tv Fast Money CNBC November 14, 2016 5:00pm-6:01pm EST
happen? >> term limits for? >> congress. >> no. i think it's a great mistake. i think it's a great attack on the people. i think the people that i represented for 32 years were smart enough to know whether they were happy with me or not. >> congressman frank, thank you for joining us. eli and michael, thank you guys as well. we're done here and "fast money" begins right now. >> "fast money" starts right now live from the nasdaq markets overlooking new york city's time square. tonight on "fast" famed investor mohammed el-erian says the market is missing a major buying opportunity and he'll be here to explain. don't look now but mall stocks surging as the trump trade rages on. we've got the names and how you can profit now. later, financials continue to be money in the bank. first we start off with the market in a bit of a strong phenomenon. the dow making a new record high as the trump rally continues, but it may not matter to your
portfolio because the most popular and widely owned stocks in america are getting pummeled. we're talking about amazon, facebook, google, apple, all losing ground again today after a red week. last week those stocks have shed a combined $132 billion in market cap since the election. so at what point do these names become a buy or are they simply a no-touch right now. guy? >> steve talked about this the last week, week and a half, about the great rotation and you're obviously seeing it now. when amazon reported, we talked about the potential to trade down to $700. if you looked at the end of last year it traded up to $700 a number of times before breaking lower at the beginning of 2016, so past resistance becomes support. you're going to find now traded down at 710 today. i thought that was going to correlate with an s&p trading down to 2025, and we did see that the night of the election. here we are within a whisper of an all-time high. to me amazon out of all the ones
that have flushed might be the most interesting to trade on the long side. >> and you have continued to buy tech? >> i have continued to buy those that i own, google and facebook. today bought some more google. now full on google so i hope the opportunity is now over. but i think that -- i know -- i understand completely the rotation sentiment is not here, it's a reversion to the mean. all of that having been said, on google first, google is not expensive here and it's still a great company and it's still growing. all of the things that benefit the market, better tax structure, potential repatriation of money, all of those are still positive for google and it's a great business. could it trade lower? of course it could, but i think buying it here, as i did friday, as i did thursday, ultimately will work out fine. when you back out the cash now, the multiples, sub20 pe. >> these stocks, facebook, google, amazon is a layup here. if you look at it over the past eight years and you're talking a little bit about this
downstairsthey're before ebitda multiple is 12 to 25. it's trading below 15. so you look at this company and say at these levels i would be backing up the truck and buying -- look, if you're a short-term trader you're looking to clip points here and there, of course you've got to evaluate. but if you're a long-term investor, facebook, amazon, google, these are names that you need to own. this is a rotation trade, people. they are moving into sectors that have been beaten down. it may last a little bit longer but it will not last forever. >> those three stocks david just mentioned are oversold. netflix is not oversold yet. let's look at both sides of the story. xlf, trading at $31. today, trading at $22ish. you have to believe that all of the regulation is going to be pulled out to get back to that level. does everyone on this desk believe all the regulation will get pulled out? >> why can't we just go $4
higher or $3 higher? >> i'm saying $4 is possible. but $30, i don't think is possible. so you're playing for middle 20s. huge move. still fine. but buying facebook, buying amazon, buying google, bang 4 buck is probably more. remember what jeff bezos can do. once earnings comes out, he can turn on that spigot again and really show trump. >> you often say price is truth. what does this tell you, though, that tech -- these particular tech stocks can go down every single day since the election. at what point do you have to say i have to trade the market that i have, even though i believe these are good, solid companies? >> think about the huge story this would be if the market was trading commensurate with the moves we've seen in amazon and facebook. it would be a huge story, right? but it's flying under the radar screen because the s&p is within a whisper of an all-time high. i think it is a major story and absolutely something you have to take into consideration. is the s&p going to follow these
stocks or are these stocks going to balance the current level. >> that's the question. >> that's the rub. at certain levels amazon specifically is going to bounce. but we'll have mohammed el-erani on. if the selloff we've seen in these four names specifically could accelerate in a major way. you have to define your risk. >> you think they would accelerate rather than outperform the s&p. >> well, if the market starts to break down, i think the potential for a move lower on these things -- a further move lower could be exacerbated. >> i think they do outperform. i think they have already taken it on the chin and it's a year-end bet. >> if the market now starts to roll off a cliff, the overall, which i don't think is going to happen. >> so we revert back to the prior trends prior to the election. >> the amazons, facebooks and google will be hurt less than the overall market. but it is time to start legging in if you do not have a position
