of course, we have "overtime" movers too. >> the market is on a tear. you look at the job report. you wonder how do investors react to that given that context. >> yeah, and then, of course, weighing that against the a.i. secular growth story which, of course, we're seeing play out with broadcom and marvell. >> "fast money" starts now. live from the nasdaq marketsite on a day where the s&p 500 closing at a record high. this is "fast money." here's what's on tap tonight. housing handout in tonight's state of the union, president biden will lay out a plan to help make housing more affordable. tax credits, incentives and the impact on the sector and the challenge this could present to the fed. plus, the chips keep charging, nvidia topping $900 a share today climbing another 3 plus percent for the year. it is up more than 85%. they can't keep this up. we'll debate and netflix putting iron mike into their sports

rink. rivian revved up after its big reveal. tim seymour, dan nathan and guy adami with us. president biden expected to announce a slew of policy proposals on the agenda, a call to increase the minimum corporate tax rate to 28% and the rate and taxes on buybacks and crackdown on junk fees from credit cards to airline and shrinkflation. a proposed $10,000 tax credit for first-time home buyers in an attempt to boost the housing market. could that actually heat up that market? let's bring in diana olick diving into this one. diana? >> melissa, housing affordability is still near a record low. just 38% of both new and existing homes sold in the fourth quarter of last year were affordable to families earning

the median income which is the $96,300. home prices in january also hit another record high and showed the biggest annual gain in a year, so the biden administration is unveiling a plan to tackle home affordability and first they're urging congress to pass a $10,000 first-time home buyer tax credit. now, you may remember during the financial crisis, congress passed a tax credit that ran from 2008 to 2010. it was $7500 and acted as an interest-free loan that had to be paid back over 15 years. now, the biden credit is not just for buyers but also for people who might want to sell their starter homes. that is those lower cost homes which are desperately needed this this market. biden is calling on congress to pass a mortgage relief credit that's $5,000 annually for two years which would be the equivalent of lowering today's mortgage rate by 1.5 percentage points on the immediate yoon home. he's also pledging to build and

renovate more than 2 million homes as well as lower rental costs by expanding the low this can tax credit and that, of course, is for apartment dwellers. melissa, a lot on the plate. >> yeah, i'm just curious, according to the people you speak with is 5.5%, would that facilitate a lot more transactions? >> i think it would. that's what the home buyers say they're buying mortgage rates down to. when you talk to the builders and tell us about the rate buydowns it's always down into that 5.5% range and that tends to get the buyers into the house, whether it's just the affordability or the idea that they don't have a 7 handle and a 5 handle makes them feel better. the tax credit is interesting. i was talking to the nar's chief economist. he said that in 2009, that tax credit, that $7500 boosted home sales by 20% in one year. that's something. >> wow. that's a lot. diana, thank you, diana olick. imagine what fed chair jay powell will think when, you

know, if transactions were 20% because of in. i mean, that is a side thing. great for home buyers and looking to buy a home but in terms of the impact on the economy, there are a lot of implications. >> huge implications when you consider that the federal reserve in the past especially after the financial crisis was targeting housing prices and wealth effect that comes with it. the flip side is true. enormous bubble in terms of assets, financial liquidity everywhere and this isn't make the fed's job any easier. someone that's thought the xhb and a lot of housing duff was toast and we had seen the highs have been wrong. the dynamic around the supply and some of the demographics that are working, obviously you also have baby boomers going in for the second home. i know that seems a little bit greedy at this point when people are looking for the first but there's a lot of demand on the housing market and not a lot of supply and a $10,000 tax credit in and of itself doesn't do it. i think the buyer/seller dynamics are interesting. the government as a contractor who is fixing up houses and flipping them scares the you

know what out of me so it's important news and if you look at the xhb it's been almost a 60% off that market pivot from october 26th. >> hurting the nail on the head. you can throw all the tax credits you want. that's not going to fix the supply side of the equation, which we've talked about for awhile and i will say that last year, i think we were universally sort of loving the home builders for a myriad of different reasons but look at the move over the last, i don't know, nine months or so, tames like toll brothers they're trading like some of these technology stocks. put up a chart over the last year and a half and they have gone vertical in ways these stocks shouldn't do that, so i understand they want to did this. i understand the want to buy votes in the political expedience of this entire thing. i don't think it does anything to solve the problem and tim's point, it makes the fed's job which is difficult that much more. >> it is interesting that this is obviously coming out of the state of the union. it is an awesome time to frame what his next four years might be and if you think about where

