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tv   Fast Money  CNBC  November 10, 2016 5:00pm-6:01pm EST

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>> it's such a high level for low interest environment. >> huge exporters to latin america. >> you don't want to buy the whole group. you want to buy some of the little gems. >> stephanie, mike, thank you guys. that does it for us on close close. "fast money" begins now. we discussed a lot of different situations, some wonderful and some difficulties. i very much look forward to dealing with the president in the future, including counsel. he explained several of the difficulties, some of the high flying assets and some of the really great things that have been achieved. so, mr. president, it was a great honor being with you and i look forward to being with you many times in the future. >> an extraordinary image of
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unity and cooperation, underscoring another extraordinary day on wall street as the trump rally continues, the dow surging for a second straight day to record highs, up 1400 points, yes, 1400 points since 2:00 a.m. on election night. it was the financials leading the way, they're up 9% just this week. the promise of less regulation, higher rate, the possibility for the next treasury secretary. wells fargo is up 8%. goldman surging 4%. it is bank nirvana. is it too late to buy the hottest trump trait around? guy adami? >> i thought it was too late two days ago. if it's now another 4 or 5%, it's clearly too late. i haven't believed in a bank rally. i have believed in u.s. bancorp. banks are trading like it's the 1980s again, like there's no regulation whatever. they're not going to take away
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regulation entirely. they may tweak a couple of things. to think they're going to roll back everything i think is folly. people are playing catch-up in a major way, steve can speak to that. valuation will get in the way and we're probably pretty close to that point. >> are we close to fully valued on the banks? in an environment where we've seen rates spike higher. >> i mean, it is nirvana, couldn't be better. you have rates moving the way you want them to, regulation potentially being dismantled, you have a market that's up. you have an economy that's strengthening and you might have some tax reform. it could not be any better. all that having been said, i had to sell some banks, some yesterday, sold some bankamerica upside calls in december. they may already price in a december hike already. that could certainly be the case. it is possible one of the
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linchpins of nirvana doesn't actually come to pass. >> which are you concerned about? >> the dodd/frank euphoria, it won't be easy. that one i feel is somewhat suspect. i don't think they're crazy expensive, i just think they came so far, so fast. >> yesterday i was 100% to buy. it was a mad house. everyone was scrambling on the opening bell to buy industrials and financials. that's the way they lead. everything else later in the day became for sale. the only idea was to buy those two sector groups. to karen's point, if you go back in the xfl and look at the etf, 2007, 3097 was the high. down to the low in '09. now we're 21 and change.
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do we think regulation is taken off across the board? we all agree, no. will things be as good as they were in '87? i think we all agree, no. it's a big move, percentage basis. >> yeah. >> but they have come so far, so fast. >> the question is do you buy the banks at these highs? as a trader i'll probably say no. tomorrow morning, do i want to rush to the banks? i am long xlf because this is a bankster's paradise, nirvana, it is for this environment. will everything guess passed? probably not. here's the key to this whole rally. this is not a donald trump rally. this is a republican sweep rally which means things can get done that are pro-business. you'll get some pro-business things done. on pullbacks, i would be buyer of the banks. >> we're not being political
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here, just trading the hand that has been dealt to us. >> to jump in, biotech should be sold. the financials probably are overbought at this point. and the infrastructure place, i'm long, i got long yesterday, uri had a humongous pop. infrastructure is still a buy. >> let's put aside dodd/frank. pro-business, pro-growth. are we factoring in enough that there could be more economic growth, more loans, more loan demands, more trading activity? >> great point. the chicago mercantile exchange, home depot is finally getting its legs back as well, to your point. one of the things we didn't mention is the economy getting better, which would be one of the reasons bond rates are going higher and yields have spiked. i don't think that's the reason. i think yields have spiked
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because people that own our debt are terrified that the man who made a career out of defaulting on his debt, the now president-elect, may play that game in the white house. >> the market would not have run if that was the reason. banks wouldn't have run. i think it has more to do with rates rising. >> let's add one more thing to that. we're probably going to get repatriation of a couple of trillion dollars. it's hard to be extremely bearish on u.s. assets when you have a wall of money that's going to be coming out. even if the economy doesn't get better, i would not want to get in front of that freight train. >> take a look at home improvement trade, you would have thought the spike in rates would hurt the home building trade but in actuality it's been on fire as well, whether it be the homebuilders as well, the suppliers, the whirlpools of the world? >> there was something to the whirlpools of the world being
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down. there was trepidation about the election. i believe that a little bit less for many dunkin' donuts than a whirlpool. you could see someone holding off -- >> a couple of thousand dollars, a few hundred dollars. >> i think the dunkin' donuts and the starbucks are a reflection of what you just said carried out a little bit further. if they lose confidence, they're not on the street buying anything in stores. when people are out buying, they're in the coffee shop. if there's less traffic, there's less traffic to a dunkin' donuts by proxy. >> we have a republican sweep of washington. we have clarity now. that's off the table. people should be buying, right? >> i would think that the market has the ability to move higher even from here. the only thing that stands in your way, fmoc. i do believe there's a lot in the market already. it can move higher. >> there are risks. this market is not without risk, as every market is.
