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tv   Fast Money  CNBC  October 11, 2016 5:00pm-6:01pm EDT

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there, if you're not getting the monetary exchange? >> some teams trying to argue exactly that. >> of and perhaps not the success we're seeing. if they have the policy, they have to enforce it. and that is the policy. we'll see if they change or bend. for now, tom brady trying to ride to the rescue. thank you for joining us. what's your name, michael? santoli. "fast money" begins now. "fast money" starts right now live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. pete najarian, guy adami. forget oil. a top technician says he found the most important trend in the market and could mean good news for one group of stocks. he's here to explain. plus, apple bucking the trend today as samsung pulse its galaxy note from the shelves for good. and later, we'll tell you the one retailer that could be pinning its hopes on a hillary clinton presidency. but first, we start with the worst day for stocks in a month.
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the dow s&p and nasdaq fall losing more than a percent and it wasn't just one thing that had investors nervous. take your pick. a triple threat-facing stock. rising rates, rising dollar, concerns about falling profits ahead of earnings season. what matters most to the market, is there anything worth buying right now? pete, kick it off. >> well, i think right now people are getting more and more concerned about the whole earnings season. if you go back the last quarter, that actually was one of the things that really propelled us to the up side. you look at the financials, a very low hurdle, and we started moving to the up side right out of the gate. so i think people are starting to focus on that. then you get alcoa's numbers. we have seen a few other folks that have come out with numbers or projections -- >> honeywell. >> honeywell, and you start to feel a little bit less comfortable and then all of a sudden when we have seen the area that everybody has been piling into, technology and the selloff, that is a bit concerning. that started about three months ago. you look at some of the returns from some of the tech names, whether it's net app or go through seagate and all the various names and look how high
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they have gone so fast. you can understand that the rotation in the market is going to continue and right now seems like there is a big rotation, at least today, out of the chip names that have been on fire and out of technology that's been on fire. and been looking for other areas. energy had been very strong. little weaker today but wasn't as bad as the rest of the market so i guess you could hang your hat on that. that's where i have a lot of exposure right now. i looked at kroger's today. not because it was sold off today. but this is one of those names, was near $42, got under $30. some unusual call-buying in there, so i decided to get into it. >> look, we talk about the relative value trades. they're out there still. the financials are still going to play catchup, i think. the biotechs still have room to play catchup. we can talk about that later in the show. in general, valuations came into question. you have had concern with the election. i mean, not just the white house win for democrats, but now you're talking about congressional polls coming out, and questioning whether or not the gop can remain in control. that's an overhang in and of itself. so i look and say there is a lot of moving parts here.
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sovereign yields on the rise, u.s. tenure on the rise, puts valuation and multiples into question. >> i thought of you this morning, dan. >> again? >> first thing in the morning. s&p 500 median forward pe, the highest since 2001, since the tech bubble. >> well, here's the thing. i'll just mention this. a lot of the s&p is concentrated in a small group of stocks. when you think about those stocks are actually trading well above a market multiple. some of the biggest names we know, making up for poor performance of stocks that haven't traded well and have valuation that is make it kind of right there in the historical average and the high teens or so. so the main point there, you have this massive concentration in the s&p 500, in the nasdaq, just as you had back then, back in 2000, back in the top of 2007. and i just -- my two cents on what kind of spooked the market today, a combination of stuff. walmart is something that was an outperformer last week, the guidance they gave for fiscal
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2018, flat with this year. kind of disappointing, especially for a stock that is deemed defensive, it is cheap. and then you put in this rate increase we have had, 15 bips in the ten-year treasury. near certainty the fed is going to raise in december and all of a sudden you start to get worried the fed is going to start raising into a weakening economy. i think that's the sort of stuff with the s&p only a few percent from its all-time highs. >> and here are the data points as pete alluded to. alcoa today, honeywell, fast fastenall, as well. haven't been that great so far. >> major -- multinational industrial companies that have all said sort of lousy things and the stocks have acted in kind. once again, look at the s&p. it closed above the 2134 level that we flagged a number of times. that's a good news. the bad news is, we have tested this level now three, four times. one has to wonder, how many times will it test before it breaks? until it does in a significant
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way, in other words, close below it for a few days, i think the market probably grinds higher. the things you need to watch still, the iwm has to hold this 122 level and push whack towards the 130 level. it's really important. the all the politicians, everybody talks about wanting a stronger dollar and without getting too much in the weeds, they might talk a big game, but in reality, a stronger dollar is about the worst thing that could possibly happen to u.s. companies right now in what could be a rising rate environment if the fed does move. raising rates into an earnings recession strengthens the dollar and starts this spiral. >> did you see today johnson & johnson was down 2%, procter & gamble, has 55% of their sales. has the yield and people piled into it and it's just 2% from -- 52-week highs. that's a name i actually think you short the staples. i think you want to continue to lean on retail. xrt -- >> meaning short. >> yes. >> i agree with leaning on retail. retail is a problem.
