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tv   Fast Money  CNBC  December 16, 2019 5:00pm-6:00pm EST

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by tariffs in the trade war. investors expecting another big swing tomorrow some analysts say to focus on the fiscal year outlook again wondering if the company can ut it enough last quarter >> down a percent ahead of those results, coming storm. we're out of time. >> "fast money" begins right now. yes it does. contessa and wilf, thank you this is "fast money. i am brian sullivan in for melissa walker your traders are tim seymour, and also joined by jeff mills, chef investment officer at bryn mawr trust we begin with breaking news on boeing sources telling cnbc moments ago the company will halt production on the 737 max airplane beginning next month, stock moving lower all session and lower in the after-hours let's get more, phil lebeau live
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in chicago with more. >> drone this is a decision to halt production that was reached by the bored of directors from being who med yesterday and today here in chicago. and we have been hearing from people familiar that the board was leaning towards halting as owe posed to slowing it down it's currently at 42 per month that's how many they build it's been at that rate since back in april. remember, it was grounded in march. what the company decided, at some point when you have more than 100 built but not delivered, it makes more sense to shut down the line until the grounding is lifted. the workers who are out at that plant in renton, washington, about 12,000, will not be furloughed they will be redeployed to other plants or projects within the company. but they will not be laid off. they will continue to be paid. the question now is, how long does this go how long will they shut down the
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line and nobody is quite sure the trigger for bringing the line back up will be when the faa is close to or says, look, we're going to lift the grounding here most believe that's likely to happen maybe early february, maybe mid-february do the math. you're looking at a production halt that could likely last anywhere from 45 to 60 days. but again, that's just an estimate if there are further delays, if the faa says we're not ready and it gets pushed out further into march or april, you could see this halt in production last even longer. again, boeing has decided that it will be halting 737 max production i can't remember the last time this company has ever done this on hr own. there have been work shoppages because of machinist strikes i don't remember them saying we've got to shut down the line.
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this is unprecedented. >> a couple quick questions. what do you know about the order book for the 737 max how many for how many airlines, how many years pretty deep book speaking of machinists, my layoffs planned? >> no layoffs, not going to be furloughed, any of those workers. some of the suppliers, boeing is going to be work with with their suppliers. spirit aerosystems is a good example, they build the fuselages. they're going to try to work with suppliers so they do not have to furlough any of their workers and they want to continue as much as possible to continue to see that those companies continue to supply boeing with the key components there. and in terms of what this means for the bottom-line, they've got 4,400 maxes ordered. that backlog hasn't changed. as long as it's there, that's the support for the stock.
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it's down 323, 320 a few months ago. eventually unless they completely scrap this plane and nobody is expecting that, they're going to build and deliver. that backlog extends out seven, eight years, something like that. >> you talked about spirit aerosystems, there are problem hundreds if not thousands of suppliers inside of every plane. look down at the industry i cover, oil and gas, it's slowing down you wonder if this max production halt could have a ripple effect on almost the entire american economy? >> it certainly will have a ripple effect in the puget sound area, the pacific northwest. but the fact that the workers will not be furloughed at the renton plant, that boeing will continue to pay them, that's going to soften the blow a bit you don't know what happens with the 600 or so suppliers out there. boeing is going to work with them they're worried when we fire up
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again and ramp up production later in 2020, then in 2021, they want to make sure that the suppliers with meet that demand. they don't want to see the suppliers turn around and say, we're cutting 20% of our staff that's not what we want. this is the tricky balancing act that boeing is going to have to work through with its key suppliers. >> phil lebeau a big breaking story, appreciate that shares of boeing getting close to erasing all gains for the year that's kind of a technical line in the sand subpoena they need the stock to stop there. down 4%, another in the after-hours. >> for people who want to see good news, i'm won of them i own the stock. there's a couple things you could have anticipated this. they raised almost $10 billion earlier in the year to offset the free cash flow i mpact. they took a $5.6 billion charge in the second quarter against building i think they're going
