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tv   Fast Money  CNBC  March 1, 2021 5:00pm-6:00pm EST

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u.s. mike, how do we follow up? very strong rally. still a lot of earnings ahead. >> yeah. the retail earnings, that might actually help set the tone but also is this a one-day or two-day respite on the yield story? are we going to have to start fixating that. >> out of time on "closing bell." thanks for watching. "fast money" starts right now. i'm melissa lee and this is "fast money. guy adami, karn farnham and james mcdonald tonight on fast, the games are in for the year. warning from mike wilson he'll join us exclusively ahead. plus, boeing takes flight. the stock soaring as one major airline doubles down we'll break down the trade all over the after hours action. shares of zoom, that stock is higher by 9% on earnings as the analyst call gets underway we're on that zoom call, muted of course. we'll bring you all the big
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headlines. we start off with a bull charge on wall street stocks ripping higher with the s&p 500 heading in the best day since june the dow and nasdaq seeing the biggest gains in four months every single sector finishing firmly in the green led by financials the rally with a pull back in yields big news on the vaccine front. so, guy, 27 points below last week's selloff almost like nothing happened, guy. >> unbelievable. i'd like to think that i know myself decently well who knows really at the end of the day. if i had been with you on friday i would have said, mel, i'm surprised the market sold off as much as it did late in the day on the back of the bond market which i know ten years went above 1.5%, but the way it
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rejected that 1.r5% level in the 10-year, closed down by 1.41%. what i would have said is if you're bullish in equities, this is a great sign, the rejection of the 1.5%. now i'm not saying i would have seen today coming by any stretch of the imagination, but what i will say is maybe today is what would have happened if the day had lasted longer on friday. it's a great sign if you're an equity call that we didn't seemingly reject the 1.5% and the fact that the bigs did seemingly selloff. all good signs i would push back at saying although we did reject 1.5% in the 10-year, i don't know how long that's going to live for. i do think we're going to go through it my concerns with equities are going to come back. >> karen, what was your take on today's rally? >> so there were a lot of positive things. first, coming off the heels of the very down last week, down day particularly friday. so there was stimulus news
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ism manufacturing, new orders, all of that looked really good that was sort of a perfect mix for what this market needed coming off the heels of a selloff. things have gotten overdone for sure maybe they're a little bit over done now it was interesting to see every sector up. >> two of those things that you mentioned, karen, would have, i would have thought, made the bond market want to go lower and yields go higher james. karen did mention the j&j rollout and also the very good economic data. both of those things and then the news over the weekend, congress passed stimulus you would think that would be a good reason for bond yields to go higher. >> we're having problems with
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james' mike. tism, why don't you go for it. >> here i am so i think you have a case where there's some sense, also a stabilization in the dollar's also been good for inflation expectations although the weaker dollar was a big part of an equity rally, there was a feed through to inflation. there is some sense that the labor market and the fed keeps talking about it they're going to talk about it this week. there's a chorus of fed speakers, the scarring of the labor market there's a bunch of different things that you can interpret from this but that, again, inflation, it will be impossible for there to be significant inflation when the under employed rate is well over 10% there's a sense here that we just moved too far too fast on yields but i said a month ago, it didn't feel great last week, that a 1.6010-year was fine. what we had today was every part of the economy working
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that was including covid beneficiaries, that was a reopening trade, that was even some cyclical stories. so i do think equities are over sold look at apple. obviously the biggest stock in the world was at the lowest 9-day rsi or relative strength indicator. just a measure of momentum hadn't been that over sold since november of 2018 it tells you why stocks had to bounce treasury yields abated and so with the next uptick, we haven't even gone to pre-pandemic levels on the 10-year treasury. that would be more like 1.9% here we are at 1.4 >> so the breadth of buying shows there's a new consensus. that's that rate hike
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expectations were too far and the stability gave them a green light. pmi, 60.8% we think that based on what bank of america is saying the next critical yield is 1.75%. positive economic data, if it continues to come in, verbal intervention is not going to be enough to hold yields down yields will come back down and bring risk into the market there will be sectors that will benefit from that. they will outperform if yields come up. >> guy, are you still afraid of inflation in terms of the yields on the market? >> terrified >> even though today happened, markets went higher, everything seems sock >> yeah. i'm terrified. if i had to play scrabble with karen, i'd be terrified. if i were to have to let's just say play a game of one-on-one against gianis from the
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milwaukee bucks, i'd be terrified. it's here. most people that are living in the united states understand it's here as well. the fed chooses not to acknowledge it or chooses not to account for it either one i do think it's encouraging, again, that we rejected the 1.5% but i think that's going to be short lived. i think we're going to make our move higher which by memorial day the debt in this country is going to be north of $30 trillion which is going to be 140% of gdp. all of these things are unsustainable. more so if rails go higher which i think they're headed. >> maybe investors are just a little too scared just like you playing one on one with the guy from the bucs. >> gianis. >> you get my point. karen, you have some charts. it's our chart of the day, in fact >> yes the chart of the day i rarely have the chartof the day because i don't really have charts this one was interesting for me. this is backwardation.
