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tv   Fast Money  CNBC  December 8, 2022 5:00pm-6:00pm EST

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earlier rhetoric. >> we were at 48 at january 3rd of this year and i get it if you believe the recession probability is something too big to ignore, then am i going to tell clients to go back stocks at 17 or 18 times earnings it is a tough call i do think a lot of consensus said down first and thend up next year. >> that is mike santoli. that does it for us. "fast money" gypsbegins right n >> the ppi and how it will effect the mood of the market. plus the boeing bounce the giant soaring so far in the fourth quarter, up nearly 50% so can the stock keep flying higher and the tesla tumble shares continuing to lose their charge now down over 40% in just the last three months alone. where is the catalyst to stop that slide and then later on in the show, a academy casino stock that just hit the jackpot as of late that mystery chart, the name and
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the surge and what one of our traders is doing with that stock right now. i'm dominic chu on "fast money." this is live from the nasdaq market site on the the desk we have tim seymour and courtney and dan nathan and guy adami and courtney gets to stand right here next to me. this is a great show we'll start with the count down to the november producer price index report, one of the last inflation numbers before the final rate meeting of the year input costs expected to have moderated slightly last month rising 7.2% from a year ago versus 8% last month that is an improvement now one big contributor is falling energy prices as you see there. we've wholesale gasoline measured by rbob, at the same level it was a year ago. stocks rising ahead of the that report the nasdaq leading the gains up over a% aent in trading.
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the s&p 500 breaking a five day losing streak but can it continue after tomorrow's data on inflation i got a great desk here with me. >> and we have a great -- >> i envy melissa every day because she gets to hang out with you >> are you trying to get an early christmas present. >> i'm trying to say, melissa, i'm very jealous you get to hang out with these guys. tim, it is a market that saw a bounce but it was five days of losses before that is there a good sign for ppi >> was five days of losses and the semiconductor are down 1% only from that almost 30 plus percent move off the cpi intraday low and i refer to that going into tomorrow's ppi because we have a lot of relief across goods and maybe not services an the commodity, lumber prices are below where they were pre-covid and cotton up 10% and wheat prices are in
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line with where we were before we went into ukraine and so the dynamics are around some of the feed puts into inflation i think on the ppi side are better i think the number could be another catalyst for markets here we've a day to digest a very significant market move. but i -- it is not me saying it is full scale and to year end but it is telling me that i do think we have a place where markets could get sp relief out of this. inflation is much better. >> and so courtney, if you look at the way things have set up and you mentioned tim as the semiconductor trade. it has been pretty range bound and it has been a down side move but there are places where you're seeing some of the tea leaves, canary in the coal mine about whether or not this could be a continuation. this is a seasonably strong time of the market, why isn't it going higher. >> the market has been down the last five days but we've had such a run so it is normal to see a pullback but it is been so dependent on
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inflation and i think it will continue to be dependent on inflation. we're seeing lumber prices below what they were in 2020 gas prices are below what they were last year and things coming down significantly will lead into the markets and have your best foot forward. we're look at a time that bearishness is still really low which is leading to over pessimism in the markets and leads to a better year end rally. >> guy, if we look at the way things are shaping up, there are people altering their holiday shopping plans said the cnbc all american survey and the inflation is a problem and the consumer still healthych but is it enough positivity wise to get us out of the funk that we're in. >> the market holds here to me it is an over lay of the s&p 500 is an over lay of
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consumer sentiment people feel okay as long as the mark is not breaking down and to co courtney's point, it has rallied. i would say kconsumer debt is north of trillion dollars and credit card debt north of a trillion dollars which is no good and i never dwe the want to spend, should they be spending and if the market were to take another leg lower on a hotter than expected ppi, then i think people say wait a minute, things aren't as good sp as i thought. >> we've seen a big rotation, look at how much the s&p outperformed the nasdaq since mid-october and it is substantial. and you think about this mike wilson at morgan stanley thinks that value stocks, had' rally, he thought we would see a 15% rally and now he thinks that value is a pocket of risk.