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to have closer to 500 on inventory by the end of the year i think this is not a great day but it's important they're being pro active this is as much political as industrial. >> they're getting in front of something you can argue that should have gotten in front of maybe months ago doesn't matter in terms of the level, 320 and change was the low in the middle ofaugust that's where we probably are as we speak right now we've said for awhile that this stock will continue to vacillate between 325 and 375 level. if you go back on november 26, traded 375, we were sitting on the desk, said now the time is to pull the rip cord and take profits. the good news is today the to be traded about four times normal typically about 4 million shares, traded about 16 million today. a lot of people getting flushed out. the concern is the tape at some point works against you and this
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is not the last headline your real level, a year ago when the stock traded down to 298, that's your ultimate support i think there should be zeebt support at this level. >> if you look at the two-year chart, and it's not exactly perfect, you basically made no money in the stock over two years. that is before the 737 max tragic accidents that occurred boeing hadn't been a rocketing stock before this occurred. >> but the prior year it had. >> it had. >> they just put out that statement that they are suspending production, and they talk about the reasons why being uncertain about timing and also including the timing for training i don't know if there's anything to be inferred here about whether they actually think the timing might be put off even a little bit further but i don't know this -- maybe it opens just a tiny crack i know phil said nobody is
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talking about it but ai tiny crack, what if the 737 -- >> gets scuttled >> yes. >> we've talked about the possibility. everyone says that's never going to happen. this plane will hit the skies and fly again. you wonder what if there's no guarantees. >> never but i think it is good news we held the technical level the trend line is basically flat i would look for a clear change before moving aggressively into the stock. this isn't going to threaten the nature of the company. once they start to deliver those planes that have been built, you see better cash flow positions likely i think the supply chain story is interesting if you look at a company like spirit aerosystems, they've been producing at a higher rate than full planes are produced do they need to cut back on production their stock has held up a lot better than boeing you can see more room to the downside there than boeing itself.
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>> i think we have phil, phil, are you still there? >> yeah. >> i want to bring you back in it's really a -- do i understand there are some smaller players, a duopoly in large scale manufacturing. have you talked to anybody that suggests there might be a reputational issue going forward, delta, united, they only fly the 737, is there any risk, boeing screwed us over on this one? we got bad information from the company. we need to take a look at airbus >> yes that is definitely out there and i have heard that from people in the airline industry at the same time, they go into this understanding that there's only so far you can go with a duopoly, that if you went to airbus, how much of a incentive could you get to become let's say if you were southwest to also start ordering airbus
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planes on the a-320 side not a whole lot. maybe some but maybe with a smaller plane like an a-220. no doubt at all. you can see it when you take a look at what's going on with the a-321 xlr which is the long raij plane airbus introduced this summer boeing was supposed to have something counter to that introduced there was none clearly boeing is focused on the max. the xlr has racked up order aever order. we just had one from united. that's united saying we're going to place 50, that's the order with airbus. there is a represent taggal risk for boeing they are well aware of it. it is not just idle chatter. you do hear about it in the airline industry. >> i know there's also other breaking news happening on boeing as you're sitting there answering that question. more news is coming on this big
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story. what else is happening with b.a. >> the latest you're referring to them making the official announcement is that what you're referring to >> yeah. i know you probably haven't had time to dive in. is there anything new in that? >> no. what's interesting is it's pretty much what we have been hearing about for the last couple of days, that is likely, said, look we have previously stated we will continually evaluate our production plans. should the max grounding continue longer as a result of this ongoing evaluation, we have decided to prioritize the delivery of stored aircraft and tem rooirly suspend production beginning next month we believe this decision is least disruptive to maintaining long-term production system and supply chain health. this decision is driven by a number of factors including the extension of certification into 2020 the uncertainty about the timing and conditions of return to service and global training