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the wholesale supply chain is a mess, will continue to be a mess. so i think retail is in trouble. i think the banks still have that trade, into the rate hike, once that rate hike occurs, you take profits across the board. >> if everything is moving ahead, in anticipation of a rate hike, what is -- what is there left to trade up until -- >> i think that's the trade. you're trading in anticipation. so earnings coming out at the end of the week for a few of these banks, right? the bottom line is earnings don't matter. it's not -- that's not going to be a focal point. actually, they're probably really low. the bar is set super low. it's really about a rate move. and it's about trading it into the rate move. i'm looking at it and saying, the earnings expectations aren't crazy. you're not going to have, in my opinion, some surprises with the jpmorgans of the world, city banks of the world. >> hold on. bank of america was trading at 14. >> i get it. 16. it's a big move. the deutsche bank issue is
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starting to clear itself up. starting to subside. as far as the real big concerns. i look and say, it is still a trade into a rate hike. >> did it own the banks into the rate hike? >> and then you take them off. >> i'm with him on that. of i own bank of america, as well and goldman sachs and i actually think it's amazing to watch jpmorgan and how resilient they are. we have this news, it didn't seem to affect jpmorgan at all and then even the xlf today, when you look at the market and see the market getting pressed to the down side and look at the xlf holding up well, the kbe holding up well. that part is impressive. the money is not want to go flow out of those names right now. it's flowing out of the names that had that well -- i know you're looking at me -- the names are money flowed out of today. chips, technology. >> you're playing the banks right now because you think there's going to be this sequence of rate increases by the federal reserve. you kind of made that same judgment last october at this time. we have had one rate increase since then. most of the stocks, other than jpmorgan are lower than where
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they were last december when the fed raised rates. and you know where the ten-year treasury yield was? 220 then. it's 175 right now. i'm just saying -- and really volatile. i'm not certain the risk/reward is there. >> if you look at the underperformance of the banks year-to-date -- >> you could have said that -- >> i get it -- guy, weigh in here. >> a lot of these banks are pretty interesting. if you want to be -- again, come back to this a lot. if you want to be safe, look at a name like u.s. bank corp, with despite what's going on. minnesota banks, a couple percentage points. not a 52-week high, all-time high, october 19th. i think they deserve the premium valuation they get. so if you're scared of some of these banks have run too much, too fast, i think u.s. bank corp in e is the way to go. >> our next guest says they are going higher. chris, tell us why. >> what's the most important price in the world. the most important price in the
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world is that of the ten-year yield. we think the trend here is changing. this is a one-year chart of tens. what we have most importantly is a trend line break, number one. i think secondly, a couple weeks ago, when they tried to push yields lower, they couldn't. we immediately bounced off the 5 50-day moving average. let's keep in mind, we started the year at ten-year yields at 227. is the world worse today than it was then? we don't think so. we think yields can go up. and i want to show you what sentiment looks like here. so this is the tlt, which is the long bond etf. there are no shorts. fewest number of shorts in the tlt that we have seen in about three or four years. we think that means sentiment is too come placent. we don't think investors are ready for higher rates. what do we want to own? we agree. we want to own banks here. this is the bkx, the bank index. we broke the trend line. higher, low.
