tv Fast Money CNBC February 11, 2016 5:00pm-6:01pm EST
>> i'm looking for more signs of the mna bubble is popping. veteran wall street bankers sells to french bank. >> thank you for joining us on "closing bell" today. you can catch rob's pieces on breaking news, and select articles are now available on cnbc.com back slash pro bell. >> "fast money" does start right now. overlooking new york city's time square. traders from the desk are tim, david, dan and diadomi. the man who called the decline in deutsche bank back in december said there's something more troubling in the global market, and it could spell more pain for stocks. plus, worry about your money. we've got four stocks that are up this year, and last year. they're unbreakable stocks. we'll tell you if they're worth buying right now. later, former fed president said
the fed has made a crucial mistake, and we may never recover. first, we start off with the markets. the dow ending lower by 254 points, the nasdaq in the red. the s&p making both the new closing low and a new interday low. finishing at levels not seen since april of 2014. so, new lows, now what? guy? >> as it turns out, the headline comes out just as it's making new lows, gets the market up 25 handles before we close at 1829. now what is this? i wouldn't save tomorrow's move. it's either going to be sub-1800 or north of 1850. i wouldn't fade either one of them, because people will chase into what will be a long weekend. i still think the bond market is trying to tell you something. i think the headlines in oil were gazy, for lack of a better word. tomorrow is not a day to fade.
>> not real. >> thank you. >> here's the deal. listen, i said earlier in the week, i really do think we're in a market that it's one step forward, two steps back. it felt kind of bad, the lows today. it was fairly orderly. you get the short covering rally when there's news out of opec. i'm of the camp that if we get a supply cut, and that's good for oil, i don't think it's particularly great for the economy or our markets right now. i think it will get traded. to guy's point, you could have the s&p back at 1850, 1870 in one headline. >> look, it was just -- we saw a tremendous round in selling earlier in the week. today was very muted. we saw lack of buying interest really. really no buyers inside in the institutional desk. we're coming into a long weekend. i think there's a lot of concern about that. i believe guy's 100% right that
you don't trade the first move. i think you'll see a little bit of change in behavior tomorrow. >> did you do anything today? >> i tell you what, i threw out a gold score which i quickly covered. i think there's a case where obviously we said gold is good. right now, carter's coming up to talk charts in general, but the gold chart is one you don't mess with. what we're seeing is, i think re version of the meet, and a number of long-term trends. i would not discount the dollar's move here. you want to find some positives. these guys are talking about oil. whether it's a fergazy, it underscores the negative feedback. treasury yields were the most disturbing thing about it. we had a place here where i think you've got global central banks, insurance companies, trusts, anyone who has to invest in fixed income has the ability to invest here.
of course you're going to invest here. why do you think yields are up 40%, because there's negative yields in a percentage of the world's oil market. i think you get a whole lot of things with the dollar weaker. >> we hear this negative feedback a lot. it implies there's some sort of artificial thing going on here. i don't think that's the case. look what happened in our stock market. look at the performance. general motors closed down 3%. toll brothers closed down 4%. procter & gamble closed down 2%. the guidance that most of them just gave today, we had pepsi, something's going on. i don't know how you want to discount that, if that's what that means. it's very dismissive. >> no question something is going on. we clearly -- i don't think i've argued along the road that global growth that is slowed down. but to say banks are in trouble, i think banks are in trouble because people think they have
enormous exposure to china and the european banks. so far, everyone that i've talked to says, if oil prices are higher, we're going to see it speed through the economy. oil prices didn't help on the way down. why are they going to hurt at 20 bucks higher. >> banks are in the worst case right now with the oil and gas defaults, what have you. >> i hear you. i hear you, but -- >> i don't know what's going on, and you don't know what's going on. >> market sentiment. you have massive selling right now. >> i'll be interested in the world to not cause any panic. that's what's going on. >> i'm talking to guys in investment financials. >> when you see u.s. banks for no reason down 40% in two months, something's going on. we just don't know what it is. >> let's talk about the earnings
for the banks. the earnings acts for the banks in this environment is terrible. with yields going negative, they can't earn anything on their portfolios let alone on their deposits. you can't tell me the banks' credit position is totally equated with their earnings positions. their banks, multiples, the stock market is correcting. multiples didn't make sense three months ago, where do they find the bottom? i don't know. >> there's obviously -- look, blackstone, which we all love correctly into the summer, that's gone from $43 in june or july, it was down 6% today. top of that, bank of america which we all agree valuation-wise in the world we talk about is inexpensive. i don't know if that matters. the stock couldn't even bounce when the broader market bounced. something's happening in the banks. i don't know what it is. i'm not suggesting i do. but clearly there's something -- >> the fed fund rate was only pricing 1%. so i don't know what's changed.