in those company. >> they are at levels where you should be buying these stocks, no question. the question is if the biotape continues to work and the financials trade continues to work and that's a big if, right? what are people going to sell when they're exhausted selling these highly crowded technology names? does it become more broad based? i don't know what the answer is right now, but i would say i do think that these names right here from a valuation basis are a buy. >> we've got some breaking news here. >> reporter: the s.e.c. just putting out a statement now saying mary jo white, the s.e.c. commissioner, will be leaving at the end of the obama administration. now, this is not unexpected. typically you do get a changeover at the top of the s.e.c. between administrations, so mary jo white will be leaving at the end of january when the obama administration also leaves town and that clears the way for donald trump to appoint somebody of his own at the s.e.c. and there are going to be a lot of names speculated about here but i can't tell you that any one of them has the lead for this slot. >> eamon, what would you say her
number one issue was in terms of championing a particular issue? >> clearly, the whole implementation of dodd-frank we were just talking about in the earlier hour is how dodd-frank rolled out has been the biggest challenge of mary jo white's tenure. now you're seeing an administration coming into power with very much of a deregulatory bent, so the question is will the challenge for the next chair of the s.e.c. be to roll back large portions or all of dodd-frank. that seems to be something that's in the cards here in washington. >> eamon, thank you. that is something that a lot of the financials have been trading on. mary jo is out. president-elect trump is free to get his own head. >> rudy giuliani popped into high head. >> dan gallagher is in private sector now, that's going to be a name on the short list. let's get back to the markets here. our next guest says a sell-off
in tech is creating a major buying opportunity. mohammed el-erian joins u now. great to see you. >> thank you for having me. >> does that mean that tech will do a catch-up to the overall markets? what happens with technology if you're saying buy the dips in relationship to the rest of the markets? >> so i agree with the discussion so far that the extent of the differentiation that we've seen is too large. yes, i can explain it in terms of the specific proposals that the president-elect has put forward, but not to that extent. so if you compare what's happened to banks on the one hand and what's happened to technology on the other, it's simply too far. there's a good reason for it technically, but i, like you, will start fading. i think there's relative value trading opportunities here as there are outside these sectors as well. >> so if you are to believe that the dips in tech should be bought and perhaps the people are using this money from
technology to go into other sectors, are there then other sectors that you think are overbought? >> so i think banks are one of them, yes. this is a better environment for them with yields going up, with regulation probably coming down. but not to that extent. also look what's happening in the emerging world. we're having a highly differentiated reaction here in the u.s. and we're having totally indiscriminate reaction over there that's causing opportunity. so simply put, i would start fading a lot of the recent moves, but do so within the context of an overall risk budget that doesn't go up too much. >> it's david. quick question. just with the larger banks, donald trump is not a fan of big banks. i don't think he's used a bank since 1993. he's gotten his lending from overseas or from general electric. so i look at him and say bigger banks versus the regional banks. do you think the regional banks outperform? >> i think there's a point there
mainly what's happened to the big banks i thi is excessive. again, i understand the driving forces, but it's the extent of the move that is striking and we know why. but yes, there's value in there too. i just would be careful about piling into things that have moved a lot very fast. and look to other areas where the investment -- investors' reaction has been totally y indiscriminate. >> so do you think the dollar should fade wands are a buying opportunity? does it apply to that too? do you just extrapolate across the spectrum? >> so far i was talking to risk assets, be it equity versus high yield, be it the banks versus technology, be it the u.s. dow versus emerging markets. that so far. the dollar i would differentiate. i think the dollar will continue to strengthen against the majors, but i think that the weakening of the em currencies
has been excessive and i think there is value there. it's bumpy but there will be value there. bonds, i'd be very careful. we are seeing a significant repricing of the macroeconomic prospects for the united states, higher growth, high inflation. we are going to see some further technical dislocation. yes, there's a limit to how far they can go. the liability-driven investment is going to come in, but i would be very careful in terms of going long the government bond market at this point. >> we'll leave it there. thanks for joining us. always good to see you. >> thank you. >> mohammed el-erian. what do you think? >> be careful piling onto things that have moved significantly the last couple of weeks. for example, look at caterpillar's move over -- well, over the course of the year, look at it since the election. the stock is up 40% year over year, made a 52-week high today. they beat on eps okay. missed badly on revenue. guided lower for the rest of next year, i believe.
