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tv   Fast Money  CNBC  October 26, 2015 5:00pm-6:01pm EDT

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merchandise volumes. >> and bypassing short-term questions and focusing on the long-term and that is not what they want to hear. >> and drones perhaps flying in the parking lot in the near future. thanks. that does it for us on "closing bell." "fast money" begins right now. all right. "fast money" does start right now. live from the nasdaq market site we're overlooking time square, i'm michelle in today for melissa lee. our traders are tim, pete najarian, karen finerman and guy adami. >> hi, michelle. >> nice to have you. >> nasdaq is nearing a record but don't worry if you missed the rally, we have the three technology names you can still buy to bring you serious profit. plus the bills taking on the jaguars yesterday from london. and it marked the first time a nfl game was live screened globally but did yahoo fumble
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the ball when you see the numbers. but first we start with the biggest stock in the world falling hard. apple loosing more than 3% and the worst day in nearly two months. key supplies like avaggo and nxpi also falling hard. is this a sign apple could have trouble tomorrow when it reports. guy, let's start with you. >> i don't think so. i think people are taking money off the table ahead of earnings as they've done the last four or five quarters into apple. and i think people taper down their expectations an trying to get ahead of what they perceive to be a quarter that is good but not good enough. have the selloff and get back in. i think it is going to be buy. >> what about the dialogue semiconductor trade in frankfurt. they missed revenues, that is one of the catalysts today. >> they make conversion chips. apple is 70% of the sales. and they are coming up with numbers that tell you apple may not be as strong as expected. very different than what you hear from the street.
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ubs up to 52.5 on the revenue side. and where there is still opportunities and we'll get to that part of the show, but i think apple going into the numbers, i think the bar is reasonably in line. i don't think -- i think managed expectations is what it is about with this stock. >> it is not an overread. you have to wonder, is this a company -- we know how much they depend on apple. but has apple made a shift. we don't know until we hear the earnings from apple to see how well they are doing. but i would say this, michelle, the most important thing when you go to apple, everybody is looking to china, where the growth is coming. how did nike did in china? they did well. up 30%. so when you look at that, you start to wonder is there a connection there. are they doing better in china as tim cook has reported time and again or are they not. >> but they have incredibly tough comps.
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35% sales growth at one point last year. how do you beat that. at some point we're talking about maybe single-digit growth. it is still growth off of huge numbers could there be a year-over-year decline in sales soon. >> there could. but they face the same issue every quarter. >> that is true. >> and for every year, probably. and the stock, i agree with tim, it is not in a froth going into earnings. so i think the bar is sat a reasonable place. and i tried not to read the tea leaves. the tea leaves that we can read with the apple earnings tomorrow. that is the clearest picture. all of the other stuff is noise and you can get a bad read. i think it is not unfairly priced. >> i think as far as the gross margin goes, people are reaching out for the extra storage. so they are able to hold on to the gross margin. this is a little bit different about this part of the refresh cycle. because of the way people are working on these phones and what they need in terms of storage. so people are worried about guys falling in places like china because people couldn't afford
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the phone. that is not what is happening. and i think that is bullish. >> and apple is important to the nasdaq. let's talk about it. because it is hovering below the 52-week high. might be there if not for apple. but back in august it was a very different story. remember this -- take a licken. >> some of the high fliers, netflix, facebook, and the like, celgene and biotech, are getting annihilated. >> the dow is down 1,000 points. >> since that time, the nasdaq has surged 10%. but if you missed the rally, our next guest said there are three stocks worth buying right now. harry wald of oppenheimer is here breaking it down on the smart board. go >> good to be here. the area of the market that we think continues to do well over the next few months and years is the big cap both. and the best barometer is none other than the nasdaq 100.