he's having problems right now is -- president biden is with maybe a first-time home buyer. i think all of us can think about -- i think tim has been on this point about financial conditions and the wealth effect and -- you know, like we're getting to a point where you can connect a lot of dots. if a couple things go wrong we'll see lots of things come down. the whole issue about the lack of supply in the housing market can get fixed by a good old-fashioned recession or unemployment rate getting above 4% or interest rates staying higher for longer. some of those sorts of things. i don't think this credit is any cause for alarm about renaflati a bubble right now. >> i'm going to jump in and echo a lot of the same supplements. that really is what has fueled that xhb and home builder adjacent type of stocks so the moves are beginning to get concerning. i do think in terms of first time home buyers, this situation kind of resonates with everyone.

it is essentially the american dream so i can understand the political type of support that something like this might garner. with that said in terms of mechanics even if you are buying that at 5.5%, keep in mind a ton of supply still exists between that 2 3/4% so that's not incentive enough for the supply side holders to release said supply. >> unless you have to. i mean, there's a whole cohort of people out there who have to sell for whatever reason because they've had a family, because somebody has died in their family. because they need the liquidity and maybe this is enough to get them to, you know, offset the new rate that they're going into on the new property that they're going to buy. >> it will, but at least bonawyn is referencing the dynamic -- there are a lot of sweetheart mortgages people are hanging into but they will roll off and doesn't bode well for the market. just where the affordability dynamics are, i think that will

then take down prices. if you can't go out and get a mortgage for a house in terms of monthly kind of burn rate costs twice of what it did four years ago, three years ago, that's not great for house prices, even when all the other things for the industry and that's been my view. but, again, back to like a williams-sonoma or vulcan materials, stocks that have not only moved in line with the sector but exceeded the sector and the question is, when you look at the multiples on a lot of these stocks they're not terrible, companies getting through a lot of supply con straptsdzs and post-covid. i call this the delayed normalization of the economy and you can still play. williams-sonoma we like and guy shops for a couple particular items there and, you know, happens to be a -- >> like what, guy? >> the dutch oven is probably on sale right now. >> a wonderful array of them. >> they do and i mean tim makes fun of the dutch oven. some of my best cooking is done in it. >> i bet it is. >> they report on march 14th so

next week, tim mentions valuation, trades at 16 1/2 times, not ridiculous. may not have the earnings growth people want but it's still a reasonable stock, of course, the problem is we've seen some pretty ridiculous moves both up and down in this name, so williams-sonoma specifically, if you've enjoyed this run, given some ofthe nuttiness we've seen you have to do something in earnings. if you're long in doing nothing, to me that's the wrong plan of attack. >> all right, for more on the nation's housing shortfall let's bring in skylar olson. great to have you with us. >> yeah, thanks for having me. >> will this work? will this actually facilitate inventory into the market and facilitate sales, do you think? >> you know what, in a market that is so short on supply and could, you know, really could use all the help that we could possibly get, i think, you know, what's going on right now, this proposal that's, you know, the white house is setting forward here is a lot of incentives for

a first-time home buyer to move forward. i don't know that they need them to move forward but if you size 10 grand it's kind of like compensating you or letting you handle the 50 basis points mortgage swings that can change your buying power by as much if not a little more we've seen happen as recently as, you know, over a month. so i think it really could incentivize a lot of buyers to move forward and spur forward sales but we need new listings to be there in the first place. we do have pent-up sellers so these incentives for someone to provide a starter house could do a bit, but we do teed a lot more to get back to prepandemic normals. we're still down a big shortfall tomorrow. if you think over building how much we're shortfalling and how much more in the housing stock do we need, 2 million is ambitious for what we've been able to provide certainly in the

