Digging in on Market Volatility… And SpaceX Hits New All-time Low 7/27/26

15:00At some point, banks are going to have some issues here. Right now, banks are a safe trade.

15:04Melissa Lee:Yeah, you know, I'm glad you brought that up. I'm not one of the smart guys. The smart guys are writing about this all over Substack. It just seems like this is one that we're going to, if you're not paying attention, this is going to be like a Q1, Q2 thing in 2027, this credit situation as it relates to hyperscalers. Because if the stocks can't perform well, there's no reason that the credit should perform well. And if you have a push out, today's thing with NVIDIA, I mean, as soon as I saw that headline this morning, the first thing I saw, I was like, holy, you know what? I mean, like this, it couldn't get more bearish, you know, and the fact that NVIDIA closed down 5 % today is telling you all you need to know.

15:38Melissa Lee:So if you want to extrapolate that to the banks, I think it's also interesting that Goldman Sachs has traded very poorly since after its earnings. It made a new all-time high at a huge day. The lows today was down 10%. If you think that open AI is going public this year, I mean, you've got another thing coming. I mean, this thing sounds like a dumpster fire. And it's felt that way for almost six to nine months right now. And this is the one. This is the one that's supposed to keep everything afloat. And NVIDIA. And they're backstopping them. Yeah. I mean, I got 250 billion. Yeah. So I totally agree with that.

16:11I also think, you know, a company that seems to have a government or is looking for some kind of a government bailout right now. I mean, that's not what they're calling it.

16:18Tim Seymour:But boy, it feels like the stake, the government, whatever you want to call it. But I they'd be rushing to market if they could. They missed it, by the way. Pat Elon on the back. He got out there at the right time.

16:30Guy Adami:I mean, the thing about Goldman and Morgan Stanley, they J.P. Morgan was trailing them on a four or five year relative low basis. They were just so far ahead of their peers. Those two sort of midsize broker dealers, whether it's Raymond James or a Jeffries, they are overdone. J.P. Morgan's the one to own here. All right.

16:49Tim Seymour:Meanwhile, the SIBO sees a trend that suggests risk aversion in the market. Let's bring in Mandy Hsu, the firm's head of derivatives market intelligence. Mandy, great to have you with us. Great to be here. So risk aversion meaning what? Not fans of technology anymore or just overall markets? Sure. So let me be clear. I think the option market is signaling more caution in the forward outlook right now, not outright bearishness. And I say that on the back a couple of things. So first, in terms of what traders are pricing for expected volatility going forward, they're now expecting volatility to be much higher in the next 30 days than what we've seen over the past month.

17:24So that volatility risk premium, the difference between implied versus realized volatility, went from negative to positive and is trading at historically elevated levels. The second thing is that we're seeing a pickup and hedging demand. So demand for index level protection, S &P puts, that suggests that people are turning a little bit more cautious in their outlook. And the last thing to flag is that, you know, while the VIX index so far has been relatively calm, you know, around 18, we're seeing very elevated volatility at the single stock level. So single stock, average single stock volatility trading close to 50.

17:57And that spread between single stock volatility versus the index at a record high.

18:02Melissa Lee:And that's what we've talked about. So is that a precursor to the VIX or is that just sort of an outlier and it's going to come back to normal at some point? Sure. That's a great question. And one we've been getting quite often recently. So I would say it can be sustained if you think that, you know, the risk in the market is going to be remain fundamental regarding like earnings, regarding the AI trade. We've gotten more and more questions around when does this kind of risk turn from idiosyncratic risk to more systemic macro risk? So two ways, I think. One is obviously we get renewed macro risks such as inflation with geopolitics.

18:36The second is, you know, if the AI trade, which right now has been more about picking winners and losers, turns more into systemic risk, right? Whether that's the circle of financing that we're talking about through the credit channel, whether that's just a pullback in CapEx, which, you know, as we know, that's been kind of boosting up U.S. GDP. So if we do see a pullback there, you know, that could have broader implications in terms of what it means for GDP growth. So I definitely see potential for it to move both ways. I would say right now the market is pricing for it to remain more of a fundamental idiosyncratic risk.