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and what really tells the story of the nasdaq is taking a step back and looking at the long-term picture, relative to the s&p 500. and we can see the nasdaq 100, in this very long secular turn-around. and we think over time, over the coming years, this relative trend is going to continue to slowly work its way back to its 2000 relative peak. you notice this climbed higher over the past few years, very steady, very healthy. not overextended. actually closer to the lower end of the relative trench head. we think this argues for further outperformance. here are three picks. first one, price line group. in a strong internet catalogue name, here is a company breaking out of a year and a half long base. just above levels from march 2014. there is the break-out today. rising 200-day moving average, higher lows and reversal, get long and stay long and we think
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this stock is going higher. next one, akamai group, within this strong software and service industry, this is the bright spot of the tech sector. here is another one we think ready to break to new highs. it has been in this narrowing pattern like a coil and all of the corrective behavior is aoccurring above a rising 200 day moving average and we think this will see a breakout. new highs. final one, costco. consumer staples and we think it could do well in this market. breaking higher. in a very difficult tape. here is a stock that is maintaining its uptrend over the last few years. the s&p 500 hasn't been able to do that. and that breakout point is your level of resistance and that is the catalyst we think helps get the stock higher. >> thanks for making the technical case there, ari. pete, what do you think about price line?
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>> we look at the stock and it has made a unbelievable move. it is up a couple hundred points. it is up over $1,400. it is like microsoft. trading close to 47, $48 and here we are at $49. i think we can wait and you have to be patient with the names. if you want in before the moves, you want them to pull back. once you get above the moving averages the way some of these have, i think you have to be patient and wait on a pullback. >> and karen, costco. >> i love the company. at this price for a mature company, it is hard to get excited. i think -- >> he was making the momentum case on these. >> right. >> and staples especially. >> and i think they should hit some of what walmart is getting hit with. so i can't get on board. but great company though. >> this week we had euphoria around the ecb and the expectations of the boj and look
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at where they are trading at, you are at a relative strength indicator. so momentum, as you mentioned, michelle, since july of 2014 in the semis and if you look at consumer discretionary and tech. this is where the market is gravitating to. i think the breath is getting extreme now after this earnings period it wasn't that good except tor the big names. i would be cautious. i love the name price line, considering how much they dominate globally, i think you can pay a premium mobile. and i don't think you need to buy any of this tough. >> valeant coming out swinging in defense of its relationship with specialty pharmacies but did it do enough to turn the tide with investors on what is described as a chaotic call this morning. and yahoo first live stream of an nfl game officially in the books. so did the beaten down technology name score a
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touchdown or fumble the big event? we're going to show you the surprising numbers. and then later, one major commodity in the midst of a massive crash. we'll tell you what it is and how you can make money. much more "fast money" after this. the only way to get better is to challenge yourself,
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welcome back. qualcomm shares are bouncing around in after hours after reporting earnings. seema mody is at headquarters with the story. >> hey, michelle. broad com reporting third quarter earnings and revenue that beat analyst expectations. no conference call this time given the bid to buy the company. the deal is expected to close in early 2016 and if it does, it would be the biggest merger ever in the tech sector. broad com one of the leaders in the semi space up 18% year-to-date. michelle. >> thank you, seema. moving on. a tough day for home builders. kicking off on the top trades. entire sector hit after new home sales fall sharply in september. can you see how slow the teleprompter is going. >> after two months of gains. toll, kb, pulte and dr horton.
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>> we had bill pulte on the show this afternoon and he was talking about the derivative plays off the home builders and i agree. i look at home depot pushing up against the 52 week highs and lowe's closer toward the 52 week highs. i think you get much more bang for your buck. it is a -- much easier to read through that versus the homes itself. >> they don't go hand in hand because if you are remodeling -- >> because the remodeling is going better than the housing. and you get the selloff and you look at lowe's and home depot, moving to the upside as the home builders are moving down. >> there is no disputing in the lows, but again bang for the buck. home depot trading at 25 times earnings and this has me concerned. i think durables will show that x aircraft, the american consumer has something to spend.
