← CNBC's "Fast Money"
CNBC's "Fast Money"
Headlines From Apple’s WWDC… And Will Markets Recover from Recent Pullback? 6/8/26
00:43:29
Apple ramps up its AI strategy at its Worldwide Developers Conference as the traders break down the tech company’s position in the AI race and where Apple is heading next. Then, why energy stocks are jumping, questions on whether SPACEX’s blockbuster IPO can maintain its high price after it goes public on Friday, and if Bitcoin can bounce back after its losing streak. Plus, Citibank Chief Investment Officer Kate Moore gives her take on whether markets can rebound from the recent pullback, and the traders reveal what’s been happening at the ADA Scientific Sessions. Fast Money Disclaimer
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- [00:01]
Tim Seymour
At Edward Jones, we believe rich is
- [00:03]
Walter Paycheck
more than caring about the latest and greatest.
- [00:06]
Tim Seymour
It's also taking care of what gives your life meaning.
- [00:09]
Walter Paycheck
That's why your dedicated financial advisor meets you where you are with personalized financial strategies that help protect what matters so you can preserve your progress while creating a path forward. The key to being rich is knowing what counts.
- [00:25]
Tim Seymour
Let's find your rich together.
- [00:27]
Walter Paycheck
Edward Jones Member, SIPC
- [00:31]
Venture Global Narrator
Never bet against American Grit or American Energy through innovation. Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.
- [01:02]
Melissa Lee
Live from the NASDAQ marketsite in the heart of New York City's Times Square, this is fast money. Here's what's on tap tonight. Tim Cook's last dance. Did the outgoing Apple CEO deliver at its final worldwide developers conference? And will the tech giants long awaited AI rollout satisfy consumers and shareholders? And inside Intel's rebound, the semi stock recouping Friday's big losses. But is the move warranted? And what's it mean for the rest of the semi trade? Plus, oil stocks get energized, Old Dominion trucks to new highs and Lillian Novo move in very different directions after the latest updates on their weight loss pills. We'll dive into the data details and what is next for both these stocks. I'm Melissa Lee coming to you live from studio BE at the nasdaq. On the desk tonight, Tim Seymour, Steve Rosso, Dan Nathan and Guy Adami. We start off with the biggest reveals from Apple's wwdc. The last one with CEO Tim Cook at the helm. The company announcing the long awaited revamp of Siri AI as well as other new features and updates. Shareholders don't seem to be too impressed. The stock hitting a record intraday but closing nearly 2% lower. Mackenzie Seagalis is the latest from Cupertino. Hey Mac.
- [02:06]
Mackenzie Seagalis
Hey Mel. So the best way to think about WWDC this year is in two buckets. What Apple gave us and what it didn't. Now what we got was functional generative AI branded as Siri AI. It's more conversational, has a standalone app, can understand what's on your screen and draw on personal context. But what we didn't see was a fully agentic experience. The version that's booking your dinner reservation or calling your car. Now under the hood, Apple announced a New generation of its own LLMs built with Google Gemini. They run on device and through private cloud, Cloud compute. But notably Apple waited until a post keynote briefing to unveil a model it says is on par with Frontier LLMs and powerful enough that Apple will actually need to rely on Nvidia chips and Google Cloud for some of that compute. Now, other omissions help explain the stock move. No John Ternus on stage, no groundbreaking agenta capabilities. And also missing is a path to monetize AI through its services business. But malfunctional AI, it does open up the product roadmap for Apple.
- [03:05]
Melissa Lee
Yeah, and Mac. They also talked about limiting usage, which I thought was really interesting because that seemed to be, you know, the recognition of how much something will cost and maybe a teasers to, you know, people get hooked on this and maybe down the line they charge for it.
- [03:21]
Mackenzie Seagalis
Well, precisely. And that's really where you see the most upside, where we may get a bounce back in this trade. It's how do they monetize this through the services part of their business, which is already on track to hit 124 billion this year. And that's before you factor in any sort of AI upside. And the thought process is potentially you have a paid tier of Apple intelligence which enables more of this functionality or even if you allow models to be plugged in, we don't really get an explicit explanation around that, then you could take a cut from those model makers. Ultimately the bull case is that AI becomes this consumer toll booth for generative AI. And that would really be Apple's bread and butter if they're able to capitalize on that.
- [04:01]
Melissa Lee
All right, Mack, thank you. Mackenzie Seagalos and Cupertino for us. Dan Nathan, was this enough?
- [04:07]
Dan Nathan
No. And we've been saying this is a third year in a row, I mean, at wwdc and it's just unimpressive. And when you have, you know, this sort of presentation and you're only seeing basically like wireframes of it, that's pretty disappointing. Right. And so this is meant to get developers excited. It's also been a very big obviously investor event for a very long time. You know, the problem is, is that they're getting to this at a time where a lot of the moats in and around these LMS are particularly deep or wide. And so when, by the time they figure it out as far as what is on the device, forget about the services, forget about the apps that are going to be on there, people are not going to pay for that on the Apple you know, intelligent. They're just not going to. Right. So it's going to have to be exciting. The developer base and sort of the activity that goes on there, agents on the device and so you know, for me the stock had a great run into it and I think a lot of us were in that camp because you know the upside would have been huge if they were able to demonstrate that this is a game changer is going to start a super cycle upgrade. We've been saying that forever. Right. It just doesn't happen on the hardware front. So to me I think the most exciting thing they have is coming up on the 20 year anniversary. Just like Fast Money guy.
- [05:13]
Guy Adami
If we make it right.
- [05:16]
Dan Nathan
How about that?