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more stocks above the 200-day moving average than at any time over the last 14 months. so the trends are getting better. jpmorgan, you're right, it's been resell yent. suntrust looks good. that's how we want to play this. we think rates are going up. >> should we invite chris over? >> 100%! >> knows what he's talking about. >> all right. come on over. please bring him a chair. >> made it over. >> great music. >> carol burnett. >> i love carol burnett. >> i have a question. dan was speaking about an interesting point, comparing banks today versus a year ago. do the charts look significantly better this time around versus a year ago? >> they do. >> when the yields are higher? >> here's why. the move is broader. more stocks in the group working today than 12 months ago. we are big believers. we have to evaluate the parts. the sum of parts is better in the fall of 2016 than it was in the fall of 2015. i would also note, think about two weeks ago with everything going on with deutsche bank and
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wells fargo. they tried to sell these things and couldn't. that to us is resilience. i want to own things that don't go down when they should. >> there's a lot of people who said the yield and ten-year treasury made this double bottom here, a generational low. is that kind of in your thinking a little bit? because the long-term trend really hasn't broken it yet to the up side. you know what i'm saying? >> exactly. >> so i'm just saying, we really could bang around twine 1.5 and 2, and bank stocks don't go anywhere. >> put it in context. 227 where we started the year is a fair number to look at over the next couple quarters. what's the biggest marginal change over the last several months. it's been so expensive to hedge out yen, the foreign bond manager is not getting any yield differential. that's a part of the bull call in bonds for a long time. the arbitrage is over and a big reason why yields go up. >> what about the positioning in banks? a lot of these institutions jumping into buy stocks, just to chase them. >> here's a great stat. if you look at all the level
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three s&p groups, banks have the fourth fewest number of buy recommendations. i think that tells us more about sentiment here. it's really not something we're worried about at the moment. >> chris, great to see you, thank you. quick show of hands. >> hold on. okay, go ahead. >> who is buying in banks? >> well, you can't broad brush like that. >> kdw bank index. >> okay. >> pete najarian is. >> this half of the desk versus that half. why not? >> i would rather -- >> i would rather be specific, too, though. i understand -- >> that's part of it. >> i do think yields -- look, i understand what's going on the last month or so, but i do think yields grind lower at some point. coming up, health care taking a huge hit today, the big loser. is there buying opportunities? the traders weigh in. plus, can hillary clinton save ralph lauren? why they could get a major election boost. and apple bucking the trend today, the best performer in the
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dow as things get worse and worse for samsung. how we reached apple nirvana and is it too late to buy? much more "fast money," straight ahead. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create,
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not just wealth, but things that matter. morgan stanley
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welcome back to "fast money." health care was the worst performing sector today, falling
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2.5%, and that kicks off our top trades. the drug makers leading the sector lower like bristol-myers, novartis, moving lower. and biotech getting dragged down, continuing to move lower in today's session. pete. >> well, you know, you look across the space and some names you look, like lumina, the most interesting. where the stock was trading, 60 times multiple on the stock. they have growth of 10%, not 14%, as they projected. because of that, all of a sudden 25% later, this stock has dropped that significantly. so it's an interesting day there. look at abbott, involved with s st. jude. pounding, pounding, pounding. i'll tell you the one name that hardly moved, but moved enough it got me really interested was amgen. not only have they had positive news flows, but look at the pipeline and go through what
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they're trading for in terms of a multiple, the stocks buyback in terms of what they're doing for the shareholders. everything they're doing to me looks like it's right. they have a great pipeline. that stock went from 68 to 67 down to 64 today. that was an opportunity. i missed it on the lows, but i'm looking in case we see another selloff tomorrow. >> when i see these moves, and remember yesterday, we had a big day for biotech to the up side, because of the likes of at the sarro and merck. how can i invest in an e it tf that will be taken down by an alooma, which you say backs off its impressive growth forecast. >> and the hedging down by institutions, using etfs to hedge. that's obviously creating more volatility. i think the relative value trade here, turns out to me is bristol-myers and merck. bristol-myers has been beaten down, obviously, over the weekend. it collapsed again when we got some data that was in merck's face to face. but i like bristol at these
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levels. >> you are on many shows. but on a show from 1:00 to 3:00. >> "power lunch." >> the power lunch. and you had a conversation about etfs and brian sullivan, one of your co hosts, made the point that sometimes bad companies get sucked up into the etf updraft on the way up. so they're sort of being -- the weakness in the companies being masked. >> there you go. >> by the etf and it works the opposite, as well. i'm in pete's camp on amgen. i like what's going on at amgen. i'll also say this. look at alooma. we pointed this out last night. go back at january and look at the drop they had in january. and then go back to april and look at the precipitous drop in april and the subsequent recovers. however, the stock traded down to 134, give or take today. >> you said 140 was the line in the sand. >> closed at 139. listen, this is not an exact science! >> all right, all right!