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and this is the place where value has not been working and that includes financials. any look at fundamentals and inventory and positioned relative to the history i think pulte and leonard -- >> and the auto industry right now, you look at ford and gm and the valuations and the cash on the sheets. >> you should be compelling. >> this is a screaming buy and it is not. the better buy is something off of that, going into auto zone and those kind of names, those are giving the performance, the cars themselves, the auto builders themselves, not. >> next up, fedex, finishing the day lower despiting they expect holiday shipments to increase more than 12%. 317 million shipment this is holiday season. that would be a record high. what is not to like about that, guy? >> it is interesting that the stock sold off. that is great news. so what is the read through. it could come in the form of ups which reports tomorrow. and here is a stock, if you look at it, held 95 three different
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times over the year. 18 times forward earnings to me is not crazy expensive and i think people are underestimating the power of ups. they could surprise the upside and we have a chance to test the all-time high of 115. >> so you think they are making a market share. >> operationally in the last couple of quarters, business is running better and margins are improving. if you know something. i don't know if you knew this. >> i doubt it. >> you talked about it. >> it is like you have inside information. >> that is you? you wear shorts? >> the whole thing. >> summertime in new york. >> were you proud? >> damn straight. >> you could have been on the men of the ups calendar. >> yeah. deliveries. >> next up, the stock of the day, valeant shares, pharmaceutical giant under pressure. the drug maker hosting a call, and defending itself against
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allegations made by citron research last week. did they do enough. meg tirrell is ais the biotech reporter. what do you think. >> it was a mixed bag today. mike pearson starting off the call saying the valeant portrayed in the media is not the company he recognizes but he did take some accountability admitting they were slow to respond to investors' questions. taking aim at short seller citron and andrew left, their report last week sparked so much panic in valeant stock. >> his moat reagan is the same -- motivation is someone who runs into a theater and yelled fire. he is trying to drive down the price of our stock so he can make a money for a short selling. >> and pearson is saying that the company an the outside counsel is asking the s.e.c. to investigate citron and the founder. and they reity mated the support for mike pearson and confirmed
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the appropriateness for the pharmacy and because of the allegations about the way philli dor does do his business, it formed an ad hoc committee of directors to look into the stock. it closed down 5% but did, after the call, reach into the green just for a couple of minutes and then back down into the red as there are overhangs still on the stock. including this review of philli dor and will it unwind it, which some investors say it should do. next, it still has multiple government inquiries and looking into patient access. so clearly a lot of uncertainty about valeant. >> thank you meg tirrell. let's talk about trading it. tim, you bought it this morning. >> i did after it traded down. the stock was down almost 16% in
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the market and then we got to a place where they started to explain the sells. here are the things that are most compelling on the buy side. in terms of where these guys are with the s.e.c. and the way it is being manipulated and i thought if they are guilty, they are calling the cops and the s.e.c. in to push against citron. if they have done something wrong the cops will be there any way. and ultimately when i hear them backtracking on the m&a and r&d strategy, and before citron's report came out, people are disappointing this company is not growing in the same way which people feel they have to do. i think they tried to say that some of that might have been misinterpreted. i look at the stock and i say it is very, very cheap. if this is the enron of biotech as the citron report alleged, then there is no protecting it. so i have some protection. and for a short-term trade and i don't believe it is going back
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to 180 but i believe the report is something people are trading only. the company on its own merits looks very interesting. >> it doesn't bother you that we have one strategy before and now we're going to shift that strategy, no we're going back to the original strategy in terms of being aggressive and buying companies and pricing. >> i'm not sure they ever shifted. i think they communicated that the old strategy may not be working and looking at something new and they tried to clarify those points today. that was one of the things that was interesting to me. >> i thought they did really shift. i thought last week's call they talked about some sort of spinoff, something for the neurological business and they didn't talk about that today. >> but they are not going to spinoff -- >> right. i think to do m&a in this environment when they are under the cloud they are under, you can't do a stock deal, right. that would be a very difficult thing for a buyer -- for a seller. >> because your currency is so uncertain. >> they have a lot of debt. it is trading down. they could do a small deal i