19:09But certainly more and more investors are asking the question, when does this AI trade become, you know, move away from idiosyncratic towards more systemic risk?

19:17Melissa Lee:Mandy, you know, the S &P has showed great relative strength to the Nasdaq 100. Now, if I'm looking at SPY options at the money, you just said the forward sort of outlook for volatility. I'm looking at 3.2 percent implied move between now and August expiration. You know the math. Simply, that's 1.6 % if you want to buy a call or 1.6 % if you want to buy a put looking out to August expiration, the 21st. Think about the S &P. We're going to get probably 40, 50 % of S &P earnings in that time frame. That seems way too cheap to me. Yeah, so the way that people have been playing earnings is not necessarily through index-level options, right?

19:52Because as we talked about. Well, I don't mean playing earnings.

19:54Melissa Lee:I mean everything. I mean geopolitics. I mean fundamentals. I mean market sentiment. I think that is exactly the reasoning behind kind of this recent pickup and hedging activity that we have seen is people looking at kind of the absolute level of volatility, right, with the VIX at 18 and saying kind of given the catalyst that we have on the horizon, maybe it is a good idea, especially with levels of correlation and dispersion at such extremes to own some index level volatility. And as you look at the proportion of MAG7 that are part of those indices and because they're breaking down, I mean, are investors just following that in?

20:29I mean, it's pretty clear that what we saw lead the indices, and I always remember from my long, short equity days, the index option was the one that had you sleep at night but didn't do anything for you until there was a bloodbath. Yeah. What's interesting on the Max 7 front, on the tech front, is that retail sentiment has actually shifted quite notably kind of beneath the surface. So when we look at subsegment of the tech trade, like the hyperscalers in particular, we've actually noticed a pickup and bullish sentiment amongst retail when it comes to option flows that we're seeing on exchanges.

21:00So the percent of trades that are retail investors buying call options to open, that recently hit near an all-time high that we have going back, you know, history going back six years. So that's telling you that retail investors coming in, maybe looking at the relative underperformance of these names and using options to express a bullish view. And then on the flip side, on the chip names and the memory stocks in particular, we're actually seeing a pullback in terms of retail sentiment, bullish sentiment in there. So it's been an interesting kind of mix. I think a lot of times people think of retail investors as being very momentum driven.

21:30What we're seeing actually, they're becoming more sophisticated in how they're using options.

21:35Tim Seymour:All right, Mandy, great to see you. Thank you, Mandy Hsu, SIBO. Coming up, a software reboot, the sector outperforming ahead of a key earnings next week. A look at the stocks leading the charge and whether to believe the latest bounce that's next, plus trading the minor meltdown. The slow drip lower in GDX is catching one of our traders' attention, so it was a time to start panning for bargain. We'll debate that. Don't go anywhere fast when he's back in two.

22:02Tim Seymour:The board recommends approving... Regarding that seat on the committee, we're promoting... To boost quarterly earnings...

22:07Melissa Lee:Every day, shareholders meet to discuss important matters about the companies you invest in. Now you can easily make your voice heard. Vanguard Investor Choice gives you a say in the companies you invest in. With just a few taps, you can set your proxy voting preference for your index funds. Visit vanguard.com slash investorchoice to learn more. Vanguard Investors own shares of our index funds, which own shares of the companies they invest in. Available for Vanguard Index funds that participate in Investor Choice, Vanguard Marketing Corporation Distributor. How do you turn your strategy into action and action into impact?

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23:31Tim Seymour:Wayfair, every style, every home. Welcome back to Fast Money Software Stocks. fighting back today, the IGV up more than 3%. It's best day in a month, Asana, Ring Central, Atlassian among the big winners in the group. And ServiceNow, by the way, jumping almost 7%. That's more than erasing the losses after Wednesday's earnings report. Microsoft, of course, the next big name in the space reporting on Wednesday. That stock is up today, but still the worst performing MAG7 name over the past year. What do you make of this bounce?

