Transcripts For CNBC Fast Money 20240712

As electric. One of teslas biggest goals straight ahead we start with the banks and the latest. Weve seen a flury of press conference from banks announcing plans for their dividends, one of those coming at a future date is wells fargo saying its third level will reduce from 51 cents a share, didnt mention what level it will reduce to, but that will come in with the announcement of july 14th earnings another company on the watch list for potential definitely dind watch is capital one with buffer of requirement of 5. 6 but no plan of what to do with its dividends in the press conference weve seen so far press release weve seen so far. Of the companies that have reaffirmed their dividends citi group Morgan Stanley golden Goldman Sachs bank of america. This based off the stress test last week. Jpmorgan have not issued a release yet. Not that weve seen, correct. Wells fargo started today up with an 8 yield so nobody thinks an 8 yield is what the ongoing yield is going to be for well to me theyre announcing to cut their dividend is not news in anyway at all. Once we know the dividend the stock will actually trade up so i like what jpmorgan is doing, hopefully its uneventful i think its reasonable so far with what weve seen it wouldnt shock me if when they have to resubmit plans for the next dividend if things are materially worse maybe the feds says nobody can do repurposes, and nobody can do dividends. That wouldnt shock me i dont know if the fed would do that but so far i think nothing dramatically has changed look at karen putting on her trader cap would you agree. I understand what shes looking at for sure. Karen knows, and we talk about it all the time, wells fargo has been awful stock for quite some time, a lot of itselfinflicts one would think the housing numbers should provide a tailif you just sort of tailwind if you connect the dots but it doesnt trade well i understand why you would want to dip your toe ahead of earnings in couple weeks but id much rather Say Something today definitely i think well notouch for me. In terms of the general banks, is it a sigh of relief the companies saying were going to reaffirm our dividend, et cetera, or if just the spector of resubmission later on is enough of an overhang to keep you away i really like what guy had to say. To answer your first question, i do think from posturing or publicity standpoint it definitely shows the banks are in a stronger position than fear i still think the name of the game here 100 is capital preservation and every option at our disposal should be used to make sure that we do not have a melt down like we had about a decade ago. Again, capital preservation being the number one thing i wouldnt be surprised to see dividends restricted a bit further. Mind you a lot of large banks came out early, voluntarily suspended by backs and curbed dividends here well im going to stay away from early on i think larger money center banks, jpmorgan and stronger Balance Sheets, those are the names id dip my toes in. Dont know if you heard this from morgan substantial stanley. Over lie im wondering if this is something that even the covid over lay, the fed is putting on the banks may not be enough to convince in vestors investors that theyre really being put under stress. If youre investing on banks youre investing on expectation of loan loss q1 numbers were conservative i dont think you need to specula speculate on the next numbers. Youre not investing in banks based on divs. If you remember about two years ago it was some of the bigmoney center banks were trying to fail their stress test because its a machine had you aggressive they can be with their Balance Sheet and no question the banks are under the thumb of the fed i wont get into, should they be, its their own faults, nationalizing the banks. We talk p with what the fed has done. If you invest in banks, banks made record profits around record issues attached to the pandemic everyone went as far as they could go on revolvers but we have that for bank going into q2 earnings nothing came out after the bell just like nothing came out that should have been surprising week and half ago when we got the numbers on the stress test you invest in banks because you believe theyre long Term Investor and that theyre healthier and the evaluations and relative ability to take risks are under valued our next test says every bank should suspend its dividend coming from director of volger a license, sheila, thanks for being with us. Tharngs for having me. Why dont you believe what the banks are telling us in terms of paying dividends we dont know were in a unprecedented situation, much tougher than previous stress tests, what they assumed in february. So i think its common sense to keep the capital and bank Balance Sheet that way can support positive taking. If it supports the real economy. Which is their function. I do think its really important to understand as part of the discussion that the fed has been providing capital, the fed and only regulators have been lowering capital minimum, which makes bank Balance Sheets more fragile. I understand some of that is necessary because banks do need to expand their capacity when you get into a situation like that but a better way to do that is to retain capital and keep the dividends on be the Balance Sheet, that expands capacity without weakening the bank im wrong