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tv   Fast Money  CNBC  January 5, 2017 5:00pm-6:01pm EST

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they were announced out at ces. nevertheless we're going to have the watch retailers tomorrow. >> no doubt. >> and especially as we head into the job report. gap moving the other way. bucking the trend. >> i think the market wants a strong job report. you don't want another first quarter slow down. >> because we've had a couple in a row now. see you later. "fast money" starts now. >> "fast money" starts right now. live from the nasdaq overlooking new york city times square. tonight on fast the retail rep rajz on as a whole group of stocks get pulled down. is this the death of the mall as we know it? plus president-elect taking aim at another stock today. toyota is cheating the u.s. out of jobs. can the auto thrive under trump presidency? and later one of the biggest deals could be in jeopardy because of the president-elect. we'll have a special report on those developing details. first we start off with a record
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day on wall street. the nasdaq closing on an all time high. amazon having it's best day since november 15th. facebook, apple, google, netflix all jumping. is the tech trade making a come back and should you be betting on tech in 2017. what do you think? >> it was making a comeback for the last couple weeks. this is also rotation. what was outperforming when yields were some question and i'm not sure why the bond market's selling off. the bottom line is it was growth -- value over growth for the good part of the last three months and now we're back into a place where -- you can't say even apple, i realize apple is cheap relatively to pierce, this isn't a value play. people are going back after growth. as it relates to tech, let's face it, amazon gets a halo
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effect when you see what's happened to retail and it's ultimately cementing a story that shows amazon when they want to turn on margins i believe they can do it. >> but in terms of 2017 trade they spoke netflix finally waking up after underperforming since the election essentially, google? >> i think it speaks to rotation. it was also rotation within technology. we were sitting here in late november, early december saying that this it broadening out of the rally in technology was pretty good because a lot of us were very concerned about the concentration among those five names. when you think about amazon, microsoft, apple, google, facebook, they make up like 25, 30%. owhen you ethe rally tarted to broaden out, the fact that they're trading better now it could be a little bit of dead pounce. when you think of am done and facebook they're till down at least 10% from the 52 week.
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it -- >> you're not confident it's going to continue? >> i don't think you chase those. i know you're going to the chips. the outperformance in semiconductors was massive. it was up 37%, the nasdaq was up a little less than 10%. >> i would agree with him on the chasing part if i thought these things were going to a point where valuations slowed down. so because of that i still think there's plenty of room for the upside in name and maybe -- we think the m&a world -- i think this trade is interesting though. the rotation out of it and you and i talked about this, we were talking about amazon, when they hit one they're bringing them all down together and that's what happened right after trump. amazon was the stock that mr. trump obviously targeted and he
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was talking about taxes and amazon was not reacting very well once trump got the victory. that was one of the stocks. i think it pulled the rest of them down. it seems like people are willing to put that aside and take a look again at facebook. is facebook really losing or winning? i'd say they are winning. netflix, as well. google i'm sort of in your camp although i think they've got some room expansion wise. i i understand what you're saying. i think the fang trade is back on. >> i like the fang trade. the ones i have. i think it's value and it's growth. i don't know why it was so out of favor except it wasn't the stock of the moment post trump election. facebook, they had a little bit of the specific issues to them. i think those would be a blip. >> don't you think potentially that the fang trade is -- they
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see amazon, a lot of same traders in the same stock, when they're reaching for one, they're reaching for others. i think when amazon was going down it was pulling the rest of those down and that's why it was a great opportunity. >> there's the opportunity. when they all go down together even though each of them are very individual specific companies, then it is an opportunity. i still think it's an opportunity here. >> you have to think back though, amazon and facebook they reported quarters that were good, they guided to a level of spending that investors were not comfortable with. that was late october. they continued to underperformed for the next six weeks or so. those two companies have about $700 billion in market cap and what investors back to the rotation, okay, the stores are fairly well-known here. they're going to spend a the lot more here so maybe it's time to move into some other sectors. >> doesn't amazon get the benefit of doubt now? they're spending on echo and content, they've proven when