the stock is trading close to 30 times forward earnings. to buy caterpillar, you've got to believe every hole dug in the world over the next five years is going to have a cat tractor on the back of it. >> let me just go back to you because you bought the day karen was selling some uri, united rental it's still go up -- >> by the way, her sale was a great sale. it's right around the level where she sold it. >> not every single hole will be filled with a piece of equipment rented at uri. >> sure. when this positioning trade starts to really become long in the tooth, when uri starts to fade and starts to have lower closes, that's when i know it's out of momentum. then you would rotate back into -- i owned eem as well. i probably load up more on eem when i sell my uri. only because then it becomes to me that that infrastructure play is out and the fears we saw on eem are probably overblown.
>> to the downside you're comfortable to say buy certain names in blue chip technology even though they continue to go down. on the upside you want to see them stall out. you don't want to see technology -- >> on the upside, i think people were still caught off guard because they don't know the specifics of this infrastructure play. hillary clinton's was $250 billion. trump's is probably going to be double that. that's a huge number for uri. >> what do we do today. >> the amazons, took a look at it. the financials, the larger cap banks did take some profits in that and i do see real buying in the larger banks than biotech. i see a real rally. i do think there's going to be weakness in biotech, the larger banks pull back a little bit so i do agree. the regional banks, you buy any kind of weakness until year end and they'll outperform. >> the day after the election we said the plush in kansas city southern was a flush to be bought. we explained the reasons why, obviously their huge exposure in
mexico. i think the stock is up almost 4% today and they have an event with raymond james this wednesday. the low has been put in quite some time. mr. trump will be far more conciliatory towards mexico than he was when he was running for president, which to me is bullish for names like ksu that have been blujonned the last couple of weeks. coming up, you will not believe which stock is surging on the trump win. it's sure to drive the liberals even crazier. don't look now, but mall stocks are surging on the hopes of a tax cut. the names and how you can profit. later, the banks continuing their incredible run today but two stocks just had their worst day in five months. we'll tell you what they are and whether they're worth the buy when "fast money" returns.