- [05:17]
Tim Seymour
Talk about it. Okay, I'm So you think we're to
- [05:18]
Melissa Lee
jinx it a little bit easier.
- [05:20]
Dan Nathan
Yeah, All I'm saying, I'll pass it over. It was pretty unexciting. Right. And the stock had a big run. It look at the relative strength that this stock had, you know, Friday obviously but just in the run up to this event.
- [05:30]
Melissa Lee
I mean 15% since the last earnings. That's the run.
- [05:34]
Tim Seymour
Yeah. And but because they've disappointed so many times as Dan pointed out, I guess I'm not that worried about this disappointment. I mean the problem here is that Apple intelligence is really Google intelligence and that feels a little weird. An upgraded Siri is hardly something that gives me a lot of confidence. In fact, Siri being more intelligent, the bar was kind of low. I mean it really doesn't do a whole lot here. I still think we're in an environment where if last week was characterized by a lot of things as far as the market goes, but including Google and matter or at least Google raising equity. Metta, maybe the fact that Apple is not that deep into a dynamic here also whether it's DOJ rulings, whether it's the fact that they have more flexibility in terms of what they want to do, I actually think that the Google relationships maybe never been more important. But no, hard to dress this up as something wonderful. And the stocks had a nice move. Give something back. I stay long.
- [06:25]
Guy Adami
Apple price action is a lot and you know Tim talked about it last week. A lot of reversals. We'll look at Apple today. Now Gene Munster put out a note. Guess investors or traders are what Apple enthusiasts were hoping for something in September. Given the math, he thinks it's going to happen sometime next year. That's where the sell off is. Okay, so that's the explanation. But when you have a day where traded Two times normal volume made an all time high today, closed on the lows and is trading lower. That doesn't set up particularly well. I think the prior all time high was in December at 280. I think given the enthusiasm into this and given the price action after it I think that's where it settles in.
- [07:00]
Melissa Lee
What do they call that outside look
- [07:02]
Guy Adami
at you so engulfing pattern outside reverse
- [07:05]
Tim Seymour
climax softening is a cheap. Excuse me to look.
- [07:08]
Guy Adami
What did you just say?
- [07:09]
Tim Seymour
It was a bad.
- [07:09]
Steve Rosso
Sure.
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Tim Seymour
70s the Climax Blues climax.
- [07:12]
Melissa Lee
Sure. Yeah.
- [07:13]
Steve Rosso
I'm going to be a little more constructive on this. I think this is normal price action with these type of events and then if you look at the user base, user base is what? 2.5 billion still services are still 26% of revenue. I shouldn't say still growing to margins are huge. How much money have they saved in capex across the. I mean we could all just throw a dart at a dartboard but it's billions, maybe 20 billion a year on capex. Conservatively this gives them a tailwind. I'd be a buyer on a dip.
- [07:47]
Melissa Lee
I mean they could also be waiting for a time where they deploy a lot in capex when they can build a model that is much more efficient.
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Dan Nathan
I just don't think they're going to build models. I think the day of building these frontier labs, I mean it's over. They've all been going for the same thing. They're going for AGI, they've spent hundreds of billions of dollars, is going to be trillions at the end of the decade and you know, at the end of the day they're just not that differentiated. And you know one of the reasons why I think Google has been just the, just the leader here, why Microsoft Media can't get out of its own way. Amazon has come back to life a little bit is just that vertical integration of the whole stack and they obviously have GCP which is something that a lot of this stuff is going to be powered by. The other thing that you do not hear about it, my friend Jeff Richards over at Notable Capital brings this up a lot. I mean 70% of the smartphones on the planet have Android on it. Android is owned by Google. Android has already integrated a lot of Gemini. So when Tim says, you know, that relationship between Apple and Gemini or Google has never been more important than that's true. They've already demonstrated their ability to integrate that. But that doesn't mean that installed base at 2 billion is going to benefit a great deal from using Basically the integrated technology of Google on their devices. Because I don't know about you guys right now, like these apps work pretty well on my phone and you can go to Claude and you can ask it to do things within your phone, within the applications guy. You don't have to go to a physical store to do that anymore. So you know, to me I think it just complicates the Apple story. I don't think there's anything saying to you that you got to run out and buy it, but I think it is like to Steve's point, if you do see this stock come back materially, there's only potential upside. I think that's what you're saying also Tim.
- [09:23]
Tim Seymour
Yeah, I guess it just doesn't bother me that the story is no different than it was yesterday and that we weren't banking on tomorrow. We haven't. We. I don't think we have a whole lot of valuation uptick into Apple. You can make an argument it rallied into wd, wwdc. But I don't feel as if in a world where everything that Google has done and amazingly Google's gone from last place to first place, at least in terms of what it seems that Gemini and at least its ability to monetize and be vital, I think we would also all say that maybe this stuff will be heavily commoditized at some point in the future and therefore Apple's just hanging out waiting to cut the best deal. And yes, Android is out there, but are we worried about Android now? So I don't think, I think Google smartly developed Android a long time ago to ultimately support what is their core business, which is the one we're talking about. So again, I know the company's not cheap. I think some of this is given the tape we're in, if you're in a hyper growth space, you're not going to get an Apple breakaway rally or leadership but I think it's going to continue to perform here.
- [10:23]
Melissa Lee
Let's bring in Lightshed Partners analyst Walter Paycheck. Walt went to WWDC with a neutral rating on Apple. Walt is still neutral rating. I'm sorry, I'm reading your shirts. Striking shirt that you have, I guess in space X. Yeah, exactly, of course, of course. Still a neutral. I mean what, what was your take on, on what they revealed?
