Transcripts For CNBC Fast 20240704

Amd, starbucks, pinterest out with results in the last hour shares are all on the move here. Weve got the ateam of reporters ready to dive into the numbers for us were digging into amd, the Conference Call is just kicking off. Amd shares are higher well be looking for more clarity on two factors progress made on amds a. I. Chip todays report shows us that Data Center Revenue was mostly in line, client business, which includes pc processors, sales actually came in higher than estimated. Its a very similar narrative to what we saw from intell last week heading into q3, the Company Expects data center and client to each grow double digit percentages. But they didnt provide any numbers in the report. And thats going to offset some gaming weakness. And this comes even though i. T. Budgets have been prioritizing a. I. Chips over traditional servers. Overall, thats good news for the stock, contributing to the bump that were seeing right now, as well as the earnings beat lastly, a. I. Will of course be a theme on the call given amds a. I. Chip, which comes out in q4, but keep in mind, it is only testing next quarter to three. Its coming out in q4, so, we shouldnt expect revenue until early next year. Mel . Kristina, when they say that their customers have seven times the number of engagements for a. I. , what exactly does engagement mean . Engagement means it doesnt necessarily translate to orders. That was in the report, and thats an excellent question, but it does not necessarily translate. They have hard orders from amazon, as well as microsoft for that new a. I. Chip, and theyve said that theyve engaged with a bunch of other companies, but that still hasnt translated into sales just yet. All right, kristina, thank you. Keep us posted on amd. Huh. Engagement doesnt necessarily translate into revenue interesting. I thought you were going to say wedding. Thats true you have experience with that no. Hesitated yeah, i dont amd so this, a year ago, 92 stock. Stay with me trading 123 now revenue was down 18 year over year revenue down 18 margins were 30 a year ago, operating margins, by the way, 19. 9 this quarter everything christina said is fine the quarter was fine unremarkable by their standards. The stock action is extraordinary, again i mean, goes to show, a. I. Is everything right now, because on if you would just look at this at its core, i dont know why the stock is significantly higher, given the run that the stock has had. Its fine, but again, valuations come into play, and look at where the stock was a year ago, look at it now and look at the year over year comp. Interesting. Based on what they said about data center, we would see a little bit of impact on intel, but we havent so far. Yeah, and they opened down, right . So, at first these numbers werent impressive until theyki stuff, the pixie dust, we coined that on this desk. If you look at microsoft, google, and their spend, and what theyre targeting to be their spend in the second half of the year, thats part of whats taken the stock higher, and if you think where theyre going to be in terms of a. I. Server share, somewhere in the next few years, even cutting into nvidia this is where theyre getting pulled up by nvidia, whether they deserve it or not agree with guy on the margin here, and if you look at the sales and if you look at the multiple i will say that semiconductors overall as a group had an excellent july and came right back to this place on the chart where relative to the s p, they are challenging for the breakout, while the rest of the market gets there, too yeah. Dan . Interesting when you look at the revenue guidance, the midpoint is below what consensus was, and looking at q3 and q4, they expect to be up, 50 this quarter to 51 in q3, 52 and change in q4, so theres something built in there that theyre going to have higher margin products and again, i think maybe thats what theyre telling us, but were also saying, engagement, that doesnt exactly mean orders. So, i dont know listen, i would rather buy amd than i would nvidia, because i think in a few weeks when nvidia reports, theres a lot of risk. If we dont have the level of upside that they guided to or are able to guide to for the current period, then i think theres risk to that stock and amd has a more reasonable valuation, and i dont think theres a whole heck of a lot built into it right now. We know pcs are weak we know smartphones are weak we know lots of end markets are really weak right now, so there just doesnt seem to be aggressive guidance here at all, so, it just seems a bit more reasonable are you still short nvidia or no actually, i have a bearish position in the smh, and it is around nvidia. I think theres much more risk to the downside given that guidance karen i agree with everything youre saying. It is certainly not a this year, next year story. If you think about how they view the total addressable market, how guy dan igantic it is, for x few years, probably 25, 26, much bigger years. If you have to buy the pixie dust story, if you do that, you can get to this not being so demanding on an earnings multipleyears out. I dont like to wait at this bus stop at 41 or, you know, whatever times earnings where it is right now but im going to, so i have some amd, im not going to trade around it. And i have some nvidia, as well. Be interesting to hear what they say on the call. We know its not all