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okay. >> i mean, holy cow. >> the people want to know, i'm sure. guy is at 140, it's 138. >> 139. moving on. geez! next, wasn't just stocks -- u.s. stocks getting crushed. let's check our move of the day, etfs sinking 2%, having its worst day in more than a month, partially dragged down by the turmoil in south africa. >> 8% overnight, given the recall and the cancellation. we're going to talk more about that out of the galaxy note. this etf has changed in the last year. we know they added some u.s. adrs. alibaba is in there too and chinese net stocks actually massively outperformed over the last three months. so you have a bunch of these stocks that propelled to be really well-bid in the high 30s over the last few months, trading a pretty tight range. you have to go back, though, to january of this year, when investors were concerned about u.s. rate increases causing
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capital flight in emerging markets. the eem down in january. it has rallied at least 13%. a lot to do with the performance before samsung was down, it was up at all-time highs, the net stocks, alibaba. so you really have got to figure out what's in there, and what you're playing it for. i have a bearish position on it. i know pete does too. define risk, puts. i'm looking back to 34 bucks. it looks like a healthy replacement here. i may look to roll it out into q 1. if we can close decently this years, i think we have similar palpitations. >> and we look at the same things in the daytime. in terms of huge put-buying. you look at the huge rise to the up side. soo sooner or later, you wonder when we will see any correction at all. you have seen opthss saying there might be one. i'm in almost the exact same put position as dan.
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based on what we have seen in the charts and acceleration of this move to the up side. >> giddyup. >> giddyup or down. >> still ahead, the president yam -- giddy down? can presidential nominee hillary clinton save luxury retailer, ralph lauren? we have the surprising details right after the break. i'm melissa lee, you're watching "fast money" on cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." ♪ you've got me smiling ♪ again and tim cook has lots to smile about. because between samsung's woes and its new iphone, we could be seeing apple nirvana, and we'll tell you how to profit. plus, media titan barry diller has a simple message for the entertainment industry. >> oh, you're going straight to hell for that one. >> and which media stock will get there first when "fast money" returns.
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an unlikely winner to be emerging from the presidential election. check out democratic candidate, hillary clinton. doning the designer duds of fashion house, ralph lauren. she was seen wearing the designer while campaigning during the dnc and at both debates. check out shares of the embattled retailer, up 4% since the democratic national convention in july. so could clinton spark the ultimate ralph lauren revival. i'm going to go to the fashionista on this desk. >> who is that? >> guy adami. >> well, see now i'm going skate into dangerous territory here. >> no, do it. if you're taking a fashion sense from. >> hillary clinton specifically?
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>> i'm not a fan of the pants suit. that sort of went out many decades ago. she still manages to rock it. but i think, listen -- i think the stock to your point has on the back of it -- valuation suggestions it's probably ahead. they have bigger issues, bigger fish to fry than dressing -- putting the wardrobe for the potential next president of the united states. >> to be fair, you look at the first lady of the united states, currently michelle obama. when she sports something -- >> much different stock, much different company. >> ralph lauren has gotti issue. they talked about all of these one-time charges that essentially they were taking. those probably aren't going to be one-time charges. you'll see it in the first week in november. i say you be very careful with ralph lauren. the distribution channel, we talked about it, has got major issues there. is not a lot of buying to stock inventories. >> maximum niece at that. >> go to tjx. there is a lot of ralph lauren being sold at tjx, not good for ralph lauren, but it is for tjx.
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i don't think she's going to be talking around in lululemon. but that stock pulled back. >> -- >> yeah. >> oh! >> i've got a quick bun. michelle obama was a stock, i would be getting along that right now. she is going to do big things. i'm just going to tell you. >> long her on the way out of the white house for a rampup over the next four years. >> is it a paris trade with the president? we'll leave it there. still ahead, damage to the samsung brand after killing its galaxy note 7 for good. what makes the phone so dangerous? we've got a phone right here onset. and is content still king? we'll hear the surprising comments that media titan and legend, barry diller said earlier today on cnbc. much more "fast money" still ahead.