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they want to turn up the nozzle or turn up the dial on margins that they can do it. there's so much leverage in this machine. i think amazon is getting the benefit of the doubt. the extra spend is out there but i think when you look at the stock they're delivering in these other areas. >> should we be worried about financials with this rotation? financials had a hard sell off. there's a lot of other factors, is this a rotation that you're worried is going to stick -- >> i am. i think when you talk about valuation, something that we talked about last night. i think valuations still there. i think growth is still there. growth is there without trump and some of the potential policy changes that we're looking at that we all love and we see all this. the financials ought to move. it was there last quarter. when you really look at it right now, and you take a look at the range in which the finals have been in, it's about a Ā¢0.50
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range. very, very tight range where it's been and it's still remains in that range so i'm not concerned about the financials at all. >> you've gone from 135 down to about 122. i tend to agree with pete. i also think if you think about the multiple that these things should be trading on with a regulatory environment and you look to j.p. morgan trading as the head of the class before this big rally, you should be amping up that multiple not necessarily earnex. >> here's my thing. i'm waiting for pull back. monday on the show i like the idea of getting back to that breakout point. i know there's some support below that 2160. i do believe there have to be some sort of mini pain trade for a few days where people start questioning all the potential
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growth so that's where i would get back in. some of the things i'd be looking to do, i do think that -- i think there's a couple more quarters of some of the things that they've been doing very well. it's cheap he enough. trading above a marketable. >> after a strong day for the fang stocks could there still be more room to run? they are set to breakout, hey rich. >> look, don't sleep on the fang stocks here. they're buys. you talking about waiting for a pull back. you've already gotten one in two of them. facebook, you have a 14% pull back. you've broke be this orange line here. the last time we did that was in 2013. we don't love that. that 50s almost crossing that 200 to the downside also hasn't happened for the last three years. that's a concern. it's not a deal breaker. what do we have? when we have a concern we just look out and look at the weekly and make it go way.
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we filled this very nice base of support, opportunity is staring you in the face here. you can buy the stock right here off of this base. you've had your pull back to support which is held for the last four years. moving on to amazon. nice triangle here, volatility is contracting within this triangle. upside break. in contrast to facebook which broke below that 200 day. amazon has held it. in my view we break above the purple that's the 50 day. we close this gap when we retest the old highs right around that 850 level. this is where it really gets interesting. this is netflix today. might not be able to see it without 4k but you got one here today from a two year trading rate. that's very bullish. you have roughly a 45 point trading range. and when we zoom out and you look at the weekly it becomes even more bullish because we see the last time that we broke out of a range just like this, this stock had a massive move here. this is 175%.
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i'm not saying that's what you're going to see this time. i love the symmetry here. i love the breakout and this stock goes higher. let's bring it back to the broader market here. we think we get to 2430, kind of a nice multi-year trading range. very well defined range. 1830 on the low end, 2130 on the high end. we take that 300 points on that gets you to 2430. this is a very high quality breakout here that has legs and we're a buyer. >> rich, come on over. we got you this new desk. >> waiting on you. there it is right there. >> that's up there. >> how are you, sir? >> you greased it up for me here. >> so high quality s&p 500 to 2,500 what point do you get concerned? >> you're far away from it. you talk about yields coming off pretty decent in the short-term but i think the banks have held up very well.