about what they reported. Its about what they think is coming and what is the timing of the newest chip. Right right. Geared towards large language model training that will be key they say four q we dont know. But i think thats really where this is. This is where people can do whatever they want to their models, and after the blowout that nvidia gave and the confidence of the guide, this is this is where amd also gets the benefit i just think that the bottoming of the pc business is something that cyclicly look what it did for intel on some level and look what data center does. Lets move onto starbucks. Missing on revenues. The call is under way. Kate rogers has the breakdown for us hey, melissa. Earnings call just getting under way. Mixed Third Quarter for starbucks. A fivecent beat on adjusted eps. Comps were lower across the board. Up 10 globally, 24 internationally. Up 7 in the u. S. , thats a miss versus the up 8. 4 estimated by analysts in the u. S. , the company said it saw a 6 increase in average ticket, 1 increase in average transaction. Moving onto china, that is a key market for starbucks, samestore sales up 46 year on year, driven by a 48 increase in transactions, a 1 decrease in average ticket there last year, remember, covid lockdowns were a huge drag on china samestore sales, so, seeing a rebound there, even as analysts have warned that the recovery could take longer than expected starbucks reporting it now has 31 million starbucks rewards members. That is up 15 year on year. The stock is slightly lower by 1 its only up around 1. 5 , melissa, year to date. One of the weaker performers in the restaurant sector. Looking to hear if they make nil changes to guidance on the call. Thats something they reaffirmed last quarter and if you remember, the stock fell a bit after that news. Back to you. Kate, thank you kate rogers. Tim, you own this one. I do. And im waiting on more of it lower. Ive been trading this one around for the last six months after that q1 number, same thing we saw its a lot of the same thing i dont think that their Customer Base can really withstand the higher price levels over and over again operating margins are excellent. Labor costs are certainly something they have to consider. These are record revenues, so, they missed slightly, but again, record revenues for a company, its nice to see international increasing but north america is still bread and butter and those comps at 7 werent extraordinary. I dont think theyre going to get in an environment where they can raise prices i love the company, but im going to get it lower. Year on year, why that was in full lockdown, wasnt it so, the transactions increased 40 , 50 year on year and the average transaction price went down a percent i thought that was sort of weird. Its got to be a noisy thats noisy data. Especially when you consider how much those transactions were up. Yeah. North americas still the bread and butt ore, so, 7 comps, 8. 4 street so, thats pretty significant miss we talked about it last night, where maybe valuation is starting to be a concern and where do you want to get back in this stock and i think we decided, at least we talked about 92 being the level. That was the high, i think, august of last year. We sold off from there, so path to resistance should become support. I dont think 92 is unreasonable this is sort of the quandary that investors have with Consumer Staples proctor an gamble, they are losing volume, but they have the Pricing Power at this moment, but who knows what they have next quarter right its telling what chipotle said about, you know, fear that the customer will start paying Student Loans again and price hikes and maybe they hiked prices as much as they can, or its really starting to make a dent so, this is similar to that. Done a good job, you know, selling upside calls and waiting its a great company. It deserves a premium multiple this big, probably not look at the outyear, right . Next year, you know, 12 expected sales growth and trading at a peg at the end of growth of two. Its a 24 1 2 multiple or Something Like that. Whens the last time this stock has traded that cheap . And its funny that were sitting here in what feels like a raging bull market its not confirmed its here to stay or not. We talked about it last night, nike, starbucks, a few other names, consumer discretionaries just sitting it out. I dont get it i can look around the market and i see plenty of stocks that traded ridiculous valuations based on really silly assumptions and Companies Like nike and starbucks have demonstrated to us, as long as weve been doing the show, or as long as weve been in the business, they execute decently in difficult environments. I dont note why they are sitting out. Doesnt make any sense to me and this doesnt seem like an outrageous valuation right here. Theyre sitting out because they went from 70 bucks to 115 bucks from march through, you know, kind of march. And i think thats a lot to do with it. I also think both nike and starbucks are ill strayive of really where the pent up demand was. The most iconic brands that people are reaching for coming out of covid people are talking in as much as they can different product groups, obviously. But i think thats what you get to im happy to own nike and starbucks lower. I think im going to, and i dont think theres anything that should worry you as an investor here, but this is not going to get away from you on the upside. Coming up, another pair of postbell earnings breaking down the numbers from social media to the slot machines. Plus, anticipating tomorrows treasury sales today. The impact tbill and bond issuance could have on inflation. 