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tv   Fast Money  CNBC  July 15, 2019 5:00pm-6:00pm EDT

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new high it's always the way it is. the big tech stuff is interesting. the peter thiel comments had no effect on alphabet watch to see if there's any stock reaction the banks, citi's the most loved big bank by the analysts and maybe that was a headwind to its performance today. >> it was up 37%. >> coming into today's results we're out of time. that does it for "closing bell." fast money starts right now. overlooking new york city ice times square, traders on the desk are carter worth, brian kelly, steve gra sew and guy ada adami. stocks at record highs he'll be here to explain why health care and energy could be your best bets plus, check out shares of jp hunt, the trucking stock soaring on earnings release moments ago. what it means for the transports as we bring you all the latest headlines. we start off with a big earnings report, citigroup kicking things off ahead of names like jpmorgan and goldman
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sachs. we've got tech giants, and microsoft, plus dough laggard united health. do you trade or fade these names going into the earnings report we thought we'd kick off monday strong with a game of trade it or fade it. >> monday, right out of the bat. >> right out of the gate netflix, guy adami, trade it or fade it? >> trade it, see that, you thought i was going to quiver. i think we've been steadfast on this my concern prior to the last couple of days, here's a stock that's gone from 250 to 380 in a straight line. the selloff the last couple of days has me somewhat encouraged. people are taking profits into the quarter. i think it's wrong i think their international net adds will continue to dominate and impress people all the competition talk two or three years away, the stranger things which i've never seen, apparently everybody is watching now. i think the franchise is strong. yes, they have a debt problem. they have a huge mote. i think you buy netflix.
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>> you know what, i'm actually right with you >> huh >> yeah. were you concerned about the fact that it ran up? it only ran up for the top of the range we've seen for the last year. now we're in the middle of the range. i think you could actually get a bit of a reversal the one thing i like about netflix, a lot of investors out there thinking we might have a recession sometime in the next 12 or 18 months. what's the last thing you're going to cancel besides your phone? your netflix subscription most likely plenty of other things go before that. >> i'll go hungry before i cancel netflix. >> if i had this dog hunt as the expression goes, meaning it's been sideways. route of performance is one of the message robust factors when looking at getting returns in a portfolio, the relative performance, the relative strength is disastrous. >> what about the chance for a breakout >> you'll obviously have to be this new -- >> carter to your point it
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stopped on its 100 day moving average which is 36215 that to me looks a little bit encouraging if it stops going down and doesn't breakthrough to the other side, i think you have the ability -- >> what does that mean in this game >> trade it. >> that would be green, trade it >> i'm a fade it >> three to one. >> how come he didn't get the buzz when he said fade it? >> i don't think he actually -- >> he just said it right now >> there you go. this is redemption for carter here this is his turn microsoft, all-time high today, trade it or fade it? >> just as we were sort of hearing earlier is that a good thing or a bad thing, right, so the bull will say hey, what's not to like and the bear would say well, great, how much is left this is the most bullet proof stock there is in terms of its risk adjusted returns, the limited drawdowns. i think it is a fade it because it's too good. >> whoa. >> wow >> i thought he was going to trade it >> i would have guessed after
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the bullet proof. >> it's better -- you guys do the fade or trade right away, and then it's like we don't need to hear. >> that's why he -- >> i zoned out >> pantheon. >> what do you say >> i'm actually a -- what am i i trade it that's when you buy it and it's primarily for everything that carter didn't like, right? it's in an up trend, it's got limited drawdowns. you've got very few reasons to sell this except for a major market selloff if you're thinking that we're still going higher, i think you can probably be in microsoft and be all right. >> or you can think about i'm going to say on this one, i would trade it, but the bear case, so i established that i would be a buyer of this, but the bear case is valuation and lower margins on where they're trying to get to, the cloud business lower margin that to me is the headwind. >> today is monday as you mentioned earlier. >> it is monday. >> july 15th, so they report on the 18th so that's thursday, so it's like haiku, i got to do it on my
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fingers. i'm trying to play the game correctly. i think you trade it into earnings, pull the rip cord into earnings and then fade it. why is that? everybody's got this 150 price target, close to 139. >> so like the day of the reports you sell >> pull the rip cord the other reason to sell it, bk begins with a v, valuation >> what are they going to say in earnings that's going to make him sell off >> i don't necessarily think it's what they're going to say. >> just not going to be good enough. >> it's not going to be good enough. >> when did this become a trillion dollars company >> we're all focused on apple. we're all focused on amazon. this one skates right past everyone >> it got dissed by us. >> we didn't do a whole show on it there was no trillion dollar market cap ringing the bell. there was no thing we do for bitcoin in the lower right, that whole thing. >> nathan, though, you know dan, maga, that's the m in maga. >> but i think dan would say faded at this point. >> he's not here, he would hate it.
