tv Fast Money CNBC November 21, 2018 5:00pm-6:00pm EST
how thankful we are. >> absolutely. >> for each other, for a great team, and great viewers thank you for watching. >> on friday we have a special black friday edition of "closing bell." there we are, we will be here at noon be sure to tune in remember it's a holiday shortened trading day. markets close at 1:00. live 12:00 to 2:00 why does your face look skinnier than mine in that picture. >> i can't say but it won't be friday eating lots. happy thanksgiving, "fast money" starts now. "fast money" starts right now. live from the nasdaq market site overlooking sometimes are times square tim seymour, karen finerman, guy adami. nastiness whipping out gains but the fund saturate has three names he calls best buys the ceo mark zuckerberg defends
himself and his company. is this a sign the worst is behind the embattled social stock? we start with the markets. the dow erasing the 200 point gain as the grirch comes earlier. the market having the worst thanksgiving week since 2011 the nasdaq down 14% from its high are there any hopes that a santa rally can actually come and save the market guy. >> i hate the campy things and you knew when you said it. >> what's campy. >> campy, santa clause rally. >> gobble gobble. >> gobble gobble. >> i didn't say gobble gobble. >> i thought it. you thought it >> today is melania trump day. >> i wish i wasn't saying santa clause rally because i know you i dit it that's true. >> it's a little true. >> you're not a santa clause rally guy. >> what's the bottom line. >> there is a chance no question. the fed backed off got more dovish that's encouraging for the bulls. maybe president trump and
president xi pull a rabbit out of the hat and get a deal done that's extraordinarily positive. some of the rhetoric sort of points towards maybe a deal getting done november -- what's the date november 30th or so. >> 28th? >> whatever the meeting. >> friday. >> clearly if a deal comes occupant. >> we see the market bounce with the headlines. >> today's action lousy. >> you need to test 2603 or 2532 i don't see fear or panic. i see fear, not pan zbliek you need the capitulation. >> you have not had one of the days where everyone feels as if the world is come to an end. >> what if yesterday was down like 6 something and 1030 or so. >> you didn't feel the overwhelmingly panic sell pressure on the mechanic it's like people where do i step in and buy they are not dumping. >> and we were off the lows yesterday. >> you have to be disappointed
it's a light volume day. the bears went home no one left to sell. friday looks like that too i think. we have had a couple data points this week that haven't been terribly god i don't think the kpee is falling off a cliff. i don't think the fed has gotten particularly softer. expectations have gotten softer. i think the fed does what it does we talked about 2011 the last time we had -- this feels like a lot like 2011. also meaning the first few days of november felt like september in 2011 when in fact people got so badly whip sawed after a terrible august and devastating august we came into the end of the month, early september a rally and then people destroyed before markets rallied in the first week of october. what was the metaphor, the things tying many them together people were concerned about growth and i get the sense people are more concerned about growth than they should be. >> powell definitely got softer last couple days ago or last week with the. >> new york fed talking this
woke, reiterating look a message -- i don't think is fed is looking to step away from what they're doing the i don't think the fed is ready to say anything changed for them they are not following the markets. >> you are talking about the q and a in dallas. >> right. >> and this week -- >> if you look at the probability only 71% they like that in the 90s. >> for december. >> to confirm. >> there is two parts. what do they do in december? most likely raise. the bigger part is the rhetoric about what's happening in the economy and the plan for next year that will be important but to me it's still trade as the most important issue i hope we see something constructive i don't expect it to be resolved around the 30th or whenever the meeting is over. this is a very complicated issue. >> so -- sure. >> it would be very positive to sew them back off the january 1 tariff hikes that would be important. i didn't love yesterday markets
down a lot it seems like kudlow comes out to calm down the market when it's down a lot. i don't love the reaction to the market all the time. however this president chose to have the market as hut barometer. but i think the trade deal would be the best he can do not just for the market but for the economy. they don't know what their costs are going to be. >> it almost feels that trade -- where guy started off, it doesn't feel like the bang for the buck with headlineses kudlow we didn't get it. >> we don't believe it anymore. >> i think it's a process where if we get a bad deal, good word -- a bad deal i don't think that's enough. i think trump always sets it up for i want to have this historic deal i don't think it's historic deal i think it's a deal. and the market sees through it. >>s whatever deal he has he will say it's historic regardless of what it is. >> right he will. i don't think that gets us -- the calculus changed.