it really isn't that big of a deal. >> how about 80 basis points on the ten-year. how about 60 basis points on the two-year. >> the smart money was already there. >> i would rather talk about what guy was talking about which is blackstone. i think that's emblematic of where the market is. they make money through exit of deals. through issuance of stock. not them directly. obviously they're getting out of companies they bought. it's not in a market where it's a premium multiple. there's no liquidity. why is blackstone going down? that's why. are they going out of business? i don't think so. but they could be holding some bad stuff. >> here's my question that other people are probably asking, and that is, okay, let's say tim is right. let's say there is nothing wrong with the banks right now except they're in a terrible environment. why should i still go ahead and buy this? the price action is terrible. >> you're a very smart guy. would you step in right now and buy the banks if you
underperformed the market last year? how do you explain that to your investors? you're not going to do it. >> we've got a news alert here on jpmorgan and jamie diamond. >> melissa, dow jones according to sources is reporting jpmorgan's ceo jamie diamond is buying 500,000 shares, which amounts to roughly $26.5 million. this, of course, following the dramatic decline in shares of jpmorgan, and other banks this year, jpmorgan down about 20% in 2016. we'll keep you up-to-date on the story. >> thank you, seema modi. >> he's putting his money where his mouth is. as he should. >> look at what is going on over the last couple of months. that's a significant thing. he believes in his company. as he absolutely should. what we're talking about is something different. yes, if i was the ceo of jpmorgan, i would feel great
about things seeing where the stock traded down to. what dan and i are trying to say is, i don't understand what's happening. dan is in the same camp. but something is going on. is it systemic? i don't know. but the bank certainly trades as if it is. >> jamie dimon made $27 million last year. okay? come on, guys, he owns 6 million shares already. this is out of the playbook. this is what we has to do. he's going down with that ship one way or another if it ever goes down. >> bro jackson, i'm not doing somersaults here because jamie dimon bought $2 million in stocks. ceos are taking a look and saying i think my stock is cheap. the same as companies are saying i'll buy back my stock here. what i want to respond to, i think it's very clear, something's going on, and i don't understand and i'm staying away. but that might be systemic, might be some massive credit
thing like 2008. what i'm clearly saying is, i think banks are much less profitable. it doesn't mean i'm running and buying banks here. bank of america, citibank and some long-term -- >> non-managed accounts? i think we're speaking the same language. we're talking more fundamentals and valuation. >> grab your spam and gold bars and head to the bunkers. you want to listen to our next guest. here's what was said about deutsche bank back in september. >> deutsche bank right now is literally on the lows of 2011 when the u.s. got the debt downgrade. we've tracked this line. we've hovered here. to my eye, i think we're going to break. it represents the end of the road. now, going to break out here? that's not my bet. i think we'll break down out of that. my bet is, deutsche bank breaks. that's not good for banks, that's not good for equities.
