← CNBC's "Fast Money"
CNBC's "Fast Money"
U.S. Banking Boom…And Record Stock Run for Kymera Therapeutics 7/7/26
00:43:46
Financials surging as investors countdown to second quarter bank earnings next week, expecting major growth. The traders break down what the results could mean for these names and whether banks will see major gains. Then, shares of Kymera Therapeutics soaring as its Eczema drug trial timeline moves faster than expected. The firm’s founder, president and CEO Nello Mainolfi talks trial data and where the company is heading next. Plus, SpaceX stock plummeting despite bull calls on the Street, the media market under pressure, and Coke hitting all-time highs back to its century-old IPO. Fast Money Disclaimer
Loading summary
Transcript164 lines
- [00:01]
Edward Jones Financial Advisor
At Edward Jones, we believe rich is more than caring about the latest and greatest. It's also taking care of what gives your life meaning. 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. Let's find your rich together. Edward Jones, Member, SIPC how do you
- [00:31]
EY Parthenon Representative
turn your strategy into action and action into impact? Bold leaders do it through transformative strategy and transactions, ones that work in practice, not just on paper. At EY Parthenon, we use an investor mindset to help you create value.
- [00:47]
How?
- [00:48]
By combining deep sector experience with AI powered technology so you can reimagine your business for tomorrow while building it today. Shape your future with EY Parthenon. Learn more today
- [01:03]
Melissa Lee
live from the NASDAQ markets out in the heart of New York City's Times Square. This is fast money. Here's what's on tap tonight. Big banks about to kick off Q2 earnings season next week. Investment banks leading the way over the last three months. What will the reports mean for these names and for gains in the second half of the year? Plus, the next big test for chip stocks, a sky high price target for Space X Coca Cola shares get caffeinated. And CNBC investigates concerns that sensors from a blacklisted Chinese company could be hacked or used to send sensitive data to the Chinese government. We'll dive into that story later this hour. I'm Melissa Lee, come to you live from City of the nasdaq. On the desk tonight, Courtney Garcia, Karen Feiderman, Dan Nathan and Guy Adami. We'll get to the banks in just a minute. But first, oil prices spiking late in the session after the US Said it would revoke authorization of Iranian oil sales after a series of tanker attacks in the Strait of Hormuz. Megan Casella is in washing with the very latest on this. Megan?
- [01:58]
Megan Casella
Melissa, that's right. Treasury formally filed this afternoon to revoke the general license that had allowed Iran to sell its oil on the open market, essentially undoing here what had been one of the most tangible outcomes of the US Iran memorandum of understanding. Now, this move comes just over two weeks after the license was put in place and it follows a series of attacks on ships in the Strait of Hormuz, including three tankers hit just earlier today. Both Qatar and Saudi Arabia blamed Iran for those most recent attacks. Now a US Official tells me the decision to do this now is because the MOU is entirely Performance based. The official says Iran will only reap benefits if they exhibit good behavior and that its actions in the strait were wholly unacceptable to the US and will be met with consequences. Now the official also said U.S. negotiators continue to work in good faith towards a final deal. But Melissa, this certainly throws a wrench in those talks. The US Lifting oil sanctions against Iran was offered, you'll remember in the MOU as a reward for for Iran reopening the Strait of Hormuz. So now we're seeing ships targeted in the strait. The sanctions are back on. And so just about three weeks after it was signed, the MOU now is on very shaky ground and the question becomes whether we see further escalation from here.
- [03:04]
Melissa Lee
Melissa Megan, thank you. Megan casella and obviously that's a huge concern for the markets, you know, oil tankers. It was always viewed as sort of a shaky situation in terms of transiting through the Strait of Hormuz, but Nassau even more. Guys.
- [03:17]
Guy Adami
Yes, let's focus on the energy market because I do think it has broader market implications. But you look at the OH which is down 22% from the all time, not the excuse me, from the May high, I want to be clear from the May high of about 455460 pretty significant move in a short period of time stopped right at the 200 day moving average and bounced today. So I think Karen would agree as well. Energy stocks are still in play. Yes. It's been difficult to own them ex refiners. There's a lot going on in terms of the broader market ramifications. A Vix at 16 or 16 and a half does not price in what we just talked about.
- [03:50]
Dan Nathan
And there's a lot of ways to kind of consider this as it relates to risk assets in and I want to focus on inflation. Right. That has been the story over the last call it couple of weeks since we've had this MOU in a way. And so the president's been talking about, you know, energy prices coming down, food prices coming down. And if you think about where the 10 year yield is at 4.55 right now, I don't think anybody had that on their bingo card. Especially if you were considering, you know, the price of oil down below 70 bucks. And if you think about where gas at the pump is, you know, per gallon, it really has come down a lot. If you think about where we were, you know, just a month ago, but relative to where we were, February is
- [04:26]
Melissa Lee
still up a lot.
- [04:26]
Dan Nathan
Right. So if inflation expectations are going to stay grounded, then the yield on the ten year is probably not going to move a whole heck of a lot. Now, you can make the argument that stocks have not really been bothered by yields sticking around here and that has been the case. But there's a whole host of other things that are coming into play here as it relates to inflation. I mean, you think about all the demand that we've seen for everything that goes into data centers and you know, labor too. We have labor shortages, that sort of thing. So there's a lot of reasons why you could expect inflation to stay bid, if you will, and therefore you're going to see yields stay bid. And if, you know, the energy market continues to be really volatile, it's not going to kind of produce the sort of, I don't know, disinflation. So what we call it disinflation that inflation going down. Yeah, right, that too. And you know, it's just not going to happen anytime soon. And I just think that, you know, you're likely to see us concede a bit more as it relates to ending this war because it really does become a political thing as we get into the fall.
- [05:19]
Melissa Lee
It does seem like there's a high bar though for WTI to actually go a lot higher. I mean, at these levels, levels with this spike, we're back to levels we saw a couple of weeks ago. We're well off of the Iran war highs here and it seems like there's, you know, a lot has to happen in order to, to even approach 80.
