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tv   Fast Money  CNBC  December 22, 2016 5:00pm-6:01pm EST

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to a micromarket which is all about cyclical forces. >> i just want to keep drawing on this. i meant to write "thanks." it was going to be -- >> in greek? >> i don't even know how to say it in greek. mike, thank you, as always, merry christmas. that does it for "closing bell." "fast money" begins now. overlooking new york city's times square, i'm melissa lee. tonight on "fast," it was the first back to back days of losses for the dow in six weeks. with the trump rally on hold for now, what can you buy? a top strategist who correctly defied the brexit has dips. we'll give you the names of stocks surging in 2017 and how to play it. later, custom content for disney's social platform, bad
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news for twitter. we start off with the retail getting dragged down. trump euphoria, colder weather, it should ben nirvana for these guys. until we get tax clarity, is this group suddenly a no-touch, guy? >> i think it is. we get a lot wrong, this one i think we all got collectively ride. nordstrom's, for example, this stock had a tremendous run up to $60 in november. we talked about it and said, the run in nordstrom's, too much, too fast, all the shorts have gotten forward. at 20 times forward earnings, there's no way the stock should be there. we stayeaid, look for a pull ba. all this summer, 48 1/2. magically, here we are. i don't think you can go out and buy it on this level, but at
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least valuation-wise it makes a little more sense than it did even two weeks ago. >> you had two things today that hit these retailers. you had personal income come out, which was essentially flat. it's been decelerating since 2014. you also had an mpd group report out saying holiday sales were running 4% below last year. so the combination of those two things really hit retail. what i thought was most interesting is they said even online sales. what we've all talked about here is amazon is eating everyone's lunch, it's all going online. that has been the narrative in the market. this challenges that. i would say if you see amazon close below 750 on a weekly basis, that could be very negative for the whole sector. >> that mpd group reports that toys are feeling pressure and underperforming. what do we do? >> i got this wrong, i'll be very honest about it. i was looking at the corporate tax reform and the individual tax reformal being a real tail into the space and it will be. you look at this border tax,
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it's scaring the heck out of investors who are struggling performance-wise. i think think there is going to be opportunities. we'll be getting very close. i don't believe it's going to be possible for donald trump to go in and actually reform and have border tax implemented because it absolutely is a direct assault on the people that voted for him. so i think there's no chance. >> nice of you guys to think of other problems for these guys. those things are not the problem, though. the problem is their structural business is getting shot. brian is talking about numbers this morning. you're right, those numbers on how much spending power and consumption trends and border taxes, these guys are shot. i mean, the secular trend for these guys is terrible. bed bath and beyond reported last night after the market closed, their margins were weak. the bricks and mortar are running into the same headwinds. dtc was up, direct to consumer. they're making some headway. the bottom line is this is their season. and they're not hitting it. everyone says this should be
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their time to do well. in fact this is their time to show how poorly they're doing because their business model is shot. >> they should be performing well into the season. >> some of them are terrible stocks. i wouldn't touch them. border taxes? absolutely border taxes. we're marketing with our guys -- >> those are not going to happen. >> i'm telling you right now, it's most important thing on investors' minds right now. they're 1,000% convinced that's what's holding this group back. >> that might be holding people back from buying the stocks but there are fundamental reasons. >> look at a name like burlington, "burl." >> not when you have a macro environment that's decelerating. restaurant stocks got decimated, their sales are down the same magnitude as they have been in the last five recessions. we could see gm's idling plants, you're seeing retail sales go down. this is a bigger macro picture than just a border tax.
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>> i love you guys arguing, but all agree that retail is a no-investment zone for whatever reason. >> it's a no-buy zone. it could be a short sell. >> best buy went from 28 bucks to 47 bucks. a lot of these stocks had huge rallies over what were probably oversold conditions. essentially it was the second quarter where these things bottomed, everything that amazon did was right, everything they did was wrong. the bottom line is they got ahead of their britches. the numbers we're getting in terms of the holiday sales are totally missing. >> the a la carte bear menu is vast on the notion that that will be a retail zone. >> now maybe it's the time of year, obviously there's a reason why you didn't get the strong volumes in a lot of these sames. there's going to be a day when a name like nordstrom was down another 5% and it does it on 13 or 14 shares of volume.