biggest bank in europe, something's wrong. >> wow, was he right. deutsche bank shares certainly collapsed. carter, what is it? >> i want to look at long-term charts. there are certain signals, and history tells us when certain things are working a certain way, gold, treasury bonds, spreads, they're happening after great periods of advance or strength, i'll move quickly through these charts and go back. look how the first one is utilities. each chart has the recession of 1990. the recession of '01. and the recession of '08. this chart is identical to this chart which is identical to this chart which is identical to this chart. let's start at the beginning. the first is, the blue line is s&p 500. and when we know this is starting to hook down, and the relative performance of utilities starts to hook up, you typically are foreshadowing, because the market says we're not in a recession, we have an
earnings recession and industrial recession, but the call is we're not in a recession. this is signaling we're headed there. utilities. the same exact setup, relative performance of ten-year bonds. when you start to get this kind of behavior, you're starting to suggest that you're about to get another contraction. same thing with gold. again, we're starting to see this behavior where this is suggesting that you've got something that's reverting, and finally the spreads with corporates over treasuries. this is not a good setup. it's very hard to reverse it. ultimately, as a minimum, i think we're headed here. two charts of the s&p. that dot, you can draw it that way or that way. a pretty good reference point as you fall back to the level from which you broke out. that would simply take us to undo all the qe, and about 1575. that same dot, that reference
point is exactly the -- still in the upper quadrant of the entire bull market since reagan took office. we bounced back from the low in the recession, touched it again in the '09 low. i'm still talking only in the upper quadrant just to come back here, which would get us to the tops, 1575. i think that's just a question of when. foregone conclusion, very much my view. >> just a question of when. 1575. carter, thank you. carter worth of cornerstone macro. i think this side disagrees. >> i tell you what, i don't necessarily argue with charts that are showing history. and first of all, carter's done a fantastic job with a number of different -- >> the forecast. >> ultimately, i'm not telling you that i think stocks are going to go a lot higher. i think we're in an environment where there's an enormous amount of volatility in the central banks. i'm not wholesale selling stocks here. i think the world is coming to
an end. i think there's a difference. he doesn't know the time horizon, i don't know the time horizon. there's going to be rallies and big gap downs probably in the next six to nine months. everything unclear right now. >> you're just nodding. >> i will say this, carter is very handsome, and b, the march '09 low, the recent may high, 1575, 38.2%. closed below 1780 a couple of days, we trade there. >> wow. >> i'll say this to be somewhat constructive. i think if we got to 1600, 1575 in the next few months, that is probably the best thing that could happen to m market. look at valuation again. look at longer-term prospects. we haven't anything more than 10%, 11% in years. i would love it at 1600. >> you all should love it there. up next, twitter is tanking.
now it's a buy. what's changed? global markets get creamed. get this, positive not just this year, but last year. moments ago, hedge fund manager john paulson telling cnbc the floor for stocks has not been reached. we'll hear just how low he thinks stocks can go, right after this. property being stolen.l that is cyber-crime and it affects each and every one of us. microsoft created the digital crimes unit to fight cyber-crime. we use the microsoft cloud to visualize information so we can track down the criminals. when it comes to the cloud, trust and security are paramount. we're building what we learn back into the cloud to make people and organizations safer.
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welcome back it "fast money." a news alert out of puerto rico. michelle is this. >> hey there, melissa. we're here in puerto rico, because john paulson is a big investor in puerto rico, many hotels here. we sat down with him to talk about his investments in puerto rico, but also to talk about his opinions of the market right now and the volatility. he thinks there is a disconnect between the u.s. economy and what's happening in the market. that the portfolio companies they have are doing well and the stocks are getting hit regardless of the fundamentals. that being said, he also made it clear he's not diving in
head-first when asked if he's trying to seize on any opportunities of cheap stocks here. >> you know, the market's still falling. so anything you buy goes lower. you know, it's getting near the point where there's certainly a lot of value out there. >> at the same time we wanted to get his opinion on what was happening particularly in relation to the european banking system, which has shown so many signs of distress lately, and whether or not that could feed over in a meaningful way into the u.s. banking system. he said no. >> banks are extraordinarily well capitalized. they have much lower leverage and a lot of liquidity, and a much higher quality credit portfolio. so the u.s. is on pretty solid ground. i think the concerns will not be in the u.s., but more from china, where there's concerns about their financial system, the at of credit they've
extended and the health of the chinese credit partners. >> to be clear, john paulson does not actually own puerto rican debt which has been in the news lately, when they had a fight with the bond holders trying to restructure the debt. >> great topics. michelle, he's been a strong investor in the past in the shale. and shale equities as well as pharmaceuticals. is he still active? does he see value there? >> we didn't discuss that. we did discuss gold, which, of course, has been doing well. he said it has been performing well. he didn't want to give a lot of details about actual performance as you can imagine trying to get details out of him, not easy. >> right. michelle, thank you. michelle caruso-cabrera for us
