Higher. Its about to get worse as a passenger forcibly removed from his plane says he is liking about to have legaling a. We have breaking news with the aptly named mother of all bombs were sent to wall street. Kayla is standing by. Reporter melissa, the president is wheels up on air force one headed to maralago hours halfthe white house dropped the mother of all bombs for the first time in afghanistan. According to department of defense, it was dropped at 7 32 p. M. Local time from a u. S. Airplane in northeast afghanistan. Just about two hours from kabul. It targeted isis tunnel complex of the set devices that operates in pakistan and afghanistan, but not the headquarters for that group, according to nbc News Pentagon unit. Nbc news says it took place in an isolated area far from civilians according to two military officials, general John Nicholson call at this time right munition for the mission that the u. S. Was carrying out. General nicholson was said to have the authority to actually authorize that strike. Critics have raised questions about exactly how powerful, how deeply the force would have gone into the ground and whether it would have destroyed the isis tunnels it was seeking out. Earlier this afternoon, the president called it a successful mission. We have the greatest military in the world. Theyre done their job, as usual. So we have given them total authorization. Thats what they are doing. Frankly, thats why they have been so successful lately. If you look at whats happened over the last eight weeks and compare that really over the last eight years, will you see there is a tremendous difference. A tremendous difference. So we have incredible leaders in the military, we have incredible military. We are very proud of them. And this was another very, very successful mission. Now the u. S. Military was tested today with a misfiring air strooic in syria that killed 18 members of u. S. Backed forces. But it has been an eventful week for the burgeoning Foreign Policy of the trump administration, relations tested with china, north korea, russia, nato. Last thursday, you remember, you had the first u. S. Direct assaults and today the largest nonnuclear bomb ever used in combat strapped in afghanistan. Global tensions hitting stocks today, sending the dow and the s p to their lowest level, now well below the 50day moving averages, ending at the dead lows of the day t. Trump trade getting what kind. Industrials down 2 morris. Materials down 2 pin 5 t. Big losers, the bank stocks, down nearly 3 . Even a Big Bank Earnings this morning failing to impress investors, j. P. Morgan, wells fargo all lower. Trump is getting more hawkish on the geopolitical front. Are they telling investors to pull the rip cord on the trump rally. Guy . It seems its getting interesting. The only thing predictable about President Trump is his unpredictability. Hes turned course 180 on many of the things hes said. To answer your questions, transports closed below 160. First time in quite some time, critical level. The good news is the vix was basically unchanged. But Bank Earnings were good. I thought pacific bank was gold. Goldman has to hold 220. Dont discount for a minute that were off tomorrow, some of the selling today could have been exacerbated be i the fact that next week is tax day. Maybe people selling some stocks to waste capital to pay their tacks. I dont know, im just throwing that out. Well, its a long weekend, there is no reason to hold the risk you want to, it broke down technically, closed below 50 for the First Time Since september. Think about whats going on with trump right now. Think about where this guy is getting fuel for his next move. One place hes getting compliments and accolades is when hes fired bombs. Frankly, as we get into a more tender geopolitical situation globally. This is a case going into a long weekend, why would you need to take more risks when the mark versus broken down technically. We have broken down every sector. Everywhere you look, we havent gotten into french elections, a week from now, we will be on the eve of something that could be transformative for the european union. Looking where bombs are, very disturbing ppi trends globally, which tells you the inflation trade for now is on pause. Are you feeling more cautious about the markets today versus the beginning of the week . I felt more cautious the second we we heard about this bomb being blocked. Quite frankly, the mother of all bombs. The banks were down. Then they started to rally back up. We were in positive territory when we started the halftime report. As soon as we we heard anything about these bombs being dropped the markets started to get the selloff. People started getting less comfortable with the banks, when you look at the trading volumes, the trading revenue the banks put up. Citi, 19 . When you look over at j. P. Morgan up 17 . These numbers were impressive. I think the banks delivered just like we hoped they would. The volatility we talked about. Monday it started to jump about 10 . Tuesday, wednesday, today, we started seeing it near 16. I think tim has it right, the idea that bombing isis is a popular thing makes a lot of sense, especially when your legislative agenda is really in jammables. It has access, when we come out of this in april. We will get to this budget showdown on april 28th. So thats what im saying. Tongue in cheek. We have a situation where, you know, every major asset is showing a good volatility over the next few months. The s p is down 3 from an all time high. Its orderly, et gets bought. Its got a bib. We dont, i mean, listen. Weve had a couple bouts of volatility over the last year. We had q12016. I think investors have forgotten what it means to be fearful. There are people out there that thought it was the fundamentals in the economy as opposed to hope. I would have been one of those people. Granted its early in earnings season. We got the first glimpse of the banks that show decent fundamental also. They gave us exactly what we thought, right, a slow down in loan. We saw pick up in trading. Revenues were good. The margins were right. And yet it wasnt good enough, so does that tell us the fundamentals arent what is driving this route . No, i think first of all, you need to see, the rest of the earningsen in to follow through. There is a lot questions about the global economy. We had a nice go chart yourself a couple nights ago. Yeah. We both got to a similar place, the uptrend is in fact. I actually think j. P. Morgan gave everything you needed to nibble that stock a. Break of 84 means that stock xould be at 76. So people who wanted it by the banks were fawning all over themself, fawning all over banks, should be tuning in and buying banks here. I think citi bank gave you more than j. P. Morgan. I thought the net interest margins were okay. Their tangible book is 65. 