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tv   Fast Money  CNBC  January 13, 2017 5:00pm-5:31pm EST

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cares what she says anymore. that means world has moved on a little bit. >> the imf has said inflation will pick up. it is mission accomplished. >> clear sailing with donald trump in charge. >> that does it for closing bell and "fast money" begins now. "fast money" starts right now. the ten-year anniversary celebration rages on. overlooking new york city's times square. "fast money" friends and tv legend regis philbin is here and he has some very important questions for the traders, plus he'll tell us when he thinks dow 20 k will happen. the nasdaq endsing the day in 14. soaring to a record high. remaining the best performance of 2017 and just in time for the
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"fast money." coincidence? maybe not on. a day that tech dominated, we saw it could have been a may know day after they all report better than expected earnings. the financials ended the day without much fanfare. with not a lot of holding pattern, it is time for classic "fast money" game. we'll pull it out in the a block. would you rather tech versus bank? >> right out of the gates. banks or tech, would you rather? >> right at the top. >> banks! >> i'm going on get crust on this. i say banks. tech is a pretty broad thing but i think i can get my arms around it. i think what's happening. people are not pricing it price to earnings. jpmorgan says the tangible book value is basically $52 give or take. i think the right multiple for
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that, given what everybody expects under the new trump administration is somewhere close to two. you're talking about a stock. >> it is expectations. s&p 500, 6% and you have banks saying net interest income was not better. some of the expenses were. that's where you got a lot of good news. jpmorgan's numbers were insanely good. record numbers and howard fwaurd the fixed income trading. that was up 30%. i think a lot of that can continue. >> so play the game. >> tech. tech. but the problem with this game, and i hate yelling at our game. what's my time horizon? what are my stocks? >> i'm not interrupting. what was the negative on the financials though? >> to me it is both the price action, the valueations have moved on. huge expectations. people are expecting net
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interest income to go through roof. >> so for all those things, i choose banks, financials. and to all tim's points, you should have seen a major sell-off. we didn't see that. >> why would we see a major sell-off? daimler coming out -- >> it was anti-climactic. >> but they've run so much. it has been pre loaded. it is already front loaded. they should have sold off. you buy the rumor. you sell the fact. he sold the rally when he talk about lower taxes. >> why didn't it trade well? >> because they closed at a low today. >> on jamie diamond's comments that lower taxes would increase competition. >> the banks have rallied so
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much. what's next for the banks? >> we're already waiting on the s&p. >> it is the last eight years they've been so -- >> so let's go back to time frame then. i got another five years. may be i want to be in the banks. >> if you have another five months, you have to be in financial. >> the same people that were underway banks are not suddenly flipping switch saying, guess what. deregulation. dodd frank is gone. this doesn't happen overnight. it's going to take a while to rotate. >> why wouldn't you wait for the sell-off? >> because you keep waiting for the sell-off. it is not happening. >> i haven't missed anything. he's gone sideways. >> i'm looking at it. i bought the banks -- >> right after the election we
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saw a quick steepening. what have yields done recently? so why wouldn't the banks respond to that? >> you're still talking about valuation. people need to -- >> how can they have rotated in a month? people rotate out of bonds one month, a month and a half. you think all the rotation is done? eight years. >> i'll finish it with you agreeing with me. >> i just said, s&p up 6%. banks up 35%. inherently that doesn't tell you there has been rotating indiana banks. >> it's happened on banks. the price went up so it appears that they hold financials. >> he agrees with me. >> negotiators. >> that's money. you never call me that. >> i have called you that in the
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very beginning eight years ago. >> do you remember? >> the emissary. i'll bet nobody remembers that. when it comes to the notion banks are underowned. there would be an ensuing -- are you a buyer? >> i think, i think for a long time people have stayed away from banks. yes. they have been on their own. i think the reason they're going higher is because you said all the right things. there's a lot of ground that needs to be tilled before we get there. but i think people have gotten burned. waiting for things to happen. in the meantime, the world passes them by. >> this is a trading show. everyone of these arguments, it needs to be in the context. there's went a rototiller throughout and it has ripped up the ground. so tell you what. i've been wanting to do that for
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ten years. >> so i would make it cheer. we're playing would you rather, i don't want to be in the banks. $85. i would rather buy jpmorgan at 80 then pay up here and see when the yield curve does, see how people react. i'm showily adding in inflation trades that in many cases sold off in december. i think we're getting inflation. the numbers out of china, germany, this week we got ppi and cpi in places that supposedly deflation and you're getting inflation. >> what did you do today? >> i think the s&p goes higher. i've still been an ongoing buyer of spiders. one day financials need. the next day it is materials
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lead. instead of destroying to guess. >> he mentioned the inflation trades. gold silver held in fairly well so i think you need to stick with those trades. timry and going to agree with each other for ten years. >> exactly. but gold and silver you stick with as a renation inflation trade. regis philbin is here to help us celebrate our anniversary. and he has a burning question. david is going to make a special appearance the give us the pitch. there's one stock he couldn't wait to tils about. much more. the ten-year celebration right after this. inrt yat ilelele gme
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after they're done the traders will talk about whether or not they're buying or selling that pitch. our special guest is here to pitch his idea. david seaburg comes on down.