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that's when the spot price, the near-term price is actually much higher than future prices are expected to be that's because there's just a rush of demand right now so if we look at a lot of things that are economically sensitive, crude, lumber, steel, iron ore, the spot price is actually higher or much higher for some of them than the expectations are for those prices to be in a year or two. so that's telling me that even though i was skeptical of transitory inflation, it's going to be that, transitory, we'll have less inflation, i think when you put all of that together, the fed, i know it's like nails on a blackboard to you, guy, the fed may have gotten this right that inflation is in fact transitory and there will still be a lot of slack in the economy and so we're not going to see much higher yields. i've been on the inflation train for a while so thinking about,
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you know, has that ride been long enough? maybe they got it right. >> you might get off at the next stop i don't know, tim, how about you? would you bail at the train and get off at the next stop that chart is pretty convincing. >> yeah. i mean, look, i don't want to play the greek freak either but i bet he understands the fed is not going to change and move too soon you have a case here where the train i'm on, it's not about don't fight the fed, it's about understanding the reflexivity in their inflation mandate and they will wait for an over shoot. this word, the fed gives us a lot of buzz words that we tend to over focus on transient. to the extent that some of this is rolling off in the next couple of months and is covid related, there's a lot to be said for that. i repeat, the labor market is a big anchor to the fed's view that inflation doesn't get away from us here i agree with guy i agree there's a lot of
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inflation out there, but i agree more to the practical view of inflation through the eyes of the federal reserve tells me they don't do a thing. >> yeah. james? >> well, the fed has said continuously that we need to wait and see what happens and there's so much new news coming into the market. the efficacy of the vaccine is ticking positively we're getting new and better vaccines to get people healthy the fed wants people to be okay. their policy stance is going to be wait and see. earnings look solid. we've held up far longer than we should have as yields rise and pressure comes in from the inflationary indications we've seen particularly in the commodities, they'll be back up. we've seen markets turn around and flip i, too, need to take a wait and see approach
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>> let's get to leslie picker. >> reporter: the markets cheering the prospect of michaels, which is a craft supply retailer going back into private hands. that stock up 12%, more than 12% on "the new york times" report saying it could be going private. cnbc has now confirmed with a source it is fielding potential offers from bidders, including apollo that firm declining to comment on those rumors. it would be an interesting about face after seven years in public hands. the company was previously owned by blackstone and bain before it went public in 2014. now no word exactly how close they are to reaching a deal but the company is expected to report earnings on thursday of this week. so potentially we could learn something at thatsolidified. a date to look forward to,
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melissa. >> thank you, leslie picker. karen finerman, public, private, public, private. here we are again, private interesting time considering things must have been -- >> right yes. things must have been decent during the pandemic. this is a business that generates nice cash flow so i believe it. that makes perfect sense to me it's -- i think some of what the pandemic sort of provided for them will be sticky, i think not maybe to the heights of, you know, the deepest part of the shutdown but it's a good vehicle for going public and private again. it would not shock me at all if this happened again. >> our next guest suggests the gains may be in for the year mike wilson here great to see you. >> good to see you. >> just prior to coming to you, besides talking about michaels and crafting, we were talking about inflation.