the space. do you buy that? >> well, i'm long it so i guess i do. that's not the only reason. there's so many reasons. one, i think the space was so cheap going into this. as part of this big rotation to finds an area that's really cheap like this, it's great. i think the consumer was always healthy but was sort of concerned about the election and pulled back and so now they're feeling a little more comfortable. there's certainty either way, whether you like the outcome or not. gas prices may be coming down a little bit. we've seen oil tick lower and lower, that's another good thing. people are employed. i think that it's a nice move, but i still think there's room to run because these were way, way undervalued before. >> you mentioned the comps were working in their favor too. >> they have a comp tailwind if you will. next quarter the comps will be a lot easier which is going to help the setup. they have done a really good job, especially the mall-based stores like macy's and nordstrom, they have done a really good job cleaning their inventory issues up. i'd be very cautious on whether or not these numbers are going
to actually improve dramatically, so i think they're probably going to get to a point where they may be a little top heavy. >> would you rather? >> i'm going to think about it. >> amazon or macy's? >> amazon. at these levels, amazon i think. so yes, amazon. and quickly about nordstrom's, karen mentioned, last quarter was good but this stock went from 35 to 60 almost in a straight line. i had would say 19 1/2 to 20 times forward earnings. if you're not taking profits at 60 bucks, i don't know what you're looking for. >> the reason why in retail, the reason why these stocks are outperforming is money had to come out of amazon, you talk about that repositioning trade, it's a retail specific trade. came out of amazon, it had to go someplace specific to retail. that's why the stocks rallied. let's get some unlikely winners and losers from the election. "the new york times" rallying more than 14% since last tuesday. this even as donald trump called the newspaper, quote, dishonest and blasts the organization for its coverage of the presidential
race. then there are the gun stocks getting a big boost today, but still down sharply in the past week. smith & wesson falling more than 14% while stern ruger is down 23%. >> "the new york times" is fundamentally flawed. i don't like the setup here. it's a name i'd stay away from. they sold more papers during the election, i hope they did, so sell "the new york times." as far as the gun stocks are concerned, if you look at the permits pulled in gun stocks over the obama administration, it's pretty sinteresting. people buy on fear. >> fear of gun regulations being tighter or getting harder to get a gun. >> now you say what's the rush? there's no real rush to step out and accelerate that purchase, so i look at smith & wesson, any of these names, i wouldn't be chasing them. these things trade on fear, not on necessarily people rushing out when they don't need to. >> smith & wesson, which is changing its name announced shortly before the election to american outdoor brands because of the vast array of things
other than guns apparently that they sell. >> i love that bleeding sarcasm. >> i scroll through ten pages and i only got guns. >> think about when that came out. that came out preelection. so the thought is sort of like massage it a little bit and make ourselves look a lot more wholesome. >> because they thought she was going to win the election and they needed to do it before she got elected than after. >> now they want to go back to smith & wesson. >> they probably do. we have some breaking news on the dakota access pipeline. >> the news is that the army corps of engineers is saying that they're going to delay their decision on the dakota access pipeline, whether to green light the project or not. they say that more discussions are needed, according to a government notice. they also say that they are encouraging the standing rock sioux tribe to weigh in and provide input. the back story is energy transfer partners is trying to put together an approximately
1200-mile pipeline that connects the shale formations in north dakota where they do a lot of fracking for oil and gas, to connect it to parts of illinois. right now they'll have to use somy. s from the army corps of engineers. they have not given them and that's the latest development on that front. melissa, back to you. >> of course this on a day when there were a lot of protesters out there, whether it be environmentalists or activists out there. >> i think you have to trade this all off macro, it's got to be crude. crude specific. xle, large integrated names. when you look at the whole complex, it hinges on opec. thpace rallied into the idea that opec was going to cut production. then it sold off because they're not going to be biting regardless of what they're going to do. saudis really want to cut production. they're trying to get a deal done. i think regardless, bearish crude. >> obx up 10.5% today, rallied from 38, trading $50 right now. i don't think that's bullish crude oil.
so all the supply that's coming on the glut of oil to me is bearish. way to expensive. missed the rally in bank stocks? fear not because we have an under the radar way to play the surge of financials. i'm melissa lee, you're watching "fast money. " in the meantime here's what else is coming up. >> china. >> china, china, china, china, china now. >> and since trump's win, a number of chinese stocks have tumbled. but we'll tell you why now could be a great buying opportunity. plus -- >> don't leave home without it. >> and that's what investors are saying about shares of american express, which are surging, as rival visa and mastercard tumble. so what's behind the move? we'll explain when "fast money" returns. i laugh, i sneeze...