and we get out of this just fine then later do a special definitely definitely dind and dividend should stay with the bank. What factors in. I think theres a lot of n certain uncertainty. First of all theres a lot of loans in c. A. R. E. S. Act that said if youre in forbearance you cant treat that as trouble gas which is fine but that means you dont get a higher capital charge as organize ordinarily would. Lot of the loans will be rehabilitated. Lot of them arent they did a lot of provisioning in the First Quarter but its not deducted against capital usually it is. These are all things that tend to inflate riskbased capital ratios the other thing that bothered me about lastweeks announcement was the Sensitivity Analysis only use riskebase ratios they have a lot of problems. Thats why as part of the postrate financial crisis reform we said we need a simple leverage ratio to back stop riskbased measures which can be unreliable and great financial crisis everyone said Mortgage Securities and derivatives were low risk but look what happened there. So theyre not using that any more to test the stress of the banks financial situation if you look at one of the most important biggest banks, even in the february analysis, you saw Goldman Sachs, dipping down to 3. 5 as par the of the most as part of the most adverse scenario thats about the point were dealing with now i do think there are a lot of questions in addition to Economic Uncertainty a lot of difficulty to figure how strong banks are. Keep the capital on the Balance Sheet. Im wrong do a special dividend. But we cant afford banks to get in trouble again, wed have a financial crisis that would be absolutely devastating for our economy. Thank you both for being on our show let me just ask as a bank shareholder, playing devils advocate, what if they just continue this incrementally allowing every quarter a reassessment of Bank Dividends and if it ends in a worst Case Scenario that could happen than the worse to happen they would have paid out onequarters dividend beyond ha they holiday bowl have a what they should have. And maintain the focu. Lets look at what happened in the First Quarter couple banks, wells and jpmorgan, distributed more than earn in capital. They were depleting their capital in the First Quarter were not going to get it back 30 billion in dividends with was divided up to public 145irshareholders that 30 billion on bank Balance Sheet could expand capacity by half trillion dollars, thats significant support for the real economy right now but that capital is gone. Its not coming back same time the fed is lowering capital standard to allow the banks to take on more leverage im a shareholder and sympathize with shareholders. I tried to make suggestions if banks think their shares are under valued, i think a lot of them do, pay a dividend in fines too, pay your shareholder more stock. They need cash can sell it in the secondary market or hold on with tremendous upside potential. You can do that without compromising your financial position to pay cash dividends now, even at 30 , its a lot of money, its just illadvised given the tremendous Economic Uncertainty we have and need we have for banks to keep functioning. Banks have a special deal that others dont have. They get deposit insurance and special asset to federal liquidity facilities a lot of the underwriting fees theyre getting right now is because of the fed, because of government intervention. I know shareholders want the profits to go to them but a lot of the profits are coming from Government Support not anything Bank Managers are doing. To say lets shoot it all out to shareholders when we dont know how serious this could be and whether the banks could be in trouble later in the year. I think its illadvised wait to pay it out until its warranted. Sheila, thanks for joining us we appreciate it sure thanks for having me sheila bair guy, its interesting note, hold off the dividends now, if shareholders believe in the strength of the bank theyll get it later on. I happen to agree with pretty much everything she said ill say this, i could be dead wrong, i think it will take a bank like jpmorgan who has clearly risen to the Upper Echelon given number of different things, least of which their valuation to make that decision because it will make air cover to the rest of the banks, the others will follow in kind. We have breaking news on bogey. Eing. Lets take a live picture of the boeing 737 coming back from the second of its certification flights. This was out in moses lake they flew out this morning and are now coming back. Conducting a i number of specific man urves part of specific maneuvers part of the arrangement with the faa that wants to see xyz and they go through all those maneuvers. You see the max coming in to land in boeing field they have two more days of certification flights and then take all of the data, theyre reporting all this on board and on the ground, they do analysis on the data and will be part of the final submission boeing will make for the max to be ungrounded boeings target for the max to be ungrounded is by late summer. It happens means we could potentially see commercial revenue flights for 737 max starting by november, december, some time in that time frame depending how long it takes airlines to get their pilots trained under the new procedures theres the max returning from its second certification