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tv   Fast Money  CNBC  October 11, 2017 5:00pm-6:00pm EDT

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expansive. with medium that could be niche, you could find a small audience and maybe make a living at it. >> this is as important as when blogs first came onto the scene. if you're making it so easy for anyone generating content to get paid for that, that could have a tremendous impact. >> it could. it will also calls a lot of people to be disappointed. >> fair enough thank you, michael that does it for "closing bell" today, "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," it's been one month since apple released its next generation of iphones it hasn't exactly been a super cycle for the stock. why did tech investor dan niles just buy shares? he'll be here to explain there's one stock in the group that dan nathan says is about to break out.
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remember all the talk about airbnb hitting hotels stocks they're all at 52-week highs we'll explain why this might be the undisruptable space. first, another record for the dow. it was by the classic american stock hitting new highs, boeing up 67% caterpillar 38%. walmart up 24%, just dollars away from a fresh record how much further can these dow darlings run do you keep buying these classic american stocks even at record highs? pete what do you think? >> i think some of these names, absolutely if they've got the growth or if they've got something within the balance sheet that makes sense to me. i was given flack about this one, it will continue to go up, boeing when you look at this name, we talk about the banks all the time, it's a price versus book, right? we're always looking at these various ways of looking at things it's not necessarily the pe value. with boeing you have to look at
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the operating cash flow. if you look at that for bowing, you're looking at a company that's 18 times, compare that to their peers. it's actually still inexpensive. because of that, 23 pe feels a little bit steep but there are names out there that have the growth, that can support the fact that they'll continue to go to the upside >> i agree, from a cash flow perspective, they have a lot of levers they can pull to derive cash flow. mcdonald's has been consistent this is a name i got wrong several months back. now i look at it and say, they've got the ability to get their same-store sales gains and be consistently beat the stock will continue to work. >> obviously you've got to spend a lot of time on procter & gamble yesterday, trading 22 times for mid- to high single digit growth seems a little expensive. the dollar is not particularly blasting higher. i don't know if you guys saw
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clorox was up 2.5% investors don't seem to be particularly bothered by rich pe multiples at this point. >> that's a stock that's surprising >> i'm just saying, you posed the question, i'm just saying -- >> and you have an activist there. there's something to be said for that, in terms of maybe being a put to the stock >> the market is at an all-time high all these things are at all time highs. if you look at what the market is rewarding, every one of those companies has a management team that is engineering or has injur engineered a turnaround. think about mcdonald's, you had to have a change at mcdonald's, steve easterbrooks comes in, completely changes the approach for the stock. caterpillar, again, a company that learned how to get very lean and mean in the mining sector if you want to play this rally from here, the things that are
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working are the ones that have the most valuation support i'll get back to the airlines, i'll get back to the banks, i'll get back to some of the minors who are participating in the growth >> a couple of weeks ago procter & gamble went up to 95, it got rejected there then you have all this news. it's kind of digesting if you really want to play for, you know, some gains from here on out, you want to get those explosive breakouts. if the market is going to keep going higher to year end, a stock like proctor is going to break out to new highs >> what if the markets turn lower? do you want to be in these stocks because you think they're more defensive or do you want to be in other stocks >> i've always hated the term "defensive." if they've got the fundamental story, then yes, i do. i'll give you another one of these names. how about johnson & johnson?