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>> anyway, with can we move on unh, brian kelly fade it or trade it i'm going to take a page out of carter's book and not tell you what i think. >> because you don't remember. >> take the camera off me while i look at it i'm looking at this in the beginning of the month the stock was $240, right? we've now moved up almost 30 points well over 10% move here any asset that moves up that much and particularly a stock when the volatility is relatively low to that, to me that's a fade. i'll fade it this is where you sell this one, not necessarily anything against the company, but it's just the price action. >> see this is exactly what i want netflix to do this has been dormant because it's come to life, it's a trade it, meaning it's showing us now. >> really, after a 10% move? >> that's nothing. >> the point is this was lackluster, not performing, wasting time, and it's coming to life, the hope for netflix is what makes it more appealing
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momentum. >> potato potato. >> often we get off the desk and move over to the smart board and do the power pitch i know for a fact categorically this is one we've power pitched. it troughed valuation around 220 at 13 times, historically low for them their norm -- they already said trade it before i said trade it. >> because you power pitched it. >> i do trade it because there's at least an 18 multiple on this environment if not higher. i'm with carter worth. i've been steadfast. i say trade it, mel. >> i want to go to jpmorgan now. >> think about jpmorgan up 16% year-to-date but what was the catalyst for financials, regulation cuts and cuts in taxes right? >> mm-hmm. >> that to me -- that story's over. >> how about a steepening yield curve at this point? >> is that going to happen >> i don't know. >> i'm not sure it's going to happen either. if you're going to buy a financial, you have a diversi diversified financial with jpmorgan i would still be a fader. >> i'm a fader as well for many of the same reasons, right
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let's look at what happened with citigroup. they had some okay ernarnings b trading was down that's going to hurt jpmorgan. they're not maybe as globally diversified potentially. it's just to me already run up why am i getting involved in this i'm a fader. >> hate it you must really hate it because you said it straight out >> yeah, i know. this is best in class, but it's priced accordingly there's almost two times book, the truth is it's not going to deliver any results. >> all right, we got a bonus round here. >> i love it. >> it's like the jonas brothers had like three of them, and then there's a young one. >> not really but anyway our bonus round is chewy, up 50% since its ipo. >> remember peter linynch who si buy what you know? bk and more importantly mrs. bk spends a lot of money on chewy you've got to buy what you know. you take a look at the stock
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it pretty much traded sideways i think any of the bad news, any of the weak hands have been shaken out of this, and now you've got repeat customers, subscription based type of things and right after netflix or actually right before netflix, maybe after, i'm not sure which one, it's not like in a recession you're going to stop feeding your dog. >> do you care who you buy your stuff from >> if you're a prime member why wouldn't you buy the stuff on amazon >> they're a little cheaper. >> they're cheaper than amazon >> yeah. >> and you like the name. >> i do like the name. >> you're a dog person. >> i have three dogs. >> right >> that's amazing, right as many kids as i have dogs. i think i'm somewhat of an expert in both and i'm sort of in the bk camp i understand amazon can disrupt them you know what they have, they have customer service that's unparalleled they write you little notes about your dog >> >> i think they're going to surprise people on the upside. >> there you go.