flight of the day. Each flight is the m cast trigger snd. I would assume it is, but i dont know specifically. Look, thats the main feature theyre going to look at, to see if the software has been upgraded to the guidelines and specs the faa will look for. Whether they do it every flight or how on they do it we dont know but thats the main focus making sure the max is safe. Phil, thank you it does look like the plane has successfully land in washington. The stock up 14 in the regular session. Tim . Well, this is the kind of news boeing shareholders, which i am, want to see it doesnt get you past the faa. I think boeing mr. I think boeing will go out of their way to make sure to not get ahead of the faa Norwegian Air has cancelled and filed suit goodness boeing for damages. Filed suit against boeing for damage so a lot of work to do to clean up the industry. Management changes, i think the folks the at the helm hold those relationships especially at the chair mans level. Its something to watch. Doesnt change the dynamic demand for the industry. As covid19, the data were quoting, Morgan Stanley, whatever you look at, it doesnt bode well for quick return to air. But this was weighing down boeing well into this crisis this is a very, very day. Yeah when phil said november as revenuegenerated flights i was thinking who will be on the flight first you got the covid scare and in the back of your mind you think of the fatal crashes of theed 737 max maybe youre thinking im not going to be the first one on that plane. I couldnt say it any better. Aside from the Financial Dynamics boeing has to overcome along with the rest of the travel sector theres still real psychologicalical hurdles in terms of the tragedies that happened in march, i believe, and really retouching with their Customer Base. At thend of the day our life is the most precious asset we have and theyre going to have have to go on the Charm Offensive and work with the faa to ensure theyre up to quality standards. Absolutely. Weve got breaking news on hong kong. Kayla. Melissa, the Trump Administration is officially revoking the special trading status of hong kong. Commerce department out with release saying the preferential economic treatment of hong kong as excluded from certain tariffs and customers control is suspended in the wake of the security law beijing is moving forward with President Trump said he was instructing the administration to move forward to revoke the status but was unclear when it would be pursued but now official with this Commerce Department statement what remains to see if the u. S. Will push to remove hong kong as a member of World Trade Organization but as of today commerce is rescinding that special preferential trading treatment of hong kong back to you. Bottom line that capital flows into and out of Kong Hong Kong will be the same as for china, as restrictive thats what it appears to be at this moment the state commerce released is very short and doesnt go into great detail exactly how this will apply we are efforting more details from the white house and National Security council and state department as to how exactly this will be applied a lot are saying not much trade coming into the United States from hong kong but is a premier hub for operations and could challenge the location as head quarter because of that. Thank you, from washington, with the latest. We go to tim in another lifetime is known as ambassador because of specialties in international markets. When kayla was talking about this i was thinking about all of the companies that were seeking dualisting in hong kong or in United States and rush to get the deal done on the hong kong exchange, maybe before it closes off to outside companies. And guess what, this was a total boom to their market caps. It was actually a catalyst to a lot of the chinese e commerce names to go to significant alltime highs so this is a really difficult day. In terms of the gio politics, its important to make a stand. Its important to make a stand Trump Administration at times were not ready to make a clear stand but are ready to make a clear stand and its necessary for world to make a clear stand. What it means for the emerging markets trading with hong kong and here so far no damage. Again, getting that trading done on that side of the world, the Trading Volume in hong kong and Chinese Markets could dwarf trading here, i know its hard to believe, but at least in the namesle that have done that registration really important incident event meantime the stocks are near alltime high. Big rally on wall street as fed chief gears up to deliver remarks tomorrow we have details. Specifically to the House Financial Services committee in it you are not going to see a lot of fireworks in the prepared remashes fed chair jay powell will go through and reiterate the steps the fed is taking to combat the economic down turn due to covid virus. We know the steps taken. He made interesting remarks regarding current state of Economic Affairs he talks about this notion that many businesses are opening doors, hiring is picking up, spending is increasing, employment moving higher, were in a new phase sooner than expected, while the bounce back in Economic Activity is welcome it presents challenges needed to keep the virus in check. The path forward for the economy is extraordinary uncertainty and will depend in large part on our success in