Sees a 25 rally ahead should you bite into this name we begin with the news that moved the markets, stat news pulling the coronavirus vaccine. The reports saying according to the vaccine experts, theres really no way to know how impressive or not the vaccine may be while moderna blitzed the media, it revealed very Little Information and most of what it did disclose were words, not data that report sent stocks tumbling look at the Market Reaction when the story hit just around 3 00 p. M. Eastern time and it closed at the lows of the session and modern a of course, finishing the day sharply lower. Guy adami, the hope rally was fueled by moderna. Hi, mel here we have the decline in the markets because of moderna yeah. And its disappointing, number one. And im not a Clinical Research scientist more do i pretend to be, but we talked about this last night we said, you know what this it seems a little sparse in terms of information and we thought people were getting their hopes up and yesterdays market was predicated on that news and i thought the 60 minutes interview with jay powell. So the fa account that were down today on the back of that is not all that surprising, but ill say this, and again, im not casting aspersions at all, moderna, to have a 17. 6 at 76 off that move the stock saw yesterday. So we talked about it not passing the sniff test last night and my eye, it doesnt pass the sniff test today. I think its going to be interesting to see if there are any ramifications Going Forward on the back of that. Some of the other issues that this report from stat news raised was that sample size, remember they cited specifically eight patients that developed neutralizing antibodies. Those are the antibodies that people should be focussing on and they didnt disclose data on eight patients and eight patients is a small number of patients and it is not statistically significant in this naid did not release a press release in conjunction with moderna. Those were a couple of other things that stat news raised questions about. Tim seymour, we did sort of question the notion of releasing data from an incomplete phase one trial yesterday, but does that mean whatever gains we made from the hope rally should, in fact, disappear . Well, and they didnt all disappear. Right but as guy pointed out, powell plus moderna is one plus one equaled three yesterday. We got a bigger response than we might with one of them on their own. We got powell, part two, the exact same speech, but delivered in a Different Forum and moderna equaled down 1 on the s p and it didnt pull back as much either and we had the headlines and whether they be the gilead headlines and we had abbott labs and weve had different phases of treatment, testing and ultimately vaccine that have given the market hope for the last six weeks that either way is not going to be an immediate result and what i think the market has to come to grips with is this balance between whats going to be a staged recovery for people going back to work, even if we had the vaccine tomorrow through phase three with a bow on it so i think if you look at what the market did in the last hour of trading and it lost 30 s p points and the trades that had been essentially not working for a couple of days which were the growth trades and the megacap check trades and the pristine Balance Sheet trades and those were ones that were more defensive into the close, and the markets will be in this range and the bears will point out to say hey, look, both technicals are around 2950 and the fundamentals three quarters of the we through earnings season dont get you excited like walmart in the Third Quarter and i know were going to talk walmart, but a lot of stuff has been pulled forward here and for someone thats been constructionive, i would be somewhat Glass Half Full with moderna because theyve had to shrug some of that off. For those watching grasso ranges where we are is probably above what most peoples uppermost range, the top end of the range, 2900. Yes so when you look at the 2955 area is where technicians are really basing their approach to where they want to sell this market that 2792 is a 50 retracement so thats where human nature tells you i have 50 of my money back i could have lost it all which, lets hope that never happens, but these are people that are coming off of that 66 low and the financial crisis so when you look at what is this market basing off of it is vaccine. What i like about yesterday is the market really gave you some insight to what this market will look like when you get Real Progress on a vaccine. I think you will see a blowoff top once you get the vaccine and to all of the bears what you need to be cognizant of is every day we go on with this market, were a day closer to a vaccine actually coming to market. So the bears have got to be where the bulls sort of theres no reason to take a stance here at the 50 line. I think you should just be cautious and just say maybe, maybe youll see a vaccine within the next four months, not 18 months. Four months thats a pretty short timeframe as it is karen, how do you sort of trade this whipsaw action in the market especially when granted, this could be a glimpse of what the markets will trade like once there is true progress, but that true progress, we dont know when that is going to happen and it could be four days and probably not four day, unfortunately, four months or it could be a year or two right the runup capping it off with yesterdays move, today i was a net seller and cvs, for example, was something i bought in march, but can i go back to that moderna offering for one second, if thats okay yeah. Its amazing to me