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i like that. >> fade it >> for me i would actually -- this is the one company that i wish had a brick and mortar. if you can go in there that separates it from an amazon. if you can get professionalism and understand what the hell is going on with your dog when he throws up on your rug. >> it's not a vet. >> that's a different -- >> or they make it up, right i've seen you do that on air >> you take the pick >> all right, we mentioned citigroup kicked off earnings season for the financials on a high note kind of, decent results but the chart action wasn't that great. chart master says if you're looking for bang for your buck, better beware of big banks tell us why. >> this is sort of a dormant area of the market, an important area of the market, it's the life blood of the system in a way, but it's just not -- it's not working. let's look at a couple of charts i started this chart, comparative chart, s&p versus the bank index, from the
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absolute peak of the 2007 market top, october 11th, 2007. we have a financial crisis plunge and then the entire decade of recovery, and what we know and there's no way around this, yes, that you're still down if you own banks in aggregate, negative, versus of course the return for the s&p. let's do this a different way. let's put the bkx on top and now look at its relative performance. here we have our plunge. here we have this recovery, again, basically a little bit down what's so important is it's just been -- here's your wipeout, and you've never really gotten any better, and that's to some extent dilution. the truth is now what? is it working? let's go a little tighter. this is the more important thing, the here and now. this is the presidential election this is the trump bump, and this is the big move which you see on an absolute because and
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relative, but what we know after that, of course, is we've undone the entire election, so all the tax cuts and all of the regulatory relief and all of this, and yet we're below where we were after those very sort of good developments for this area. so now what? because you don't have those tail winds anymore let's draw some lines on this same chart a couple different ways two things i would note is after the trump bump, you make this high, but you don't make a relative high, right so you get the big move and the big move absolutely relative but even as it followed through, the relative started to stall. let's move on and do it another way. same thing and here's the -- really the problem when banks go down, they go down more than the market when banks go up unfortunately they go down more than the market there's just nothing here and i don't know what fixes that let's look at the chart of the
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bkx itself it's a failed -- there's no way around there -- head and shoulders bottom that fail was that some sort of double shoulder, something out of a strange museum, no, something's wrong with it, yes, and then here are the lines. so working into an apacx you ca see them they're very clear, deadly clear, and what we know which is likely when you get into the apex you get a big move. bulls believe of course it's this i think it's opposite. i think the interest rate environment is not going to help them i think the operating environment, equities, trading, banking and i'd rather be underweight or short banks. >> i have a question, carter, when you get to that wedge point, you seem to bring in fundamental factors, is that the only way to then determine which direction that wedge will break out into >> you can what's so interesting is we're getting into earnings and what was so telling about the action today, citigroup some people thought the number was good, some didn't. it was up initially, then it faded, then it recovered it shows what a debate it is
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that's the nature when you work into a period of equilibrium this will be resolved. it will likely be dynamic. at an operating level at an interest rate regime, this is not the place to be. >> carter's going to walk over you can ask a question >> very talented very talented. >> so carter, what i'm curious about is i was looking at the regional banks today versus kind of the bigger cap, let's call it bkx. can you get any kind of technical signal out of looking at the regionals for the larger cap space? >> i think you can so there's a case we made, and that was the case being made for the last two years that the regionals didn't care about currency, right? and they didn't care about slumping europe, and they didn't care about prospective problems in the middle east or china or north korea. that's the problem the regionals which should have been doing so well with a good economy have not done well, ask
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that's a testament to relative strength, how poor it's been i think the tell there is that the big banks will ultimately just be as dull as the regionals have been. >> and how about the xlf when i look at that i keep it really simple. i go back to june of 2007, they topped out at 3097 in the xlf. you go to the 18, they top out at 3032. that to me is a pretty stark realization that maybe the banks are realistically out of gas, they're out of numbers and these multinationals or these big name banks, high cap stocks are done. >> well, and this is nothing to do with charts you all know this, they were regulated to a point where they can't have the roe's that they had. they were trading three times book, but things were being transacted, that's never going to happen again as long as they're regulated the way they are. it's just not a place for hoffa if one is choosing between banks and other parts of the market.
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>> within banks insurers -- >> insurers particularly, but travelers and property casualty and life health names are the areas to be or american express. >> coming up, check out shares of jb hunt after reporting shares a moment a, the stock su more than 6%. energy and health care the worst performing sectors this year one top strategist says get ready for the ultimate turn around, and later amazon prime kicking off its two-day shopping bonan bonanza. it's not the only retailer that's benefitting from this bump we'll tell you who the other big winners could be we're live from times square, new york city, much more "fast money" right after this.