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there was huge buying yesterday in the options you look at this company, they've made an acquisition, they've done everything. every time i do the pitch, the first thing i always tell max and the boys is, management. if they've got management, they've number one and then it goes to the rest of the fundamental story. the fundamental story of all the names we're talking about right now seems to be intact now, walmart, it's online. they've got to compete with the big shegest and baddest with amn and some day with alibaba as well there will be competition, no doubt about it these names, when you look at the cash position, we're they're growing, if they continue to grow going into the future, those are buys on any dip. >> if if you look at them, mcdonald's is trading 15.5 ebd right now. you look at the and say it's barely trading at a premium, that's a room to grow there. from a valuation perspective,
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it's not out of whack. if the market takes a downturn, that's a jewel in the sector >> it's the "d" word that pete doesn't want to use, defensive people are willing to blindly throw it at shack, blindly throw it at chipotle mcdonald's is showing they have multiple levers to pull in this environment. global growth is moving. germany just one from 1.5 to 2% gdp this quarter if you look at the third quarter in this country, we were probably around 4% we've got wages back to 2009, we saw that in the last jobs number it's a consumption story that's working. there's a global backdrop for it >> getting in front of valuation at all time highs, people don't care a whole heck of a lot if we have a 5, 10% correction in the broad market, you'll be saying, mcdonald's, they're expected to grow 7%,
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deceleration from 2017 next year with sales declining almost double digits, that will be the reason why you see the stock back at 115. >> where will nvidia be, high number stocks, they'll be getting destroyed. the 10 to 13% pullback you're talking about, which is probably inevitable, the names that are paying a good dividend, relative to their peer group are a leader -- >> i'm just saying, you're going to look back and say, that was kind of odd. >> they're create new ways to generate revenue, whether it be menu changes or shifts or delivery, they're figuring it out. mcdonald's is a name, a few months back i got it totally wrong, but they've proven to me they're going to get this right. it's trading right now at a, you know, fair value multiple to the qsr space, in my opinion should be trading at a premium. it's a stock i want to own >> this is really important,
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i've been long stocks this year, not that short the s.p.y i've been out 1.5% over the last two weeks as the market keeps making notches higher. >> aren't you influenced a little bit we look at a lot of the same things every day when i see 80,000 calls being bought like we had just the other day in spider, unless you're thinking that's ahead. >> i see irrational exuberance >> i totally 100% disagree >> is this a market for rational exuberance very, very slight -- i don't know about slight but don't moves higher >> guys, the market is going to go down eventually very sharply. >> that is not true. that is not true >> a litany of reasons why the market will go down. at the same time he's saying all the cash is on the sidelines he's also worried about inverting next year.
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>> right there's always something >> the fed minutes told you the fed is going to go in december in my opinion. they're probably going to go three times next year. no question people are fearful that the fed could be a reason that a lot of this could be in jeopardy >> the reason why i asked why you were short the s.p.y., of these stocks at new highs besides procter & gamble, are there others that you like >> you guys like to paint me as some bear. i've been talking about intel for a while, i bought that this summer i have some things that really worked for me but i try to pick my spots we talked about johnson & johnson, huge update today we're talking about proctor and consolidation. mcdonald's has been basing for four months. those are the sort of setups that make sense as trades. i'm not worried about it going up 14% this is a really good trade and i'm going to lay into it i think we'll have a 5% drawdown
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before this year is out. >> if you didn't buy mcdonald's, are there other dow stocks that could join the party hi, rich >> hi, melissa we have an old school surge in the dow industrials on our hands. these stocks have lagged year to date but they are streaking over the last month >> streaking >> we're going to start with chevron, okay? big debate in the energy sector. you have to love this chart, we've talked about it before, a multiyear base breakout from this complex head and shoulders bottom that's going to take it higher chevron, 52-week high. crude still stumbling. energy stocks acting better than the underlying i like to see that we have a similar sort of dynamic with our next chart, jp morgan chase the big boy here look at this, textbook bullish continuation pattern here. what do we see a very survives breakout frdecim
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that flag. there's room for catch-up in jpmorgan similar to what's going on with crude and energy interest rates the ten-year yield can't make a higher high above 240. you say, how can i buy jp morgan chase? the key is the two-year. jpmorgan, bank of america, citi, they are tracking the two-year the two-year is breaking out to a new high it tells me banks like jp go higher finally, heard the name before, intel. we talked about moore's law. we buy more intel here, decisive weekly breakout here the stock is up 8% year to date over the last month it's up 9% i don't even know if that's possible mathematically, but i want to be a buyer of the stock. you're a buyer of ininttel, a br of jpmorgan, a buyer of chevron. there's still time to get involved in this rally >> rich comes over because
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that's the way we roll here. >> maybe he can streak the quad. >> we're bringing the chair in you came up with some very interesting names and some very good chart work over there we standarted the show highlighg mcdonald's, caterpillar, walmart. do you not like those as much as they once you highlighted? >> the nature of the market is expanding, no eroding. today we saw mcdonald's break out from what we thought was consolidation. you're breaking out from a bullish move there the market is up over 60% year to date. i like those strong names. walmart is a sleeping giant. you're just releasing the kraken when it comes to walmart >> walmart is up 25% of the year target is down 18% >> hold on, peter. >> you always find the negative in everything.