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probably the biggest one is a rising dollar. if you get money coming into the u.s. for whatever reason, whether it's repatriation or people feel this is the better place to invest, and the dollar rises too fast, too far, then we get ourselves back in the situation we were in back in february, that hurts multinationals, it hurts trading. you can be long dollar, i am, i got longer dollar after the election. but that is not today's worry for the market. it is a concern. >> what is too far, too fast? we've seen a 2% rise in the index this week. >> you'll see the dollar -- >> meaning what? >> 10% higher, maybe. you've got -- look at the -- i don't want to get too wonky, but look the rates in europe. the dollar is going to run. >> one of the street's most accurate forecasters was prompted to abandon his bear
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stance, jpmorgan's global head of derivatives, known as the man who moves markets. now he's bullish and sees record highs ahead, marco, great to have you with us. >> thank you, melissa. >> why the turn of opinion? >> so our viewers, with the republican sweep, we did sort of indicate the probability of donald trump was higher than the market hoped, you have the promise of this massive stimulus. this stimulus would be reinflati reinflationary in nature. you have a corporate tax rate, potentially, you know -- these are all pro equity measures. and we maiden the last 12 months, basically, that this will overweight other concerns, you know. so now we have a trump elected.
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the question is where the market goes from here. we think it could go higher from here. this rally may not be over. what we think is basically that sometime towards the end of this year, early next year, we could see 2300. so these positive equity or business-friendly implications of the trump presidency, plus some year-end rally, and what we do, i do still think the fed will be relatively -- so that could get us somewhere to 2300 sometime early next year. >> so 2300 early next year, there's a very short term forecast. what's preventing you from going out a little bit longer? are there uncertainties? >> there are uncertainties. >> there's also when he gets inaugurated. >> there are still uncertainties. 48 hours ago, the consensus was trump is not going to win and if he wins, the market will be 20%
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down because of the uncertainties. these uncertainties are probably unrealistic and a bit biased. there are some uncertainties. we do think that that should keep volatility in the market elevated. i think it's going to add volatility. i wouldn't necessarily shun all safe haven assets, like earlier today we saw the recommendations, sell gold and stuff like that. i wouldn't necessarily agree, because gold is a reinflationary asset. plus i don't necessarily agree with that move. other angle is -- other angle is this inflationary move. you have emerging markets selling off rapidly, wouldn't expect if inflation goes higher, you wouldn't expect this type of move. there are some risks and
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uncertainties. i think it's going to take a little while for the market to settle. >> not to throw the wet blanket, i want to put a new driveway in, change the roof, i want to do a lot of things but you have to pay for it. we have a debt ceiling. i think it's in march coming up, it's going to be voted on now by a dominated republican house and senate. how does that all factor in? >> i'm not a political analyst, but if the president wants to come up with a stimulus, he has a sweep. he effectively has a party which is now basically looking up to him and trying to sort of get on good terms. so from my personal view, he will be able to get those things done. and also that's the sort of logical thing that would be one of the first moves. you do want to get the economy going. my view, that would be the priority. if you do have a sort of bigger deficit, i'm not a huge believer
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of rate hikes and rates shooting up, and frankly i'm not a huge believer in a massive dollar rally. >> how about bonds? do you see -- are we in a world where the s&p sees 2300 and bonds sell off even more? >> i'm not sure if i have a good answer for that question. bonds can probably go a little bit lower but not much lower. at some point bond yields have to establish lies pes, at some point in time they'll drag on interest expenses. i don't think it's one way. i think, again, you will have some doubts, and bond yields may pull back a little bit. so -- but i wouldn't put a number. >> marko, thank you, from jpmorgan. sounds pretty good. >> and he brought up a really good point.