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we've got an earnings alert on jb hunt, frank holland back at headquarters. >> watching the stock right now, shares up more than 6% kind of surprising spike here after a big miss on eps and revenues that were in line with estimates. citi note that just came out said the company would have been in line with estimates if not for a one-time charge perhaps explaining why we're seeing this kind of positive movement. still, the numbers weren't that great. its most profitable segment,
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intermodal trucks to trains missing estimates as well. a 5% drop in its intercontinental business. overall with the biggest increase in its eastern network, a soft freight environment daily truck rates are falling about 50% year-over-year june to june while capacity has increased. one bright spot for the intermodal business revenue per carload did increase the biggest growth is in its dedicated trucking business where companies outsource their shipping logistics that increased double-digits the company has its earnings call at 5:30 eastern time. analysts i spoke with said they're expecting to get insight on the inter modal and when the company will expect to see growth and commentary on pricing. the decline in truck rates in 2019 putting a lot of pressure on that business also more insight on its online brokerage business called jb hunt 360 david vernon from bernstein says hooegs hoping to get transparency as to how much the company is spending, especially as bigger players are getting
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into the space the earnings release did not include forward guidance they want to know what the company's projecting for the full year after two quarters of missing on eps and as the industry overall is facing a freight recession. a lot of pressure on trucking. jb hunt shares up more than 6% >> all right, frank, thanks. frank holland back at headquarters to elaborate on that citi note frank was talking about, a lot of the consensus estimates did not include the impact of that charge, and when citi actually accounted for that, they said that it came in, the eps came in $0.03 ahead of consensus and core ebit beat city charges. that's why we're seeing the shares of 6%. >> the expectations were really low here that's why you're seeing such a bump up. what i think is interesting, it will be interesting for the rest of the week and particularly tomorrow is that intermodal number that was down. people have talked about about that quote unquote freight recession. tomorrow csx, they have earnings after the close. jb hunt also talked about their
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eastern part of the states operations being somewhat weak that's where csx operates as well that's going to be very key for tomorrow. >> right, the intermodal revenue miss, this is a miss, and that's half their revenue for this quarter, and i think this is a classic relief rally i think it wasn't as disastrous as the industry would suggest is it should have been. i think they're going to rally i wouldn't be surprised to see couple of downgrades tomorrow. >> if you look at the short outstanding interest, it never gets much more than 6% and gets as low as 2. coming into this it's at or near the high of the range. >> 5% right now. >> right >> at this point everything everyone said, power of low expectations but if i wanted to pick my poison in transports would you rather, i'm going to go delta i'm going to go with the airlines go with the performers versus the under performers who has the exposure and who doesn't have the exposure to the max 737 max and delta doesn't
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have the exposure. that's the outperformer. >> i'm raising my hand because steve just -- it's a brilliance in what -- i mean, he says many brilliant things but you know, a great game of would you rather, get two miserable companies like a g and a fedex and instead of would you rather, it's pick your poison >> all right, the inaugural episode, pick your poison right now, ge or fedex >> ge. i wasn't prepared for this segment, but if you're making me pick my poison. >> you picked the two poisons. they're your poisons for more on jb hunt and what it means for earnings seasons head to julian emanuel says the best way to catch this record rally is to buy the laggards much more "fast money" right after this quickre bak for your heart...
