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tv   Fast Money  CNBC  November 11, 2015 5:00pm-6:01pm EST

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it is one of the things they pound down in business school. what is your exit. what is your exit. they a the ipo is your exit. if you are a founder, the ipo is not your exit. and it is one of the lessons that i learned. the ipo is a starting line. and if you are going to be a public company because you think this is where you cash out, that is the exact opposite. the ipo is where you begin. and look, from -- since we ipoed, he had over 2500% growth compared to 65% for the s&p 500. so i think our shareholders have done well. and the long-term approach has worked well for our company. >> you are in the midst of a literal transformation of sorts of your company. people know you as a sports and athletic apparel company. you are becoming a technology company. jim cramer, my colleague and friend, refers to you as a technology company. >> yes. >> how, as an entrepreneur, do you know when it is the right time to make a transformative
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move for your own business? >> right. i mean, jim is right. we are a technology company. but the way i manage the company, it is very much like a team. like sales and marketing and offense. manufacturing and distribution is defense. tonight and i.t. is like special teams. but as we've grown we're much more like a european football team than a american football team. everybody is on the field at the same time. one of the tools i use for communication, i still run the company. and i keep white boards in my office. and there are three panels across, they are five panels deep -- >> i heard you love the white boards. >> i do. and i write things on them that inspire me or things for sales meetings they say like overpromise and deliver. dictate the tempo. walk with a purpose. done, done, done. there is a difference between done, done and, done, done, done for your team. and the only thing written in
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red ink on the white boards quite simply says, we sign a lot of teams. we sign cool athletes and getting into tech and other things. the only thing written in red ink on my white board simply says don't forget to sell shirts and shoes. in my business, it is easy for me to understand what my shirts and shoes are. but i challenge the entrepreneurs in the room, define for yourself, like what are your shirts and shoes. when i started, what allowed under arm your to be successful is focus. i made the same t-shirt over and over again. and it was focus. and becoming famous for one thing. and i see entrepreneurs being caught up with the jones or reading what other company is doing but for us it was to become excellent at making the first shirt that was just available for an american football player and then a la crosse and the baseball player liked it and the girl liked it
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and other players liked it and the same finding of multiple uses and without having to try to keep up with itself. our brand is that way. and technology, and when i think about -- i challenge any business owners in here, what is your shirts and shoes? think about it. for us, again, it is easy. but our job is welcome to the brand. we're going to run exciting commercials and show you powerful anl leets and be -- athletes and be part of big events and wow you with technology that says wow, but at the end of the day when we put you on the roller coaster ride and you do the loop and you come off and breathless, you go i love this. this isn't a marketing gimmick, but when you see our product your first reant shouldn't be is that an under arm our shirt, what does it do? what makes it special and great. so when you get off that roller coaster ride and you finish it,
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we're supposed to run you through the gift shop and you buy a pair of shirts and shoes and that is where tech has taken us. because i don't believe our industry has kept up with other industries of being as innovative as frankly we should be obligated be. >> you have right now the world's largest -- >> and that was the ceo of under arm your speaking with scott at the iconic conference from d.c. and appropriately retail was the story of the market today and that is where we kick off tonight on "fast money." macy's setting the tone today. a disappointing report for the third quarter and also the fourth quarter. and as we enter the thick period of retail earnings, is this going to set the table here. >> does this bleed over into everybody else. >> is this a read-through. >> it is difficult until we hear from others. terry lundgren sounded some bells today saying things are very slow for everybody. and he is actually even addressing that people are going towards electronics, toward other purchases and less toward clothing. he did talk about the weather.