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it's the seasonality point, prior to even the election, is that you have the end of the year, the markets are already up. you have many hedge fund managers that were underinvested going into the end of the year. you get this missing-out effect. that could take us to the inauguration. at that point all bets are off. i think that's the dynamic. >> prior to the election you want it to be risk-off? >> very cautious. >> almost saying you should be in cash. >> almost saying that. i did not say that. i said be very cautious. so i didn't expect that we would get a republican sweep. that is the huge difference that happened in the last 48 hours. >> constructive? >> you have to be. you have to be with the wall of money. >> i said there was no incentive for you to get long market ahead of the election. >> now what? what are you done?
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>> i bought spiders and edm. unless that trade starts to revert, i'm going to stay long with that. i think s&p can go higher. >> i sold some uri. this was delightful, manna from heaven. not one cinder block of the wall has been built yet. maybe it comes back a little bit. >> the market seems to be -- everything it could possibly do is being priced into the market now. we forgot all the market negative things that he talked about, not that i -- and this isn't a political thing, but all the protectionist stuff, bringing jobs back. there's a cost associated with all that stuff that is not market friendly. it's like we've forgotten about it in the last 48 hours. at some point people wake up to the fact that maybe he's not as market friendly as everybody seems to think.
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this is a hard freight train to get in the middle of right now. coming up, apple, facebook, amazon, get hammered because of a fear that trump will be on their backs. later, the number of dividend paying stocks are getting crushed. how bad? and we're following all theed by after-hours movers. disney with a big miss, and the troubles at espn. we're back with a busy "fast money" tonight.
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the top five most valued companies in america today are apple, google, amazon, facebook, and microsoft. if the team is focused on big business, there's five big businesses right there. >> had a do each of those companies need? >> high value, high quality, high levels of immigration. every one of them is powered by those policies which which have been stuck for 20 years. >> that was eric schmidt, executive director of alphabet.
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that kicks off our top trade. it's not looking too good, the rest of the market has been on an historic rally but those big five companies have been wrecked. amazon's jeff bezos tweeted congratulations to donald trump, if i for one give him my most open mind and wish him great success in his service to the country." do you buy any of these tech stocks or do you stay away, karen? >> i bought. i bought today, i bought facebook and google. they seemed ridiculously overdone. they still have great businesses. some of the positive things that people assigned to trump policy will also affect google, apple, all of them, repatriation of money, better tax treatment. so i don't understand -- i know they're out of favor, he personally didn't get along so well with silicon valley. i don't think that matters. these are fantastic businesses. i think they were good to own. >> for a couple of these, he specifically has singled them
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out on the campaign trail, apple, saying we're going to bring those jobs back to the united states, amazon, he says they have a huge antitrust problem. should we be concerned? yes, economic growth is going to lift all boats, in theory. >> short term you have to be concerned. they are an atm right now. that money is coming out of that, going into financials, going into industrials, going into biotech. i don't think that trade lasts forever. to karen's point, if you have an idea on valuation -- >> this is a rotation in your view? >> i think it can last until the end of the year. this is a positioning issue with a lot of funds. and these funds have that positioning until the end of the year. >> this is not a big part of this but it is a part of it, people got into tech because they had dividend yields. as rates go higher, that's one less reason to own them. don't discount that. to steve's point, amazon is not participating. you're coming off a disappointing quarter. i would have thought that the
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s&p 500 would have been 50, 60 handles lower than it is. a lot of these other tech names, i'm not talking about facebook specifically. >> why were people buying this? this is the only place you could get growth. if you have growth elsewhere, that's rotation. when you think about how much social media played a part in this election. i don't think facebook will be impacted by the fact that the president-elect did not get along with silicon valley. facebook will be fine. disney is falling in after hours session. we'll hear the latest from ceo bob iger about espn. i'm melissa lease, you're watching "fast money," on cnbc, first in business worldwide. maybe we should boycott starbucks. i don't know. seriously, i don't care.