- [10:45]
Walter Paycheck
I mean you guys hit it pretty good but you know Siri is the manifestation of AI for them. That's the agent. If you look at when the stock started selling off as they started right when they started Talking about Siri and through that entire presentation where it didn't really provide anything that encouraging to investors. That's what I think sold the stock off. We don't even know anything about timing. I think there's some debate on what exactly is really is going to get delivered in September. I think there was a mention of it being beta. So this is something that has been promised year after year. I think Joanna Stern actually go to her Twitter account or her account did a great breakdown on all the promises of Siri over the years. So we'll have to test this one. My impression, just looking at it, the latency was not great. I didn't think the voice quality was that great. They didn't. They talked about it being more conversational, but I think we've all used OpenAI or Claude or, you know, or Grok and talk back and forth and interrupted, you know, those AI agents and had that experience. They didn't even show that today, even in a demo mode for a product that's, that's going to come out as a beta later this year. So I don't know, like, it seems like the market reaction was, was accurate.
- [11:54]
Melissa Lee
What, if anything, do you think is. Is Apple forgoing by not having a robust AI offering? I mean, Dan was just saying that Claude works great on his phone. I mean, is Apple somehow in the long term sacrificing services revenue if they are just the device through which you use other agents in order to book things like Uber, you don't have to have that Uber app necessarily. How does it, how's that going to work for Apple, do you think?
- [12:22]
Walter Paycheck
I mean, they did start to show a little agentic stuff. They showed one demo where it was going to send an email for you. They had the, you know, this other application that was separate, that's. That does, you know, complex tasks for you, that. But wasn't integrated into Siri. So it's just not, you know, I think doing that well. And I think, you know, Dan is right. Agentic ultimately is the future. We're still not there. That's why they're still in the game. Right. Because Android, even though they're, you know, really years ahead, hasn't really, you know, moved forward with the type of agentic stuff that you were just talking about. Once that happens and if Apple's not there with it, that provides another reason, you know, for people to reconsider, you know, what their device purchases. I think Sarah Fryer from OpenAI was also talking or hinting to some of the stuff that the Johnny, I was working on in terms of other devices as well, that could change the way we interact with our data and with our applications, you know, in this new AI era.
- [13:18]
Guy Adami
So, Walt, if AI is not going to be the valuation turn in terms of getting it to that, what's going to be the thing that takes us to the next level in terms of valuation? In terms you can say, you know what, I can justify instead of 30 times, I can justify, I don't know, 33 and a half, 34, which is a big deal for them.
- [13:35]
Walter Paycheck
Well, I think multiple expansion wouldn't occur if you had a super cycle because people are really jazzed up about a foldable phone. So let's just say that could be the next catalyst for them. But let's put that aside. That's not necessarily a multiple expansion thing. It's just you're generating better earnings so you'll get a better stock price. It's always the services, right? And there was some hint to that today when they were talking about, hey, if you want to use some of our more advanced services, if you want to really do stuff with your photos, we're going to limit you, you know, what is that code for? We're going to charge you more, right? They're going to, they're going to just add more fees onto your, onto your services revenue with icloud or whatever it is. And the other question that begs is if that additional computation is occurring, is that occurring on their compute in their private clouds, are they sending that to Google? Or if it's in their private clouds, then does that imply there's another capex cycle that then is going to hit Apple? Because they're going to have their private models, right? That's protecting your data that Google's helping them build. But if they're now threatening effectively to charge you more because you know you want to do more with your pictures than they can rate a limit you to do, then that could also imply there's some capex that's going to be associated with that as well, or at least fees paid to Google or Core Weave or whoever.
- [14:56]
Dan Nathan
Hey, well, I wouldn't exactly categorize this as a mic drop for Tim Cook and obviously he's had this absolutely amazing tenure, but the last few products have really been duds if you think about Vision Pro and what they meant to do with spatial computing. And then obviously just AI. They're just tripping all over themselves here. What would you expect the new CEO, how will he imprint himself on this company? Because if you go Back and you look at Tim Cook, what did he, you know, he went back and said, we're going to buy back hundreds of billions of dollars of stock. We're going to pay back, you know, dividends and that sort of thing. And obviously that was great for a lot of shareholders, but it hasn't been this sort of innovative hub that we had gotten used to with the advent of the iPhone and everything that they've been able to do really until the last few years.
- [15:39]
Walter Paycheck
I mean, Cook was the perfect CEO for what they needed. Yes, you're definitely referencing the share repurchase where I agree with you. That should have been more investment in some of these technologies and some products that, that got left at the trash heap like an autonomous car or whatever. But he was, he was the person that jammed up the volume to get in China what has been delivered. Why is the stock up, whatever it was since last quarter, the phones that they're selling to China, because he knew how to manage that relationship. Not only to make phones there, but to allow their product to continue to get purchased, you know, in Vibe. So that was the right, you know, CEO for the time. What we argued a year ago was exactly your point. You needed a product CEO, hopefully turn us is the guy we're not going to see that those changes, you know, right away. But that was the right, you know, the right change to make. Now look, when I said that at the time, everyone's like, oh, you know, no way Cook's going to be here for five years. And it was less than a year. And they made that change because I think, you know, everyone, whether it's Tim Cook realizing this internally or just you knew the direction of the company that we are in the new AI era, we have guys spending $750 billion on computer. There had to be a change and hopefully turn this is the right direction.
- [16:50]
Melissa Lee
Well, great to get your take. Thank you, Walter. Paycheck. We've got some breaking news that we want to get to. Kate Rooney has that. Kate.