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what are you pitching is this. >> they're all going to agree with this. i know the drug pricing, all those concerns, trumpisms, all that stuff. it is a name to take a look at. it is a sfok has a lot of strong fundamentals. pharma stocks are basically trading at 14% discount to the s&p. i love this for a relative value trade just from that perspective alone. as the news starts to pick up and really becomes solid, i think it will change. pipeline is very strong and visible. it is not exciting but guess what. it looks okay. hold that puppy up. if you look at this, and i'm only showing from you 2012 through colonel period. if you took a long term trend line and you pull it up, it only breached that one time. that's when they had some bad data. but actually it held in ascending 200 week moving
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average which is $62. it really defended that. i look at the stock and say at these levels, when it starts to improve, you will see the breakout. the low 80s which is really going to start to show acceleration. you can see it start to move in the right direction. so eli lilly is a name i will stick with. >> to me ultimately, what's the valuation you think it should be trading at? you can make an argument that relative on its peers, there's not a ton of value and we're not in that age where yields are what it is all about. so again, can you defend it? >> with relative value trade here. we went back to, if you look at the way this set-up is. i talked about based on next year's earnings, a 14% discount. this is a relative value trade. you're looking at i straight on. just like we saw with a lot of the financials and the way it picked up.
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you're going to see this in health care. look at it as being a very safe name to own within pharma. and i look at it and say over the long term, it won't crush and it be outperformed. but this is going to be a consistent earner. he know 2.7% is not what you're looking for. >> he has a question, too. >> do i. let's address the big problem. the pricing issues and a problem with the trump tweet in these names. does that scare you? >> the pricing issues are a very important topic. it is topical from the perspective of this. it isn't going to hax prices are going to increase. we did a study and we looked at price increases. a lot of these pharmaceuticals of 3.5% over the next few years. they're not going to come back and chams trump pricing. i look at these names and i think they'll go a lot higher. >> time for the vote. buying or selling his pitch?
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hold it up. >> part of the problem is you told me we were all going to vote for you. it didn't work for me. i think the trend line is broken. it is not about technicals. i think that was a sell for now. >> i'm going to say buy but wait. it is up about 21%, 22%. wait for to it level out. 80 is a big number in the stock. wait for it crosses over. >> all right. >> i'm going to say no. just no. the problem with these names. this reminds me of trying on trade, remember the european crisis? and one minister would go here? same thing here. take the trump tweet? no. >> now this is unprecedented. >> do you know what's scary about this? >> you're the tie breaker. >> no. you're a buyer though. >> in college, he watches. he knows.
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>> thank you for pitching. still ahead, the chart master says one of the hottest trades is about to cool off. the name and why he is so bearish later. on first in business worldwide. in the meantime, here's what else is coming up. >> have you heard when a guy asks you to netflix and chill? >> who hasn't. what you may not know is that charts are pointing to aer serious breakout. >> the man, many myth, the legend. regis philbin is here with a special message when "fast money" returns. e,e,offfst a f
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we've been celebrating ten years on the air. here's a look back at some of our favorite moments. we're joined now in an exclusive interview with steve wozniak. we're joined by richard branson. hall of fame quarterback warren moon. russell wilson. john madden, the legend.
