Market the major indices selling off today. Those losses accelerating into the close, falling about 1 with the nasdaq getting hit the hardest. Wasnt Just Technology energy and health care taking it on the chin. This as high er rates and soft data sends a chill lew investors. Simple question to want, with toks at one lows, is this the dip you buy or has something changed . You know what, i dont think something has changed dramatically about this rally. Weve talked to death about whats happened with Interest Rates. The only thing that was different today to raised an eye breaux boroureaux was the financials with rates where they are, you would have thought they held up. That was a warning signal, but i think there are some places you want to look in tech that you might want to start picking some stuff up here. To me, the only place its safe is in the banks i think you have a valuation fundamental and rates moving higher i said this ten days ago, the of international sentiments said things have to change and almost said youre behind the curve ever since then, rates have exploded, especially across europe banks to me, which have been around an enormous part of market pressure, you have seen the yield curve. Banks were cheap going into this, but right now, bleeding end of the credit. Are you getting slower fwrout . Thats okay for banks. 24. 3 is the 50Day Moving Average in the s p cash. Weve seen a month ago, two months, we banged around here for eight or nine days. Rally from there i think draghi is the only thing thats changed reflation havversus deflation not because of growth. You tell me whats happened about inflation thats changed the economic data. There hasnt been anything why the market spooked is it buying opportunity not for tech because trs no sign of inflation yet rates are rising rates are rising. Makes it difficult to be buying tech i think you want to be b a buyer still of financials, still of Energy Although tough day tr crude. It makes it tough to buy it. But its down 12 , xle xlf had made up ground all right. Thats a lot of ground baked in already. You could see plat flattening on the buy side i absolutely love the reaction of the banks today because all day long, they were virtually in the positive. Did lip late when you consider where the banks were a week ago and where they are now and they only barely pulled back maybe half a percent, i think that says a lot about what people think of the banks and where they mightwant to have their money right now. They were Still Holding on to some of these names. I i still like the space we see paper in there every day. Including today. O. Rotation, back half of the year when you have xlk up 13 or so and you have xlv up 16 with a lot of the regulation sort of out of the way and put on the back burner. What dupg the next 10 is going to be b . More in xle, xlf to a certain extent. The problem i have now is energy everybodys been trying to pick up and nobodys been right yet mark fibber was on today he said the only area you could look at is is naturcural gas it was more of a sooner or later, natural gas will perform. I have a question why do we have to assume theres another 10 in this market thats a question for tonight. Thats been the way thats where the rates coming we talked about the price you will pay for stocks given a certain level. As Interest Rates go up, you are less willing to pay those higher multiples, so that to me why ultimately, the higher rate rs a problem in the the market. How much higher can they go you tell me i dont think theyre stopping here we might get a pause but it wouldnt surprise me they were 3 . I definitely think something has changed. Basically, theyre saying it doesnt matter growth isnt strong were going to do what we have to do to normalize again, were still in uber accommodative Central Bank Policy thats a different thing equity markets havent lost Central Bank Put for seven or eight years. Youre telling me thats over . Im telling you a lot has changed. You dont think theres concern in the market that with everybody, four of the five largest Central Banks in the world essentially say iing thatw are quoing to ease up on monetary, that things arent a little different we know how thats going to come out why is there a 10 or perceived 10 higher why do we have to believe that if trump gets tax reform passed or if health care, big ifs, those are Game Changers thats probably im not betting 10 on policy hang on hang on. They have. They have. Are you betting 10 from here you could have said that when it was up two, three i didnt. No, but you could have but i didnt. I could say a lot of things that i dont. But i didnt youre here now. You said to buy technology. Thats the place in the market where lets talk about a trade versus investment, you look at something were going to talk about tesla later that has come down 20 in a week thats some place i want to look to pick something up for a trade. Which might last for another week or so the reason whey technology has outperformed so much is because weve been in a world where growth hasnt been as strong as people believe if you change the Interest Rate dynamic dramatically, theres no reason to Chase Technology here. And in fact not chasing it down 20 im not chasing anything i dont know what youre doing. Im buying. Trade im buying for a trade. Its 40 year