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suppose with cash but that strategy is then in question. so you have the question of fraud, and let's say there is absolutely none. i don't know. but say there is none. you do have a business model that is changing -- >> weekly. >> weekly. and then you have the pricing game that maybe everybody does. not just them. maybe that is over. >> again -- >> what are the earnings. >> to me the strategy is changing weekly because in the last week, all of these things have happened. we don't know what the strategy is. but the assumption that they will have to shift the business model, if that is where you sit today, maybe that is a challenge. to me, because of the citron report and because of the stock moving $60 in three sessions, people feel they cannot do m&a and spinoff the neurology unit right now it. would be insane. after they can approve the accounting is fine and filly dor is a company and there is nothing wrong with that as we
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know and to own the stock with protection to me means i think you have upside to a market that has overreacted. >> and what you brought up, karen, important. drug prices are sure to be a hot button topic this wednesday when cnbc hosts the next gop presidential debate. live from boulder, colorado, this wednesday, right here on cnbc. still ahead, the mobile payments war is heating up. now jp morgan chase announce it is stepping into the playing field. we'll hear from a top executive on whether chase pay could become a game-changer in the space. you're watching "fast money" on cnbc. we're first in business worldwide. here is what else is coming up on "fast money." >> i'm going to let you in on a little secret. >> how would you like to know how many iphones apple sold this quarter. we have a secret indicators that would shed some light. we'll reveal. and one commodity is crashing. it is not oil or gasoline but it
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could save you money this winter. well tell you what it is. all of that and morn when "fast money" returns. price of 10, so that's 50% more data. oh, good, because he goes through data like crazy. oh! there's my boy... he goes through data like crazy? yeah, yeah. data, streaming, texting, emailing, loves watching football games. oh yeah? who's your favorite team? he texts, he doesn't talk. that would be weird. get an iphone at at&t and get 50% more data. and right now get $300 credit for every line you switch. (vo) wit runs on optimism.un on? it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... this big, bold, beautiful world.
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awe believe active management can protect capital long term. active management can tap global insights. active management can seek to outperform. that's the power of active management. 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done,
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the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town, the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back.
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we are less than 24 hours away from apple's fourth quarter earnings report and the question on everyone's mind is how many phones did they sell. the ceo of you sell, a secondary market smartphone seller joins us with insider info on what sales may be. nick, good to see you, tell us what are you seeing when it comes to iphone sales and trade-ins. >> sure. let me give you a little bit of background on the data that i have. you sell is a second hand market for used smartphones. we built our business over the last three years by driving consumers to you to sell phones directly. at the end of the last year, the carriers got into the trading market and started offering trade-in programs and did this as a means of weaning customers to a no subsidy model. this year they have all disappeared. verizon was the last to announce it is gone and they have moved
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to equipment upgrade programs. and apple announced it recently. these are leasing programs where a customer can trade in their phone at the end of the program and get the residual value for the phone. so what you sell has is data on -- what we realize is when the market moved from the retail to the wholesale, we said we have to get into the wholesale market. we can't go direct to consumer. so tom oro we're announcing data from the trade-ins on that market. so what we've found is that this year versus last year, we're seeing three times -- two to three times more trade-ins at major carriers an the retailers when can he think indicates there are more people out there in the market to upgrade their phones. and it could be a positive indicator of sales. >> i'm going to interrupt you for one second because we are showing people the chart that you sent us. so the top line in orange is this year's numbers for the
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trade-in program and the blue line is last year's numbers so this suggest you are getting more trade-ins than last year. what does that tell us about over all sales then for apple? >> well it is a positive indicator. because it says that people are up for upgrade. and they are taking advantage in mass of the early upgrade programs. so that will drive positive sales. so we think it is a positive indicator for apple. on the negative side we don't see the iphone 6s i stup said but could be counterbalanced by the trends in the adoption of the early upgrade programs. >> all right, let's see, nick if this gives insights when apple reports tomorrow. thank you so much. >> thank you. >> guy's let's trade it. numbers compelling to you in any way. >> i think they are. the december quarter will drive the stock and people are talking about 74.5. and people have forgotten all of the other ancillary business or noncore or depending on what you