there goes my sensitive bladder. sound familiar? then you'll love this. incredible protection in a pad this thin. i didn't think it would work, but it does. it's called always discreet watch this. this super absorbent core turns liquid to gel, for incredible protection that's surprisingly thin. so i know i'm wearing it, but no one else will. always discreet for bladder leaks
hey, jesse. who are you? i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at voya.com. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
welcome back to "fast money." here's what's coming up in the second half of the show. emerging markets are in a freefall and there's one group of stocks in particular weighing on the space. we'll tell you how bad some see it getting. plus it's the one sector surging after the oracle of omaha doubled down on key stocks. we'll give you the names that has warren buffett so excited. we start off with the financials continuing their trump rally up more than 14% year to date and the best performing sector since the election. breaking down the move is a man who is looking to outperform himself, cnbc's dom chu. >> all right. well, there are, like you said, some divergences happening in different parts of the market. the third biggest sector in the s&p 500, far away the best performing sector this past week. while large cap banks and insurance companies have been
going gang busters, it's the smaller, more regionally focused banks that are real standouts. in the past week the financial sector spyder has gained 11.5% in the past week. that's an awesome gain in a six-day winning streak. no doubt stocks in general would react more generally at attempts at a normalization in interest rates. bigger banks could be bigger beneficiaries. you've got shorter term rates in place while longer term rates tick higher. that steeper yield curve helpful for bank profit margins. the kre has joined 15% versus the xlf in that one-week span. bigger names like regions financial, zion have all done better. and for those stats junkies out there, guys, melissa, the s&p
500 financial sector trading four standard deviations among its 50-day average price, which means the move is pretty extended to the upside, the most it's been since at least 1989. when does the bank trade pull back towards more normal levels, melissa? that's the big question for a lot of traders. >> thank you, dom. should you stick with these banks? four standard deviations, rich, that sounds pretty extreme. >> too high is not a technical term, at least as far as technical analysis is concerned. big bank, small bank, i work like a bank. i don't think like a bank. i'll show you how to make money like a bank. we'll look at the bkx, kbw bank index. this is the most overbought this index has been in 20 years. the last time we were this overbought, over the next 12 months the bank stocks were up 135%, so that's a good thing and so is this bullish breakout from really a 14-month base of
support. first an obvious way to play this, we're going to look at jpmorgan chase. you have a breakout from a multi-year trading range here. once again, this is the most that this stock has been overbought in the last ten years. so what i would expect is some consolidation here, but then an extension of this advance based upon this big base that's formed here. here's another sort of obvious way to play it. bank of america here. look at this, this is a longer term monthly chart here. now, you can see this is a breakout from really a sen-year base of support, almost a cup and handle in there. drink it down, it goes down smooth. now, this base, this is going to get you in upside in bank of america. you have leverage on the cost side, on the valuation side, obviously higher interest rates. just for the big finish, we're going to look at a sneaky little play here. now, the russell 2000 itself is up 9% month to date. that's telling you this market is about u.s. centric risk. that's what you see in the russell 2000.
bump it up a notch, russell 2000 value, 42% weighting in financials so you're levered to the strong dollar, you're levered to the higher interest rates, you're levered to the u.s. economy. all of that is in this one little chart here. once again you've had a big move off the bottom, almost 50%. so i would expect some consolidation. when we do get that consolidation, perhaps a modest pullback to ease those overbought conditions. russell value is a group you want to be buying. >> what do you think, gang? shall we invite him over or no? >> he's a stud. >> all right, come on, rich ross, come on over. we've got some questions for you. ashley will bring in the chair. thank you, ashley. >> thank you, ashley. and thank you. >> since you have a bromance with him, you can ask him a question. >> i get all those things, four standard deviations we talked about, but tangible book value was the thing back in the day. karen can speak far more intelligently about this than me -- >> than i.