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welcome back to "fast money. check out energy getting hit today, let's get to bob pisani down at the new york stock exchange with more on this. >> still a number of laggards despite 20% gains in the s&p the slower global economy weighed heavily on energy names at the end of last year. even tho many have recovered, they're still lagging the overall market the biggest declines were seen in the big service companies, enskoe, noble, national oil well, halliburton all still down for the year exploration companies like marathon, petroleum and apache they didn't fair much better
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the only reason the whole sector isn't deeper in the red is that a few of the largest cap names like exxon and chevron they eked out modest gains but they're still below the overall market gains. health care is also lagging due to declines in big bio teches like abbvie, biogen, and the medicare for all debate, remember that one, that had a negative impact on health care providers like cvs health, cigna, centene and humana. big pharma is willilagging, thee declines for mylan, bristol-myers squibb thank you very much. our next guest says these lagging sectors are about to turn around. let's bring in julian emanuel. always great to see you. >> great to be here. >> is it your general philosophy a market like this you want to be in the laggards or is there something about these sectors
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right now that's appealing to you? >> it is quite specific to where we are okay, first of all, i think we need to acknowledge this, at 3,000 both the longs and the shorts in this market are feeling somewhat uncomfortable, and so from where we sit, when you think about the next three months specifically and the tendency for markets to make trading tops in july, august, and as we saw last year september, what we really want to find is sort of this margin of safety on particularly with these companies, energy specifically has a number of companies in 100 days since march the 31st where earnings estimates have come in almost across the board these stocks have had their earnings estimates revised up, and yet they still continue to lag the s&p 500. so that to us is sort of an expectational edge, and we think those stocks can work. >> do you need to see oil prices move higher meaningfully in
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order for these stocks to work >> we don't think so, i think part of the whole story is they've moved meaningfully higher, the oil price over the last 30 to 45 days once we got through this whole notion, at least in the energy patch that whatever recession that the yield curve is pricing in or has been pricing in isn't likely to occur. i think we're seeing that borne out in the u.s. economic statistics that's also why in our view the fed is only going to cut twice over between now and the end of the year rather than 75 basis points as people expect, and that whole ratification of a stronger economy than expected is going to help energy shares >> how do you get comfortable with the political risk involved with health care >> in our view what's different between now and 2016, the last election cycle where health care got annihilated, is that you came into the election cycle with health care trading at a
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very large premium, both to its own history and to the market as a whole, and for the most part, you know, what we've seen is that element has been de-risked. you know, bob was just saying, these stocks are down. a lot of them have really been hit on these same concerns, and when we think about it politically, is there likely to be some sort of regulatory initiative in the next couple of years? no doubt, but a, it's in the price in our view, and b, it's not likely to happen before the election itself. >> julian, i understand there are individual names, each story is different, but thematically, laggards are laggards for a reason, and my pushback is always if a stock can't perform when the market's at an all-time high, when is it going to perform? is there any semblance of that, maybe they're laggards for a reason >> i think, you know, when you look at sort of the thematics of health care, again, it's the political risk that's been an issue, and to be fair, you go back and look at something like
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health care, what was the outperformer in the fourth quarter of last year health care, drastic out performer in a defensive tape. so from our point of view going back to this sort of discomfort that a lot of people are feeling at 3,000, that's potentially a place to hide. >> so julian, is it something where -- just to clarify for me, this sounds like it's a trade versus a long-term investment because that -- what's your time frame on both health care and energy how long out are we going? >> well, you know, when we look at it, we sort of think nertermf six months or so into year end you know, the reality of the market right now, particularly when we're buffeted by, you know, tweets and you know, economic releases overseas, and you know, strange things like negative interest rates in europe, which is something we don't think is actually sustainable, at 3,000 you need to think perhaps more
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opportunistically than, you know, super long-term. >> julian, thank you good to see you. julian emanuel carter braxton worth, i'm dying to know what was in the bubble over your head as julian was recommending these lagging sectors? >> we're going to talk about energy to some extent. energy right now as a percentage of the s&p was down to where it was in the dot com era was cisco was worth more than any company in the world it turned into a great buying opportunity for energy do you think energy can ever get back into the double-digits, 8, 10%, 12%, will it always be stuck at a new rated low level as a percentage of equities? >> it is unlikely to get to double-digits again, but think about it, you're at 5% now you move to 7% in a flat tape, that's 40% upside. we're not saying that that's the kind of scope, but what we're saying is it's in a space where disinterest has set in, you know, the obsession with electric vehicles and so on and
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so forth, but at the end of the day, there's consolidation going on, and there's capital moving in we think there's going to be more activity. >> you know, mel, we don't have -- as our viewers know, we're somewhat of a lawless society. >> fluid show. >> there's one hard and fast -- >> definitely. >> almost like a cardinal -- >> and even the guests are aware of this rule. >> when melissa good-byes the guest. >> no one else will ask a question. >> the guest is gone. >> did you see julian's face when carter tried to -- i don't know if i should answer this question >> the cane was yanking -- >> i was yanking you back. >> julian, thank you. >> jewulian emanuel. >> i just wanted to ask julian a questi question. [ laughter ] >> i think julian makes a good point here in that the energy stocks have not necessarily rallied as much as you would think they would have with the move in oil. my concern, though, is that if you have all these kind of political cross winds, and we
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have an s&p that turns lower than oil turns lower, i would have a very quick sell button on this one. >> still ahead, summer shopping season is on as prime kicks off its two-day shopping bonanza we'll tell you the other retailers that are benefitting from the online rush. plus, new york city is taking on delivery service grub hub. the councilman calling for the investigation into the company will be here to make his case. much more "fast money" right after this - stand up if you are first generation college student. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent, but it doesn't equally distribute opportunity, and paths are not always the same. - i'm so proud of you dad.