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welcome back to "fast money." stocks swimming in a sea of red today. the s&p 500 fell more than a percent while the dow dropped
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200 points. billionaire media mogul barry diller saying companies were playing the ultimate game of survival. who will come out on top? we'll have a special report. and later, we've got something you've never, ever seen before on "fast money." it is so good, we can't even tell but it. >> come on. >> but i promise, you will not want to miss it. that's a tease. but first we start off with samsung, the company killing the galaxy note 7 for good. it will no longer produce or sell the smartphone. josh lipton in san francisco with the latest. josh. >> that's right, melissa. so remember when it launched, tech reviewers called the note 7 the best big phone ever made. but that was before reports, of course, of that device overheating and catching fire. samsung now saying in a statement, for the benefit of consumers' safety, we have stopped sales and exchanges of the galaxy note 7, and have consequently decided to stop production. investors reacting and the stock
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dropping some 8%. its worst day since 2008. and today on cnbc, analysts and vcs responded to that news. >> certainly, the brand damage at a time where apple does have a little bit of momentum, probably adds further to the game in subscriber base that they have been getting, which is real important for the company. >> the problem for samsung is that unlike johnson & johnson and the tylenol case, they resisted doing the right thing. they initially tried to downplay the problems. and i think that has made this consumer problem much worse. >> there is a much bigger battlefield here. the smartphone is just the beginning of that. that is the device that almost all consumers carry around with them. and is the first point of entry for people moving into this category. >> now analysts are also asking questions about what exactly went wrong. bernstein's mark newman says
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blaming faulty batteries as the sole cause does not add up. if replacement batteries had the same flaw as the originals, he says, that points to a very disorganized company, or there is something wrong with another component all together. still newman says the company's entire note line of devices accounts for just 9% of his forecast for 2017 net profits. he says the current selloff is discounting a big chance the company doesn't introduce a note 8 or note 9. he remains a buyer of samsung. when questioned for investors, though, is when samsung does introduce a new device. what will be the reaction of consumers? are they going to rush out to buy it, or is permanent brand damage now being done? guys, back to you. >> all right, thanks so much, josh. and, of course, as dan had noted, samsung saw its biggest one-day drop in eight years, and not coincidentally, apple actually hit a fresh year-to-date high in the session, one of the few stocks managing to finish in the green. so is this apple nirvana?
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>> i think it could be as good as it gets. they'll report their fiscal q3. their current quarter, they probably can beat consensus, calling for a 1% sales decline off samsung's woes. they may be able to pick up some business. but then it may get as good as it gets. i'll tell you why, next year, tenth anniversary iphone, 2017 is going to be dominated by what comes out in september. by apple. they're going to change the whole thing on that anniversary. >> so why is it as good as it gets now? >> because as soon as you start seeing those, when it becomes february, march, april, people are not going to be buying the 7. >> they're just going to wait. freeze. >> get ready for that next big leg up -- >> that's fine. >> you're 100% right. of i think the stock will trade 125 bucks or 120 bucks. you sell the stock. there is no reason to own it until the end of the year when you get ready for the big upswing in the new upgrade cycle. >> let's take a closer look at these phones that reportedly catch on fire.
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he hadter at large joins us with the s7 and note 7. before we pass it around -- safety first, guys. i want to keep you guys safe. get ready for this. >> please. >> lance -- >> power up! >> just in case, you never know. >> here is a note 7. >> this is the s7 which never had that kind of problem. no reports of anything like that. you know, honestly, it's a shame. because this is an excellent phone. i've never seen a stunning collapse like this before. we have just never encountered a situation, you know -- we went through -- i was at the launch, it was exciting. samsung did an excellent job of conveying what's special about this device. waterproof, wireless charging, a new stylus that can write under water, gifs on the fly.
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all of these cool things and a really good design and they're flying. we gave it a great review. as of yesterday, mashable took back the mashable choice. i can't remember the last time we did that. that's a big deal. that is our imprint. we had to pull it back because this is not the phone you want and in fact not the phone you can buy any more. >> right. so -- a lot of people make the comparison of ford with the pinto or recalls, et cetera. but with the smartphone, there is no expectation whatsoever that it could harm you physically. i mean, there is is -- in people's minds, et cetera just -- and that seems to be -- at least in my mind, the difference between comparing this with other product recalls that have happened with other brands. ford goes on to sell more cars, no problem. >> well, you never carried a car around in your pocket. you know, it wasn't your trusted friend that was near your bedside, waking you up in the morning. i mean, these are devices we live with, that have literally our whole lives inside of them. our photos, our contacts. everything. so we have this sort of intrinsic trust with them. that you build up very quickly, and you grow devoted to it.