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approvals and the importance of ensuring that we can prioritize the delivery of stored aircraft. we will continue to assess and i think there's one last part of the statement, our progress towards return to service milestones and make determinations about resuming production and deliveries accordingly. that's a nice way of saying we're not sure when this is going to be lifted, when this plane will be approved by the faa and we're not sure when we will resume production expect 45 to 60 days but that's purely, purely a guess. it could be shorter or longer. it depends on what the faa says. >> curious how much is the politics that -- there was some said the faa was not happy with the guide ansz >> absolutely. there's no politics there. the faa has been frustrated on so many fronts when it comes to this process with boeing and when boeing put out the
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guidance on november 11th, saying we expect certification by the end of some year and possibly some commercial service for some airlines by the end of j january, they went nuts. there were a bufrmg of things that needed to happen. there's some public comment periods that are built into some of these steps it was from the beginning. saw that almost immediately from the faa. they said, oh, no, no, no, no, you are not going to be the ones telling us what's going on it continued they would not bring back that guidance that's when you saw steve dixon meeting with mulenberg that's when he said to him, knock it off we're not ready to approve this. they've got about 10 or 11 steps to go through. there are public comment periods in there he's not short sitici-circuitins
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pros res. >> probably the most important stock in america because of its heavy price waiting inside the dow. thank you very much. >> you bet. >> karen, start with this, denis mullenberg, lost his chairmanship does he deserve to lose his job as ceo >> deserve, i'm not sure. >> could he? >> you could. >> are you implying there is something that went wrong the communication? >> i'm talking about the disconnect, the initial report, and the faa, and the lack of communication. i'm wondering about the c.eo has made such tactical errors zbl k >> i don't know. this is surprising to me, the suspension of production because it opens such a can of worms in terms of their supply chain and what could happen to them? if they want to revamp and get
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going again is that supply chain able to do that? are the customers there? how much can you sell that plane for? how much do you owe in continued delay? how much do you owe the airlines that have already ordered them i don't know i think, god, it's a lot of pressure on him. i think that was a serious misstep though to confidently convey we think that we'll be flying in the first quarter. >> i think about thinking about the stock and muilenburg and how to trade around that it's difficult to buy and sell based on that in or out. you have to guess whether he's going to be in or out, guess that correctly, and guess whether the market is going to like it or not i think it's very difficult to try to trade around that and make a decision solely on whether the ceo is in or out. >> would it be beneficial for the stock if there was a new ceo at the he will malm at this tim? >> the ceo oversaw a rerating of
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massive pro portions which talked a little bit about the beverage on the balance sheet in the short sterm, not a big deal they went from 0.4 to 2.1, it can move quickly when you're building and not sending planes out there. >> boeing falling 4% in the current session, over a percent in the after-hours much more. coming up, it is the nonstop rally to record highs, but one top wall street strategyist says all good things may cometo an end. it might be time to take cover. speaking of the record rally, if you're worried you have missed it, fear not your chart master has got a few names to help you catch up to this as always, we are live in new york times square, there is so much more right after this at fidelity, online u.s. stocks and etfs are commission-free.
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glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your local xfinity store today. welcome back to "fast money. more breaking news for you right now. a market flash on roku julia boorstin. >> roku shares down about 4% in
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after-hours trading, this aas they announced steve louden stepped down he is involved in choosing his successor. the stock is having a big year despite today's decline. it is up more than 350 year to date and more than 4% it was up today. >> guy, this has been a rocket ship now the cfo leaving would that change your mind >> i don't think that's -- it sells-off the knee-jerk makes sense, dan nathan ridiculed me the other day thinking that roku was headed back to $200. i still sort of think that i think i can see how people would see this as a heard ware thing, left in the dirt. it's been amazing. the moves have been great. technically it's done everything right. it's got to hold this 130 level. again to the levels we saw just
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six weeks ago. >> 107 about 14% trading now, i would look at that range as a potential support more longer term. >> take a look at this mystery chart. we're going to find out why carter war says that stock, maybe it's a stock, make a commodity, is ready to break out. plus tesla shares on the move today after a long term bear said even he iseeg me side sinso of verizon as a reliable phone company. but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second man) virtualize their operations. (woman) and build ai customer experiences. (second woman) we also keep them ready for the next big opportunity. like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. yeah. only pay for what you need with liberty mutual.
