Dollars, but hes in luck and our traders are here to help him fix his portfolio and we start with the major news on gilead that weighed on the major averages gilead dropping on reports that the companys coronavirus des v remdesivir it is difficult to part through because it was halted from china that didnt have enough to finish the synopsis on these partial results were posted by the World Health Organization on its website immediately taken down, but not before the Financial Times and stat news got a hold of it. What that showed was that 237 patient were enrolled in this trial and 158 of them were on remdesivir and they had planned to enroll 453. One of the gauges they looked for for success was mortality and how many patient surs viefed at 28 days they found 14 of the patients on the drug passed away versus 12 in the control group. In a summary of the screen shot here they said that remdesivir was not associated with clinical or virological benefits. We regret that the w. H. O. Prematurely posted information on the study because the study was terminated early due to low enrollment and it was under power to enable statistical conclusions. Trends in the data suggest a benefit from remdesivir particularly among patients treated early in disease wall street analysts trying to parse through the data and it doesnt bode well for what we were going to see and we will note the Clinical Trial data from the trial from gilead and at the end of may, the Gold Standard of placebocontrolled study from the nih, mel. Some analysts and im thinking of brian scorny of baird was quick to write off this drug and based on this limited and incomplete study and im wondering, in general, are people writing this off right now and in the medical community. Is there a difference between what the Analyst Community and what the medical community see well, what im observing is it seems to further entrench people and their alreadyheld opinions about the drug. Brian never pulls any punches and put out a pretty clear note today saying it does not bode well for the drug actually working, if it didnt improve the viral load of the patients, it doesnt look good, but other people say we need to wait for the actual trial data to come in to know that, and bloomberg had a very interesting story out quoting a uva doctor who is apparently involved in this study in china who disputed the conclusions that the study failed ive emailed him trying to get more information trying to understand what he means by that and its a big question mark until we see the trials. Meg, thank you. Meg tirrell and we led with gilead because check out the Market Reaction and we started the day in the green and moved higher throughout the morning and just after noon the gilead news hit and the market took a big leg lower and the s p 500 finishing the day in the red and guy adami, what day is today today, i believe, is thursday its the day of the nfl draft which i know youll be glued to at 8 00 p. M. Absolutely. I am there it is the onemonth anniversary of the bottom and since then were up 26 thats what i was trying to get at oh or that or that, okay weve made this move. There are all these hopes in the market and what did we see today . We saw some hope come out and we saw the markets come out is this what were in for in the next couple of months . I believe so. Absolutely and in terms of the level, although its stayed around here a lot longer than i thought, 2790 or effectively 2800 in the s p, as many people have now pointed out is a 50 retracement of the alltime high in the s p we made february in the recent 2193 low and it was march 23rd or thereabouts and the numbers add up in why were sort of stalling here and to answer your question, volatility is definitely here to stay a while, despite the fact that vix has been cut in half, the vix is more than three times it was when you left for maternity leave. So vix is still high i think theres still a lot of apprehension and the volatility is here for the foreseeable future, melissa. Karen, it feels like were in a black box of sorts were being whip around and the volatility around the headlines about treatments and vaccines. We have an earnings season where so Many Companies will pull their 2020 guidance, so what are we trading on . What are you trading on . Well, we are in a black box all of the traders are in this kind of black box and this setup weve got when you dont see anything, but youre right we looked at that gilead move today and it makes me think, all right. This is what were trading on now. That and then also the hope and expectation about any other treatment because were far from a vaccine timewise and then some trepidation about the economy opening again, right you had Governor Pritzker of illinois saying that hes going to stay mostly closed through the end of may and you had trump backtracking and telling georgia theyre opening too soon then we even see some of the European Countries starting to open and yet people are still afraid to go out that to me is what well be trading on uncertainty. We just have no idea and companies are telling you you have no idea and so its hard to have fundamental analysis that you can base your valuation on unless we see some other big fed policy or Something Else from the government, thats a catalyst, but other than that, well just be whipsawed around, i think. Yeah. Tim, we spoke to mike novogratz. You sell on top and buy it below . Is that that sort of the attitu attitude that youve got 2800 is the 50 day. It looks like the market is responding very much to the 50day moving average where its bucked up against the average and early in the week weve started to run into that i think traders are ultimately looking at a handful of things that includes credit spreads and oil and these are the dynamics that were driving us all along and not a terrible surprise on a day when were getting conservatism and i know well get into target and cautious guidance there so, look, this is what we should be expecting after market his such a dramatic run, were getting a combination of technicals and the bottom run of companies who have no