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karen was pointing out the backwardation and commodity markets. how do you think about inflation and whether this is going to be what prevents equities from going higher >> yeah. i mean, look, this has been a big part of our view really going back to last april i think people thought we were nuts to talk about inflation back then, but we can see the writing on the wall. we were going to have incredible stimulus we were going to shut down the economy and ultimately when you try to reverse all of that, open up the economy, you're going to have cost pressures. obviously it's shown up in commodities already. it's shown up in a lot of the pro cyclical parts of the market which we've been overweight. it's worked pretty well. the one outlier has been rates we know why. rates have been suppressed by the fed. i don't doubt that the fed is committed here i don't expect them to raise rates or start tapering any time soon
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i think people fail to realize the markets move ahead of the fed. the vaccines are working really, really well. we're seeing a crash basically in case counts and hospitalizations arguing that we're going to reopen sooner now we're going to do another trillion dollar plus stimulus. the bond market is saying, look, we're not waiting for the fed. we're going to move. this is all good that's our call for the year we think with the index level the s&p is kind of tired 3900 is pretty full even as we go out to the end of the year but there's a lot of great stocks it's still a bull market. >> hey, mike, i have a question. we were on together and we talked about the proclivity of markets to come down when rates rose about 1% from wherever they are. that was the first risk event we've seen in over four months that actually brought equities down in a meaningful way in
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consecutive days there was not a follow through do you think that this incredible bull energy is going to continue as rates come up, as inflation is unthread? where do you see the down side in terms of the next equity pressure it wasn't this one last week. >> well, no, i think rates is the first issue that the market is dealing with. that's a constructive development. it means the economy is improving. earnings are going to be great we know that from seeing the fourth quarter results the market can survive a rate increase that's not our call. our call however is there are parts in the market that cannot survive that some of these unprofitable companies that are trading at ridiculous multiples, they're going to continue to be under pressure as rates come down. one other thing we may need to start to consider in the short term, at least for the next quarter or so, is some of these cost pressures are going to feed through the margins. operating margins have surprised on the up side as things kind of
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reco recovered. if the costs work their way into the supply chains, we may see a temporary pause into the up side the margins may be a short-term issue. i don't see that yet, but that's something we're watching as we go into the guidance period of pre-earnings we'll see numbers start coming down on concerns that maybe there's going to be some cost pressures. either way, we're going to survive this it's a natural consolidation once again, it's about stock picking now. we want to find stocks that can do well in this kind of of environment. there's a lot of them. >> mike, it's karen. thanks for being on. so when you talk about stock picking, given what you think about multiples, i know you don't love talking about individual stocks, but are you looking then for financials or sectors that have much lower pes than the market if not financials, what other areas >> we're looking for stocks that have leverage to higher rates and higher leverage.
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there's a lot of stocks in other sectors that are perhaps going to benefit from the reopening. so we put a note out today talking about the tech sector in general, neutral on the sector but there's a lot of stocks that we like within that. two stocks i'll talk about briefly were t-mobile and sinstata, semiconductor levered in the ev play there are a lot of stocks that are going to benefit from the product cycles that can allow the stocks to do very well in the expanding economy and those are two. >> it's so unusual to hear stock picks from you we have you on and the most granular we get is the name sector why the change several times during the interview today you said it's a stock picker's market. is this going to be more what we see mike wilson do when he comes and talks to the public? >> we try to do this all the time we do a focus list that we
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publish every week it's done really, really well. done 45% better than the s&p by picking stocks. that's a market where everything was going up but i do think performing this year is going to be much more dependent on alpha than just beta and we are going to continue to try and highlight those individual securities for investors going forward. >> great seeing you. >> thank you. guy adami, what have you to say about what mike said or about his stock picks? >> mike wilson's fantastic i think his bull case scenario in the s&p, i want to say it's 4400 or so, i think his base case, worst case is 33 and we're probably right in the middle in terms of what he thinks. all the arguments he makes are spot on. my concern is the leadership that's gotten the s&p here is going to take a back seat. they were such an out -- disproportion of the s&p that if they were to sell off, it's
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going to be hard for the s&p to hold up. i do think inflation is here to his point, we've pointed out other names as well. look at caterpillar, look at some of the food stocks like old school "fast money," bungee, archer daniels mid land. those suggest on the reopen trade. coming up, breaking down the "fast money" trades in tesla, boeing, exxon and united we're all over the after hours shares of zoom the stock is higher on earnings. the company's call is onhe t way. we'll bring you the trade when "fast money" returns ded to makef they couldn't get to the food, the food would come to them. we can deliver for food banks and schools. amazon knows how to do that. i helped deliver 12 million meals to families in need. that's the power of having a company like amazon behind me.