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by the way, that's the end of that lease, but who cares? >> announcer: starbucks shareholders do. since then, shares are down 13%. what does the ceo thing? we'll hear from him. plus that's what dividend stocks have done this week. and a top technician says it's about to get much worse. what has him so bearish, when "fast money" returns. 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, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs.
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welcome back to "fast money." the trump rally continued today with the dow closing at a record high. financials and industrials were the biggest gainers. disney shares are lower. the call is under way and we'll bring you the headlines.
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starbucks' ceo howard schultz called out washington for being dysfunctional. what does he have to say about president-elect donald trump? first, we'll look at the consumer staples and utility etfs, as rates around the world continue to rise. the yield hit its highest level since january, and not just here in the u.s. the german bund, the japanese ten-year, saw a jump in yields. how much of a danger is it to these dividend-paying stocks? let's go off the charts with the always dangerous rich ross. >> danger is my middle name. as it pertains to the charts here, we discussed back in august that there was risk in safety and that the then burgeoning surge in interest rates would wreak havoc on the bond proxies, high yielding sectors. the big boy here, the ten-year
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yield, look at the big base of support we've now emerged from. we've taken out the neckline. clearly this is a decisive breakout here. let's zoom out and look at the weekly. and we can see just how far we go. here is the weekly chart of that ten-year. you see these double bottoms at 135, 135, 2012. that's the hundred week moving average, that's held going back to october of 2014. that gives us measured upside to 250. now, where is that damage being seen? bond proxies like the utilities. look, you went from the penthouse to the outhouse, up 22% to start the year. here is your 22. now you've got this breakdown from this very well-defined head and shoulders top. it's like the worst hand in poker. you see that breakdown, you're going lower. let me show you how far you go.
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here is the weekly on the utilities. this is your 150-week moving average. you saw the hundred-week and ten-year yields, not surprisingly you get 150. in the utes, you test that and you're looking at a reversal of trend, lower from bullish to bearish, and from bullish to bearish going the other way in terms of bond prices. yields go higher. another great group, staples, basically the great chart here. you can see this breakdown, once again, well-defined distributive top. it tells you there is still risk in what is perceived as safety. we're going the other way now, melissa. >> we invite rich over to the desk? do we have questions for mr. ross? >> i want to know how he got the middle name danger. >> rich, come on over. bring the chair, please. i feel like you've got questions because you've been an investors in utilities. >> when you look at utilities, you have to be out of utilities
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now, i agree with rich. and when you look at treasuries, though, when we have this massive stimulus plan, he's going to flood the market with debt, that's how he's going to pay for that. when you look at where rates go, are you thinking about that? you can't quantify how much it's going to cost for a $250 billion infrastructure deal. >> to your point, i'm not thinking about it in those terms. we're in an environment where you see the chart and you trade the chart. we see an impulsive move at an all-time low with a false breakdown on the backs of brexit. that's telling you you'll get this impulsive mood as you saw from 2012 to 2014. maybe it's best case, given the positive market reaction to the backup in yields, rather than the negative market reaction
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that some feared, some are sitting in these chairs right now. you could see meaningful downside in the utilities. watch those long term moving averages which have defined the trend for the last four to five years. >> we've had a tremendous move over the last several days. bond yields have been rising and prices have been falling for a couple of weeks now, about a month now. in the shorter term, for the folks at home who aren't in this trade, do they go out and short the bond market now? >> in terms of selling bond prices and in anticipating of higher yields, yes, i think that that trade remains intact. will it continue to go up in a straight line? no, of course not, you expect to see some consolidation. we're coming off a very low base. you're seeing your inflation expectations continue to surge. i think that this is a trade you want to play. keep in mind, you've been playing the opposite of this trade for the last five years in terms of the runup in these bond proxies. now you're going the other way.