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today it actually traded less than normal volume, on a day where it made the lows we've seen over the last three weeks. >> you still long on burlington? >> yes. >> and you stick with it? >> i'll defend it, i think the border taxes are being implemented. the fundamentals on the stock are amazing. the stock will be a $95 stock. >> did you just say border taxes are a big problem? >> you don't think they're going to happen? >> no, i don't think they're going to happen. it's a concern overhanging the space. i don't believe donald trump will be able to implement 100% -- >> why does the market believe that and you don't? i agree with you, it's not the problem with retail. >> it's fear of drug pricing. will they change drug pricing? no, they're probably not going to. but the fear has kept those stocks at bay. >> i'm sure there are people at bay for various reasons, whether the business model is broken, whatever it is, and this doesn't help. >> the industry has huge secular precio
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pressures. they also have store by store or franchise by franchise. you have coach, ralph lauren, struggling by ube i can iquity. >> i think guy's point was, there's going to be a place, there was obviously a place to buy these stocks a few months ago. if you think about the headwinds and think about where we are on trends, we'll be waiting to see where holiday sales are. >> you said maybe a short zone. what would you look to short? >> you could go the momentum on nordstrom's if you want to short that. amazon closing below 750 would pique bk's interest. then i would think about shorting amazon. >> bank of america just upgraded mastercard. they just raised their price target to 120. that stock was up today within 2% of its all-time high. to me, the secular changes for mastercard and visa still work. >> let's still with the mall, despite the selloff, our next
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guest says there are still names to buy, liz dunn has covered retail for years, liz, good to see you. >> good to see you too. >> two names that are not in the department store space, the frequently-hated department store space, one is cosmetics and one is sportswear. >> alta and foot locker look interesting. beauty has been a huge trend this holiday. it still continues to be a trend even in the mpd data that was out today. ulta continues to see the double digit growth, which is really important. foot locker is a little different. he saw the difficult results out from finish line. i think foot locker is playing the trends much better. i think they have the right assortment. and on a mid-single digit comp, they can leverage quite nicely. >> even nike has a stronger direct to consumer franchise.
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does that worry you? analysts say no, you can still have nike do direct to consumer and still have foot locker do well. isn't there a tipping point in which a nike direct to consumer business is a threat to foot locker? >> nike needs both. with only a quarter of their business in direct to consumer, they really do need that wholesale business. we saw with the north american futures down 4%, they really need to focus and stick with the winners like foot locker. finish line is obviously having some challenges. foot locker is the strongest player. it's their strongest partner. i think they need to continue to double down on that relationship. i'm not worried about the growth in direct to consumer for nike as it relates to foot locker. the other thing that came out of nick k nike's results is, they're seeing a bounceback in basketball or hoping for that. >> liz, tim pitched estée lauder on the valuation that the stock
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got washed out. the stock is probably up 75% this year. at what point does valuation just get to the level where you say i have got to throw in the towel here? >> yeah, eight quarters of strongly positive comps is certainly a little bit of nosebleed territory. but i think when you have such a strong trend as your friend and a share gaining situation, a lot of positive drivers for ulta, i still think the stock has a lot of room to grow and will continue to be a winner. the beauty category is seeing a huge resurgence in interest particularly from millennials and i think ulta is playing it quite well. >> a quick question on foot locker, i know nike represents ruff roughly 70% of their revenue. how will they make that up? are they stocking the shelves with a different manufacturer? >> adidas is on an uptick, under armour is obviously on an uptick. foot locker is playing that
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balance well. so as other styles come in favor, you know, lower profile styles, they're able to make up the maybe downturn in basketball with some of those other categories. and so i think they're doing that quite well. and i think their merchandising is quite strong. they're investing in stores. they win with nike but they can win even if nike is having challenges. >> last question, liz, 5% border tax, who would that impact the most and do you believe this will ever happen? >> well, you know, i stopped making claims about what was impossible a couple of weeks ago. but i think that it's certainly possible. and if it happens, i think you want to stay away from those direct importers like unique n the near term. it impacts all retail in the long term. the most immediate impact is for those companies like nike who