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how do i not laugh >> let's listen to dan's question, please >> don't be so sensitive >> consolidating for six months below that gap is it going to fill in that gap? give me a break here, man. maybe it fills in. maybe you buy a spread or something. i don't know >> understood. we're talking about target the xrt, the retail trade more broadly, to your point, walmart is not the rising tide lifting the boats of these beaten-down retail names if anything, walmart is joining the amazon party what i think you do is you buy both growth and value. you buy the walmart surge and the amazon surge and leave those weak underperforming retail names next year. now is not the time to be a hero >> rich, what's the macro chart? whether it's the dollar or the ten-year, what concerns you the most to keep this going? >> what we've seen in terms of the emerging markets, the
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countertrend bounce in the dollar took the starch out of em they imposed their will once again as the dollar fades. i'm very bearish the dollar. the breakdown we saw is to be believed i'm not sure what's been going on over the past year, but point being, dollar goes down, that's the big key here a dollar surge might lean on things >> rich, thank you, rich ross, great to see you in the top five of all the top 20 guests. >> top three >> weaker dollar, good for multiple nationals >> sure. again -- it is, sure to dan's point, walmart is a name, the setup from a cost perspective, it's a nightmare. we hit it yesterday. but i would stay away from that story here even on the move higher coming up, apple sinking since iphone 8 and x launched.
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dan niles says do not hit the sell button yet, we'll explain why after this break shares of delta are soaring. and a major fox fail, the company paying more than $400 million for the world cup rights one problem, the u.s. team won't be there go spain we've got those details. much more "fast money" after this opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. i can't wait for her to have that college experience that i had.
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delta shares rallying after beating estimates. delta's ceo spoke to phil lebeau earlier today about airline pricing and competition. >> we're very competitive. to me it's very much about demand when you have the strength of demand for the product and the quality of the service that the delta team is providing, that is overcoming some of those pricing skirmishes that you read about in our industry. >> airline stocks have been a hot ticket this month, get it, hot ticket airlines are up 10% or more since the start of october tim, you're in these >> it's bull market after bear market some went down more than 20%
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delta is helping the whole sector a buyback and an important guide about three weeks ago gave the sector a shot in the arm it's ultimately a show of what the discipline in the industry is the problem is the perception. delta trades sub-ten-times earnings it's a stock that you stay long on valuation >> which do you like the best? >> ual i liked delta when my man anderson was in charge there united has the room to make some catch-up when you look into what they're talking about when they give the call, they talk about leisure travel eesh o leisure travel is starting to look better going forward. if that's the case, these airlines have room for the upside they throw off cash. >> what is it about?
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>> he brought up a good point. we were talking about united, it kept going down and down you said fundamentally you're okay with it but at some point the airlines were tough to hang in with that trade the momentum on today's announcement gives these guys more room to run >> i agree, delta number one pick american air is my final trade last night these are names i stick with for at least a two- to three-month trade. >> the payment stocks, paypal, square, visa, all trading as all time highs, american express says it's weathered a perfect storm over the past few years. morgan stanley upgrading paypal today. should you double own on these stocks, dan? >> paypal is pretty different than american express. that stock is up 70% square is up more than 100%. investors have gotten hip to the fact that there is a very strong secular trend. where american express and visa
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and mastercard play is a little different, but they're benefiting from a lot of the same trends. american express, earnings are set to rebound up 10% next year, market multiple at 16 times. i think you're going to see $100 in the stock over the next few months the prior all-time high is 96 1/2. to me that breakout was powerful i think the valuation and then the secular trends among the whole space, i think you're going to see this thing trade 10% higher over the next two months >> the reasons why we were talking about bitcoin and crypto, the payment system is the same concept happen the world is not banked and yet is in a position to make payments through paypal. i think the stock deserves a better multiple than it's priced at right now up 70% year to date. it's rich. >> they also have $6 billion in cash, no debt. paypal is a name, it trades at a
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rich multiple, and it should they need to go on the acquisition hunt it would be great to see them buy maybe some private software type companies they could integrate in their platform. stripe is an example these are platforms that have great technology solutions, et cetera, that they can bolt on, and i think people would really accept that. >> don't be afraid to still own visa, by the way the payment volume is off the chain. when you look at what's going on in china and india, their growth numbers are spectacular. the u.s. is still 50%, but they are growing internationally at unbelievable levels. that growth is worth owning. ahead, retail stocks on track for their worst week in two months one trader thinks it's about to get a lot worse. i'm melissa lee, you're watching "fast money" on cnbc, first in business worldwide meantime here's what else is coming up on "fast." ♪ x marks the spot