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there's room for more than just the business you came for. whether that's keeping up with what you always do... or training for something you've never done before. that's room for possibility. ♪ welcome back to "fast money. we have a big interview coming your way tomorrow. former fed chair alan greenspan will sit down with the "squawk
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on the street" gang. check that out tomorrow. all right, happy holidays, what a december -- >> thanks. >> you're welcome. what a december it has been, another record day, all three averages closing at highs. the nasdaq up 35% this year, the s&p up 27% but this guy says enjoy that while you can. they are likely not here to stay blackstone's chief investment strategist thanks for coming on. >> thanks for having me. >> he's jay-z by the way. >> i was jay-z before jay-z was? >> are you going to do the ice bucket challenge on this rally is this all she wrote? >> unfortunately i think i'm going to have to, because if you think about 2019, it was a year where every single macro risk
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was thrown at this market. brexit deadline, trade war intensify, manufacturing recession, earnings recession, yet markets didn't care. why? because 2019 was the year of the central banker in other words, central banks had the biggest pivot, balance sheet tightening, expansion, hiking rates to cutting rates. more than since any time since the great financial crisis we look at 2020, i'm willing to bet low level be rifbsz, trade and brexit what's the policy response going to be? we're not going to get this massive pivot the way we got in 2019 the fed has said they're on hold and, you know, we might get incremental balance sheet expansion or whatever else, but not a massive policy response we saw in 2019. i think we have to prepare for volatility. >> fair enough, but the old adage, don't fight the fed and don't fight the tape both appear to be mush pushing
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the market to new highs every day. why would that stop with the rollover in a calendar >> i don't know when we're going to see this volatility over the over of the course of the last couple of months. i thought it would start to kick up what we underestimated this massive policy response. but do you get your same bang for the buck when you go from $23 trillion in debt to $24 trillion or globally from $255 trillion in debt to toile $60 million in debt? it's diminishing returns you still face the same headwinds. there are ten stocks today that are 23% of the market cap of the s&p 500. it'sst highest concentration since the mid snients and then before that the mid-'60s there are opportunities of under owned stocks and sectors i think there will be buying opportunities. i just don't know it's concentrated in the big ten. >> what are are you thoughts for
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earnings in the next year? if they're there and rates don't move we can see a market higher? >> i think that's optimistic case i think we've seen the bottom on the ten-year i think it's going to move higher there are inflationary pressures growing. wages are continuing to move up. look at the production nonsupervise rooer rank-and-file employees. they saw wage gains that we haven't seen since september of 2008 labor is getting tighter and tighter. boeing, they're reluctant to layoff and furlough employees or in their supply chains because the ability to find qualified workers, companies dorcht want to let go of them. compani they're are extracting higher wages. these are pressures i think are going to push it up higher it's going to be a more
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difficult environment for valuation. my guess is it's probably less than the street today. >> reluctantly give us your silver lining in those sectors that you think could do okay it sounds like you think the fed is on hold to me a fed doing nothing right now in the economy that's going to print 1.5 to 2% is a windfall where can you get excited? >> they've told us they are on hold it's not much of a guess they're doing their best to telegraph this there are a lot of companies out there that are cyclical but insulated from global trade. you see those more in the small and mid cap here in the united states you've seen this strong defensive rally in 2019 where some of your dividend payers ended up being -- anything outside of those top ten leaders is fair game you've got to do some mound fundamental work because you're not going to have this sea of
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liquidity out there. >> best new idea right now from blackstone is -- >> we buy companies, real assets, we invest -- >> res dential housing the biggest landlord in the united states? >> i think low jitics is going to continue to be trend not only here but also in urn amazon has done a ton. >> i think we had a $12 billion warehousing deal jay-z, excuse me thank you. >> thanks, guys. good seeing you. we are heading for one of the best years for your investments in a long time but if you have been underin vefted or uninvested, don't beat yourself up too bad. the chart master is here he's got a few names that he believes still has room to run carter worth over at the plaza. >> names that are hovering at well defined tops at a common level and have not made progress
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for 18 monthsing with lagging the martha the presumption is they're going to break out as the market did so if you picture these tops, we know the s&p has done this right? the betting here is that isrg, one of the biggest health care stocks, is going to do it. look at the next, exact same, because it doesn't matter the operating business approximately verizon, well defined tops you can zrau it this way, so many ways, the betting is this is going to exceed those highs look at the next one vf corp, big consumer name, well defined tops the betting is it's going to exceed these tops to break out these are the kind of names that have held back and they have potential. becton dickinson, break out potential there. i would buy it and then finally one of the biggest of all, well defined tops at a common level, you can see it, feel it, the betting is that this breaks out