- [16:58]
Kate Rooney
Hey, Melissa. So open I has confidentially filed to go public. This is setting the stage for what could be one of the biggest IPOs in history. The AI giant. Just saying in a press release, a blog post, I should say, quote, we expect that this is going to leak. So we're just announcing it. We have not decided they say on timing yet and they say there are also things they want to do that are likely easier to do as a private company. But it is a complicated set of trade offs. This gives us, quote the option to Go public sooner if that ends up being best. So leaving the door open there, the SEC filing does come days before, of course, Elon Musk. Space X is set to start trading and just a week after its biggest competitor Anthropic also filed confidentially with the sec. I have spoken to sources, guys who say this could come as soon as September is going to depend on market conditions from what we're hearing and obviously OpenAI saying that as well. Investors do also tell me there is some pressure to get ahead of Anthropic in all of this. I'm also hearing that OpenAI is eyeing a employee tender coming up in the next couple of weeks, potentially months, to alleviate that need to go public for any sort of liquidity reasons. OpenAI was last valued at $850 billion in private markets, guys, but the IPO parade is very much kicking off here. Open I sort of the last to get this filing and at least when you look at Anthropic and obviously Space X underway here. But back over to you.
- [18:17]
Melissa Lee
All right, Kate, thank you. Kate Rooney. I mean the drain in terms of all the money going to these new issues in one calendar year away from theoretically something else in the market, I
- [18:30]
Guy Adami
don't know what is it something else. Like last week it appeared it was semiconductors. Until you come back today and then you see the rally on the back of Marvell's announcement. So I don't know where the money's coming out of or maybe there's just money on the sidelines waiting, I don't know. But it's going to be for me. Let's see how Space X trades. Elon Musk has set the price like Billy Ray Valentine did years ago. We'll see how well it trades in the aftermath of that.
- [18:53]
Tim Seymour
I like how you said semiconductors as opposed to semiconductors.
- [18:56]
Melissa Lee
That was semi semiconductors.
- [18:58]
Tim Seymour
That was not lost on me or our viewers. What's also not lost on me or our viewers is that there's a race to beat someone else out here. And we live in a world where both these companies have had no access to lack of funding in the private markets. And it almost makes me wonder why, why we are rushing to market here, especially in a world where that that private market exclusivity has actually been something that I think is has enhanced their valuations at a time when markets are all time highs. I kind of get it the same time, why are you rushing to sell something? It really doesn't make a lot of sense to me and I've been around markets A long time. I mean, it's a dynamic that, that everything they want exists in the private market. Their access to capital. You can make an argument it's been easier to get to capital, it's been easier to get to a better valuation. If you're saying we want our employees to cash out, there are all kinds of structures out there to get them liquidity. So I just wonder why three companies are rushing to market really fast.
- [19:51]
Melissa Lee
It seems like everybody has gotten a look at this and the opportunity to invest except for the retail investor who will be the last ones in.
- [19:58]
Steve Rosso
Yeah, I mean, over the course of our careers though, we've seen more companies be taken private.
- [20:03]
Tim Seymour
Right.
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Steve Rosso
We've seen the shrinking amount of public companies. These are just monster companies that are going public right now. So I think they have monster goals. That's why they're going public. But I think they're spaced in perfectly September and December. Right. So I think it gives the market good enough time or plenty enough time to reestablish. But look for those mega cap stocks to be sold off as the bank.
- [20:28]
Dan Nathan
Yeah, I just say, Tim, and I know you know this, I mean, they can't hit the debt.
- [20:34]
Tim Seymour
I'm ready.
- [20:35]
Dan Nathan
No, but they have it. Look, if you look at the Mag
- [20:36]
Tim Seymour
7, I know you know, I know you know this, but I'm just, well,
- [20:40]
Dan Nathan
the max seven here, they have $700 billion at least of debt on their balance sheets. Right. So the coming of the public markets, it gives them a lot more flexibility. It gives them flexibility as far as M and A and all that sort of stuff. So I think that's part of it. I think they've raised a lot of equity. I think the bigger concern is Metta coming to market, Google coming to market. These aren't big numbers for them and their balance sheets, but it's important to understand that they need to raise this capital for them to continue to grow and monetize those investments. So they think the more money they plow in now and the more ability, I guess the better ability they have to fund it right now is really going to be the story, you know, who, who wins this race. I don't think it's a winner take all. It's not like Google with digital and search and advertising. It's going to be very different this time.
- [21:24]
Melissa Lee
Coming up, oil and gas names jumping as investors digest new developments out of the Middle East. Can the energy sector keep leading the market in the second half? Plus, Old Dominion delivers a new record. Our traders sticking with this one for the long haul. Don't go anywhere. Fast money's back in two.
- [21:43]
Geico Narrator
Geico presents a 30 second podcast between
- [21:46]
Tim Seymour
your podcast Today's story is shared by one of our listeners. It's called Betrayed by Bill. It was in that moment I caught
- [21:54]
Dan Nathan
who was staring back at me in
- [21:55]
Tim Seymour
betrayal or more like what, my insurance bill.
- [21:59]
Geico Narrator
With trembling hands, I grabbed my phone
- [22:01]
Dan Nathan
and switched to Geico, saving about $900
- [22:04]
Geico Narrator
in the process and never to be betrayed again. Now that was bloody riveting.
- [22:10]
Dan Nathan
It feels good when the story ends with savings.
- [22:12]
Steve Rosso
It feels good to geico.
- [22:14]
Venture Global Narrator
Never bet against American Grit or American Energy through innovation. Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.
