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tv   Fast Money  CNBC  November 24, 2015 5:00pm-6:01pm EST

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for everybody. we'll leave it there are for now. mike santoli and john naj with with us. melissa lee, what is happening. >> nall analysts are getting bearish so we have one analyst with three devices here on set that will kill the holidays for go-pro. >> kill or help -- >> no, hurt. >> hurt. >> my hearing is going. over to you guys. >> thank you, kelly. "fast money" starts right now. live from the nasdaq market site overlooking times square, i'm melissa lee. the traders are pete, steve, dan and guy adami. tonight on "fast," geopolitics back at the forefront with turkey and syria dominating the headlines and one retired colonel said it is about to get worse. what it means for your proefl. and tale of two hewletts. it is falling.
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we're on the conference calls and our traders will tell you which is the better to buy. and goldman sachs said stocks are going nowhere next year. but we have stocks poised to break out in a sideways market. but the surprising reversal in the market today. traders woke up to a sea of red. the dow was down over 100 points following the news of a downed russia jet near the border but by noon it was up and people at home are looking at screens and saying why is the market ignoring headlines on geopolitical unrest. >> i know, i have personally spend a lot of time, inordinate amount of time trying to figure out what is the next shoe to drop. i don't want to be caught off guard like i was in 08 and 09. you look at the next event, is this it that will final finally take the market down. that is what i'm looking for. as surprised as it is to folks at home, it shouldn't be that surprising because the last six
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years we've looked past every piece of negative news and had days like this that turned into weeks like this that turned into months. they are looking past the bad news because the fed has us backstopped. there are great individual stories out there. but the presiding fact, is the participants in the market feel there is a backstop in place and the united states stock market is still the best place to be. >> what sort of trades were you looking at first thing in the morning and how did that stance change throughout the day. >> it was all energy. because it was based on putin. so if you look at geopolitical events, the big event happening are the energy space. since it is such an underperformer, you think what are the affects on the over all market as the day progresses. i was caught off guard, as guy said before, at how we reversed. we reversed down to technical support levels. 256, 200 day moving average, 2063, flat on year, 2059.
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we balance at 2070. that is where the market rallied higher. but i think people are looking into this, like guy said, they are getting a little bit numb to the geopolitical headlines and it is a buy event. and what has not knocked this down was ebola in october. >> and i think we've had six trading days or seven trading days since reaction to the paris attacks and the market has had a couple of down openings and come right back up. i'll tell you this, the one thing that i think could derail a u.s. consumer that has been focused on buying things at home depot and nike and maybe one other and everything else is a disaster f. oil goes up for the wrong reasons for geopolitical events, because oil is in a big down-trend, consumers were not spending that supposed savings right now. and i'll tell you, and i said this the other day, if a stock like walmart can't get going again, you want to short it here. especially if oil goes up for the wrong reasons.