- [05:38]
Karen Feiderman
Well, so I'm looking at the, I'm looking at Brent, not West Texas and also looking at, you know, what are the, what's the curve telling you? And so we had an almost $4 spike but the, you know, going out the curve, maybe two and a half bucks. So a, a more muted as you would expect, a more muted response. And I've been surprised actually how much oil has come down in such a relatively quick amount of time. The, the, oh, it's hit the squarely on the chin. The Excellent. Much less so but when you look at the holdings, it's, you know, Exxon, Chevron, Conoco, so it's a different mix. But so I do think inflation can come down. So which would be good for the market. I'm not, I'm not looking for a cut. I don't think they need to cut. I don't think it's. Even if it comes down there, we're still way high above where they need to be and washes pretty much said that's the mandate of the dual one that they care about the most. So I do like though, getting into earnings season where we actually see what companies are seeing in their own business and in the economy at large. And the banks obviously are a really good indicator of that. So I just don't like when they trade up into earnings.
- [06:47]
Courtney Garcia
Yeah, yeah. I think the fact that we see crude, I mean it is now above 70, but it's still like basically where we were pre Iran conflict here. And I think the fact that the markets are not reacting that heavily to these geopolitical headlines means they're moving past it. Like, yes, there's still conflict. Yes, they're going to see some intraday moves on that. But I think realistically when you're looking six to 12 months out, markets are assuming this is no longer going to be the case and that's what they're looking at. And if that is the case, that's essentially almost like a tax cut to consumers because if it's going to be lower oil prices, that's less gas prices, that's going to help the consumer and that's a positive for the overall economy. So, yes, we're going to see a spike on this headline. I don't think it's a concern moving forward though.
- [07:23]
Melissa Lee
All right, meantime, let's move on to financials flying to new heights. The XLF ETF hitting a record early in the session. It is now up nearly 18% from its March lows. The group far outpour outperforming the broad market so far this month up almost 5% in July where the S&P 500 is basically flat. The move coming ahead of big bank earnings. JP Morgan, bank of America, Goldman Sachs and Citi kick things off next week. Tuesday morning, not big morning. So will the reports fuel more gains? And this is exactly, Karen, the setup you're talking about just now.
- [07:53]
Karen Feiderman
Wait until this segment that you like,
- [07:56]
Melissa Lee
but it applies really to financials does.
- [07:58]
Karen Feiderman
I mean, I think what I care about is earnings. We always know that Jamie Dimon says you got to worry about this, you got to worry about that. Here's what could go wrong, all of that. But I do think the earnings will be good. I do. I think credit quality will be good. I think that'll be important. The part about investment banking, trading, you know, capital markets, I think will be really good. But we always say that that is not a multiple, that you don't put a high recurring multiple on that because it's a really lumpy business. So I think the run up going in, as I often said, is not great going forward. But I do like the banks. I'm not. I have some upside calls sold against JP Morgan, but Citibank and JP Morgan are where I want to be, plus some Morgan Stanley.
- [08:41]
Courtney Garcia
Yeah. And there's been this big discussion about this broadening happening and is that actually going to be sustainable? And I think the banks are one of the big tests for that. Like what are, what are you showing with the consumer? What does credit really look like? What are we seeing with the M and A activity? Because I think that's going to be the test is are the earnings justifying this rotation and is it going to continue? And I'm hopeful that we are going to see that. But I think we have to see those numbers when they come out next week.
- [09:01]
Melissa Lee
I mean, for this rotation to happen though, do we need to see tech be soft? Do we need to see this continued rotation out of, let's say semiconductor stocks and specifically memory stocks?
- [09:12]
Guy Adami
I don't necessarily think so. I think banks. Listen, given, given the size of the banks vis a vis the broader market, I don't think it's vitally important that those stocks come off for banks to win. Banks have done okay in seemingly any environment. You look at Goldman Sachs, Morgan Stanley, even JP Morgan. And the fact that Jamie JP Morgan announced a stock buyback despite what Jamie Dimon says about valuation, I think is somewhat telling. I mean, they realize that you sort of got to be in the game. I will say historically when banks run into earnings like this, they typically sell off, especially Goldman Sachs. If you look over the last few years, the trend has been run up in earnings, sell off. That lasts about a week or so. I think that will continue.
- [09:50]
Dan Nathan
Yeah, I think that banks exposed to consumers are less important right now as you think about just the financial landscape in general. And you know, we've been talking about this going back to early June, this Blackstone and Apollo deal. It was an spv, it was private credit. It was raised basically to finance the purchase of Google GPUs and lease back to anthropic. No one wants these things on their balance sheet. So you know, some of these financial institutions continue to get more creative. And you know who's lending a great deal to those SPV's is some of the large banks. Right. So when you think about the circular nature of it, forget the circular nature of actually the purchasing of these GPUs and whether it's DRAM or HBM and all that other stuff that goes into the servers, I mean no one wants to own the hardware at this point and they've already used a lot of their cash flow and they've used their balance sheets to do that. And now they continue to get more creative. So I guess the point I would make is that, you know, this doesn't look a whole heck of a lot like the late 90s when you saw this build out that was, you know, for all intents and purposes funded by equity. This is getting funded by a lot of debt right here. And it's to a scale that we've never seen before. And now that is going to flow through the financial system. And if there's any pullback in capex demand, this is going to be something that's been very financialized. So I don't think there's been enough attention played, you know, to this aspect of this build.
- [11:08]
Karen Feiderman
So I think you're right if the demand pulls back. But one thing I think has happened was several months ago we're all really afraid of depreciation, how quickly these chips were losing value. And I think that's not the case anymore. I think that much shorter, the feared much shorter depreciation is lengthening that they are getting use out of them longer. And if we talk about, you know, switching to. Right, you don't need to be the first cutting edge to do several tasks. You could do something out that just adds to that story. So that I think it's interesting to extent that that's collateral.