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manufacture a significant amount in asia and that are direct importers. >> liz, great to see you, thank you. >> thanks for having me. >> liz dunn, talmadge advisers. okay. >> first of all, back to just the health and beauty products, which i love, it's not just millennials, we're at a place here were the marketplace is growing. the problem with ulta, i read a piece a few weeks ago that says it's ulta's world and we live in it. it's doing everything right. the valuation reflects that. at 35 times, it makes you wonder how much more these guys could do. i happen to think these numbers are great, we talked about how they're reassessing their business, we talked about how enthusiastic about taking their market share back. that's a name i would buy. >> i can't believe i'm doing this but i would agree with tim on estée lauder. the valuation, he made the case. risk/reward at $78 is not so
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bad. it has support on $76. >> you're doing well with the estée lauder pitch. >> i'm speechless. >> he never is. never. >> home depot has been tough for a while, that stock is okay. if you want a total flier that was down huge today but has -- >> bed bath & beyond? >> you think you know what i'm going to say. >> i don't know. and who doesn't love 20% off? >> henry bendell. >> which stock? >> why are you bringing up mist misteltoe when you're sitting so close to brian? >> risk/reward is interesting. coming up, emerging markets are tanking as the market goes higher. plus carl icahn telling cnbc there is a dangerous amount of money holed up in etfs. is one of the hottest ways of investing about to unravel? we'll tell you the stocks that got hit off this.
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and the strategist at wells fargo who correctly called the post-election rally, he says the gains could already be priced into the market. what can you still buy? his top picks on "fast money," after this. 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.
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in the market today, the danger is you have all this money pouring in from america into etfs. etfs, they're blind buying, you buy these etfs. i question the fact, if you're buying these stocks and you really don't know what you own, you're prone to these periods of time when you're going to get -- there could be some kind of crisis and there could be a problem. >> that was trump adviser and billionaire investor carl icahn today saying there's a dangerous amount of money dammed up in the etf market. wisdomtree was down sharply, along with blackrock. >> when carl speaks, things happen. there were a lot of etfs out
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there that are high volume, that are very liquid, that you may not worry about. when he says you don't know what you're buying, you really do know what you're buying. it's not that hard to figure out. the etf has the list of stocks incorporated. i hear what he's saying, there are now 1600 etfs out there, 20 years ago there were 30 of them. maybe there are too many. but i don't think there's an inherent danger with the majority of these instruments. >> love carl, he loves our show. but the etf dangers for investors right now are, if anything, people are probably finding overlap between etfs they own. we could do a whole show about this etf thing. the bottom line is, i actually think the etfs have worked particularly well in a bull market. that's the bigger issue. it's the passivity. i know i sound like a guy from a hedge fund. >> this is a time when correlations have been very low. >> until they're not. >> right. until they're not. is this the time -- >> i think his concerns are with specific types of etfs.
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he look at corporate bonds and say, we created essentially a liquid asset, a liquid form of an asset in a nonliquid asset. corporate bonds were not meant to be traded like that. these were created for the american public to invest in. if something occurs that creates a run on it, it could be a disaster because the banks can't create liquidity. >> here is how it's related to your stock portfolio. you have something like lqd, which is the liquid etf, and the high yield etf, hyg. investors are hedging high yield exposure with s&p 500 puts. so there's a linkage there. that's the risk in the market, when you have these illiquid instruments, you get a gap and it translates into the s&p 500. >> the bigger issue for the etf companies, it's ridiculous, the competition, it's a race to the bottom on fees. all these guys are looking at lower top lines if everything
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remains static. >> if these companies, the etf sponsors, could be under pressure, does that mean it's necessarily good for the asset managers, like a janus? >> blackrock was under pressure, it's down a percentage and a half. it seems like a big move. this stock went from 300 to 400 this year. valuation is not rich. it's a growing business. i get the carl icahn effect for a day or two. if this stock trades over another couple of percent over the next couple of days, that's a name you want to buy. >> active managers who know how to deal with the etf-ization of the markets are the ones that are going to do well. you know how etfs push around certain stocks and you can take advantage. ahead, trouble for a handful of stocks, we'll tell what you they are. i'm melissa lee. you're watching cnbc, first in business worldwide.