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he did talk about the warmer weather. and t and the fact that is pushing things back. and he talked about inventory. that is a problem. they have to get rid of that. i think we'll have to wait and see is this everybody in the field or more macy's specific. because i look at the online presence of a jw nordstrom, are they suffering the same. they have the off brand and the rack. they have themselves in a couple of different spots that macy's hasn't been able to penetrate and i wonder is this everybody or just macy's. >> and that is the question. is it a macy's issue or a department store issue because across the board it was sold out. >> kohl's down and jw and others down. nike up 35% year-to-date. under arm our, up. and amazon up 116% year-to-date. there is no brick and mortar there to worry about. >> if i'm going to buy a kors
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bag -- more appropriately, because you would be more apt to buy one than i would, and i would imagine you would go into a macy's, you go into a kors store or the kors online. >> well i wouldn't go to the online site because i'm a tactile person. i need to feel the bag. with that said, i would go to the kors store in the mall. the department stores are suffering. pete makes a good point about nordstrom. the last quarter was excellent. we'll find out tomorrow. i thought it was priced into macy's. dead wrong today. but inventory is up 4.6% year-over-year over sales growth negative 6%. margins decreasing. operating margins below 5% now. that is a wicked brew right now in macy's. the only good thing is they traded at eight times normal volume today. >> so guy mentioned inventory which is basically supply. and this whole thing reminds me very much of what happened in the oil market. you had a structural change. and the structural change that you're having is people are not
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going to department stores any more. they are buying online. inventories are building up. at the same time, you are seeing some demand declining there. so you have a really bad situation for these retailers like a macy's. you also have a bad situation for some of the mall reits. so something like a simon property it. got hit today but not as bad as it should if indeed we're seeing the death of the department store and the mall and everybody is going online. so i would look to those to short rather than something like macy's. >> if you you are going to make that metaphor, i would argue it would be worse for retail. that inventory expires. a winter coat only lasts during winter. >> and forced liquidation. >> and oil is still oil in a barrel somewhere. >> there is no doubt about it. and one thing about nordstrom, it was up 20% in q2. are they suffering the same thing. maybe macy's bought the wrong thing and didn't manage the
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inventory as well. it could be an execution issue and that is what we'll have to find out when we hear from them. >> 50 back stage stores, the off-price outlet will open over the next ten years and ten are inside of an existing macy's. that sounds like cannibalization for me. >> and the flagship down the road from us, this stronger dollar doesn't help them. it is a big deal. two stocks that made all-time highs today that we've been steering you towards, mastercard and visa. visa closed lower on the day and both made all-time highs. >> for more on the blood bath, let's join former jc penney ceo allen quest rom. >> hello. nice to talk to you. >> from your advantage point, do you think this is a problem with the department stores or do you macy's has a number of execution issues? >> well i think department
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stores, because they represent -- the business is represented in apparel and accessories and particularly women, and that business is not strong. now you had a -- recently kevin plank on, that is one part of the business in the -- in the apparel business. now, [ inaudible ]. but it comes and go. and when you happen to be on one that is hot, god help you. when it goes the other way, the same. you need help. but the problem is you got a lot of things going on right now. i think you've already talked about the tourism issue. that is a big deal if you live in new york or los angeles where you have a lot of tourism or hawaii. that is a big deal. and if the fed raises the rate, it will be even a bigger deal for people who deal with -- with the tourist business. the weather issue, everybody poo poos, but when you have warm weather and people are buying coats, they don't buy coats when it is 70 degrees or 80 degrees outside.
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that does have an effect in the retail business if you are dealing in the apparel business. and this is an issue. and if you look at the customer is not poor. she's out buying a lot of cars and buying a lot of things for her home because she is buying home things that she didn't buy for several years. so you have shipment and electronics is an important part of people's purchases. so people are moving money back and forth. and quite frankly, until you see hot trends in fashion, you're not going to see a big surge in the business. but i would not sellout the department stores. i heard somebody talk about the internet is taking it all. i want to remind you the internet represents 8% to 9% of the business. it is not the whole business. there is a lot of opportunity. and in that 8% or 9%, most department stores have their own internet and it is helpful for that purchase. but that doesn't mean it is not going to continue to get bigger. but it is not going to replace the bricks and mortar. >> so alan, how bad does it get tor retailers and should we
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expect a consolidation in the space and we're hearing about store disposition or closures and does it get to the point where there is consolidation. >> i think there clearly needs to be consolidation in the industry. there is too much -- too much retail space out there. >> and who should be consolidating? >> pardon me? >> who with whom? who should buy whom? >> i don't know who should buy who. i heard that macy's is a player. i think that is a stretch. but i don't think that is the direction i would go. i think you need to consolidation by cutting back the amount of real estate they all own. there is too much retail space out there. and that causes -- that causes a surplus of inventory and that causes more and more markdowns an more and more sales. so there clearly has to be a reduction in the amount of retail space available, in terms of who buys who, there is not department stores out there to buy. that would not be i think a big opportunity.