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we talk about too far too fast but all you've done is consolidate those gains. yes, you might have a deeper pull back here but i think waiting for the pull back is not the trade in terms of financials. if you're lucky enough to get a pull back you add on that pull back. >> is there some excitement over fang taking leadership again? we in late 2015 the guy was very disturbed about the narrowing of the market and yet these stocks are coming back and you're making an argument that goes to the next level? >> we're in a bull market now. for the last two years you've been in a bear market. we've seen a very violent sector rotation. in a bull market the majority of stocks go higher. it's the rising tooids that lift that boat. i think there's room in the context of this bull run here
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for financials for growth for value, for energy, industrials, material to work together as they have been in recent weeks. so i don't think that you're going to see fang reassert itself at the expense of financia financials. it can work together. >> it's growth at ail reasonable price. i know that you guys want to make a case for facebook that it's trading at 35 times. that's not gap. i think facebook had a horrible year last year. i think that chart looks like a disaster. you called it a nice little base. i think it looks like a nice little dropping off point. i'm just saying i think it makes sense. we're just weeks way from q 4 earnings and let me tell you something, i think apple's going to guide very poorly, amazon and facebook and it'll be interesting to see what
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investors do. 2017's going to be a long time. i don't know why you have to jump in the first week of the year. >> facebook is most set up to fail? >> i do. i don't think it's going to be a disaster. they're not going to crash. >> being too quick to jump in, what's too quick if we have a powerful market move like we seen in 2013, when do you get your chance? i think the problem for waiting for a pull back, anyone can wait for a pull back. when you get the pull back you don't want it because things look bad. you made this point yesterday. you can be too tactical and that's coming from a technician. you don't want to try to dance through the rain drops. you want to get out there in the storm and let that tide take you higher. >> that was lovely. >> he was watching the show yesterday. was he preparing? it's not a test. >> love that. >> weighing on the markets today, shopping mall says don't panic yet. he's got four stocks to make
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money in the retail trade plus president-elect taking aim at another auto stock today. toyota. am jen is soaring. waiting for that stock to reopen any minute now we'll have all those details and those developing stories ahead. stay tuned. thisr ho
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call today. comcast business. built for business. . welcome back to "fast money." trump targeting another auto maker today toyota sending that stock lower. phil? >> he did it the way he does it so often with a tweet. this time donald trump tweeting that when it comes to toyota and where it manufacturers in mexico, he specifically saying toyota motors said it will build a new plant in baja, mexico, to build corolla cars for the u.s. no way. build plant in u.s. or pay big border tax. just to give you some perspective. it imported 47,000 vehicles mainly pickup truck trucks in 2016. the corolla that you're looking at third most popular, it's built in a toyota plant in
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mississippi. toyota's mexico plant is scheduled to open in 2019. production volume of employment in the u.s. will not decrease as a result of our new plant in mexico announced in april of 2015. should be production value or employment in the u.s. will not decrease. for some perspective how many vehicles are brought in from mexico. here are the top five automakers that were sold in the united states. you don't see toyota up here. number one, gm last year, 438,000. there you see chrysler, nissan, ford, volkswagen, as tor toyota, with those 47,000 that it imported it had the fewest number of vehicles imported among the eight automakers that have manufacturing facilities down in mexico. this is an interesting story about the possibility of a border tax.
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it has everybody in the auto industry trying to be practicing massic let's hold on and see what happens before we decide to change where we're producing the vehicles we're selling in the united states. >> can you walk through those numbers again that we showed on the wall in terms of the numbers of cars? >> let's call the wall back up. it's a total of 1.98 million vehicles were built in mexico last year and sold in the united states. for gm, 438,000. there you see chrysler, that's how many vehicles they sold. >> so that's roughly 11% of all the cars sold in the united states are made in mexico? >> correct. for some perspective, how many do you think were built in canada and then imported in the united states and -- >> 11%. >> gm has a large presence there. toyota number one when it comes to production in canada brought down here to the united states. >> they have a big plant in
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ontario apparently. thanks so much, phil lebeau. >> interesting how it's mexico being targeted not canada. because of nafta. >> where's labor cheaper? let's face it. >> right, right. it's mexico that's getting all the heat. >> there's more production going to mexico for obvious reasons. labor costs in canada are pretty stiff. there's a lot of taxes and a lot of things that go on up there. toyota's move today just know that the yen was off -- rallied almost 2% today. it's an export company and that is a big deal with what's going on here. if you think about production for this company, about at least one-third or more of that production is actually headed right back to japan and i think it's something people need to think about. this is a company that said hold on a second. i think we're doing things just fine. i don't think he should be reacting to every tweet is my point also. i think this move was rational.