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Release works with your body, not against it, so you can put dieting behind you and go live your life. Head to golo. Com now to join the over 2 Million People who have found the right way to lose weight and get healthier with golo. Welcome back to fast money. Weve got an earnings alert on pinterest. Shares dipping despite top and bottom line beats. The Conference Call is under way. Julia boorstin has been listening in whats the latest . Melissa, that stock bouncing around first shares were lower, then higher, now shares are down just fra fractionally, after pinterest beat across the board with a meaningful beat when it came to earnings but worldwide monthly active users were pretty much in line with expectations. Just about a million and a half, ahead of the number analysts were looking for guidance for the Third Quarter Revenue Growth also pretty much in line. Guidance in the high Single Digits thats in line with the nearly 8 growth that analysts anticipated. Pi pinterests ceo said after reducing expenses in the first quarter, in the Second Quarter, they identified further cost efficiencies, leading to operating expenses that were lower than what they guided to he stressed on the call the longterm potential of the partnership that they made with amazon, saying that they have many strong synergies and pleased with the pace of implementation so far. He noted the broader Advertising Market is seeing what he called some signs of stabilization and recovery so, he did note that theres still a lot of choppiness. The companys cfo said that it continues to gain good traction with advertisers and verticals such as travel, autos, and Financial Services those are relatively new areas for them both ready and the companys cfo also stressing the companys focus on Operational Efficiency throughout the call. Melissa . Operational efficiency is great, julia, but its tapping into that, you know, highly focused user of pinterest who probably has a desire, intent, to buy, to actually buy, and so, when ready says hes happy with the pace of implementation, that almost Means Nothing to me, i mean, what does that mean . What hes saying that the majority of people that come to pinterest are looking to buy something. And he was throwing out the stat, half of the people who come to the platform want to buy something. And so, what theyre doing with this Amazon Partnership and also the ability for brands, whatever the brand is, to share a shopable pin, is closing that loop then you come here to want to buy something, make it so easy for you to actually buy something that is a more efficient platform for adve advertisers. And they say this is a long process, but theyre seeing action from consumers who are saving more of the pins they can click through to buy so, theyre saying theyre seeing progress. I have to think that one of the reasons why the stock first moved lower and then, you know, so sort of been bouncing around, that the user growth was in line was expectations there was some hope that pinterest would have a blowout quarter, and i think this was a beat, but not a blowout. Julia, thank you. I will go to the man who has yes, i do on this desk, thats me. Thats you. Okay, this is why the stock youre proud of that. Extraordinarily proud it wasnt asking. It was a statement this video, by the way, was created, like, ten years ago, but the pace hasnt changed. Its the same. So, oddly enough the Third Quarter revenue guidance, so, they said basically high Single Digits against the street was looking for 9 pn. 6 people are saying thats not good enough to offset what was a good quarter margins were very good, and so i think the stock actually if theyre sandbagging, which they may be, i think the stock should be higher than this. Funny, when you think about digital ad spend and the opportunities of ecommerce, theyre doing 3 billion in revenue. Its got 80 gross margin, its growing at maybe double digits, that sort of thing, and so, unless you can really ramp users and really find new levers there, this is just one of those really small players the same way feel like every other quarter were talking about snap down 20 or pinterest down 20 the fact that its unchanged right now, i think you took some of the kind of animal spirits guy out of this name on that last print when it plunged down 20 and we found a bit of an e quill lib lee yam. If you had, like, a power user pinterest, a very popular like guy . Im struggling to tind somebody right are you trading up on that . A orbottle of hawaiian tropi sun tan oil, you get a piece of it sure you do and the company gets a sale or you could buy meta right which is 40, i dont know, 45 times the size, trades at a lower multiple trades at 140 so, thats where i am there and google all right, lets get to another earnings alert this one on caesars entertainment. The casino stock extending tension losses despite topping revenue estimates. The companys ceo affirming that demand continues in vegas. Contessa brewer . The ceo on the call right now. And first off, he addressed the vegas results, down in the Second Quarter he blamed a tough comp against an alltime recordsetting