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here's what's coming up on "fast." >> announcer: there's something wrong with the chinese stock markets. >> what's that? >> antidote. >> to what? >> the poison you just drank. >> announcer: and why it could spell trouble for the trump rally. plus biotech continues its breakdown. but there are three stocks wall street thinks could double next year. meg terrell will break down the names and "fast money" returns. a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
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welcome back to "fast money." the trump rally stalling again today as indices were in the red. in the second half of the show, could virtual reality be a
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virtual bust? 2016 was supposed to be the year of er with everyone from facebook to playstation rushing to put our their own devices. the numbers suggest consumers aren't taking to the hype. we'll tell you why. plus the biotech breakdown continues. three stocks could double next year. we'll give you the names. the index tracking for its longest winning streak since 1984 is creating a headwind for a number of stocks. dom chu is in the newsroom. >> if you're a macro trader that's been long the trade, you've had a darn good run. the ticker uup tracks the value of the dollar. it's up over 10% since mid-august. after such a dramatic run for the greenback, are we due for a pause? one spot that traders are keeping a close eye on is the emerging markets funds. they're often hurt by the rising value of the dollar. let's hone in on the big etf
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that tracks it, emerging markets fund, ticker eem. since hitting a 52-week high on september 22nd, shares have dropped since then. it's been a negative trade for four of the last five days. and certain individual country funds are working on negative trends as well. take a look at the i-shares' larger cap fund, seven straight down days for that etf. it's been down nine of the last ten. he wi melissa, traders will be watching these in 2017. will there be bottom pickers around or is the worst yet to come? guys, back to you. >> dom, thank you. carl icahn joined "the halftime report" earlier today to address trade issues with china under president-elect trump. >> obviously if you get into a trade war with china, sooner eo later, we'll have to come to grips with that. maybe it's better to do it sooner. but that's not my decision at
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all. >> maybe it's better to do it sooner, tim, what do you think? >> if china is doing poorly, you're doing particularly poorly if you're investing in markets. the em is down 15% straight from effectively right before the elections. it went from being an out performer, if you do the spy divided by the eem etfs, you get a ratio. eem has eradicated its entire rally. i think we get to these places where everybody is on board. dollar sentiment is way too bullish right now. we have five-year highs in global pmis. the trading action in the eem is terrible. and if you think china is about to blow up, you do not want to own this. if you think sentiment on china gets worse and worse, you do not want to own this. i actually think this is an interesting level to own this stock, 32 1/4. >> you're seeing some signs come out of china. in november they have massive
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outflows, fxi is down. you're seeing problems in their bond market. they're talking about popping their property bubble. all these things have been on the table. if you look at bit coin prices, they've skyrocketed because people are pulling money out of china. there is an issue there, something to keep an eye on. >> one headline about supporting the investor base in china. fxi will go through the roof. we've seen this story before. china, growth at any cost. they want to make sure their stock market is supported. i would buy the fxi, i agree with tim, it's a great trade. >> dollar strength, at some point, listen, i understand historically dollar strength doesn't mean the market can't go higher. they're not probably as correlated or uncorrelated as people think they are. but at a certain point it does matter. i hear what tim is saying. bk has been one of his concerns, it's been a strengthening u.s. dollar. that doesn't seem to want to obey. >> bulls will argue that lifted gdp will offset the headwinds, right, from a stronger u.s.