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>> okay. allen great to get your thoughts on this. allen quest rainstorm, the former ceo of jc penney. i want to go in on what you are saying. if we have consolidation meaning store closures which allen is mentioning, that could impact the reits. but for the reits, it might be better to get the big box space back, divide that space up and put an apple store in there or a nike store or a kors store in there. >> it could. but i mean, again that assumes that they are going to want to expand and that is -- they could fill it at the same rent they could fill the other one. remember, these are also anchor tenants in the big malls. so you are not talking about small stores. you're talking about core tenants and that changes the whole game for those reits. so i would be apprehensive in this environment. >> macy's used to manage the square footage unbelievably so. it is just too big to do any more. so if you look at another name, american eagle, up 14%. that one is counter intuitive.
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you wouldn't think it would be up. it is up. jc penney up 33% year-to-date. that is another one. you buy the restructuring, you buy the reorg stocks. those are what you would buy. but jc penney, i would wait until it gets above 865. >> and going into earnings tomorrow. you are so tempted. >> i'm tempted. i'm not long there. i'm long tjx. and you wonder do the discounter, could they reap the rewards off what is going on with the big department stores. i would say they will. >> and why won't the margins be pressured like everybody else. if macy's and in order storms are doing the discounts, then they cannibalize themselves. >> maybe macy's has an inventory problem up 4.6% year-over-year. >> look at nordstrom's quarter. the price was good initially and lousy later. if they say anything remotely good tomorrow, the stock should
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rally. >> still ahead, it may be singles day but there is an unlikely winner emerging and it is not alibaba. and a look at how you get in on the action. and it is not what you own, but it is who you own. a fascinating report that tells you how much money you would have made if you invested in certain ceos and we maef -- and we have the names and the trades when "fast money" returns.
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mcdonald's kicking off the top trade. hitting an all-time high as it rapped up the investor day. the ceo appeared on "squawk on the street" today to talk about the all day breakfast. >> so the third quarter performance we had and turning the business around in the u.s. was actually before we launched all-day breakfast. so there is a number of components so what has helped us gather momentum in the u.s. business. frankly the most exciting for me is customers are telling us they are running better restaurants than we were a year ago. >> grasso has been mc-bullish for a while. >> i have. and i thought you should be buying this and selling yum for quite sometime. i don't know if that trade
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reverses but i think they have 15% to the upside. they are moving toward a 90% franchise from 81% which saves the company a hell of a lot of money. makes them more efficient. they get a more stable and predictable revenue stream. i think you could still be in the stock until it goes to 130. >> look at the tail end of the chart. how much is already in the stock here. >> a fair amount is. but we have had a massive, massive breakout. and look at how the stock traded today it. got hit with relatively negative news in the sense they are not going to do the reit and they got downgraded. so the stock traded well and held up here. you had the big gap up. it looks like it is holding. so i'm going with mc-grasso and say buy. >> how about you, gee? >> all day breakfast would be a problem for me. >> in many ways. we won't get into that. >> i get the all day breakfast. but you mentioned it at some point -- >> cannibalization. >> but i'm getting a
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cheeseburger as well. >> or just a egg mcmuffin. >> the experience is better. tim has been on it. efb but me has been on it. but above 102 is still a break out. >> i do love it. >> and up next, activision, black ops logged more than $350 million in sales. the place station is the preferred platform and the record for first day sellers. pete. >> not only a record. but this is like the release of the movies. when you consider where jurassic park was, it is a $950 million first three days for black ops so it gives you a sense of how crazed people are for the gaming world. when you like at microsoft, $400 million. and this beat that. in the hero collection. you continue to look at what they are doing right and they made the acquisition. they paid almost $1 billion the other day for king. so they are getting into the mobile world and that is something they addressed while on cnbc.
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the ceo talked about it. he said because this gets us to mobile. and it is not blocked because we are not having any presence in mobile yet. this gets them right in there. candy crush and the rest that could be created there. it is tough to argue what is going on with the company. they are doing everything right. >> and it is a completely different demographic. it is women who play candy crush. >> which is surprising. >> and if you start with the film studio. think about 100 million people who have played call of duty. that is a build-in audience for the movie. let's go a different way. electronic arts, release date, star wars battle front, up 50%. november 17th, watch the leadup into that i'm a gamer. i love the game. >> you don't even know what you are talking about. >> i'll tell but activision real quick, even though it is going from 20 to 35, at 20 times federal earnings, these guys are right. it continues to grind higher. still ahead, alibaba making
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records and there is an undercover winner and it is not alibaba. we'll tell you the name when we return. you're watching cnbc. first in business worldwide. here is what is coming up. >> what kind is that. >> the kind that makesa lot of money. because certain ceo's have a knack for making investors rich. we'll tell you who they are and how you could profit. plus, it is here. the ipad pro but investors could be running for the exits. we'll tell you what that is when "fast money" returns. 've read al. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do. do be do be do. do do do be do.