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i think you'll see $50 for all of the wrong reasons. walmart have to move to omni channel and compete with amazon and if not, it is going down. >> and there was a 14-month low in the same reading. at the same time i could make a bullish case here. >> i like your bullish case. >> it is a wall of worry. and we're slowly climbing. and this should make you more convenient that the market could re -- confident that the market could resume the rally. >> every time you see a selloff, you look what is getting oversold. the most interest thing for me, early on, before the market started this big turn, early on, six, eight minutes into the trading day, i'm looking at apple and microsoft starting to turn. apple went from mid 17 into the 118s in the first eight minutes. it took the market a couple of hours to digest this. that makes sense. we are down 14 or 15 points on the s&p. as we get closer into the afternoon, people are digesting this information. i think some of the concerns that hit early on, the concerns about what will be the reaction
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with russia, with turkey and the rest of this. we do have the backstop as guy was talking about. but it is all about what is going on right now and the right now was the nervousness suddenly came out. and don't know if it was the press conference. but you look and look around noon, the nervousness comes out and oil continues to hold on. suddenly we see the banks come back. and everything started rallying. people looking for opportunities and money flows came right back into the market. >> so it looks on the surface like nothing happened but a lot happened. >> a lot happened. if you look at the volatility, under the 200 day moving average, huge move in the volatility index. what you are looking for maybe, closer to the thanksgiving holiday. geopolitical events higher. and turkey tike down a russian plane. the president spoke with
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president hollande this morning. take a listen. >> turkey, like every country, has the right to defend its territory and its air space. i think it is very important right now for us to make sure that both the russians and the turks are talking to each own, find out exactly what happened. and take measures to discourage any kind of escalation. >> but will things escalate from here. colonel jack jacobs is with us and he has two scenarios to play out, one bad and one worse. we know the best case scenario, nothing happens here and it doesn't escalate. but what is the bad case scenario in your view. >> well putin can't do nothing. he's highly motivated to do something here. even though both russia and turkey have very deep economic relationships together. one, is that putin could attack again, ethnic turks, turkman
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locationed just over the border in syria. that would demonstrate that he doesn't want to put up with this stuff with turkey being aggressive and if he has to fly over the border, he has to in order to attack the people he needs to attack. some of whom are ethnic turks inside of syria. so he is libel to bomb them again. a worse scenario is -- is if putin decides to send a message to turkey and give him leverage in negotiating for whatever he will do. and that is from an aircraft over -- in syrian air spas to launch a long-range air to air missile and take down at least one turkish aircraft flying in turkish air space. and everybody has the ability to do that. we have over the horizon capability, a shootdown -- shoot down aircraft you can't even see tens of miles away. that is a possibility.
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and that would raise the stakes drat atticly. >> the u.s. is not mentioned in either of these scenarios. this is one of the most serious public clashes between a nato member and russia and some say in half a century. does the u.s. get dragged into this? do we play a role? >> well i think we would like to be able to play a role if it could be effective, but any role is on the diplomatic side. we're very scared of getting involved in there at all. which is one reason why we see a lot of the trouble we see now. we're not going to be able and have not been able to influence the action there in any way. we've been talking to russians -- i don't know, since the russians got involved, telling them what they need to do is bomb isis. and even after it was acknowledged that the russian aircraft jetliner was taken down by isis, although russia started bombing some isis targets, they are still almost completely focused on taking out targets of rebels working against his
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client, putin's client, which is assad. both putin and iran, their focus is to make sure that assad stays in power long enough for iran and russia to decide who is going to take over next. and they don't want to be diverted from that add all. >> colonel, we'll leave it there. thank you for your analysis. always value able to get your take on the matter. colonel jack jacobs. so what scenario, in your view, guys, is most likely, how are you trading it. on obvious trade would be energy. >> to me, the first scenario is the most likely. i don't think you'll have the worst case scenario, but you'll have a scenario which colonel just said is probably the first one. how do you play it? in my opinion, it is still in defense stocks. jim cramer stocked about defense stocks. lockheed, northrup grumman and we've talked about this for the last 18 months and all stocks that i think could continue higher. the catalysts are there.