- [22:43]
Kiana
Before we had AT and T Business wireless coverage, our delivery GPS wasn't the most reliable. Once our driver had to do a 14 point turn to get back on route. A 14 point turn. An influencer even livestream the whole thing. Not good for business. Now with AT&T business wireless routes are updating on the fly and deliveries are on time. And the influencer did get us 53
- [23:07]
Tim Seymour
new followers though at&t business wireless connecting changes everything.
- [23:14]
Melissa Lee
Welcome back to Fast Money. Energy stocks higher today with the OAH Oil Services ETF seeing its best day since February. The sector the second best performer in the S and P today. Among the winners, Baker here news Halliburton SLB ConocoPhillips also seeing outsized gains. The moves coming even as oil prices settled off their day's highs. Iran saying its military strikes against Israel are over, but it did warn it would resume if the attacks against Lebanon persisted. You guys have been big fans of oil for a while.
- [23:41]
Guy Adami
You got to continue to be again it's I think it's regardless of underlying price which by the way I do think will go higher. You got to be loan these stocks. I mean if, if we flatline even go down a few dollars in crude oil which is potentially likely in the coming weeks. Oil stocks are by your valuations, balance sheets, all the things that Tim talks about and the fact that people are just waking up to the fact that hey wait a second, this is one of the more interesting sectors in a world that we currently live in. So I like these energy names.
- [24:06]
Tim Seymour
Well you're getting some some interesting price action and chart wise SLB is about to break through that three year high. Remember there was the sneaky rally we had in the energy market three years ago that a lot of people weren't part of. We're now actually seeing earnings potential and the, the margin profile of SLB began to start to see where people would contemplate where it was in 2016, 2017 when, when drilling and everything offshore. By the way you talk about innovation and high tech. SLB is so far in front of the head of the class on this. And I think it's a time when countries and companies are going to have to try harder than ever to have energy security.
- [24:43]
Melissa Lee
Why have most of the gains for the sector that taken place prior to the war? I mean why, why are we sort of stalled in terms of. You look at the chart of the XLE right Since the war began. Pretty much flat.
- [24:54]
Steve Rosso
Yeah. Because I think it was efficiencies and then you had a change of administrations where they were going for alternatives and then back into fossil fuels. So I think it was front loaded to a large extent. You have to really look for when earnings have, have really maxed out for that period to see when the sector is going to roll over. Think about this though. If the war ended tomorrow, 20 to 25% of our exports are going to Asia and Europe in the form of LNG and in fossil fuels. If that war ends, we're going to have a glut here. All that production probably comes back home. WTI probably falls off a bit. You know, I get that stocks can hang in there, but they do take their lead from the, from the overall commodity. So I'd be careful on buying, buy them and sell steps really quick.
- [25:41]
Tim Seymour
I just think oil services are the ones that, that really kind of rallied before or were already in a good trend but actually get sold off because most a lot of that business is in the Middle East. I mean there's no question they immediately had a hit. Whereas I think the integrators were, were I think they've integrated, have outperformed since the war. And I think they will because of the war.
- [25:59]
Melissa Lee
There is a lot more fast money to come. Here's what's coming up next.
- [26:04]
Walter Paycheck
Check your rear view. Truckers are coming in hot. The shipping stocks speeding to records and
- [26:09]
Dan Nathan
whether the wheels can keep spinning on this trade.
- [26:12]
Walter Paycheck
Plus stocks trying to climb back after Friday's tumble. But is the bull thesis still in play where one top strategist still sees opportunity and how she's putting money to work? You're watching Fast Money live from the NASDAQ market site in Times Square. We're back right after.
- [26:35]
Everpure Narrator
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- [27:03]
Venture Global Narrator
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- [27:32]
Kiana
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- [28:02]
Melissa Lee
Dominion Freight Line jumping nearly 2%, closing at a record high. The trucking company has gained nearly 25% in the past month and is up almost 60% this year. Other freight companies like JB Hunt and XP Logistics have also seen outsized gains in 2026. Steve, you've been watching this.
- [28:19]
Steve Rosso
Yeah. So while the rest of the world was looking at the investment committees, looking at semis and the. And looking at tech, these have quietly rallied back. And JB Hunt signaled back at the beginning of April that the freight recession was over. They had 12 consecutive quarters, quarters of negative revenues. That's over now. And Old Dominion has rallied on the back of that. Old Dominion is considered best in class, best margins, free cash flow. I'd look for these to continue to rally even harder.
- [28:49]
Melissa Lee
Are these asset light or asset heavy in general?
- [28:52]
Steve Rosso
Well, Old Dominion is a partial freight, is a, is a partial freight carrier. J.B. hunt's a different operator on that, on that extent. But it's a much smoother, smoother chart when you're looking at the, when you're looking at the chart specifically on those two, on those two charts. But when you look at it less than less than a freight or less than a tank load or whatever it's called.
- [29:14]
Guy Adami
Tank load csx. And Tim talks about the rail. CSX I think made an all time high today. I mean valuations start to get stretched for some of these names. But you know what you think about what they're moving around the country, Iron ore or chemicals, coal, all those different things. It works in this environment. Regardless. What do you think of the economy? There's a lot of stuff going on on the rails as well.
- [29:36]
Melissa Lee
I can't actually there was a period where it was thought that I would destroy trucking but they can't really I
- [29:43]
Tim Seymour
think trucking strong by the way FedEx is spinning out FedEx Freight. I think this is a really interesting story. It is. Again they're going to be focused on less than truckload or smaller trucks and a case where I think the pricing power is is enormous. I think also in the past they had underperformed peers in terms of margin. That's part of the turnarounds that's expected. I think you could nibble on that one.
- [30:02]
Guy Adami
Remember that song Tim?
- [30:03]
Tim Seymour
Bad which one?