to date you want momentum on your side come on you buy the ditches and momentum names. I end up agreeing with brian. You and i very rarely do this. You like financials and Technology Im looking at technology. I think you have to look at the 10 pullback just said he rarely agrees with you. If youve got something close, doesnt have to be close, i still liked them at those levels from a growth standpoint, we just got or cacles earnings it trades at the pe that it does i think apple is a tougher call here. Two quarters away from where youre going to get any real news on the stop before you get into the best season of the year we made it two weeks ago when they gave us those numbers youre betting 23, 24 times as youre getting with sales force 150 times, so there are stocks to play where where youre getting this, but to say techs down 5 , making lower lows in an environment where people with still where we are im talking more individual the individual names a lot of people are obviously inv invested passive investors which is a mistake. Sounds like you might be a little conscious my view if you look, these arent blow it out the roof numbers. Durable goods, the only spot youve seen it construction, but certain not telling you youre going to get a universal wage growth. Lets settle this with the charts, fellas off the charts with todd gordon of trading analysis. Com. Yeah, i put the bk trade on didnt even realize it to start, i have two long positions here, so ill lay it out for you to start though, heres the s p 500 and nasdaq nasdaq is in blue. S p in orange. We have a clear diversion. The nasdaq has not made new highs where the s p has. Weve seen a big underperformance with technology namely apple cant get off of the 140 area. I think though however, this unz performance of tech has completed, begun to come off those lows i put nvidia on today. Options are very expensive high volatility in the chips. I sold chips, which is a bullish position i think this underperformance is over if we then take a look at the s p 500, this will just go back about three months we can draw a line around the 2400 mark. We have not broken through this support level even though it felt scary today it was a Summer Market very volatile. Very thinful we have earnings coming up and nonforeign payroll. Feels a lot worse than it is i think the financials, went long Goldman Sachs, they look great. I dont see a stock market dropping significant through through this technical level with financials on the highs what do you see for rates, todd with rise rates, it might be difficult for the markets. Are you seeing a bounce lower for rate sns. Its been such a directional move higher in rates mostly lower and bond, but im not seeing response from the currency market and to kind of tie that in, if were getting rates lower to the rest of the world, i want to see a dollar to the bottom were just not seeing it so here we are we have Interest Rates moving higher a beautiful little pullback here it seems to be b this global uptick in rates. I think its just a little bit of a taper tantrum ahead of earnings and ploim, so its just a summer little move lower i think. All right todd, thank you. It was not an insignificant event for the markets. It was a, a period for markets in june of 2013 that took four months to play out steve talked about key levels of the market so did todd. We get to a place, close below 50 for the ninth time since leches cant tell me the market isnt under pressure it is and youve got to watch the 50Day Moving Average. I thought when we did the retracement, 2450 was the resistance area. We saw a bounce around that level. Youve got to watch the 50day if we dont make it out of this week, with that 50day holding, the markets going a decent chunk lower. What did you do today amd i talked ab bt the chips earlier and some of the performance, but mike ryan extremely active when you look at technology and get the numbers like we got today, unbelievable. Demand is there. These names ar spoesed to i want to move next to pete were buddies ton. Gl flipflop nd a bear suit and here you are welcome aboard i think amd looks great i like the action in nvidia today. In the tape like this. That was kind of nice. So those are the places that i think you want to look both currency plays both kryps toe currency plays. Ive been below for the second time since the lows of december i clicked some off again hes going to react first then later. I dont care this is the same thing as it was in other rate scares, but been probably the best performing class could go down when youre long something in this mark, you better have a good reason. Theres a lot of passive investing guys, but im long monosan monosanto, kb homes. Theres a housing recovery thats why im long those stocks square has a bunch of different level levers they could pull sq monosanto. 11 upside real quick on top, the ee measuring. Huge put buying in august. A put spread to the downside, so somebody b expegting maybe a little further coming up, could President Trump block one of the biggest media deals of the year . A juicy nugget in the New York Times has vinvestors nervous. Plus, the two hottest ipos of the wreer struggling to stay afloat could it be a warning sign for the rest of the big names . A special report and later, tesla e entering bear market territory. Down 20 , but gene money center says it model 3 is is about to change the world hell be here. Much more still ahead. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Welcome back weve got news alert on qualcomms fight with apple. Over the past few minutes, we have seen this news cross. Qualcomm hitting back at apple with a dual pronged approach, making a complaint to the International Trade commission, arguing for a ban on the importation of certain iphones this is going to be a subset of overall iphones, many of which do not have qualcomms Modem Technology in them a statement from qualcomm from executive Vice President and general counsel Don Rosenberg reads in part, the patents we are asserting represent six important technologies out of a portfolio of thousands each is vital to iphone functions. Apple continues to use qualcomms technology while refusing to pay for it apple on the other hand, theyve just rereleased a previous statement. Old dis but goodies, reiterating their illegal Business Practices are harming apple and the entire industry for years have been demanding a percentage of the total cost of our product. Interestingly though, this particular argument that qualcomm is crafting, seems to be framed specifically to combat this because this is not about the modem. Theyve asserts six patents that dont have to do with the modem. So apple and others cant say see, theyre using their power the fact their Technology Ideas were built into standards to try to bully uz. These arent standards they dont have to do with the mode el. Support supporting qualcomms argument we know how you like to squeeze widget suppliers for profits these are technologies that allow performance to be high while also con serving battery live, which we know consumers are interested in. So, whatst the impact if qualcomm wins on this . Well, this probably suspect going to begin to be heard until august and then its going to take more than a year to be heard, so no impact on the impending iphone release that we expect to see in september. And plus, when these bans even do go into effect, they tend to be maybe less fireworks and more whiz bank poppers. Weve seen scisco win a case against networks, but companies have some wiggle room to tweak their products and perhaps not be in violation of certain patents or settle before these rulings come down. Saying that in the past ten years, its om brought a case like this once before that was last year and it was settled before the itc made a determination, melissa all right, jon, thank you on the fight between qualcomm and apple. Presumably, if this is going to take that long to hear and figure out, then that hold left on qualcomms Balance Sheet with with revenues that it used to get from royalties from apple, which they said theyre no longer going to pay, which they arent going to pay, that will remain unfilled, so this really doesnt change the story of qualcomm and if you look apple, jons right. This is such a long, drawn out thing. T not really affecting either stock in any way, shape or form, really apple specifically is still sitting there and its, im look ing at it now, i think its trading flat theres no reaction now whatsoever i would love to see a reaction because whatever reaction woul probably be an overreaction and a buying opportunity for sure. Zpl i think on the year to date basis, qualcomms down apples up not necessarily having anything to do with this. The level now as i was sort of getting, i do think it has to do with it on a macro basis. A lot of other moving parts, but the market has picked apple, so if youre making me pick, which youre not. Would you rather . Apple because we know, always talks about it the level 14 t2. Apple is buying apple. Its a monster buy back. For qualcomm, how about the i think its the key in the driver and i dont think people are giving them the credit theyre going to close this deal i think the news is in the price and its a lot of bluster by both sides i think thai going to get this deal done. It expired apple needs qualcomm i know its hard for anyone to hear that. They can work with intel, other people and they will from one battle to another, President Trumps hatred for cnn could throw a wrench in the time warner deal. In an article, the New York Times reporting growing tensions between President Trump and cnn could put the 85 billion deal in jeopardy the piece calling trumps disdain for cnn a wild card as the Justice Department mulls the merger this comes as david faber reported today could close within 60 days this is unprecedented in term of the plitization of our media in this country and its frankly very scary, except for the fact that i think you have to give people the ability to see through what part of the media and both sides, i think theres a clear case to be made for somebody overreaching. Tink real issues is that they traded to levels on valuations that historically significantly higher because people are expecting them to move into higher territory immediate yarks con tenlt tent et scetera part of the reason why at t and verizon, they killed each other wireless and broad ban thats the biggest problem for these stocks now this deal i think will go through. It should be free and fair markets. It will impact that could evaporate quickly if you have unfair markets. I think if a deal goes through, its