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>> dan niles says people are missing something big about the new iphone x plus -- ♪ let me here it -- disrupt >> that's what uber and abnb were supposed to do to auto and hotel stocks a funny thing happened on the way to the future. 'll llstocks are soaring wete you why there could be more gains ahead, when "fast money" returns
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apple down 3% since the company launched its new iphones a month ago to the day one group of tech-related stocks has soared in that time. dom chu breaks it all down for us, hi, dom. >> reporter: melissa, tech gets a lot of attention, even though
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my cracking voice may not give at it credit it deserves it is the biggest sector in the s&p, also the best performing sector, we've got that going for us, which is nice. but it doesn't been exactly raindrops on roses and whiskers on kittens the red-hot semi industry has been on a tear since early 2016. the semiconductor etf has gained 35% year to date it's also up 8% just over the past month at the same time, you've got another top tech performer in apple, up 35% this year. if you narrow in on the last month, it's been a laggard, down 3% in that time frame. apple has been one of the biggest drags on the dow over the course of the last month or so semis are on a 12-day wing stre winning streak two tech stories that play out very differently over the short term >> thanks, dom, feel better.
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>> reporter: i'm out of here >> apple had its high in 2000, we're talking about strong performance across the board in technology, apple has been sitting out that rally our next guest says now is the time to buy. dan niles joins us on the phone, dan, great to have you with us i hear you bought apple, more shares >> yeah, we did. i mean, apple sort of has this pattern, whether it makes any sense or not, and i would say in general it doesn't, but it tends to rally into these product launches if you kind of go back and analyze the stock, it's a pretty predictable pattern and tends to struggle on the other side of it for a month or so. from a trading perspective at least for the next month or so, until october 27th when the iphone x, you get to preorder those, the stock will probably do well. you're seeing analysts come out every day and cut their numbers on apple and the stock is starting to move up anyway
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>> so you're looking at this as a real sort of "fast money" kind of trade, holding it for a couple of weeks, not even waiting for the iphone x >> the point is that the stock reacts well. let me put it to you this way, and i've said this before. over a longer period of time, and by that i mean like once you get out past this launch, i have some real issues on how will apple will do, how well is a thousand-dollar iphone going to sell you've seen estimates come down on apple over the last year and the stock is up 35%. everybody has convinced themselves in a raging bull market, the s&p was down once in the last 20 months, that apple is a great buy, and nothing's going to change until the iphone x comes out and people figure out, hey, are you willing to spend $1,000 on a new phone or not. from a short term perspective, that's why we own it the long term, which you didn't
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have ask me about, has more concerns >> in the past you've told us about some of your supplier investments, apple supplier investments, momentum is one, that stock is up 50% are you still holding on to lumintum >> we are. that's the most exciting thing about the iphone x, the augmented reality capabilities and face i.d you can't do that without the lasers provided by companies like lumentum. the biggest issue with these stocks is they're in the optical space. as you know, juniper obviously preannounced tonight after the close. the core business is obviously
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still challenged if you look out to 2018, i would much rather own the 3d laser suppliers into apple rather than apple itself >> dan, your apple call is obviously pretty short term. it sounds like you don't even want to wait around for the reviews of the iphone x. the reviews were very disappointing for the 8, they were disappointing for the watch. are you also worried that the supply may be really constrained with this thing so you may have a pushout of a lot of iphones given all the reviews, if this one's not good >> yeah. but when you think about it this way, i don't think the reviews were very good going into the launch that we had in early september either so why launch the 8 when you've got the x sitting out there, you're not putting them both out at the same time but the stock ran into that. we were long going into that launch as well, turned around and sold it, shorted it, actually, waited for it to drop and bought it back the problem with apple is the
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problem with the entire thing, we're in a bull market, people are trying to find cheap stocks to own you're right, the reviews have not been good. i would argue they weren't that great going into the launch in early september either and people didn't care, they just kept buying it because they wanted to buy something. >> dan, the stock might have run into it, but the stock has acted very poorly since the reviews came out, the weekend after the launch so that's what i'm really talking about. it was the same thing for the watch. it's just bounced over the last week, but this could be the sort of -- what i'm trying to get at is, if our viewers are watching this show and they're going along with dan niles and they don't sell the day before the phone comings out aes out and ts are bad and the supply is constrained, they may see themselves looking at the low 140s that's what i'm trying to get to >> yeah, i completely agree. >> okay. >> this wasn't supposed to be an apple call but yeah, i mean, that's the way i'm looking at it. we have a lot of other stocks we like a lot better.
