Thats the former speaker of the house. Nancy pelosi called tim cook for meeting with current speaker of the house paul ryan. Is apple running theisk of offending everyone . A special report. First, todays massive move in stocks. Stocks erased all of yesterdays loss. The dow, s p and nasdaq having their best day in four months. Heres the interesting thing. Bond markets and gold barely budging. When you couple that with the earnings, was today just a suckers rally. Guys . I dont think its a suckers rally. I think its people have been burned try to play the market from the short side. So many times. When they saw sa blow out like it did, theres no way im going to beat and watch the market rip another 60 in the s p again. So, i think thats what happened yesterday. Why i think you saw the bond get sold off. I think thats what happened today. Is it a suckers rally . I think 20. 25, its imperative it closes above that this thursday. Why thursday . June 30th, the close below, the technicians will all talk about an outside month in june. If it closes above, i think the rally is still how much is i think it will porter end. Short covering as well. I think youre 100 right. I look at the order we had today, wasnt a lot of guys jumping in head first and adding the positions. It was institutions coming in and fishing on core positions they liked. Or hedge funds who were underexposed in the long side to get long some stocks, so i dont think the rallys going to be sustainable. I dont think its going to have a lot of legs. I think were range bound. 2000, 2050. In terms of the i mean the safe havens. They didnt sell off. In fact, the tlt hit a new high in todays session. Look at the dollar. Its failed to stay above the 200. You have oil back up the 50day. The traders out there can find a lot of reasons for positives today. The fundamentalists say people saying hey, this looks cheap now. Especially in the european stocks, which i think will carry this into tomorrow, but fundamentals havent changed at a all, so everything that weem were so downtrodden on over the past couple of days stay with us. I dont think this is a rally you have to chase hard. I think things were way oversold, but things that performing continue to outper tomorrow. Cform. Rockets, yes, i think so. Been saying that the european banks may be a sign here. When you a look at the european banks of todays session, not much of a balance. Barclays for instance, but deutsche bank, considering how far theyve fallen. What youre seeing, how are they going to make money. They were selling off before the brexit, then sold off more. The u. S. Banks got a nice bounce today. Guys point about volatility, the most important thing was it wasnt just today. It started yesterday afternoon. Started about noon yesterday when people looked at volatility, it was tradinging upwards of 27. Just started selling everything. Getting themselves positioned to take off volatilitys position and get themselves into maybe a long or take off the volatility. Because we were sit tlg in those low teens for so long. Time to protect. Kept saying it every day. Well, those are the opportunities. Karen talked act it all the time. Buy volatility, have it for protection, then there comes a point in time where you start to say at a 26 or 27, ive got to take this off. This is what when people are saying today that yesterdays, the vix was new pricing the s p 500 move. Poised for a spike higher today. Thats what we got. Right and its interesting to say this pricing, i get people on twitter and all over the world who say volatility doesnt mean anything anymore. I think its unbelievably correct, actually. It gave us the kind of moves and swings were getting. Thats telling you youre going to get a move up about 1. 75 in the s p. Weve been getting those moves. The problem is, how many days in a row can you get that same almost 2 move and thats why the bets go on the other side to say all right, weve had a couple of days of that, lets move moon. Sfwl what kind of buying were you seeing today . A lot f buying in energy. A lot of energy, short coverings. Energy buying. We saw a little industrial buying. And we saw some bio tech buying on the heels of decent music. Thats really the sectors we saw and small cap bio tech. It was frankly no question about it, short covering. I look at energy and i still see that the fundamentals and supply and demand factors are quite interesting. Theres continuing to get data. The chinese production has fallen off. You see a lot of shut ins around the world. You can also look at currencies like the rial. Just continues. Its rallying against the dollar. The ruble. These are telling you something that a lot of these place, i dont think the demand is going to change dramatically, but no question, fundamentals here have changed. Where do you think the dollar is going to go . When you look at the rally weve had over the past several months, its been on the fed. Now, weve got a rally predicated on other currency going a lot lower do you see the dollar continuing on its path up . No. I think the dollars got limited upside. If anything again, the jury is still out whether it broke the down trend. We had every opportunity to break hard e. Theres a lot of uncertainty. Thats the whole point. Safe haven, i get it. In terms of todays session. Do you think we are closer to the end of the damage because of brexit or closer to the beginning . Sxwl closer to the beginning. I think the headline risk in terms of the Broader Market is substantial. I also think i said last night, ill say it again. Tim may not agree. I think you could see the chinese do something out of the ordinary in terms of their currency. Theyre sitting back. Try ied to play nice in the san box. Theyve seen sterling go from 150 to 153. You mentioned ivp, so its worth mentioning again. We talked about it. Trading up to 285 and selling at that level, thats pretty much what happened. You see a retest of 240. Which was the low in february. Whats the point . Something to trade against now on the long side of the ivb. That 240 level held strongly. Nike shares are dropping. The Conference Call just starting. Kairy na freeman is monitoring that for us. Shes got a buy rating. 