24:00Melissa Lee:The Pavlovian response, if I thank you, of basically getting out of semis, getting out of memory going back to software. We've seen it at least six or seven times over the last month, and I think that's what we're seeing now. I do think a short-term bottom is in on the software front. If you want to own IGV, I think you can here. I think it's got low 100s written all over it.

24:22Guy Adami:So forget about downside for a second, and there's always the risk of that, but it doesn't have any life, right? Does it really bounce here and do something? Maybe it outperforms because the denominator semis, right, the ratio chart get worse. And I think that's the case. But there's just nothing here that's exciting to my eye. These are sort of dull charts. And I would resist the temptation.

24:46Tim Seymour:And Microsoft falls into the dull chart category.

24:49Guy Adami:Okay. So maybe it beats and it goes up three, four percent. But I mean, you're talking about stock that was up at 550 and it's sitting here at 390. What's going to really fix it? It takes a lot of time. I think that's right. Although I do feel and I again, I defer to the chart master here. I mean, that that chart isn't sexy, but it does feel like it's de-risked and it does feel that the group is in a place where if I'm going to buy one, it's Microsoft also subscribing to the Apple theory. You know, Copilot's still going to be sitting out there for people on their desks and it's going to pick it up.

25:18And at this point, if I hear Microsoft pull back on CapEx, I actually tickets good news for Microsoft and bad news for Amazon. And I just think Apple and Microsoft have a little bit of kind of legacy, both enterprise and retail platform base that serves them well.

25:34Guy Adami:Yeah, go ahead. I was going to say... I love to hear from you. I just spoke. How about I yield the floor to you? Go ahead.

25:42Melissa Lee:I mean, I have nothing to say about the funny metals until you finish it off.

25:45Guy Adami:One could just say, hey, look, if any time Microsoft's down 36 % from its high, you buy it, hold it for two, three years, you probably do pretty well. That is the circumstance now, right? So you could say, but that's just the buy and hold thing. Here and now, is it really time and is exciting? No. To your point, it's been de-risked, down 36%. But I just, you know, find something else.

26:05Melissa Lee:You know, I wonder if you could make that same argument about Palantir. I mean, this is one of the only names within the software space that you could have said that they're well positioned to pure play to some degree on how they're using their AI platform and what the opportunity is for them. Because again, they had half as far as government, half was the enterprise, and it seemed like enterprise was picking back up. This stock at its lows last month was down 50 % from its all-time highs. I mean, this was literally, again, the poster child for how software companies might avoid the disruption that we're seeing in a lot of SaaS names.

26:37Melissa Lee:And, you know, it's been cut in half. It's at 40 times sales, you know, right now. Now, obviously, it was trading at 80 times sales six, seven, nine months ago or whatever it was. And so like a lot of the air is coming out of these names. I do think it's interesting that this one underperforms over the last month or two, the IGV. This sounds like silver lining, Dan, on Palantir. I mean, I'm... No, this thing's going much lower. I mean, like, it's just so obvious to me. And I love it that, wasn't it Michael Burry, like, owns the, like, the long dated 50 puts, like, and he just keeps adding to them, I think, if you read his sub stack.

27:10Tim Seymour:Do you see the same sort of circumstance Anson Palantir.

27:13Guy Adami:Same circumstance. Generally speaking, the burden of proof is on the bull. The bear just points to the last eight, ten months and says, look, man, I'm not interested.

27:22Melissa Lee:You know what's amazing, Melissa? I know you know this.

27:24Tim Seymour:So many things are amazing. Oh, boy.

27:27Melissa Lee:Well, Silver Linings Playbook is a great movie. Bradley Cooper and Jennifer Lawrence. George Potter Hoya, by the way. He is. But they're both huge fans of Fast Money. I know this. I know this. Sometimes they watch it together.

27:37Tim Seymour:I'm sure they do. We say sarcastically. A lot more Fast Money to come. Here's this coming up next.

28:11Guy Adami:Live from the NASDAQ market side in Times Square. We're back right after this.

28:23Tim Seymour:The board recommends approving. Regarding that seat on the committee, we're promoting quarterly earnings.