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we like facebook, which we own, we think that will do great, results are good we actually own some netflix we own some alibaba. there's a lot of names in the tech space, big names that we think will do quite well apple just doesn't happen to be one of them. >> all right, dan, always great to speak with you. >> all right, good to speak to you too, melissa >> dan niles, alphaone capital partners does it apply this time with the phone split, 8 and x split >> i can understand that you use these opportunities on cells, if you're already in the stock, to add to it. i don't know that i want to play the game, i think that's sort of what dan was talking about, timing the selling, am i going to sell the top and be able to buy this thing back. i own the stock, i have for well over a decade. i would probably buy it if i got enough of a pullback katie from morgan stanley was out here, she raised her price
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target and also raised her unit sells of 2 million for the iphone, and talked about the watch, surprised how good that is she's always talking about retention. retention level is something people don't really get. >> you're bringing up great points in terms of the momentum stock and how it will trade. the reviews will have to be awful to not be a fantastic refresh and release for these guys >> they really don't have to be awful. it could be as simple as the facial recognition doesn't work. and then it's awful. it could be that simple. that's what i'm getting at this is supposed to be this huge leap for a company that literally for four iterations, their iphone -- [ simultaneous speaking >> there's pent-up demand, if the x is poor they'll go to the 8. >> there are people on the sidelines waiting to get a phone. >> guys this 8 was the most iterative upgrade.
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>> it wasn't a big deal. >> but how many people own a 6 and really need to upgrade >> we had siri gate, we had map gate >> in the end they didn't mean anything >> no, see, i'm telling you, you're wrong about that. >> okay. you can tell me i'm wrong. fine >> if you think about the stage of smartphone adoption globally, that's what happened here. it didn't matter that the antenna didn't work or maps didn't work or siri didn't work. >> look at samsung this is probably the best tech company in the world >> you can have fires in the pans -- >> this company slowly raised the price on all their phones, 50 bucks on the 8 and stuff like that if you want the 256 gigabyte iphone it will cost you $1150. i'm going to get the 11, when they get the facial recognition right. >> how about the services we like talking about there's a different reason why you're buying apple and why it
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was growing into possibly a better multiple. >> it's ripe for an upgrade no matter what,whether it's an 8 or an x, you'll see a lot more upgrades it's super important to keep that in mind when you talk about bumping up sales, et cetera, by 2 million, the number is going to be fine the stock will go to 175, 180 bucks, and you probably take it off. that's the runway here it's all about the fact that this is a very aging install base with a massive sort of upgrade tail to it that could last a quarter or so still ahead, fox's $400 million bet on the world cup falling flat after the u.s. men's soccer team failed to qualify for the big time we'll tell what you it means for the media giant. plugs ts the so-called shar economy is taking off but the stoc ty'kshere supposedly disrupting are also surging, we'll explain why.