70 price target. What do you make of the quarter . Well, i first watched the five key items that investors are likely a little nervous about. Number one, the translational pressure kopts. Missed top line. Thats in line with the last few quarters. Second ly, gross margin missed. They came autoa 20 basis points below and that was an 80 basis points versus consensus. Third, north american future, about 78 , came up 6 . Also disappointment, e bit emergencies akroz the board are down with a particular weakness in north america, down about 500 base pointses and lastly, inventory concerns. Up 12 , but nike up 6 , we think that might be an overreaction, but those are the five items. We dont have any update on guidance. That could help the shares taz call gets underway. We wont have that until later. Whats your number one question about this point given the concerns about the brexit and possible slowdown in european as well as uk growth . Thats it. Number one. I think tha on the top of everyones mind and this is the First Company to really report. Were wondering how were going to account for that Going Forward and what theyre saying on the ground. We know that apparel sells in the uk have been down about 7 to 8 as of may, so there has been pullback in the region so far. How much of this is a function of really difficult comps . This move is something thats been a major, major tail wind for these guys. Wu nike unable to grow at levels they were growing last year. Can you call that Global Growth . Were not ready to call a top in this cycle. You make a great point. Comparisons in the category, a little bit of motivation, but theres some upcoming items in the pipeline also relateded to the olympics. Well check back with you. Shes going to stick around art hour and be on that call from the lets trade what weve heard so far on nike. Pete, i go to you first. A target, it makes you question. How long u before they start to are they getting too much competition . We see the moves out of that and obviously, under armour is another area. Bad news for i look and see the dwrout enjoins, mens and childrens apparel antd i look at that and think wow, these y guys have moves on the upside. What do you think . Zble we talk about when foot locker blew up last quarter, we talked about the fact there was pricing issue and it was goin to hit nike. It hit and adidas is also eating nikes lunch in north america. Theyre coming in hard and theyre going to come in and be the winner in this game. I look at nike and say longterm isnt a name you want to stick with. Yaed, id stick is it longterm. High 40s to the 60 level. That could be the trading rake, but if i look at a name i want to own longterm is adidas, id rather own under armour longterm. First of all, nobodys eating nikes lunch in north america. Nike owns nrt america. The key is going to be about china, whether it continues to grow as fast, but i look at valuation as much as thats whats every attacked this on, it needs to change. Its a great company, well run, but whats the next thing that takes this thing higher. The valuation at this point, somewhere around 22 times 2017 starts to look interesting. Under armour is twice that. Changes they got massive growth. Look at nike, say this stock right now, might totally get it, but 85 in the last six weeks. 200 shoes, different colors. They push pricing to the limit. Because they can. Not anymore. Catching wup them. Stock is going to struggle here. Scott. Pair of sempbs. Never worn them. I bet their pristine in the box. Youve got nothing. Zwl just stop. Last august, the stock traded down to 47 a quarter, bounce. I think you buy nike on this week. Dan talked about it a lot. Talked about it. 12 isnt as bad as it looks, 6 sales growth. I think the valuation that makes since, long nike in the sell off. Coming up, the market is doing something its only done three times since 2000. Its been a great indicator to buy stock, plus, Top Hedge Fund managers say brexit has created a huge buying opportunity. Reveal those names and later, apple ceo tim cook holding a fundraiser for paul ryan in california. Favor with the republicans. Live on the ground. Much more straight ahead. To do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. That was the party leader saying it isnt as bad as it seems. Some are thriving amid the sell off. Check out these names. Krogers up more than 4 since the vote. Altri up, Johnson Johnson and at t are higher. You buy into these brexit survivors, tim . Speaking of rubbish, should have seen in front of the eu parliament. Talk about a guy that was stirring the point. Not going to get involved in their politics. When i look at these four names we posted, why are they higher . Because theyre defensive high yield stocks. At t, this is better than a bond. Johnson johnson is this international multicap that pays. To get exciteded about these names. Now, i own altria. Im not going to sell. Its a company thats diversified its entire sales model away from the cigarette business. Can you stand these names . Yes. Will high yield work . I i hate the idea of a recall defensive. I dont look at that as a defensive stock. It performs when the markets not performing. This name is performing because its great management. They have a a great distribution of everything. Why its up in the last three days . How about this. The last three days, it sells off and this stock goes higherer. It has nothing to do with defensiveness. People werent willing to sell this one. I think were talking about investment contests. Its one of greatest companies. Thats not the worst thing in the world. Theres a reason for it and i think theres a lot of stocks that are doing that in this environment and i will continue to say, theyre going to stay higher. Im not betting gwen you on this one. I understand, but i dont like the expression of defensive because it doesnt mean anything to me. When people say its defensive, that doesnt make a whole lot of sense. The only reason and i guess to make use the defensive would be the telecoms and people running for yield. Right. Haas the closest thipg, but think about think about all the great names out there right now that have great yields and people arent running to some of these other names. High yields mean bad things in term of the price. Yeah, j j to me when they bought pfizers Consumer Products business, eight or nine years ago now, they ripped pfizer off. Pfizer had to do years later to get back that business. They paid up hugely for American Home products business. Be that as it may. Its well diversified. 