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and samsung is a company that really helped build the android brand. you know, that there were companies along the motorola. samsung has become the standard bearer. they -- people talk about i phone an apple, iphone or a samsung. that's a lot of times what they say. and i am not really sure of the kind of damage we're looking at here for samsung mobile and future samsung mobile devices. because there's a loss of trust. >> the issue is in the public, you -- you went out on the street the other day in times square. did people identify the difference between the galaxy note 7 and other types of samsung -- >> samsung is samsung. they're not going to make the distinction -- in my opinion. and also, pete flies every week, he's on a plane s. and one of the first things they say when you put your rear end in a seat and buckle up, what do they say? >> turn off that samsung note 7. >> or you're done. >> until they stop saying that, that's right there is reason enough not to buy the phone. >> that's never happened before. you know, we were told to turn
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off your phones, they tell you gently, but person after person told me that exact same story, they're get onging on the flights and they do not want these turned on and bleeding over into other lithium ion powered products that may have been able to go on the flights. people i've spoken to about lithium ion batteries in the past have said, you have to build these devices very, very carefully. i've also spoken to build experts who cannot identify anything exactly that would tell them why this is happening. and this is one of the reasons that samsung has not jumped forward. samsung doesn't know. they're trying to figure it out. because it is so small. one of the things you should know, they have used two different manufacturers for the battery, so this may be slightly different size. if you have a tiny tolerance, a little bit of space in there, and one is bigger than the other, that could be the difference. again, we don't know. >> right. >> that's the issue. lance, thank you. thanks for bringing the phones. >> my pleasure. everything is fine. everything is fine.
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>> they're kind of warm, though. >> yeah. >> well, yeah. and actually, i always thought that s7 ran warmer than this guy. >> that one is warm. >> yeah. >> don't put it in your pocket. thanks, lance, mashable. that's why we have the gloves. >> you know what this reminds me of? >> what. >> i'm not saying you jump in and buy this stock. of it kind of reminds me of chipotle, the brand damage chipotle had. so i look at it and say, you know, look, is this going to hit them long-term? i don't believe it's going to have a long-term impact on them but short-term it absolutely can. >> and i think i would be concerned on the samsung side. i don't know that apple is the huge winner, partial winner. but a lot of team, it's about the operating system, android or ios. >> maybe a google -- >> could move in that direction. but i don't feel it's time to jump in and try to bottom-pick a something like a samsung. and i do see some of the benefits it pushes towards apple. so for those reasons, i think apple goes higher. >> you kept your gloves on. the phone is leaving the building. >> how did you get that glove to fit you? >> it fits! >> it's like an oj moment.
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>> exactly. >> these are fantastic. >> trump size hands over here. do we have to give them back? >> i don't know. >> i love them. >> you can take them off now, by the way. >> pardon me me? >> you can take them off now. the phone is leaving the building. >> the chipotle thing is an interesting point. this stock was trading at an all-time high last week. i actually think it's going to be a minor blip for them. it was a beautiful phone and i think you guys are right. >> but aren't they talking billions? >> it's for their brand -- who knows financially. they are eating a huge part of the high-end phone market. >> a parent goes in to buy a phone, they're not going to buy samsung. could spell good news for apple. one trader, dan, is walking over to the -- sashing over to the smart board. >> all the m & a we have seen over the last few months. you know, one of the stars has been qualcomm, we know they have
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a lot of different chips in samsung's devices here. so in the near-term, this could be somewhat of a hit. they probably sold a lot of the chips already that were being built in the devices but qualcomm had this break out at the end of last month, reported they were going to bid $30 billion for nxpi. investors have been waiting for them to do something with all that cash, other than buying back their stock. call volume today wasn't a bunch of buyers. looked like people selling out of prior bullish bets. $2.42 to close. so that was like a prior bullish bet. i want to go to the chart here. that was the move. that's how much that stock moved on that nxpi. rumor here. so it's giving a bit of it back here. listen, who knows what they end up paying for them. i think it does make sense if you're playing for further upside and qualcomm to be long calls. >> who is going to be quid
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giddyup qualcomm? >> i think qualcomm has had a huge run. not to change the subject. who did we have on last week? >> many people. >> carter brexton-worth. what stock did he flag? do you remember? i have a good memory. invidia. he said the stock is poised to go lower. look at the stock, down 5%. there will be an opportunity to buy invidia, but i don't think it's at 66. i think it's probably closer to 62.5. for more "options action," friday, 5:30 eastern time with dan and carter and mike. coming up, more and more americans are cutting the cord on cable. so what do media companies need to do to buck the trend, and which stocks will come out on top? we'll explain. and later, something you've never seen here, ever, ever, ever. and this show has been on the air how long? >> ten years in january. >> never happened on the show. i promise you it is a "fast money" first with the highest order, and it happens right after the break. stay tuned.