94. So that is a bank that still is trading below the tangible book as opposed to j. P. Morgan, which probably deserves to be richer. Would you buy on these . I think citi you can buy, j. P. Morgan have you as to watch. They will say that to all of you . Look. I tell you why, everything that went well to the banks in q1 was backward looking. It had to do with this idea that this new equation would come, wait a second. Kind of. Okay. Activity picked up dramatically in all banks. Rates rise, we saw Consumer Confidence go higher we saw Interest Rate go higher. There were things getting in place for this inflation trade. For this new program agenda. None of its happening. Hold on a second, dan, first of all. We got two fed hikes, it has nothing to do with trump. The Fourth Quarter had in ug to do with trump. The facts that theyre saying Better Mortgage business started nine or 12 months ago. The fact that banks have comps that are easy and banks have Balance SheetsGetting Better for eight years. Nothing happened. J. P. Morgan. Everyone says their growth wasnt there. How about the growth year over year being up 9 , . Its a really interesting. So sequentially it was down . And before that . And year over year, it was up 17 and the prior q1. So we go back and forth on this sort of stuff. You cannot argue that something that is a result of the elections, let me finish. You are the whole market. Banks are not. Okay. Banks, you are totally wrong on that. Banks only got going at the election. Banks have been 234r59 for eight years. You think object governor tur ril lo resigning, this was the watchdog for the banks and basically worked for the feds. He resigned. You dont need deregulation. You have already changed the environment. Have you already changed the environment. I think the reason the banks have fought performed well is because of this consolidation phase after that big huge run to the upside, right . There will be some correction. Some. And some consol dag. I think lee cooper said it best, you know what, you have to go all the way through summer before we see the move go back up in a bullish manner, which is why the really smart money is using this higher volatility to create, buy rights and use the options. Is that what you are doing . Can you effectively get more banks today . I did, in terms of the options, we saw huge calling, out in may, very big. I think citi bank in the next four weeks goes higher. Our next guest is saying buy the banks right now. A policy analyst, exam markets, he joins us now. Ed, giving your title. You say to buy the banks because of potential policy moves, correct . What do you see coming . Yes, absolutely. I think the reason you boo i the banks is threefold, kind of what is going on at the fed. What is happening with regulation overall. What will happen with tax cut. I think with tax cut the loan, if we get a tax package by the end of the year, you absolutely dont want to be short the banks, you really want to be over kind of weight the banks at this point. Because the earnings of the banks are going to be super charged if we get the tax cut i think we will get. So could you have made all these arguments december 31stt . Im just asking, the trade turned south this year. So im wondering why are these three items going to be catalyst at this point . Is there anything incrementally that makes it more positive these three things will be factors to the upside . Yeah, december 31st. What we would have said is absolutely everything is in play, obviously, not everything is going to happen. If you want to talk about timing, expect it takes longer. Keeping an eye on the prize. When i talk to the folks in d. C. , they talk about tax reform him one of the openings that might be on the table i think is really interesting is maybe a straight cut to 15 on this corporate level. That itself not factored in at all in any client i talked to. The reason why they think they might want to go to a straight cut to 15 is because all of the reform that youd want to do in the ryan better way plan. You dont have to do it at this point. You dont have to change in deductibility. You dont have to worry about inversion, or repatriatiation the economic incentives have changed at a rate of 15 , rather than 25 and you have to go through this massive process of winners and losers and with a thin majority in the senate, that gets tough. Sometimes in d. C. The easiest thing to do is the simplest thing to explain. If it go es to 15 , you want to own the banks. Thanks. Also, i think we get back too where should these banks be traded. A big debate and everywhere banks trade at a price to broker. Whatever regression you want to look at in 2015 when banks, arguably trade at a much higher multiple. Can we get back there . Theyre lean nighting machines, are banks built for speed right now . Thats where i look at the regulation and trilo leading the most financed since alexander hamilton, in his going away speech, he talked about all these things the feds should deregulate. That will add to earnings, tax reform, so when we talk about multiples, i want to know what it is before we have that conversation. If this goes through, which i see it going through, that e goes up. These multiples are low. 15 , when does it happen by . Whats your time frame . By year end. By year end . So not only aggressive on the cut, aggressive on the time line . Yeah. Okay. And great authenticity. Thank you. Ed mills, fbr. If that is the case, thats pretty compelling for the markets