starter home space, but our shortfall is more around maybe 4 million, 4.3 if you think of all those households who live with nonrelatives that really cannot afford to pop out right now. >> i'm wondering, how technically would this work as far as you know in terms of somebody, let's say i'm a first-time home buyer and seen the tax credit and think that's amazing, it will bring the mortgage rate down to an equivalent to 5.5% but i have to still get qualified. do i get qualified against a 7% mortgage rate and therefore the affordability factor isn't solved for me until i get that tax credit after the transaction? >> yes, i think, so a couple of things to kind of clarify here. it will amount to dropping your, you know, i think the press release or fax sheet clarified that it will be the equivalent of dropping your mortgage rate for 1.5 percentage points just for the first two years so that's kind of similar to, say, other popular mortgage products out there like a two-one buydown

where you get your seller to pay for the same kind of thing. your mortgage rate falls for the first two years. now, because it is a tax credit, though, you're not going to get it at the time or built into the mortgage as you pay. it will come later. now, you know, hopefully and if we think about someone who has the potential to become a home buyer they're generally someone who has been saving for awhile, so maybe they can carry it on until they get that tax credit. so for that marginal buyer, you know, it probably will still have that beneficial impact, but when you think about, like how to size these numbers and what it might mean to you as a buyer, mortgage rate fluctuations, you know, are a big deal to, you know, on scale in other words with this kind of benefit, so as an active shopper be sure to be watching, be ready for the inventory that's available and get pre-approved to figure out what you can afford and what this kind of benefit would mean for you in your area, because an

expensive housing market will mean a lot less. >> skylar, bonawyn here. you drilled down on something i find very interesting. speaking about the marginal buyer and how there will be some fluctuation in terms of mortgage rates a few years out, can you speak to what might be the second and third order effects in terms of default rates that might -- that need to be considered as we're trying to find ways and engineer ways for people to stretch to get into these first-time homes that might just be at the brink of affordability? >> yeah, so if i'm understanding your question right, what you're saying if we incentivize a bunch of people in order to become first-time home buyers that maybe otherwise would not have been able to, do i introduce a lot of risk into the system and will experience pain later? you know, i think in -- when we're thinking about credit markets and access to home ownership, there's a lot of space to improve how this process works, so, for example, there's probably folks who have,

let's call it, like their fundamental creditworthiness is worthy, right, but the way that we calculate credit just might account for that, so, for example, credit scores have not traditionally included ready payments of ent, right or successful payments of rent over time. you'll get dinged when you don't pay or for an eviction, right, but that successful payment signal is completely missing. so there is room to provide access to home ownership to more groups and then if we just think about what is the big barrier right now for a lot of folks, i mean, that down payment and the change and the impact to that affordability, it has happened regardless to those individuals. so i think it is a challenge and we will over time kind of see fewer people become home owners and more turnto rentals for that reason. >> right, skylar, thanks for joining us. skylar olsen. >> thank you. >> so we outlined before that in

addition to this we're also expecting president biden to speak a lot about other things including something we talked about yesterday like drug pricing, all those fees could impact the credit card industry. where is some of the sectors you would look for potential impact? >> well, it's pretty clear that pharma is always a target and pretty clear that also energy at times are always places that are wrought with political undercurrents and i think we're going to see that. i think in the case of the banking sector what we've been getting over the last few days and been coming from different corners of the government and policy is that banks probably have less of a target on their back than they did a year ago right around svb and that's part of this breakout. as we talked about the housing sector, i was just looking to see what some of the mortgage services companying and consumer credit companies would be bouncing in a big way but reflective of consumer credit concerns that haven't really hit the fan as they say. >> they'll talk about the billions and billions of dollars that enter the profits of the energy -- i'm notprivy to this but my sense is that will come

out so there will be a bull's-eye on energy as there typically is. don't underestimate consumer products. he talked about this around the super bowl, how packages are getting smaller. >> shrinkflation. >> i don't like saying that -- >> packages? >> excuse me. >> how packages are -- >> like your cereal boxes. >> oh. >> i'm not sure what you're talking about but a 16-ounce box of cheerios is now 12 ounce but paying the same amount of money. what they're saying is we want to keep the price point the same. this is how you're doing it. want a 16-ounce box, we'll jack it up by 25%. consumer products whether they realize it or not, they have a bull's-eye on their back. >> earnings alert on broadcom. the stock reporting a beat on the top and bottom line for the first quarter and chriskristina partsinevelos has more. >> they did not update their fiscal career or full year 2025