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hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade.
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everything in the system is going to be challenged. everyone who was in that closed
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loop, whether it be people who own cable networks, whether it be people who supplied programming, everybody is challenged. i don't think of the established players that -- there's anything more than survival. >> that was media mogul and billionaire, barry diller speaking to julia boorstin, calling it a game of survival for traditional media companies. what will come out on top, the companies that make the content or the companies that distribute it? cnbc dom chu in the news room, breaking it down. >> so melissa, is the content king, is the distribution? here is what we're talking about. it's, for instance, disney, one of the biggest content companies out there. the dow component's had four straight years of double digit percentage gains entering this year. but now it's got its work cut out. shares down 13% year-to-date. they traded in a price to earnings multiple around 16
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times. that's according to fact set. last summer trading at around 25 times earnings. similar story with the likes of viacom down 14% year-to-date, now traded around seven times earnings, about 12 times last june. it's not all bad. you look at time warner, a real upside stand out getting 24% year-to-date. earning multiples compressed to around 16 times. they were 22 times earnings last summer. meanwhile, on the content tributer side, cable and satellite companies, seeing some positive momentum. cnbc parent company comcast does content with the nbc universal unit. those shares up 15% this year, traded 20 times earnings up from 17 times last october. charter communications, one of the few poundcally traded ones left out there is up 28%, trading at 20 times earnings. dish network maybe the down side down 4%. and trades at 28 times earnings. so after years of leadership, melissa, the question for a lot
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of trades out there in the tech media telecom space, whether those distributors are the new kings or is it still the content guys? that's what i've got over here on my side. back to you, melissa. >> thanks, have a great night. >> you too. all right. so let's trade it. we sort of divided the line. butdom makes a good point in terms of the combo companies out there. that have both. and they have been doing quite well. >> yeah, some of these names. one of the names i've been in for a while not doing very well is disney. but -- >> what are you waiting for? why do you stick with it? >> i just continue to think they will get this thing figured out. and a lot of this -- i know it goes all the way back to the espn stuff. one of the names we rarely talk about on the show which i think is fascinating that my son got they involved with and i own it now for the last maybe eight years, discovery. disca -- whatever. it is a great -- interesting company. i like what they do. and they're involved in so many different aspects of what's going on in the media space. that's one of the names we really talk about that i like. >> seaburg? >> i'm content, one of the most
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important things riding these companies. content has become very, very expensive. and i look at the likes of netflix and say netflix is a company due to report very soon. they have missed three of the last quarters -- last three quarters they have reported and the stock is up 20% since the last reporting. so i look at this and say is there a scenario where they get headwinds and could report. the numbers could be weak. that could be a buy in weakness. i do think netflix wins the game. >> i don't think it's one or the other. i think comcast is a great exactly of a company that has a distribution, pipes into millions and millions of americans' homes and give you different ways to see their nbc universal content and figure it out. it's still a work in progress which brings me back to disney or time warner, doing better. hbo now, and hbo go, those are great delivery mechanisms. i think disney really needs to push in that direction. >> all right. i'm very excited for this. >> what have you got? >> we are just moments away from something you have never, ever seen before on "fast money." i can assure you, it will be the talk of the water cooler
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>> seth again. >> what is sear siri jana. >> that was seth wilson, securing fifth place in jeopardy's hall of fame, won $265,000 on a 12-game winning streak. seth wilson joins us live from houston. seth, great to have you with us. >> thanks for having me. i'm really happy to be here. >> what are you doing with your big haul? >> i haven't decided yet entirely. i'm going to need a little bit to fund some research for my phd dissertati dissertation. and then i'm looking at a couple of investment opportunities, as well. >> well, you came to the right place, seth. actually, you know, we have to confess, the real reason why we're bringing you on the show is not just to say congratulations, but also to play our own version of the game. we're calling it "stock jeopardy" and you're competing with pete najarian from san francisco, california. david seaburg from connecticut. and dan nathan from new york and guy adami from new york.