in puerto rico. i think he's got the sentiment of a lot of investors right now. >> that's what we were trying to convey. that message sounded very similar. >> i heard the word dislocation. that the u.s. economy is not representative of what's going on in the market. that he's concerned about china. now, what these guys would say, i'm going to speak for bro jay simpson and jackson over here, what it means for european banks, is what it would mean for the u.s. banks. i think it's fair the argument these guys are about to give, that's impossible. you can't disconnect china from u.s. banks. >> speak for yourselves now. >> he's had horrendous years. in 2014, lost 35%. in 2011 -- what i'm saying is, probably off of peak assets, too. this is one of the largest investors in the world. why do i really care? because i have to assume that he's very cautiously positioned
right now, if those are his concerns. to me, you know, it's a lot of saying one thing and doing another. >> my concern is, when bank of japan went negative interest rates, i think that gave -- didn't speak to china, but to me gave the chinese every possible conceivable reason to devalue their currency. we saw it on august 11th, i believe, when the first sell-off started. i think you'll see a massive devaluation there. i think it's negative for our markets. i still think you have this global race in currencies to zero which are why people are waking up to gold. >> all right. still ahead, janet yellen failing to calm the market today with her second day of testimony on capitol hill. that's got one former fed chair up in arms. he said the fed made a crucial mistake. he'll tell us what that is a little bit later on. here's what else is coming up on fast. >> we're going to cut out their
living guts and use them to grease the treads of our tanks. >> that's what bank of america says is happening to some mega cap tech stocks. it could spell doom for the nasdaq. plus, you can try, drago, but there are four stocks in the market that have proven to be unbreakable. we'll give you the names and tell you if you can still buy them, when "fast money" returns.
the market may seem like a sea of red, but there are some stocks that have rallied in the recent turmoil. looking at some of the seemingly unbreakable stocks, a man himself who never breaks. hi, dom. >> melissa, i don't know about unbreakable, but i try not to break. i try to bend a lot, but try not to break. we wanted to look at some of these stocks. what we decided to look at were s&p 500 companies that had positive year-to-date returns as well as positive 12-month rirns. only 340 companies passed that test. here are a handful of them. first off you've got an interesting one here in terms of the one that's actually hit an all-time high in recent trading, tyson food, up about 14%
year-to-date. then you've got mattel on the toy side of things. a laggard for a while, but earlier this year up 10% year-to-date. as for campbell's soup, look at this one, up 8% year-to-date. another part of the consumer theme. reynolds american, tobacco company, bigger yield, up about 3% over the year-to-date period, 32% over past 12 months. cam bells, tyson's, reynolds american have held up year-to-date and on a 12-month basis. at least for right now, perhaps looking at a little more on the unbreakable side of things. >> thank you, dom. dom chu. barely bends. >> we broke poor dom. >> i would say there is a
problem that you're chasing performance at this point. >> tyson is a crazy expensive. surprisingly, approaching 10%. you know, 3%, 4% off the all-time highs. i don't think you're chasing it. i think it's clearly telling you that in this environment, stocks that can be around all-time high, something is going on. you find stocks that outperform, and allow these takes. tyson is one of them. reynolds. >> i actually own it. it's been a great stock for me. >> ding ding. >> yeah. and also, i own mattel. and i bought mattel yesterday. after that run-up in earnings, it was a fantastic number. a company on a turn-around. new management team, new products. i think i said it op the day of the earnings, tablets are not replacing toys around the world despite all the problems in consumption. 5.5% dividend yield. these stocks will trade
expensive. because of that dividend yield in this market. guy's right. these trends are working for a reason. you do not run from them. >> reynolds america, you're seeing a very strong trend. the work we're doing in cigarettes, in that entire market. internationally and domestically. look at reynolds america and say they're going to get a tailwind there, in terms of product and just basic fundamentals. >> listen, i don't think it's a great stock just to be for the yield. i think these companies are all -- i think if we have a sustained pullback here, and i think we'll go to carter's 1600 over the next several months, i think all these stocks will get hit. you could see a rush for the door in some of these names where people are only there for the 5% dividend yield. i don't think if you just -- if you're in cash, you say i need to put something to work, i need to own tyson's or reynolds, that doesn't make a lot of sense. here was another stock at a 52-week high, relative strength, whatever, they came in 20%
really hard. i think have a fundamental reason, have a catalyst and do it when you feel like it's the right time. serious warning sign for the nasdaq. bank of america says the nasdaq is in serious trouble. plus, mark cuban joining the ranks of shifts in the world. it is time to buy gold. gold on track for the best quarter since 1986. is it too much too late? we live in a pick and choose world.