revenue guidance of 50 billion. 30 billion from the semiconductor and revenue from the semi business came in lighter than expected but was offset by strength in software which is what you're seeing, broadcom acquired vmware 18 months ago helping drive that software growth. broadcom also benefits from the a.i. upswing given it makes these custom silicon chips often used in a.i. infrastructure but they're still exposed to other cyclical segments like storage, networking, et cetera, so that dynamic is expected to be discussed on this call that started maybe about a minute ago, especially since expectations were so high going into this report. and also high for marvell's stock faring much worse despite a new $3 billion stock buyback program. management saying they are forecasting soft demand impacting consumer, carrier, infrastructure and enterprise

networking in the near term, but they promise those revenue declines will only occur in q1, this current quarter. investors, a little unsure hence the stock drop. >> all right, kristina, thank you. these two stocks in particular were mentioned in a report and there could be an air pocket in chip land not that there's a lot of near-term risks associated with it. obviously nvidia was among them but the setup here, stocks, massive run going into it and missing is not acceptable. >> it will be up tomorrow so just can't get enough of these. so if you see them down in the morning, that's a perfect opportunity to make money, mel. red in the morning means greens in the afternoon. >> you're a buyer? >> let's hold on here. i want to be really clear. >> forecasting or -- you need like a button. >> it might likely be down in the morning and up in the afternoon. i mean, like we just talked about the supply and demand dynamic in the housing market. there seems to be a thing here but i'm just looking at the estimates and looking at the this current fiscal year, you

know, trading at 30 times earnings. 12, 13 times sales, you know, we're looking at midteens at best, you know, expected, you know, earnings growth here, better than expected, sales growth but they're not beating those expectations, this is something we'll see at some point this year and i don't know if broadcom is the first of it. >> interesting that all of us were not sure if you meant what you said or if you were just being -- or meant the opposite of what you said but i'm glad we clarified it. >> there is a good chance that if it's red tomorrow, it opens up -- >> do you agree? >> i'm just going to point out the absurdity of the semiconductor move. i'm not going to get in the way of it. surveillance semiconductors stop outperforming the market massively, they're up 28% versus the s&p since january 4th. so they're up 42% on their own. they're up 28% against the s&p. this is extraordinary. i mean, if you look at the market overall, all of the move and if you stripped out nvidia and broadcom but really amd out of the nasdaq it's actually

underperforming the s&p. it's all about semis right now and i think this is something that's concerning and at the same time i'm not sure anybody knows what to do with it including the analyst community who keep upgrading the stocks. >> fair points. i know we spend a lot of time saying whether or not nvidia has the power and those adjacent a.i. stocks have the power to levitate a space. that i think is what we're seeing and i think those are the risks that both of these panelists are underscoring. these companies here give you a bit more insight into the cyclicality that city exists within the semiconductor -- >> aren't we more to you than just panelists? >> my brothers. >> i feel like we've been doing it for so long. >> it is said with the utmost respect. i didn't know you were that sensitive about title. >> when you're this sarcastic. >> probably time for a commercial. >> cannot tell. >> broadcom at 25 times next year. the epsb was significant. the guide, people got concerned about, the revenue guide for the year. i wouldn't be as concerned, it looks like an expensive stock because it's $1400 a share.

valuationwise and have said it for the last year and a half is one of the more reasonable ones out there. >> a move that will make your heart skip a beat. we will dig into the headlines sending this stock surging again today. that's next, plus, iron mike is back and this time he's on netflix. will the boxing champ deliver a knockout punch? we'll slug it out after this break. >> announcer: this is "fast money" with melissa lee right here on cnbc.