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call core. or is the ipad irrelevant and the mac irrelevant, i think not. and now there are users in a space where they would not dominate. i think $24 in cash per share is another reason to own apple. i think the expectations are very moderate into these numbers. and i wouldn't trade the number either way. you don't need to on the september quarter. >> i agree. >> anybody else, when you see the trade-in numbers does it drive you. >> it got up to the 200 day moving average, around 120-ish, and pulled back and now in between the 50 and the 200 day. from the technical stand point, i like it. -- >> you are waiting until tomorrow. >> i own the stock as well. ah, giddy-up. >> behind the latest foray into the mobile payment space. chase pay just launched moments ago. we'll sit down with more on the top executives of how they stack
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up against apple. and later, what is wrong with the consumer. gas prices are falling but retail stock was supposed to be the big winner. they are still falling. we're take you on the consumer conundrum on much more "fast money" after this.
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welcome back to "fast money." here is what is coming up in the second half of the show. the price at the pump is plunge you but another commodities that is in bigger decline. king dennis gartman will report for us. and one stock that is about to soar. we'll reveal the name coming up. but chase announcing the new mobile payment system, chase pay. the company partnering with merchant customer exchange making the service available at more than 100,000 retail locations like walt, target and cvs. gordon joins us from the money 2020 conference in las vegas. good to see you, thank you for joining us. >> good to see you too. good afternoon. >> so explain to me. so we have a phone here. explain to me, what is the consumer experience with chase pay. how does it work. is it like apple pay when i go to starbucks and hold it up
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there and pay for my coffee? >> it is a simple experience. it will work for the customer whether they are in a store, or buying online or whether they are in an application. and it will literally be one top to complete the transaction, michelle. so if you think today in a situation, you're buying something online and many instances you have to put in your name and address and account number and the security code, we'll automate all of those things for you. >> so that is online as well. not just when i go to the store and hold the phone up physically? >> yep, that is correct. online and in store and in application. >> and what is the merchant experience like? >> well, i think, we work very, very closely with the merchants. we spent a great deal of time with them. some of the country's largest retails. and they said they would like to get a lower price and we said we would be happy to do that if we got more volume. they like higher security and we
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said we would do that because clearly the data breaches and compromises are very expensive for them. and the last thing they said it they want to em bed their rewards program news a payment vehicle. >> so that is going to be part of it. that is not necessarily part of apple pay, for example. if people use that. tell me, how do you see apple? is apple a friend, a foe? you're trying to make market share from them? >> right. apple are very much a friend. we were an integral part of the launch of apple pay. and when a customer pays with apple and there is a chase debit or credit card behind that, it is perfect. it is just another alternative for the customer and another alternative for the merchant. >> but are you ultimately hoping that the consumer chooses to use your customers at least use chase pay instead of apple pay? >> well i think they'll both be very active in the market place, michelle. i really do. i think that customers both the
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merchant, and the card holder will decide which they want to use and in both instances, it ends up generating good business for us at chase. >> all right, gordon, thank you for joining us from money 2020. >> you're very welcome. >> let's trade the mobile payment space. guys? >> well, i'll tell you about mobile pay. i'll go back, mastercard, all-time high today. visa, all-time high today. american express, three year low today. so mastercard and visa, the secular chains we've talked about for years continues to work and you have to stay with those two names. i know it is not mobile pages but look, folks, these stocks work on a number of different levels and you stay with ma and v. >> i stay with paypal. going back to the early pays because of the global business. they are in place as an structure in emerging markets where they are just cutting through the red tape to make the payments. people are more scared about
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credit cards than paypal. >> is there any pure pay or something that we think of with apple pay for example. >> like a verification phone? >> i remember jim cramer joked that starbucks should spin off payment system. they had gone so far with mobile payments, more than any other company. >> absolutely they did. and who watches the buffalo bills and the jaguars on the internet yesterday morning at 9:00 a.m.? >> i was rearranging my sock drawer. >> nice and early. >> in case you missed it, yahoo live streamed this sunday's match-up between the bills and the jaguars playing $20 million to live stream the game. so did yahoo fumble the ball. julia boorstin has the details. julia? >> reporter: well, michelle, yahoo and the nfl both say it was a big success. reporting 15.2 million unique viewers streaming over 460 minutes of the game.