probably 6 to the deal price left in time warner im long monosanto 11 to the upside. Nxpi is already in thats 110, so not much juice left in the tank there but deal stocks are still there. Those are the fundamental reasons there. Do you see options activity that would int kate this deal to clo close . I was studying that the last little while no people seem to think this deal is is going to get done. All right still ahead, one o f f the big bank setting a winning streak today, well give you the name and trader later this hour heres what else is coming up on fast tesla shares are in free fall, but top ten says now the time to buy. Plus, the worst performing stocks h the dow have some of the biggest dividends. Its a trap maybe not. Because one of our traders sees o btedo sckn wnto hell give you the name when we return welcome back the dow dropping 158 points while nasdaq and s p fell about 1 heres whats coming up in the second half of the show. One dow stock snapped its longest winning streak in nearly three years. But traders to new highs with earnings next week the market is is finally showing signs of life, but the two most highures of the year have been disasters first, teslas terrible week continues. The automaker officially in bear market as of today phil has more on this developing story from chicago hi, phil you know, we thought at the beginning of this week it could be a big week especially with elon mus bk tweeting out were beginning production this week a will the of hoopla around those. Well, guess what, it has been anything but a great week for tesla shareholders, the stock is now down more than 20 in what people would call bear territory. Youre look at couple of other questions. One, Goldman Sachs saying are we seeing a plateau in the sales o f model s and x and then you had model 3, production begins tomorrow theres a lot of uncertainty about whether tesla will be able to meet the target as i mentioned, model 3 production, the first one, is skred scheduled to be finished tomorrow thats the first completed model 3 with delivery starting on july 28th, but this brings up a broader question b about production from here over the next 18 month frs tes louisiana ev demand grow as fast as forecast . Yes, they say they have well over 400,000 reservations for the model 3 and that they plan to make 500,000 vehicles in 2018, but keep in mind, we are looking at a market where theres more than a few people that are skeptical that the market will be as robust as what tesla has forecast, so as you look at this, one last thing to keep in mind, we have the folks at our partner in kensho crunch the numbers in terms of when tesla shares have fallen at least 15 in one day, what happens aftera wards its happened over the last couple of days, but its happened three times since tesla went public and in all three cases within a week, the stock rebounded on ovrnaverage going p more than 11 . I would not be surprised if we see a rebound from here for tesla. Maybe not back up to the heights we saw just eight days ago, but it does have a history of when it has a big sell off it starts to regain some of that momentum over time. Yeah. All right, phil, thank you from chicago you bought some tesla today. I did i didnt buy it today, but around 300ish, around these levels id be looking to buy. You have something thats down 20 . The markets decided the focus for this short period of time on deliveries i didnt own this stock because of the car Company Aspect of it. So at 300, ive got a good risk reward, id buy it that would be a trade for bounds probably at this point, a trade for a bounce id have to see how the news foled out. If for some period of time, if the next quarter, everybodys going to focus on car sale, you probably want to step away you know this is going to fold out people focus on that well, again, people forget also, the battery production was Second Quarter head wind the news that seems to fall out seems to at least confirm over and over again this company is not hitting any targets. That they earn bigger. I dont think it does they are manufacturing the first model 3 on schedule, they are going to start delivering. Just for pushback, they have confirmed things are on schedule july start. But youre going to get 500,000 cars by 2018 i dont know this is a company thats burning an incredible amount of cash. It seems like every time things get less in terms actual delivery, literal delivery, elon musk hes out there saying all kind of things we dont agree on why it sold off. I dont believe it had anything to do with that. That was a reason why everyone would b point to it f. You chart the xlk, their identical its trading down with tech, on rotation if that continues, it goes lower. Its down 13 in two days its a higher beta. Cant tell me a bad miss on Second Quarter also outperformed the nasdaq by a certain percentage. Because of the fact its a disrupter, its going trade more volatile it trades off on a larger percentage if you look at the hundred Day Moving Average is 306. 