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welcome back to "fast money." novo nordisk has a new record high after disclosing results of an obesity drug trial. participants who took it for 12 weeks lost 13% of their weight on average. the drugmaker is planning to expand research into cardiovascular disease. competitor shares were broadly lower after this news with viking losing nearly 19%. structure therapeutics falling 10% and lilly closing flat on the day. what's important about the drug it is oral, a once a day drug so presumably it's easier to make. it's easier to transport. it's easier to take, et cetera, fewer side effects because the

dosages on a daily basis will be lower and proving to be more effective at 12 weeks versus wegovy at 12 weeks, the weight loss is much more significant. another key aspect to this drug. >> unbelievable. without question. now it's a 600 -- add the two, lilly and novo with this new market cap. if you think revenues grow the same way a lot of analysts think they'll grow, in other words, going from 50 become now for an eli lilly to 150, 200 billion in the next 3 1/2, 4 years as dan would say, stay with it, have at it. if you think there will be a hiccup along the way these stocks have gotten themselves a little extended. you can put up a novo chart if you want proof positive and take a look of the you did an amazing doc. big shot, everybody should watch but i think they would be surprised by the stock moves they've seen in the last few months. >> nice round numbers so 50 billion is the expected for novo next year. start looking at 2025.

supply demand dynamics demand will be there forever and helps the upply, all the different ways you can take it and uses, start looking at 2025, trading 33 times expected earnings growth at 20% which is probably pretty low, you know, so, like, this is one of the things you could start looking at out years but when you have a gap up and up 10% you will look for opportunities on pullbacks. there haven't been too many of these but if you look at novo this consolidated for a good long time last year and kind of looks like the nvidia chart the way it had that gap consolidated and another gap. >> what's interesting to me, you will reward novo on a day -- on a data release, this flow data because we are already kind of taking it as a given they're so far out in front of everybody along with lilly and it's now, you know, it's an addressable market call, a call about who is out there with the margin and only presumed that they have this data. is anybody questioning that they're not getting the follow-through and not seeing actually some of the data that

we got returned today so i'm just kind of surprised the market wants to continue to reward stuff i thought was in the price. >> lilly, by the way, also has an oral drug already in development. it's actually farther along than novo nordisk so a little surprise to see the reaction lilly considering it has something comparable in the works in the pipeline. >> i think tim hit the nail on the head in terms of targeted addressable market. we already had those numbers baked in. those numbers meaning obesity related and gop related and diabetes related drugs. now, there are second and third order effects in terms of -- i wouldn't be surprised to see strong correlation not only with heart disease but stroke and several other, you know, maladies or ailments that come from, you know, the united states which is the most obese developed country. so, you know, in terms of that i think that's really why you're seeing people kind of flocking to the stock. i'm with you there in terms of probably getting an opportunity to buy in cheaper but it's like how long, how much price

appreciation will you watch from the sidelines before you gain some exposure? >> do not miss an interview with the novo nordisk ceo on "money movers" tomorrow at 11:00 a.m. speaking of weight loss drugs if you missed the premiere of "big shot: the ozempic revolution" it's available on demand and will treatment on peacock later this month so look for it. there is a lot more "fast money" to come. here's what's coming up next. get your gloves up. like tyson is coming to netflix. the streaming giant moving further into sports with its first ever boxing match. will this big move deliver? we'll put on our mouth guards and slug it out next. plus, the clock is ticking on tiktok as washington looks to move ahead with a potential ban on china's control of bytedance. what's next for the viral social media app and other chinese companies in the u.s.? coming up, you're watching "fast money" live from the nasdaq

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between iron mike tyson and jake paul. the two brawlers set to go head-to-head from the at&t stadium in arlington, texas, july 20th. the latest push into sports and live programming from netflix which recently reached a ten-year deal for the exclusive rights to stream wwe raw starting in 2025. so could this be a knockout punch, one that netflix absolutely needs? >> wow. >> what? >> that was nice. i mean -- >> no, it wasn't. no. >> punch. >> i like mel talking about iron mike. because you were always -- you were always a big iron mike fan and talked about gus -- >> we know he's watching. >> interesting part on netflix's part. it's creating sports events. >> out of nowhere. manufacturing it. >> i will -- this is something that i would watch. 100%. >> you don't know how to stream? >> excuse me? >> well, there are drugs for