>> the bottom line here folks is that market contemplates the s&p is not growing 7% that equities have news priced in. guy when you plant flowers you plant annuals and per ennials. i would argue this is more annual. >> a tulip. >> tulip are perennial. >> every year, the they plower every year. >> lilly comes back every year but soms are some things they come and you pull the sucker out and move on. >> anyway. >> i will say, all the guidance we see from the companies, i don't think the fed has anything to do with the lowered guidance. maybe a little to do with the tariffs and they don't have visibility going forward to tim's point things are actually just slowing down maybe the market does go lower after ten years of it going straight up. >> you know, what's interesting is price action in apple. >> right. >> underformed performed all the
indices and finished in the red. can you have a convincing bounce a hope for that if you have apple sitting out. >> when you consider the weight apple has in the s&p or triple qs this is the problem and we have haven't seen new money aloindicated into the market the good news the fund flows don't the indicate the etf world has given up hope. that's great news. and i think the concern we have about an apple is this is a stock for all seasons. >> don't you want. >> for value players, you name it. >> don't you want to see the market give up hope to form pennsylvania real credible bounce or bottom. >> you want to see them throw in the towel on apple. >> i want to see that. you i was going to make the -- you need to see that real flush. i don't think we have seen it i want to to see that flush. because i don't think -- to tim's point i don't think we have seen it yet. >> we're trying to find a neat
little algory. they need add country shend o and fallout. apple has down 25% down in 30 sessions that's extraordinary but the way i look at in slow bleed right now, including problems in europe -- i'm going to continue to talk about europe, and the dynamic on trade, the dynamic with the fed. those things aren't changing between now and year end. >> to your point about a flush apple is up 4% the markets and indices have given back. >> you want to see apple wipe out the gains. >> you got to see the frush. you can't tell me a stock is flushed when it's positive on the year. >> why >> i think down 25%. >> people are holding onto apple? >> i bought it at 190 as far as i'm concerned it's flushed. >> you bought it at 190. most people bought it lower. >> the it doesn't matter the
price you pay. do you want to own it now. >> people have not thrown in the towel with apple if apple was throwing in the towel you would see it. >> what is the price. >> split them up. >> split them zblum apple is bought at a value stock and growth stock we going boxes here as a value stock and growth stock you need to to see it flush now. people still believing. >> i'm asking you what price is a flush? i think down 25 is flushy kind of. >> still positive when the indexes are flat to lower on the year. >> why is it -- why is it up up for the year. >> why is it we have to care about year to date performance. >> my gosh. >> it is everybody against steve. >> guy is it everybody against steve. >> i'm not -- why is it four box. >> are you on there. >> come on, guy. do something. >> i'm on the left. >> where are you on this. >> on the left. >> in the debate. >> listen, i don't think necessarily that being up down on the year -- i mean, to me a
flush is when you see three, four times normal volume on a day where it makes it either new all all-time low or 52-week low we haven't seen it when we see the five times normal volume in apple i'll say it's a flush. to karen's point it's a significant move down. i don't think the apple story has fundamentally changed. the way they tell it has but the fundamental story hasn't change. >> one of the biggest bulls says the bottom isn't it in tony one of the biggest bulls on wall street. >> yes. >> and getting scarcer. >> and bore you to death i'm bullish until the end of the cycle after the yield curve inverse. but let me answer the flush question first of all happy thanksgiving. >> thank you. >> but the flush question is the ntds composite has downed the 10-week rate of change which is good indicator hon how intermediate team oversold you are. the nasdaq kpot li composite at
minus 12 looking outside of a secular bear market, recession driven secular bear market in 1973 you had double digit games gains in the nasdaq comp six months after that every time. when you look back what's a flush? i don't know if the bottom is in the problem on wall street is we troy and guess the price what the pinpoint time it is what i'm say something the indicators i follow unless you are in the recession driven bear market whatever you ruse from here you will make up on the intermediate team oversold bonds. we called it the re-testing process, the slop, pop and drop. and we're in the drop phase, in the re-testing phase we have looked for signs when you're out of that and there are sign that is show up. >> in october, you had a price target year end of 3,200. >> yes. >> then knocked down to 2950 more recently knocked it down to 2,900. >> no 2,900 to 2950.