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dollar. we haven't seen the things that will make gdp go higher yet. we're in this sort of period where we don't have that, we have the dollar going higher. we've already seen some companies report, accenture, not a bellwether, but they took down their estimates because of the stronger dollar. >> gdp report today, 3.5% gdp. two-thirds of that came from exports. the dollar is 30% up, the explanation of exports. so an 8% rise in the dollar, completely wipes out the gain that you got in gdp today from exports. we've already rallied 10%. >> isn't that self fulfilling dollar negative? you're saying the dollar will choke off any check strength. last block you were spending much of your time arguing how weak the economy was. why is the dollar positive? >> it's positive because there are a shortage of dollars. emerging markets need dollars to pay off their bills. we've seen this movie before. a shortage of dollars will continue to have the dollar
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higher. look what happened in 2008. you can give me a funny face like that. >> you were reacting to something. >> i think there are technical reasons why the dollar mi might rally. steve grasso was telling us it was going to be 6% last night. people are looking for central bank divergences. people look at the ecb and the bank of japan and say the fed is so far ahead of them, that's why the dollar is trading. if the economy is going to get choked off by a stronger dollar and we have no idea, remember, the plaza court in 1985, there's a lot i'm giving you here, be careful. >> we've got breaking news in donald trump. seema mody is in the newsroom. >> the president-elect has tweeted, based on the tremendous cost and cost overruns of the lockheed martin f-35, i have asked boeing to price out a comparable f-18 super hornet. again, that's the latest from
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the president-elect on this continued battle. back over to you, melissa. >> thank you, seema mody. for lockheed, f-35 was a much bigger deal, 20% of revenues in 2015. >> right. >> so here we have the dip in the afterhours session. remember, the ceo's just met with trump at mar-a-lago in florida yesterday. we did not hear from the lockheed martin ceo. she simply left the meeting. >> we speculated why one ceo would have something to say and another would not. it's right that the stock is down. this could be second derivative trump tweeting. so you're actually at a place where he's saying, yeah, go out and bid it out. the f-35 could easily be swapped out apples to apples and this could still be a very aggressive play. they've been quiet at lockheed. >> lockheed doesn't want to be on the wrong side of the u.s. government. u.s. government business was 78%
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of their revenue in 201 6. >> we made the point that boeing was probably a better stock to own given a choice between the two because of the tremendous percentage of revenues the f-35 is for lockheed martin. we actually said you probably want to stay away for a while. i'm convinced the powers that be at lockheed are way too smart to get into a match i will not name. >> it's headline risk. he's going after the biggest part of the budget, talking about tariffs, everything he said he was going to go after. he needs to do what he's doing before he gets inaugurated. this is all about showtime. i'm not saying it in a negative way. i'm saying it's to get the buy-in from the american public that he is going to be an executer. i do not believe a lot of this stuff will hit the table. >> you don't want to panic this much, part of this is negotiating, they're saying go price it out. it's the art of the deal, go back and read the book, that's exactly what the guy is doing right now. i wouldn't panic too much if
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you're a lockheed owner. >> let's turn our attention to u.s. stocks. the dow is fewer than a hundred points below 20,000. our next guest says all the gains from next year could already be priced in. he correctly, by the way, called the brexit dip and the trump rally. scott, always good to speak to you. >> hi, melissa. >> so this is it? >> well, i think, you know, really from where the levels are that we are right now, 2017, at least based on our work, could be more of a stall year. i think we're going to see some highs in the market. 23, 30, maybe get a touch higher than that into the middle of the year. for us, the second half of 2017, i think the market is going to become concerned that, hey, maybe we do see a little bit more wage inflation in 2018, maybe we do see more overall inflation, and is the fed behind the curve. those are some of the concerns
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that are going to be headwinds in the second half of 2017. >> in terms of what you like, scott, do you start building a position now? i mean, it sounds like you're expecting next year to be a choppy year. when do you start, for instance, getting into health care, technology? >> you know, the thing is, melissa, right now is the part where strategists like myself, you hope for a pullback. the bad thing about it is, i'm not sure how much of one we're going to have soon. you're getting more enthusiasm lately, even though i would argue the market is at fair value right now, it's where we thought it was no matter who would have won the election. we've been trying to get our clients for years, really, on any kind of pullback or correction, you need to step in. that's been easier said than done. our clients have a lot of cash still on the sidelines. they're getting a little more excited now, but, you know, hey, i think, you know, if you don't do a whole lot in 2017, we're not going to call the end of the cycle. i don't think the cycle is over.