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>> staples and utilities are shorts right now? >> they are shorts. there are some within the group that look better than others, clearly. buying the first downtick in a group that hasn't had one in the last three or four years is not the strong play as far as i'm concerned. you can be patient in terms of getting back in there. >> rich danger ross, thank you. >> he's unbelievable. he didn't anticipate you talking about danger. it's like flawless, seamless, the way he does that. >> he was offered the questions ahead of time. >> no, he wasn't. >> and the outhouse. >> here is one for you, from cy young to sayonara, i want somebody on twitter to tell me where that's from. >> you like it? >> no. i didn't think yields are going higher. if you start to see yields go higher, get out of these telecom names, they're too rich. look at the almost round trip that at&t has done from the beginning of the year when it was a $34.5 stock, to zenith.
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a news alert on third point, seema mody has the story. >> revealing new positions in big tech, apple of 2.5 million shares. alibaba, 2.6 million shares. he added to his positions in facebook and alphabet. third point also unveiling new positions in health care, st. jude, humana. back to you guys. >> thank you, seema mody. karen, what's your reaction on the tech side? i guess we don't know when the purchases happened. >> that's important to know, that it was as of september 30. quite a bit has happened since then. however, i don't think of him -- it's not like a .72 total trading or more oriented toward
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trading trading. >> we're learning from our executive producer max, he increased his positions in facebook as well as google. >> i agree. >> yeah, you know, everybody who has come on cnbc, including myself over the last 48 hours, has had a massive change of heart, really, and things have changed dramatically. so i would be very cautious, saying, oh, dan loeb got into apple or got into this, it could have been a month and a half ago, it could have been august. i would be cautious trading off this news. that being said, i like the google trade. >> you have to stay away interest tech right now. you'll have a chance to buy it, whether a month, two months. i don't think the time to buy it is now. still ahead, the presidential campaign brought about a war of words between howard schultz and donald trump. what does the starbucks ceo have to say now that america has voted? we'll hear from the man himself.
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and we'll look at shares of disney, the stock seeing a stunning reversal, now higher by 2%. what's driving that move? julia boorstin will be here to explain. much more "fast money" after this. attention: are you eligible for medicare? the medicare enrollment deadline is just a few weeks away. changes to medicare plans could impact your healthcare costs. are you getting all the benefits available to you? new plans are now available that could
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welcome back to "fast money." disney shares surging in the after hours session. julia boostrstin is at disney headquarters. >> the ceo is stressing the fact that the fiscal year has been the company's best in its history. next fiscal year disney will return to more modest growth, he says. eiger explaining the unexpected miss in analyses' earnings projections is largely due to an additional week in the prior fiscal year. >> fiscal '17 will be an anomaly in our growth trajectory. we fully expect to return to more robust growth inf fuiscal 8 and beyond. >> there were questions about
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declines at espn which was driven lower by subscriptions and advertising dollars. the long term growth looks good especially as disney strikes deals with digital bundles which he says will drop more millennial viewers in particular. he also said it's very important that disney work on its own distribution of its band tech streaming video company which will enable more targeted advertising. >> the other thing that espn has is the ability to take product out direct to consumer. and that's why we invested in band. that gives us an interesting opportunity to create new product, product that is more user friendly, therefore likely to gain more consumption. and it gives us an ability to mine data from that user consumption that can improve or
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advertising prospects and gives us an ability to tailor the product in a more customized way for those consumers. >> iger said they are definitely looking at different businesses that would enable them to go more directly to consumers which implies they would be interested in buying out the rest of band tech. he says it's still a great asset for espn and disney to have the rights to. we'll talk to bob iger on an interview coming up on cnbc asia and it will be on cnbc.com and tomorrow morning at squawk box. >> julia, they said the numbers on the subscribers for espn, they stand by them. are we getting clarity whether those numbers are on target?