quarter last year. And bad luck for the house see sarps says that bookings for the second half of the year are on pace to deliver a record annual profit in gaming in this particular segment and the vegas strip. And he says he thinks that caesars will get a 5 lift from f1, just on rooms andfood and beverage in november thats not counting what gets played on the table games. Even further out, super bowl in las vegas in february, he says theyre seeing dramatically more reservations at higher rates let me spend a minute here on the digital segment, which includes sports and Online Sports betting and igaming, casino games played online caesars, for the first time, just turned a quarterly profit in that segment. And on the call, talked about robling out this new Caesars Palace app for igaming, only legal in six states right now, but a lot of optimism, and hes really pushing back against analysts here. You tell me i cant hit these targets, his target, he said, is half a billion dollars by 2025 and he said, hes hitting all of the metrics. So, he reiterated that guidance. Saw a little bit of Stock Movement when he said that here in the minutebyminute trade. Contessa, thank you guy . I think the quarter is fine they beat on all the metrics im not really sure why its necessarily lower. I think the knee jerk was higher people are looking and saying, you know, maybe some of the comps werent up to snuff. Im just going through it now, but i think this stock should be higher i think wynn should be higher and i think Las Vegas Sands should be higher, as well. I think you stay in the casinos. Its a combination, with wynn, you look at their core business, different than Las Vegas Sands Las Vegas Convention calendar looks really robust. You look at whats going on in digital, the fact that the losses are subsiding and theres profitability, you know how much profitability in the near term, i doubt know, but the lack of losses i think the trends right now, especially given where the consumer, or the casinos, which still trade at a discount to where they were in 2019 i think you stay in this one and i see buys by 80 of analysts on the street we dont want to miss the ceos on cnbc on mad money, pinterests ceo coming up, options traders betting this stock will power up your portfolio. Caterpillar climbing higher. Our chart master nailed this one. Hell be here to talk about it fast money is ckig aer isba rhtft please dont go by harry casey, Richard Raymond finch sfx ping please dont go please dont go. Please dont go please dont go dont goooooo dont go away get a free storage upgrade when you preorder at verizon. Please dont go meet gold bond healing. A powerhouse lotion that moisturizes, heals, and smooths dry skin. With 7 moisturizers and 3 vitamins, you can pay more but you cant get more. Gold bond. Champion your skin. We want to bring you breaking news. Fitch has downgraded the u. S. Credit rating to aa from aaa also, the continuous, or, the many, Many Political showdowns surrounding the debt limit we knew when the debt limit showdown was going on that fitch was considering this downgrade, even if the debt limit was not reached. So, here we are of a downgrading. What sort of impacts are we looking for, maybe in the bond market, tim, or elsewhere . Well, remember, we go all the way back to the downgrade that we had back in august of 2011, i think, going into that, and really ultimately what happened is, there was mass buying of u. S. Treasuries and the dollar rallied. Now, some of that was a function of the cascade of what was going on in the u. S. Flight to qualify. Were going to talk about debt issuance, a deficit thats being funded, and essentially, were monetizing a lot of debt in this country. Some at some point, debt to gdp ratios and multiples matter. The political circus in washington is something that, yeah, i get that, but thats not the reason and frankly, politics have always been there i think we just happen to know more about our politics than ever, though we want to know less yeah, theres a line here, fitch says the u. S. Has had limited progress in tackling mediumterm challenges related to Social Security benefits and other benefits going to be interesting to see now, the gold market should rally on the back of Something Like this, theoretically. Gold had a rough day today i think part of the reason tenyear yields went back above 4 if you are a gold but, these are the types of things, these are the types of stories that could be a catalyst. We will also watch some of the aaa rated companies, because within the fitch universe, the aaarated companies usually default to the highest rating of that country, which would be now aa even like an apple, thats interesting. Well have to watch that. Not sure thats the specific mechanics for fitch, but that exist at the other Credit Rating agencies. Meantime, shares dropping ahead of tomorrow mornings earnings report, but the yuraniu stock has been on a tear one options trader is betting tomorrows print could power even more gains. Mike khouw has the action. Mike yeah, so, we saw about 1. 5 times the average daily call volume, calls outpacing puts by about 5 to 1 the Options Market is implying a move of 5. 2 and one trader is better that is going to be the upside the busiest contracts were the 36 calls that expire at the end of this week 17,000 of them traded overall, but that included a purchase of 10,000 buyer paid 34 cents and the break even for that trade is up 5. 