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and that is energies and financials and industrials and so we've seen it crowding in that if you think that we're going to have some sort of recessionary environment, and maybinge that what some of the readings about industrial commodities are saying to us then you have to be careful here because the rotations have been fairly aggressive. it is one of the reasons that we havethe bear market rallies. some between 15% and nearly 20%. so to me i think the higher we go, i doent think we'll go much higher, but the lower we go in january and february. >> so one of things that we've been keying on and you could debate whether or not the yield curve is as much of a recession indicator as it has been in the past but just in the last two days we saw a yield curve inversion, short-term rates higher than long-term rates, two 10 spreads of minus 83 basis points going back to 1981 in the volker days and that was bad back then we're showing you the chart right now.
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it is just at about 83 basis points if you look at the way that interest rates are reacting right now, it certainly doesn't show that things are very robust in the market place right now. so if you look at that and that is one of the reason the bank stocks have been performing poorly so just look at bank of america and jp morgan. courtney, are the banks stocks a leading indicator of what is going to happen with the economy? >> i think you are seeing a pretty severe recession when you look at banks specifically but i think year seeing '08 and '09, the banks were the issue. and the balance sheets are so much stronger now and they're going to benefit from interest rates being higher next year so i think it is being oversold in your banks but there is definitely a fear of a recession and it is all going to come down to is inflation coming down or is the fed going to lower interest rates. at this point they're expecting 50 basis points next month but if they keep with the low rates, that is what rthe market
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are worried about. >> tim, those traders and investors who decided to buy when the ten-year u.s. treasury yield was at 4.25 or 4.3%. they're looking good right now. >> they're fired up. i think there is a limit an how low we could go on the ten-year. and i'm not bullish going into next year either i think the s&p earnings will find themselves at downgrades south of 200 and we're starting to get the numbers in from the street and that tells you where the s&p has to go. everything we got out of the third quarter, especially from discretionary and we heard from lew lulu and things were better in the third quarter. i don't think things deteriorate. so far this is a fed and an interest rate dynamic in terms of the market. we haven't gone ep into earnings revisions and into a credit cycle or a liquidity cycle
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so i think it is the market we have and i think positioning is sill very light i don't think we'll go crazy in the year end i think the inflation story is something that you could build upon >> so let's bring another voice into this. because two years after he first flagged inflation big generational comeback, market forecaster jim bianco sees price relief ahead but he warns that wall street may still see a world of hurt, a world of pain next year. so, jim joins us now he runs bianco research. a guy that a lot of folks see and listen to on wall street thank you very much for taking the time to join us here on "fast money. i'll open end question to you to start. this inflation narrative, is it over >> it depends on what you mean by over. has inflation peaked yes. it peaked in the spring and now it is come down. and everybody will say that is it and buy but the real question is how far down is it going to go and i'm afraid that it might
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bottom out at around 4%. and the fed thinks neutral on interest rates is half a% above the inflation inflation rate that means we've only just got back to neutral and jay powell wants to get to restrictive. if it goes to 2%, then we are restrictive and there could be a pivot. so, yes, it is peaked, but that is not the real question the real question is how much further down does it have to go. >> so, jim, with that in mind, if it is a matter of how high it stays relative to where it was, right, a year or two or three or four years ago, if it remains elevated at those levels is there a way out? what needs to help elsewhere in the economy to offset the effect of inflation staying at relatively high levels that we've seen over the course of the last say five years? >> well, what we're arguing here is that inflation -- there has been some kind of a secular shift.