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they are tail winds. i say you go to defense names. >> i agree with guy and the colonel. i think it is will be the least worst one. and think you buy the dollar, the u.p., the dollar etf, because for a whole host of reasons it is going higher and i have an option. but if anything flares up there that increases the further qe, they are meeting in december and i think euro down, dollar up. >> how far are you shooting for the dollar to go up. >> i think it is approaching the 100 level in dixie, i expect a breakout in the next few months. >> grasso? >> i think it is the worser of the two. i think you will see him step up. putin has no reason not to step up. we have done nothing, the world has done nothing to putin in the last couple of months, years, with the ukraine and crimea -- >> so no repercussions so he
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will go all out. >> i don't know if he will go all out, but he doesn't have a reason to back down. and ego drive this is man like no other leader. so the last time this happened we were around 1860 in the s&p and rallied 12%. i think the over all market goes higher. and i think guy's point, lockheed, boeing, they move higher. but the over all market goes higher as well. >> i go with bad and not worse. and i'm more concerned than you are. and the reason i say that is, i'm look at where volatility was on november 6th at 1433. and a week ago over 20. now back over the 200 day moving average. you want to protect the positions you have right now and overprotect and have the ability to buy on a dip. if the market is down 300, 400, 500 points, i think we're there. >> you do think it is potentially there. >> i think it is potentially there. and the reason i think so is we're through the earnings
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season catalyst -- >> how about the seasonality that will lift us. >> well, it will be interesting, because what are the major catalysts until we find out about the fed. and is there enough negative news out there that pushes us lower. i want to sit there on my cash and buy what i can. almost like a mini version of what we saw in apple today. >> so we are on top of your list. >> i would buy the spdr right now. >> dan said buy the doll ear. but if something happens, maybe it takes the fed out of the equation. if they are out of the equation, i think the dollar goes lowir. >> but they have to do something in december and they have dry powder in case something worse happens. a lot of moving parts there. >> glad we solved that one. coming up, goldman sachs said stocks are dead money in 2016 but don't worry because the traders have four stocks poised to beat the market. names that could juice your portfolio. and go-pro had a rough year
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but it looks like things will get worse. the two hot-ticket tech trends stealing major share from go-pro in time for the holidays. and the details on hewlett-packard, hp inc., hewlett-packard enterprise higher and we'll hear more from meg wittman right after this. other wireless carriers make families share data. some way to say happy holidays. switch to t-mobile now and get 4 lines with up to 6gb each, and no sharing.
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welcome back to "fast money." a ray of hope for the bulls out there. as sun edison shares surging 38% after it announced it is selling project tods tara form global, a project that generated 525 megawatts of power. a portion of the proceeds will be used to pay down a margin loan. keep in mind the stock has been on a rollerer ride, trade ago bove $30 this summer and now around $4.12. melissa. >> thank you, seema mody. how do we take this sale. i would imagine that a lot of this 37% increase is a short squeeze. >> you would be right to imagine that. how do you -- i mean, they are at the end of the rope, is what it seems like to me. they have a horrible balance sheet and they need to do
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something. what you just talked about is exactly what is going on. it is a short squeeze. if you've been in the name and enjoyed the ride down, why wouldn't you cover on the back of something like this. if i had to play the stock and i think it is a coin flip, i would look for a bounce tomorrow. >> karen had this right, a low single-digit stock. when you see the move over the last couple of days, there is asymmetric setup. it could only go from zero and up to infinite. it was $33 a few months ago. to me it sets up better on the long side, especially when they have leverage to pull like they are doing right now. >> i think you've heard what i said. it is definitely a short covering rally but i think you stay with first solar. we talked about this, online and offline. different client mix. up 25% year-to-date. i would not be shorting a $4 number on the sun edison. you want to play -- if you are playing it from the long side. >> speaking of spiking. shares of ex aulta spiking on
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shire is preparing a takeover bid for the biotech company. shire made a $36 billion all stock offer that was rejected. this is the latest space booming with m&a since the beginning of the year. it was interesting, pete, at the time analysts were questioning the strategic merit of such a tie-up and here we are again, share making another attempt reportedly. >> this is the sector. if there is any sector right now anybody is focused on, it is the pharmaceutical biotech world. we have the pfizer deal earlier in the week. that is an absolute monster. but this doesn't take a huge backseat to the buyouts either. i think the space continues to consolidate for a variety of reasons. i saw your interview today and i saw the company gilead. what is the biggest problem right now. the pipeline that doesn't really have the mix that they'd like. >> 50% of the revenues from hep c. >> and they are sitting on a mountain of cash as well.