- [11:40]
Dan Nathan
I just think that is so debatable. Karen. I just think there's so many folks that are kind of digging in and think that is exactly not the case in the way some of these GPUs have been marked as far as depreciation. I mean, we're going to see, you know, I mean, that's going to happen. And when you think about the broadening out, I think it's interesting that you have this situation where they're buying TPU's from Google. But you also have this situation and Dan Niles talked about it last night. We've been talking about this. I mean, why do you think intel and AMD are trading where they are? They're not trading because they've kind of cracked the code as it relates to GPU'. They basically decided that they can put their CPUs or they basically convinced a lot of these buyers of this compute that you can do almost the same thing with clusters of CPUs. So at the end of the day, if there's any less demand for GPUs then you're going to see these things get marked down dramatically and you're going to see a push towards other technology in general. So again, I get that narrative. I'm just not sure that's the correct way to think about this. And we won't see that until demand pulls back.
- [12:38]
Melissa Lee
But you're saying that this is a looming threat to the banks?
- [12:40]
Dan Nathan
Well, I think it's all a looming threat. I mean, the point is, is that this has basically been financed first from these companies and now they don't want it on their balance sheet and then they have to go out and have these, you know, and we saw this with Metta, by the way. I mean, you remember that sbv, it was KKR is Blue Owl, that sort of thing. I just think at some point people are going to start paying attention to that, how this stuff is being financed.
- [12:59]
Melissa Lee
For more on what's next for the markets and how investors should position themselves, let's bring in the Texas is Jack Janice Ritz, he is a lead portfolio strategist. Jack, great to see you here on set.
- [13:08]
Jack Janice Ritz
Yeah, thanks for having me back.
- [13:09]
Melissa Lee
How are you feeling about the setup into earnings season? I mean, the rev revisions have been very strong. Upward revisions have been strong across the board.
- [13:15]
Jack Janice Ritz
Yeah, I think that's a pretty good backdrop. But I think what we're going to hear from them is going to be very important. Right. It's going to a lot of questions you guys are just walking through. I want to hear about OPEX versus Capex. I want to get some greater clarity on that front. There's a lot of questions going forward here on this AI trade and basically the whole market seems to be held up by that AI trade. So getting any sort of direction going here in the future is going to be key.
- [13:36]
Guy Adami
You talk about a whole hum economy and I hear what you're saying. When does it not ho hum through the lens of the bond market, which shows glimpses of sort of faltering over the last couple of weeks.
- [13:46]
Jack Janice Ritz
Yeah. And you know the question you guys are just talking about the financing side of the equation. There's certainly plenty of debt being issued right now. The market seems to be taking it down. Maybe the argument, I would say you look at a lot of these hyperscalers and a lot of these guys that are issuing pretty good balance sheets for them to take it on at the margin, it's not really crimping them. But you know, at the side, at the, at the end of the day. Right. It's the technicals that matter. And when you start to look at potentially triple a double A rated paper that's coming in with maybe a little bit of a pick to the overall market, I think there's a bid for that sort of paper. And so I think the market's willing to take it down because pretty good balance sheets, they're going to get paid back and you're getting a little bit of a spread to the broader market. So they're willing to, willing to finance these sort of things.
- [14:22]
Melissa Lee
You say the non related economy is tepid at best. Is it being hurt by the economy?
- [14:28]
Jack Janice Ritz
I think there's a pretty big sucking sound that we're hearing right now. Right. It's all the capital is being dragged away from everybody else that's going right to that side of the equation.
- [14:36]
Melissa Lee
All right, so are you positive on that? I mean there's a real debate over whether or not increase Capex, which seems to be the case especially because memory prices are going higher, will actually mean good returns for shareholders.
- [14:48]
Jack Janice Ritz
Yeah, you know, I still think you don't have to stay with the trade. I think maybe near term we're going to get some chop in that. You know, when you look at things like momentum factor, the beta factor, you know, a lot of the dispersion trade, the, the implied correlations, you're seeing plenty of signs of crowding that's in the marketplace right now. And so you get any sort of move, especially you know, you guys are talking about the VIX earlier. You get a sort of a back up in the vix, you're going to start to see some of these trades unwind and you know, the amount, the level of crowding that we're seeing in there, you're going to see some selling and that's sort of what you saw today. I think you saw a little bit of that last Thursday. So there could be a little bit more of a shakeout to go. But that probably just presents a buying opportunity I think once that shakeout is done. So I think the idea here is a little bit of a, of a barbell. Right. You want to own some of that AI, but you also want to look at trades that maybe are not as quite tied to the beta in the momentum trade right now. Things like maybe financials, health care, that sort of thing. So it gives you a little bit of a smoothing out effect from a portfolio perspective.
- [15:38]
Melissa Lee
Yeah. Do you like financial, so you like financials going into earnings here?
- [15:41]
Jack Janice Ritz
Yeah, I think it makes sense.
- [15:42]
Melissa Lee
Yeah.
- [15:42]
Julia Boorsen
Okay.
- [15:43]
Melissa Lee
Jack, it's great to see you.
- [15:44]
Julia Boorstin
Thank you.
- [15:45]
Melissa Lee
Jack Genesiewicz of nativity.
- [15:47]
Guy Adami
Jack was outside. I asked him if you wanted a coffee or something. He goes, actually, where's your stash? He wanted like a tequila, which I dig.
- [15:53]
Melissa Lee
Really.
- [15:53]
Guy Adami
Maybe post show.
- [15:54]
Melissa Lee
Are you making this? Are you bad Jack?
- [15:57]
Guy Adami
Am I making it? Did I go by the guests?
- [15:59]
Jack Janice Ritz
No, I knew I was going to stash somewhere.
- [16:01]
Guy Adami
Yeah, of course those are.
- [16:02]
Melissa Lee
Yeah, well, it's hidden.
- [16:04]
Karen Feiderman
Not anymore, I guess.
- [16:06]
Melissa Lee
I guess not. Do you agree that you have to have.