70 it flirted with that, broke it as long as it holds that level, that pop, that next resistance is 338 that is the 10 move all right, despite the terrible week, gene money center says the automakers upcoming model 3 could be its saving grace. Gene, good to have you hi, melissa this is a really interesting note because you compare the mod l 3 to tesla, to the iphone and apple. In the iphone completely revolutionized mobile computing. What does that mean for tesla because some might say the model 3 could revolutionize ev, but tesla may not be the beneficiary of that. Well, theyre a light year ahead and a distance ahead of the competitors. Volvo says theyre going to do ev doesnt mean anything theyve got so much work to do theyre a niche player. How about mercedes, audi, bmw gm all the other automakers thats a labor they have to deal with. They have this legacy supply chain thats been a gravy train for them the battery is a third piece, so tesla is is ewe neeblgly positioned to capitalize on this chip and i want to emphasize that the shift isnt just to ev. Its to autonomy elon musk has said every car that sold today with a Free Software upgrade will be b fully autonomous in two to three years. Its hard to believe, but compare that 13 differential in cost between a toyota camry and a car that will be electric and autonomous in two to three years. I think its a no brainer. This car has the potential to really ignite the shift away from traditional auto to this new paradigm meaning its 13 more costly. Correct, over a toyota camry thats correct and we were conservative on that, too, we didnt include federal and state tax credits because theyre going to be burning off in 2020. Theres another factor here. Tesla is going to have a fleet and allow you, if you want, to give you car back while youre at work during the day to even earn money so thats why this car is an important part of how the future of transportation is going to play you know what, the bears will say it sounds like youre drinking the koolaid. This is a cult stock like any other cult stock and youre crediting the company with things that are not part of the Business Model so how do you put the fact or the hope that owners will be b able to put their cars back into a fleet and earn money while theyre at work . How do you put that into a model here how do we know what tesla is worth . We dont have that in a model. In our total cost of ownership exercise that was at 13 difference thats something that is thats drinking the koolaid, totally agree. Whats the sub tans stance is, the Battery Technology is is a light year ahead thats a critical piece to it and second is whats happening around the workforce thats something thats hard for traditional auto now, it also mentioned is we move to autonomy this isnt drinking the koolaid every model a tesla has driven today is giving them more insights, so, i think thats the substance that makes us confidence this car is is going to be a Pivotal Moment i think the miles driven. People dont think about the data thats just accumulated and believe the data gives tesla, but going back to labor costs, doesnt it cost more money for tesla to buy to make a car than for gm or ford to make a car it does but the gm and thats going to dif wrennuate . But the gm and ford cars, theyre combustion engine, havent change nd the last 100 years and it does cost more. But if these other man fufacturs were going to build an electric car, its not dwoipg to cause 42,000 like a model 3. Its going to be 1 is 00,000, so yes, they are losing money. Thats a problem but if you believe in this paradigm shift, theyll make it up in scale over time. Thanks for joining us thank you gene money center, loop ventures yesterday, we had a robust discussion about tesla at the top of the show. 18 minutes we asked you guys out there whether or not at that moment in time, youd be more inclined to be long or short tesla here you have it 57 of you said youd be more inclined to be b short right thing to do for tonight. For today that was a good move how about for tomorrow pete, yesterday, you said youd be inclined to be b in tesla a total drawdown of 15 or 20 . Were there. Talking about 300 you were talking about 300. That makes sense i think what gene say ss the most important thing he was outstanding when he was covering apple for so many years. Now, hes out on his own i think the fact he called this a Software Company selling hardware is exactly correct, by the way. One of the things we discussed last night, its more about the gig factor there are angalysts who give tht a 50 billion valuation. The automobile part of this thing is not trading at a premium. Because of where they are trading now in terms of the market cap so i think theres plenty of opportunity going forward. Now, its all about deliveries in terms of what hes talking about where the hardware side ch he was focused and you had a guest on today theyre focuseded more ton deliveries, im not. Im more on the batteries. Batteries are hardware. Buy apple. Because apple is going to be in the autonomous car, too. Why can want you have both . Dont you think theres an extra torque that apple doesnt have probably have both ways though we get to a place where we assume no one else is going to compete in the space the maker o f the ford pinto is not going to compete. One other car is out there. What about the gm bolt that thing is u ugly a brandnew car. Who cares what it looks like . Really . Come on. That was the whole reason why tesla finish your thought, tim. Ford and gm while obviously having first sustained a pretty tough run for their stocks, are spending a lot of money to be in