2 thank you, mike tim, youre actually in your crane yum. Im long uranium. Uranium also likes the news we just got out of fitch. You think about the structural issues in our country, Nuclear Energy solves a lot of them. If you look at the execution at ccj, i mean, thats part of the story. Thats why the stocks at alltime highs, why the stock is breaking out, despite the backdrop for uranium we had one of the first newly construct ed Nuclear Reactors in the u. S. Come into operation for the first time in 30 years remember that no nukes album Jackson Brown Jackson Brown, bruce springsteen, i mean, great music, but im not sure that was what were supposed to be doing. All right, for more options action, be sure to tune into the full show friday, 5 30 p. M. Eastern time. Coming up, brace for impact. A sea of Treasury Bonds about to hit the markets. Our next guest says it may have the power to kill inflation. Well ask him about this fitch downgrade of the u. S. Credit raitting. Also, caterpillar, are we watching a met more foe sis here can it keep it up . The chart master will lay that out in two missed a most of fast . Catch us any time on the go. Follow the fast money podcast. Were back right after this. Good luck. Td ameritrade, this is anna. Hi anna, this position is all over the place, help hey professor, subscriptions are down but thats only an estimated 15 of their valuation. Do you think the market is overreacting . Howd you know that . The Company Profile tool, in thinkorswim®. Yes, i love you please ignore that. Td ameritrade. Awardwinning Customer Service that has your back. vo Verizon Small Business days are coming. Td ameritrade. From august 7th to the 13th. Now is the time to partner with our experts. Get started today with verizon business. Its your business. Its your verizon. Ahhh icy hot pro starts working instantly. With two maxstrength pain relievers, so you can rise from pain like a pro. Icy hot pro. Dad, we got this. We got this. We got this. We got this. We got this. Yay we got this. We got this life is for living. We got this lets partner for all of it. Edward jones welcome back to fast money. Stocks muddling along for a second straight day. The dow again eking out a gain, a 16th day in the last 17 sessions the s p and nasdaq down slightly mul molson coors dropping. The company did raise fullyear guidance and norwegian cruise lines posting its worst day since september after giving weak profit forecast for q3. Electronic arts dropping and devin energy also lower. The company missing estimates on revenue. On the upside, shares of elf beauty and match group jumping after their reports. Tim, you were flagging norwegian. This is a real change compared to what we were hearing from the other cruise lines it is and remember, not all Balance Sheets are created the same. If you actually look at norwegian, their Balance Sheet is better, but if you look at where we were seeing pricing and bookings for a couple of the american cruise lines, they were extraordinary numbers. We didnt get those same kind of numbers. Remember, the entire sector, though, has had a monster move, including norwegian. And i think its tough to keep that bar so high and valuations at some point dan brought this up, i think that night in other words, if you look at their sales relative to p precovid, its hard to be doing cart wheels based upon the multiple. Meantime, the u. S. Treasury department is planning to borrow more than a trillion dollars, a 300 billion increase. This comes as the treasury attempts to keep up with the ballooning deficit so, what kind of impacts could this sea of new issuances have on rates across the yield curve . Lets bring in andy constant great to see you again thank you for joining us hey, melissa. Thank you for having me. First, wait to ask, just what your take is on the fitch downgrade of the u. S. Credit rating to a aaplus. I understand this is not the first downgrade the u. S. Has had. Will this have any impact . Yeah, practically, not really no ones going to stop buying the u. S. Debt. The u. S. Will be able to honor its payments, because it has no foreign currency debt, so, it prints the money it needs. So, it shouldnt have any practical issues but of course, its, you know, not something you want to hear, and it also talks about the longer term issues about what the buying power of the dollars you receive in the future when you buy bonds is going to look like all right, lets get to the treasury issuance. We got the amount, which was greater than expected. Thats what were going to get tomorrow what are you expecting here . Yeah, so, tomorrow, the very large issue answerance announced yesterday is going to be the composition of that its going to be as described and for the last nine months, the treasury has been undersupplying the market with theres been a declining amount, and small amount of Treasury Bonds and in this quarter, most recent quarter, theres been a huge issuance of treasury bills to fund the government and so, that composition matters for longterm Interest Rates when the market is undersupplied, you can have what youve been having, which is a suppressed longterm interest rate, and when its oversupplied, interest rate, longer term Interest Rates can begin to rise again. And so, tomorrow well see, and the streets around 250 billion for q4 of the 852 billion that is scheduled to be issued, i think its going to