Here it is, word for word, quote, trump says china may or may not keep the trade deal, end quote. That sent stocks into the close. Check out the move on the nasdaq, for instance it was up big for most of the day and the sharp slide in the final moments of trade ditto for the s p 500. So guy adami, is china back in play here . Is this the next big risk factor for the markets . Yes, and before i get into great detail, i have to wish tim seymour, as he power pitches today, a very happy birthday just wanted to get that out. Happy birthday, tim seymour what was that very kind thank you. Yeah. I absolutely think this is a big deal and we started talking about it last week, and not in terms of their trade deal or where theyre going to keep their end of the bargain and in terms of some of the rhetoric coming out of the Trump Administration what im commenting is the rhetoric seems to be getting louder and in no way, shape or form is that market bullish especially given the fact that the markets rallied back 32 in the levels we find ourselves at i think people were not paying much attention and today they started. He also said that he will be able to report on whether china is fulfilling its obligations of phase one of the trade deal in a week or two. He doesnt believe the death toll numbers coming out of china. Tim seymour, there are a lot of crosscurrents here,but in term of tensions with china, they seem to be ramping we had this conversation last night and it is appropriate today, thinking about trade policy in a post covid environment, if you think anything has changed with the administration in terms of how theyre approaching china on trade, nothings changed and thats something that the market is taken off guard on, and maybe they shouldnt be. The agenda between ultimately about controlling and pushing back on the digital, you know, how should we say that we think is happening in china, but the bottom line here is that the market which is very much sentiment based right now and its much how fiscal policy and Monetary Policy have supported markets here and its been as much about sentiment this is not something that the market was really factoring in on a day when we got a horrendous adp number and on friday well be reminded that this economy is not going to recover overnight. So if we had structural and systemic dynamics with trade before all of this even started and were hearing about it again, the market which has been struggling at 28, 2850 to 29 is certainly not going to take off from here. It looked pretty okay on the back of those stupendously adp numbers and we had this risk on looking market, steve grasso up until 3 30, we had Information Technology on the s p 500 as a sector and it managed to end positive for the year we had the nasdaq. It gave up about a percent of its gains on the back of all this we had actual selling in the tlt and it looked like there was some sort of relationship between stocks and bonds that made sense, finally. Yeah. I think the market had one thing to hold on to going into the close and that was the headlines out of trump on the trade war and potentially getting back on the forefront. 99 of this market will trade off of vaccine and off of therapies. I wouldnt make too much over the last half hour to play in the marketplace. I think what you have to connen s concentrate on, Growth Technology company, i get it though, all of these names that have taken us to the finish line or half way up from the lows are all of the technology plays. So what comes with technology . Your dependence on china, qualcomm derives 63 of their revenues from china. Micron about 50 to 60 from china. I get the concern and lets worry about the economy restarting right now tomorrow, if we get a barrage of positive headlines and were going in the right direction with some states restarting their economy, some states getting a handle on it and the death rates and the fatality rates that are sort of stabilizing, i think were not going to think about china it didnt take that much out of the market today i dont foresee it being a huge play in the marketplace and you dont see that much happening after hours on my screen so i wouldnt worry about it. Hey, what did you make of the action you know, mel, i think the honest to god truth is when you look at the markets over the last two or three trading sessions its come down to the final two hour, half hour, 45 minutes and whatever it might be off of one specific new story that people grasp on to. So i think what we saw today, and i wish the president hadnt have gone where he went today because i think we are dealing with to steves point, quite honestly were dealing with enough things right now as it is and i dont know that this would be the timing where id want to bring up the trade war and whether or not the chinese will adhere to it or not and the reality is there are so many better places for us to be focused on right now, but that being said, he did bring it up and when you look at the market reaction, i realize we finished up 200 points and we pulled up in the nasdaq. That kind of a reaction, we cannot get that kind of move where we were down suddenly 500 points and everyone is freaked out. We did get a push to the down side we did pull back, but not any different from the last couple of days so from that perspective it didnt have as big of a negative effect as we might first would have thought given what was really said by the president. I think thats a fair point i mean, if this comment was meant as some sort of a trial balloon to the notion that the u. S. May, in fact, cancel something that had been negotiated in good faith with china, we took it pretty well, guy. At the same time if we back up and our muscle memory, during the worst of it, you think of december 2018 and that was not a fun time yeah everybodys made extraordinarily valid points the market did take it well. Im not suggesting it didnt what im saying it were underestimating how this rhetoric can go. The trade portion of this is just one aspect and now President Trump has brought forth and this