- [16:10]
Guy Adami
I mean that makes a lot of sense. I mean I push back a little bit in terms of the banks. I think some of them gotten ahead of themselves. I mean even Jamie Dimon says his company is expensive. But you can understand why the landscape is favorable right now. What I will say though, what I continue to be concerned about. Although the unemployment rate is 4.2% under the surface, the labor market looks precarious, in a word. And I think the US consumer is absolutely strapped. And that doesn't work well for banks in this environment.
- [16:35]
Melissa Lee
I think it's interesting. I think a lot of people come on this network and say you got to be still exposed to the trade but position for the rotation out. So you want to sort of keep your, your fingers in both trades. Is that how you're advising clients?
- [16:48]
Courtney Garcia
Well, you do. I mean this year is a really good example of that. If you look at the Mag 7, I think it is now again positive for the year by like 1%. But then if you look at the other 495 stocks are up like 13, 14% for the year. This is a perfect example of that. Like we own AI and yes, it's been one of the underperformers, but the whole rest of the economy has done really well. We have things like our pipeline is doing well, commodities doing well, our financials are doing well. And I don't think anybody necessarily foresaw that in January. But I think this is something you want to do and I do think that rotation probably is going to continue. But I don't think the story is over. I don't think you want to be out of that either. So I think that's very sound advice there.
- [17:21]
Melissa Lee
Have you been paring back at all in your AI trades?
- [17:24]
Karen Feiderman
Well, some of them have pared back so with that self, you know, self hedging mechanism. But no, I haven't, I. But I haven't owned, you know, the Microns, that sort of name. So that's like Nvidia. It's been kind of a wild ride. But I still think it's attractive. And Dell Those are my. And then Google, Amazon, Meta.
- [17:48]
Melissa Lee
We didn't even mention Samsung in the earnings overnight from South Korea, which really sparked this whole trade. SK Hynix coming to market on Friday with their listing of ADRs here in the United States. I mean those are going to be key tests.
- [17:59]
Dan Nathan
It's not surprising. I mean, look at Nvidia as a great example. They're growing earnings and sales this year, 80%, 80% year over year. Okay. And they're expected to decelerate to 45% next year. It trades at 15 times next year's earnings. So investors are placing huge discounts on the ability for these companies to still grow at that pace to maintain these sorts of margins. And you know, it's interesting to me that Nvidia obviously is self financing all of this stuff. They've made tens of billions of dollars invested in their ecosystem. But there's been $160 billion so far this year issued in the debt markets by the hyperscalers. And some of them are paying, you know, like rates that are actually really high. If you think of Oracle, you think of the Neo clouds, they're near junk and the union economics for those guys has not been proven out just yet. So I think there's probably going to be a couple of blow ups in that and in that area and then you're going to continue to see these equity offerings which have been big if you think about the Google one and that sort of thing. So again, I think if you think about the demand that is actually fueling a lot of the earnings growth year over year in the S&P 500, well, it doesn't take too fine of kind of, maybe you just kind of kind of squint at this and you think about what's going on with Samsung and the price action relative to what they're putting up. And you could say this is probably a quarter or two away. And I know that you could have said this or I have said this for a couple of years now, but it really feels like it's very close right now.
- [19:20]
Melissa Lee
Got to take a quick break. Fast Money's back into.
- [19:27]
Fast Money Promo Announcer
This is Fast Money with Melissa Lee right here on cnbc.
- [19:36]
Priceline Advertiser
It only happens every four years and this time it's here, the biggest tournament in the world. Stadium shaking, flags waving. This is history and you want to be there. But real life can make it tough work, busy schedules and the price. That's where Priceline comes in. Priceline has millions of deals on flights, hotels and rental cars. So you can go see it live. So find a great deal and make the trip happen. Rally the crew. Go see the game live. Turn your dream trip into reality. Book now with Priceline, it's smart to
- [20:06]
AT&T Business Wireless Advertiser
always have a few financial goals and a really smart one. You can set earning cash back on what you buy every day. And with Discover you can get this Discover automatically matches all the cash back you've earned at the end of your first year. Seriously, all of it. And we trust you to make smart decisions. After all, you listen to this show see terms@discover.com credit card before we had
- [20:31]
AT&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 new followers though.
- [20:55]
AT&T business wireless connecting changes everything.
- [21:02]
Melissa Lee
We've got some breaking news. The US military has said it has begun launching a series of powerful strikes against Iran.
- [21:08]
Julia Boorstin
Iran.
- [21:09]
Melissa Lee
In a tweet, Centcom saying forces have begun launching a series of strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway. The US strikes are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz. Iran's demonstrated aggression was unwarranted, dangerous and a clear violation of the ceasefire. You got to go to crude for the immediate market reaction. Also the reaction futures. We already had the US revoking the ability for Iranian to sell Iran to sell crude as part of the MoU. So it is intensifying in terms of an escalation here of where things are.
- [21:50]
Guy Adami
All right, so you mentioned S and P futures and crude. Let's throw one more the bond market. Now, one would think if these, if things are escalating a fight to quality in the form of the bond market, I'm not one of those people to think that. I think the bond market sells off on the back of this. And you see, see 10 year yields pushed back up to 4.6% because the overriding concern will be the rise in energy prices. And by the way, this is not at all bullish for what's going on in Japan. This will further weaken their currency and probably further weaken their bond market, which is also going to be problematic at some point.
- [22:21]
Dan Nathan
I think this also highlights the fact that you have two factions that are running Iran Right now you have the Republican Guard, which you know is the one carrying out these sorts of attacks in the Strait of Hormuz. And then you have whatever goes on in Tehran. Right. And we know that those are two very different groups right now. Which actually leads you to believe that this is not likely to achieve once we get to that 60 day marker and then the likelihood that you see crude oil stay bid like this and Karen's point earlier, maybe we don't see an eight handle, but I think somewhere between 70 and 80 is the sort of thing that's going to keep oil at the pump or gas at the pump well bid probably closer to $4 than $3.
- [22:58]
Melissa Lee
This will be a true test for the markets in terms of how much it can look past the situation in Iran. You were mentioning earlier that headlines don't seem to move the markets. You have to wonder if what Centcom is tweeting is a series of powerful strikes against Iran will meet that bar.