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the era of 2% inflation is over cheap is behind us and so we'll have to restructure the economy to return to cheap labor and goods and energy and again restructuring the economy is more of a value cyclical kind of play but it requires a lot of money and time to do it. you are don't restructure the economy in a short period of time look at the supply chain we've been talking about the supply chain being fixed and we're nearly three years after the pandemic hit and it is still not all the way back and that came back at lightning speed. so to restructure the economy is going to take even longer. >> jim, this is courtney here. i just had a question where it sounds like you see inflation is coming down but you also noted that see ppi coming in hotter than expected tomorrow and i'm curious why you see that and what you see as the market reaction to that. >> the market is fixated on gas
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prices that is what it seems to be focused on in terms of how it forecast ppi and cpi and gas prices have come down. and keep in mind, the last 20 months in inflation numbers, ome four of them has been below expectations so even if you just did no analysis and just said it is going to be above expectations, you've been right 75% of the time for the last two years so there is some bias in the market to look at the data and shade it lower and hope lower and then you add in falling gas price and i think there might be an upside beat for tomorrow and that is one guess and one number. >> all right jim bianco, thank you very much for the thoughts there for the guy that originally kind of called the kickoff to this inflation narrative. we appreciate it we'll see you soon, jim. >> thank you. let's trade this here. if you take a look at this, guy, jim made a point that he thinks that the inflation read for tomorrow, business level inflation comes in slightly hotter than expected
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that eventually does flow through to consumer prices but how worried should we be. >> if it is hotter than expected given what we traded up to, we traded right to the down trend line that we put in november of last year, right up to the 200-day moving average about a 14% rally and a hotter number will take us back to 3800 so if that is the only lens you want to look through, you should be worried if it comes in hotter tim thinks it will be softer we'll see. i'll say this to jim's point, we might get to 4%. i don't see that in the near future it is not down to 2% for quite sometime and that is the mandate and it ain't going to happen. >> what do you think, dan? >> we're going to obsess over every one of the numbers and the first friday of every month we'll have this jobs number and pray for it to actually go up, isn't that kind of absurd because that is the thing that might relieve the market and might cause to take their foot off the pedal. if you were -- everybody wants oil to go lower and 2 just
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clclos at 52-day average. and that is going reignite and it doesn't feel like the sort of indicators that would you be hoping for and the reaction to the news that you might expect is happening and so, again, i'll just say this, this is the stock market down 17% or whatever the s&p is down right now, it just doesn't encapsulate what we've been through. go back to 2008, there was one year where the stock market was down and the middle of the throes of this financial crisis down nearly 40% or you've telling me of all the fiscal and monetary and the supply chains and the jgeopolitical and so whatever we do between here and the end of the year, there is a reckoning at some point. i doent mean a crash but there is not enough fear in the market
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the vix at 22 right here, given tha everything that we know. >> if the vix was at 28 or 29 i think you have room for a rally. and remember when we were at the vix, i keep bringing up the cpi because it was an extraordinary day. we had a hot cpi number and that was the time when we actually priced in maybe peak inflation and as jim talked about, maybe that is where we are i think there are opportunities in this market and that is really where we are. we're going to have these ranges and i agree with these guys. it is really tough to see where we could get much higher but the believe that the core input here, if you put at the pressure on the fed, it is lighting up. we have cpi on tuesday which is a much more important number i think we have to get through those events and then we have some room. >> so now turn to latest on the ftc, suing microsoft over the deal with activision now those stocks not seeing as big avenue reaction as you might expect with a large regulatory hurdle our steveco vac as more on the
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story and perhaps the reason why those stocks aren't moving as much on the ftc looking to maybe sue to block this deal. >> yeah, don, this is a really a thick and difficult story to unpack here. so let's do our best ftc is suing for the deal but the reason behind the lawsuit, it lays out a history of microsoft gaming acquisitions and using those to put exclusive titles on the platform that is $7.5 billion acquisition of game studios zenny max. titles from that studio are exclusive to microsoft platforms and now the fear from the ftc is the same will happen if they are allowed to buy activision. but the issue here is call of duty, rivals like sony have already complained microsoft will take it away from the rivals too but microsoft doesn't answer for that they've put call of duty on rival platforms for ten years and even said thewilling to mak
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that enforceable by the courts yesterday nintendo agreed to the 10 year call of duty offer and meanwhile bobby kodak firing back at a letter to employees saying, quote, we believe these arguments will win despite a regulatory environment focused on ideology and misconceptions about the tech industry. and microsoft president brad smith making it clear that the company is going to fight this in court saying in a statement, to, quote, give peace a chance and offering concessions to the ftc. the big questions now, what additional concessions did microsoft float by the ftc besides the ten-year call of duty deal. would be they willing to extend that or indefinitely microsoft is ready for war, don. >> steve, thank you very much for that microsoft is ready for war said steve kovak. there might be a reason why microsoft is ready for war