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but, you know, we don't have a clear view into 2018, 2019. a lot of these proposals by the new administration are clearly pro growth but they need to be defined, debated, implemented. it's not like there's a lot of them that are going to be rubber stamped by a republican congress, in my opinion. >> strategists like yourself talk about sectors. you're recommending an overweight stance on half the sectors in the market right now. >> we have a lot of liens on, melissa. we've talked about this in the equities strategy group. when the economy has grown 2%, over the lasting 20-plus years, how many times have we been leaning overweight on five sectors? that is very unusual. and it's not like we're double weight any of these sectors or anything like that. you know, as we see the market move a little higher here, as we see it move up another 3, 5%, something like that, my guess is we're going to back off of these
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overweight sectors a little bit, maybe get a little bit cyclical, maybe get more defensive, maybe, you know, hold a little bit more cash than we do right now. we're all in right now. we don't have any cash, and we have been for a while. i think we'll have to make some adjustments. we've been telling our clients for the last year, 2017, we're going to have to be on our toes. this is not buy the s&p 500, close your eyes, and you're up money at the end of the year. we'll have to make some adjustments. i think it will come as we move toward the middle of the year. >> how much of a bomb could donald trump's tweets be to the sectors that you like? >> i'll tell you, two months ago, i was hoping that when donald trump was inaugurated, i was hoping the tweets would kind of stop. now for some reason i kind of like 'em. it's the easiest way to reach a lot of people, repeat markets, certainly it has effects on stock prices. i'm not sure he's really going to slow down, as he maybe said
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he would in the past. we're going to see specific companies continue to be mentioned in these tweets. and for brief periods of time, their stocks are going to be affected. do i think we're going to see more defense spending over the next four years? absolutely. but these stocks might be choppy, and who knows, maybe we'll get an opportunity, a little bit better of an opportunity than you thought you might, based on something like tweets. >> scott, thanks for joining us. good to see you, happy holidays, happy new year, scott wren at wells fargo. it's half the market, he's very clear, it's going to be a choppy trade. >> the irony of twitter down another 4% today and here we are talking about how this is the medium to get a lot of people -- >> exactly. >> you have to go after the sectors that have had the more pyrrhic victories. it was a victory that was shallow or hollow or -- in other words, if you look at a lot of industrial stocks, until we get things turned around, i'm taking
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profits in autos. it was overdone. >> earnings need to keep up with expectations, right? i think the financials have been beaten down so much. i think that the trumpings in is going to be gre trump administration is going to be great as far as reform. i think financials are still the place to be. >> the market itself right now after this rally is pricing in 6% gdp for next year. you have earnings expectations of 11%. i mean, that's pretty aggressive. you have to have everything go right to have those valuations hold up. >> two things. scott has been bullish and right for a long time. that's as cautious as i've heard him for quite some time. >> does that make you worried? >> everything makes me worried. scott wren, he is the cat's pajamas, scott wren, i'm digging him. >> what were you pointing to? >> the hair. >> he's salt and pepper too. >> is that bad? >> he might be using estée
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lauder products. coming up, more bad news as twitter's rival snapchat creates programming for disney. could twitter be in more trouble than we think? >> call at it oprah effect. shares of weight watchers surging today after the celebrity revealed in a new commercial she lost 40 pounds while using the program. you're watching "fast money" on cnbc, first in business worldwide.