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welcome back to "fast money. check out shares of zoom up 8% the company's conference call is underway deidre bosa joins us >> blowout quarter just as many are beginning to worry about what growth from the work from home darlings is going to look like when people eventually return to the office. guidance, this was critical. it was very strong after full year revenue growth of more than 300% this year, comps were always going to be tough but the company forecasting growth of more than 40% this fiscal year and that is still pretty good in a post
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pandemic world i believe over two years represents growth of more than 500% now on the earnings call which kicked off at the top of the hour founder and ceo said as the world emerges from the pandemic, their work has just begun. he talked about zoom's growing portfolio of offerings and product features like zoom phone and zoom room gaining fraction he also said he wants to empower a work from anywhere experience and lead the evolution of a hybrid future work that will allow for greater inclusion, greater inclusivity. stocks are up 8% after surging 10% today. >> thank you be sure to catch zoom cfo kelly steckelberg on "squawk box. let's get the trade here zoom was battered in last week's selloff. recouping some of those losses today between the regular session and after hours.
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>> i love disruptive companies because they have the most potential of all the businesses out there. remote work is going to stay in demand for the time being but as they're doing, zoom is going to have to adapt. the big worry with zoom is the competition. over 70% of companies have office 365 microsoft is free. it's $150 a user for all the apps whereas zoom is $200 per year zoom has the lead, right a household name we all use it. more convenient. if they stay ahead of the curve, i think the opportunity is huge there. 254 times the pe ratio under 21 is concerning. the potential is there 2021 revenue implies single digit growth love the company love the business. i think all of us are going to use this as a staple going forward. >> it wasn't just a beat it was raised guidance, tim.
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that speaks volumes in a post pandemic world >> yeah. so it's not just that we now do a zoom as we google something, call an uber, face time somebody, this is part of the vernacular so james pointed out the secular trends that aren't going anywhere i don't think they're going anywhere add in 5g, we're doing more video, not less. the key to the outperformance and the rally is what they did with their enterprise. they got a lot of deals over the goal line in the fourth quarter as they were plush especially relative to year over year where there was a lot of austerity there. i think they're going to continue to be able to make those pushes that's really the key. zoom dominates the small to medium sized businesses. >> from the get-go, guys, bears would say the teams has got the edge, microsoft teams. from the get-go they would say
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zoom's best days were behind them in terms of pandemic business what do you say now, now that they've givenguidance for the year >> i just listen to them and take their word for t. of all the companies that shouldn't really have clarity for the next year would seemingly be a zoom they told you what they think is going to happen. oh, by the way, dbo does know, operating came in north of 40% last year was 20%. the street was looking for 30% they shattered everything. plus they gave you guidance. i get the knock on it being valuation. that's been a knock all along. they're clearly seeing something that maybe the world doesn't want to acknowledge. i think despite valuation, i think you've got to stay with the name i didn't think it would get down to 330 i thought it would stop at 385, 390 level. with that said, you stay the course. >> maybe this was fourth derivative, karen, when i hear zoom give better than expected guidance, it makes me think
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commercial real estate is going to have a real hd time coming back >> that's an excellent point right. that's been a laggard for sure, right? with good reason it's so easy to zoom it is part of the vernacular and part of how we're going to live our lives. i believe there's stickiness there. i can't get comfortable with the valuation really, but no way would i short this thing it's an outstanding company. management is spectacular. >> we have a lot more on "fast money." the reddit rebellion has taken wall street by a storm and one may have gotten caught up in a frenzy what that means for its investors. >> exxon making a big play to go green. what its newest board member could mean for the stock we've got that a and lot more when "fast money" returns.