reason to give you the green light, but again, its a pretty constructive backdrop overall and people should not be worried about a bit of a pullback here grasso, do you agree. Constructive backdrop overall . Yeah. I do believe its a constructive backdrop because we havent tested those lows again. Anything other than tefrtisting lows and cascading lower is a constructive backdrop. When you look at the retracements and the guys talking about retrace aments at 2792 and its 2650 2934 so its the 50 and the 618 retracement and that 2800 level all of the way up to that 2934 those are the levels that you want to trade the market and back to gilead if you look at the day that you had in gilead, amazing 84 was the upside and 7440 is the low today. The low was important because a week ago when that news broke, we bounced from the 7440ish level so it held that gap zone is when they called it on a technical basis and that is constructive on gilead if you overlay gilead over the markets or vice versa you really look at direction within the marketplace, but i would not be buying gilead. I would be buying the ibb and you get all those names all put together, but if you look at what this markets trading off of its trading off of therapies, testing, timelines, when does the economy get back to work so you have to look at all those three the prism of yes, a constructive backdrop. We have not tested the lows and thats a win for the bulls all right lets get to intel here on the move earnings alert here moving lower down 5. 5 . The call is under way and lets get right to josh lipton who has all of the details josh i checked in with matt bryson, and i just wanted matts quick take his bottom line was a good quarter and intel did beat on the bottom and the top and he noted the strong Segment Results relative to expectations and solid revenue guidance and operating margin guidance really weak in his words. We have to wait to hear on the call what they say about that, what does the ceo bob swan has to explain that disappointment as for the segments and dcg and the pricier for servers and that was better than expected and as more people work, learn and play from home that should drive greater cloud demand and good news for intel there was a ccg segment and that includes chips for pcs and 9. 8 billion that was also better than expected again, though, some concern clearly here from investors about the guidance from the company. Tomorrow, by the way, our own john force will talk to bob swan hell have good questions about the quarter including other topics as well. Nothing yet on capex, josh and its plan for the year . No, no, no. That call starting right now and well certainly bring you headlines as we get them josh lipton, thank you guy adami, what you make of the quarter is nearly an irrelevant question at this point, right . No, but you always ask fantastic questions although in this case it is irrelevant. What do you make of the guidance and in the Conference Call what will you be looking for . I wanted to ask about capex and i wanted to see if it would stand for expansion because that is where the growth would be and if they go back on that they might not be well positioned my questions would be what happened to margins and thats something that i thought prior to josh saying it. Thats number one. Number two, i think they said theyre pulling the stock repurchase plan. Id be interested as to know the reason being behind that obviously, lack of clarity for the rest of the year is part of it and the third thing and im not suggesting were burying the lead at all and theres talk that apple might be getting into their own sort of doing their own chip thing and how impactful potentially is that for intel. To be honest with you, im surprised its down as it is because intel wasnt that expensive going in and i didnt think it was a complete disaster and sometimes a little knowledge is a dangerous thing my inclination is this weakness say chance to get this at a very reasonable price and i thought it was reasonable 8 ago, mel. Tim well, you have a case where first of all, the exposure they have are better than most and theyre not immune to whats going on and 80 is data center and we shouldnt be surprised by a conservative guide and this is a Management Team where the last three quarters has been overly conservative and that has been an opportunity for investors and i hear what youre saying, guy, but this stock rallied and outperformed its peer group. Its up roughly 10 to the sox year to date it shouldnt surprise you, and i think its an important time. Shares of target taking a hit today and well tell you what Brian Cornell had to say about the impact of the coronavirus. And steve iseman will join us and where hes spotting the next opportunity. Fast money is back in two. Sometimes the challenges of todays world make it tough to take care of yourself, thats why you can rely on natures bounty. To give you the support you need. To stay motivated keep active and sleep well. Add a little more health to your day. With natures bounty. Swithout even on yoleaving your house. Add a little more health to your day. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 12 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Welcome back to fast money. Target getting hit after the retailer warned profits this quarter would be lower than expected its spending more on labor and writing down apparel and other items that arent selling. The company is seeing a huge surge in Online Shopping heres what target ceo Brian Cornell told cnbc today. We went into the month of april and millions of americans are sheltering at home and theyve heard from Public Health officials that its best to minimize your time in physical store locations. We saw a huge spike in digital comps. For the quarter, were seeing up over 100 , but in april alone our digital growth is over 275 and weve just seen cyber monday occur almost every day except the volume is twice the size than weve normally seen on even a cyber monday peak. Thats all well and good, karen, except on cyber monday im not buying toilet paper and other staples and