so they talked about the eight patient, but apparently, i believe there were 45. If they do have, if they currently have data that is less optimistic watt the eight patients for a billion and a quarter worth of stock that would be probably not so cool with the sec would be my guess i dont know what we could read into it that wed proceed with that ipo only releasing that amount of data, but if it comes back later that they had information knowing that it wasnt quite as rosy as it was painted to be, i think that would be a difficult situation for them there are certainly a lot of questions and right the offering yesterday raised some eyebrows today again as karen had outlined so lets bring in jacob to get his take on whether or not they should draw some regulator attention and hes now with the law firm dickinson wright. Thank you for being with us. The answer is in my mind, no question and its the scrutiny and almost a great leadin, is not only talking about the mission to have facts and i can see such things as Insider Trading manipulation these are the exact issues that co directive enforcement steve peaken highlighted in his keynote address just one week ago at the security Enforcement Forum which is the preeminent forum for enforcement lawyers. I go back and quickly look at what happened with the moderna stock. Friday the close of 66 and the preopen released on test results that are now being questioned by experts and the monday open at 86 and a close of 80 and an aftermarket release of 76 on the offering and a tuesday close of 71. That almost invites sec consideration of a trading suspension and weve seen 33 trading suspensions since february 7th in other words, less than three and a half months involving covid solutions, covid claims, treatment, vaccines and the like is there enough for some sort of trading suspension and some investigation based on when we know right now, jacob or what are some of the missing pieces to the puzzle that investigators and lawyers will need to figure out in order to proceed with the case if they did proceed with the case the devil is always in the details. On the Insider Trading side it will be who was trading and when were they trading and what was the information . In terms of the disclosure of materiel facts, its going to be an assessment of the substance of facts what was known by the company. One of the things that this commission, interestingly, in 2019 and one of the reasons actually at the moment im up on trading suspensions and fighting for a client is, you know, is the issue of the integrity of the press releases and whether a company can, in fact, does or not disavow information that may be in the marketplace as a reason not to terminate a trading suspension, but fundamentally for the sec to make the trading suspension and determination that is not an enforcement action and that is considered what is in the Public Interest and what is really designed to protect investors . The back to your question in terms of what else do we need. Its really the substantive facts and all of the issues that your experts really are raising right now that go to the substance of a companys disclosures and what do they know and what were they disclosures and were they adequate that defines materielity and yes, there is enough in the marketpla marketplace right now for there to be an investigation and one may very well have a parallel criminal component and one this company is based in cambridge, massachusetts the Boston Office of the sec is very thorough and very aggressive including in the area of trading suspensions so i think theres no question we will see a regulatory investigation. Would there be an abtight, jacob, in your view for the sec to launch such an investigation into a company that could be developing the vaccine that could save millions of lives right now isnt that politically unsavory not at all. If you go back to the speech on may 12th and the co director, go back to march 23rd when steve, and they are the codirectors of enforcement issued a release on market integrity this is all to the sec about communications and the quality of the communications and transparency an investigation does not prevent the company from advancing its clinical trials, and does not prevent bringing to market a vaccine if there is one. This is about information that is in the market and that is fueling this aberrational or volatile trading and that really is the responsibility of the sec and i think the two are mutually exclusive. You can ultimately have a vaccine that whether it comes from moderna or some other manufacturer, but right now for purposes of regulatory enforcement inquiry thats about integrity to market, Public Interest and protects investors and you look at the materiality as reflected in the price, and i do we do see an investigation. Jacob, good to get your thoughts thank you forrior time. Thank you. Jacob frenkel we requested a comment from moderna from the ceo as well as the Public Relations department and have not gotten anything yet. If we do, well bring that to you. In the meantime, tim seymour, is this enough for you to say im going to stay clear of this space, of maybe this particular stock . Well, i think most investors are not actively engaging and this is news for the obvious social story of whats going on with the crisis, but this is news because this is market moving. Were analyzing companies who basically have a cash burn story every day. Its sand through the hourglass. I think investors are largely speculating as to the time line before the economy is able to go back to work in full scale and then assess everything from credit to normalized earnings. Thats