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welcome back to "fast money. the reddit trade on fire in today's rally. check out some of these big news gamestop, amc. barclays is connecting the dots saying there is a clear connection between tesla stock price and the number of times it's mentioned on reddit ryan, thanks so much for joining us unchts thank you for having me. >> when i saw the headline, i thought is this a could he incidence? does it coincide with the stock's rise but you actually say that this is predictive in some way? >> yeah, that's right. so when we look into that, what we see is that actually the close connection between reddit and tesla stock price is how
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many people put submissions on to reddit about tesla two days ago and one day ago for price moves today. so there's really at least a couple of days lag in terms of when people are talking about it and when you get the big ups. >> so when you say that the stock usually moves higher, is there an average move or, i mean, can you quantify that in some way >> you know, it varies in terms of particular ones but generally we're talking about -- and it's going to be a function of how many times people are talking about it, but it can be several percentage points if you're seeing big surges in attention in terms of what people are posting on reddit. we're talking about a number of different times. one of the things we did was we went through and looked at what are all the times when there were big spikes in attention on reddit regarding tesla and how many of those cases do we see the stock move up? the answer was pretty much all of the top 10 and many of the top 20 unlike something where it could
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be a statistical anomaly based on a big move, we've seen it very consistently when people are paying attention to tesla on reddit we do see consistent moves up. >> i'm sure there's a number of caveats to all of this, ryan especially since this whole system is pretty new can you talk through that in terms of the number of instances you were able to study and then also if you are able to really go through the board effectively in that so many times it's all about emojis, memes and that's hard to go through for an algorithm for ai or for human for that matter. >> yeah, absolutely. look, i think when we looked at it, we actually found something like 20 separate big spike events now those big spike events tended to run multiple days so we actually had a pretty reasonable amount of data to work with. certainly enough to get to physical significance. what we did find out though is
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actually hard to isolate down into what people were talking about for tesla. when you think about translating posts into data, bunch of things that you can do. one of the first ones, you have to look at the name they're talk wil talking about. even within that people would post things about multiple tickers and you have to parse this out what we used and what got us the best results, most clear results, the number of submissions people were talking about tesla and just tesla which gave i think a very sort of clean read on are people talking about this certainly not trivial to just extract that from the feed itself >> you put this note out jointly, i believe, with the tesla analyst. i'm curious what role this would play or will play or could play in a future in terms of the firm's recommendations of stocks do you think that this is something that will continue to be studied and factored into
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research >> yeah, look. i think any investor now or anyone who wants to take an opinion on a security wants to start factoring in this. is this something that's going to get attention on social media. what we see here is talking about only a few days' lag so i think people will have to be cautious in terms of how they talk about it, but if you're covering any stock that you think could go into or could land on it on social media, i think you have to be thinking whatever my range up and down was from whatever the volatility of the move i felt like could happen with this name, maybe now i have to think about whether that's much bigger than it needs to be in the past. >> ryan, got to leave it there interesting stuff. hope you come back >> great guy adami, if i were to read between the lines of what ryan just said, it sounds like regardless of what people may think of the reddit army, whatever you want to call that, it has changed the way wall street operates on some levels, including research
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>> 100%. no question. i can only really speak for myself in terms of this. i admire a lot of these folks in terms of the due diligence they did and the work that was done behind a name like gamestop. i said it a few times. they understand more about volatility, negative gamma than the people that were putting on the positions on the other side. good for them that they caught this i'm not here to cast aspersions. what i am here to say, i think there are an army of people. i think there are a few people behind that army that are probably pulling the strings i'd be fascinated to know or to learn who those folks are. that will come out at some point. the puppet master in all of this is still yet to be displayed >> unveiled. puppet master has yet to be unveiled perhaps is the term >> melissa >> yeah, james, go ahead >> new data from piiq media and it shows there are 10s of
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thousands of bot accounts. while we're attributing this to humans, thousands of bot accounts can be bought for as little as $200 a piece since the squeeze, they've seen an influence of 2 million new members. they start/stop patterns that coincide with day trading, there were clearly patterns there. all of this looking at the etiology of the system where stocks are being pushed around, there's a lot of commuputer science happening. and i would say let's not ignore the bots as an influencer. if there's an actor behind the bots, that's got to be factored in as well. >> i always from day one wondered whether every single account was tied to an actual human being but at the same time the activity on reddit is in fact driving stock price action, which is i think the bottom line here, at least for us in terms of stock movement.