containing the virus. A full recovery is unlikely until people are confident it is safe to reengage in a broad range of activities. He goes on to talk about the extraordinary measures taking place and whether the fed has over stepped its bounds, in it he says the tools the Federal Reserve are using are for times of emergency such as what were living through now when Economic Conditions improve well put those tools back in the tool box those are some of the highlights a lot of this will go into reiterating the steps taken. Well listen for q a for any more news. Back to you. Thank you i listened to the feds comments about the economy id be depressed, except that the fed has extraordinary tools it continues to use. Yeah were just levitating on those tools. Thats been a good thing and i dont see that changing at all. Remember how down beat powell was a week or two ago. And that give some people comfort that things are bad so theyre still there. Thats been the right trade. Bad news is good news, wins the day again. Coming up, shares of micron on the move. Well bring you the results. And one airline up, the name and trade straight ahead on fast keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Because now you can expewatch all your favorite hulu shows and movies on xfinity. Youre only a voice command away from Award Winning shows like the handmaids tale, to new hits like little fires everywhere. And fx originals you can only watch on hulu. Thats just the beginning of what you can experience with hulu on xfinity. Tv made simple, easy, awesome. Welcome back to fast money weve got an earnings alert on micron lets get to josh with the latest so melissa, micron beating on the top and bottom street was at 81 cents and revenue 5. 75 to 6. 25 billion closing closer to 5. 8 billion for their q4 i caught up with steve who said material raise across the board. Biggest upside in Gross Margins improving significantly, demand appears better than feared i asked why he continues to rate it a buy he says banking on server demand remaining strong in the back half of the year not just micron, check out Western Digital intel, both up after hours. In terms of the forecast shortterm visibility is limited, not surprising due to the pandemic and broad economic challenges but he expects the data center to stay healthy. Smart phones should improve the forecast as 5g Gains Traction and new gaming councils on the way will help demand by the way hell be on cnbc tomorrow morning, live and exclusive interview, tune in for that back to you. Josh, thank you of course for memory prices and memory stocks, guy. Yeah the good news here, operating margins came in 18 , a pretty strong number for them. Im surprised the stock isnt higher in the after hours. This is 54 stock on june 8th and new 52. I really thought it would be higher i think you need a break out above 54. Valuation might be a tad stretch. And dialing same thing big move after hours big move still very strong but where we were few weeks ago to me is a weebit concerning. Yeah, tim so a lot of the numbers people knew about, the outlook is pretty good demand in data center and pc, very good. The other thing should support the entire sector is they talked about supply, about being cautious and things like gaming are actually increasing the demand out of d ram and nan. Very good numbers. Even better on the outlook agree. I think the stock will take some this momentum higher in tomorrows session. The pressure is mounting on facebook more Big Name Companies join in advertising boycott. The latest including all these that have pulled from the social media site when it was first a handful of names a lot of people were ready to discount this we didnt on this show but im wondering, facebook at this point, is investable . I still think its investable at the end the day its still a titan of the industry. But i will say there does seem to be a little bit of momentum picking up here. Again, what were seeing are large headline names starbucks was the largest in terms of revenue allocation. About the bulk of the Customer Base will be small and mediumsized businesses. Im curious to see if theres a trickle down theory in terms of the boycotts as it stands, i think your longterm name with that said, there is going to be somewhat of an overhang on the name as weve seen in so many large tech names might be an opportunity to retrench. You made that point earlier, we were chatting about the bulk of facebooks advertisers are small and midcap companies. A lot of them are direct to consumer for a lot of them if they boycotted would hurt them more than cocacola right when you think of big Corporate America right now. The more that pile on and sort of suspend their facebook advertising, the rest of them feel they need to do the same thing and theyre just hoping that facebook gives them enough, makes a statement that gives them enough cover that they could go back to using facebook because its so effective for advertisers. It is one of the least concentrated businesses. The top ten make up very little. So as pointed out, its all, you know, so many Small Businesses they dont get the bang for their buck making a big statement that were going to suspend advertising on facebook. Weve seen them weather many, many storms before i talk about it in my book, because im a longterm facebook shareholder, i think theyll weather this one as well. The way they