that. in terms of netflix they report in the middle of april and you can go back and look. when it was cheap we all pointed out at 18 timesit's way too cheap. when this gets to about 31 times and it's 29 now, then it gets a little ahead of itself so this can continue just probably run and do this levitation and i think collectively we've enjoyed netflix for awhile but i'm telling you that 31 is sort of the line in the sand in terms of the multiple. >> it's not just sports, you know, they launched this limited series with david chang, a celebrity chef and, you know, he's been doing ugly delicious, "dinner with david chang" live, he has celebrities come in and there's bill simmons and seth rogen. >> would anybody listen to that if we did that? >> yes, i'm telling you. they're listening to our podcast -- listen, trust me. people want to hang out with people who are doing interesting stuff and talking about things they care about and want to be part of the thing so it's going across. not just sport, it's like a lot of personality-driven stuff too. i think that netflix has got

their finger on the pulse of this thing and getting away from some of the original content they've been doing for years. >> i don't doubt netflix's ability to generate organic content and be mindful and exhibit capital discipline in terms of where are they going to allocate money. getting into 9 bidding wars with shorts, i don't know what your outyear is and return of investment is. i'm with guy, i do doubt whether or not paying 29, 30 times is the right price for that. >> and i hear that, but as somebody that thought netflix was too expensive from 50 bucks to 300, the time to buy netflix is when it's expensive and i also think that they have so many other levers to pull. we haven't talked about gaming and other types of add-on subscription dynamics that are maybe even bigger than all of this so i'm bullish on netflix because, though, as bonawyn was talking about, excuse me, the panelist was talking about. [ laughter ] you have the free cash flow generation. >> thank you. >> going up. is the clock ticking on tiktok? the house is cracking down on

china's bytedance and could it be curtains for the app in the u.s.? it's coming up right after this. semis surging and they are taking the rest of the market with them. what happens if this rally runs out of steam. what under the radar group might be ready for an even bigger break out? we will find out next. >> announcer: missed a moment of "fast." catch us on the go and follow the "fast money" podcast. we're back right after this. rylee! from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)

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welcome back to "fast money." stocks closing out another record dare and s&p and nasdaq each up more than a percent on the day while the dow gained nearly 10 points. in the midst apple keeps on losing down 7 straight days now, its longest losing streak since january 2022 and nvidia meantime, closing in on passing apple in market cap. kroger hitting its highest levels in nearly two years, the grocery chain crushing expectations before the bell. today's gain is kroger's biggest since 2021. and some after-hours action. docusign, big top and bottom line beat and gap posting one of its own and costco dropping on a revenue mission. for a look at whether the rally can continue let's bring in the

firm's chief investment officer. great to have you with us. >> thanks, melissa. great to be here. >> do you think there is an aspect of fragility to these gains since they are led by have and obesity drugmakers? >> we wouldn't have fragility but encouraged in the recent weeks that the market has expanded in terms of breadth and some of the small caps performing well and the health under the hood is improving and not weakening. >> you think small caps are poised for a good year. and you cite the election pattern we've seen in the past. >> we know when president trump was elected in 2016 there was a big run in small cap, a lot of the concern was that the terrori tariffs would hurt the large caps and small caps were the place to be. we think there is a possibility that that could have a repeat of the dynamics that played out in

2016 and, of course, small caps have lagged the large caps for so long and think they're due for a upgrade. >> buybacks will be a topic of conversation. what are your thoughts on buybacks? i have no issue with them whatsoever. i'm sure you probably don't as well. that will be something with a bull's-eye tonight. thoughts? >> buybacks probably will have a bull's-eye and probably get discussed at tonight's state of the union address actually. buybacks we think are very important for the market. they're one of the two forms of returning capital to shareholders, of course, the other one being dividends and buybacks are very efficient form of returning capital to shareholders because investors can themselves determine whether or not they want to sell shares and be subject to taxes as opposed to dividends which are taxed upon receipt. but let's be clear. if there is increase in taxes on buybacks, again, that's a very big if getting from here to policy on that, but if that were to happen that's a tax on