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today our users, active users of alibaba online shoppers are bigger than the american population. and today people -- we believe ten years later, when they are 35 to 40 or so, these are the people, breathe on the internet. drink on the internet. think on the internet. move everything on the internet. so we think maybe the number will probably go to like 600 million or 800 million. but people spending money on that will be each person, will be much higher. >> that was alibaba executive chairman jack ma taking to david faber about his hopes for alibaba growth.
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this morning singles day rose 60% above last year. coming in at $14.3 billion. that trounces the $2 billion haul that amazon did on amazon prime day. so how should you play the e-commerce. we have the markets lead capital markets analyst. mark it is great to have you. in terms of the baba gmv, that exceeded analysts expectations. how concerned should we be about the presales promotion and putting deposits on goods and purchase them on singles day. >> you have to discount the number a little bit. but this is massive growth in a massive market. alibaba has been the best way to play online retail once you work through issues. they put up numbers that nobody else could put up. >> and he was cautious about the chinese consumer. how concerned are you about that to the baba story. >> you have to be. wait a second now. alibaba dominated 80% market
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share of online retail. and online retail is bigner china than it is in the u.s. so this is a company that is purely -- well not purely, but heavy macro exposure. the u.s. could weather more of a alibaba downturn can. >> there was a number win pick since the beginning of the year. strong and long for amazon. the maybe new story is amazon web services. this is a juggernaut. with 80% year-over-year growth and 50 ebidta margins. you put the parts valuation on this and the stock goes high, we think it goes to 775. >> mark, let's go to alibaba real quick it. went from 57 to 85 in two and a half weeks in october. and you had great news, the stock did not behave well. where does it trend back to or does it go higher than here. >> i think we got out of the rough patch on the stock. we thought 30 -- 20 to 25 times earnings would be the down side and $60 and we broke below or got closer to it.
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we think it moves higher. but the mobile monetization that is picking up for the company, that should continue to move up. you could monetize bigger than desktop and that is the fastest growing channel. and you are going to have growth in the next two to three quarter and when that happens the stock is going higherment we may trade sideways for a little bit but we'll move higher. >> i remember having this conversation with you last year about singles day because the stock peaked around singles day and never saw the high again. i wonder if that spooks you, because the chinese story is cloudier than it was a year ago. and they are getting through these counterfeit issues still. i'm wondering what has changed now that makes you more confident that we, in fact, have gotten through the rough patch. >> so i remember actually -- [ inaudible ] we have a slight edge on amazon.
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but it is even as we go into 2016 we may expand that. we've gone through lock up expirations and the counterfeit and the big head wind is the mobile monetization. business is shifting to mobile devices. they don't monetize as well as desktop. we are almost a parity in the last quarter. and that is when you get the accelerating story. and those stories, multiples go higher, stocks go higher. >> so still a slight edge. >> yes, to amazon. >> slight. >> slight edge. mark to see you in person. let's extend that would you rather here. >> it is easy for me. and here is the problem i have right now with baba. you still have the counterfeit and the trust issues. and because of that, i look over at amazon, you have none of that going on. and you've got this cloud services that continues to grow. it has a great base. people are talking about the various margins, north america, international and they are doing
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everything right . in terms of ceos, bezos has been doing this for decades and look at how performing. >> i'm going to get for you. amazon. >> it would be. and aws is the issue why i'm pressing on it. it grows faster than amazon and it is not reflecting the price for good reason and i stay with amazon. >> and morgan stanley had the price target raised today and valuing the web services at $63 billion. >> that is the unknown here. and at some point do people call do they split this off or whatever the reason is, you still get pop in amazon. that being said, b.k. would be selling amazon. taking profits. i won't say it is going lower, but in the game of would you rather, would you rather be in alibaba. when you look out five or ten years, i know the chinese consumer is going to be there. >> so you are talking long-term. >> i'm talking long-term. >> but for now amazon, you are
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talking long-term for alibaba. so still, both of them, you still favor amazon. >> i would take a third off of amazon and take that money and put into in alibaba and see what happens. we'll have some issues with the chinese economy and you'll have to get through that. and that concerns me about alibaba. but at this point, why wouldn't you take it off the table. >> and you made a good point. up 15% through september. >> you said it last singles day was -- i think that was the all-time high. >> it was. >> and it never looked back. amazon, i know people get honest about amazon and saying they don't make any money, blah, blah, blah. the stock is going to go higher. i believe it continues to go higher. pete and steve talked about it. i think you could trade back to 71 and then it gets interesting. still ahead, one trade ser making a $3 million bet that emerging markets would cripple 12% by the end of the year. in case you haven't heard, the apple ipad pro is on sale but there is something that has apple worried. we'll tell you what that is
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right after the break.