>> okay. >> to make ma it clear that sounds like i'm turning bearish at the low what happens was when you had the 9% drop in the s&p 500 it takes a median 90 days to recoup that loss. it's not emotion it's data the data is when you have that kind of flush in the s&p 500 it takes more than three months to get it back. by definition that pushes you out. i think it's really important to identify that at the peak when we're on the show talking about the environment ripe for volatility you had investors, intelligent bulls at 61% the vix was at 11. the s&p my trusty indicator weekly indicator we used here was 95 that was an environment where you say you're going to have a correction worse than i thought it was clearly. but now we have investors intelligence bulls at 39% almost half that's centuria to come down again how great it was this
week you have the we cannily at a historic low pat 25. in the end of october when we identified the bottoming the process. the vix is above 20 the last month. you're ripe for a pop more than ripe for increased volatility from here. >> just quickly which sectors do you want to be in if you are a believer that there is the rice to 2950ish. >> i said i'm good at being wrong i proved that with the financials a couple of my sector calls. if you believe the fed is pausing after the next rate hike or two more hikes, that would be a 1994 environment, the end of 9 when you almost inverted the curve but didn't good employment to a slow economy, industrials financials. >> you set the pris target your assumption is the fed hikes in december and pause. >> yes, right. >> okay. >> they don't need to. what happened in 1994, the only time you've been able to do what the fed did and kept going
without inverting the curve and causing a recession was '94. we are copying that. as long as we do that it doesn't matter if they do it one or two more times it's the tone change. >> thank you tony. >> thank you, mel. >> gobble gobble. >> i was waiting for it. >> canaccord ingenuity. >> i think the s&p trades count to 2530. that's 110 s&p points from here. we bounce into year en next year i get extraordinarily cautious for the reasons tony said i think it happens quicke >> a couple of things what might turn if the fed steps away emerging markets from the lows of october have outperformed the s&p by 7%. i'm not telling to you buy emerging markets although i have said that at times. after the mid-terms and down 2% on that trade. not good it's important to note that things acting poor were exhausted. emerge being markets which seem
to be at the center since the u.s. started selling off we talked about this u.s. versus rest of the world. in terms of emerging markets outperforming significantly. europe not so much daks making new lows >> would the fed -- if the fed puts does that rip. >> it has to rip but i would abseller of rallies not buyer of dips. >> the the correction or worst, the top technician rob slimer three under the radar stocks he tells us what they are plus facebook fights back. shares rally as ceo marc zuckerberg defends himself in the interview last night tp o. could the tie-down turning and airlines stock soars as millions head to the airports for the long weekend phil lebeau is at chicago o'hare in the thick of it it's thin out there, phil. >> it's relatively calm melissa. what's the old saying? less is more we'll tell you why that formula
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welcome back to "fast money. airlines flying high on this busy travel day. phil lebeau at o'hare international airport in chicago. with more on what's making the stocks soar. hey, phil. >> three things going for them right now, the airlines have their favor. record thanksgiving traffic. about 3 million people fly today, a record 30.6 million expected to fly over the entire thanksgiving holiday weekend if you will there is also a smooth start to this the holiday weekend no major storms. no widespread cancellations. that's what the airlines need. because they have more passengers than ever who are paying higher fees yes that's good for revenue generation as well as slightly higher air fares in addition when you look at what's happening for airlines they need momentum as you lock at the airline index it's not doing terribly well jet fuel is down