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welcome back to "fast money. amazon prime day kicking off this morning the e-commerce giant won't be the only one seeing strong deliveries ebay, best buy and macy's all running sales to compete these retailers are poised to have their best prime day yet thanks to a better understanding of how to convert online traffic. which retailers are best equipped to take on the amazon, guy? >> i can go off the board, right? >> sure. >> i know you mention add few names there. i'm going to give you two. one of them i'm going to give massive kudos to cbw if you look the at that, people shoot against it at valuation, close to 32 times forward earnings making an all time high today broke out over 250 membership is locked in.
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people are locked into costco. i mean, they might be shopping at amazon, but they're dle definitely going to costco home depot is amazon proof why do we know that? amazon tried to sort of make the foray into that world. didn't work out that well. i think home depot can go higher those are the two names i would select. >> can we get back on the board? >> those are retailers. >> i didn't say you did anything wrong. jeez. >> sounds like you picked your poison >> really. in terms of whether retailers can compete when they choose to try and compete? >> i think they can. playing by the rules of the game, i'll go back to the board. the one that i think that actually could do quite well is best buy in this environment it's got a couple of things going for it everybody is looking for a discount on electronics. similar to what grasso was saying in the beginning, you can go in and see it and touch it and feel it. that hasactually worked for that company i think if you can have that combo, people looking for those things and now people are so-called primed for these
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deems, then i think best buy does well. >> you know what would be helpful, if you actually showed the board so we know what we're picking. i remember the board. >> best buy, target, macy's walmart. >> first flush, walmart's probably the one that can compete the most with amazon year-to-date performance doesn't reflect that target's does. i would say target. >> a number of retail players might be ramping up their efforts to compete with amazon's biggest day of deals the retail etf might see its price get slashed. hey, mike. >> hi there, we were looking at xrt earlier today, and we noticed the put volume outpaced call volume by about five to one. i think the reason for that largely was a purchase of 1,400 of the september 42 puts those were trading for about a buck a buyer of those puts is betting the that xrt is going to fall below the 42 price target. that would represent a decline of 5% by september expiration.
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options are trading at essentially three-year lows. 17 17.4 implied volatility versus a 16 1/2 being the three-year low we've seen one last kudo we didn't give to cbw, walmart, which he obviously picked as a bullish bet in may, that rally add the 16% a job well done. >> carter, what do you say >> if anyone's got the muscle and the staying power to compete with amazon, obviously it has to go to walmart in terms of top contender. >> all right mike, you got your answer. thanks for the action, mike. mike coin san francisco. still ahead, delivery drama taking hold when the streets of new york has a city battled with grub hub, and a lawmaker serves up calls for an investigation of the delivery service will be here to make his case. treasury secretary taking aim at libra in a press conference our resident bitcoin baller llwi reveal what this could mean for the tech giant's crypto project.