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>> they haven't addressed that specific number. disney and espn told me when we were going through this whole controversy that the number was inaccurate. we haven't heard any conversation specifically about nielsen. it is notable that iger has been talking a lot about the business of digital tv distributors. those digital tv distributors are not included in the nielsen numbers. i'm sure we'll hear more about that. i'm certainly planning to ask him about it. he seems to be placing a lot of hope in all these new ways that content can get to consumers and have them pay for new types of bundles. >> julia, thank you, we look forward to that interview in just about an hour's time on cnbc asia. what do you think of disney? >> i've been in and out of disney. i'm not in it currently. i want to buy it back. i thought tilled gi would get a but let's not buy it on a hype day. i like the action after the
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bell, after earnings. i don't like that it's up now. i think i'll end up having to pay up for the stock. >> this was a miss on eps and revenue. there's a great movie, 1982, "the verdict," sidney lumet. >> paul newman. james mason played a lawyer and one of the lines was, after a situation happened where he should have followed, somebody said, he was brilliant, turned it all around. that's what iger just did on this call. this is a lousy quarter. it's lousy. espn sucks, people are fleeing espn faster than hillary supporters at the javits center last night when podesta came on the stage. >> i hate the extra week thing, as if that's a surprise. >> there's always the calendar. >> there's always the calendar. it ended july 2nd last year but that wasn't a secret they just revealed. i don't love that --
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>> as an excuse? >> as an excuse. i think iger is great, but i think -- >> you guys are skeptical based on the conference call. >> big bundle, medium bundle, they still earn more than anyone else. i would still buy it. alibaba shares falling despite posting 1 billion, i think that's u.s. dollars. there was no love for baba on the options today. mike has the details. >> even though it opened a little bit higher, obviously the stock was extremely weak. this morning we saw double the average daily options volume and the most active options were opening buyers of the weekly puts. ultimately 5500 of those traded hands. we saw the ultimate purchase of 2,000 by 360. it could be down by another 3% by tomorrow. those following the stock
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observed it was trading relatively weak each day. they didn't digest what otherwise looked like an impressive growth number very well. >> thanks, mike. alibaba president michael evans will be on the squawk tomorrow at 9:00 a.m. eastern time. we talked about u.s. plays and growth in the united states in china. >> if you want to be bearish and you say perhaps any protectionist type of policies will be negative for the chinese economy, maybe you say that's why baba's weak. i think that's a weak link. i'm not sure i would initiate a short just on that, on baba. china is settle a huge country with massive consumers and baba will still be a beneficiary of that. >> by the way, options action is tomorrow, 5:30 p.m. eastern time. i believe guy adami will be on it. >> i'll be on it. >> wow. >> i'm like a regular now. >> i don't know about regular. [ laughter ]
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a billionaire, big ackman, sitting with andrew sorkin, you won't believe what he said about the election. plus starbucks' shares down more than 13% since donald trump urged consumers to boycott the coffee giant. how is the ceo reacting to america's vote? you're watching "fast money" on cnbc, first in business worldwide. i'm here at the td ameritrade 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.
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enjoy your phone! you too. (inner monologue) all right, be cool. you got the amazing new iphone 7 on the house by switching to at&t... what??.... aand you got unlimited data because you ve directv?? okay, just a few more steps... door! it's cool get the iphone 7 on us and unlimited data when you switch to at&t and have directv.