that's helping but in terms of the airline index we are on track to see the worst year since sue for airline stocks the one exception. look at united admittedly united had a rough 2017 so 2018 is making up for some of that but also because they've been doing more to generate revenue that's been helping in terms of the margins as well. that's why united, the best performing airline stock among the majors out there this year back to you. phil, thank you. happy thanksgiving phil lebeau at o'hare international airport. airlines, tim, they were also helped by the drop in oil prices >> i have to say i think abrams before the drop in oil prices were quite defensive i would argue airlines have had a great year if you look at the trading rage, delta was around 50 closing up to 60 united has a great story it's not jet fuel it's discipline on the supply houts
and how efficient they are we were concerned about new capacity brought online. they were disappointing in the last couple quarters that's highway listen to. >> i disagree about the jet fuel the capacity story has been most of the year. but when they released earnings the last quarter, oil was $73. right? it's $54 now oil is the second bigds expense by a slim margin it's 25% of the cost you have that kind of move and flying at capacity, right and they get that savings on jet fuel i know they are hedged. >> look at the chart inverse relationship between the jet fuel and airlines. yes it's a tailwind. i don't think you were saying it wasn't but it's probably the biggest one in october. >> yes. >> the jet nooul fuel comes down at precipice as it did >> the oil next year is getting cut on the street by a lot joon-pyo morgan. i was tag talking to a
strategist on power lunch. his forecast for 2019 year end is $61 on wti. >> and we were. >> that's quite a spread. >> these guy haves changed dramatically frankly that's confusing what has change so much in the last couple weeks, maybe if you beat the average -- call the tourist in the energy sector doesn't follow oil how do you go from 85 to 65 were you suddenly surprised at the million extra barrels. were you surprised that the alignment with u.s./saudi. >> they are surprised by the eight country carveouts. even if it's six months they were surprised. >> i would think the most energy traders were priced. everybody was caught off sides in the past couple months. >> i never predict oil well at all. but let me tell you one more things on the airlines they did a fantastic job -- earnings were all good and able to cut costs even with oil getting out -- out of where
they had hedged to be, those costs going up a lot still able to offset the costs now they don't have that headwind anymore that's good. >> i look at tim real quick pb delta for example traded from 50 to 60 back to 50 up to 60. we're smack in the middle now. until it breaks that rage range you stay away. about expedia. and i understand it not specifically airlines it sort of encapsulates different things. that stock is telling a different story. that's going down basically since the summer i think the move recently in the airlines has been on people trying to get ahead of the energy move and catch lightning in a bottle in the year end. stocks on sale as nearly half the s&p 500 sits in bear market territory but one technician says three stocks are a major bargain he tells us what they are. live at new york city's times
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more for your thing. that's our thing. 1-800-directv >> welcome back to "fast money." the dow erasing a 200 point gain pap adding to a volatile ride over the last two months the s&p down from the september high on september 21st more than 70% of the stocks are in correction territory. but if you are looking for a bargain the next guest has three stocks he says could break out into year end. let's go off the charts with rob siemer. >> let's look at the s&p's at the start. still tentative in the situation
whether bottoming or not a lot of debate whether it's a re-test or not i think it is. but there is tremendous debate and not a lot of extremely strong technical evidence to say this is the bottom yet there are a few things happening starting to see the rsi data positively diverge getting higher lows developing as the mechanic comes back and re-test lows then we see things outside of the s&p 500. things in china. the 10-year bond yield peaking on the marlanaen we think things are improving. we have a few stocks that time bottomed out the market there is tremendous resistant about 2,800. that debate on the market continues into december. my view, opinion, guess is that it holds certainly going into the g20 then recover into year end. let's look at ideas that have a stronger technical setup the home builders have been a disaster for 2008. i think 10-year bond rallies to the upper end.