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29:41Take home the small stuff that day and get the big stuff shipped fast and free right to your door. Shop the sale July 23rd through 27th at the Wayfair store at Edens Plaza in Wilmette.

29:52Tim Seymour:Wayfair, every style, every home. Welcome back to Fast Money. Since hitting a record high in early March, the VanEck gold miners ETF has been in a notable downtrend, losing more than a third of its value from its peak. The fund's top holdings all down 20 percent or more since that time. Guy, you flagged that chart.

30:11Melissa Lee:I did. So the all time high was 117. We recently traded down to a low that we made, I think, in November of last year. I think this downtrend series of lower highs and lower lows is about to be broken to the upside. I believe in gold. I think when things, I think there's a very good chance that at some point a bond market that deteriorates, which I think will happen, will be bullish of gold. And I think you want on the gold miners here.

30:35Guy Adami:So it's really the same circumstance as some of the other things we just talked about, where there's a lot of damage done and it would take a lot to get this back up on its feet. But as a pair to SPY, I think that's the way to go after this. So down 40 percent from its peak of just four or five months. So I would take Guy set up with Carter's charts and say this is exactly the sequencing that comes when you have a blow up on the credit side that's going to take the Fed out of the hike picture and actually push them back into the easing picture. It doesn't happen tomorrow. But this is exactly when you want to buy gold.

31:06Gold is setting you up to be very, very defensive in a world where the Fed is not worried about inflation. They're worried about the opposite. And it doesn't mean inflation goes away like the call. And just because gold went too far, too fast to the upside doesn't mean that a lot of the same thesis doesn't work right now.

31:23Tim Seymour:Yeah.

31:24Melissa Lee:You like gold. I do. And you mentioning in the commercial break, the guy is giddy tonight. You really missed him. Seymour. And I did because you are happy. I'm happy all the time, but I'm particularly happy tonight. But that makes me happy. Right. It's giddy all around, by the way. I raise you giddiness.

31:41Tim Seymour:How about that? It's nice. Coming up, the price of prestige from Manhattan to Miami. Luxury homes are changing hands at a rapid clip. Ryan Sirhant is here at the Nasdaq to break down the hottest markets right now and what comes next for the high-end market when Fast Money returns.

32:06Tim Seymour:Welcome back to Fast Money. Stocks ending the day mix. The Dow adding 250 points while the S &P finished flat. The Nasdaq closing with a small loss. General Motors and Ford hired today after Jeffries upgraded both automakers to a buy. Analysts seeing improving earnings, healthy market conditions and stronger capital allocation, working in favor of the companies. D-Wave Quantum soaring 20 percent after announcing a partnership with AT &T with plans to use its technology for network optimization. And SpaceX, that was down again today, though it did close off its worst levels of the session. The rocket company falling below the$109 mark at its lows.

32:39Tim Seymour:It ended the day 50 percent below the all-time high hit on June 16th. Meantime, the 30-year mortgage rate in your level is not seen in about a year, and median home prices hit their highest level and record last month. But that doesn't seem to be squelching demand among the highest-tier homebuyer. For more on the state of the luxury real estate market, let's bring in Sirhan, founder and CEO and star of Netflix's Owning Manhattan, the one and only Ryan Sirhan. Ryan, welcome to the best month.

33:07Melissa Lee:We should give him a round. This is a fun table. It is now.

33:14Tim Seymour:So let's it's location, location, location. Let's start off in Manhattan. Has a pied-a-terre tax done anything to demand? It's done some to demand for people that are looking just purely at purchasing a pied-a-terre because you have to factor in your annual monthly payment. You know, how do you buy something if you don't know what it's going to cost you year in, year out? But our explanation of it to those purchasers are, listen, there's just a tax class system. If you own a property in your own name and you live in it in New York City, you pay one type of annual property tax. If you own it as an investment, you can't submit for the 17 percent residential tax abatement that everybody else can.

33:51Now, if you own it as a pied-a-terre and you want to leave it vacant, meaning no one in your family, no tenants, no one else. You're just going to leave it vacant. You're going to buy it, but you're going to leave it vacant. You're going to pay more in your annual tax. Everyone got those notices today. I actually got I got one. I got one today. It's in my pocket. Very it's all red. It's very bright. Very, very fast.