weather the storm in the past, guy, is that weve always made the argument and always has been the case the advertisers will still go to facebook because thats where the eyeballs are so are we seeing maybe that shift in terms of that power dynamic . I think youre seeing a shift. To karens point, they have 8 million advertisers and the lions share is small to midsized businesses i totally understand that. To a certain degree theyre still insulated from all this. But they definitely now are in the cross hairs in terms of whats going on. The good news for the stock, you had a huge reversal today, two times normal volume. At least you have something to trade goodness in the form of the low put in today 207 or to as reported june 22nd. We talked about rei and pall patagonia on tuesday they were the first and wont be the last. What you take away today, the stock is seemingly impervious. Trading on the long side all right lets talk more on this facebook advertisers boycott joining us now ked there and does seem to be a movement but that movement is really being temper in the marketplace. I read one headline that kind of concerned me as a student of the Advertising Industry which is so and so upped ante as if it was a competition between brands id like to think its not i like to think this is a moment where progress could be made on behalf of the marketing community. We have organizations that are do thk doing this we have something that has a lot of attraction. The Global Alliance for responsible media. Garm there are places in which marketers the should be convening to have those conversations. Yes we all see sometimes you can move markets by utilize your checkbooks, obviously, but i think the point made moments ago about the small and mediumsized businesses they dont have a lot of optionality and the reality is main street and wall street and if you will, sand hill road are not necessarily aligned here, relative to what the marketers are saying look, the marketers are saying they need movement, they need action, theyre saying that with their checkbooks and i think to facebooks credit over last several days, maybe they should have moved faster, thats probably true. But i think theyve stepped up over the last several days to pay attention, to listen and to make some serious moves in regards to what the advertisers are saying. Sure and i agree with you, its a powerful statement for the companies to vote with their checkbooks, walk the walk not just talk the talk, to donate to organizations that support this boycott this is also happening at a time of Economic Uncertainty and im sure a lot of companies were ree value ating ad budgets anyway. Could this mark the Time Companies seriously reduce or walk away from facebook . No. I dont think so, michelle and i think that social media in general is going to be subject to different kinds of views from marketers. But there is a bit of a conflicts here and one cant help but realize everybody is reimagining their Marketing Budgets in the context of covid and only things happening, im not suggesting theres anything cynical here but i would suggest thats part of why advertisers might have chosen this particular moment to make these kind of statements relative to how their Marketing Budgets are shrinking in general, at least in the shortrun great speaking with you and next time we talk its melissa by the way you got it melissa thank you. I get it all the time, theres a famous actor in the 70s named michelle. Anyway tim seymour. I actually know her there you go its real all right, tim, what do you think, facebook. So, i think its first of all very interesting we havent heard from Cheryl Sandberg shes normally very involved here. I do think facebook is going to come around. I think the brand is something theyre worried about and theres ability to actually control that environment and theres company thats double verify or company thats tell advertisers what context are being viewed, whether its good or bad i dont think facebook is going to radically change what they do, unless theres a new regime over there, again, thats not the body language weve got so far i think theres winners in the media space as social media is taking a hit theres so many new online platforms, this network has one as well, a lot of folks can be beneficiaries in a headwind digital ad environment i think it will be very good for some people. Yeah and sandberg had been on the front of the scandal in the past and karen, you were commenting on that today as well. Yeah, i think that im sure shes doing a lot of that right now. Not in front of congress, but certainly to these major advertisers. You know, i just go back to, theyre begging her, and zuckerberg to give them cover to go back to facebook, thats what they want to do. So i think, you know, we talked about are they going to walk the walk, not just talk the talk they will for a month. Sort of what theyre holding out, were going to suspend through july. Coming up, break out the bubly because were celebrating. Happy anniversary tesla. Well take a trip down memory lane looking at whats changed in the past ten years and whats ahead for electric vehicles. Plus speaking of love, one airlines soaring higher as Goldman Sachs gave it a boost. Details ahead after this break and in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for first responders. Firstnet. The only officially authorized Wireless Network for first responders. Because putting you first is our job. When people look at the list of investors part of this idea theyll be amazed at the strengthable of tesla. That was ceo of tesla, smask, the stock has gone from 17 a share to nearly 1,000 its market cap exploded from 1. 