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coming up, time for takeoff. shares of boeing leading the dow as it gets another big order for the max jet. will this stock continue to fly? we'll bring you the trade. gentleman what we spotted in the stions market that could point toome trouble ahead. we'll bring it to you when "fast money" returns
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welcome back we've got a news alert in the ipo world. let's get back to leslie picker. >> hey, melissa. compass, the real estate brokerage platform disclosing the s1 today they said they had filed confidentially back in january but now we have several hundred page document that we can look at to get a better sense of how this company is fairing. top line quite good in 2020. $3.7 billion in revenue. up 56% year over year. they say that in 2020 they assisted home sellers and buyers to transact approximately $152 billion in residential real estate or 4% of the u.s. market. notably they did have losses, 270 million on the bottom line as far as risk factors go, it's
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what you might expect for a company that's exposed to the housing market, things like recession, weakening housing markets, things of na nature, raising mortgage rate pricing. the company plans to list on the nyse under ticker symbol comp. they are being managed by goldman sachs, barclays. >> leslie picker on the compass ipo. karen, i'll go to you quickly. what do you think of the timing of this? >> well, i think it might have been in the works for a while, so i heard i think of them, maybe i'm wrong, i think of them as very new york centric and at the moment that's probably not the best place to be maybe the bid ask spread will come together and they'll see lots of transactions that's good for them i don't know what to make of it. new york real estate is tough right now. >> sure is let's switch gears here. shares of boeing top of the tape
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after the company locked in an order for a 737 max plane. phil lebeau. >> reporter: melissa, that order is from united airlines. today it was officially announced by united that it is expanding its plans for the 737 max fleet that it currently has. so right now they're flying 30 maxes. they had previously ordered 69 they're going to be moving up the delivery of some of those aircraft and today, this is the part that got boeing shares moving higher, they are placing an order for an additional 25. we had american in december. united just a couple of weeks ago started flying the max again and then in this month, in the next few weeks you'll have alaska and southwest both flying the max. take a look at the shares of united they have been moving higher in part because it's the reopening trade. people know their expectation is there will be greater demand and as a result you're going to see more people booking flights.
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if you haven't already looked, melissa, lately at flights for let's say august or september, they're filling up rather quickly. that's also the reason why shares of boeing moving higher its max backlog stands at 3202 planes they have booked 125 orders for the max just since the beginning of december. so you're starting to see that turn a little bit here where the backlog is going to slowly start to increase even as they clear out a number of the models that were built there finally take a look at shares of boeing over the last three months as i mentioned, 123 max orders since december 3rd the expectation is they're using more airlines expanding existing max orders or rework the order book in some fashion so that will improve the backlog on the 737 max. all of that is why you have shares of boeing moving higher
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melissa? >> phil, thank you phil lebeau. tim, if you were in this as a turnaround trade, your timing of this was approximately that, where are we in that turnaround in terms of the stock price? >> i was on both sides let's be clear i owned this into some of the big move lower, cut some losses and got back in, et cetera so i have to acknowledge that it's been good and bad but i think the dynamics here are if you're talking about a relative value trade, rather on boeing than a basket of airlines here because i think that you look at where airlines have rallied back to, karen's brought this point up, hunter k posted some numbers from wolf which he said revenues in the airlines sector by 2025 will only be 4% higher than they will have been at their peak in 2019. yet debt will be up 51%. leisure travel will be 85% versus 75%
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in terms of what's the better trade on the reopening, boeing was a $90 stock on march 19th so it's had a ridiculous run. i'd rather own boeing. you'll continue to cierre lines have to go start to work through that order book. it will be restructured but i think they're in a better position to sell airplanes than airlines are pre-2019 revenues. >> i'll pose to you the same question tim posed to himself. boeing or -- >> would you rather? >> you let him off the hook there. >> not really. >> no, i didn't. no, i didn't >> you did so i'm going to go off the board for 500 please, melissa. boeing's sideways 200 to 225 the way to play it has been spr, spirit aerospace, which was a $30 stock, close at 46.