>> see, there you go. that's my point. jpmorgan, their tangible book is 55 and trading at $80 now. at what point is the stock price too high compared to tangible book value? >> well, it's a little bit outside of my area of expertise, but what i would like to focus on here, think about positioning. think about the trades that have worked or not worked over the past five years. this sort of one-way ride on your bond proxieproxies. now we're going the other way with that trade. we know from our hedge fund surveys that financials are still the least favored group of all the sectors, so that positioning alone is a very powerful force. so not to diminish the fundamentals or valuation in any way, shape or form, but there's a lot of room here. when you take those powerful technical breakouts with a group that's underowned with a macro kicker like interest rates that have another basis for upside,
that tells me there's room to grow. >> so the short-term moves in your opinion, can they last a lot longer given the fact people were hedged backwards, had to come in, reverse that hedging and they came in and bought these names up because they're so underexposed to them. >> it's always difficult to dance through the raindrops, especially when we've seen the volatility we've seen the past week, the magnitude of the move. a lot of those charts are a straight line higher which doesn't give you that comfortable entry point. with one month to go in the year and that strong seasonality behind you, you might not get that strong entry point. >> i look at fundamentals and book value. so when i see a chart like yours and see it completely break through on the upside, that to me is a stock where i can't get comfortable at all with the fundamentals. do you feel that and when you look at the technical analysis, hey, we're four standard deviations away, how do you put some context to where these are trading? >> that's always a difficult place, whether you're a technician or fundamental investor like yourself.
so i think what you do is you sort of work your way into the position. you buy a little bit. not everything is a binary decision where we push all in or say, oh, i missed it. get a little snack on the way up. if it pulls back, the worse thing that happens is you buy something some a little cheaper. once again these are longer term charts. so in the short term we've gone vertical but long-term breakouts, yes, overbought but not overdone in the longer term. rich ross, isi. grasso, where are you in financials right now? >> can they go higher? of course. they don't ring the bell when the trade is over, but for me i think we're getting really long in the tooth here and that chart screams like it's overextended to me. i'd rather be fading and buying eem where no one is thinking eem is going to rally. i'd rather be a seller of financials, buyer of eem or buy those beaten up tech stocks. i'd rather do the reverse. >> did you see what he did?
he did it with the self would you rather. >> i knew there was a good chance you weren't going to ask me. >> i agree that we are possibly too far too fast. again, my view is you buy the pullback in these regional banks. i think that's the real run into year end. >> where does tangible book fit in anymore? >> i guess it doesn't. bank of america has been trading south of tangible book, it's just over 17. it's now well above that. jpmorgan of the big three is the only one that has been for a long time consistently over book, so to me i sold some upside calls in bank of america, i'll probably look to sell some more. you know, i'm a hedge fund so it's hedging my bets somewhat, but you take in some premium and you can buy it back, buy it back cheaper if it comes in. >> there are a couple of moves that sort of got us wondering, wondering. >> visa and mastercard real
underperformers today within this fortress group of financials. what's going on? >> maybe it's just a rotation out of those names we've been tough on so long. people need to put money to work elsewhere in financials. that's it. i don't see a real fundamental change in their business. to karen's point here, you know, now jpmorgan is almost 50%ish, give or take, above tangible -- at some point that matters, i think. maybe i'm wrong, i don't know. but they have gotten ahead of themselves. u.s. bancorp has been the way to play it. for most of the year traders of fleeing emerging markets and there's one group in particular getting hit the hardest. later donald trump called nasa one of the most important agencies in america during this campaign trail, so what will a trump presidency hold for the future of space exploration and which stocks could stand to benefit the most? we're joined by none other than buzz aldrin, the second man to walk on the man, when "fast money" returns.
maybe something else? guy. >> well, i think it might be something else. i mean mr. trump has talked about china in not so favorable terms now for the last 18 months so i think that's a little bit of it as well. i think this would be a huge story again if our broader market and the banks weren't rallying like they were we would be leading with a story like this. chinese stocks have been getting a bludgeon the last week, week and a half. it is a big story but it's overshadowed bu the -- by the things we talked about at the beginning of the show. it leads me to believe that maybe there's something else going on. maybe there's skeletons in the closet that people have brought up. >> so there's a deeper issue. >> he's brought that up a number of times. >> the issue about these particular stocks is these are primarily domestically oriented chinese companies. there's not international trading implications. ali baba sells its goods primarily to people in china and not in the united states.