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welcome back to "fast money. ride sharing company lyft is celebrating a new milestone, half a million rides deirdre bosa has more. >> reporter: hi, melissa
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this is really a milestone that speaks to the company's growth this year. half a billion is still tiny compared to uber's 5 billionth ride marked earlier this year. but remember, lyft only operates here in the u.s. when you look at the all-important u.s. market, lyft has been making major inroads. take a look at this chart of market share lyft has upped its portion this year to 25%. it's done so by infringing on uber's territory which was at 80% of the market at the start of this year, now sits around 70%. keeping that momentum is not going to be easy while uber has had no shortage of distractions this year, it does now have a new ceo and it may be raising a huge amount of money from softbank. to compete, lyft may have to raise money itself and spend more here is what the company's co-founder and president told us in an exclusive interview today about its path to profitability. >> in terms of profitability, the focus for the business right now is creating the most long
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term value for our shareholders. that doesn't necessarily mean optimizing for profitability today. if we were doing that for today, we would be profitable today we've raised $2.5 billion. we have the majority of that in the bank today and we're making investments using that capital in what we believe will be a much more valuable future. >> reporter: melissa, i also asked him about ipo plans now that uber has said it will go public by 2019 all he said was they will do it when the company is ready. back to you. >> thank you, deirdre bosa in san francisco. despite companies like lyft and airbnb attempting to disrupt the travel space, those companies are at an all-time high. hilton up 51%. gm, an investor in lyft, up 42%. despite the rise of the sharing economy, are these stocks undisruptable? >> look, the hotels in general are. the millennials, the way they
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spend has seen a massive shift marriott is a company that's been doing extremely well. for me, they're structurally intact travel versus buying items or buying, you know, different shopping trends. >> for airbnb? >> airbnb has had a gun to its head, if you look at new york city, you can't stay at a bnb, there's been restrictions. travel, staying at a higher end destination for a lot of these people is an important part of their lifestyle. >> i would rather stay at a, i don't know, name the motel chain, than an airbnb. >> i've stayed at two airbnbs this year on family vacations, it's been seamless, it's amazing. i struggle at the idea of staying at a marriott in london, i stayed at an airbnb.
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>> if you're going to hawaii, you want to stay at a house. totally different. >> this ride share stuff is working the way millenials operate their lives. they're not going to go on marriott.com, they're going to go on their tricked-out iphone x. >> investors overreact to these secular trends and take this view that suddenly companies are dead a company like gm is absolutely competing in ev, absolutely competing in ride share, they own shares in lyft they're leasing rooms, they're very capital efficient, they've changed their game this is the whole story. don't count these industries out. these legacy companies are thinking with their head in the ground >> don't you think it's weird that investors woke up to this, gm, a month and a half ago and the stock is up 25%? you were sucking wind with it
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for an a couple of years >> not really. if you look at this stock -- no. dan, first of all, no. you don't know how i invest this thing. it trades at six times multiple with a 6% dividend yields. that's well worth owning, and it was well worth owning especially when it got cheaper to buy more, because people assumed this -- >> especially with the utility vehicles and the suvs on top of the pickup truck line and all the rest of it that actually has been kicking it, not just for ford, everybody looks to ford, but you go to gm, they actual produce more trucks than ford, but everyone puts the ford f-150 against the gm >> are you skeptical that stocks woke up in the last month? >> dan said this in the prior segment, he said investors are finding reasons to justify owning cheap stocks. that's what happened with gm, deutsche bank -- >> autonomy is going to be a big thing, they said i could see this having a 15 multiple.
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>> you're right, i agree, general motors, the stock took off when they started talking about electric vehicle investment i'll tell you right now, again, that's a -- [ simultaneous speaking >> one at a time, please >> walmart is talking about going up against amazon. they have a small revenue percentage of the pie against amazon but they're talking about the. any company that's catching wind of that and trying to get that tech millimeter on a tech stock, i'm with you on that gm i would stay away from. but marriott is a totally different company. >> can imake one point quickly i would rather own gm with its market cap nearing $70 billion than tesla at this point i mean that seriously, because i actually think -- what i'm saying -- >> that's not a huge stretch >> it is to a lot of investors as of six weeks ago when tesla had the market cap
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if you're a gm investor and you believe in this emerging tech theme for them, this is a company that has $140 billion in sales, with a pretty fat dividend yield, a pretty good management that pete likes, you want to invest in this thing for the long term. >> you weren't saying that six months ago >> what i'm saying is -- >> last word i'm sure we can fight all night. >> we may. >> you might i'll leave but you guys can continue. still ahead, retail on pace for its worst chart ever we'll see if dan still thinks of it that way. more "fast money" still ahead. ♪