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welcome back to "fast money." the day in the red and now on
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track to snap a six week winning streak. energy and consumer discretionary the biggest loser and crude fell to the lowest level this month. here is what is coming up in the second half of "fast money." the apple pro, will it mean the death of the pc. how the product stacks up. and the solar meltdown breaks down. a special "fast money" report still ahead. but first, there is an old saying that goes buy what you know but maybe it should be buy who you know. seema mody is back at headquarters with por. seema? >> that is right, melissa. if you know the right ceo, you could make a lot of money. take a look at this. what our friends at sun stripe call extraordinary ceos. group ranging from leaders in various industries and backgrounds. and in order to be part of the elite group, they identified three key qualifications. the ceo stock must outperform the s&p total return index, two, it must outperform a peer index and three, the kre must have
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served two companies and moved on to a third. and here are a few of the names that made the cut. first we have john malone who has been dominating the media industry for over 40 years. according to fun strat, if you invested $100 at the start of his career, you had over $315,000 today. how about new ceo of dupont, ed green. had you invested $100 with him at the start of his 14-year career, you would $3,000. and he'll on musk, he would have have a return of 1400% in the last six years. get the full story right now on cnbc.com/pro. >> let's trade the ceos and the company of which they lead. liberty, and tesla. >> you cannot go against that at all. that being said, if there is any of them, i would look at tesla. and the reason why, not at these levels, but elon musk has
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something in mind with the electric grid. as the electric grid goes off of oil and more toward renewables you need storage and that is where the giga factory comes in. people think it is a car company, and b.k. doesn't and i would buy elon musk. >> any guy that could draw a hyper loop on a cocktail napkin and make it work, you invest in him. the growth stocks and there is normal blue chip stocks. he is a growth ceo. you have to invest in him. the more he talks about the names, the more they run. i think you get side tracks with tesla though. >> and what are the ceos that should have been. >> ohhh. >> all right. >> real quick, though. >> i'm going to say schultz and bezos. those two guys are magnificent in two completely different businesses. but what we've seen out of starbucks since the beginning and the return and what we continue to watch, each and
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every week in the way this stock trades, and you look at bezos and we talked about amazon, but it is miraculous. and the spending and when he pulls back to show you how much money they are making and they continue to put money back into the company, these two guys are doing an incredible job. >> what do you want to say? you didn't want to answer my question. >> i was going to say john malone. and i recall this year he joined the board of -- lyons gate. you see that. you see the reaction yesterday. a lot of people getting involved in lyons gate yesterday off the earnings release. >> that was like a lead. >> it was a pause and then -- you know what recourse is. >> no. >> it is unfortunate. >> and college football game day. you go to indiana. >> you should watch college game day. they don't do it from harvard, unfortunate unfortunately. >> moving on. from hot to not.
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solar the buzz kill. the industry down, with sun said isson the biggest loser. down a whopping 15%. after the double-digit decline. we had larry mcdonald on yesterday talking about the debt and how heavily strapped with debt sun edison is. and multiple issuers which is a warning sign. and others mali corp and what do the others have in common. >> they are no longer. >> and these were very hot hedge fund stocks too. so not only that you have a company teetering and this is the story of the market. you get too much debt in a market that you think will grow. when the market doesn't grow to your expectations, everybody starts to head out and then you have a crowd trade and other trouted trades -- crowded trades and sun said isson is getting -- sun edison is getting killed.