>> agreed. we have seen the shoot first, ask questions later in a number of different sectors over the last few years. >> big liquid names, people taking profits. a lot of these guys own the same names. so it's really just taking off the money of the table in that sector and putting it in a sector that would have outperformance and that's the financials right now is really the place to be. >> it's not just chinese stocks that are struggling. emerging markets taking a huge hit, down more than 8% since the election last tuesday. options traders think an even bigger drop is ahead. mike joins us with the latest. >> we did see well above average options volume. put volume outpaced call volume by 3-1. the january put spread spent about 50 cents for that. it's nice that you can get that 4-1 payoff if you want to press a bearish bet and that's exactly what they appear to be doing
here, betting that eem could drop another 12% by january expiration, which is about two months from now. >> all right. grass or grasso, you said you wanted to go in eem. >> i'm already in eem. i think that's your point about these trade negotiations or renegotiations. i think they would take a hell of a lot longer than we think. it's not like a tax cut. you start to reap the benefits of a tax cut almost immediately. eem, to guy's point, shoot first, ask questions later. i think it's overdone. >> in that vein, if you like ksu, then you might like mexico. >> i think that's a better way to play it given the fact that you have sort of a handle on what the company is all about. that's a good question. should have asked mike, how did the interview go today? he looks fantastic. who did you interview with today, big man? >> just with you guys today. i mean i'm trying to look for
all of y'all. >> thanks, mike. mike coe in austin. we've got a news alert here on some of the biggest investors. kate. >> melissa, interesting news out of berkshire hath away where investors and possibly warren buffett himself or perhaps one of his stock-picking lieutenants have loaded up on major airline stocks, starting with a huge position in american airlines up nearly 22 million shares. berkshire also bought delta and united airlines in size during the quarter as well as and this was breaking news from our own becky quick, a position in southwest more recently than that. buffett wouldn't explain the reasoning behind the move, which is notable in terms of his long-time criticism of the sector. david tepper purchased over 4 million shares of bank of america as well as big positions in apple, facebook and yahoo!. a number of major tech names there. he also bought 2.5 million spdr
puts. it is much larger than his 22,000 ownership in the spdr itself. he hasn't returned my message to figure out what that means in the context of his portfolio. he bought delta but sold 3 million shares of southwest leaving just a stub position in that airline behind. speaking of financials, the big investor activity has been all over the shop this cycle. even as david tepper bought b of a along with citigroup and citizens financial, bruce burke wits sold more than 11 shares. more capital, sold millions of shares and pared back positions in citigroup and so it's a crazy quilt of financials moves. i want to make the caveat, this is as of september 30th. we don't really know what's
happened in the last six weeks. >> kate, thank you. karen, how do you interpret some of these moves? >> the thing kate brought up is really important. this is six weeks ago. this has been the most eventful six weeks for financials since '08. so you have to take it with a grain of salt. they're smart investors. they have been in and out for a while. i think that we'll see next 13-f, it will be interesting to see what people did during this massive run-up, whether they stick with it for a longer run. for me, we're going to take a little money off the table. >> transport is doing well overall, so these positions in airline stocks -- >> look at the move in spirit airlines over the last month, month and a half. it was a $38 stock middle of september. closed up $53.5 today. so that's a name we talked about over the summer. if by some miracle you've been in it, i think you have to be taking profits now. >> i agree with the spirit, take profits here as well.
i think it's maybe a little bit early. i don't really think the airlines will have that big of a run in general so i may back off the airline trade a little bit. i'd be curious whether or not warren buffett bought wells fargo -- >> i don't think he can. >> but the airlines, i'd be a little cautious here. i don't know if i'd be chasing or stepping in here. >> i think you have to treated airlines like retail stocks. i'll take spirit and the other side of you guys only for the one side that it's been the outperformer in the group. when people rush for them, they buy this one first. when it goes down, it goes down less than others and so outperforms on a relative basis. look at crude. if i believe crude is coming in still, i still have to be bullish airlines as well. still ahead, famed astronaut buzz aldrin joins us with an inside look at what the space program could look like under a trump presidency. you're watching "fast money" on cnbc, first in business worldwide. [pony neighing] what? hey gary.
oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade. this car is traveling over 200 miles per hour.
to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.
it appears bigger. the moon is a place our next guest knows well. buzz aldrin was the second man to walk on the moon back in 1969. he also took the world's first selfie in space during the gemini 12 mission. we are honored to have buzz aldrin back on "fast money. " buzz, we'll talk about the moon. will we go back under a trump administration? will he be good for space exploration? >> i think that certainly he will be very good. we have to reduce some costs, expenses that maybe are not as wise as they maybe could be, and yes, i think mars is the objective. as a matter of fact, my program is called "cycling pathways to mars." but it involves low earth orbit cycler and transferred to lunar
orbit to help bring in international partners at minimum expense to us, but great training in procedures activities at the moon that we need to know how to do at mars. >> so going to mars, i mean for some, it's going to be a notch on their belts when you take a look at some of the billionaire private citizens who are engaged in the race for space. but from a scientific standpoint, buzz, can you walk us through and our viewers the importance of going to mars. it's not just about getting there and proving that we can do it, but it's also about finding perhaps new materials or new substances that can be used here on earth. >> well, endeavors that are done with public money are being done to inspire the public. we explore or we expire.
exploration, creativity, curiosity, it's in our blood. we want to see what's on the other side of the mountain. it's been that way and it will be that way. we have begun our explorations above the atmosphere into orbit around earth, and we've been brief visits to our close neighbor, the moon. and now i think it is time for us to join the international partners by helping them do what we did and at the same time we can help them at the moon landing and the structures that they will live in. we can design them, they'll build them, they land them, we
put them together. we help build the landers and the refuelling of the landers on the surface of the moon is very important for us to be able to do from orbit around the moon so that we will know how to do that at mars. >> right. >> and that gives us great savings. >> buzz, it's an honor to have you back on "fast money." we hope you'll visit us again. >> of course. any time. >> thank you, buzz aldrin, a legend in space exploration. >> he's like 80 and he's just ripped. >> he's unbelievable. >> what stocks benefit when we land on mars? >> the defense stocks, listen, i don't know the specific one, but look at the group specifically since trump has been elected. we talked about the potential for these stocks to take off, no pun intended. lockheed martin goes higher from here. >> general dynamics is the easy
trade if you want to invest in defense stocks. lockheed martin, general dynamics. >> it's a bit of a stretch but elon musk could be the front-runner. if that happens, the elon musk aura will be in full force. >> so there's a benefit to his other companies? >> yes, yes. >> karen stole my pick. >> i did? >> i thought you might say it would be negative for tesla. >> no, i think it would be very interesting for him. i think curiosity is very different than profitability. you have to prove this to be profitable, but tesla, they could be on the forefront of something like this. i could see musk doing that. up next, guy says there's one stock that will have investors cruising all over the world. find out what it is when "fast money" comes right back.
the value of capital is to create, not just wealth, but things that matter. morgan stanley time for the final trade. grasso. >> take a look at some of these deal stocks, i think they're under radar. specifically time warner. look for a bounce here. >> given the price action valuation i can't pass it up, amazon. i'd be buying it here. >> chairwoman. >> jpmorgan, a huge run. i don't want to sell the stock because i don't want to have taxes. at least wait until next year so sell some upside calls. >> guy. >> we've got the birmingham southern men's basketball
team -- they're a bunch of hoodlums. royal caribbean, rcl, breaking out. we talked about this. >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00. meantime "mad money" starts right now. "mad money" with jim 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. so call me at 1-800-743-cnbc or tweet me @jimcramer. one, two, three, four, i smell a trade war. oh, that's what i think this market's become all about as it dawns on people that while trump's victory has produced b