34:09Tim Seymour:So but the luxury market has been sounds like it's been very strong. There are there is no longer a housing market in the United States. I just got back from Texas. It's our 17th state. We just opened up across the entire marketplace. There are four Americas. There are cash buyers who live in a completely different world. It didn't used to be that way. Me growing up in the real estate industry, If you're a cash or financing, it didn't really make a difference. Today, it makes a difference. There's cash buyers. There's buyers who need financing, who are paying 6.5%, putting 20 % down. There's owners who are locked into 3 % rates, who are imprisoned in their own homes.

34:43And there's builders. Those are four very, very different kind of cast players. And they look at the world in a different place. Ryan, where's their overcapacity? Where have people gone bananas? If you want to pick locally, but think about it again nationally. We've seen a lot of these trends coming out of COVID. The Southwest was booming. Florida went over the top. Any places that you would say caution? Flash red. So we're seeing buyers continuously flock to new construction. Everybody always wants the next new shiny toy. I was looking at some of our new listings that we have in North North Dallas on Thursday.

35:20And there's a town where two years ago there were 10 buyers for every house. today, there's 10 houses for every buyer, literally in one town over, not a whole lot different, similar school districts. It's like it was two years ago, but the houses are just a little bit newer, but you're dealing with builders. Builders are class system number four. They need to move inventory. They have construction debt. They have mez debt. They have equity partners. They're throwing two years of tax payments, you know, everything at the door. So there are moments where you can negotiate. So the tougher market right now is, let's say, that middle class market who bought a couple years ago, who is now competing against the incentives that builders can give out in new construction.

36:04Melissa Lee:Talk about the Hamptons. You read a lot now. The traffic out there is an abomination. You can take two hours to go from, let's just say, Watermill all the way out to Montauk. So what's the next area in the Hamptons that not enough people are talking about? We're doing deal after deal after deal on the North Fork. The North Fork has always been hot, but it's been a little bit quieter. But now it is equally hot. We have buyers who are saying, listen, I'll look at Quag, I'll look at West Hampton, but I also want to look at the North Fork. Let me see what I can get for my money. If I can get a great property, great taxes, great little town, and I can spend half or 60 percent of what it's going to cost me to be 45 minutes further east, then I'll take a look.

36:47We also have people that are looking all over Long Island. We also have people looking in the Carolinas. I mean, people are location agnostic now. Wherever they can get to easily, whether it's with car or emergency flying distance, they don't have to be in just one spot anymore. We also have Americans buying internationally now in kind of the largest wave that I've seen in quite some time, whether it's due to the current political environment or they can just get more for their money. And we are referring out deal after deal after deal to Portugal, you know, different parts of Spain, across Europe in a way that we never have in my career anyway.

37:22Guy Adami:So which of these very high end holds up the very best in the next real route? For instance, Monaco is always considered the most ultimate luxury place. Prices almost never go down. Sure. Would you say it's Miami? Is it Southampton? Is it Manhattan? Which holds up the very best in the next real instance of duress? Real estate is broken down into four groups, like I said. And then the actual asset is broken down into two. One is as an asset. One is as infrastructure. If the real estate is looked at as infrastructure, so first time homebuyers, middle class buyers, people who are having babies, they're moving, etc.

37:58That's infrastructure. That'll always come and go and override the wave. If the real estate is an asset, like Waterfront, Palm Beach, Waterfront, Sagaponic, Monaco, limited supply, it is a wealth holder, right? That is where you will forever be able to kind of retain value.

38:18Guy Adami:Right. But if you had to pick one, which do you think holds up the very best of some of the ones you listed? Always. Always the asset. No, no, not at which location? Oh, around the world? Just pick some of these very high-end places, Miami, Bridgehampton, Monaco. Let's narrow it down to the U.S.