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what's so interesting of course is he's got a lot of utilities which are doing well, a lot of apple and railroads and those are also good. this stock probably catches up with a lot of those. >> dhaurt master carter worth, thank you very much. we've got good names there intuitive, we arecizon. >> becton dickinson is the most interesting, and carter you can see him each friday. >> listen to you making a promo. >> what i'll say is becton dixinson is the most interesting. isrg, it's breaking out, but it ain't cheap. if you want a stock reasonably valued, bdx. >> berkshire the exposure to the banking sector and some of those things industrial is very encouraging for laggards that still have value that's a chart and name in this environment that you follow. >> i think it's hard to argue
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with carter. i think the setup is good. you could have additional momentum. >> any one that really sticks out to you >> not in particular what i will say, with the momentum of the overall market you could have additional momentum karen, to your point, you have 178 for 2020, even if that gets cut in half down to 170, if the market is willing to pay, that gets us to 3400. you don't need tremendous amounts of expansion even if you pull back earnings expectations it's enough to push the broad market higher. >> if i had to pick one of those i'd probably go with verrizan. >> i knew it what makes if look so attractive >> i think that as rates have come down a lot, that's huge for them they have a balance sheet that lower rates obviously better but -- >> they got a lot of debt.
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>> very short way of trying to say what i was saying. they have a nice dividend yield which i never usually like to look at to be pegged i think they're doing the right things we'll see if streaming helps them i think that entertainment asset might have more value. all those reasons. >> all right coming up, citigroup says it is time to bank some coin on one big bank stock 37 we' we're going to name that coming up. uber, a rare big up day for that we'll give you the reason and the trade coming up. le love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have. or sending corporate their expense reports. i'll let you in on a little secret. they don't. by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. ♪ music
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all right welcome back to "fast money. one big bank getting a big boost from another bank. citigroup upgrading from a buy to a neutral analysts see about 13% upside, citing little credit risk, easy fed, improving capital return. the move pushing the banking etf to a record high tim seymour, do you agree with the call is goldman sachs a big-time buy? >> this is a time where it historically thrived, risk on, a lot of opportunity with low
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rates, derivative products if you look at the financials that could have been another where covers showed after ten years we have a breakout we're at all-time highs on the xlf. you can own goldman here, if it's still no longer the same but it's goldman the valuation is still something that has a lot in it. >> stocks overshoot to the downside i think it traded down to 145 and chances are it overshoots the upside my metrics are, what's book value, book and goldman vas laits, but i don't think they deserve much more than 1.4 times book value and you can do the math. so i think that 255 level gets there, it may, but it will be extraordinarily stretched if it does. >> the analysts raced from 222, 55 the analysts had to do
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something. downgrade so they obviously upgraded and tried to ride that out. is is there any other stock that you maybe like more? >> blackstone. we've talked about that for awhile these other stocks are doing very well, blackstone is making all-time highs as is jpmorgan, but seemingly every day. i think bx, that's what you want to be in. >> if you read the note it's a lowrate story. this is a brokerage they're going to be doing better the yield curve has been steepening however, and i think there's an argument to be made, that the curve could continue to steepen. you would think long-term rates are tethered because of the feds, those should be a reflex ks of long-term rates. but the term premium has been negative and forcing the yield curve down we're seeing global growth starting to get better, negative yielding debt from 16 patrol 11 trillion and started to see those differences between
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international and the u.s. compressed as that blows out you can see our yield curve steep -- >> for our viewers and listeners, this is not a screaming, pounding the table by citi they said we don't see a lot of downside what they preferred it seems like is american express and capital one which warren buys and makes those comments ahead of the note. >> goldman has been left behind for awhile, so this was i guess as good as it gets i'd rather be in bank of america. goldman is sort of in the process of figuring out exactly what their business is bank of america is neck deep in the consumer business. i'd rather be there for a valuation that's not much different. >> likes bac over gc a lot more to do still here yet on "fast money." here's what's coming up next. >> ladies and gentlemen, start your engines
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we'll tell you what sent shares of uber, lyft and tesla into the fast lane. plus will fedex deliver? why tomorrow's earnings could be a jomar moment of truth tomorrow stick with us. "fast money" is back after this break.