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adding up to an average of 2.4 million viewers per minute. far less than the tens of millions that would tune in on average for national football game but it is more than double the million users of region broadcast of a similar game would likely draw. now this comes despite criticism of the stream for buffering and for being even less good for those who streamed live via the xbox live app. and there we questions how many people watched it because it was on the yahoo home page and so heavy promoted and advertised next to the web mail service. but the evp of media roll out told me it was a big success and feedbackers from advertises has been across the board positive. a third of the visitors, over 5 million people were overseas, indicates that the nfl is likely looking to cash in on the international interest by licensing more of the smaller
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games. another potential buyer in addition to yahoo is you tube. but we have to remember, michelle, that the rights to the nfl big national games, those are all tied up over the next five years. so what they would be licensing off are the smaller recent games like the jags versus the bills. back to you. >> so they spent $20 million to get that number of viewers. do they think that tradeoff was worth it. they probably weren't willing to say. >> they weren't willing to say. but i think there is another element here. the fact that yahoo was the first to do this. so i think yahoo get this is intangible value by doing this and having it go pretty well. whether they do it again, we'll see. the fact that the numbers are pretty good here, i think it is a positive. but i think they get extra brownie points for buying the rights and trying it out and making it work. >> we'll see how much they spend next time if they do it again. thanks, julia. you are the football guy. >> i think there are two important things here.
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yes, the internet component is huge. that is a great number. but you have to look at the ads. they sold out the ads. they also cut the price of the ads literally in half to be able to reach to where they did. so you are asking julia about how much did they get back out of this. i think this is for the future, not for the now. but in the now, this was successful and yet it wasn't. because they had to cut those ads to be able to sell out the ads. >> to clear the market. will they pay $20 million again. >> i think they would. i think they absolutely would. but we have to understand, there is a time issue. the time element. you were joking about cleaning out your sock drawer, but what if you are in california, is anybody in california going to watch -- >> at 6:00 a.m. >> that is an issue. and who are the teams in this game. and you think about for an internet audience, absolutely, for american football, it is novel and for this audience, not so much and people are parked in front of their tv on sunday. so it is a cultural thing and international the nfl should love it and they will love it. >> guy you were at church.
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>> every sunday at chapel. >> what is quick is alibaba earnings tomorrow, growing from 57 to 77 and they better say something good for yahoo is in trouble. and coming up, gas prices is falling and so where is the consumer putting that money? it may not be where you think. we'll explain. important than your health.