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this is not a value right now. >> and when we were going through the debt levels, these are very different. they are different companies an yet they are all trading lower. >> in terms of the space. the crude oil move, and i know we talked about this a hundred times an they say crude has nothing to do with it. well guess what, it has something to do with it. but if crude wants to make another leg lower, it doesn't help the space. they are a different business structure. the stock sold off recently. if you want to be if the space. this is the place to be. >> and speaking of time warner, tune in tomorrow to catch the ceo of sun power in an exclusive at 5:00 p.m. eastern time. and we want to know is are the debt markets closing for solar companies. he may not have the issue but he will have a good sense of what is going on there. >> it is like kiz met because i didn't know that. >> it was broadcast. >> solar was falling today. and commodities tanking across
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the board. and as guy mentioned, oil down 2.5%. actually a two-month low after concern over oil supplies. gold hovering at a three-month low and copper sitting a six-year low. should we be concerned about the stocks that track these commodities. >> of course. not only is there a suppose lie and -- supply and inventory issue, there is the china growth issue. so you have a multiple amount of reasons to be bearish on the commodities space and the underlying stocks. we thought we would get m&a activity. i think that is on hold. i think it will eventually happen. but with the underlying commodities being crude, i think that is a ripple effect for the space. >> and you talk about leverage, how about freeport macmaran. everybody said when all of the big activists started to position into this, this is the savior, this is going to work. you look at the debt levels an see the pressure right now on crude and you start to wonder, these guys are now back under
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10. you look at something like that. there is some concerns for sure. >> and in two days alone the stock is down more than 10%. >> we talked about that in the green room. it has a seven handle. i believe it is a $7.5 stock. >> you mean -- >> the stock went from 10 to 13. and we talked about it. until uncle carl could find the end product, this goes down. and as well with l and g, with a 52-week low. >> commodities in general, we talk about it china rebounds. commodities do not rebound. that is why we like alibaba and going toward the consumer. so also in this, you have a strong dollar and it is going to get much, much stronger here. very expensive to fund yourself in europe in dollars right now so watch out for that. that will have a massive effect on commodities. >> still ahead, the ipad pro on sale today and the reviews a mix. will the bigger screen be enough
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to fix it. and details after the break. and fantasy sports as new york bans fan duel and draft kings. is there a chance at a comeback. we have all of the details straight ahead.
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welcome back to "fast money." the new much larger ipad pro is officially on sale. courtney reagan is in san francisco with all of the details. hey, courtney. >> hi, melissa. why would you buy a pc any more. no, really, why. that is what apple ceo said. the ipad pro is bigger. 12.9 inches and with a style us and new keyboard and enhanced retina display and it will apply to the creative user types. the big difference is the key target audience, the business customer. a segment analysts dan ives calls low hanging fruit and is counting on the enterprise for the ipad pro success predicted it could help reverse the negative tablet trend and represent 13% of the apple revenues up from 10% today. tablet sales are tumbling. as iphones have gotten bigger, some argue is decreases the demand for ipads. cook has acknowledged that.
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plus while apple tops the list, the over all tablet sales have declined for four straight quarters with worldwide dropping 12% in the third quarter. now many early reviews are impressed with the graphics and apple pencil stylus but they are not likely big enough sale points to sway many businesses to replace the laptops with the ipad pro. >> courtney reagan, thank you. and the reviews have been mixed. mossberg said he is sticking with his ipad air two and wired called it a fantastic tablet. and it could change the way you work. by the way, lance is supposed to join us tonight but he got stuck in an elevator in the national building. apparently it is elevator number three. he is okay. they are working to get him out. he is tweeting from there right now. he said check it out, my new home. and we should have more channels and netflix. >> he is stuck in the elevator. >> he is stuck in the elevator. elevator number three, lance, if your listening.
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we hope you're okay. [ laughter ] >> don't laugh it. could happen to any one of us, especially with this elevator here. >> i don't think you could get excited about the ipad. if ipads are declining, i don't know -- i'm excited you are moving more toward an enterprise-based product based off of kids sitting at home using their ipad. enterprise, i get excited about but it is still a one-product story and it is still about ipad and it is taking it on the chin. >> it is. but it is interesting. because it gets them positioned into the enterprise world. >> they have been there for a long time. you talk about a price point that puts you into that level. >> but a lot of people -- when i do the travel that i do and i travel every single week back and forth and when people try to open up computers like me, if i have the ipad pro, i could get much more accomplished on an airplane. >> you have to carry around the keyboard an the pencil and all
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of these different things. >> i have the mac. >> i have this thing. >> i have it too. >> but if you are not riding in the lap of luxury and the seat comes back if front of you -- >> and we have the original ipad here on set. that is the original -- original first ipad. >> that is a guy-pad. >> i love it. >> it weighs like 9 pounds. >> it does. >> it works for me. you press a button, bang. it works like a charm. >> but the smart keyboard and all of the things that come with this ipad pro, i think makes it very intriguing. >> here is an update. lance is out of the elevator. lance is safe. he is not going to join us. it is late. but we're glad lance is safe. lance, from mashable. coming up. emerging markets have been under pressure, down 10% in thyear. traders are betting millions it could double the losses before
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the end of the year. the details next. and major blow as fan duel and others get banned in new york. but is it gambling. we have a report right after this. you're watching "fast money," this is cnbc, first in business worldwide. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.