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much more fast money still ahead. well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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welcome back to "fast money. new york's battle with grub heating up over the weekend with senate minority leader chuck
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schumer calling for greater oversight of the delivery app company. >> you cannot allow fake websites, and you cannot put a fee on the restaurants when the person who called grub hub never purchased anything at the restaurant and never got a delivery >> the senator was referring to fees charged to restaurants even when an order was never placed any crackdown a likely blow to grub which dominates the new york city delivery market with nearly 70% of market share estimated to be its largest slice of any u.s. metro area, and senator schumer not the only lawmaker serving up criticism. mark jonai is behind the calls for an antitrust investigation into grub and he joins us now. thank you so much for joining us, councilman. >> thank you for having me, melissa. >> what is the thrust of your complaint? there seems to be a lot of accusations whether it be just egregious charges made to these small businesses, these restaurants or this allegation of the fake websites that
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senator schumer was referring to >> well, all of it, melissa. you know, these mom and pop shops have an unfair disadvantage they're competing against billion dollar venture capital invested companies that are forced to sign contracts that may not be in plain language for them to understand the fee structure's up to 33% of the total charges, and we know that the percentage that their profits are 6 and 12% on every order there's a net loss to these small businesses >> yeah, there's an example here and i'm not sure if we have a graphic, but it's just a theoretical order from a restaurant the product total may be $41, but then the restaurant has to pay $8.20 in a marketing commission, $4.10 in a delivery commission and a processing fee of almost $2, so that really -- it does add up, so the total revenue is dented by about 11 bucks here what is the remedy to this, councilman an antitrust investigation
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implies that it's too big. it's too big of a market player. should it be broken up i mean, what's the solution? >> we're still meeting with all the stakeholders and trying to determine the best course of action, if any at this point we're still meeting with all the stakeholders from small businesses to the providers themselves we hope they'll do the right thing by refunding any fees that shouldn't have been charged to begin with and from there we're looking at the fee structure, the potential of an antitrust violation if one exists. we're basically meeting with all to determine what our next step should be. >> have you gotten calls from other council people in various other cities who are saying, hey, you know, what are you doing here, and how can we then follow on your coat tails? >> it should be to no one's surprise that new york is taking this lead. this is the first hearing in the country. this is going to involve city, state, and federal branches coming together to address this
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issue, but we hear it on the streets from our local stores, just recently i met with a small franchise. a very small burger joint that evaluated the bills over the last few years and found that there were charges of 16,000 that may be incorrect. that's mind boggling for a very small mom and pop shop this is happening on a very retail local micro business end, imagine what that means nationally. >> councilman, we're going to leave it there thank you so much for joining us we appreciate it >> thank you, melissa. >> mark gjonai of new york city. we reached out grub hub for comment, the company welcoming talks, let's trade this. this brings into question whether or not its business model will be in question, whether or not it can go forward with charging the commissions that it does to the degree that it does, and if it cannot, then what does that business model then look like >> we need to talk in the context of what's happened to
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the stock, i think, which is really important this was $150 stock that's been cut in half number one you look at valuation, it's not a ridiculous valuation given their growth rate number two now you have to ask yourself is all this bad news happening at once, and is that going to be a crescendo for the low? i happen to think it is. you also have the new york state alcohol and liquor authority coming after these guys. you have huge obviously competition, door dash and uber eats, all these places i'll never use but everybody else seems to at a certain point, you have to ask yourself, the grub hub business model potentially flawed might make sense, especially after the ridiculous selloff and the huge short interest into earnings in a couple of weeks. >> click on the chart. >> just to think about it, the stock is still at its december lows every equity in the world has rallied. >> still ahead, crypto in the cross hairs as steven mnuchin comes out strong against facebook's libra what he said that's got the crypto universe on edge. jim is taking a deep dive into
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earnings season, which names he thinks will outperform the street we're live with sdnaaq in times square, more "fast money" still square, more "fast money" still ahead. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, becaus*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. don't get mad. when ywith the dealershiparvana, you'over their high prices, worrying if you got a good deal. it's why we invented the new way to buy a car that's completely online, so you get the low price from the start. no expensive dealerships. no commissions. no pressure. only buying a car on your time knowing the low price you see on our site is the low price you'll get. in fact, this is how our customers have saved literally hundreds of millions of dollars with us versus dealerships. at carvana, we don't just say we're going to save you money,
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we save you money. here, hello! starts with -hi!mple... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ]
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wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. treasury secretary steven
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mnuchin holding a press conference earlier today talking about libra and crypto currency regulation he was asked extensively about his thoughts on libra. take a listen. >> jay powell and i meet we've talked about this extensively. there are these discussions going on, they will continue going on again, to the extent that facebook can do this correctly and can have a payment system, you know, correctly with proper aml, that's fine they got a lot of work to do to convince us to get to that place. >> aml referring to antimoney laundering of course his comments coming amid a wild month for bitcoin, which saw a huge rally which began when facebook unveiled libra. bitcoin jumping after mnuchin's comments is now back to 11,000 who does this all mean who better to turn to than our crypto bawle crypto baller, brian kelly. >> that's me hi a couple of take aways.