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here's what's coming up in the second half of "fast money." janet yellen testifying today, warning of possibly a downturn ahead. we've got the former fed chair who said it is what she's not saying that is hurting the markets. he'll explain. gold up more than 17% for the quarter. we'll tell you why traders are saying this rally is for real. later in this hour. first, the nasdaq staging a stunning reversal, briefly turning positive after flirting with bear market territory this morning. but our next guest says perhaps you shouldn't get so excited. technical analyst with bank of america/merrill lynch. what are you looking at right now? >> i'm looking at the nasdaq stalling against the 2000 highs, 5132. looking at nasdaq 100, breaking down from what could be considered a double top. we're looking at the nasdaq 100 itself, 4,000, below 4,000 the
big level. suggesting you go to about 3700, 3400. and i think you have to stay bearish, below 4100, 4150. >> the bottom line, though, you're worried the nasdaq is losing its leadership. >> when you look at the nasdaq 100, breaking down relatively under the s&p after outperforming for the better part of two years. kind of reminds you what biotech did in december. i'm concerned about that. >> in terms of the underlying constituents, is this apple? where is the biggest culprit in here? obviously there are different periods, nasdaq at one point 25% of the triple qs. which names in particular? >> i can't really discuss names. but seems to me like the biotech story moved from small caps to large caps. i talk about truth in generals all the time. small caps a long time ago. now the generals are starting to break. we're seeing the bigger cap
biotechs, big tops there. we're seeing some of the semiconductor names. you look at semiconductors, stock index, it could be a head and shoulders top, so that's a problem. software services. it's stretched. i've still got to stay somewhat positive on there. a lot of -- not a lot of names there, reported numbers, couldn't hold the gains. that's like climactic. >> nasdaq is in trouble going lower, where do you see it bottoming out? >> near term targets, 3400. if this filters in and the generals truly fall over, it could exceed that level. the s&p looks like it's forming a big top also. so it looks risky. >> a lot of questions of the investors right now is can you have outperformance, can you have a stock of strength outperform in the market overall? i saw this outlined, and i know you can't talk about facebook,
but facebook was be iing defend today, where apple outperformed the index. could we see that scenario happen as well? or is there subject to a decline? >> i think what's going on is, we've seen the outperformance in the nasdaq 100, and it has rolled over. you're seeing pockets of the market get hit. it led with biotech, semi con duck torsion, media names that are nasdaq related. a lot of them already falling a lot. but some other ones are starting to fall now, too. i think it's filtering into the bigger pockets of the market. where i think you get the relative strength is not nasdaq 100, it's s&p 100. those mega caps are showing relative strength. the nasdaq is breaking down, and the oax is breaking out relative to the s&p. small caps are rolled over, that could be a secular trend that's with us for a long time. we're not secular bears.
we think the cyclical bear market is in place. secularly we're bulls. big support of the zb 1600, 1785. i think that should hold. it will surprise a lot of investors if you test it, small caps are going to lead. that's what happened in past big bull markets. >> stephen, thank you for coming by. >> thank you very much. >> what do you think about the notion of all of the leadership rolling over on the nasdaq? you're a big proponent of some of the generals. >> you saw the small caps really get hit. people are looking where the shareholder friendly companies. they have growth rates which are meaningful. they go after the winners when they start to run out of bullets. i look at tech and say, we've seen a lot of derisking on the big mega side. the names that really got smashed, i look at the sell-off as an opportunity to stick with them.