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>> auto sales look to be peeking, incentives are rising as well as we headed into the end of the year and then you put on top of that the potential of some sort of border tax which we don't know. we don't know anything about it and how it could impact. is this enough to say i'm staying away from this trade? >> the argument about it being peek auto has been the argument for i don't know two years now. >> at least. >> the stocks have been lousy. >> consumer confidence are better to have this not be peek auto. this kind of rapid fire tweeting at various automakers and they're production, it's insane to me that -- i don't know how they can -- they have his new business round table whatever it is. i think they need a more cohesive answer if they can do that. i don't know if they're allowed to do that to be able to address how do you run an industry while
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you have this kind of just shooting around. >> sounds like chrysler going harder if you're buying a car. >> nobody's paying more. >> prices are going higher. if you want that that's great. >> the difficult with this trade is trying to determine where you want to be. where do you want to be exactly? i think the real trade is in good year tire. what if we had been finding out more and more about the hunger of society is for suvs and trucks. you got bigger tires. you know their margin more than doubles on the margin of good ye goodyear tire. you look at the ford multiple right now it's low. if you want to be in the auto trade that's where you go. >> it doesn't seem particularly probusiness and i know a lot of the enthusiasm about the market and what's been going on over the last six weeks, we have a probusiness. it doesn't seem probusiness that you can just militarize, weaponize twitter and take a
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stock down 2, 3%. that being said, look at tesla. you know where they make all their cars. >> here. >> it's up from 180 -- it's up 20% almost since the lows about six weeks ago. that's interesting and here's a company that if they really are going to get to that 500,000 number, they're going to be selling a lot of cars probably in china. they're going to make their model three the low end one here. that's one longer term. they say they're going to sell. they have to deliver 400,000 in 2018. i don't think they can make it for 35 grand in the u.s. and that's going to be a head wind going forward. >> good year makes tires in alabama, oklahoma, north carolina and also in canada among operations. >> coming up, that stock is now halted in the after-hours. you're watching "fast money."
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in the meantime here's what else is coming up on fast. >> retail getting whacked today. a former mall owner is here. plus one beer stock is tanking thanks to president-elect donald trump. we'll hear from the ceo later this hour. much more "fast money" still ahead. rereom v ney y foth. t ttancg smarho'w.ha? 'a khan tefoa rr? ney y foth. t ttancg
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welcome back. we are live at the nasdaq marketside. it was a big day. the nasdaq closing the at a record high. this is the s&p closed in the
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red. financials are the biggest loser of the day falling more than 1%. pallo alto share getting a boost. we'll explain. plus it could be one of the biggest deals that never happened. donald trump reportedly strongly against the $85 billion time warner at&t merger. but first retailers getting hit hard with the sector down more than 2% today. >> i feel like i'm playing that old game hot or not when it comes to retail's holiday sales today. let's start with gap because we just got that one and shares are higher, gap's kind of hot. gap in november and december holiday those comps are up 2% and just december old navy comp sales did grow 12% that was off a pretty weak december last
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year. gap grew 1%. department stores so far are not so hot. macy's and kohl's are nearly exactly the opposite down 2%. sears comp are down 12 to 13%. both macy's and kohl's lower their four year earnings guidance as a result. macy's, in fact, expects the comp trend scene to continue throughout this year. costco is in the hot camp. in december at least were up 3%. but l brand is the parent of victoria secret and those comps were up 3% for the month of december. american eagle comps are flat quarter to date so that's longer time horizon. barnes & noble are down #% but online sales are up 2% for barnes & noble and that is the
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theme for online. it's hot. we knew it was. we suspected it was and it turned out to be the case. even macy's said they're online sales were up. slice intelligence which has the ability to scan e-mail receipts said that 38% of the holiday sales went to am will zon. according to slice saw its online sales increase this year over last year. >> thank you very much. many of those stocks getting hit hardest by that wreck singling the death of the mall. there is hope for these names and here's to tell us why. dan, great to see you will again. >> thanks for having me. >> could this time be different in the last quarter of the year
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we had what seemed to be everything going for the retails. we had this sort of optimism among the american people, consumer confidence was at a 15 year high. we have the prospect of potential tax cuts and the consumers obviously spending, they've got the money now but we didn't see it in the results. >> i think it speaks to how retailers are merchandising more than where the consumer is or where the money is. if you don't have the right merchandise at the right price innier store at the right price the consumer isn't going to buy it. the best merchant wins. we're also hearing about retailers that's winning. this is always been a game of winners and losers. the key is not to overreact. >> that has to be bad for the mall rates. >> it doesn't have to be bad for the mall.