- [23:15]
Courtney Garcia
Exactly my thought. Exactly. Because we're just talking about this reaction where markets aren't reacting on it. So I think the question is are they going to start pricing further and where they are looking out because at this point with where energy prices are, I still don't think we've seen the jump yet. But if you see a large dump that they are expecting more geopolitical turmoil, that will affect inflation, that will affect the consumer. So it's something to watch here. Absolutely.
- [23:36]
Karen Feiderman
I also wonder about this very steep hike, you know, spike rather in the last, I don't know, hour of trading or so how much of this potential news, either that it was leaked. Was leaked, which we've seen before many times.
- [23:51]
Melissa Lee
Right. In terms of the real.
- [23:53]
Karen Feiderman
Is that already priced in? I don't know.
- [23:55]
Melissa Lee
Right. If we can pull up some of the after hours.
- [23:57]
Guy Adami
Yeah, pull it up. Cracks.
- [23:59]
Melissa Lee
See, because we did see that spike at the late in the session there you see that spike late in the session on news that the US is basically saying, you know what Iran, you can't sell crude anymore. And we'll see what the reaction is here in terms of this news that the US has begun launching a series of powerful strikes against Iran. We'll keep you posted on that. Meantime, we do have a news alert on future World cup media rights. Alex Sherman is on the fast line with those details. Alex.
- [24:30]
EY Parthenon Representative
Thank you, Melissa. Yes, some news here. Disney, YouTube and Netflix I can report, are among companies that are interested in bidding for the World cup for 2030 and 2030. Four executives that I spoke to are estimating that the total amount of money may go as high as $2 billion for the world cup package. And part of that is that I'm told FIFA has already alerted media companies that it plans to sell the Spanish language games with the English language games in one combined package. That is different from this current World cup and Cups past where the packages have been split between English language rights and Spanish language rights. Fox currently owns the English language package. Telemundo, owned by NBC Universal, owns the Spanish language package. So you put those two together, you're going to get a much higher audience for these games, which is already massive in this World Cup. We're seeing record setting numbers out of it. One quick note though, that the 20, 30 games World cup is in Europe and Morocco and then the 2034 World cup is in Saudi Arabia. So the time difference for the US obviously plays into the value of these packages. So perhaps the ratings won't be as high for both of those World Cups as what we've just seen.
- [25:46]
Melissa Lee
All right, Alex. Thank you. Alex. Sherman, I don't know if you're. You're not watching any.
- [25:51]
Guy Adami
I'm locked in. The lads on the pitch. It was, it's, it's scintillating. I am riveted by it. Did you see that Argentina match today? It was incredible.
- [26:00]
Edward Jones Financial Advisor
Pete Kane.
- [26:02]
Melissa Lee
Actually, I did see the.
- [26:02]
Dan Nathan
You're not watching it right now.
- [26:03]
Melissa Lee
I saw it. I saw. That's over.
- [26:05]
Dan Nathan
Well, I know it's the highlights.
- [26:07]
Melissa Lee
Okay.
- [26:09]
Dan Nathan
I was working earlier in the day.
- [26:11]
Guy Adami
Speaks to the power of life. Why live sports is so important. I mean that is the savior for everybody.
- [26:18]
Melissa Lee
There's a lot more fast money to come. Here's what's coming up next.
- [26:23]
Fast Money Promo Announcer
Media mavens descending on Sun Valley. Why AI is top of mind at this year's summer camp for billionaires. And who might headline the next wave of media M&A plus Chimera Therapeutics under the microscope. A closer look at the stock's stellar run and whether the biotech can rewrite the playbook for hard to treat diseases. You're watching Fast Money live from the NASDAQ market site in Times Square. We're back right after this.
- [26:59]
Melissa Lee
You're more than just one thing.
- [27:00]
Chase Sapphire Advertiser
Your vehicle should be too. More connectivity when you're the boss.
- [27:03]
Melissa Lee
Hey, Google, when's my next meeting? And more space when you're the mom. Everyone in the all new Mazda cx. Five more to move every side of you.
- [27:11]
Chase Sapphire Advertiser
Google is a trademark of Google llc. Sequences shortened and simulated this year's girls trip to telluride was the best. We one upped ourselves with my Sapphire Preferred card and with 5 times points on Chase Travel plus 3 times points on vacation homes with top brands, we got this incredible cabin.
- [27:26]
Megan Casella
It was a mansion.
- [27:27]
Chase Sapphire Advertiser
And with three times the points on dining, we ordered a Wagyu steak dinner
- [27:30]
Megan Casella
and that pistachio gelato was too good.
- [27:33]
Chase Sapphire Advertiser
So where should we go next year?
- [27:35]
Melissa Lee
I've got ideas.
- [27:36]
Chase Sapphire Advertiser
Chase Sapphire preferred the card that's preferred for a reason. Cards issued by JP Morgan, Chase bank and a member FDIC subject to credit approval terms apply.
- [27:44]
AT&T Business Wireless Advertiser
Not every sale happens at the register. Before AT&T business Wireless checking out customers on our mobile POS systems took too long. Basically a staring contest where everyone loses. It's crazy what people say during an awkward silence. Now transactions are done before the silence takes hold. That means I can focus on the task at hand and make an extra sail or two. Sometimes I do miss the bonding time.
- [28:08]
Sometimes AT&T business Wireless connecting changes everything.