those are core positions that i believe in. i'm staying with thim for certain reasons, facebook being one of them. the growth there, they have an amazing platform, amazing growth opportunities. i think money will flow back into that name when things do turn around. obviously. >> i think it's a matter of time. i don't think facebook will be more valuable three, four, five years from now. has the stock adequately corrected. it's only down 2.5% on the year. the quarter was really good. to assume that facebook, a company that relies on ad spending, is not economically sensitive. it's a silly assumption in my opinion. if you have a long time horizon, and you believe all of the charters that we have come on here, if you believe the guy that the s&p is rolling over and nasdaq, facebook is not going to show outperformance as you said in 2011. facebook is infinitely more expensive than apple was in 2011. four times the amount of sales in 2011 that facebook down now
in the $300 billion market cap. it's just a fact. >> we'll see. let's stick with technology here. user growth came in short of expectations, stock down about 40%. so far this year. and coo adam bain had this to say about twitter's lagging user growth. >> we're focused with the in you level of execution that we haven't had before. our focus actually is around live. we're focused on refining an iconic product. with this focus on live, we know we're going to see a return to user growth. and also, the business is in a really strong place. >> he changed his tune on twitter, started buying it. >> business is in a really strong place. here's the reality. the stock's trading 14 and change. roughly $5 in cash. this is a company that's got tremendous brand value. there's no question about it. everybody's using it.
you look at the super bowl, any sort of like major event, twitter's being publicized. i look at it and say, you're either going to get an activist to come in and shake this company up, because it's been completely mismanaged. they have to figure out a way to extract and grow maus. they need to address that. >> the client price, though, all those arguments p could have been made a month ago, two months ago. >> it's valuation. stock is down to a level it makes sense. at $35, you start really being negative on the story, it made zero sense. this is closer to the valuation. google could come in at these valuations. i didn't think so at $35. i think so at this level right here. >> revenue's up 50% year over year through the quarter. yeah, we know what happened to mius.
but did anybody expect them to be better? the fumbling over what is the core, whether it's -- great, it is about live, the here now experience. this is why twitter works. i stay on the stock. today's numbers -- yesterday's numbers, didn't disappoint me. >> they can't work with this management team. they need to throw them out and get somebody in there to shift it up. give me a call, i'll take care of it. >> tweet me, jack. one former fed chair sounding the alarm on the fed. have they backed themselves into a corner? janet yellen's next move, what it has to be to save the stocks. steve wynn unleashing a dire warning about the u.s. economy. we hear from him later this hour. much more "fast money" straight ahead. oh, look at you, so great to see you! none of this works. come on in.
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global growth. >> thank you. >> i don't think it's mainly -- >> let's go back to -- >> that was janet yellen testifying in front of the senate today. the fed is absolutely to blame, and that they backed themselves into the corner, which could have big implications in the market. bob, great to have you on the program. >> nice to be here. >> all right. so now we're in this situation. you say she is to blame. what can she do now? >> well, i don't know that she did anything wrong. her luck was really bad. they waited too long to begin the tightening process. and as soon as they took the first step, these international developments, investing developments, sort of overwhelmed the situation. i think she's more unlicky than anything else. in terms of her testimony, there's certain things she can't do. she can't take things off the table, and she can't say never.
but she probably should show more concern about the turmoil in the financial markets, so that market participants understand that she's very cognizant of it. and worried about it. look, these people are smart, careful, cautious people. we shouldn't think they're going to tighten monetary policy in march with all this going on. >> sure. >> they're obviously going to wait. >> bob, let's say you're on the committee. how would you factor in what's going on globally, the turmoil in the markets? as welg as the turmoil in the u.s. stock market we've seen lately? >> well, it's a big negative. i don't worry a lot about dramatic chinese currency devaluation, because they are very concerned that their currency have international respect. they want it to be a reserve currency, and they've got a lot of reserves. and i think they're going to be willing to use them to keep the devaluation in the yuan fairly
moderate. on the oil situation, how low can you go. i mean, surely we're down to the point where it's going to have to stabilize and maybe start rising. and as far as the recession goes, you know, the bigger the boom, the bigger the bust. and we haven't had a boom. we've had very moderate growth for several years. so i don't think there's anything in the internals of the u.s. economy that would generate a recession. if i might, i'd like to say a little bit about the question that's come up so much today. i'm forgetting what the thing was about -- >> negative interest rates? >> negative interest rates. thank you. they can't do it. they've just adopted a new mechanical procedure for taking the fed funds rate. and that procedure calls for the
deposit rate on bank deposits at the fed to deposit it. they can't go negative on that without changing their whole procedure. that would take probably years. the bcb is minus 7. i think japan may be minus 3. and other european countries are minus. but we're plus. and it just went up from plus 25 basis points to plus 50. whatever they tighten it again, it will go even higher. they can't have negative interest rates initiated by the fed. there may be a treasury bill option some day that produces a negative grade, but it won't be the fed. >> bob, thank you for your time. always great to hear from you. >> thank you. >> i think bob mcteer is a man after your own heart. >> love him. >> in terms of the fed late to the game. >> they're late to a lot of games. i think one of the many unintended consequences of our fed, they allow the empowered other central banks to act, i'll
use the word, recklessly. you're seeing it in japan, third largest economy in the world. not good. mark cuban lit a fire under the gold trade today. i've heard that. i have analysed your biggest matches. oh really? when down a point, you serve an ace 5.8 times more than other top players. you sound like a coach. i am not. but i can customize training programs based on biomarker data. watson, that's pretty impressive. you might say i am the serena williams of cloud-based cognitive systems. nah, i wouldn't go that far.