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if you look at the stores that are closed and you take a look at the impact on the public mall it really was very minimal and the reason is because the public companies tend to own the better assets throughout the country. so they've been more disciplined, better market. these stores are underproducing stores and getting rid of an underproducing store and converting it to an overproducing store, be able to mark that rent to market which you can't do currently with the department stores is an economic gains for these rates and i think overtime it will take some time, they'll be a flushing out period but at the end of the day it'll be a good result for the mall rates. >> i thought about this space for a while. i talked a number of times about it. to me it seems like it's really, really bad and i think for the b and c malls there are few public ones that trade there, how can they not be -- how can they not be trading worse actually? >> if you look at what happened today in the market that's
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exactly what happened. the landlords in the b and c mall traded down and those who had a properties had a decent day, outperformed the b and c properties and that's appropriate. >> cbl or pbi. they struggled today but simon and general growth did fine. that's because there's a flight to quality. they want to make sure they're owning the right assets and owning the stocks of the companies that own the right asset. it takes some time. you have downtime. you may have some financial impact while you release it. if you look at occupancy rates of course the board, they're very high. some of them are at historic highs even in this environment. so we may have a blip down because you can't really go much higher than we are. the only way to go is down a little bit. once we go down a little bit they'll be able to release it
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and the highest quality assets will benefit the most. >> you're saying the great real estate always trumps poorer real estate and therefore it's an opportunity to market. who of these retailers on a percentage basis is fighting to get into these malls and is growing their share? who's strong? >> the hottest retailers are the people selling branded goods. it's ross, burlington, it's not in order strom but in order strom racks. the department stores as we know particularly macy's loaded with private label and it cease to capture the imagination of the consumer. the best merchant will win whether it's online or in a mall. >> and how much are we thinking too much about what will replace these retailers that are closing stores by thinking about other retailers? should we broaden out and think as a mall operator you don't necessarily need another
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retailer to step in to a retail space. >> health club? >> you're seeing movie theaters, entertainment venues, health clubs, and not taking the exact square footage and bringing a different level of service and experience to the consumer and that works but at the end of the day it's all going to tie into a retail experience. you want to stay away from the service sector because you want to make he sure people know when they come to their shopping center that they're not there for. >> spin class. >> or some of the other things, they're there to shop. >> only once a week. >> thanks for coming by. you've been in the space before, you tried. >> the retail rates space. that's how we met. and he was right. >> i'm rethinking the quality
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ones and the lesser qualities. that's interesting to me because not only do you have this head wind of traffic being down but you have the rate environment. if rates go up these things are going to go down. that's not specific to them. i'll relook at that. for my own retail holdings, i have some macy's which is really terrible not inclined to buy more, children's place working, foot locker working. i'll stick with those and coors is some where in the middle. the coors trying to maintain their price. >> we started this segment talking about gaps. gap's a company that has $15 billion in sales and when you think about the news overnight that amazon was considering buying american apparel out of bankruptcy but they want to own a brand, when you think about amazon last year they had $107 billion in sales, 12 billion was aws. they sell a lot of stuff. i just don't know why macy's has
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to exist. i really don't. macy's should be a vertical on amazon. it should be a brand that sells these other brands and that's where you go to do it. >> what's the difference between nordstrom and macy's. i've been saying this for a while. they're going to have to move much bigger. >> where you going to pick up your handbag? i'm joking but -- >> this is a case where -- 98% of when i buy -- >> you're not buying cosmetics online, amazon has become a logistic company. you buy things there and pick it up there. we're going to have far fewer department stores at the end of 2017 than we have right now. >> still ahead. time warner and at&t taking a hit today on reports that president-elect is still opposed to the mega merger. so with the $85 billion will deal in jep did i what could it
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mean for the media space. and talk about a buzz kill. we'll hear from the company's ceo when "fast money" returns. y tllititie? coras! o y girls e ' o y girls e es
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just blew away everything. almost in every regard, fantastic sales results but there is a lot of volatility in our stock as a consequence of the aspects of tax reform regarding the border adjustability tax that you mentioned so i think that is probably what we can attribute the volatility today towards. >> that was ceo of constellation brand answering concerns over its ownership of a number of mexican beers including corona. the stock sinking #% so constellation brand getting trumped. this is a concern immediately after the election, after trump's win. bampg of america came out and downgraded stz straight out of the gait because of concerns because of mexican beer. >> he looks very relaxed that gentleman. it comes from a better tax rate for them on this quarter.