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because the track record from the federal trade commission as of late has not been good. they have not succeeded that purchase and i'll open this up to guy and why the muted reaction. >> the biggest gamer in the desk. >> i follow him on twitch. >> you say that in jest, i'm on the twitch because if the fates of microsoft rely mon this activision, then we're all in a bad -- to me this is a rounding error in my opinion for microsoft. so i don't think that is why you're seeing a stock reaction get the deal, not get the deal don't think it is moving the needle but the stock is down 30% from its all-time high this time last year and people are starting to care about valuation and at 23 times-ish, microsoft is still an expensive stock. >> dan, what do you think? >> is this a deal that -- >> let's talk about this. >> we started this year off and
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microsoft made this blockbuster $70 billion -- and it is actually a lot more than around. if you think about the net cash position, this is a big deal and so think about what the nasdaq is down 28%. and they bought this company or made a deal to buy this company for that price in january. i would think, when i saw that headline, maybe they wanted an out. maybe this is a good deal for them but if you look at some of the competitors and look at ea, which is a smaller market cap company, they are down. >> i just don't think this is a deal that the ftc is going after. their distant to nintendo and playstation and they need to have other games on their plan form and that is why they're making this acquisition. they want this cloud service where people have to subscribe so it is not a reason to buy or sell microsoft it is a reason to explain the options market with atv i which i don't think you do anything. >> a lot of risk management
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going on coming up in the show, we're all over the after hours action in lululemon shares and rh. lulu down 7% right now the latest results are on tap for you guys we'll bring you the details next. and it is wheels up for boeing shares gaining altitude. yes, i wasent there. the plane particulars that had them so bullish when "fast money" returns listen, i'm just doing what i'm told we're back in two. we're back in two. >> you do it well. or... [whistles] we can make a change. [clap] we can make work, work for our communities. create more equal opportunities. p] it's time for business to show its true worth. because it's not goodbye, world. it's hello, team earth. [clap]
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welcome back to "fast money. we have an earnings alert on a pair of retail stocks. lululemon shares are tumbling down 6% right now. earnings per share coming in 3 cents higher than expected revenues hitting $1.86 billion also beating estimates but the current quarter is the all important holiday shopping season and melissa has been sifting through both reports for lulu and for hrh. what is standing out. >> it was a beat on the top and bottom line and the same store
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sales were up 22%. the ceo called out black friday as strongest in its history in terms both traffic and in sales. so it is surprising then that the company was on the weaker than expected end of fourth quarter in terms of the forecast and that is really where we're seeing the stock movement. and it begs the question of whether the company is being more conservative or perhaps is it more nerveous going into january which is the last month of the quarter back to you. >> thank you for the update. let's trade it guys. courtney, a hot name during the pandemic and kind of lost a little bit of steam. i don't know how many guys own those pants. >> i was in lulu below the deck last night. >> joe kernen wears the pants but for a man his age, that is what they do i'm the undergarments guy. >> are you a buyer or seller, given what you you've seen from lulu. >> i would buy on smt weakness and this is all i wear when i'm
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not on set but i do think when you look at them, they're a company that has a really loyal customers and they also have pricing power when you look at their balance sheet, they have almost $500 million in cash and no debt and you want pricing power and strong cash flow i would say the knock is they have expensive however not compared to them ss selves it is a look. >> restoration hardware, hr, formerly known as restoration hardware, beating estimates. after the bell shares of the company staying in the green for now. right now on the news we have more details from kate rooney who has that story >>dom, that is right, rh with a comfortable beat here for the third quarter on revenue and eps. the call just kicking off and despite that, gary freedman saying the environment for the luxury retailer will continue to be challenging due to the ongoing housing market struggles
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and kicked off the call saying we, quote, expect our business trend will continue to deteriorate as a result of accelerating and due to the psyching of record covid driven sales and backlog reductions and despite that, saw that strong q3 and it helped raise the low end of the revenue guidance and raised the full year operating margin guidance in the third quarter of about 20%, 20.8% and announcing a couple of acquisitions dimitri and co, and a funernitu company called jup. >> thank you very much tim seymour, i'm look to you for this one rh they speak of the housing weakness being a head wind but when i think of rh, aka
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restoration hardware, i think high end i don't think it should be impacted by the housing weakness do you believe it. >> there is no question that there is a pull forward and they tightened oup the bottom end butting it still down 3.5 to 4.5 next year. the valuation is not demanding and you heard margin is holding the line and we've heard that they are going to fight against heavy promotional activities so i started buying some rh around 250 and think you could own it here. the thesis that people will continue to stay in nir homes and fix them up and rh is a very different clientele than pottery barn and williams sonoma here is what is coming up next. >> announcer: boeing, boeing, gone analysts take off. should you buy your ticket or leave this one on the tarmac. plus tesla turmoil that stock trading near two-year
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lows but is there any charge left in this trade or should you drive away you're watching "fast money" live from the nasdaq market site in times square. we're back right after this. (vo) this is more than just glass, walls, doors and carpeted floor.