7 to 184 billion and gains, monsterous 5,837 in the past decade this coming as they take preorders for their new truck. Spoke with founder on friday who was pretty excited its the coolest electric pick up truck the worlds ever seen so yeah thes its a big day on monday. Also those reservations turn into tickets for niko world when we show off the badger the next four or five months will be incredibly fun time. The coolest electric pick up truck the worlds ever seen except the world hasnt actually seen it because it hasnt been made yet minor detail question is can it take on teslas cyber truck. Lets bring in kathy glad youre with us. Happy to be here. Im wondering in your view what is different from nikola today versus tesla when it ipo ten years ago and only had a road in time square. Sure, well, i think the biggest difference is the right technology we did a white sheet of Paper Research at the beginning of our and just mapped out what an electric vehicle cost decline would look like, versus a hydrogen, and as we were doing that research we realized that the infrastructure alone for Hydrogen Fuelling stations is going to be five to ten times as expensive as the infrastructure for electric. And then from the consumers point of view, it is going to cost roughly three times as much its so this is a 700,000 mile truck lease. If you tally up the cost to the trucker for the hydrogen it will be three times as much as the cost would be for electriocity electricity. So the technology is what tesla got right. Is there economy of scale once infrastructure is in place, down the line. Whats interesting they are selling a bundle where you sell the truck and the fuel, so if they get the cost of the hydrogen down thats just money that they capture. Yeah if theyre able to do that we dont think they will be able to do that but lets just take the assumptions that they made in preparing for the ipo. And you take their cash flow out in 2024 where, you know, theyve got everything moving their way perfectly. And what we have here now is a stock selling at 24 billion market cap for about 110 times cash flow. And if you take tesla by comparison today, our bare case without ride hailing is seven to eight times cash flow in 2024, and if you include ride hailing, which we think they will launch this year, and thats humandriven ride hailing, its five to six times cash flow. So theres just no comparison. The other interesting thing is this Management Team has come from the old world i mean, im looking at steal, and aluminum, and natural gas and you know, those are Mature Industries were talking about exponential growth here. Thats their attempt we dont think they will succeed. But we dont think theyve got the right dna to begin with. Hey, kathy, congratulations youve probably been the most outspoken bull on the name this is not a gotcha question but just an opportunity to explain to the audience, i dont think anyone is more bullish than you are, yet you actively trade around a long position, can you explain why you guys and gals do that. Sure. Well, you will notice in our Flagship Fund tesla is our largest position at about 10 right now. As it rises above 10 we can only buy up to 10 when it rises above to 12 or 13 , and sometimes just above 10, you will find us taking profits. And the rb reason for that, Disruptive Innovation is inherently controversial so we know we can lie in wait and have another opportunity as bears folk on the shortterm focus on the shortterm. Tesla in trading opportunity alone last year, forget about the fact it was up 35 , just our trading activity around the incredible volume volatility delivered 300 bases points on performance. In another 2014 down market year our trading alone in tesla contributed 175 basis points so trading around controversy pays off you know, that said, guy, it never went below our top position that i want to be very clear about. Kathy, its karen, let me ask you go ahead kathy, so much for making yourself available i want to ask in terms of your upside scenario would you mind providing guidance in terms of how much the autonomous space market share tesla needs to capture to achieve those goals. You can see all our estimates and scenario test it on github we put our model out there we assume with our base case way out at 7,000. Our bear case before ride hailing is 1500. With ride hailing will be, back in the nenvelope, a lot higher and our bull case is out to 15,000 in that bull case we assume that theres only a 30 chance that they will get autonomous right at all so, and were assuming p with about 30 market share we do believe autonomous if and when it works is going to be winner take most business and the determining factors behind the winners we believe is going to be, well, the best chip, which tesla has, and the most data, they have, were calculating roughly 15 billion miles worth of realworld driving. Not simulation realworld driving and google released its stat a couple months ago. They have a total of 200 i mean 20 million versus 15 billion. Thats a huge difference its going to be very hard to catch up with tesla, certainly in the