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the margins were lower. there was some elements of this quarter that on its merit was not all that good so stock that's extremely expensive and has had an enormous run and when i think about the mexican head wind we still have no idea what this tax is going to look like. this is very different than ksu not able to carry auto parts above the border, this is beer and spirits. i don't think you're going to have the same impact. the tariffs themselves are still unknown. i would not touch the stock -- >> they raised the four year guidance and they beat out earnings. when i look at the company all i look for the fundamental stories and growth and they seem to have that. the overplay is to overreact. it bounced off that the bank of america had a nice upgrade yesterday. their price tag of 175 seems
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lofty. i don't think it's that far out of the way for them. >> i think that's going to break but. >> does that mean it's a floor? >> i think this is a stock that's been flying for two years. >> i got a beer stock for you, bud, look at this thing. got crushed after the election, it's trading at a two month high. that one looks like it's got some legs. >> on mad money to another target of the president-elect time warner and at&t. >> bloomberg reporting today that he still opposes at&t acquisition of time warner because it would concentrate too much power in one company. at&t shares closed a hair lower today while time warner shares lost 1.7%.
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we spoke to the droechlt of time warner turner networks about this latest opposition to the deal. >> i can't comment specifically what the president-elect may or may not have said. i will tell you that inside our company there's a lot of enthusiasm and excitement about the merger from our standpoint inside our company, we look forward to working with our new colleagues at at&t to try to bring new and innovative products to koormds and frankly overtime at better prices. >> trump has also been targeting one of turners networks, cnn. trump tweeting during the campaign, cnn is unwatchable. their news on me is fiction. they're a disgrace to the broadcasting industry. martin says that trump's opposition is only boosting cnn's rating and revenue. >> it just completed 2016 the best year in the history of cnn, both from a rating standpoint, from a revenue standpoint, from a profit standpoint. the president-elect has critical of a lot of news outlets, maybe yours as well, but we take very,
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very seriously the responsibility that we have to provide unbiassed journalism. >> trump does continue to criticize the media broadly. today he tweeted about the kwoes dishonest media and he'll face the media head on for the first time since getting elected at his press conference coming up next week. >> julia boorstin reporting from us from las vegas today. what do you think, dan? on the heels of this we've been thinking of all sorts of different combinations of media deals? >> i think what's different about this time warner deal is that it really is a vertical deal. it's not a horizontal deal. i think it's going to get through. the stock took a dip today. it rebounded from some of those gains. i think people who have this thing on, they have it the way they want it and i don't think that one tweet is going to undo it. i know you know this sort of stuff, there's weak hands in this deals like this.