welcome back to fast money. recording an earnings beat after announcing results last month. the conference call, the biggest focus. the ceo steve wynn saying it had its best month in january. chinese new year is so far looking a little stronger than the past. that overall mccow has seem to be stabilizing since november. february is off to a, quote, roaring start. the casino's operators' strong start to the year should be seen as, quote, lucky. >> if there's a recession in america, and it's hard to see why there won't be if we keep going the way we are, then las vegas will ultimately reflect whatever is going on in the rest of the united states. >> wynn also saying he likes the
long-term prospect of his company overall and personally reserves the right to buy the stock on, quote, extreme weakness. we know he spent almost $32 million on more shares late january. but he also said he may have purchased more in recent days. taking a look at shares of wynn resorts, up 2% in after-hours. >> morgan, thank you. so february's off to a roaring start, according to mr. wynn. tim? >> the stabilization trend, they could be down 5%, 7%, 10% in february. that would be fantastic. if you look at this company, it's trading in a range of 52 to 70. you're going to need to see reinforcement of that. he's buying stock, that's great. but he can can do that as well. he's got a lot of dough. i think actually it is somewhat of an endorsement for a guy who can see his business. people thought casinos were going out of business. these guys can survive. >> i would go there all day.
wear my tuxedo, look handsome at the trade school. if we go, we'll play -- >> i never gambled in my life. >> a fun card game. get a scotch, hang out. >> doesn't sound fun at all. >> now to gold. surging this year. the rally prompting mark cube on to get call options. his remarks sent off a flurry of bullish activity. dan, what did you see? >> what was interesting about his comments on gold was that it wasn't fundamental and it wasn't a hedge. it was a momentum trade. at the time when he bought them, it was before today, they were out of the money. now they're in the money because gold had the huge move. today gold was up 4%. option volume went berserk. there was one trade that looked like a mark cuban sort of trade when the epf was 118.50.
133 called. bought 20,000 of the 124 calls. up 18% from current levels here. that is purely speculation. it's like buying a lotto ticket on a lotto ticket. if it fails here at 120, it's going back to 100, people. so define your risk. >> here on cnbc, coming up, the final trade. trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
time for the final trade. tim seymour? >> look at mattel. very, very good earnings. get back in this name. it's going higher. >> unbreakable. >> unbreakable. >> maybe bendable. >> i'm falling back in the twitter call. i think the stocks should be bought here. it will take a little time to work itself out. this stock will be a lot higher a year from now, i think. >> i agree with steve on the twitter. if jpmorgan goes up too much on this news, i think you take profits somewhere in the mid to high 50s. >> fresh market tfm, up 22%
today. whole foods reporting is something happening in the space. >> kruger's? >> i don't know. you know what, tomorrow's going to be high. >> that's a fact, people. i'm melissa tomorrow here. them "mad money" starts right now. \s my mission is simple -- to make you money. i'm here to level of 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 just trying to save you money. my job is not just to entertain, but to keach. call me or tweet me. today was the perfect illustration of the fact that panic is not a strategy, even though it certainly seems pretty