started last week when the administration started floating out the chinese will somehow pay for the coronavirus and there will be reparations and those types of words being used that to me is a little bit frightening. My sense is the chinese will not take that well to it and my sense is President Trump will probably not back off on this rhetoric and i dont see listen, im not suggesting its devastating for the market, but its certainly not bullish for the market in my opinion. I mean, when you add the other ingredient, the potpourri is not pleasant. Lets look at potpourri and i know our viewers dont focus dollar yen and thats a measure of risk and were getting on fouryear lows on dollar yen sorry, euroyen which tells you the European Unions currency is depreciating theres certainly been a lot of talk about how impacted that economy has been the dollar has been strengthening. Treasury yields are a little bit wider today. I, you know, if anything thats probably should have been a sign for equity markets that was bullish, but for the most part we are seeing different parts of the market and its not terribly bullish that the markets been focused only on these megacap Tech Companies and actually the nasdaqs outperformed the s p by almost 1500 basis points this year that, to me, is not bullish. The breadth that we had seen in parts of this market before covid19 that was encouraging coming out of the trade war with the fed as your friend are not things were really seeing here. So risk factors responding to bad potpourri. As we mentioned the tech sector turning positive for the year and the chart master says its about to fizzle out lets get to carter worth with more on this what are you seeing, carter . What we know is just at the peak on feb 19th, big names like ford, exxon, dupont making fiveier lows and here we are after the crash and the ricochet and the structure is just as bad. Tim was just talking about the breadth. I have forrest labs and the first is to put the stats on we know there are 71 stocks in the s p 500. Technology sector, you can see there, 26 weight. In fact, if you put amazon and google back its 30 and there is a history that you get as high as 30 and its typically at or near a peak. Take a look at the second slide. What we do know, of course, its where you start the meter and where your storyline starts. From the peak, march 24th. It was a friday 2000, the dotcom peak and tech is still behind the s p and just on a price percentage change and it is up 88 versus tech and only up 66 and look at the second column and the s p up 178 versus the technologior a technologior only 98 the first chart is the tech sector and you see the selloff and the ricochet it was outperforming on the way down and its outperforming on the way up and its making new, relative highs to the s p. Thats part of the problem we are so dependent on just these handful of names as banks and industrials and other things get worse, and so the final chart is the xlk itself, the etf and i would just for fun ask you individually each of you do you think this goes back and makes a high in 2020 it would take a 10. 5 gain from here to recoup all its losses and make an alltime high. Thats a question, carter if youre ready for an answer im ready. What is it . Oh, i was going to ask you first and then ill go ill give you mine first the answer is no i do not think it will go back to those highs this year and thats based on, but id love to hear what the desk things. Im agnostic. I dont harbor an opinion on where stocks go, but our traders do, of course, and ill go to grasso on this what do you say . So in the xlk specifically, microsoft and apple are 42 . They make up 42 of the xlk. Those are two names that have performed pretty darn well during the whole corona stint, and i think on the Services Side and on the microsoft cloud side, i think that they have the ability to perform even better going forward. So im going to push up against carter i agree with them on the xlf analysis, but i think the xlk can go higher from here so ill take the over. And pete, your thoughts pete i take the over, as well. I look at it, mel, and i see some really productive names that absolutely can continue to produce, and because of that, i do think the xlk can establish some new highs and i think it will broaden out a little bit more the one thing and i sit here listening so far to a lot of the commentary especially coming from carter just now i see so much more of a broad move, mel, than everybody else seems to see i understand that there are five or six stocks powering things and home depot is up 5 and chevron has made an 18 move off of lows and were seeing participation and target is up more than 25 and i see a lot of these various chip stocks and you go through mxpi and amd and you go down the list of chip stocks and kwefsh on, and suddenly you start to see different names that are up, 20, 25, 30 so theres been participation and clearly, its the megacap and they are starting to pick up a little bit. I understand what were talking about here, but the reality is this is broader than just the first major five stocks that are moving this market carter, you got your answer thank you. Carter worth, cornerstone macro. Bye coming up, lyft in overdrive. The company surprised the street with results and what the company said about riders sent stock surging in the after hours. Kes it pead . One bank thinks so, and that trade when fast money returns. Because theyre here working day in, day out at t is here providing support with advanced services for First Responders and connecting temporary hospitals, mobile testing sites and Emergency Management centers because until their job is done it is essential we all have their backs its what weve always done. Its what well always do. So were working 24 7 toected maintain a Reliable Network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Welcome back to fast money. We have earnings on lyft that is up by half a percent deidre bossa it exceeded expectation and showed the ride sharing firm was on track for a pretty good