grocery, right . Youre buying sweaters and all of that and that is exactly what target is not selling and that is exactly targets problem. Right i do think thats a nearterm problem. Something else they pointed to which i think is not a bad thing necessarily is theyre paying their employees more theyre providing more benefits for their employees in terms of child care, employees that are 65 or older that they can have time off and thats an important investment in their business to have their employees feel that theyre important to the company. So im not against that at all it does create, of course, higher expenses in the short term, but i think that one the other things he said that was interesting is he believes that customers will want to consolidate the number of vendors they do business with and maybe that lasts longer than just the pandemic and i think theyd be in a very good spot having been so successful at buy online, pickup in store and making it easy for the customer to get what they want online thats been obviously, those numbers are absolutely gigantic. Those margins, however, are smaller. But i do think that the other thing that target has going for it is its one of those stocks thats benefiteded from t from pandemic and its not crazy expensive. Those multiples are significantly higher so im long target im sure there are money calls that are a little more out of the money now. I like it right here i dont think this was bad or particularly surprising. They gave you a heads up about this i think around march 25th. Grasso, you think the premiums for walmart and the costco are worth it, in your view yeah. I think they are worth it, and i think they are susceptible once we start to come out of this of people thinking that youre paying a premium and selling those and trying to get into Something Else, and i think that will be short lived and the premiums as were starting to see it these are the companies that can survive and navigate through these difficult times, but getting back to target for me it goes costco, walmart and then i bottom fish with target, and i think that when youre looking at target, its so much different than a kohls stores and if theyre building up and taking market share even though the category mix is not what they want it to be right now, once we get through this time period those durscustomers not going anywhere and theyre buying stuff with better margins on it. I would be a buyer of target on this weakness. Tim, youre shaking your head quickly. Im not shaking my head so much at steve. Im thinking about the sector and im thinking how much sales are pulled forward were talking about a recession, folks. Walmart is the biggest Consumer Shopping opportunity in the country. It trades at a 30 premium to the s p during other recessions while its been mores diddive than oth defensive than the retail sector, that to me also relative to the s p means this multiple should come down 25 to 35 . Im not saying that it will and i know walmart has been rerating on their digital dynamic here, but everything target told you is that consumables are low margin and this is a case where not only do we have a pull forward, but that we have a consumer that is not in the same position coming out of this as they were going into this. You should not be overpaying for these names especially now i dont know, guy i think youll keep your closet full of toilet paper while beyond this pandemic when you get to my age mel, you know . I mean, im just saying. I hedge myself, by the way ive cut back on my cheerio intake and thats way too much information. You go back this time last year, target was a 70 name so if youre just looking for an entry point as cliche as it sounds i agree with tim i thought walmarts too expensive all along and i thought target would have a higher valuation and walmart should come down so if youre looking for that trade. At 100, target looks interesting. The man behind the big short, steve esman, and the founder of bar stool sports took a shot at day trading and he is down big the traders are here to help him out and well have a bar stool trade School Coming up when we return since 1926, nationwide has been on your side. Weve been there in person, during trying times. Today, being on your side means staying home. Nationwide office of customer advocacy. But we can still support you and the heroes who are with you. Were giving refunds on Auto Insurance premiums, assisting customers with financial hardships, and our foundation is contributing millions of dollars to charities helping with covid19 relief. Keeping our promise to be on your side. Make it tough to take care of yourself, thats why you can rely on natures bounty. To give you the support you need. To stay motivated keep active and sleep well. Add a little more health to your day. With natures bounty. Welcome back to fast money. Our next guest made a fortune betting subprime during the financial crisis and with the markets again in turmoil where is he finding the opportunity now . Steve esman. Always great to speak with you thanks for joining us. Thanks for having me. The composition and the cause of this crisis is very different from the last crisis and still, theyre both crises and the comparisons in terms of what were seeing in asset classes. Im wondering in your view are there broader themes in this crisis that youre taking advantage of i think theres an interesting opportunity in the very large banks and the way i think about it is in the great financial crisis, the banks failed the bond markets basically failed and the fed and the federal government had to come in and bail out both and this time around the banks are fine and the federal government had to come and bail out the bond markets again id like to think about it if you put it in kind of a catchy phrase way, the banks are one for two and the bond markets are 0 for 2, and why is that and i think the reason is that post great financial crisis 2008 the regulatory apparatus spent years working on the banks making sure this would never happen again, and led by former fed governor daniel tarulo, the banks were forced to dele