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i'm for people 45+ at average risk for colon cancer, not high risk. false positive and negative results may occur. ask your provider if cologuard is right for you. welcome back to the big show "fast money. analysts saying boeing could be first class. in a trade heading into the new year wells fargo, citigroup and cohen out on the plane maker, increasing the stock to $218 citi to $222 boeing trading around 180. up nearly 40% so far this quarter. now just moments ago united airlines said it will make a
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historic announcement on a boeing dreamliner order coming up on tuesday. so courtney, this was something that you brought up on our midday call today. flagging the boeing trade. it is been a momentum giant for the dow especially what do you think? >> i actually would look at this as an opportunity here and i think they've really turned things around. they have free cash flow of $1.4 billion and that is a large loss from last year and this issa due -- it is due on my and people want to do things and they need to increase their fleet so i would look at this as an opportunity. >> dan, for boeing, this a stock that really dragged things down for quite sometime but in the month of november, i think the stat was the dow was up around 1,000 points roughly here or there. about a quarter of it was just boeing shares alone. it has been a beast. is it still worth staying in
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right now? >> i know tim has been a shareholder for a long time and you've identified what the turn of the story should be and again this outperformance has come from broad market outperformance but the value and industrials and waiting for the turn, if 2023 is going to be the sort of year that maybe airlines and it is interesting that united is book ending that comment today about next week with what they just said yesterday about business fairs and that sort of thing so to me, they're not booking the revenue any time soon. i think 2023 could still be a difficult year for an industrial like boeing. and then you have the rally that you just talked about off the lows, how much of that news is in the stock. >> guy >> yes. >> i mentioned the united airlines anticipated news about the dreamliner is the dreamliner important to you more so or less so than say the 737 max? >> you think about this a lot. >> i go to bed thinking about this i haven't thought about it at
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all. i think it is important to boeing continues to get the orders and that they zbroe into the valuation that is pretty rich here. they have traded athe 45 times and you need that number to be $10 to justify the stock price now if you tell me that earnings will continue to grow at this pace, the stock makes sense. and probably up to 191 or so it has room that is where we basically plateaued in march so i think do there is room and i also think it is expensive. >> 787 is where they make the money. i think the 737 certification is not a big dieeal. when it was a $350 stock, it was $25 a share in free cash flow. cohen think 17 to 20, i think you're getting there airlines are recovering, they have to buy planes. >> that is the trade on boeing coming up, a hot take on tesla shares trading near two-year lows but our next guest said he's still positive on the ev giant. those details coming up next.
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welcome back to "fast money. let's get another check on markets. stocks closing in the green as investors await the ppi inflation data dow jumping more than 180 and the s&p climbing three quarters of a percent and nasdaq leading the gabes climbing more than 1%. oil finishing lower for the day. crude and brent hitting the lowest levels in near ly a year. and boradcom jumping after estimates for quarter and resuming the stock buyback and upping the dividend by 12% the shares up 3.5% and then docu sign surging after earnings and revenues beat expectations the company saying sales could come in above expectations for the current quarter. doca sign shares up 8% right
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now. now tesla is hitting the brakes as of late shares falling that its shanghai plant would cut shifts and delay hiring as well the stock recently clawing back some losses but over the last three months it is down 40%. for more, laetz bring in luke ventures gene munster, a man we've turned to for tack on tesla. we'll start off with a broader question, how tesla now fallen by enough to make it attractive? >> yes and i think it has it is -- it is my view that this is an opportunity i think for the long haul. and i would kind of paint this -- frame the picture of what is happened here is it is been a vortex around reports today from bloomberg about production cuts in china and how much elon's time is being spent with twitter and that is being a distraction. and i think what is being i think missed here is what some
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of the facts are and this comes to the opportunity and i'll start with some of the near term and i am reluctant to use the word, because it is often disputed, but they're discounting in china and the u.s. and in china tesla deliveries for the month of october, they reported this passenger car association reports these numbers, up 32%. it was up 90% the numbers that came out today people looked past it because the other broader headlines with the bloomberg story. but that compares to the broader numbers in china being down 6% for the month of november. so tesla is gaining shares so i think the concerns that we've seen more recently, i think are largely overblown. i think that the numbers will beo -- will be okay. and when you say over the