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i think this is an area we'll see more and more of. i can't give you the exact names. but i think the space in general, we'll see the consolidation continue. i think celgene would be one of the names and i think those are the buyers not those that will get bought. >> i'm still scratching my head over allergan. it is not trading anywhere near. and a lot of analysts are now out there making the case that a loan -- a lone allergan is worth a buy but not trading where the deal price would be. is this the easiest money trade out there. >> there are no easy money trade. it is seemingly easy money, but i don't think there are easy money trades. i'll say what i've been saying for quite sometime and what analysts are saying, by itself it should be a $330 stock. with the pipeline and the valuation they demand, i think the stock should be higher. what hurt them is when the valeant thing went down. they got caught up in the maelstrom, a word i like to use from time to time. and we discussed it when it was $260 -- >> guys, they had an agreed upon
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deal at $60 billion and now we're talking about $160 billion. so we have to remember what we're dealing with here. there wasn't that much value created and synergy from potential cost cutting and tax inversion. to me, i think the arm is the way to play. too bad karen is not here. she loves the arm. you would buy allergan and sell pfizer. and i said this last night, i think it is a buy at 3.5% dividend yield, whether the deal doesn't happen. pete is shaking his head. >> his pony tail is up and down. >> i think pfizer, i'm dumbfounded it is down to the levels based on the reasons they are selling this name off. i think it is ridiculous. and i think you are right, dan. i think a stop -- i think you said last night around 30, something like that. i think absolutely. >> thanks for watching. >> and i would be long-term when i talk about a name like pfizer. this isn't a trade. this is an investment, they have a yield and their own pipeline. if they could get the allergan piece, the inversion, that is just cherry on top, quite frankly. >> quick take. >> allergan is already up 20%
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year-to-date. pfizer i owned forever, slow and steady wins the race. if you want to own something slow and steady and no mine fields, you go allergan. but i agree with guy, it looks like it is underpriced at 311. airline stocks losing steam as global tensions come back to the forefront and a worldwide travel advisory hits the industry. but investors are missing a major part of the story. she'll tell us what that is after the break. i'm melissa lee, you're watching cnbc, first in business worldwide. here is what else is coming up on fast. >> that is what goldman says stocks are going to do next year. but fear not. our guys have four stocks that could do well in a flat market. plus -- move over monday night football. because the nfl is planning to make thursday nights even bigger and it could have some stocks heading for the end zone. the names when "fast money"
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returns.
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welcome back to "fast money." airlines getting hit on the back of a worldwide travel alert issued by the u.s. state department. and last night the travel warning will expire in february,
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bridging the entirety of the holiday season. what does this mean for airlines. helen becker, is managing director and senior analysts. great to have you with us. i feel like travelers have seen this time and time before but could this be different. could we see an impact in the short-term? >> yes. in a word. we probably will see some bookings slow down over the past maybe last week, monday and tuesday. maybe things started to pick up the end of the week and maybe today, the next couple of days you see the bookings slow down. but we're through the holiday season as it were. because most people who have planned their trips are going to go. especially through the year end. we are more concerned about the first quarter. but that said, we still expect travel demand, which was very strong a week ago, a month ago, to remain fairly strong going into 2016. >> the travel warning was sort of vague. it was just warning americans about traveling abroad and being in public places and being in places where there are large
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crowds. at the same time, should we be concerned about the airlines more expose toad europe, given -- exposed to europe, given what is going on in the paris attacks. >> again, the airlines, especially the u.s. airlines, they are bringing capacity down in the international markets. because the strong dollar and lack of fuel surcharges has harmed profitability on those markets this year. brazil is just in dire straits. we've seen u.s. carriers pull capacity down and it gets filled back by the brazil carriers and we don't see that improving until the commodities markets improve. when you think about the opportunity for travelers, if you want to go, i think you are still going. you may consider traveling in the united states, mexico, the caribbean, staying closer to home rather than going further away. to your point, the travel warning was very vague. but we actually looked it up on the state department's website this morning and discovered the state department has many travel
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warnings in place. they issue them almost monthly. they are usually more specific. and they are usually more for specific countries. this, to your point, is very vague. but that said, the last vague one was december of '14 and the one before that was august of 2013. and yet demand was strong throughout the entire, what, 15 months, 18 months of that time frame. >> okay. great to keep in mind. helen, thank you for your time. appreciate it. >> thank you, melissa lee, helen becker of cowan and company. expect alaska and spirit to do well, american and delta an united to underperform. you are in this space. >> i still am. when we lose the 50 day, it held up well for a lot of these but it is just a single day where they've gone below the 50-day moving average now. the one name that held on was jet blue. i was looking at hawaiian airlines. i was hoping that to sell off. it is up near $36 a share.