38:31Tim Seymour:And this is actually a question that I asked Robert Refkin of Compass when he was here. Where would you invest your money right now? What city? I look at job growth. I mentioned, I think a couple months ago, and I got a lot of flack for it, that I like Bluffton, South Carolina. I like Savannah, Georgia. I like that airport. I like the aerospace industry. I like a lot of the job growth and the tech industry that's moving into that location. You can get a lot more for your money and a lot more for your dollar. and you have the ability to grow. And you also have a good state and local government situation that is incentivizing growth.

39:06Tim Seymour:Some good ideas. Ryan, thank you. Nice to see you. Awesome stuff. Coming up, the next evolution in trading. Single stock features launching on the CME inside the newest derivatives product and whether it's a better bet than options. That's next. Fast Money is back right after this.

39:28Tim Seymour:Welcome back to Fast Money. CME Group launching single stock futures today, offering a different way for investors to hedge. 55 of the largest U.S. companies, including NVIDIA, Micron and SpaceX. The cash settled contracts trade nearly 24 hours a day are not impacted by decay or implied volatility like options are. We did speak to Tim McCourt, who's head of products, basically, at CM &E. He said it's much simpler. And also, you can trade this along with all of the index features that you might be trading. So there's a convenience factor as well.

39:59Melissa Lee:I think the ease, I think the cash-settled nature on the close, I think the ability to use stops. I also think a lot of the trading platforms that retail are using, they're getting a lot more familiar with trading futures because index options are traded on most of them. And so, you know, sometimes options or index futures, excuse me, are trading on most of the platform. I think options can be complicated. I think that, you know, again, I did a show with you for 10 years called Obsess Action. I love that show. And, you know, we really broke it down. Well, I know, but that was one of the points.

40:25Melissa Lee:But the point is, in the last 10 years, there's like zero days to actually. I mean, there's so many options. You know how easy it is to hit the wrong button and have the wrong trade? And I just think having one future to trade, I look forward to trading them. I'll just be very clear about that.

40:40Guy Adami:I mean, the sell side will always sell. They'll bring out new products. That's how it works.

40:45Tim Seymour:Well, and of course, this comes alongside the rise of perpetual futures and predictions markets, competition for the retail trading activity from hyperliquid, Calci, Polymark. And around the clock. I mean, around the clock is really important, especially, I think, in index land. But you bring it into single stock, there's news that's breaking. You want to be there. It's a good time.

41:05Melissa Lee:That existential risk that people spoke of and the way the stock traded CME grew from, I think, 320 down to 220, almost in a straight line. I think that's sort of rearview mirror now. And if you look at the last quarter they reported a week or so ago, pretty extraordinary in terms of average daily volume. So good for CME. They continue to be ahead of the curve, Mills.

41:21Tim Seymour:It's interesting. And I was reminded of this by Mike Santoli that once upon a time there was single stock futures. And that was, you know, when you say quad witching, it was single stock. But now there's no more. Right. And then they brought it back. So it's sort of interesting the evolution of it and the timing of the product wasn't good the first time around, you know, 24 years ago.

41:40Melissa Lee:There's no liquidity. You know, I mean, that was a big part of it. And I think that if these markets show us across the board of risk assets, there's nothing but transparency and liquidity. I mean, for the most part. I mean, I'd much rather play these using margin than some of these levered ETFs or reverse ETFs. I'm going to remind that trading profits for the banks are up 75 percent year over year. And this is part of, again, the culture we have in this market. And it's a different culture. And it's a much more. I know there's more vol out there. But my guess is this is exactly why these products, as Carter said, are out there.

42:11Tim Seymour:Coming up, industrials firing on all cylinders inside the sector's massive outperformance this year and whether the chart master thinks this rally is built to last. Next, more Fast Money in two.

42:28Tim Seymour:Welcome back to Fast Money. All eyes might be on on A.I., but the industrial sector has quietly been a real outperformer, They're almost doubling the S &P's performance so far this year. But are there more gains in the sector's future? The chart master has the charts over there by the Telestrator. Chart master.