17 times forward earnings. I understand what peter is saying. I think altria is defensive. Look at the move at at t. To me, thats defensive, but i understand what tim said add well. I think j j is one of those stocks, not a stock you trade. You buy it and put it away. Still ahead on my basketball game. Which is very good, by the way. Thank you. Nike shares dropping. Well hear from the ce of about how worried he is about the brexit. Im melissa lee. Youre watching fast money. Heres what else is coming up. Investors sell out britains larnlest pizza change following inni ek lands vote to leave the eu. The ceo of domino will tell us what the vote means for his company. Plus, stocks are doing something rare and strange and could signal a major buying opportunity for investors, well explain when fast money returns. Zblncht welcome back. Youre looking at live shot of David Cameron giving a press conference to the media in brussels after meeting with eu leaders there. This press conference started moments ago. Well bring you the headlines as we get them. Meantime, the sell off has swept across all sectors. The toke stocks are no exception, but could it be creating the ultimate buying opportunity in tech . Youll find chief Investment Officer of Technology Focus hedge fund. Great to see you. Congratulations on the lawn f of your funds and it is worth noting your number one position at lunchtime was linked in. It was. That was a nice pop. We lost the fund may 1st and you know, were pretty fortunate that happened. Didnt see it come, but one of the things we like about the tech market is we get a lot of volatility. An opportunity to buy stocks when the market is looking the other way. Lets talk about what has come to be an opportunity post brexit. Theres one stock that has been down for a long time. Sure. So, weve been investors gelting back to our predecessor firm, you know, its phenomenal business. Theyve got a very locked in customer base. They Sell Software to the architectural and construction end markets. And you know, for those the macro component to it. They do have exposure to europe and the uk and so, the stocks gotten beaten down hard the last couple of days. Down i think 12 or 13 , although we think over the long run, theres a more of a selfhelp kind of story here. The transition toward the Subscription Business Model away from the traditional model. You guys have seen several examples including adobe cadence. These models are typically they improve the Business Model and visibility, so we think that will trump the macro concerns right now. Did you actually add the positions during this brexit sell off . We have. Started to. It does feel to us like you guys were talking about the market being in a a range here for the next couple of months. That feels right to us as well. Were being method cal, be but thats take b a beating. This one, you also talked about when you were at your pred e sor firm. Interestingly, yelp got a pop after linked in. How do you get there in. The way we look add stocks is we try to anticipate earnings power for growth companies. We look at three, four years out trying to understand how big a business can be and where the operating leverage might be. So when wu look at yelp, we think about 3 in earnings power towards the end of the decade, so 2019 or 2020. A lot f people left it for dead. They have a new cfo who we like a lot and theyre pitting the Business Model away from advertising towards you know, being more of a transactional platform, which we think is a transformational event for the company. Its a great opportunity to buy. Go back a year and change and i was sag sell with both hands. Totally recreatable by the likes of a google or facebook or whatever. Whats your view on that . I look at it as turn around play, maybe an opportunity to jump in here nor a trade, but not something longterm that i want to stick with. I think the narrative has been popular and become loud the last 12 months. I would say yelp has done a great job pivoting the business away from desktop to mobile. Most on their mobile app, which is very difficult. They have the scaled review platform and now theyve got the mobile, which means that google doesnt have a chance to touch that traffic. And you also like paypal and this is one that has significant uk exposure. 13 of revenues according to s p. So how do you walk through that . How much of a risk is that . Sure, so we love paypal. The company spun out from ebay a little less than a year ago. The business has grown about 20 since then, so we think its really attractive. While the streets wrestling with how to think about it, operating leverage, i think what weem underappreciate is that this business is 18 years old. Its not easy to build a network like this with today 14 million merchants and 180 million users. You hear apple talk about apple pay, which has been pretty unsuccessful. We think papal is a really strategic asset. Are they going to take it though because of whats going on in the uk . It could slow down some, especially in the uk, but just to point out the total processing or payment volume or paypal has been growing about 30 year over year. 85 of payments are still check and cash, so theres a long runway for growth for this company. That just overwhelms whats happening in the uk today. Great to see you. Thanks for coming by. Gill simon. No. I understand what davids saying, but you wonder, goldman sachs, i think was representing sales forand potentially, doing something this linked inin deal. You wonder if its one of those assets