where we are and thats what were doing here on this show im certainly not going to be the one talking about modernas efficacy and the phases of trial. Ill listen to meg tirrell on that, and the market wants to weigh the timeline and look at some of these Big IndustrialCompanies Like airlines and some of the automakers or of the shippers and those in the line of fire and thats the calculous investors should be weighing right now and i dont think moderna, in and of itself should be that measuring stick. I dont think it should have been yesterday and i dont think it will be tomorrow. Guy adami, we talked about bill ada number of times and it was interesting to see the initial reaction of gilead yesterday to the news that a vaccine may be coming. There is not as much of a need for a treatment for the disease for which there had been a vaccine, but gilead still finished the day lower today and finished on the lows of the session. Yeah. I was going to bring that up so im glad you mentioned it, in answering your question which tim did so well, gilead is your cautionary tale that started a month, month and a half and you saw a stock that went up to 84 on hopeful news and i think it closed around 72 by the way, bill ad, there will be an opportunity forgetting about covid and vaccines and potential treatments gilead on its own i thought was doing well and now its being taken out to the woodshed and probably excessive on the downside again, im not saying that moderna said, i have no idea what i said last night and what ill emphasize today is it didnt pass the sniff test and just the optics were not good and maybe everything was on the up and up. I have no idea whether or not that is the case, but the optics werent great, mel, and i think were seeing the aftermath now you should note we did get a Company Response to the company with the secondary share issue and the company referred us to the prospectus and the use of proceeds which is the screen that you see there on air and the use of proceeds and thats the only comment that we have gotten from moderna. Coming up, shares of spotify surging and well tell you who the company signed on and what it means for the stock, plus the governor of california starting to reopen his state and as tech giants work to indefinite work from home, what does that mean gaffe innewsom joins us when we return tempurpedics mission is to give you truly transformative sleep. So, no more tossing and turning. Because only tempurpedic adapts and responds to your body. So you get deep, uninterrupted sleep. During the tempurpedic summer of sleep, all tempurpedic mattresses are on sale during the tempurpedic summer of sleep, i geh. Common bird. E. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Welcome back to fast money. Check out shares of spotify after the streaming giant announced a multiier exclusive deal with wellknown Podcaster Joe rogan. He, of course, is the host of the joe rogan experience and you may remember him from this infamous video with elon musk in 2018 and he is expected to be on spotify later this year. Tim, huge serve on this get of joe rogan. Yeah. I mean, i think you have a case here where were obviously looking for content these days and spotify obviously has been showing their ability to monetize and raise free cash flow, and i think this is it this is not a game changer, but this is again, about a major personality joining up and this is something that should be bidding the stock. Grasso, you like spotify . You know, when you look at the chart on it i dont like to buy charts that are straight up on this, and i would give it a couple of days for it to settle back in. Once we get back to work i think those listeners will probably dissipate is not the proper word, but will decrease definitively so i think youll get a chance to buy this a little bit lower and when you buy a stock based on talent, i think that always comes around to bite you in the butt i would wait a little bit longer im sure the stock would do okay because it has a mass following, but i would wait on this news specifically, give it a couple of days to breathe dont buy a stock on one name and one name only. Isnt that sort of whats done anyway . When you have netflix or studio and they snag some big director or actress in some series that theyre launching, karen, that oftentimes bids the stock higher star wars, thats probably an extreme example and that is one example of a Company Moving higher based on the content they have secured well, two examples come to mind, one was a positive and one was a negative and both involve Oprah Winfrey which i think of Something Like this. When oprah went to start her Oprah Winfrey network on discovery and there was quite a bit of fanfare and everyone was excited given the strength of her show didnt work out. However, when oprah went to Weight Watchers that was genius. That was just a gigantic score so i dont know how this will work out i kind of agree with steve i wouldnt chase it up here and this is another one where i absolutely love the product and im not exciteded about the valuation particularly on a day like today when it was up so big. You know there is a fast money podcast did you know that . Seriously trade school. Absolutely the more you know. Fyi for all of you out there working from home. Coming up, retail getting wrecked today as the first group of Companies Report results and well hear from the former ceo of home depot and why there may be more pain to come and it is trading ahead of alltime high ahead of earnings and why Options Markets say you should play. Stay tuned i love these fries. 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