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did you read about starbucks? no more merry christmas on starbucks. no more. [ audience booing ] i wouldn't buy it. hey, look, i'm speaking against myself. i have one of most successful starbucks in trump tower. maybe we should boycott starbucks. i don't know. seriously. i don't care. by the way, that's the end of that lease. but who cares? >> that was president-elect donald trump on the campaign trail one year ago. since that statement, shares of starbucks have not fared well, dropping more than 13%. despite that, starbucks' chairman and ceo howard schultz spoke with cramer today and
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expressed optimism for the future during a trump presidency. >> the fact that it's over, whether we like the result or not, i think the president and hillary clinton did a wonderful job of demonstrating real humility and recognize that inge need to support president trump and as a nation we need to come together. i am optimistic. we have a lot of work to do. my concern right now is to ensure the fact that there is a lot less divisiveness and vitriolic behavior and there is a level of sincerity and people coming together with compassion and empathy for everyone. >> so trump speaks, starbucks cools off. is this a coincidence? >> no. i mean, i don't think so. >> no, it's not a coincidence? really? >> you think people boycotted starbucks? >> it is a coincidence. >> they're not related. >> oh, i'm sorry. that's what i meant. they're not related. i mean, starbucks has its own issue. i don't think they're related. you don't want to bet against
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howard schultz, he's one of the all time great ceos. you don't want to come between somebody and their cup of coffee in the morning. don't bet against starbucks. >> we were taking it from december of 2015. you take a look at starbucks over the past couple of days and it has not kept pace with the gains we've seen in the markets either. and by the way, schultz said in july and then in the last earnings call that election uncertainty was a problem. >> now you have certainty. >> now there's certainty. >> they better crush it next quarter. the last three or four quarters, they haven't crushed it. and valuation starts to matter, it matters quick. that's what's happened. >> i do wonder what the cups will be. >> they won't be merry christmas, is that what you mean? they'll never be that. >> i was going to say, we've seen the cups, they're out. the green cups with little people on them, the unity cups. >> post-thanksgiving?
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we don't have another cup? >> when you say happy holidays, one of the holidays is christmas. i don't know why it's a major faux pas to say merry christmas. that has resonated with a lot of people in america. >> catch the entire interview with howard schultz tonight on "mad money." jim will be speaking with johnson & johnson ceo alex gorski. veterans day is tomorrow, 6:00 p.m. eastern time. we've got our news alert about bill ackman. kate? >> hey there, melissa, bill ackman, who originally wanted former mayor mike bloomberg for president, said he woke up on wednesday morning with the surprise upset victory bullish on donald trump and his impacts on the markets. >> i woke up in the morning. >> i know, on wednesday morning you woke up in the morning. >> my concern about donald trump was volatility. my concern was, who knows what he's going to do? then i woke up and said, this guy just became president of the
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united states. this is going to be his legacy. does he want to screw it up? no. he wants to be the greatest president the country has ever had. >> among other things bill ackman said was that corporate tax reform which trump said he would like to do is one of the single biggest things that can help america from a growth perspective. in addition to donald trump's own ambition. in his conversation with our andrew sorkin, he talked about chipotle, which he likes, he says he's having a constructive dialogue with the company. ackman had separately earlier today popped the stock. he talked about about herbalife, he things everyone should watch a recent john oliver tape on the company. he says valeant was an extraordinary mistake for pershing square, contributing dramatically to its downside to date. he says judge pershing square not by valeant.
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sherry red stone in rare public comments sat down with andrew earlier, she talked about the possible recombination of viacom and cbs which split up in 2006 as something which might be a good idea. >> i think it makes sense to explore whether or not these companies can come up with a way to get together. if they can't, they're two strong companies and they will both survive and they'll both be great. >> it wasn't clear when that might start, melissa. very interesting rare public comments by shari redstone on the matter. >> kelly, thanks very much. karen, how do you interpret him saying valeant was an extraordinary mistake, especially after a quarter when was horrible on many fronts, lowered guidance. it lost i think 17% or something like that on the day. >> yeah, i mean, and it's hardly back much at all even after the trump victory. i think he's just trying to -- it was a mistake, clearly, whenever you have something that big go down that much, that's a
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mistake. but i think he's also trying to minimize its position in the pershing ecosystem. if you look on his holdings, it's way down the list, not because he sold any, because it's worth less. he's trying to do other things with chipotle. >> i think chipotle is a distraction, that's what he's doing with that. i would not be in valeant at all. ahead, the one megacap tech stock that our own brian kelly says is a screaming buy. he'll give you the name in our final trade when "fast money" returns.
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time for the final trade. steve grasso. >> the consensus trade was to sell, that didn't happen. i bought it. >> karen? >> we talked about nirvana. time to take a little nirvana off the table, bank of america. >> so let's say you made some money on those financials.
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you take them off, put them in facebook. it's down. i think it goes up. >> great job by the twitter followers, love you folks out there. honeywell will play catch-up in this industrial revolution. >> see you back tomorrow. for m. meantime, "mad money" with jam cramer starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach you.

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