- [30:04]
Guy Adami
The Truckers with the convoy.
- [30:06]
Tim Seymour
Yeah, that was Convoy. I think it was by C.W. mcCall I believe. 75 the man plot news.
- [30:13]
Melissa Lee
You really don't need to but that was a that was Coming up, stocks looking to rebound after Friday sell off. What our next guest sees as the markets next next move and how rising inflation could impact the move Fast Money's back into.
- [30:28]
Dan Nathan
Missed a moment of fast. Catch us anytime on the go follow
- [30:32]
Walter Paycheck
the Fast Money podcast. We're back right after this.
- [30:40]
Melissa Lee
Welcome back to Fast Money Stocks Mixed to start the week after Friday's big sell off. The NASDAQ gaining nearly 9.10of a percent. The S&P up 3.10of a percent but the Dow down fractionally falling 80.6. Performance intel jumping more than 11% today after a report that Google had tapped the chip maker to supply over 3 million tensor processing units. TPU's the move though doesn't even get shares back to where they close on Thursday. And Bitcoin bouncing back above the 60,000 level after hitting nearly two year lows on Friday. Strategy Buying $100 million worth of the token over the past week after news it had sold sparked last week's crypto sell off. Those shares were up over 5% today. I don't know what you make of the intel news. I thought the intel move was interesting.
- [31:22]
Tim Seymour
I thought what I think is interesting is the move that we had going into Friday's sell Off and then meaning like absurd and then Friday. Yes. In terms of relative underperformance there's all kinds of stats out today but worst relative performance to the S and P in five years. It was a five standard deviation event. I didn't know there was such a thing. And it is a case where just the positioning going into this created the extreme that we had. On top of the fact that you had Broadcom CrowdStrike a couple other people really kind of disappoint in terms of their guide on top of the Google and the meta news. So not a great, you know, not a great end of the week that was looking for that record 10th week. That's what I would chalk up Intel's bounce to. Intel does not belong at this valuation but hasn't seemed to bother.
- [32:05]
Steve Rosso
Could you imagine a better ETF ATM than Intel for these IPOs that are coming out has a massive run. Take it off the table. Pop into some of these IPOs. I think you've seen a near term lid on intel but if you list out all of the deals that they've gotten with with the new CEO, it is pretty incredible that Pat was there for so long and I mean I hope he has a ton of stock and he got paid on it. But to look back in the rearview mirror and see the deals that have gotten done in your absence probably is a kick in the gut.
- [32:40]
Melissa Lee
It is amazing to think that less than a year ago Intel's foundry business was being written down in terms of value. That there are real questions about whether or not that foundry business was worth anything. And now they're making TPU's for Google
- [32:53]
Guy Adami
and was it was a viable conversation to have at the time? Yeah, $21 stock.
- [32:57]
Melissa Lee
Right.
- [32:58]
Guy Adami
Heading in the wrong direction. Their datacenter business was a disaster compared to some of their rivals and people were leaving for debt. Rightly so. You know we talked about at the time as a Homeland Security play, maybe we'll get the $33. Which it did. It shouldn't be at 110. You got to start doing the valuation game at some point and say okay wait a second, maybe 80 times for intel doesn't make sense. Maybe it should be more like 50 times. But even at 50 times there's still a significant sell off here. So I think the stock has 75 bucks written all over it.
- [33:26]
Dan Nathan
I think that the fact that the stock is willing to value a deal in 2028 where intel is going to be able to manufacture. What's the number here? 3 million TPU that's laughable. I mean, this is a company you talk about, Pat Gelsinger. They have basically mis executed on every major shift that's gone on in technology for the last 15 years. So if you're buying this now based on we saw this with Oracle, and I know it's apples to oranges, but you can have all the orders that you want. Your ability to execute and create the infrastructure to deliver is another story. And more of these deals, more and more, when you think about this anthropic deal and you think about, about, you know, what Google just did with space X or Xi's compute, they have 90 days to cancel these contracts. And they can be immediate. Immediate if they don't deliver on what they're expected to do by that date. So if you're telling me you as an investor want to give these companies some multiple on the revenue in the future, well, that's actually the history does not show in the stock market, specifically in tech, that can be very cyclical, that that's a great way to Invest.
- [34:32]
Melissa Lee
Friday's near 6% drop in the S and P tech sector is an exceedingly rare occurrence. The Chartmaster pointing out a 5% or more pullback has happened in just one out of every 162 trading sessions going back to 1989. That's about 0.6% of the time. And even with today's gains of a percent and a half, Carter Worth is advising clients that it is time to hedge bets on technology. So in that context, hash investors, take a look at today's rebound. Let's ask Kate Moore, chief investment officer at Citi Wealth. Kate, great to see you.
- [35:04]
Kate Moore
Hi, Melissa, great to see you as well.
- [35:06]
Melissa Lee
I mean, in semiconductors in particular, it was a bona fide correction that happened on Friday. I mean, what do you, what do you make of this sort of bounce back, maybe lack of bounce back that we saw today?
- [35:17]
Kate Moore
Look, it was a very tepid recovery today. I think we can all agree on that. But I think last time I was on with you, I use the word uncomfortable like three or four times when talking about the relentless move upward in the market despite incredibly strong fundamentals. So let me say this. I see no degradation in the fundamentals and in fact, a broader macro backdrop that is actually really quite supportive for a broad range of sectors. That said, you know, it did feel like the market was getting a little bit ahead of itself and that it was looking for an excuse, a pause to breathe. And so I think that's what we saw at the end of last week, the digestion of the payroll numbers. We already knew that the economy was in good shape. I'm not sure the labor market data alone justified the move, but I do think we're going to see more of these sort of consolidation moves in the market. It doesn't leave me stepping away from tech though. I think this is really important. This is where the largest earnings are coming in 2026 into 2027. And I'm a fundamentally driven investor.