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welcome back to "fast money." daily fantasy sites draft kings and fan duel under fire after new york attorney general eric snyderman banned both sites. which begs the question is it actually gamble. eric chemi joins us with that story. >> that is right. the key question is, is it gambling. the regulators an the casinos say yes because they want the money and they don't want the competition and they say it involves betting on the outcome of sporting events. so whether it is for a team or individual, it is still gambling. but draft kings and fan duel say it is a skill-based game. but skill versus chance, it doesn't matter. you could have one or the other or both, but you could still be gamble and it doesn't have to be gambling. whether it is gambling, that doesn't correlate with whether it is legal. poker, horse racing, the
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lottery, they all have different levels of skill and chance but that doesn't re late to the legality. the borg ata casino held a basketball free throw shooting contest where you could win by betting on yourself. that is skill and chance. but is that gamble. so gambling might not matter when you decide the legality. those are three different dimensions. >> those are three good examples. does that mean they have a good case in trying to get this overturned. >> this comes down to politics an lobbyists. a lot of people say, oh, they just want the tax money, so they could negotiate. but that didn't happen in online poker. they got rid tv and it didn't come back except in two states it. wasn't about the taxes. the sports leagues want this to be legal because they get the money. the casinos don't want the competition. so nobody knows. the best answer i've got fren insider is that it has entered
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unpredictable territory. >> eric chemi. thank you. moving on here. $3 million, how much one trader bet that emerging markets could plummet. mike kuo is at the board. >> 60,000 january 31 puts in eem, the emerging market etf or $200 million worth. they are making a bet by january expiration that it is going to be below 30.5. to put things in perspective, that is right back testing this low. but let's go back and look at the ten-year chart. you have to go back to early 2009 so see when eem was below that level. so a bearish perspective on the emerging markets. >> mike kuo, thank you for that. for more "options action," check it out at 5:30 on friday. up next, the traders tell you what they are watching for tomorrow after this. stay tuned. the td ameritrade trader offices.
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a charity honoring veterans holding a special event this weekend. jimmy's run will raise money in
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new york city will help families of those who died. his son jimmy was an army range who lost his life in afghanistan. and it is an honor to have you back on the show. this is the fourth or fifth year we've have you and it is great to have you on veterans' day. >> and it seems like every year this gets bigger and bigger. >> it is a definite journey. and lead the way fund is accomplishing many goals. so it is so wonderful is that we are an active duty assistance recovery and transition. so we touch the lives of our rangers, from when they become a range to when they are wounded. we are helping them transition back into the civilian work force. >> how did you come up with this idea. jimmy inspired this. >> jimmy inspired this in '07 when he was killed. as a family we wanted to do something to honor jimmy. and when we established this and doing due diligence, there was nobody doing anything for the rangers. so as you get into and as you
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look behind the curtain like oz, there is more stuff that needs to be done. so we took it upon ourselves to make sure we are there and helping these men. >> and then you see dan and b.k. this is last year. >> and you're doing it this year. >> this is a great organization and a great run. it is down the west side of new york. you get to see the new world trade center, everything. it is a fantastic organization. it is not necessarily -- you don't have to be competitive in to be in this. just go out and have a good time and it is a great cause and -- you want to see some bad -- rangers, some of the rangers at the front, they are. >> it is a family-sent rick event. the guys that want to run get out for it. but we start on pier 45 at 9:30-ish in the morning on sunday and after the run-walk, we have a lot of families. so family sent rick. we go up to the lighthouse and have lunch there and we are honoring two special operations
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rangers that were killed back in october, 2013. >> right. >> the hawkins family and the patterson family. so we present them portraits it. becomes a serious thing and then afterwards we have a good time. >> jim, lee. see you back here tomorrow. "mad money" is up next. 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. i'm just trying to save you some money. my job not just to entertain but educate and coach you so call me or tweet me @jimcramer. where the heck is all the money going to? what are people doing with their

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