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the outperformance has put it up in a stratosphere where i thought they would sell it off. there with names i would love to dive into but to her point, when you look at the big three there is a little bit of pressure. i think it could be lingering for a while. they have to recapture the 50 before i'm excited against. >> i think the point most interesting is we'll see the impack, if there is an impact in the first quarter. so we won't get those numbers until sometime in april, after the first quarter is done and in the books. >> i think the damage is longer lasting. so we're not talking about russia or turkey, we are talking about terror threats and that is a bigger theme going forward for the airlines. jet blue, to pete's point. you play with the winners. names that pull back, those are the names that you want to buy, but sky west, skyw, a billion dollar company up 56% year-to-date. this one on a pull back keeps you at all time highs. >> want to touch on the online. price line gets 88% of the books
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from international. ex paidia 46%. up outside of the u.s. and along the same lines for trip add adviser. if you think there is an impact. >> i think there will be an impact. we've seen it more pronounced with these names than the airlines because we heard the analysts talk about how they move capacity around to different routes. so i would expect that the ones that had difficult results because of the strong dollar are going to continue to have weakness into the end of the year and into q1. and those of you probably want to avoid and that would be priceline. >> priceline. you are a buyer? >> no. i don't think priceline is expensive. it is a fame i liked over the years. but let's talk about it real quick. we topped out at 400-ish. early 2014, made a similar high earlier this year. go back to the quarter november 9th. it was a solid quarter. the guidance for the fourth quarter was lousy. without any of the headlines we're seeing now. and now we're seeing the headlines and the people that booked the trips will go, but
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will people continue to go. and if something else happens, potentially no. and we could test the $1,000 wee saw this year. >> ben bald an za was join us tomorrow night on "fast money." so please don't miss it. as we head to break, here is a look at how hp andent prize are trading. a conference call for both well under way. we'll hear from meg wittman on what drove the quarter. and later, carl icahn takes a stake in xerox. and it closes lower. what gives. and is carl icahn losing his touch. more after this. it's kind of a losing proposition to keep going this way. we are trying to tackle the problem with several different modes. one of them is the brand new metro.
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we had a modest forecast: 110,000 passengers per day in the first line. we are already over 200,000. our collaboration with citi has been very important from the very beginning. citi was our biggest supporter and our only private bank. we are not only being efficient in the way we are moving people now, we are also more amicable to the environment. people have more time for the family and it's been one of the most rewarding experiences to hear people saying: "the metro has really changed my life." when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about.
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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.
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take a look at shares of the two hewletts, enterprise and inc. the conference call is under way right now. the stock is moving in different directions, so let's get to josh lipton who is monitoring the
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call. the last time the company will have one single call. josh. >> well, melissa, so meg whitman kicking off this call. hewlett-packard talking about priorities and the strategy and how it is executing. take a listen. >> hewlett-packard enterprise has five key priorities for fy 16. we plan to grow top line revenue in constant currency, drive a year-over-year increase in operating profit. grow free cash flow, continue to execute innovation road map and stabilize revenue and expand margins in enterprise services. and i'm pleased to say that over all, hewlett-packard is off to a strong start. first and foremost, the segments that comprise spe have two executive quarters of constant currency growth and we believe we could deliver on our plans to grow in 2016 in constant currency, and dean gave his analyst about hp inc.