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we'll see more sorts of these vertical deals going forward. >> isn't the vercalality the problem? it almost seems like they want to separate both the delivery from the content and i don't know because i agree with you otherwise i think this looks very good for time warner, either way time warner was always cheap on the sum of the parts. that's the value right there. >> i wouldn't buy at&t. >> that's the trade. the time warner makes the most sense whether the deal goes through or not. >> it's ironic that he was singling out cnn. "the new york times" too. >> it's been a political season. all these guys have had more eyeballs because of that. >> you're accused of the president-elect unfairly covering him they have done very well. >> of course they've done well. it was the most watched and
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politically analyzed season we've ever seen. >> there's a flip side to this. once he's in office what is the access of these organizations to him? is he going to start cutting. >> they can still have news about him whether or not they have access, right? >> the media exists -- he's going to cut off cnn, "the new york times"? i think it's a real issue. a classic page of authoritarian playbook. >> unless they are cut off from information flow as opposed to access to him -- >> karen, every day he's saying the dishonest media he's trying to take the 63 million people which is 3 less million and trying to denigrate these news organizations. >> look at vanity fair and the readership after the article on the trump grill. it actually helped them. >> it would be a good time for a pneumatic drill. we've had fire alarms go out.
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we got a drill above our head. just another day at the nasdaq. still ahead alibaba shares with the stock up more than 7% on the last three sessions. could this be the best way to play retail this year? we'll get the latest update on the big movers after this. ng ng rade we ders rark t fohahaal ng rade we ders gef thmpitori' n ty is ry poanto fohahaal ats whu*bile. ng rade we ders gef thmpitori' n ty is ry i'onllevic,s me fest poanto fohahaal ky mesbievmgn up m an tnddo ng rade we ders gef thmpitori'
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built for business. we've got a news alert on some big biotech movers. hi, meg. >> hi melissa. pretty shocking development in the after-hours here. a court has ordered a ban on sales of a cholesterol drug man by sanofi supporting a drug from amgen the ban wouldn't go into place for 30 days so the company's would have the opportunity to appeal this decision but a very big surprise decision here. patents fighting over this two cholesterol drugs that were improved in 2015. so far these drugs aren't huge money makers for eth of these companies. some estimates put potential shares around $330 million. for example, people estimate as we get more data on these drugs they could be huge block busters
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for both companies so this decision a huge surprise, a big knock for regeneral ron and sanofi. the question becomes what happens within these next 30 days. obviously they will very likely appeal but we haven't heard from the company's yet. could they reach some kind of settlement? all of this up in the air. >> pretty big moves in the after-hours. thanks so much from the nyse. obviously the drilling continues but in the meantime, what's your topic in biotech right now. >> i own giliat. i like a lot of names. today we had lee cooperman on as well he talked about not only biotech but -- i think there's a lot of ways you can go into the health care world. >> alibaba soaring more than 4% today. the stock will continue to rally, dan. >> it was actually many traders
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today, call volume is two times the average daily volume. the stock was up 4%. it's up 7.5% on the year. really good outperformance. at one point the stock was down about 15% from its 52 week high. so the call buying today was in the january expouration, 95 calls and 100 calls. here's one of the things. the next identifiable that's going to come the first week of january. when you see this short buying call buying out of the money. there is no identifiable catalyst. i want to go to the chart right here. obviously it's kind of found support at that breakout. gone straight up about 8% over the last week or so. what's really important look at that down trend right there. maybe there's some more momentum, february 1st or second they should report. that's 110, the high prior. when you're looking at 95 calls,
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the 100 calls are a very low probability bet. you may want to look to define your risk. look at february expiration and consider call spreads. >> thanks. check out the full show tomorrow 5:30 p.m. eastern time. up next, he's looking at one farma stock looking interesting. we'll see if the drilling continues. ysefor erins is neert syst t. d'a l.wim y all e in ththorta t hherngl? d'a l.wim y you onrt jone pri. i gn't need
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time for the final trade. i understand all the risks about all the tweeting going back to health care. bristol-myers some buyers in there today. >> i like dan's trade. so sell sfi but stay on some of the others. >> yes, noise cancellation technology earphones and i also let go i still think there's so much upside and for what they have done. >> we started on fang, right and you guys i think google's the one. i think that's the best
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risk/reward earning. >> thanks so much for watching see you tomorrow here at 5 for more "fast money." we'll leave you with the tone of the pneumatic drill. have a 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. so call me at 1-800-743-cnbc or tweet me @jimcramer. some days are outliars. some days are confusing. other days signal potential


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