the down trend started in 2018 and they are starting to peak. the home builders have come down a long way if we look at the resistance band back through 2013, '14, '15. back to the 200 we can week. we love that as a support level. we think it returns. we think they are washed out the risk reward into the year end we think there is a seasonal bounce this is a stuff stock to look at blackrock. who wants to own the asset manager in this environment? but again similar to poulty this is a stock in correction for a year i want not as though it's breaking like technology this is 12 months or 10 months into the correction. and looking at the momentum data, the 14-week rsi that's a deeply oversold level. last time we saw that was beginning of 2016. again, names that come down for a long time for a year or so look like long-term support at 200 week moving average.
i like the risk we ward into year end despite the concerns of passive versus active. so amat. applied materials began to peak in 2014 and the relative performance started to roll over back to 200 week you have damage that weekly momentum rsi is almost as oversold as at the beginning of 2016. i think the three names on a risk reward basis are positive into year end into the first quarter. i think there is a good seasonal bounce in those stocks. >> rob, come on over stephanie will bring the chair over thank you, steph rob we are having a fierce debate i'm not sure if it was debate. it was everyone against steve. >> even though we're all long. >> here a question has apple -- does it look like apple has flushed? and the can the markets bounce if apple sits it out. >> we are talking about the flush as in what we saw in
2007 -- or 0u, 2009 with you are no where near. that's not the correction we are looking at i think the correction is more of a cyclical unwind apple is getting close can i definitively say that's the bottom no but i think you are close i'd be a the better buyer than seller at leaves levels. >> you think we chopped enough wood to the downside. >> chopping wood, great terms tonight. >> it's a oversold on the short-term basis. >> looking at the technical on the market as a whole -- i trade them as little grains of sand within the overall market. when you see the market is flattened to the point of the flush, you sort of need all those heavy lifters. amazon is up 28%ier to date. the conversation of what does year to date matter because you still have have a lot of fat to trim from people have not thrown in the towel. >> lots of people bought stocks back in '16, to '18. the year to date discussion is debatable as you had the debate.
>> as we did debate. >> i'm not convinced it matters that much. it's more on the last recent run we had in apple, the pause in fall where it took off that's unwound. think about the other technology stocks, facebook for example, i'm not a big bull on facebook but down at the 200 week we have crushed technology stocks nvidia falling apart it is it the bomb? i'm not convinced on nvidia. but you have taken heavy duty tech stocks down hard. i think the risk reward in to the year end is upside. >> can i make a compensate on one of his three names. >> yes welcome. >> the amat stands out amat was at $65 trade. now at $35 just reported the fourth quarter which i thought was good but first quarter guidance miserable. they took the stock out to the wood shed. >> another one the manufacture o metaphors this segment four total so far. >> if you look at a huge volume
day. you wonder how much is in this and i get semi equipment has been grim death. but say how much is in the stock? most of it is. and even when analysts took them in en masse took them down to the 50s. the risk reward in amat looks interesting. >> a name like blackrock has been left out in the cold. the dynamic of lower fees and expectations earnings are stagnating here. the chart reflects the business model. this is not a company about to fall off a cliff this is one of the biggest money managers in the world at a time when the wealth management is healthy. these guys made almost $$30 a share in 2017. making 29 and change and maybe 28 next year fees are compressing in the industry that's something people continue to push down on the multiple. >> karen like any of the names. >> i thought poulty. >> we need a metaphor. >> it's in the house.