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he said the industry is experiencing challenges an the quarter is weaker than expected. he said the market was tough for consumers. the pc market he said will remain challenged. windows 10 has not been a material callalist yet. i'll hop on the call and bring you more headlines as they come. >> josh lipton, thanks to you. and when the company first split on november 1st, the first day of trading for the two separate companies they said hpe is the way to go, it had more upside potential because it could do do kwagss an benefits from cloud trends. >> talk about drawing the short end of the stick with deon and the hardware unit. let's be honest here. if we are planning, would you rather, i think you stick with hpe. i think meg said it there. they want to expand service margins here. it is a very levered company and there is a lot of debt on the balance sheet. so i wouldn't expect big acquisitions. but if they continue to grow and expand, that is the one to own. >> i think out of the blocks
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they were way too bullish on hpe, not accounting for how it would trade afterwards and way too bearish on hpe inc. and now they flip it around. but i think the growth is hp, so i agree with dan. the problem is there is only one group of people, i should say, a company, aws, inside of amazon, that holds margins. i'm nervous about their margins, aws seems to be the only company that is able to hold cloud margins. >> well a few weeks ago hewlett-packard enterprise said they are abandoning cloudef rt for thes to -- efforts to build out a aws and won't have its own service. >> that is disappointing, that is something we talked about for a long time. meg whitman was pushing out this hybrid cloud and all of that. so for that reason, there is concern there. but still the enterprise, would you rather, it is the enterprise. would you rather be with hpe. >> and here is a would you rather twist. >> you do it to me.
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>> microsoft. oh, sorry. >> hp inc. or hp enterprise or other? >> and other is a wide open category, isn't it? >> yeah. >> other than i could go red hat, it an other i would go. pete is shaking his head no. microsoft is one. >> look at the way i traded today. >> sales force is another other i would go. so given that -- >> so the bottom line is there are many other things before either of the hps. >> there are interesting things. >> and the interesting names, who is microsoft potentially looking at, everybody is looking at. >> crm. so you say giddy-up to crm. >> giddy-up, indeed. >> good game. >> i try. >> hewlett-packard enterprise kre meg whitman will be on the "squawk on the street" tomorrow with david faber and gang. you don't want to miss that. we have a news alert from meg tirrell. >> just wrapping up now, a panel to the fda have been meeting to discuss a drug to treat muscular
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dystrophy, they are raising concerns about the efficacy and the safety of the drug echoing concerns laid out by the fda in documents on friday ahead of the panel. that drove the stock down 5% or 6% on friday. drove down the stock of the competitor 30% on friday. so this just wrapping up now. and looking pretty negative for bio marin right now. shares are halted right now. but in the after hours, you are seeing ptc therapeutics, another maker of a drug and ser epta moving a little bit as well. the negativity of the patients testifying very passionately and include something kids who are taking the drug. take a listen. >> i walk back and forth two blocks to the bus stop. the injection sites don't bother me too much. i used to have bruises and escapes all over so what is the difference. when i go to the pool i just
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wear water shirts so nobody could stare. so please approve it so other kids could feel this way too. >> that was a teen-ager talking about injection site reactions. the fda is set to decide on the drug late next month. and i should mention other drug news coming out from turing pharmaceutica pharmaceuticals, the company that raised the price of their drug by 5,000%. the company two months after this happening and saying they were going to lower the price, now saying they are going to price up to 50% for hospitals. and laying out a number of other measures it says will help with affordability of the drug, melissa. >> so they raised it 5,000% and now cutting it 50% but in the end that is still a huge percent increase. meg, thank you. and on the back of the news from bio marin, the shares are halted in the after-hours session. but she did point out the reaction prior to this decision or this information being released, it did benefit a lot
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prior from their own evaluation. >> with wh we talk about stocks in health care, we are talking about how to trade the stocks. we are not making comments on patient -- what is means to patients. obviously we want people to get better. so last week, one of the things i said was if you are looking to trade bio marin, when it was 120, you are hoping for a negative outcome, hoping that the stock trades down to 80. and buy it there. this is a stock that has more than this one drug in the pipeline at a reasonable valuation. it is almost been cut in half over the last year. if you get that move down to 80, you buy it with both hands. >> again bio marin shares are halted. i want to get back to turring pharmaceutical, because this guy is the -- the head for call for drug price controls here. and he's doing you a favor. i'm going to jack up the price 5,000% and cut it by 50% and somehow that is a deal. i'm going to sell you a sweater and jack up the price by 5,000% and cut it by 50% and you are
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getting a deal. >> and meg agreed with you. and this is a name that is different than the am gen, the gilead or the celgene. but they do have a strong pipeline right now. and that is something, when we talk about what is going on an the m&a and the different kpz, to guys' point, if this gets into the 80s, is this another candidate. because there is money out there and people looking for pipelines. and it would be a reason i think that at least in the back of your mind to start thinking about it as it starts to go to the downside. you look at that pipeline, a lot of very early stage but there is plenty good amount sitting on there that are mid and late stage as well. >> when the shares resume trading, we'll bring you that trade. it could be a tough trade here at the reopen. still ahead, shares are getting beat up in last month. one trader is betting on a major rally in the stock. we have the details coming up. plus goldman sachs says stocks are dead money for this year and next but our traders
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have a couple of names they think will outperform the market. much more "fast money" ahead.