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long-term, there is a certain amount of patient some investors will for-v for this to play out and it doesn't seem as though there is as much rumble from tesla base how much time do you think investors will give them for this thesis of -- of market superiority to play out? >> well you probably lose a quarter of a -- if they don't deliver on what will be the expectations for the december quarter, because of course they had a slight miss in september and they talked about some of the logistics that pushed those deliveries into december so it is a little bit of a show me story and to answer your question, if i'm wrong and deliveries do show some softness, i think that you're going to see an exodus from at least part of this base. i think you will see people continue to believe in this for the long-term. because there is just other forces in play like what is going on with china and
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production but this would be a pretty big negative if they ended up missing and i don't think it will happen. and maybe said a different way is what is it going to take to regain some confidence i think december delivery number that shows that the total deliveries for the year at 1.4 million or greater, that is the bogey, i think will relieve people considerably and be a positive calculus for the stock. >> and so you're talking about fundaments for the company of tesla and the stock is weak. down 20% or so over the last month and change and it is really underperforming many of the auto peers here. but there is something else going on is it also, is this shareholders voting on the job that they think elon musk is doing, becau because he's been preoccupied with the twitter and the story that i thought was that the bankers that gave him the $13 billion nearly in debt to buy twitter, are suggesting that
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maybe they're going to kind of reform late that with some margin loans against the tesla stock and i feel like again if he were to miss q4, the fundamentals get worse and if there is a global recession and the stock goes lower, doesn't that create a really difficult scenario if there are margin calls for tesla shareholders. >> absolutely and that is is the negative side and i would kind of come back to if the numbers are good, the delivery numbers are good, for the december quarter, everything that we just talked about there probably doesn't matter as much and i think it really comes down to the view that elon is being distracted i don't know if the numbers have been cut i would -- tesla said that it was they refer to it as fake news today who knows. but to answer your question, is that ultimately all of that is anticipation the substance comes down to are they going to deliver the cars
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and if they do that, the stock goes up and if they don't, the stock goes down. >> gene, i'm frustrated by looking way far out in terms of tesla and a valuation based upon growth that will be there. and i'm not being critical of you on that. i would like though for you to focus on the current macro around the auto sector i'm not that worried about china production i think some of these in china, auto demand is coming down globally i worry about the cyclicality of a car company. i think it is a car company. talk about that. >> well, i see it different. i think that replacing a gas for an electric motor does change the equation and i think what tesla is shown is that by bringing together the software is it does create more value and that is why they've done well in the car market, the ev market. so i think the margins that they've delivered have been more tech like, are not true tech but better than traditional car companies and that is some
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evidence that it is more than just a car company and agree with you, i've been guilty of looking out five years and talking about where tesla is five years and if i may, i think in two years it will prove to be some upside here. >> gene munster on the tesla trade. thank you very much. we appreciate it. >> guy, i'll throw it to you you heard the questions and the commentary, is tesla a stock that you want to own right now. >> no. i don't think so it is not trading well it is doing if you're bearish or short the name the move down to 167 and move up to 2 00 and failed there and tsunamiing the stock is between 145 and 150 and if the tape rolls over, i think that is where tesla is going, sharing are at 173 and change right now. m couldiming up, are you feeg lucky. tim seymour has been making some moves in the casino space. and later on, the big bank
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blues. bank of america seeing big red and what is behindhe mes tov and how to trade it. all of that when "fast money" all of that when "fast money" returns after this or... [whistles] we can make a change. [clap] we can make work, work for our communities. create more equal opportunities. [clap] it's time for business to show its true worth. because it's not goodbye, world. it's hello, team earth. [clap]
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money. melco on the move, up over 11% as authorities in hong kong announce a 10 point plan to ease covid restrictions shares are up 80% in the last month alone. tim seymour. you've been making moves here. what are you doing with melco? >> i've been adding to krcasino and the critical for lvs and wynn, and i have been long for a long time and i've been waiting for a couple of things first was on the 25th, the renewal of macau gaming licenses was an important moment. and the second is the whole str covid dynamic. i know they've held the stocks back but that is been an opportunity to bhuy now with that we've seen major upgrades in the space. what you're supposed to be doing is starting to sell upside calls in the out to the first quarter. i think you'll see a pullback. you've had over 100% move in