overall. Do you think its the case . I think its, yeah, i think its more likely the case than that. Hows that . In this environment, there is no way to gauge what is going to happen. If you had to bet on it. On these levels the chart that tim and dan put up. Tuesday. Go chart yourself trend. They talk about exactly how they said. So you have an opportunity to buy the financials against that upward trend mark. My only point is exactly what he is saying. Buy if have you all this stuff. The economy continuing to progress, few have Corporate Tax cut, then i would agree with that, especially after youve had a 10 pullback in the xlf. Im not optimistic this will all happen. What did the president say yesterday. We are doing it first. Bigger tax cuts. Agreed. I dont know. He has a civil war in his own party. He has democrats that dont want to work with him. He will force the democrats by not paying these subsidies, affecting the most vulnerable. I mean, im telling you, thats not going to get the democrats to the table. Think about banks relative to the s p in terms of valuations that dont require all kind of things you are talking about. I dont believe we will get half this stuff done. I dont think we will get a quarter done. I stayed and i didnt buy, but by not selling, i take the trade. Are you comfy if the trade is so low . Thats what im asking, they overshot the upside. I dont think they overshot. I do think its a healthy pull back. I think people, there was so much of the excitement about the trump trade and everything else, obviously, that was a part of what it is. I still look at the fundamental case we are looking at right now. One of the things i pushed with j. P. Morgan was the idea of how much stock they brought back. It was unbelievable numbers. 25. 9 billion of stock. How about the fact that he said whether its a one times or two times tangible book, they are a buyer of their own stock. Thats the put in a j. P. Morgan right now in my opinion. Coming up, the passenger forcibly removed from the United Airlines flight in a legal battle. The details on the story that captivated the internet this week. Stocks are soaring, elon mufx tweets more vehicles. We will bring you those details next. Netflix gearing up for earnings, stocks are up more than 15 this year, how traders are ahead in the big report. Much more fast money still ahead. Predictable. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. Welcome back to fast money. Shares of tesla soaring after a number of elon musk tweets. Musk tweeting tesla semi truck unveil, set for september. The theme has done amazing job, seriously next level. One user followed up asking when bigup trucks are available. Pickups unveil in 18 to 4 months. They may be a luch longer term for tesla, the market is most lucrative. It may be a threat to a ford and a gm. Guy. Without question. We didnt laugh, we made fun of the piper jaffre note earlier, basically, theyre asking everybody to take a major leap of faith. Thats effectively what you are doing. If you are buying the stocks. Thats what you are doing. There are reasons i believe to they can this leap of faith. I think its akin to what amazon was maybe ten or 12 year ago. So was that the right move then . Yes. How do you trade the stocks from here . I think it goes against the 280 level we saw popped out in 2014 and 2015. I think you stay long and let it ride the upside. Are they concerned about this other new model, it complicates production. Theyve had issues with every new model. How about the model breathe out. Its efficient and production. Does it make me a bad guy . I have attention deficit disorder. I look at these guys, were awful over the map. Clearly, a stock thats moving on Intrinsic Value on a lot of upside on the core and the periphery, yet were supposed to get excited about a pickup truck . Actually, yes. When you look at the big autos zone out there ford, gm, chevy, outside of gm, itself, gmc. Its amazing, in the u. S. , what is selling . The pickup truck. Why wouldnt they be aiming to get in from . Can they do it. So they will sell 6,000 of them. When are they going to do this . I tell you what, i would think they have as much excitement as that over the model 3. Ion why they wouldnt . I dont know if they can make one. I dont know if they can either. I think its important to remember. I think they delivered like 53,000 cars last year. So are you talking about the model s the model x the model 3, hopefully 400,000 of them and growing, then you have all this other stuff the semi trucks. It seems like a lot they can chew. It doesnt seem its something they can do on their own. I want to say one other thing, i have been skeptical for all the reasons, valuations, at tesla, guy has been talking a year, traileding against 180. Listen to what he just said, trade it against 280. Thats crazy. Thats uncharted. I understand, what im saying, look at how much its moved in a very short period of time. Months ago, he was saying trading. Are you complimenting him . Im complimenting him. Im saying, if you take a leap of faith of a 100 rally. Go chart yourself, this is no. Im also trying to stay, where this stock. Does the speed of the move concern you . Should that matter . I dont think the speed of the move has been all that crazy a move to be honest with you. The yeartodate. The chart t. Stock goes up. It moves. Theres other stocks that have had crazier moves than tesla. Listen, i get all the reasons to be negative. Nobody gets it better than me. I also understand whats going on here, i think the holders hold, the incremental sellers, they dont exist. Thats my view. Still ahead, United Airlines is not out of hot water yet after forcibly removing a passenger. Things are about to get worse. Thats next, im melissa lee. In the meantime, heres whats sells coming up on fast. When the money is coming your way, you dont ask any questions. Thats how netflix shareholders feel. How will earnings bring more questions than answers . We got the details. Plus. On a daily basis, i consume enough drugs since manhattan, long island and kwoens for a month. Okay. Thats a lot of drugs. But whats the next billion dollar drug about to hit the market . We got th