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welcome back to "fast money." time for the call of the day. goldman sachs out with a new note calling for the s&p 500 to go nowhere in 2016.
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the target is 2100. which is essentially where the s&p 500 is at right now. goldman says stocks are likely to tread water and go sideways, similar to what we saw this year. but they did name a number of stocks that could out perform, like amazon, chipolte, whole foods, mastercard, paypal and alphabet to name a few. so if the market is flat in 2016, what should you be buying. let's go around the horn. pete. >> i'm looking at the banks. i still think we'll see interest rate rise. and cost last year was spot on for this year. 2016, he said flat and here we are flat. so great call by him at goldman sachs. but i look at u.s. bank and wells fargo, you get 2.5 to 3% dividend yield. you look at these two companies, they don't have the global exposure that everybody else has in the banking world that everybody is so concerned about. interest rates go up. think both of them do well. wells fargo, home loans a huge
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part of the business and i think that could be good. >> you are going a safe route, grasso. >> i have to go safe. so i go southern, under 5% yield. so if you talk about -- and they were talking about a rate-rising cycle. we've talked about this ad nauseam here. utilities and energy will outperform and that is why i'm sticking with utilities. southern. >> dan. i hate to rain on your parade. >> you love to. >> no, i'm telling you, we have the potential for a massive selloff, if you think about it. two years in this thing, when you look at -- >> that is not the premise. >> i'm laying it out here. >> we'll play this game. >> if you do believe -- >> so for a second straight year, you have to go with some of the strongest secular trends in technology and that is paypal, that was on the list here. we know that obviously there is big players that will get into the peer to peer. apple just supposedly is going to get in there. paypal, that is a hot property. i think they'll have to make big
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moves and i think that means maybe buying paypal over the next 12 months. >> in terms of what you believe what will happen next year, which is something bad for the markets, you would not buy paypal? >> no, i actually -- i'm long risk reversal in paypal. >> so are you bearish? >> no, i'm bullish on paypal. >> trying to just understand the context on which you are saying bullish with the paypal. >> he started by saying -- he enjoys -- >> he loves raining on the parade. >> like barbra streisand sang a song about that. we could sing that into the break. no major disruptions, which means the people are spending money. they do it with mastercard and visa. giddy-up. both of those stocks up about 20-ish% on this year on a flat year. that trend will continue. i'm playing the game the right way. >> all right. coming up, the nfl has a new
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playbook and could spell big trouble for media stocks. a special "fast money" report up next. and one penny stock gave up almost all of the gains today after being slapped with a delisting. we'll tell you about the millionaire that just lost tons of money. on "fast money" after the break. sure, tv has evolved over the years.