be andy, sorry we have breaking news out of washington, d. C. , special counsel jack smith announcing another indictment of former President Donald Trump eamon javers joining us with the latest now eamon . Reporter melissa, we have gotten the document here from a federal grand jury this is an indictment of former President Donald Trump on four counts now, the counts are conspiracy to defraud the United States, conspiracy to obstruct an official proceeding, obstruction of and attempt to obstruct an official proceeding, and conspiracy against rights. What the indictment says here, and the first paragraph, is that the defendant, donald trump, was the 45th president of the United States, as a candidate for reelection in 2020. The defendant lost the 2020 president ial election. Despite having lost, the defendant was determined to remain in power, so, for more than two months following election day on november 3rd, 2020, the defendant spread lies that there had been outcomed determinative fraud in the election and that he had actually won those claims were false, and the defendant knew they were false this is what they call a speaking indictment, melissa that is, its 45 pages of text here, were going to go through it carefully, and bring you all the details from it, but that makes it clear that what the special counsels office is doing here is laying out their case against the former president of the United States in quite some detail what theyve done here is indict him on, as i say, the four counts conspiracy to defraud the United States, conspiracy to obstruct an official proceeding obstruction of an official proceeding, and conspiracy against rights so, ill go through this carefully and bring you more detail from it, but for now, the moment of history is here for donald j. Trump, hes now been indicted in relation to his attempts to obstruct the transfer of power in 2021, melissa. Back over to you eamon, thank you. Lets get back to andy constant. Andy, sorry to interrupt you we had to get to that news, but you were just saying what wall street had been pricing in in terms of what we are expecting tomorrow yeah, sure, so, again, around 250 billion out of the 852 billion is about whats expected it could be it could be lower, depending on what the treasury decides they could issue continue to issue a ton of bills, or, they could start returning to more normal issuance, where about 80 of the issuance is in coupon bonds. And that will have a major impact, if they shift to the to the high amount of bonds, that will have a major impact on Financial Assets it will cause the curve to bear steepen, meaning the longterm Interest Rates will go up, and that will hurt multiples on equities so, its a very important number to watch tomorrow, and if were above 300 billion, i think the market is really going to struggle, the longterm bond market and the equity market, to absorb that supply over the next four months. Andy, its karen. Let me ask you about the how they decide the cadence of what they want to issue i dont get it, with bills being so much more expensive than bonds, that would make me think, well, why dont they do all bonds . Would they do they have any guidelines, do they have to be could the market absorb all bonds . Yeah, so, they definitely have guidelines. They have, for the longterm, have had a historical range of total amount of bills outstanding relative to total federal debt between 15 and 20 . If they were to issue all bills in the coming quarters, they would be well into the mid20s, like 22 , 23 , so, theres nothing preventing them from doing that as you rightly said, the cost is prohibitive, because its higher than the longterm bond cost is right now. But nothing preventing them by rule, its just by habit and sort of their their mission and at the same time, absorbing a trillion dollars of tenyear notes or 30year notes or a spread across the whole yield curve would have a much, much bigger impact than a trillion dollars of bills, which weve basically seen over the last four months, tremendous bill issues and asset sprisprices, ss in particular, are up during that time. So, the market can absorb bills very, very easily. Bonds, it struggles with and so, the objective for the treasury is to try to, you know, thread that needle to not massively impact the the longterm Interest Rates, not flooding the market, but you know, taking advantage of better Financing Options right now, and moving toward bonds. Andy, were going to leave it there. Thank you so much. Appreciate your time thank you andy constant guy, youve been watching this. I think its important the market hasnt cared, but tenyear yields have gone from a 340i ish to, i think this is th highest weve seen since october last year. I think its a big deal. And that resteepening of the yield kurcurve, which could be good thing, thats when equity markets take it on the chin and thats what we might have now. Well see if the bond market can take it. Yields are telling you, you have to get a higher yield in order to get bonds through you wont want to miss lesli pickers interview with jamie dimon, thats only on cnbc. Coming up, inching to new highs. Caterpillar plowing through earnings estimates. And later, check up on pharma stocks. Diving into results from pfizer and merck, reported this morning. Much more fast money right after this vo sail through the heart of historic cities and unforgettable scenery with viking. Unpack once and get closer to iconic landmarks, local life and cultural treasures. Because when you experience europe on a viking longship, youll spend less time getting there and more time being there. Viking. Exploring the world in comfort. Our sales were up 22 . We all three of our primary segments were up between 19 and 27 on the top line. 5. 