investors and that's all investors, investors with 401(k)s, investors with pensions. ultimately it's investors that will pay that tax and not the corporations, so we think that's important to keep this mind and we do favor buybacks as a very important way to return capital to shareholders. >> yung, we've seen yields in the ten-year come in 20 basis points. talk about the sort of tailwind that might exist for the stock market right now as economic data, you know, is okay and the earnings environment seems pretty good too. >> yeah, data is okay. it's a little choppy here. the market has shown an amazing resilience to look past some of the choppy data. last month's inflation, the inflation data came out last month, it was a bit mixed, as well. you know, the strong dollar plays into it that helps to keep inflation down, but overall we think in a big picture level the market is really looking past the near term and focusing on what we think will be increasing growth in the second half of the

year and the trends of improving productivity which really allows the market to kind of have its cake and eat it too to get higher growth and to also get inflation down, so right now the market is showing amazing resilience. we actually think that will persist for some time here. >> yung-yu, thank you. somewhat do you think about small caps? >> i don't care about small caps. [ laughter ] i really don't invest in them. i think we spend too much time talking about them. that was a totally fair question. when i look for opportunities in the market, small caps are a barometer of sorts and no question why i think more people look at them and i think they're supposed to outperform during periods of growth. what he said, he doesn't think sentiment is offside but is fine and we came into this year where yet again people feel like the market was over its skis especially certain sectors and have gone even well past where we thought we could be at the

start of the year so if people actually think sentiment is now okay, that's probably the time to get worried. the market has been worried about positioning, worried about macro, worried about the fed for a year and a half and look what's happened. >> the contra-contraindicater. i'll take a stab at small caps interest my digs or digis. we thought it would be challenged and they'll tend to do well in that type of environment and i have been shocked and used the term with you begrudgingly but the data is the data and we continue to defy the odds in terms of being rabel to, one, the consumers that have the consumer spending front continue to be robust and, you know, the 3 and 3/3/4 reading in terms of gdp still continues to show we're chugging along. >> coming up is the clock about to strike midnight on tiktok? one house committee just taking a major step in cracking down on the chinese owned app even as some politicians are using it

themselves. more on that next. >> what's going on in that picture? sorry. >> it was a box. an electric unveiling. rivian is unveiling the new wheels. will they be enough? we're plugging into that one when "fast money" returns. rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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welcome back to "fast money." time may be running out for tiktok. earlier this afternoon the house energy and commerce committee unanimously voted to approve a bill that would crack down on the popular social media company. cnbc's emily wilkins has the details. emily. >> hey, melissa, that controversial bill could lead to tiktok being blocked in the u.s. has cleared its first hurdle getting bipartisan support from the energy and commerce committee. now, the bill is poised to head to the house floor with speaker mike johnson endorsing the bill this morning as an important bipartisan measure to take on china, our largest geopolitical foe which is actively undermining our economy and security and we actually just heard from house majority leader steve scalise that bill will be on the floor next week. now, of course, there have been previous efforts to ban tiktok and they have failed but supporters of the bill say that this is not a ban and that tiktok can continue to be in the u.s. so long as it divests from

its parent company, bytedance. the chairmanwoman who heads the energy and commerce panel said the legislation doesn't ban free speech but addresses potential threats from china. >> this bill is focusing on national security threats that are owned and controlled by a foreign adversary, does not get into the content that's on that application. >> a survey of members that was done in october of last year found only about 7% of lawmakers have a tiktok although not all of them were verified and some hadn't posted in months. now, of course, president biden got on tiktok last .but don't expect that to hold up the legislation. a national security council spokesperson said the administration has worked with lawmakers on the bill and biden is urging lawmakers to pass it through both the house and the senate. melissa. >> all right, emily, thank you. emily wilkins in d.c. for us. huh? interesting that president biden

would use tiktok or at least his campaign would when it's a national security threat which seems to be a little bit ironic but here we are, this could potentially be a very good thing for a meta. >> meta. at times and when meta was at a multiple half of where it is today those were the things we thought meta needed. i don't know that meta's future is determined one way or another here. we've proven if anything meta is shown where they're using a.i. and instagram way out ahead. i think it gets back to the china, china, china rhetoric that's out there everywhere you turn china is a bipartisan issue. every sector and, therefore, what does it mean for those companies here that are relying upon chinese revenues and chinese growth? it doesn't bode well. >> one is meta and there was an article in "the wall street journal" talking about temu and learned about it, guy shopped like a billionaire. they lose $7 on almost every sale. they were the largest advertiser on meta and google and if you think about if there is going to

be this sort of bipartisan groundswell towards kind of shutting some of these operations down, that will also have an effect on ad revenue here in the u.s. >> coming up rivian's new ride. the latest offering from the ev maker and how they're hoping it will easthe esree prsu to cut prices. back in two. ake this work. -we can make this work. it can help you reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about.