quarter and of course, the Global Pandemic hit and its business fell off a cliff and that was only seen in the final weeks of the First Quarter so key is what the company has been seeing in april and ceo logan green addressing that off the top of the call. For the month of april ride share rides were down 75 year over year. Ride levels appear to have stabilized seeming to have reached a bottom in the second week of april. We have since seen three consecutive weeks of week on week growth, but clearly, this is from a low absolute ride base and rides last week were still down more than 70 year on year. So rides may have stabilized at a very low level, but the question is will they ever recover enough in a world of social distancing . I want to highlight a few comments from cfo Brian Roberts a fewweeks ago he said lyft is producing its Capital Expenditures by more than 60 if rides remain at those april levels they can keep adjusted ebitda losses to under 360 million excluding restructuring costs and that is, of course, a big if, and lastly, melissa, ruber is reporting tomorrow night and we were extrapolating these results even though its shares were surging on the back of its rivals results and uber operates in many, many more markets around the world and many were hit by the pandemic earlier and it has a significant food Delivery Business which is growing quickly and also losing more money than ride sharing thank you. Deidre, thank you deidre bosa with more on lyft. Tim seymour, how do you think about this sort of trade well, the great irony, of course, is that uber is looking more interesting because of the diversity. It rallied 125 and it was down 25 into this print i think the most important thing is because we know that the april numbers were going to be awful and this is a company and if theres have and have notes, its probably a have not in terms of what happened postcovid and theyre going 30 going interest those numbers and they stayed cash flow neutral on the quarter. So in terms of the burn, people expected a bigger burn number and the fact that they came in more or less in line with 3 billion in cash and thats what makes the stock more insulated in the next three to six months is people know it will be difficult and i dont think people want to jump into this. We are down 75 in terms of ride share and stabilizing thats great, cash burns under control and it is a company that had a huge snapback going bo this and we were questioning what multiple to put on it, so im not chasing this number. Lets go to ventures, genes call. I express tims comment on growth they had a growth in revenue and its what deidre talked about and also they pointed out that there have been in eight city, 30 growth week on week, so really, some impressive bounceback this Management Team is a bunch of assassins and thats the part thats jumped out on the Earnings Call is they have an opportunity they have a platform here and the business is down dramatically and they can be chasing shiny things like uber does and the types of use case like food delivery. Instead, the company is taking this very longterm approach and is sticking with ride sharing in the u. S. Predominantly which is absolutely the right thing for them to do and dont try to replicate what theyre doing and they have said theyre not getting into food delivery another piece is how they are capitalizing on this opportunity and very Strong Language and the essence is theyre cutting costs by 200 million in capex and 200 million in opex and so what that means is about 35 of their 5,000 or so employees have eerpth been let either been let go, and that to me is assassinlike approach to this is to use this as an opportunity to streamline their business i have been a long believer in the future of ride sharing as a service and the importance of that as we move forward and an undeniable truth i have been very concerned going into tonights print about the companys ability to weather this storm this could go on for a year plus, but coming half way through the Earnings Call e melissa ive been really impressed and when you put it all together this is about an 8 billion or 9 billion market cap. It feels for someone who actually can invest over the long term, it seems like a good one to own at the same time, gene, you mentioned the different cuts that they are willing to make. If this does persist or if ride share doesnt snap back because people would rather actually have cars in the post pandemic world because they feel safer going into their environment in a black honda civic. How can this persist in their world. Theyre cash neutral and a couple hundred million, but to answer your question, they can sustain a year and a half, two years of almost no revenue, twothirds of their costs are variable that is an incredible assetlike type of business and they can sustain and wait this out undoubtedly. People are going to exit this and want to feel more safe in a car. People who have leaned more on ride sharing may lean less on that, and i think if you look at this over a fiveyear period, were still moving into a world where people dont want to have ownership. I think that that will still be a truth on the other side of this so its a headwind and it all is in this broader category investors need just to separate themselves with any of the metric, whether its lyft or uber and just look at the cash position and their brand within the marketplace. Gene, thank you. Thank you gene munster of luke ventures that is stunning that they can operate basically not taking anything in for the next year, two years. Steve grasso as the number one germaphobe on this panel, i go to you in terms of how you think about the postpandemic world and the future of rideshare. I think its going to be in stages no ones getting back on mass transit in the first stage of when the economy starts. So i think people might try out or get back to the uber or lyfts and they might migrate and say i dont want to be in the back of a car and maybe ill buy a car, but as far as lyft, lyft has been the laggard so i would expect this