>> oh. toucha. >> i he know don't know if rates is the impetus to get people to boy a house now. we'll see. it's not reflecting a lot of optimism at this point. >> none of them are and down into the heavy duty support from my standpoint, 200 week moving point. >> on here we have 200 day. >> it's a weekly chart. >> okay. >> and i think rates are stalling out. >> lates and lumber prices come in by 40% or so. you have a good foundation if you want to buy the home builders. >> the the eighth metaphor/simly you want to tas one in. >> i'd like to do there are a burcham of people dublin public in morristown. they have a huge tv screen and they are watching "fast money. so i'm saying this is the preholiday party and they're "fast money" fans.
hi to the folks at the dublin public. >> hello dublin public. >> see who we say hi to next rob, thank you rob sluymer. mark zuckerberg standing his ground amid all the controversy. and whether to buy the stock down 35% since july. cannabis retailers bracing for what will be the first holiday where sales are legal in many states but there is something else on thhozoe rin that could give the stocks a boost we tell what you that iswhen "fast money" comes right back.
you are not stepping down at chairman. >> that's not the plan that's not the plan. would anything change that >> i mean, eventually over time, i'm not doing this forever but i certainly am not currently thinking that that makes sense. >> that was facebook ceo mark zuckerberg standing his ground on cnn last night amid the controversy surrounding the company. but it's not just zuckerberg fighting back. the stock rallied in the past two days even as the broader market saw red could this mean the worst is over for the company karen >> i hope so i am long the stock. tim has been writing a lot. >> a few op-eds ohhen this topic. >> i think mark zuckerberg is the right person to lead them out of this. when you think about other ceos
able to take punches but turn it around oscar munoz we were negative on octavia ar munoz and his ability to lead united airlines. steve jobs, the most famous, left the company and came back now look at apple, 160 could have been 230. and showered schultz the this founder ceo -- not oscar munoz -- but is really important to the business plus you can't vote him out >> you are stuck with him. >> this is a real board. they don't have -- it's not a tesla kind of board that musk controls this is a real board you have ken chen all the. and iris kin boles and susan -- this is a real board. i would be very concerned if they kicked him out, very. i don't think that should happen at all i like the stock rallied the valuationis cheap.
i think earnings coming down. >> mark zuckerberg may be there forever because of the voting share structure. are these comparisons really comparable only because right now the company is facing potential or regulation -- their core business operates so let's say -- let's say starbucks for some reason lawmakers were infutured how they brewed their coffee and said you have to do x, y and z to make sure the could have feen content isn't too high or whatever that would change the model somewhat we're at a moment the you're thinking is the model going to change. >> the model could change. that could happen. we think about microsoft facing a multi-year anti-trust. the model could change here. this is not a crazy price for in business even if it is chopped up i don't know what the best way to do that would be. but, you know, the multiple is not high the cash is enormous
the bill is still a very solid business i understand the margins are coming down but they are still significant. >> you wonder when -- crisis management this stock crashed effectively. we can say what we want. but it was a $05 six months ago. trading at $137 now. and then you have the mark benoffs of the world making a comparison to nick teen, that's a problem. i don't think mr. zuckerberg made friends and people are taking shots. >> this is a crisis of trust let me say something positive about facebook they are not alen but the core product which is held in question is singled out the most and should be when i consider correspondent governance and think about how people think about a stock who whose core product has been at risk and they haven't disclosed this. i think they deserve a beating investors need to evaluate
company the different investment metric in the cool box to assess cyberrisk, especially technology companies. >> technically support in the stock is 20% lower if this continues and we see fundamentals match up with technicals you're looking at a couple of year ago support levels which is lower from here. >> options traders are putting their faith in the comeback for facebook mike khouw in san francisco to break down the action. >> hi, there we have seen a lot of skepticism in the options market for facebook and the options price imply volatility in the coming weeks and months however today we saw bullish bets outpace bullish bets include buyer of calls and sellers of previously purchased puts taking profits we saw that activity today one of the raids that stuck out with a short-term speculative bet that there is a bounce the coming week was purchasers of the november 30th weekly 142 strike calls