- [36:15]
Melissa Lee
Well, are you more comfortable today after the pullback on Friday? I mean, what level do you want to see in order to be comfortable getting in?
- [36:24]
Kate Moore
Yeah, look, I'm less uncomfortable frankly, now that we've had a little bit of this digestion. And in fact, I think we're going to have more of that over the course of the next couple of months as everyone processes, you know, what we'll see in terms of inflation. Obviously this week is a very big week for macro data. How the Fed might react in terms of language next week not in action and how the market sort of prices in the risks of consumer led growth slowdown in the second half. That's not our base case, but I'm just saying there's a lot of reasons for people to kind of pull back risk and to make excuses. And of course you were talking about this large volume of IPOs that are going to attract a huge amount of investor attention over the next few weeks and months. I expect that could be a distraction as well and lead to some volatility, but it's not bad news. A little ball is good for those of us that like to be taking advantage of dips.
- [37:13]
Tim Seymour
Hey Kate, in terms of just judging the sentiment value of meeting with your clients on all the things in the fundamentals that you're about. Talking, talking about. I'm just kind of curious based upon again because we are talking about a move that I think from Friday was based upon the positioning coming in. How skittish would you say the institutional base that you're talking to regularly is here or are they not and therefore nothing has changed?
- [37:36]
Kate Moore
Yeah, you know, one of the things that has been true throughout the course of 2026 and this relentless march higher actually has been since those March lows has been that people are still holding a lot of cash. I mean there is a lot of sense of I got to have some dry powder in case there's a better opportunity or they're waiting for a deal or they were concerned around the broadening of the economic and macro impacts from
- [37:57]
Melissa Lee
the war with Iran.
- [37:58]
Kate Moore
And the secondary and tertiary impacts of higher energy prices, those we kind of agree with. But there have been a myriad of excuses that the investors that we've talked to, from the institutional to the very sophisticated individual have used, you know, to hold more cash. So I don't think people were all in on the market, despite the kind of nine weeks up we had in a row. And they're going to kind of take a look now and see how sustainable is a little bit of weakness. Do we get continued rotation out of semis into some other areas of the market and if that's sustainable is an opportunity for them to add. I just don't think anyone's made a decision. I would just classify overall sentiment is, yeah. Kind of tepid.
- [38:38]
Melissa Lee
Kate, thank you. Good to see you.
- [38:40]
Kate Moore
Good to see you.
- [38:41]
Melissa Lee
Kate Moore of Citi. You feel integrity.
- [38:45]
Guy Adami
So I don't know how to answer the question. Match. Yeah, that's, I wake up that way most days. I listen. I think fundamentals haven't changed, technicals have and there was a lot of technical damage done last week. Today did nothing to change my view. I thought today was marginal at best. The bitcoin bounced, but not nearly to the extent that it probably should have on the back of the seller news. So I still think the structural damage in the market last week has had some long term ramifications.
- [39:10]
Steve Rosso
I do think it's pretty impressive that we're not really we haven't talked about rates once during the show and that was the premier, the main focus for market participants. I didn't really, really hear Kate become too occupied with it either. That means to me the, the market can probably go higher as long as earnings stay intact. But should we do a little give and take week? Of course we should. But with the sell off we saw last week, I think it was enough for us to move into Space X pretty strong.
- [39:39]
Melissa Lee
Coming up, what to expect from Space X's blockbuster IPO this Friday and what history tells us about what stocks do after their market debuts. The details when Fast Money returns. Cerebra shares up 18% today, their best day since the company's IPO last month. The Stock gained nearly 70% on its first day of trading, but closed for Friday, 48% below its intraday high. That got us thinking about the next big IPO in the docket, of course, that Space X which is expected to start trading here at the NASDAQ on Friday. Anticipation is high for this offering, but what should investors expect from the stock? CNBC SIMA Modi has been crunching the numbers on the performance of some recent IPO Sima, what do you say?
- [40:23]
Sima Modi
Okay, so we have been digging through the numbers and IPOs that witness a big one day pop tend to on average underperform the broader market by more than 8% points over the following three years, according to data from Jay Ritter. Even in the short term, it's difficult for companies that have a blockbuster debut to keep the momentum going. Take a look at Alibaba, Coinbase, Doordash, Snowflake, which saw an over 100% gain on its first day. All these names underperformed six months later. Even companies that define a new market category like Uber with ride hailing. Despite all the fanfare, shares closed down 7% on its its first day and Uber continued to trade down in the following months. There are outliers. Palantir, ARM holdings, big gains on the first day, traded higher during the same six month time frame and of course lockup expirations. The path to profitability, market dynamics, they all play a role. But on average big one day pops Melissa are usually a warning sign with Space X will be really interesting given that Fidelity and Charles Schwab are reinforcing. There's these rules to discourage short term selling. If you do in the first 15 days, you can be banned from participating in future IPO deals.
- [41:28]
Melissa Lee
For ARM and Palantir, weren't they profitable for longer companies?
- [41:33]
Sima Modi
That's why the profile picture, the, the profitability picture really plays a role in sometimes dictating the performance of a lot of these companies and how they do.
- [41:41]
Melissa Lee
Right. And of course setting the IPO price at 135, maybe that eliminates some of that pop which characterizes some of those IPOs that have underperformed in the time afterwards.