- [28:16]
Melissa Lee
Welcome back to Fast Money. Shares of Take Two popping early in the day after a report from LightShed Partners that NBCUniversal could buy the video game maker. Last week, Comcast, a former parent of cnbc, announced plans to spin off NBCU and Sky Networks into a separate public company Such media deal, making sure to be front and center at the Allen Co. Conference in Sun Valley, Idaho this week. Julia Boorsen is there has more on what to expect. Julia
- [28:42]
Julia Boorsen
well Melissa, we saw dozens of private jets at the airport. Many of the media moguls have already arrived here in Sun Valley. Disney CEO Josh Tomorrow is here along with his predecessor Bob Iger. They're here on the heels of this morning, ABC filing an aggressive rebuttal to the FCC Pushing back on on the FCC. ABC is pushing back on the FCC's demand that the network file early for license renewal, saying the FCC's actions threatened to upset decades of settled law. Meanwhile, on the heels of Comcast announcing its split, Brian Roberts is here along with Mike Kavanaugh who will run NBC Universal Post spinoff Banker sources telling me that those entertainment assets of NBC Universal are sure to draw the attention of the tech giants who will be here, such as Amazon, Apple and Netflix. Their CEOs are all expected to be here. They might see this as a last chance to snap up a big studio and theme parks. We also caught Warner Brothers Discovery CEO David Zaslav walking in, but he did not want to answer my questions about the EU just delaying the deadline for approval from today until later this month. That EU approval and we'll have to see if Netflix CEO Ted Saranos, along with YouTube CEO Neal Mohan, both of whom arrived today, meet up with the many sports leagues conditioners commissioners who are here amid talk of so many more sports rights going to streaming. Of course, in addition to that news that Alex Sherman just remember about the World Cup. Now, our first interview tomorrow is with NHL commissioner Gary Bettman, and we'll have a lot more as the conference kicks off with the first sessions tomorrow morning.
- [30:27]
Melissa Lee
Melissa, Julia, thank you. Julia Boorstin, Is that a painting she's in front of or was that every year? Right. You look at it and you're like, that's stunning. That's got to be fake. But it's actually real. It's real.
- [30:39]
Guy Adami
We actually live in a real world. You can actually do things like that.
- [30:43]
Melissa Lee
Stunning back, go travel to some place,
- [30:45]
Guy Adami
think about what we've done in the last minute and a half. We talked about live sports, the importance of that, and then gaming, which is sort of the other side of live sports. And these two worlds, obviously not colliding, but we're having this conversation within 5 minutes of each other. And the importance of it. Dan for years talked about somebody should buy Electronic Arts. That sort of now all these things are starting to happen right before our eyes. I think traditional media understands the importance of both those groups.
- [31:09]
Melissa Lee
I mean, that report mentioned Nintendo, it mentioned take to and the intellectual property that goes along with. I mean, think of the Mario movie that just came out, things like that.
- [31:19]
Dan Nathan
Yeah. And I think it's important to remember, you know, EA was a financial deal. Right. And then Microsoft and Activision was a strategic deal. And this would obviously be a very strategic deal. The idea is that you could kind of get leverage this content, get paid subscribers, that sort of thing. It makes sense in light of what we've seen over the last few years with this. But again, I think you look at Microsoft, they're cutting jobs at Activision, across Xbox and that sort of thing. There's probably a way in an AI world to run these businesses a lot more efficiently.
- [31:47]
Melissa Lee
What do you think of that report?
- [31:49]
Karen Feiderman
I thought it was interesting. I think, you know, you got to try to be creative. Right. I mean, things are changing so quickly. The landscape is changing. I wouldn't a year ago I would have thought, I don't really see it at all. I don't see it fully now, but I do. You know, when you think about some past mergers in the past, obviously if they're past their past, but you think of ones like, you know, Fox selling that was timed superbly to Disney and then you think of, you know, Time Warner a couple of times. So I don't know, I would not be a very good media banker right now because the landscape changing. I would say don't, don't make a giant bet, but that might be the exact thing you need to do.
- [32:31]
Melissa Lee
Coming up, a major milestone for Chimera Therapeutics. We'll hear from the biotech CEO on its latest trial data and how pills could transform treatment of some of immunology's most challenging diseases. Fast Money's back into. Welcome back to FAST Money. Stocks pulling back today. The Dow shedding 130 points after hitting intraday records. The S and P losing half a percent in the NASDAQ led the declines down by more than 1%. Amazon confirming details after hours of its nearly $25 billion bond sale, saying the multi tranche offering will have rates between 4.6% and 6 and a quarter percent. Space X meantime dropping nearly 7% during the regular trading session even after a slew of bullish initiations on Wall Street. Raymond James slapping a street high price target of $800 on the stock that is more than five times today's closing price and would imply a market cap of over $10 trillion. And Eli Lilly surging 3% to close at a record. JP Morgan raising its price target to $1400. That's up from 1300, citing continued strength in the GLP1 business both in the US and internationally. Just quickly on the Amazon since we are getting the percentage four and a quarter six in the quarter. I'm wondering what you think of that.
- [33:48]
Karen Feiderman
I mean it's a great credit. I'm not surprised that you know, if you look at the balance sheet also in great shape. This is very different than when we talk about Oracle's needs for example. I think that would be different price.
- [33:59]
Melissa Lee
Yeah. I think it's also different from we talk about other hyperscaler bond issuer issuance because Amazon over the course of its history has raised money for build outs of various kinds without problem at all. Right.
- [34:12]
Guy Adami
But as Dan pointed out earlier, you know, the canary in the coal mine continues to be how poorly these private equity look at Apollo, look at Blue Owl. I mean I think they're trying to tell you something we'll talk about I'm sure at a later show.
- [34:23]
Melissa Lee
All right. Meantime let's get to Chimera therapeutics jumping almost 4% today to notch a record close. The biotech recently giving a better than expected timeline for its fast tracked eczema oral treatment trial shares are up 172% in the past year. Chimera founder and CEO Nello Manolfi joins us now on set. Nello, great to have you with us.
- [34:44]
Nello Manolfi
Thanks for having me.
- [34:45]
Melissa Lee
Can you explain sort of the backbone of what you do? Targeted protein degradation.