42:43Guy Adami:Well, they're way ahead of the market this year, but they're trailing on a 15-year basis substantially. And actually, first chart, they match the markets. It's the beginning of GIX data. That's general industry classification standards, the sectors that we now use. It's dead heat with the S &P 500 itself. Okay, let's move on to five identical charts of the sector. One way to draw the lines, one could say it's 50-50, make your bet, or pair of twos, leave it alone. My bet is green arrow up. Look at the next iteration. Same chart again. We have this breakout, this check back, and finding support.

43:20Guy Adami:Another way to draw it, green arrow. Another iteration. It's all the same chart. This is what my eye sees. So we have an uptrend here, here. You almost get there again. I think it gets the green arrow. Let's put the last two charts together. And you'll see here. So, again, a very constructive setup. Green arrow one more time. Final iteration. Another way to annotate the circumstance at hand. Final iteration. I'm a buyer. That's it.

43:50Melissa Lee:Would you agree? Well, you've got to believe in Caterpillar. You've got to believe in both GEs if you agree with Carter. And given to sell-off we've seen in Caterpillar, maybe you've seen enough to the downside. I think they'll report on August 4th, if I'm not mistaken. You've had a decent sell-off. The quarter's going to be great. I think you can get an XLI ahead of the Caterpillar earnings for that reason. I think, first of all, industrial is on a risk-adjusted basis relative to the S &P. That's an interesting look, and I think it's been great. The story of industrials is the story of AI and margin and efficiency, and boy, I think this is a great place to be.

44:21And again, if you look at the SPYV, so the value S &P, some of these names are in there. Yeah, you stay long industrials.

44:28Tim Seymour:What if you believe that the data center build-out is going to stall or bust? Then can you be a buyer of industrials? I'm not even looking at you because that's funny mental stuff. But you want to comment on that?

44:39Guy Adami:But it's not. That's Caterpillar. Union Pacific, the rails are making new highs right now. They have nothing to do with that. You know, Boeing is coming to life, a real laggard. It's a very mixed bag, but it's not just that story.

44:51Melissa Lee:All right. So going back to the credit data center thing, I mean, Meta is raising$12 billion to do a data center. Where is it? at 7.5%. I mean, think about that. And they just raised that for their high period. By the way, demand for those bonds is not high. At 7.1%. That deal's not going well. We saw how Amazon did. So if you think, you know, Mel, you just asked the question if it's going to slow down. It's going to slow down because these guys can't raise. These are the best credits on the planet. These companies had debt-to-equity ratios that were, you know, off the charts, you know, like a year ago or two years ago.

45:20And now they're raising just below, like, freaking junk. 92 % of operating profit is spent on CapEx. 92 % for the hyperscalers. It was not like that a few years ago. And again, this is why. Look at where meta spreads are on their 10-year paper. And again, this is what you guys are saying in terms of what people are writing about in the credit markets. They're issuing long-duration credit, which is a lot heavier, a lot more damaging in terms of the impact. And anyway.

45:48Melissa Lee:The mismatch to the depreciation of the assets that they're buying. I mean, that's it. Jim Chaynos has been talking about it. It seems pretty obvious no one's paying attention to it. By the way, those are off balance sheet obligations a lot of these guys haven't even spoken about.

46:01Tim Seymour:OK, up next, final trades.

46:13Final trade time, Timbo. Yeah, another one of those industrials that's in the GIC sector classification are airlines, Delta Airlines. Buy that one. Carter Braxton North of Worth's Charting.

46:22Guy Adami:The Generac, maker of generators, GNRC earnings coming up. We're buyers.

46:27Melissa Lee:Dan? Yeah, I think the performance of SpaceX, the unlikelihood of the open AI and Anthropa going public, I think is cell rallies in Morgan. House cleaning coming at Shea. By the way, Dan's going to the theater tonight. He's watching, what are you watching? The Odyssey. He's going to get popcorn. So are milk duds, which, by the way, that is the candy of choice if you're going to the movie. No, definitely not. Sell her old. Bye-bye. Ew. Let her see, Melissa.

46:51Tim Seymour:Thank you for watching Fast. See you back here tomorrow. Mad Money starts right now. 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.

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47:56Tim Seymour:Wayfair, every style, every home.