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number one this is good. we want bad actors out of this new asset class so we can flourish the way it should my take away for crypto investors, he also said there are a lot of ongoing investigations which there should be. i would expect some more negative headlines out there that actually might add a little bit of turbulence to the bitcoin press. i think taking away bitcoin in the crypto currencies, now let's go to libra's kind of payment system i think it's really unlikely that's going to launch anytime soon as mnuchin said, they've got a lot of work to do. they're willing to do it and good for facebook. they have the resource to do it. that's going to take some time for this to launch, and primarily it sounds to me it's a very -- it's a concern about big tech disrupting finance, rather than the technology itself, and in fact, there's a bill out there now in the congress. i don't think it will go very far, but it's talking about keep big tech out of finance, and so that is the sentiment down there against facebook, and that's the headwinds they're facing >> this all of course comes the
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day before david marcus, the head of ka libra, which is the libra effort at facebook goes to the hill and presents his case is this good or bad for facebook i mean, in the beginning it was -- >> good. >> -- touted it was great. we saw this huge run in facebook shares ignited by the launch or potential launch of libra. now what >> originally as you said it was good now i think it's another headwind where facebook doesn't need a headwind. it's sort of getting out of its own shadow and now it's put back in there if you look at a dovish fed, what's that meant for bitcoin, and what has it meant for gold, it was a positive for both of them and now we start to see bitcoin turn south and gold's still moving higher. buy gold off of this. >> up next, final trades
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welcome back to "fast money. vaping is a big business the global e-cigarette market estimated to be around -- two reasons this controversial habit has been spreading like wildfire >> unregulated digital marketing has become a free for all for the vaping industry.
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it's a practice that's come under fire from the fda. in 2018, cdc research showed that ten and a half million kids were exposed to e cig advertising through the internet >> you'll see every person try this flavor, it's better than the rest or this flavor's not very good. >> this is perhaps the most heated debate in the e-cigarette controversy. the appeal and availability of a seemingly endless array of flavors. while they may help adults quit their cigarette habits, all those sweet tastes around 7,000 of them, may actually be drawing new and underaged users into the world of nicotine addiction. >> many researchers say e-cigarettes are less harmful than regular cigarettes but they are by no means risk free. for much more tune in tonight at 10:00 p.m. eastern for the cnbc
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documentary vaporize, america's e-cigarette addiction. 10:00 p.m. eastern and pacific time time now for the final trade i was going to skip carter since he brought the guest back in >> oh. >> we'll go to carter first for the final trade. >> silver, slv, catch up with gold and bitcoin. >> brian kelly. >> i usually like those shiny things, for me i'll take a look at jpmorgan tomorrow morning you're going to have their earnings >> gold sell it. >> so guy mentioned the stock during the show, costco, and the membership renewal rate is 90% or above that is phenomenal i've been on conference calls with paul gallanti, the cfo, he's bullish, but that's expected i'm bullish, and i think that this story up 37% year-to-date still more room to climb. >> gold, silver rates shows -- >> the gold's good, silver.
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>> don't give me the face. >> biogen earnings in a couple weeks. >> you brought him back in we're going around the horn. that does it for us, see you back here at 5:00 for more "fast fun. "mad money" withstarjim cramer starts right now >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica, my job is not just to entertain but to educate, teach you and put this crazy market in context, so call me at or tweet me. every quarter i say the same thing. do not try


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