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you got this. welcome back to "fast money." we've got a special double buzz kill for you tonight. first up, shares of calo buy os receiving a delisting notice from the nasdaq. not keeping in rules by not submitting the quarterly report. they have 60 days to submit a plan or things could get more ugly. that is a warning to you guys out there trading this thing. and next up, shares of xerox dropping 2% today after popping almost 9% last night on the news activist investor carl icahn has taken a 7% stake in the company. we all scratched our heads about that stake last night. let's switch gears. the nfl is opening talks for the thursday night football broadcast rights and maybe much more. julia boorstin is in los angeles with the details. >> with the nfl's deal for
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sunday -- for thursday night games, with cbs, only one year long. the nfl has been meeting with everyone. broadcasting networks and internet companies. they have talking to -- talked to every company about selling the rates which is valuable as must-see live tv. sources say the nfl is looking for a deal to make thursday night football more dominant and looking for more promotionch and since thursday games are not locked up for the next five years, they are hoping to use the strategies to experiment and prepare for the future. to me that says more digital distribution. they are open to selling a stake in the network as part of a larger deal to prevent it cut out of slimmer bundles in the case of cord cutting. last week the nfl in silicon valley meeting with yahoo, following the first digitally distributed game just last
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month. the nfl wouldn't comment but we could expect the deal for thursday games to close in the first quarter. melissa. >> julia, thank you very much. pete i have to go to you, mr. football for this. what do you think the trade could be? how important would thursday night be. >> i think it is very important. and i think when you look at numbers in the last couple of years in the nfl, they just continue to rise to the upside. and so every time we talk about cord cutting, we talked about it with disney. i think it was over played before. i think nfl network, it is interesting to see how this notion goes. for nfl and the espn and the major networks, the money in college and pro football is outrage out. and the money that they could demand next is only going to get bigger. >> do weigh we want -- we want or need to see disney get these deals. so for espn and potentially others. >> you need scale and sports. and the nfl has sports and you need a big media operators and
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disney was slammed based on the skinny bundle. they will have a place in this and better margins on it. >> and all roads lead back to netflix somehow. >> what road are you taking to get there, the nfl? seriously. >> the road less traveled. >> definitely. >> and i'm taking that road now disney is a great company. but we made the move back from 96.5 and back to 122. the problems two quarters ago still exist. great company. i think it trades back to 110. netflix, everybody wants to poo-poo it, but it is the netflix world and we just reside in it. i think it goes higher. >> says the man would has never streamed a single thing. >> i'm thinking about going to amazon and buying something. >> that will be quite a day. twitter shares rally more than a percent today as traders are betting the stock could continue to fly through the beginning of next year. dan made his way over to the smart board. what are you watching.
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>> it is three times the call of puts and it was an out liar, up 1% on the day. and a large call purchase that my eye when the stock was at 25.20. a seller of 10,000 of the december 3338 call spreads, selling those to close. they will expire in a few weeks and they were worthless. they rolled out that bullish view out to margin and bought 10,000 of the 31/36 call spreads, spending $750,000 in premium. it breaks even at 3175 at the upside. that is a long shot people. but let's think about what is going on. this is a long holder leveraging up a long position here. this is an important support level. $25. nothing but up. >> nothing but up. all right. >> you have to see what is going -- the folks. >> what is going on on the right side of me.
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periscoping or whatever. >> nicely done, dan. >> up next, a very unusual final trade right after the break. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans,
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a very special final trade. in the spirit of the headlines we embraced the spirit of the kindness giving you stocks that are able to give back as well. around the horn with your favorite dividend plays. pete. >> l brands. and a lot of giving there. you have a 2% interest dividend yield when you look at this company. they are doing everything right. and by the way, they didn't explain about weather. that was not an issue. i thought we were going to have the gratuitious footage. >> we don't have time. >> revenue and sales are up. >> grasso. >> philip morris, under 5% yield and you collect that yield and get paid to sit on that name and maybe you pay for your bad habit. >> dave. >> we were talking about pfizer, 3.5% dividend yield, you sell calls against it and inject more yield into that one. >> nice. >> you want me to do the runway
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walk like they do -- >> no. >> do it quick. >> at&t quick, 5% dividend, at&t will get you done. >> i'm melissa lee, thanks for watching. see you again at 5:00 "mad money" with jim cramer starts right now. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. my job is 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 save you money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. all right. let's see. the turks shoot down a russian plane. the consumer confidence gauge is

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