- [34:49]
Nello Manolfi
Great. So this is a technology that allows us to go after targets that have been undrugged over the years. So we're able to open up new target space, new biology and more importantly, new therapies for patients that want oral drugs. So this program that is the focus of the attention today allows us to go after, let's call it the most common allergic diseases, diseases like eczema, like asthma, potentially even food allergies that are completely underserved by existing therapies. If you look at the number of patients that suffer from these diseases globally are close to 150 million. And only 1 or 2 million have been those with systemic advanced therapy, meaning therapies that actually address the underlying condition. And most of these are injectable biologics. So we have this, I call it once in a generation opportunity to bring forth an oral pill that gives patients control of the disease and will be the first oral drug, the first oral pill to treat eczema, asthma and all these other allergic diseases. So a small company like Chimera has probably one of the most exciting programs in the industry and I think that's where a lot of excitement is coming from.
- [36:05]
Melissa Lee
So basically this mechanism can be applied for the treatment of these various diseases as a platform.
- [36:11]
Nello Manolfi
Yeah. So the mechanism called targeted protein degradation allows us to go in the cell where most disease causing proteins are. And unlike injectable biologics, being able to address the disease at the core, where the disease is propagated, and again with the potential of having efficacy or safety like this injectable drug, but the convenience
- [36:33]
Guy Adami
of an oral pill, I think 15,1 5% of your market cap is cash and cash equivalents, which I think funds you through 29. Correct me if I'm wrong, that's a huge Runway in your world. Means you could probably go it alone. Is that fair to say?
- [36:47]
Nello Manolfi
Well, the plan is to build a global commercial company. We, this has been our vision since we started. The company we have funded that we've raised over the past 10 years close to $3 billion. As you said, we still have one and a half that will allow us to get into 29 and more importantly, get us close to our first marketed product. And I think the mission about going it alone is not so Much of a desire to do something that very few companies have done. But I feel it's the responsibility to take a new drug modality all the way to patients. And I think no other company can do it better than Chimera, because we have the passion, the commitment, the team, and the understanding of the technology that nobody else would do.
- [37:33]
Melissa Lee
So do you think you have enough money to. When we say, you know, there are a lot of end points you can define as sort of like the point in time, is it just to get you through phase three and FDA approval? Is it also for commercialization, or do you look to a partner to help you with that?
- [37:47]
Nello Manolfi
So the money that we have through early 29 would allow us to go into phase three and probably complete at least one of the phase three studies will not support commercialization of the drug. That does not mean that we need a partner to commercialize the drug. It might mean that we need other means to bring more capital, whether it's through equity financing or other vehicles, to continue to fund the program. So partnership is an option, but it's not a must. Option, I think, is one of the options that we might consider down the road. But as I always say, I like to be in control destiny. And there is no better way to do it than if you have the commitment to the program, you have the right data and the ability to continue to build on the enthusiasm that already is out there for us in the investor community, in the doctor community, and in the patient's community.
- [38:35]
Melissa Lee
And just to sort of give us some perspective, the atopic dermatitis trial that you're in right now, how big is that market?
- [38:44]
Nello Manolfi
Well, if you just look at the US we're talking about patients that are diagnosed with atopic dermatitis, close to 40 million patients. So if you look at the most successful drug, I'm going to do a bit of advertisement for Sanofin Regeneron. The drug is called Dupixent. That drug has been probably in between 1 and 2 million patients. So the penetration in all diagnosed patients is in the single percentage. And the main reason for that is because patients want oral drugs. They want to be in control of their disease. They want to have a therapy that is something that they're used to, they've done all their lives. And so the opportunity for chimera and our KT6 to 1 program is to actually being able to present to patients what they're looking for, an oral drug that again, will have the efficacy, the safety and the convenience that they're looking for. And that's true for also other diseases we're seeing with the GLP1s. We're seeing in some areas of oncology where orals are changing the landscape and are activating patients that are sitting now at the sidelines because they're not comfortable with existing therapies.
- [39:49]
Melissa Lee
Nello, thank you. Keep us posted on developments. Nello Manolfi of Chimera Coming up, CNBC investigates how a Shanghai based company the Pentagon says has ties to the Chinese military has become embedded in America's autonomous future and the concerns about the national security risks it's raising. More fast Money right after this. Welcome back to Fast money. The race to build out physical AI is on from self driving cars to humanoid robots. And at the center of it, Hesseye Technology, a Chinese maker of lidar, the sensors that allow these technologies to see their surroundings, but he say has been blacklisted by the Pentagon, which says HESI has ties to China's military. Despite that designation, HESI has partnerships with leaders from Nvidia to Amazon Zoox and its reach is expanding legally because being on the blacklist only prevents HAS I from securing DoD contracts. That, though, raises questions about the security risks the public may be exposed to, including the possibility that China could access the data the LIDAR collects or use malware to tamper with the lidar. Here's a preview of blacklist.
- [41:02]
Julia Boorstin
Questions about how and where Chinese made LIDAR sensors are being used come alongside broader concerns about Beijing's oversight and its potential to access data collected by Chinese companies. The SEC requires China based companies to disclose the risk of Chinese government intervention or control. In its SEC filings, HESAI has disclosed that the Chinese government has significant oversight in regulating our operations and may influence or intervene in our operations at any time. Craig Singleton is a Senior fellow for China at the foundation for Defense of Democracies, a conservative D.C. based think tank known for being critical of the Chinese government. He says that in part means HESAI can be compelled to share data collected by these LIDAR sensors with the Chinese government.
- [41:50]
Melissa Lee
There is no way in your mind that HESAI could be operating as a respectable, dependable company that will not transmit information to the Chinese government.
- [42:00]
Dan Nathan
Whether they want to transmit that information or not isn't a question. It's mandated by law.
- [42:05]
Melissa Lee
David Lee is a founder and the
- [42:07]
Julia Boorstin
CEO of Shanghai based Hesai Technology. He says HESAI has no data to share.
- [42:13]
Melissa Lee
So where does the data live? Is it on the sensor? It's only on the computer. Does it go anywhere else?
- [42:21]
Dan Nathan
So first, what I do know is it definitely doesn't live in my sensor because we don't have the capability to store that.