55 per share. First time weve ever broken 5. Showing up in the bottom line. That was caterpillars ceo earlier today on squawk on the street. The industrial giant climbing to an alltime high on the back of a better than expected Second Quarter. The company sees Strong Demand for construction products. Raised its fullyear outlook and just this past friday on options action, the chart master called for the stock to break out to a new high. Lets get more with carter worth of Worth Charting. Carter carter, what do you see now . Certainly a big day for cat, and grasso, it was his final call on friday on fast money, cat for the breakout so, we have the breakout heres the question. What to do its always a very nuanced thing, managing a winner managing a loser is easy get rid of it. Here is the breakout you see it on the screen lets look at the same chart going back a bit further that is essentially the same circumstance, we have welldefined tops at a common level and we have a breakout l look at it going back even further. What youll see here is a definitive newsrelated, of course, fundamentalsrelated, breakout to a new high one final chart,and this is th issue, the stock is also to the penny up against its internal trend line, in effect essentially going back to the mid2000s. My thinking is, if you want to have your cake and eat it too, you stay long and sell calls, or take some measures, because its a big day today, and while there might be a bit of follow through, a lot was priced in carter, thank you Carter Braxton worth of Worth Charting nice call on kat lascat last fr. What measures would you take, in Infrastructure Spending here in the United States, in places like china, where stimulus could be on its way. Right tims talked about the resource trade. Caterpillar traded 11 1 2 million shares, five times normal volume. The play, ill think, is to look for a pullback to the previous high, which is able somewhere between 248 and 250ish that makes sense youve seen similar moves before i think it exhausted itself in the shortterm look for a pullback to the prior alltime high. Uri was up on cat news. It was down 12, 13 on the Conference Call, that seemed kind of stupid, and that turned around yesterday i dont know why people were so worked up over it. And one other thing i want to add, they had their Conference Call at 11 00 a. M. To me, that shows, we dont care where the stock is trading, were not trying to get all of information out before it opens. Were looking at building longterm value. All this tells me, whats going on in the Market Industries are ripping and if you look at their outperformance to the s p, industrials are, its about that broadening Johnson Controls tomorrow, theyre going to talk about where, i think, commercial hvac and some of these things, numbers from carrier and trane the caterpillar key is, they are doing it without china and doing it with improved margins in a difficult environment. Coming up, a pair of pharma stocks under the weather today what the cure might be, when fast money rolls on. It was just take, take, take. So i broke up with bad banking and moved to sofi checking and savings. Now i get higher interest, pay no account fees, and get my paycheck two days early. Get up to 4. 40 apy, pay no account fees, and up to 2m in fdic insurance. Download the sofi app and earn up to 250 when you set up direct deposit. Sofi get your money right. Welcome back to fast money. Treasury secretary janet yellen responding to fitchs downgrade of the u. S. s createdit rating, saying, quote, i strongly disagree with the decision the change is arbitrary and based on outdated data fitchs ratings model declined marketly between 2018 and 2020 and yet fitch is announcing its change now, despite the progress that we see in many of the indicators that fitch relies on for its decision many of these measures including those related to governance have shown improvement over the course of this administration. With the passage of Bipartisan Legislation to address the debt limit and make other investments in americas competitiveness again, this is a statement from janet yellen, treasury secretary, on the heels of that downgrade. Karen, you brought up an interesting point in terms of how this could help Jerome Powell yes, yes. You know, when every time he goes on the street, they are yelling at him over this and that he says, well, okay, its not just Monetary Policy look at fiscal policy. And i think janet yellen doesnt seem to directly address what they said, which is entitlements no progress. Right no progress on that yes, they did, you know, raise the debt ceiling, but that still doesnt solve this issue which is up to congress. Not jay powell but i find it interesting that this is really about the word governance has been used. Guys been investing in emerging markets his whole career this downgrade is something i get for brazil i dont get it for the u. S again, we weve laughed at what the circus has been in d. C. For a long time, but i think thats really interesting, because its the credit metrics that are the ones that have