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welcome back to "fast money." casual dining chain cheesecake factory third quarter earnings topping estimates and sales shy of analyst predictions. company points to favorable costs like ingredients helping to offset wanl inflation. comparable restaurant sales up 2% for the quarter, domestically the cheesecake plans to open 11 company-owned restaurant this is year, internationally it anticipated three openings many the middle east and mexico, currently is only one international location in mexico. the stock down 2% for the year. >> going worldwide for cheesecake. and as gas prices have fallen sharply, consumer driven stocks have been
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underperforming. that is counter intuitive. cheesecake factory, darden, all down in the last three months as gasoline prices are at year-to-date lows. and where did the money go? >> and i believe i'm long on retail and it has been frustrating. >> think there is three places it is going. i think look at auto sales, gigantic. so -- >> really? >> -- part there. and as pete mentioned, home depot and loweez. those retails are doing fantasticicly. so people are putting some of the dollars they would put into other retail into their homes. and the third, maybe they are saving more. >> or maybe they are going to certain quality names. and look at starbucks for instance, at a 52-week high. they are spending, it is a matter of where they are choosing to spend their dollars. and starbucks, the mobile payment is huge. they are speeding things up and testing out delivery and doing everything they can.
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again schultz,ez always in front -- he is always in front of it and you mentioned the mobile page. they are in front of everybody else, it seems like by years, not by months. >> long on starbuckss. dining is not doing as good as fast food and not what we we see -- we were seeing in the last year. and i think the trend continues. again, even though there is cheaper gas prices and the consumer seems to be better, value is what people are going for and with the exception of walmart, which has its own problems, the whole part of the chain is where the interest is. that is why standard & poor'sles continues to -- staples continues to outperform. >> and another company with problem is macy's. that was everybody's darling into the middle of the year. saw 32% over the last few months. from a 70 handle down to a 40 handle. downgraded today at cohen. stock made a 52 week low in
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reverse. karen can speak to this. at ten times forward earnings it is not an expensive stock. they report on november 11th. >> wholesale gas brices, as we've been talking about, are down 41% from the june highs. so how low can gasoline go? let's bring in dennis gartman, the editor of the gartman letter. what do you think gasoline prices go from here. >> they are still going lower. aren't they? it is one to one with crude oil prices and given the fact that crude oil is moving from the upper left to the lower right, given the fact that the drillers are still out drilling and the fact that the banks have not called in any loans and given the fact that you had wti at $50 per barrel two weeks ago and you had one year forward wti at $55 which was an extraordinarily good level to get hedge news position. we have continued to see fracking go on even though drill rigs have fallen off the edge of the cliff. we are still producing and you'll get rebob gas lien going
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down and nat gas goes down. and it is still a bear market in energy and it will keep going down -- >> and i'm glad you brought up natural gas. and the story today was it is collapsing. huge move. and why and where do you see that going? >> well the nat gas has a problem because right now with el nino out there, it looks like this year we'll have a slightly warmer and probably even a very warm winter on the east coast. and that will put demand down on as far as net gas is concerned. so right now, you have net gas bear what 225 at one time this morning per million british thermal units, i think 202. i said 225. i meant 202. it got up higher than that this afternoon. it is down where the weather is extraordinarily good. we are one or two or three degrees warmer this year than last year and as long as there is no shut down continuing in production, you might just, to
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do it, put a one handle up on nat gas. >> wow! holy smokes. >> that is dangerous. and so what do you do with the refiners. we saw reports on wednesday and you have a case where versus the second quarter, although the weaken in crack spreads and inventories are still better, but again, people are looking at this glut of gas everywhere and product everywhere, but demand hasn't really fallen off the cliff. just curious where you would weigh in on that? >> if you made me do something, timmy, i think given the fact that the crack spreads are still good compared to a year ago, and i don't see them narrowing in at all, if you made me half to do something in the refiners, would you rather be a buyer than a seller, no ifs, ands or butts. >> good to see you. we'll see if there is a one handle on the nat gas prices. my mom locked in her price for the winter. the electricity companies offer to t to you. do you want to lock in your price in advance.