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we've got a market flash on at&t julia boorstin is in l.a. with the story. >> reporter: at&t is reaffirming its guidance, mid-single digit adjustment growth. the company says devastating hurricanes and earthquakes in mexico significantly impacted certain regions. with damage decreasing third quarter consolidated revenues by nearly $90 million and pretax earnings by $210 million or two cents per diluted share. at&t saying it expects further reductions in q4 as it continues to assess damage at&t expects to add 300,000 directv now net additions, down
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from the nearly 500,000 new subscribers to its streaming bundle that it added in the prior quarter, q2. the company saying it expects total u.s. video subscribers to decline by 90,000 in the quarter, melissa >> julia boorstin in los angeles, thank you >> i sold it last week at 39 i think the time warner closure will be a big catalyst for the stock. i don't think today's news is particularly damaging one way or the other. going back to the apple conversation, let's see what the uptick is for these high end phones the pixel is coming out, that sort of thing. that could affect its subs in q4 >> i would never buy going that makes me think of dividend yield. when people buy, that's a bad reason to buy. so no. t-mobile and sprint talk, all that's been going on there for months now, that's the been incredible i'm still in both names because that will be a very interesting
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number probably by the end of november >> i'm long the name the dividend keeps me comfortable. it's a range bound stock there's a challenge around 39 1/2. they're bringing out their broadband, their high speed broadband. it's a benign pricing environment right now. >> does the debt ever bother you when you looked at the debt of an at&t, for instance, are you ever staggered when you look at that number? >> not in this environment, steve. that's why they're paying a nice dividend this m&a element is big. ahead, retail getting crushed, tracking for its worst week in two months how much worse can it get? our traders have clues, more "fast money" still ahead stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most.
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stay with me, mrs. parker. that's the power of and. looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
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whentertaining us,es getting us back on track,hing? and finding us dates.
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phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. kroger jumping hire after the potential sales of its convenience stores but options traders aren't buying the bounce dan? >> the stock opened up 7% on some rumors they may sell their convenience store group. look at this chart, it literally spent the whole day going lower, closing up over 1% after the opening, the stock was trading $21.76, a dollar higher when the stock closed.
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buying to open 25,000 of the april 21 puts at $1.85 those break even at 1950 down about 12% from the trading level i just wanted to show you what's going on here. this stock is down 40% obviously on the year, accelerated after amazon's purchase of whole foods. this was actually an earnings miss then we had that so to me this is really bad action i suspect this trader is rolling a hedge against the long position >> check out the full show "options action" friday, 5:30 p.m. eastern time. next, final trade. i think it's terrific. your kids go to college and you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution.
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good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade.
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welcome back to "fast money. president trump speaking about tax reform in pennsylvania to a group of truckers moments ago. let's get to ylan mui in d.c. for details. >> reporter: melissa, the president's message is very clear. in fact it's printed on that 18-wheeler he's standing in front of as he's giving his speech it says, win again, lower taxes, bigger paychecks, and more jobs. >> nothing gets done in america
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without the hard working men and women of the trucking industry do we agree with that? thank you so much. for the job you do when your trucks are moving, america is growing do you agree >> reporter: president trump said he still plans to make a push for that trillion dollar infrastructure package he also talked about the importance of repealing regulations that drive up the cost of energy and he referenced the record highs in the stock market. he also is expected to talk about in this speech the importance of repealing the estate tax, lowering the passthrough rate as well the real crux of their argument here is that by lowering corporate taxes and by moving to a territorial tax system, that will translate into higher wages and more jobs for middle class workers. that's what they need to do in order to sell this bill to the
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american people and sell it to the public treasury secretary steven mnuchin will be joining cnbc tomorrow morning on "squawk box" at 7:45 a.m. perhaps we'll get more information on the tax plan then >> thank you, ylan mui in d.c. pete, i think it's connected the dots, if we give corporations breaks in taxes will that result in higher wages or will we see buybacks, dividend increases >> i don't know why we don't see a little bit of both dan is shaking his head over here i think we will see a little bit of both. i think we'll see the market fly higher but it's still not priced in >> final trades. back to you, pete. >> pete. >> sorry intel. goin' higher >> facebook, second best setup in f.a.n.g going higher >> there's no tax reform in
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2017 >> big baseball game in cleveland. go yanks emerging markets breaking out at 46 after five years, eem >> i'm melissa lee thanks for watching. see you back tomorrow at 5:00 for more "fast money." don't go anywhere, "mad money" is jim cramer is up next . 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, where can to "mad money," welcome to cram america. other people want to make friends i'm trying to make you money. my job --. it feels lik

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