the 142 strike calls that expire a week from this coming friday spending 80 cents. they have a 15% chance of expiring in the money. they are not risking a great deal to make a bet the stock could pop. let's bear in mind it was significantly above the 142 strike price recently. >> mike, thanks for that. >> the weather looks like the trading in facebook looks awful. kind of dreary. >> that was -- >> it's a little bit gray but it's not as smoky. we're happy about that. >> this is true. >> good progress on that mike khouw in san francisco. we're off this friday. >> what? >> you can pop in an oldie in the vcr like guy but be back here for a brand new fresh edition of "options action." you can get us online too, cnbc/pgs ohs action. ready set shock. the group has taking a beating the names that could see a
rally. a number of key bills could spark a rally for pot ocstks we explain, more "fast money" we explain, more "fast money" two minutes away looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪
welcome back to "fast money. can black friday boost retail out of the red retails higher today after posting eight days of losses that was the longest losing streak courtney reagan joins us from kolls with more on what shoppers can expect. >> the xrt retail etf is down 14% the last three months, melissa. well underperforming the broad are market and investors are starting to worry the retail strength that began the last holiday season run its course but retail ceos are confident the holiday season will be strong and their attention is focused on the first big weekend. as it should be. deloitte expects 70% of meshes will shop at some point in some way this weekend between thanksgiving and cybermonday less than 24 hours from now, the barak friday sales will be under way in most retail stores, sooner online.
here at kolls door busters start at 5:00 p.m. on thanksgiving doors stay hope until midnight on black friday. inventory management is the most important part getting right products priced right and right quantity distributed to stores and fulfillment centers taking a year to figure out seasonal workers have been trained and they fet the first test tomorrow. websites battle tested as well to prepare to handle for the traffic spike. macy's ceo jeff gennette says his website is ready he doesn't believe he will run into the checkout snafus that happen last year a difficult day to experience trouble like that. back to you, melissa. >> courtney, thank you courtney reagan at kolls with so many retails deep in the red. we thought it would be time for a game. >> a confusing game. >> game. known as shop it or drop it. i will say a stock, such as best
buy if you like the name you say shop it. and you will see this. if you think it is a pass, a sell you don't want to own it you drop it and you see this all right. great got it. >> got it. >> how you doing well. >> do i have to go first. >> we'll use the best buy example we walked through down 25ners in the last three months shop it or drop it. >> you know as karen and tim seymour. >> he is not playing he can't. >> in baseball or in sports if you are shopping a player you're trying to get rid that have player. >> same with companies. >> shopping. >> but not on "fast money," no, no. >> shop it means something i want to buy. >> put in the bag and take home. >> like amazon shopping cart. >> add to cart. >> drop it means get rid of it. >> best buy. >> yes. >> drop it and you want to say wait a second, this is reasonable, the stock is obliterated seems to have a cap it laer to bottom
comps good all those things true. but let me say this you look at merchandise inventory last quarter was up 23% against extraordinarily paltry sales growth and it says to me margins in the next quarter, unless they knock the cover off the ball which i don't think they do, are going to really be tested. so i think this has a very good chance to see levels we last saw in, i don't know, september of hast yearish 5 a bucks. >> i don't agree with that at all. despite the fact thatguy is no running in for a floor buster. i would be shopping the stock. they are the last man standing the free cash flow is proven buying back $1.5 billion a year. the comps are the biggest thing. they are looking at the bar. best buy even though guy is no longer showcasing he sat op the couch all afternoon on sunday. >> i don't do that. >> mel does that. >> you said on air you -- you