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answers, as a reminder, must be in the form of a question and each player gets his own bell. there are three stock jeopardy categories. stock tickers, real money, and the corner office. so seth, since you are the big winner, we send it over to you. which category would you like to start with? >> i'll start with real money. >> real money. all right. real money. i'll get the question here. all right. the question is, or the answer, i should say, adjusted for inflation, this is the highest-grossing film of all-time. >> "gone with the wind." >> pete najarian. >> what is "gone with the wind." >> we'll let that go. remember -- >> must be in the form of a question. yeah, i didn't answer with a
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question. >> the highest grossing film of all-time. i'm sure seth thinks we're a bunch of amateurs, which we are. pete, your pick of categories now. >> corner office. >> all right. here we go. the answer is, this ceo and investor once said, "it takes 20 years to build a reputation and five minutes to ruin it." guy adami, early buzzer. >> who is leon cooperman? >> wrong! >> who is warren buffett? >> pete najarian, again, warren buffett. >> it takes 20 years to build a reputation and five minutes to ruin it. pete, you go again. your choice of category. >> i'll go with real money. >> real money, again. this is a favorite amongst the players today. the answer is, this film starred kevin bacon as an out of work broker who later became a bike messenger. >> oh! gosh! >> anyone? >> i know it. >> i feel like --
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[ beeping ] >> san francisco. >> what is "quicksilver." >> yes. >> anybody see that movie? apparently not. >> i forgot that one. >> all right. so pete, since you're the previous winner -- >> how about stock tickers for 100? >> stock tickers. all right. this is the answer. this company's ticker is also the term for a knockout in boxing. >> what is coca-cola? >> dan -- sorry, guy is correct. >> thank you. >> guy, your pick of categories. >> real money, mel, please. >> for how many? >> we're out of questions -- >> corner office! >> corner office. here we go. here is the answer. this former world com ceo was convicted of fraud and conspiracy -- >> who is bernie evers. >> dan is right. >> wow. >> quick. >> i'm going to stick with that one, mel. >> no, you'll stick with stock
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tickers. >> okay, stock tickers, mel. >> here's the answer. last one. last answer. listed alphabetically, this company's ticker would appear first in the dow. >> okay. >> seth. >> what is apple? what is apple? >> the champion gets it! >> giddyup! >> that was close. >> fun game! >> and seth wins the tournament! >> pete won! >> no. seth won. i call it. >> hey, dan, how are you? >> thank you so much for joining us. good luck with your loot, and good luck with your dissertation. come on back any time. >> thank you very much, i appreciate it. >> "final trade." stay tuned. how can good paying jobs disappear?
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it's what the national debt could do to our economy. if we don't solve our debt problem 19 trillion and growing money for programs like education will shrink. in just 8 years, interest on the debt will be our third largest federal program. bad news for small businesses. the good news? there's still time for a solution. ask the candidates for a plan to secure our future.
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we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. time for "the final trade." >> how ba health care is getting beat up. amgen is a buy. >> buy this off the samsung news, oled. a buyer at 50 bucks. >> dan nathan. >> i'm playing for a move back to 34. >> giddy down. >> pete. >> that was fun! >> wasn't that fun? never before done on "fast money" in all of the "fast
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money" history. amazing, right? >> good minnesota company, pedro talked to me about it before, target. got to hold this 65 level. >> that will get you done. >> all right. i'm melissa lee. thank you so much for watching. see you back here tomorrow at 5:00 for more "fast." in the . my nation 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 it make friends, i'm just trying to save you money. my job, not just to entertain but to teach and educate. so call me. or tweet me. @jimcramer. >> something has to go right or we will stuck with days like today, with rumors of


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