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all right, welcome back to "fast money. uber shares posting one of their best tlading days ever the stock surging more than 5% on reports that uber is planning to sell its uber eats business in india that could be valued at around $400 million but uber has notconfirmed that shares are still down more than 30% from their ipo karen, is now maybe finally the time to take a flier and buy shares of uber >> maybe up until this point this might be the best time. i like what they're doing. i like that they've shown some discipline clearly the notion of spend spend and grow and worry about valuation later, that doesn't work anymore i like discipline and try to really own the markets that you want to be in. however, i'd rather own lyft. >> yep. >> it's just a cleaner story. >> why >> it's just -- it's just, north
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america, it's just -- >> they don't have the food, the delivery. >> the logistics. >> trucking, this and with passion. >> what she did there, you're tired, i know it's monday. >> would you rather? >> she's -- >> self-would you rather >> she just self-would you rathered we call that producing from the produc produ produce chair. when you picked up on her verbal cues. >> would you rather, quickly, and i'm -- >> did you get what i just did there? i saw. >> she goes, let's ask him. >> it's not lost on me. >> you just rode right through it. >> left, pathway to profitability. go back to july when the stock was trading 63 and they told you about that pathway andcouple of months, probably not going back there. >> would you rather guy, if you
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had to buy one, you would buy lyft over uber but would you buy either of them >> that's not the point of the game. >> i'm asking the question would you buy either >> yes. >> or not buy it >> yes i would you rather not play this game yes. >> touché. >> i understand the lack of complexity of lyft >> i thought you meant in the game. >> that too. >> or the matter. >> it comes out of nowhere, evaporates but i think the profitability and growth that's needed, the amount of money these companies are spending, i like diversifying internationally i do like that with uber still trading at four times sales. maybe i would rather -- >> put your wealth management into uber. >> no. these are typical stories we get behind when profitability isn't there. these aren't stories we love but playing the game i might take the other side.
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>> this is a story that is, everybody knows, our viewers all know, your clients know, they take ubers all the time, they go, is this a peter lynchean thing, there's a difference between a good company that is u big tus and a good stock. >> but also a company that's zbot enormous heg lawtry head ta obligations. >> london they're gone. >> these are big why ishz for the name that is still structurally. >> investors charging into tesla. credit suisse saying despite its underperform rating on the stock they believe tesla is the leading car making particularly when it comes to elect rification and the battery side of business. shares jumping more than 6% and closing in on a high
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jeff mills, your take. >> to your point, what we would recommend, it's not a name we would necessarily get behind i feel like the outcome is binary it's typically not a risk reward profile where we'd pile in i would say from a trade perspective you have the stock approaching basically a two and a half year top. if you're able to see a breakout, you might be able to get behind momentum. i worry about the cash burn, management issues, all of these things put too many question marks in our name. stay away. >> is there ownership? one of the things they talked about the battery technology, more giga waut than the rest of everyone else combined is there just a, this is a heldl of a technology company, forget about the cars >> that's been the story this analyst has got $200 which is more in line of what everybody knows is my view i think what you're really
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waiting for the stock, we need one more earnings, where the profitability of the company is. that is what turned this story on its head and where it's been painful. up next, focus on fedex, the company reporting results less than 24 hours from now one options trader is betting on a big drop in fedex. after the results we're going to break down that action as we head out, take a look at the jim giving his take on your money. where we may be headed next. catch that next. theasivre on "fast money" le at ndaq market side and we're back right after this. term limits. you and i both know we need term limits, that congress shouldn't be a lifetime appointment. but members of congress, and the corporations who've bought our democracy hate term limits. too bad. i'm tom steyer and i approve this message because the only way we get universal healthcare,