- [41:51]
Dan Nathan
It's not likely, I mean, to get the allocation that you want. If you're an institution, you're going to have to give a big aftermarket order and you're seeing like multibillion dollar orders and again there's going to be a $75 billion, you know, offering. The one thing I'd say is that, you know, Jensen Huang, I think last week said something about this being a generational opportunity to buy these IPOs. And it's really funny because if these IPOs come and they don't work well, they're going to be buying less GPU used, right? So there's a lot of hype going around here. You know, the fact that jp, JP Morgan CEO, you know, is hawking this deal. I mean it's one thing if you're a banker. It's one thing if you're, you know, an equity research analyst, but the fact that a CEO who's not even the lead or co lead on this deal, I just think there's a lot of folks that need this stuff to work and that's not always how it happens, you know. So I don't know, man. Like this seems like, like if you're retail and you're paying up after the thing opens, I just think that's probably a bad way to invest.
- [42:45]
Tim Seymour
Palantir was a really trendy IPO back in the day of the company that was making money and this was a name that you had plenty of time to buy. In fact, you had plenty of time to buy it wants to go from 23 down to 7 or 8 bucks. I don't know that you have to chase space X even though I think a lot of people want to say they're in the deal.
- [43:01]
Melissa Lee
Seema thank you. Sim Modi Coming up, all the headlines from the American Diabetes association conference. The latest on Lilly and Novo's next gen weight loss drugs and the impact impact it's having on the stocks. More fast Money into. Welcome back to Fast Money. The American Diabetes Association's annual scientific sessions are wrapping up today in New Orleans. And GLP1 heavyweights Eli Lilly and Novo Nordisk are moving in opposite directions despite broadly positive readouts. For more on what's driving this action, let's turn to Angelica Peebles. Angelica.
- [43:32]
Angelica Peebles
Hey, Melissa. Well, it was a very busy weekend and Lilly's Brett had a true tide stole the show because it produced the most dramatic weight loss that we've seen to date. So one doctor in her presentation, she posed three questions at the end. Is bigger always better? Is bigger always needed? And is bigger always right? And the answer, no, no and no, she said. But that doesn't mean that it does not have a place. It might just be a smaller group. So Lilly CEO Dave Ricks telling me that he thinks that doctors initially will reserve retta for higher body weight patients, at least initially. We also saw data from several other potential newcomers, including Pfizer. That company presented results from an experimental shot from its $10 billion acquisition of Metcera, and when given monthly barrabenutide produced up to 16% weight loss. And the presenters praise the tolerability. But not everyone was convinced. And one prominent doctor actually came up to the mic, said he flat out disagreed with that review. And the doctor who reviewed the data showed a slide of the dozens of drugs that could be available in 2029. That's around the time when that drug might launch. And that's the challenge with all these newcomers is that you saw it with Zealand and Behringer Ingelheim shot server Dutied and pills from structure therapeutics and AstraZeneca. Lilly and Novo just have such a head start. And even Novo is facing questions about the pipeline. And Novo also announced this weekend that Wegovy pill prescription reached 3 million. And I asked Novo CEO Mike Dewstar what it will take to get credit from investors and he said time. So that's a challenge for all of these companies.
- [44:58]
Melissa Lee
Melissa all right, Angelica, thank you. Angelica peebles, Novo, you have that.
- [45:06]
Tim Seymour
Yeah. To me, Lilly is showing that sentiment wise and in terms of where you have the trials and what the data shows, even small amount either of tolerability or efficacy or just percentage weight loss, they dominate and they dominate. Even though Nova arguably I think has more market market share and the bar is lower, I still would own Novo here. That's not been a winning trade.
- [45:31]
Guy Adami
David Ricks is just doing a better job telling the story. I mean, it's flat. I mean, Novo CEO can talk about time. It's not about time at this point. It's about telling the story better. Because if you overlay the two charts over the last three years, it's an, it's now no longer a two horse race. It is a one. This is Secretariat in the Belmont Stakes. Now, I don't think it should be that easy. I think Novo is its value here, but they're clearly not telling the story properly.
- [45:54]
Melissa Lee
Up next, final trades. Time for the final trade.
- [46:08]
Tim Seymour
Timbo, first of all, let's go New York Knicks. It's a big night in New York City and if you're not watching the Knicks, you might want to be looking at Eem Steven Cerebras.
- [46:18]
Walter Paycheck
I think the market gave you a
- [46:19]
Steve Rosso
nice little pullback there. Willing to dip a toe, Dan.
- [46:23]
Dan Nathan
Tim, you know this. The hyperscalers act very poorly and I don't know why you'd want to buy
- [46:29]
Tim Seymour
zoinks these semis given poorly.
- [46:33]
Dan Nathan
Tim, and you know this, not a
- [46:35]
Steve Rosso
buyer of the SME.
- [46:37]
Guy Adami
What are the chances you'll be watching any portion of this game this evening?
- [46:40]
Melissa Lee
Melissa Lee, 5%.
- [46:42]
Walter Paycheck
That's high.
- [46:43]
Tim Seymour
That's far more than usual.
- [46:45]
Melissa Lee
It's super high.
- [46:46]
Guy Adami
So disappointing. Halliburton.
- [46:48]
Melissa Lee
Go Nicks. Thanks for watching. Fast Mad Money starts right now.
- [46:54]
Everpure Narrator
All opinions expressed by the Fast Money participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by them on television, radio, Internet, or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular particular strategy, but only as an expression of an opinion. Such opinions are based upon information the Fast Money participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Fast Money disclaimer, please visit cnbc.com fastmoneydisclaimer Snoring Gasping during sleep?
- [47:28]
Geico Narrator
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