United States kathy, its karen, first, kudos, youve been right for so many years on this just looking at your notes, it looks like your bear case is 50 higher than here yes. Are you saying in no scenario do you see a possibility or probability of down side in tesla . In whats interesting about the bear case is we assume that tesla is going to lose market share going from roughly 17 of the Global Market last year to, the fiveyear forecast would be about 11 what seems to be happening is theyre gaining market share and what also seems to be happening is this coronavirus vooiz this Coronavirus Crisis has forced other auto manufacturers, for the sake of their Balance Sheet. Think of that. A year ago tesla was going to run out of cash, and now looks like a fortress. Traditional auto manufacturers are cutting back, certainly on autonomous but even we believe on their electric. Kathy were going to leave it there. Always great to speak with you. Thank you very much from the bull we go to the bear tim, you still short sorry, so, i think you were calling on me. Look, i any, again, yo the upside as it relates to sas is very difficult to quantify. Its important to note if it is about a Free Cash Flow story, its not something theyve done very well, but its hard to argue with the fact that the competition, which i think there will be enormous competition, if theres a move to ev, i think it should be at teslas expense but for now the reality is the competition has been laying back and thats, maybe a testament to the Tesla Technology but the valuation makes zero sense to me. Ive been very clear about that. Good for being in the game. Lets turn from the road to the skies, Airlines Stocks rally today. There was one big stand out today. Goldman sachs taking its rating to a buy to sell protecting from slow International Air traffic recovery southwest gaining 10 today, also is one of the airlines extending the noperson in the middle seat rule for longer. So do you like southwest here . Listen, i dont want to single out southwest truthly, the whole Airline Sector theres so much volatility and seeming trading as opposed to investing. Im steering clear of it all together i will say, to some of the points gold man made, southwest is one of the best, if not the best in terms of a Balance Sheet point of view, in terms of the sector they have 6 billion in dealt versus 5 billion in cash i can understand the bull case for it much like i alluded to when discussing boeing this isnt something i care to speculate on and jump in. I think were very much still in the early stages of the game and id rather have more information before putting my money to work. Yeah, saying he is not a trader but an investor when kathy was talking about trading around her longposition and it generated 300 bases points or 175 bases points in various periods, i thought it was fascinating. Yeah, and thats why i ask the question because weve had her on a number of times and a lot of the push back we get is if they are so bullish it will and if they have these kind of price targets why would they ever sell the stock. She answered the question well i think thats important t to get out there number two, airlines have become tremendous trading vehicles. We talk about it all the time. One thing that concerned me about southwest on a big day didnt have a huge volume day, traded basically at a normal volume day and delta traded less than normal volume i would have liked to have seen an indication that people were behind it with two times normal volume we didnt see it today more now you can head to cnbc. Com coming up options trading. We will tell you how high the stock could pop. Stay with us at leaf blowers. You should be mad your neighbor s sd make ice. S. Ice. S sd but youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading because now you can expewatch all your favorite hulu shows and movies on xfinity. Youre only a voice command away from Award Winning shows like the handmaids tale, to new hits like little fires everywhere. And fx originals you can only watch on hulu. Thats just the beginning of what you can experience with hulu on xfinity. Tv made simple, easy, awesome. Welcome back to fast money lets break down fedex action. So, taking a look at the sizzle, options, calls out pace puts 1. 5 times to 1. Open interest is more evenly distributed here take a look at the out money between now and next thursday in line of what weve seen in the last four fiscal quarters. In name does move 3. 5 to 14 to 15 on earnings, it is quite volatile the trade jumped out july 2nd called trading 2. 80 breaking even 6. 5 plan for reversal in the stock. Thanks for that more on options action, the llinfriday up next, final trades. Weall around the world. Ally tough time right now, and covid19 is still impacting so many people. If youve survived it, then youre the heroes we need. The plasma thats in your blood can literally save lives. But we have to act fast. So please donate. You fought for your life. Now, lets Work Together to take down covid19 to donate plasma go to thefightisinus. Org final trade my mission is simple to make your money there is all a bull market somewhere and i promise to help your find it mad money starts now hey, im cramer. Welcome to 34mad money. Welcome to cramerica other people want to make friends, my job is to educate, teach, call me 800743cnbc or tweet me aat jim cramer. This market is