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welcome back to "fast money. fed fedex shares falling today after amazon announced banning using fedex for prime shipments. the performance hasn't been up to snuff news comes a day before fedex results and earnings that could be a major moment of truth. you may recall they tanked last quarter after missing expectations in slashing
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outlook. traders believe the stock could be in for a similar fate this time around. mike cohen, san francisco, with the options actions on federal express. >> reporter: we saw about two times the average daily put volume it's implying about 6% after announced earnings that's significantly more than the company has seen over the long term. but in line maybe with the 7.5% it's seen on average over the last eight quarters. the options trade that i saw was a purchase of 950, april 165, the buyer spent just over $7 to buy that if we take a look it's not to hard too figure out what they're targeting. they're going to get protection immediately if it makes a disappointment on its earnings the down strike is essentially right to where that stock fell
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after that last quarterly disappointment, around 140 there is a little bit of bear sentiment. >> mike, let me ask you, a trade like that, do you think of that as an outright trade or maybe someone protecting the long side down to where they think the support is >> my guess is it's probably protecting a long position and the reason i think that is obviously the stock has had quite a run off of that disappointment we saw a trade down 138ish that first week after the first quarter. it's rallied since then. that would be essentially the danger zone if you will, trying to protect gains you're spending a little over 4% to get that and it's going to provide you protection, not only through this earnings but the next. >> thank you very much karen, tomorrow a day of reckoning? >> every day has been when they report earnings. i am long. i do think when they finally get it right, not if but when --
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>> why are you so confident? >> i don't know if tomorrow is that when but i think there will be a rerating. it has been in the pemt box, it deserves to be in the penalty box, but there's up side there. >> they've been blaming other people and things. it will be interesting to hear if they talk about the economy also if they guide down on capex like ups has done. i'm long like you. i think there's a lot of bad news in the stock. >> does amazon matter to fedex >> yes. >> they say they don't. >> yeah, well. >> and you know, look, there's obviously a landgrab to be able to deliver all the day every day and it's costing a ton. >> a lot of the amazon packages are coming on my street or house are coming by individuals. sort of a guy that buys a van and has now become a delivery person. >> the ups, fedexs, they make
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money on bringing large amounts of packages to one location. now lots of small ones delivered all over between earnings and the technical setup we bump right back up to the 200-moving average today. >> i say that, look at that chart, and where it dropped is when the amazon news came. you can see fedex only fell by less than 1% it's not like it collapsed. >>historically that association would have meant a lot. >> i go back to october 9th when bernstein downgraded from market shift perform from outperform and lowered their price target we said that day their timing was miserable but they could probably wind up being right i think tomorrow is the day they're right. given the way it's performed after earnings, i think the number is right in the cross hairs. >> thank you very much remember those numbers are tomorrow for more options action, be sure
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welcome back to "fast money. let's recap the big news brought to you at the top of the hour on boeing officially halting production of the troubled 737 makts jet next month. it does not plan to layoff or furlough workers in washington during that. separately boeing announcing it is holding its quarterly dividendsteady at 2.05 falling in the regular session time for final trades. tim seymour. >> one of the sec towards outperforming is health care, unh all-time high, i think you can own managed care in an election year. that's been proven unh. >> jeff. >> loww's interesting here, new
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management and the gap between low we's and home depot has narrowed. >> i'm always long but need some protection in case the china deal isn't as solid as it appears to be. >> blackstone continues to go higher, brian. >> see you back here tomorrow. "mad money" with jim and the market rally begins 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 yo "mad money" starts now hey, i'm cramer. welcome to "mad money. i'm just trying to make you some money. my job is not just to entertain you but educate and teach you so call me. the trade deal matter. i know the chinese government has a history of reneging on a


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