been more stretched, and the ones that also then, you get into fiscal policy on top of Monetary Policy are part of the problem do you think that means that the downgrade is less, i dont know, not trustworthy, is deserving of criticism, because governance is not the same as it is in brazil, but we are a developed market, we should be the most politically its harder to challenge, though, right . It is arbitrary, its someone doing this based upon a view that is not tied to specific metrics. Credit metrics kind of like a credit score were not going to do that again tomorrow, but you know, you have a case here where, i think, when they Start Talking about governance issues, it makes it much more amorphic and harder to qualify. Thats true they are saying that every single time we come up against a debt limit, theres a political showdown, and doesnt that show theres dysfunction in the United States politically . Tim said it at the beginning of the show, i think 140 , 150 debt to gdp in this country, thats an atrocity. No country has been able to recover from numbers like that, yet we dont even talk about it. So, good for fitch maybe they are late to the dance, which they are. And that yellen response, it sounds like they had that at the ready, to me that didnt just sort of come off the pen that quickly just my thoughts shes a fast writer im sure she is a lot of people all right, up next, final trades help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from Morgan Stanley. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from Morgan Stanley upbeat music constant contacts advanced automation lets you send the right message at the right time, every time. constant contact. Helping the small stand tall. This is cynthia suarez, cfo of gogo foodco. , an Online Food Delivery service. Business was steady, until. Gogofoodco. Go check it out. Whaatt . overnight, users tripled. Which meant hiring 20 new employees and buying 20 new laptops. So she used her American Express business card, which gives her more membership rewards points on her business purchases. Somebody ordered some laptops . Cynthia suarez. Cfo. Mvp. Built for cynthias business. Built for your business. Amex business. Lets get back to eamon javers in washington, more details on the special prosecutor indicting former President Donald Trump on 2020 election interference. Eamon . Reporter well, melissa, we know that the former president has now been summoned to appear at a federal courthouse here in washington, d. C. On august 3rd at 4 00 p. M. Thats this coming thursday, so, this is a pretty quick turnaround here in terms of the process of this indictment that were now seeing unfold. Its a fourcount indictment, just dropped within the past hour and in it, the government is alleging a massive conspiracy from the Trump Campaign to hold onto power and the former president himself. Theyre citing three separate conspiracies here, happening sort of simultaneously one was a conspiracy to defraud the United States. In terms of collecting election results. Also, a conspiracy to door ruptly obstruct and impede the january 6th congressional proceeding itself. And then, the conspiracy against the right to vote and to have ones vote counted in general. So, three separate conspiracies there being alleged in this indictment also some interesting material here in terms of former Vice President mike pence you know, we we do know that he went in and testified before the grand jury what we havent known until now is what mike pence told that grand jury were getting some hint of it in the text of this indictment. One of which centers around this idea that trump allegedly knew that the claims he was making about Election Fraud were false. The indictment says that the defendants Vice President , that is pence, who personally stood to gain by remaining in office as part of the defendants ticket and whom the defendant asked to study fraud allegations, told the defendant that he had seen no evidence of outcome determinative fraud and even more detail here, on january 1st, trump called the Vice President , according to this indictment, and berates him, because he learned the Vice President opposed a lawsuit that trump wanted to move forward with and in that statement, in that comment, the president says to the Vice President , quote, youre too honest. So, theres an indication here from the text, what theyre trying to do is suggest that trump knew that he was lying here we also now have a statement from the Trump Campaign. Theyre saying this is nothing more than the latest corrupt chapter in the continued pathetic attempt by the Biden Crime Family and their weaponized department of justice to interfeern with the 2024 president ial election, in which President Trump is the undisputed frontrunner. So, melissa, well see the president now on august 3rd here in washington, d. C. At 4 00 p. M. And you can imagine that will be quite a spectacle here in washington this week eamon, thank you. Eamon javers quick final trade here, tim. Ccj karen short tlt, just in front of this bond issuance dan im long tlt. It hasnt been great im going to add a little bit. Guy zb zb little bit. Mad money starts now my mission is simple. To make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica just trying to make you a little money. My job is not to train you, but to educate you august is a tricky month this one could be especially tricky because the market