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>> the wooild west on "fast money" tonight market's in rally mode we'll dive into the options pitts to see what could be looming ahead. seeing green we'll tell you what sent shares of exxon mobil rallying today. is this stock worth a cosend look we'll bring you the trade when "fast money" returns so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot.
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welcome back to "fast money. shares of exxon mobil rallying today after jeff ubben got a seat on the board. they're focusing on clean energy and improving the financial performance. ubben is a big proponent of esg. it's been on a run with energy being the top performing sector of the s&p 500 so far this year. james, what do you make of the changes? >> so they're going to have to change their stance on climate they're going to have to become a greener, friendly firm and i think they're going to do that energy is going to continue to rally. it's coming from nowhere i think the stock picks up the market i think it's a comeback story. >> guy, you've talked about the power of esg investing many
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times on this program. is that a force enough forex on to say, yeah, we've got to be greener? >> 100%. that worked against them obviously for the last six or seven months now it will probably work for them the question is where can this stock go up to go back to february last year, $70 stock. it's not unreasonable to think in this environment given the way the broader market is trading and now given the seemingly change of tenor at exxon, you can't trade bank there. paul sanke, he correctly pointed this out many, many months ago, i want to say late summer, early fall last year so i think there's still room in exxon to the up side. >> are we going to look back, tim, at that appearance? i think sanke was in december, and say that was the beginning of a re-rating forex exxon mobi
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>> paul sanke, man, planted a flag in the ground you made him do that trade, mel. >> i didn't make him do anything i wish i had that power. >> well, anyway, i think paul though pointed out on the bull side of the ledger that there were some structural things in how exxon and how the industry overall had really changed their op ex and cap ex although covid has pushed that out two more years this is a company being run to generate free cash flow.c we're around esg and ev, let me say again clearly, the biden energy policy approach is great for oil prices industrial movement around the world, great for energy prices we have $75 oil by the end of the year. coming up, we are breaking down today's big rally what we spotted in the options market we have that trade when "fast money" returns
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martin marietta. the s&p with the best day since june mike, what did you see >> yeah, we are taking a look at vixy, the etf that is designed to track the short dated vix futures. we saw calls significantly outpace puts the most outdated call actions with the 17 strike calls at the end of march trading for35 cents. when you combine that activity with the april 30 vix calls and tbt, people may be looking at the opportunity to see some of the volatility last week happens again. >> how would you interpret that data, karen? >> i'm not sure what to make of it, actually i don't know if there's -- a lot of funky things going on certainly in the debt market i don't know what to make of it. i actually am somewhat confused by it to be honest >> yeah. all right. mike, thank you so much for that be sure to catch more "options
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it is time for the final trade. let's go around the horn tim seymour. >> so i wasn't with you before but it is now, ge even over boeing on the airline recovery trade. yeah, i said it. ge at 2 1/2 year highs, i think it's going higher. >> james mcdonald. >> nexgera energy. $100 billion in the current stimulus bill. low beta they've increased quarterly dividend by 10%. green energy. >> karen finerman. >> yeah. so tomorrow morning, target. i'm long target so that's my final trade. i want to give credit to andy for helping me with this inflation thing. thank you. appreciate it. >> guy adami, what rule are you going to break in the final trade. last 30 seconds? >> i'm not a rule breaker.
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>> go ahead. >> i'm not a scoff law like tim. that's a "fast money." good job, tim. oracle very quietly all-time highs there, melissa. >> first for everything. thanks for watching "fast money. "mad money" with jim 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 come where and i promise to help you mind it. "mad money" starts now i'm cramer welcome to "mad money. welcome to cramerica other people want to make friends, i just want to educate and teach you. call me at 1800-743-cnbc or tweet me @jimcramer. after today's terrific rebound with the dow gaining

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