said on air you to go to places and look and go home. >> i go online and get the best price. >> that's called showcasing. >> i don't sit in a recliner using the tv all afternoon and go home. >> i'm old. >> moving on here tiffany down 22%. shop it or drop it tiffany. >> i shop it not only hopefully the blue box shows up at my house but the bottom line is this is a company also that's growing in the high single digits in global sales, u.s. same store sales are -- freshening up the brand with tiffany true, and whatnot. i think they are more relevant to the young folks i'm shopping. >> what about though you love to talk about the dollar, the strength of the collar, half of their business outside the united states, a little more actually. >> i don't -- first of all to be consistent with that i don't think that the dollar is the run away train and if anything i believe the dollar is range bound therefore i think the headwinds in the guidance on fx may be a tailwind
if it recertifies. >> target taking 17% shop it or drop it karen. >> shop it i thought that was so overdone i mean,s in a company that is successfully investing dollars to grow the business, right? i don't know why they got punished for it? also wasn't like a superhigh flier stock. i thought that was a complete overreaction the three-day rule monday is the third day. i'm looking to buy i think management is doing the right stuff. >> they got ahead of the skis when the ceo says it's the best environment he has seen ever for the consumer then you see the stock take off. >> it's a face plant on the skis >> metaphors >> but into year end you have a number of retail companies warned going into year end about the holiday season i would think you would -- what am i doing drop it on this one. not shop it. >> confusing, the drop it bag is red. the shop is bag is green
not last but least macies trap it or shaels. >> they beat on sales and earnings raised full year guidance and the suffolk gets hit this is not a fundamental story. this is environment for the shopper, consumer. i would drop it. >> all right still ahead, like a delayed reaction our pot stocks heading higher for the holidays we tell you why, giving more marijuana companies the green light the permission to move light the permission to move into the that unlocks insights from all your data and puts it to work with ai. get a faster, more secure journey to the cloud. the ibm cloud. more "fast money" after this art. art. ♪ ♪
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. welcome back to "fast money. pot stocks lighting up across the board. and in the slate of possible new bills could send them higher atyty roy in san francisco with the details. hey, adidi. >> hey, melissa we are at a dependencery in san francisco. and this is the first year that california is entering the holiday season as a legal recreational state and soon new jersey could be one step closer to legalizing recreational marijuana before the end of the year. and that's because a whole slate of marijuana bills, including one that legalizes recreational marijuana just got the green light for a committee hearing on monday that's a joint committee between the senate and assembly in new jersey now if it clears the committee it means it goes to a floor vote for each house that could come as early as december and if the governor of new jersey signs off on the bills, which he has indicated he is in support of legalizing recreational marijuana, that means the state could become a
legal recreational state by the end of the year. let's look closer at some bills. one legalizes recreational marijuana in new jersey. one expands the state's medical marijuana program by easing restrictions and create a cannabis regulatory commission and another bill woulds expunge convictions from records and the each of the lawmakers tells me this is a long time coming, one or two years they've been discussing and debating in the meantime we saw a lot of major cannabis stocks light up as you mentioned, cronos, tilray, aura making up ground they lost after the canadian legalization last month. >> thank you adidi let's go our own pot expert, tim seymour long a number of stocks. also sits on the boards for three stocks for all of the disclosures go to fast at cnbc. >> nice green shirt on aidy.
you have the farm bill which makes hemp fully legal that means a land grap for big players. they are in the space. essentially without getting deep in the hemp with low thc content actually will be different than kbz. cbd hoil process this extends the wellness product. >> that's the farm bill, the newman bills would be. >> suddenly you have momentum very exciting. >> final trade is up next.
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final trade, tim. >> best guy guy. >> karen. >> foot locker >> buy match. >> guy. >> at. yes speedy recovery. se see you back here friday, no monday at 5. >> happy thanksgiving. my mission is simple, to make you money i'm here to level the playing field for all investors. there's -- i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to mad money other people want to make friends, i'm trying to help you make money my job is to educate and teach you. call me at 1-800-743-cnbc or tweet me at jim cramer we too often invest for the day. i hear people talk about what is wor