same part of the business. Its very clear that tesla is significantly ahead in terms of what theyre doing in autonomous, but you cant tell me that the competition, think about what happened in the Auto Industry with the japanese in the late 80s. Should you be trading at an absurd valuation for that when theyre not even that goes back to the automobile five different people get five different answers is that good or bad . I dont know i dont think its good because in fact, the reason are buying the stock, most people got to this point is because it was an auto company thats what im saying. Its being valued as a tech company. When you could get over air. Thats clear. Very clear because the Tech Technology is trading down. 2 . We already discussed this its a higher data we could go on forever. Still ahead, remember the biggest loser this is year still shelling out money to shareholders, but are these bargain buys really worth the risk more fast money still ahead. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Welcome back a news alert they say the recent cyber attack will shave off 3 off of o Second Quarter growth. Theyve beggiven the timing, despite our best efforts the ship and invoice during the last four days of our Second Quarter at june 27th global cyber attack that impacted several Companies Including mondelez sounds like this is something that pushes those orders into the next quarter until we think of this as a secular issue for a lot of people, i think for them, its a story of a stock that ran up on consolidation in the soector. They got way ahead of themselves the whole foods deal put a lot of pressure on them. The stock is 9 off of highs i wouldnt do anything to this i think thest a no toucher, but youre probably going to have other companies its a big number. To me, it was shocking when i heard the news, but remember, mares glides, wouldnt be able to ship a lot of goods here. Im surprised to see other companies dom out with this morning. Investors may find value in the indexs biggest laggards here to el us why is a man whos never a downer hi, dom. Well, melissa, i dont enjoy being the bearer of bad new, but some of the best dif depd stocks are some of the worst performers a big part of the story that many are an out of favor sector. You take verizon, those shares hit a 52week low today. Theyre down 18 so far in 2017. And the yield there now 5 ges been on a down trend over the last year. Hit a fresh 52week low today as well its down 15 year da it yields close to 4 there no surprise Energy Stocks like exxon and chef rorn on that list both have lost around 11 this year and of course, big blue, ibm still fighting to convince investors its turn around plans are working. Its down about 8 this year and yields around 4 as well now, if youre a Glass Half Full kind of person, maybe you look at this downward move in prices as a way to see about getting more attractive dividend yields. In fairness, lower prices did contribute to the fact many of these stocks are even higher up on that yield screen, so melissa, these are dow stocks with dividends generally safe, so will traders use dividend yields as trade or investment time k factor well save that whole con v conversation for a later time. Thank you buyer of any of those names steve. Yeah, i would buy exxon chevron. I would start nibble there the worst, i know every time you try to pick a bottom in the energy space, it winds up killing your portfolio, but i believe youre going start to see these names tick a little higher as you see by the performance dom gave us, its easy to lose that dividend. Youre down 8 for a 5 yield. Doesnt make sense if you have a play oil take a look at exxon most of the decline in exxon came during january and for the rest of the year, weve traded sideways with about 80, so if im buying something purely to get paid the dividend, i want something near its low for the year trading sideways and relatively lower risk so i like exxon, too general electric, pete. I know how would you think. I thought that was overdone overstated makes good points the reason i wasnt in it was management was frustrating me. They made the change that needed to happen. I understand there are some activists in there that dont have a big enough stake to really move the stock around most likely, but i think at least, we have seen the start of a change i look at one of the other maims up there ibm. Until theres a management change, i think its a difficult stock to own thats why you dont own ge who said it was a quick fix tim, nobody said there was a quick fix. Im saying the stock has been punished because of the management that was there. And at some point, the reward will be b there. This is not a trade. This will be an investment i think ge is a Great Company and have made some poorly timed bets into energy and chased emerging market, but when i think about ibm, this is a massive company. They had to reinvent themselves and its taken a long time no quick quick fix at ge wu i think the way they allocate capital could be different over the next couple of years ie, fewer buybacks they have some incredible assets they could sell off because i think part of the problem is that management got too wide theyre in everything. Theres nothing ge doesnt do it seems and thats mostly their problem. They dont do anything great shift gears, jpmorgan snapping its streak, but some are betting the banks run isnt done yechlt hey, mike. Reporting next week, normally jpmorgan moves about 2. 