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>> do you think she is watching the show right now. >> maria. >> maria? >> let's check in the commodities space. >> carl icahn got in lrg and the stock went from 48 up to 55 and given it back and testing a 52 week low. they report in a couple of weeks. a lot of companies have headwinds facing them. exxon-mobil, october 31st, i can't believe they will say anything that makes the stock go higher than now. went from 68 to 81. i think the place is in -- the space is in play to the down side. >> karen. >> the actual price of natural gas isn't what they do. they transport natural gas. so i would think the environment -- setting up nice. we're seeing big builds in the infrastructure to -- to export l and g, but it doesn't matter. it doesn't matter in the short-term. >> people want to buy more of it. still ahead. shares of ups are nearly up 8% in the past few months and you won't believe how high some
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traders see it going by the end of the week. we're going to explain right after the break. hopefully run more video of guy adami in the brown suit. you're watching "fast money" on cnbc, first in business worldwide. (vo) what does the world run on?
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welcome back to "fast money." iac moving lower after an earnings beat. seema mody has the latest. >> a sorry, they reported q3 revenues that surpassed expectations. announcing an extension of the existing relationship with google to provide sponsored listings and research related distribution for mobile. and we are waiting for it go public in the next couple of months but shares down eight tenths of a percent. >> going public. oh, my goodness. we sigh all kinds -- see all kinds -- and tind r. anybody interested in iac. >> this stock had an 85 handle in july. trading down to 65 or so. i think you sell into the bounce and and it gets up to $60. >> steve. >> it looks around this level -- it is ultimately a place you have to be very, very cautious.
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there is a lot of resistance for a long time. not in. >> and i use tinder to find interview subjects. you go to a new city and he don't know anybody and it is the only search engine where you can find people -- so -- sorry, how how we got an interview with the speed training coach. >> i think it is for something else entirely. >> generally it is, but not in my life. but it is to create business. switching gears, ups reports earnings tomorrow before the bell and some traders are expecting big moves from the shipping giant. mikeco is talking about "options action." >> two times the call volume in ups today. an average for earnings, that is what it is implying right now. but the most active activity was this weekly 105 calls, paying just under $3 for that. so this is option's traders bet
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that the stock will be above 108 by the end of the week which is levels it hasn't seen since january. they are having longist cal problems around the holiday but with guy adami helping out, we might have that problem licked. >> did you hear that? you're not paying attention. you're off in tinder land. i don't know what she's doing. [ laughter ] >> mike. that was great. for more "options action," check out the full show at 5:30 p.m. eastern on friday. coming up, right now, "mad money." tonight, cramer is getting an in side read on the health care slump, an introduce -- an interview with ventas. that and much more on the next program that airs on cnbc, "mad money." but first. up next, the traders tell their first move tomorrow, we're back with more "fast money" right after this. here at td ameritrade, they work hard.
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wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. great time for a shiny floor wax, no?
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advisor and team who understand where you come from. we didn't really have anything, you know. but, we made do. vo: know you can craft an investment plan as strong as your values. al, how you doing. hey, mr. hamilton. vo: know that together you can establish a meaningful legacy. with the guidance and support of your dedicated pnc wealth management team. and this really is fast but not least. here is something you don't hear or see every day. check out this epic video of
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three sumo wrestlers sprinting down a track in japan. the best part of the foot race comes at the end when one of the wrestlers, 30 foot long belt begins to slide off just as he reaches the finish line. >> it did look like he were getting a little bit of extra -- >> viewing. >> didn't ask for. >> do you do that in your triathlon? >> the same outfit as well. it is very comfortable. >> time for the final trade. let's go around the horn. jim. >> i'll tell you what, i would own yahoo and alibaba's numbers because i think baba is outperforming yahoo significantly and so proportionately i think it is doing bet. and as much as i beat on the streaming event, i think there is a lot to do there. >> mr. pete najarian. >> i love the options. ups, i think it is going higher. giddy-up. >> karen. >> i think footlocker over don on the combination retail match
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up and under arm your, i like your web. >> say hi to your mom. we learned about tinder and what you have going on there. >> natural gas, andaler 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. 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 trying to save people some money. my job. call me at 1-800-743-cnbc or tweet me @jimcramer. there is too much belief, including this one the dow nk


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