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2016 has been a disappointing year for virtual reality but we're looking forward to 2017 for more. julia boorstin has more. >> reporter: companies are introducing new headsets but annual revenue projections for vr were cut in half to $2.7 billion from over $5 billion. headset makers have struggled with supply constraints and delays. few consumers have the high end computers necessary to run he headsets like oculus rift and it's difficult for companies to
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convince consumers to invest the money in the device. sony's playstation vr had the advantage of launching with 50 million compatible playstations on the market, but estimates of units sold are dropping. sony says there has not been an explosion of must-see content to drive consumer adoption. but vr should get a boost in 2017 as prices come down, consumers learn more about the technology, and google pushes its daydream headset, which costs just $80 and includes a controller. vr are suffering from a bit of a chicken and egg situation. more vr content will help drive hardware sales. but content creators want to see more consumers adopt vr before they invest in that new content, melissa. >> this is sort of the problem
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that some phone makers where experiencing with their app stores where not enough people had the phones or the devices so app developers weren't developing apps. how did those guys get over that hump? >> reporter: well, i think with this vr situation, it's really just going to be a question of critical mass. i see more announcements every day about companies investing in vr. we're seeing traditional hollywood studios create vr content to complement what their films are doing. we're seeing companies envisioning themselves as the netflix of vr. we're also seeing some companies that bridge the gap, 360 content. it may not be totally immersive vr but it's halfway there. all of the content will be valuable in getting people to buy headsets. >> julia, thank you, julia boorstin in san francisco. let's trade this, maybe 2016 wasn't it, maybe 2017 will be it. i will go to the chief vr correspondents on this desk,
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they have experienced vr firsthand, guy and tim. guy, what do you say? >> first of all, it made me sick. i went out to staten island to do this vr shoot with christian swollinsky who is listening right now. the ride to staten island made me sick, and so did the vr. you feel like you're going to fly into a building. which wouldn't be a first. facebook will figure this out. it's not a reason to buy the stock in 2017. and it's clearly not reason to buy the stock right this second. i do think out of all the companies that are trying to figure this out, facebook will win. >> he looked really goofy during his vr. >> and your arms were probably sore afterwards, from flapping your arms you. look worse, tim. >> i trained on that vr at msg to be a goalie, i've been picking up shifts with the
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rangers. okay, i haven't. ultimately it will be about whether you have simulations that mean something for big businesses. i think hp vibe may be the place that's the most commercial. is that a reason to go out and buy the stock? i don't think so. >> i think it will catch on. i think there is a place for it. i don't think it's going to be very quickly, though. i think the broad based buy is going to take time. remember google glass, right? i say qualcomm, i would be looking at the chips, qualcomm is a perfect play for that. >> there's a nvidia as well. >> perhaps facebook ultimately will be the one. unfortunately right now facebook has some other issues. i was in the best buy the other day and they had one of those oculus rift things. nobody, nobody was even buying them at all. and i think it's because it looks so ridiculous, sorry, guys. >> it looks ridiculous. >> really. as ridiculous as you normally look, this was five steps beyond. >> that's what i do for the team, i take one for the team.
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there's zero shot, by the way, that you would have done it. >> tom tom got a little sick. >> where is the baby cry? >> wahh! still ahead. >> no baby cry. >> a bloodbath for biostock exchange this year. it's gotten so bad, it's good. why the selloff may have created a buying opportunity for biggest names in the space. oprah is getting slimmer. weight watcher's stock is getting fatter. shares surging after the celebrity spokeswoman said she lost 40 pounds using the program. how much bigger can the stock price get? we'll explain when "fast money" returns.
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oprah's cost basis on the share is lower than where it is currently trading. if you want to get to the -- >> thank you, mike coe in austin. check out "options action" tomorrow. next, tim is selling one auto name he says is breaking down. more "fast money" straight ahead. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade.
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we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade.
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we're drowning in information.
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where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. final trade, tim. >> christmas attire, tune in. 20-day, taking some profits in the letter f. >> fire xpi for all the reasons we talked about. >> tlt, i'm still long, a great
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way to hedge your portfolio. >> guy? >> pete turning 53 today, i know you're watching. tesla, tesla! >> i'm melissa lee. thank you for watching. see you back tomorrow at 5:00. . "mad money" starts with jim cramer 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. hey, what's the deal here? isn't the market always supposed to go up? how come stocks are breaking down instead of shooting higher? dow backsliding 23

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