7 . Thats approximately what the straddle that expires next friday is implying for the stock next week. Theres still a lot of time to trade it, but we saw above average call activity today and what we were seeing was buyers of 94 strike calls, paying 1. 30 for those. Those are bullish bets going into the earnings number and actually, at this price, i think those are very reasonable price bets if youre inclined to make a bullish bet you like the bank do you like the jpmorgan b k bank its not horrible i prefer the regional banks just because i want to be away from the trade iing part of the markt just because weve had no fairly little volatility here, but the chart was great on jpmorgan. Its the best bank out there. They really are. And i know karen loves, jamie dimon thinks hes the best ceo out there and he might be, especially in the financial world, but i think most of these financial banks are the place you want to be when you look at where they trade, i still think theres opportunity there. I saw that paper mike was talking about today. Thats reason enough thank you, mike for more options action, check out the full show tomorrow 5 30 p. M. Eastern time mike must be getting hungry hes not been at the Chinese Restaurant at least a week coming up, call of disaster newly public blue apron tanking more than 8 today 19 from its wall street debut just last week is this casting an ominous cloud on the ipo market . Wevgoe t a special report more fast money coming up. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade the power of the nasdaq market. The power of 100 of the worlds top companies. The power of an etf. The power of qqq. The thinking we put in, clients get out. Power your clients portfolio at powershares. Com qqq. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Welcome back the number of ipos in 2017 were up because numbers may not be the whole story. Lets get to leslie at the New York Stock Exchange for more on this hey, melissa, thats right. Weve seen 91 companies debut on u. S. Exchanges this year, raising about 28 billion, thats more than double the 42 companies that went public during the first six month of the last year. That generated about 8 billion, so, yes. Those numbers show a rebound, but more important for the ipo market is is performance of recent ipos. Heres why investors who generate alpha from an ipo are more likely to participate in the next one. With the performance so far this year has been a bis mall on average, ipos return ed 10. 6 thats about one fifth the returns that ipos posted on average during the first six month of last year in fact, its the second worst performance going back to 1995 and day one has been the worst of any period that wasnt a recession. Some high profile ipos are among those that israelfizzled. Snap shares are only up 1. 8 and blue apron, the male Kit Delivery Service continues as you mex mentioned, to decline and is now down almost 20 pr its ipo price, which was well below its initial marketing range. This shouldnt happen in the current environment. The market has been rushing record highs for months and volatility is low. The key challenge in the ipo market that few people admit is that a lot of these socalled unicorns were mispriced in the private market then when they wanted a higher valuati valuation, investors werent willing to pay up. Thank you from the New York Stock Exchange i also feel like theres a certain amount of skepticism that met these two high profile ipos before they went public, this is very different from what we saw in the past and i think the market has to be higher. Snap is still above its price. That has been tremendous support. Blue u apron is a totally different beast. Thats in a world of hurt. You have to have the right nichey ipo, so i wouldnt make blanket statements, but if the market finds its sea legs, ipos come back. What do you think, pete blue apron, theyre going up against amazon, at the very beginning, with the deacceleration of what theyve been seeing and who are they going into the ipo. Really difficult is it a coincidence, down 20 sin since guys shrimp dish on this show needed a little salt he did a great job hes great. Looks good. So, the other part of this is they talked about the private, guy should stay away from both ipos look like the grim reaper in the stock. The other part of this is the private market is different than it used to be. You have fidelities of the world going in there and buying before the ipo, so theyre no longer buying on the ipo and theyre the supportive after, so things have changed there as well in terms of these ipos, id be a seller coming up, pete says one of the fang stocks is turning around final trade, next. Final trade. Google. Avis budget really like the action in nvidia be defensive. Iyt valuations and a better chart. Thanks so much for watching see you back here tomorrow at 5 00, 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 im just trying to save you some money. Thats my job. Not just to entertain you, but to educate you call me, or tweet me jimcramer. Market can be a brutal task master when you own stocks, you need to be worried eve
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