having a bear market creates a mindset that goes back to very similar to 2008 and 2009 when we talked to our financial advisers, even though the market year to date recently was up 17 , clients are not behaving as if the market is up 17 . Theyre getting a lot of calls, concerns and worries, obviously china, then iran. So your price target for the s p, your target is 2,900 . For the year end. How does that work out, though a lot of volatility. You think were going to have a ramp up and. And then a selloff. The selloff is based on what . Ill let you know, but basically ill let you know, why the volatility because were only looking for youre looking for a selloff but dont know why theres a selloff. The reason were not pricing the market higher is were only looking for single digit Earnings Growth, so we have been forecasting a slow down in the Earnings Growth rate, so with the slow down in the Earnings Growth rate were not sure how much the pe multiple can expand. The tenyear treasury yields keeps falling, yes, you might wind up with tina, theres no alternative, and people just chase stocks and expand the multiple, were just not comfortable doing that so we think the gains are modest with a lot of volatility got you so im curious how much the demographics play in this. I have to think that most of the people youre surveying are approaching retirement, baby boomers, they need that income its less about a play on the market or the economy, and more about the Federal Reserve is going to raise my cost of living and lower what i can earn on savings so i have to buy staples. So the survey that were quoting are professional Fund Managers from around the world those are not individual investors, but individual investors, i meet them all the time theyre not generating enough income for sure, and theyre trying to find ways generating income and generally they take more risk in trying to find income staples are not considered risk because theyre considered defensive. Im just saying, generally theyre not considered as risky. And i looked at them in the marketplace. Theres actually some really nice yields that you can find in Consumer Staples, so i think thats why theyre poking around in that space, not a sector that we have overweight, though. Mary anne, good to see you. Bank of america, meryl lyncrill i know mary anne knows this but talking about procter gamble, 11 eps growth probably trades at a standard deviation at its multiple. I understand why people chase it but i think its wrong i get exactly what shes saying. Not ridiculous to think the s p, i could cite five reasons and probably none will come to fruition im nor cautious maybe the consensus is right. Whats encouraging for the market is that she talked about the reach for yield, and what youre seeing is a dynamic, first of all, if you look at high yield, were basically back to the tights, krecredit spreads from the blow off topic, if you look at duration risks, people have been pushing out the curve in terms of duration, without getting overly technical, buying longer term debt, where you have more volatility is something people have been doing and something where people get concerned. The rotation in the market the last two days tells you people are going back to big cap tech. Icto your point, people got o overlevered with the defensive names or the growth names, and i think lenore set the stage, was up year to at a time very well, and you saw everyone bash the space, and kb has a better report Home Builders thats where i have been adding. Home builders, perhaps, theres no tariffs on Home Builders, yields are low but in general, i just dont think at the market highs, were relatively close to the highs with all of this uncertainty that you have to get over your skis and start buying everything here for me im just in a cautious model. Take a bit of profits off the table. Coming up Facebooks Mark Zuckerberg taking the stage moments ago with the aspen ideas festival, were going to bring you his comments on everything from bitcoin to privacy, and check out shares of kb homes, the stock higher after reporting earnings moments ago the Conference Call is underway. Live from mes ua itisqren new york city tonight, and there is york city tonight, and there is much more fast money after this. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Knc General Mills stock dropping more than 4 and weighing on the broader consumer, the group has Serious Games as we mentioned, making it to record highs, but is the party in your pantry coming you missed something there scott. I didnt write it theres a party going on in terms of their Balance Sheet thats where people were concerned today. This is a weak number. Its a couple that has been tradi trading aggressively into those numbers. Debt to revenue, its a case where you have enormous and a net 4. 1 times leverage for a food company where margins are not high i think people are getting to a place, and its kind of been across the whole sector, certainly here, these are companies who have managed through acquisitions to continue to grow and bolt down a lot of assets and frankly at what cost. Im not telling you its a major blow up but the market treated this country like its about to happen, at least its a major concern. One of the acquisitions they made is actually doing quite well, which is the blue buffalo segment, again, pet footds, thats where General Mills has said this is the future. You have the chewy ipo, the pet med express, other ways to play this we know people spend money on their pets, lord knows i do. You have to look at how the market treated this back in may, when Goldman Sachs downgraded the name, they clobbered the stock. All the profits and returns are going to be short lived, the stock was decimated. That tells you a lot when you see negative news and the stock keeps rebounding it is a yield play, it is a growth plate, 3. 8 on a yield right now. I think you can still buy gis. What would that yield do today with all due respect. When you see the stock rebound, maybe you want to wait until it bottoms out for more on General Mills and whats next for the stock go to tradingnation. Cnbc. Com heres whats coming up. Bitcoin, bitcoin, bitcoin fever is back as it soars toward record highs, and you wont believe how high one top investor thinks cryptocurrency is headed next plus well, were not quite sure but the man who called the semi surge said the three laggers set for a breakout, hell tell us what they are. Theres much more fast money theres much more fast money right after this right now . Whats now . He says theyre surveying our property now theyre probably at the wrong house i dont see any hovering his name is hovering . Machine learning and analytics,h cognizant is helping Insurance Companies advance how they serve even hard to reach customers. Cool welcome back to fast money, the dow is on track for its best month since january, up 7 , and just about 1 away from its all time high. A few key names have lagged behind bob pazani is breaking down the dows winners and losers. Walt disney is the biggest gainer on the dow, up 26 , on fire since they announced bundle products on april 11th growth in its Cloud Business has been powering microsoft. Up 14 it helps its not one of the Tech Companies getting caught up in the debate about tech regulation, ensnared facebook and amazon walmart up 13 , slowly convincing it has the tools to compete against amazon visa up 10 this quarter and just off a historic high on double digit payments volume growth in most parts of the world. On the other side, disappointing earnings and cautious guidance were the main reasons why some dow stocks were laggards, the global slow down hurt several multinationals including 3m which dropped after disappointing guidance in april. Intel dropped. They issued disappointed guidance also in april, walgreens also had disappointing Earnings Guidance and exxon mobil went into a decline after its Earnings Report in april energy is the biggest sector loser on the quarter down about 4 but still fuelling the gains this month back to you, scott. Good stuff, bob thank you so much. Lets trade on the desk. Who wants a piece of this. I think disney is the one if youre going to be in the market, thats probably the place to be. They have multiple levers they can pull they have said their business is doing quite well, and you have an east boards play there. In general, look at the difference between disney, and whats going on with 3 m i think that tells the whole story of the market for the last year we have effectively been trading in a huge range, two Huge Companies that, you know, are affected by the Global Economy one more than the other. And 3m looks horrible, looks like death, thats the one i would stay away from. I think energy is interesting here if you go back five years, its down 6 , so you could make some money on these rebound effects we have some volatility, get some geopolitical stuff. But you c