- [42:29]
Melissa Lee
Is it physically impossible even if we wanted to? It's physically impossible to do that because our device just don't have the memory to store that. Lee also told CNBC that Hesai has no way to communicate with the sensors once they're shipped out and that the sensors send data directly to the company using them, not to his side. The company further said its products are sold exclusively for civilian use and it is appealing the blacklist designation in federal court. In a statement to CNBC in Video wrote its autonomous platform is consistent with all regulatory and commercial requirements. Zoox did not respond to our request for comment. To see the full story in our extended interview with Hessey's CEO, go to cnbc.com blacklisted and we talk about AI every night. We talk about this build out, we talk about autonomous vehicles. All of it depends on these low cost sensors because you want this technology to proliferate. Low cost is one way of doing it and there aren't that many options. In reality, a US based sensor can cost up to 50% more than a HESI sensor according to one US competitor that we contacted. So when you have a choice amongst these sensors, you're going to choose something that is low cost and good.
- [43:43]
Guy Adami
Yes, you're going to low cost. Right. And what are the ramifications around that? And one thing I've learned working with you now for 18 years. Is that right?
- [43:52]
Melissa Lee
Yes.
- [43:52]
Guy Adami
When you do these docs or whatever you want to call this, you are typically three months ahead of the story that breaks. So this is something that people should very close attention to.
- [44:01]
Dan Nathan
Amazing reporting. I can't wait to watch the whole thing. You know, it's kind of topical right now. If you think of Apple, you know, lobbying the White House to buy cheaper memory out of China, I mean, this is something we are so tied. And I know you guys talk about it in this doc, you're so tied to the infrastructure or at least the supply chains of all of these components that are going in really key technologies for us. If you think about physical AI, where are we getting a lot of the components? China. And there's just going to continue to be this sort of overlap between government demand, consumer demand. But the one thing I'll say is Waymo is building their own lidar so they are vertically integrated. And that's something I think should continue to probably, you know, be in the benefit of Google, which owns Waymo, obviously.
- [44:43]
Karen Feiderman
How did you get to This.
- [44:45]
Melissa Lee
I saw a press release during the Consumer Electronics show about his eye expanding its partnership with Nvidia. Jensen Huang was on stage at the Consumer Electronics show and in his keynote he talked about the Hyperion architecture, the platform that they are offering OEMs and saying that they want this to be the backbone of the future. They want it to be in every autonomous vehicle. So the question is if that's in every autonomous vehicle, his EYE could possibly be in every autonomous vehicle. It is a choice for automakers in terms of a lidar partner. They could choose his side, they could choose others, probably at a higher cost, but. But there you are. And so that's how the idea came about. And the question is right now, as we are building this out, do we want to question now and see what we're getting into or later on find out that it is something of a risk and that we have to replace it, which we've been, which we have seen in the past with Huawei technology in terms of the build out of telecommunications.
- [45:39]
Guy Adami
The reporter in her comes out
- [45:43]
Karen Feiderman
Nancy
- [45:44]
Melissa Lee
Drew and the Hardy Boys, Sherlock Holmes, all of it combined. Lois Lane. Coming up, a soda pop for cocoa. Coca Cola. What is feeling the stock's record run and is there enough fizz for shares to keep climbing from here? Final trade time. Courtney, we've talked a lot about M
- [46:06]
Courtney Garcia
and A activity and the banks coming up with earnings. I think Goldman Sachs is one to
- [46:09]
Megan Casella
take a look at.
- [46:10]
Melissa Lee
Karen.
- [46:11]
Karen Feiderman
I love when you do docs, Missy. She like, really, you're just really into it and you just dig up stuff that other people wouldn't find. It's pretty impressive, I gotta say.
- [46:19]
Melissa Lee
So anyway, thank you.
- [46:20]
Karen Feiderman
Congratulations. Amazon. The debt offering, to me, I know it's a lot of money. $25 billion. Not really to them. I like it here.
- [46:28]
Melissa Lee
Dan.
- [46:29]
Dan Nathan
You used to be into these vice stocks. Those were fun, you know what I mean? There's probably something else horrible. Oh, Coke. Didn't you do coke?
- [46:36]
Melissa Lee
I like PG these days. Coca Cola.
- [46:40]
Dan Nathan
Yeah, yeah, she's. I'm fading the mood in igv.
- [46:45]
Guy Adami
Shout out to my cousin, Michael Rocco Rock is retiring after a long time. Love him, by the way. Cop.
- [46:50]
Melissa Lee
Thanks for watching. Fast Mad Money starts right now.
- [46:56]
Fast Money Disclaimer 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 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 for air during sleep?
- [47:30]
AT&T Business Wireless Advertiser
Daytime sleepiness I'm Shaquille o' Neal and this shouldn't be anybody's experience Ask your doctor about Zepbound Tirzepatide, the first and only FDA approved prescription medicine for moderate to severe obstructive sleep apnea in adults with obesity.
- [47:44]
Shaquille O'Neal
Zepbound is a prescription medicine used with a reduced calorie diet and increased physical activity to help adults with moderate to severe obstructive sleep apnea, OSA and obesity to improve their OSA. Zepbound is approved as a 2.5, 5, 7.5, 10, 12.5 or 15 milligram injection. Zepbound contains Tirzepatide and should not be used with other Tirzepatide containing products or any GLP1 receptor agonist medicines. It is not known if Zepbound is safe and effective for use in children. Don't share needles or pens or reuse needles. Don't take if allergic to it or if you or someone in your family had medullary thyroid cancer or if you've had multiple endocrine neoplasia Syndrome Type 2. Tell your doctor if you get a lump or swelling in your neck, stop setbound and call your doctor if you have severe stomach pain or a serious allergic reaction. Severe side effects may include inflamed pancreas or gallbladder problems. Tell your doctor if you experience vision changes before scheduled procedures with anesthesia. If you're nursing pregnant plant to be or taking birth control pills, taking Zepbound with a sulfonylurea or insulin may cause low blood sugar. Side effects include nausea, diarrhea and vomiting, which can cause dehydration and worsen kidney problems.
- [48:51]
AT&T Business Wireless Advertiser
Talk to your doctor, call 1-800-545-5979 or visit zepbound.lilly.com.