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melco. vegas sands, i think you have more room to run where the ebidta went from high teens to basically single-digits, mid single-digits. and think even at 11 or 12 times lvs astill attractive. >> last word, courtney. >> it is a china reopening trade which i think has so many false starts but i think you're starting to see that is really becoming viable but it is not yet priced into a lot of companies. >> coming up, is it time to fade the financials right now options traders betting big against one big bank 'lbrg u wel inyothe action coming up next on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve,
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welcome back to "fast money. bank of america shares falling again today. the stock is now down more than 10% since monday alone on pace for the worst week since june of 2020 it is now down six daveys in a row. dan, you flagged this stock. >> i thought you were going to these guys >> no, i'm going to you. >> it is down 15% on the month so when you think about this, if you look at that chart, it's gone down in a straight line here and i just think that
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moynahan was speaking earlier in the week at the conference and saying that maybe falling in line with the other money center banks like jamie dimon has been saying about consumer and loan growth and all of that sort of stuff. so to me, i keep an eye on the banks. because it looked like two weeks ago they'red ready to break ou and they're not. i think you want to check them out. >> so courtney, is the action in the money center banks like b of a, jp morgan, what you think of the financial sector or is the regional banks hit harder in some cases >> i think what will happen. the regional banks will hit harder but the bank of america does look interesting because you're getting the price on the idea that a recession is going to happen right now but they also are a lot if we do start to see the yield -- the yield curve steepening, they're going to benefit compared to
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other banks. so it will be a beneficiary. >> is this a financials trade that you like, guy >> what do you think i'm the negative one bank of america book value is $29 and change and it should trade at book value. it is still expensive in terms of tangible books. it is reasonable to submit if citi traded at the premium and bank of america is in the middle >> banks have outperformed the market for last six to eight weeks and that makes sense that you sell first and ask questions later in banks and think we're going through one of those periods. but the dividend and the valuations, i think you have to stay holding some of the banks the money center and it would be bank of america and jp morgan. >> and the balance sheets are stronger than they have been over the last four to five years. the options market signaling more pain for bank of america. mike khouw joins us to break down the action.
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what caught your eye. >> we were looking at bank of america. that is the tenth busiest amongst financials today some of the action that i was take egg a look at was the january 32 puts, i saw a block of those trade for $1.34 and that were a part of a series of blocks 6,000 of them traded for over $1.30 a contract and i think the buyer is betting on or hedging against a move down to the october lows probably between now and january expiration that is about six weeks away. >> that is mike khouw with the "options action. i just want to put out one quick word here and if we look at some of the these banks, the jp morgan and the b of a are the ones that we talk about but often times the opportunities are elsewhere in some of the banks that i mentioned with courtney with the regionals. is there a compelling that are not jp morgan or b of a or citi. >> i think it is that much more exposed.
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if we get into buy now and pay later, i think those go to zero. i think the place to be are the money center bank. >> u.s. bank corp is one of the best run banks so if you think valuation is a concern, u.s. bank corp is the place you could probably find some safety. >> and buy the way, don't miss bank of america ceo bryan moynihan on "closing bell" tomorrow, at 3:00 p.m. eastern time right here on cnbc. ape must-watch interview there and be sure to tune in tomorrow, friday at 5:30 p.m. eastern time stick around your final trades are coming up next
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and borrow up to $100k. sofi. get your money right. welcome back it is time for final trades. >> tim. >> emerging markets. eem. i think below the 200 day and we talk about the gamers in china >> courtney? >> we talked about this earlier but i do like boeing think they have an attractive free cash flow i think it is worth a play. >> dan >> on that jets, the etf att attracts airlines. i have a bear position. >> courtney is a padre fan they're spending a lot of money.
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are you happy or not binary. >> everybody loves the padres. >> lockheed martin back to you, dom. >> thanks, guys for watching "fast money" and for having me here tonight "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make a little money my job is not just to entertain but to educate, teach, put in context. call me at 1-800-743-cnbc or tweet yes @jimcramer all right.


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