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joins us here on "fast money." >> this would be the perfect time to play the dating game. >> jamie dimon and i'm here to say happy birthday. >> thank you. >> get up! >> here it is, me andiering around 35. >> i don't know. you have to tell me. >> what in the world? >> shove it in there. >> pardon me?
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♪ ♪ >> a fine time of year. >> it went by in a blink. >> i like the perm. >> you still wear those brown shorts. >> i have them on all weekend. best part of that video was the shot with that crazy hair. >> was that the '80s? >> he know, really. >> where is he! >> where is he! >> we saw regis on that tape. he's been a long time "fast
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money" friend and it's not a "fast money" anniversary without him. so regis joins us from los angeles. hello! >> hello to everybody. you all look great. it is a great show as usual. ten years, congratulations. >> thank you so much and thank you for being a fan and for coming this show. everybody knows you're an active trader. what are you buying right now? >> i'll tell you. i want to see what the guys say. netflix. i got it at 117, 118. it now hit 133 today which made regis feel very good. and i wonder how far it will go. what do they think? >> i'll tell you what, i'm the guy, first, great pumping iron with you when you're in new york. i would be a seller. this is a company with a lot of competition. i realize you've had a great run. there are probably think it is one to be bought and take profits. >> maybe you're right. what else?
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what about guy adami? >> what are you doing, you sexy man, you? we've been on tv for ten years and that's like a cigarette smoke for you. what is the handle on regis these days? >> he's out here with the, you know, rickles. do not rickles. don't mess with don rickles. if he can find you, he would destroy all of you. he's a great guy. i love him. any way, that's part of it. but tell me about netflix. >> i think the next time, and you should think about this. you see somebody on the street. an attractive young lady. you ask her if she's interested in netflix. wants to come by regis' place and have a little wine and see what she says. if she says yes, you stay with that stock and if she says no, you dump the stock. >> he asks any young woman on
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the street and she'll say grow regis philbin. >> i think he's exactly right. >> one of your famed calls is being a buyer of micron. you interviewed and because of that billionth pick. in a year where micron is up 83%, have you looked at it? >> no. i've actually gotten rid of it. years ago, people said like all the gang there, you have to get rid of it there. so it is up 87%? >> 83% in the past year. >> oh, my god. you know what? i had a feeling would do it. listen. i'm into amazon. amazon. i bought when it it was 760. now it's rimmed over 819. and some people think it will go even higher than that. what do your boys think? >> i do think that you're in a, in good shape with amazon. it is my everything stock, a
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retail stock. a technology stock. wrik and mortar is collapsing. amazon online purchases, that's where the real money is. i think they're doing right they know with donald trump, president-elect trump. i think you're okay hanging with amazon for now. >> how high will it go? >> you know, i always like going for the big round numbers say. $1,000. >> no kidding! >> on that note, regis, we have to leave it there. you're looking good. >> happy anniversary to all of you. you've been great all these years. >> thank you. >> tv legend regis philbin. what did you think? >> i like that he talks about himself in the third person first of all. so of the two, i think i'm probably more with tim on selling netflix. amazon, you're fine holding on to it but a trail is stopping that. make sure you keep your profit. >> by the way, his other stock that he has is tesla. >> it has been quickly going higher over the last couple
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weeks. i think it makes new high sometime this year. >> to celebrate the ten-year milestone, we gave a special milestone. we asked what will produce the biggest trades over the next decade. >> back to emerging markets. for six years have underperformed. it is a cyclical trade and we're in a long cycle. >> steve? >> invideo lost about 20%. it's technology, artificial intelligence, it is everywhere you want to be. gains, processing, cars, homes. >> over the next ten years, on our electric gridering with won't have as much carbon. who will benefit? tesla. >> regis' pick. >> karen is not here. pete is not here. they're all part of this obviously as well. you're the best.
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the crew back home is the best. amazon. >> by the way, a shout out to maurice who put that together. that's it for "fast money." thank you for helping us celebrate ten years all this week. back here tuesday at 5:00 to start the next decade of the show. see you then. to sbr!
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the guys are getting ready behind me. >> the money is coming your way, you don't ask any questions. >> the money is definitely coming into netflix. if you missed the move, we'll tell you how you can profit next week. >> we're out of gas. >> that's what traders are saying about the run to the banks. and there's one name in particular that can come into the cross hairs next week. we'll explain. and -- it's the one dow sck


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