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laguna beach trading near all-time lows but it is up 13 plus percent on today's news and also got initiated with a buy rating over alt jeffrey's so will shares continue to rev higher. phil lebeau has the very latest. >> melissa, three pieces of news here today. let's start with the r2 which was built on the marquee of this historic theater as the big reveal of the day and it was the big reveal. people have been looking forward to seeing this midsize suv. starting at $45,000. that's not the exact price but what they're targeting at this point and more importantly, they're pulling forward production. it was always scheduled to come out in 2026. they believe it will come out in the first half of 2026 and now they're pullingforward production because they'll build it at the rivian plant in normal, illinois. >> so excited about this vehicle, we wanted 20 get it into market as fast as possible and we'll still be building these in our plant in georgia, but we're going to first launch them out of our facility in

illinois and what that gets us the ability to get it to market quicker and saves us well over $2 billion in capital in the process of launching it. >> you heard rj scaringe mention that. that's the second piece of news pausing development of the plant that they are building in georgia. now they're not scrapping it. they plan on eventually building out that plant although an opening is to be determined. the target at this point is by 2030 to have about 7,500 employees at that plant. when you save 2.25 in capital expenditure with questions about liquidity, that's another reason why the stock moved higher and finally, there is the question of where is rivian going when it comes to production and growth? and as you take a look at the deliveries over the last couple of years, we know that the production guide is for 57,000 vehicles this year. but beyond that, they're going to be coming out with the r3 and this was the surprise that nobody was expecting. this is going to be a crossover utility vehicle. it'll be priced lower than the

r2, exactly when it comes out in '26 or '27 remains to be seen but this is rivian saying, melissa, as you take a look at shares of rivian saying we're doing two thing, one, we're giving you a road map for our products and, two, we are moving as quickly as possible to lower our costs, to get to growth positive profit margins by q4. three big pieces of news and that's the reason the stock moved higher. melissa. >> all right, phil, thank you. phil lebeau in laguna beach for us today. the question is if they build it, will people buy in this kind of market? dan, r and zebra -- >> really quickly. all-time lows it's trading at. rj just said they will lose 2 billion less than expected. neve 9 billion in cash. expect them to continue to dilute shareholders and raise cash but this thing will survive and i just think go tesla maybe ten years ago. >> as the note said this is as close to tesla as you'll get so, yeah, they lose money hand over

fist but this was 130 something dollar stock and come down to levels where you can make a rational decision based on some of the things you see going forward, but i still think this is a fade. >> up next, final trades. every day, more dog people, and more vets are deciding it's time for a fresh approach to pet food. they're quitting the kibble. and kicking the cans. and feeding their dogs dog food that's actually well, food. developed with vets. made from real meat and veggies. portioned for your dog. and delivered right to your door. it's smarter, healthier pet food. get 50% off your first box at thefarmersdog.com/realfood

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and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. time for the final trade. panelist over there. >> oh, is that me? hi, i'm panelist number one and i'm going with amark. i'm long the name, full disclosure but i think they have a lot of operational leverage in a gold bull market. >> panelist to my right. >> clearly the chatter around buybacks might be a dark cloud hanging over them, however, i think they're still underowned. >> you over there. >> yeah, hi bonawyn, i'm dan. guy, he put together this acronym. is that what you do. lockheed martin in your --

>> are you liking it? >> you like his clan. >> one of your heartbreaks was not getting into georgetown, tim and i obviously did and have members of the georgetown media alliance there, take a look at l.lero, me >> thanks for watchingmelms. >> thanks for watching "fast money." see you tomorrow at 5:00 for more "fast money." "mad money" starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job is not just to entertain but to educate and teach you. call me. 1-800-743-cnbc. tweet me @jimcramer. when the book is written on this economy right now, it's going to come down to something that is pretty pedestrian. it's going to come down to