tv Fast Money CNBC October 12, 2017 5:00pm-6:00pm EDT
in 2008 to '10 >> i don't know if that rises to being the kind of systemic landmark victim at the peak of a cycle. we'll have to see. >> grant has made his feelings clear on the topic for the time being. that does it "closing bell," michael, thank you as always "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," media may hum on the street, at&t having its worst day since the financial crisis a number of media stocks tumbled today. craig moffett says there's another name that could see even more pain. plus adam jonas is here to tell us what he thinks general motors and ford need to do to catch up to tesla and bitcoin now worth more than
$5,000 jamie dimon may be changing his tune first, jpmorgan and citi reporting solid earnings but investors were pushing the sell button all day long, citi ending down 3.5%. given the quality of the earnings from citi and jpmorgan and the reaction we saw in their stocks, is earnings season going to shape up to be a sell the news event with stocks at record highs? karen? >> i agree, both earnings were very impressive on a lot of fronts if you really wanted to you could find things to pick out, as, all right, maybe not the best the only thing wrong with those earnings is both stocks ran up 8% or so before earnings is this market pricing in too much you kind of need to be worried i have positions like an alphabet, like a facebook, that have come back a lot at new highs now. and so i gotta think that pretty
good earnings are priced in, i gotta think about that how do we hedge against earnings, even if they're good >> exactly, the earnings were good domino's pizza, the earnings were good, that stock also sold off. it's not just the financials here >> the financials were not just good, you would put them in the great category i look across the board at what jpmorgan and citi came out with, long growth. yes, there were areas, but we knew the areas that were going to be slow because the bond market and low volatility. that's why they're revenue numbers were great, their earnings numbers were great. solid numbers all the way. you said they were down almost all day. that wasn't 100% true. >> they were up like -- >> citi hit new highs, it hit 76 before this pullback it felt to me like people said, you know what, i'm going to take a deep breath and take some off the table. that's what it felt like today, people taking a little bit of profits and saying i'm going to
out for a little while that creates opportunity >> in tells me of citi, citi made a 52-week high. all the metrics they talked about i thought were not great but very good, we're splitting hairs here what concerned folks in citi, and maybe karen can push back on this, nonconforming loans are up to 2.26% that means people not paying their loans back as quickly as a year ago when the number was 1.85%. that's a number that concerns people citi said book value, they being citi, book value in the stock market is effectively $79. i still think citi doesn't deserve to be at a discount to book i don't think it deserves to be where jpmorgan is. it deserves to be somewhere between the two, which puts you in the 85 or so dollar stock >> tangible book value is lower, though >> yes, it is. >> both metrics are definitely lower than jpmorgan for sure >> you guys have been all over this trade citi group is trading $66 about
six weeks ago, it traded $76 this morning the reversal makes sense when you consider a lot of potential uncertainty, as far as regulations, as far as tax that's going to be the thing that drives a lot of these bank stocks in the months to come one point, we've been talking about the rotation in the financial stocks over the last few months this has happened since a lot of the f.a.n.g. stocks did top out in late july, early august, that sort of thing. if you see money start to come out of bank stocks, energy possibly also a bit in the last couple of months, now that facebook is back at its highs, google is at its highs, amazon, all three of those stocks topped out on their earnings. let's see where that money comes back to. if those stocks can make new highs and drag the market up with it. because listen, we've seen a lot of rotations, more cyclical names, industrials, that sort of stuff. to me, i think earnings season
will probably be an opportunity to take a breather you asked that question out of the gate, what do you do in an environment where you think we can consolidate recent gains you can sell calls against stocks that you own, take in premium, that sort of thing, even in a lowball environment. >> you have to ask the question, yesterday's show, you weren't here yesterday >> i missed a eed you, i thoughu you guys >> we started off with these all american stocks at record highs right now. so these stocks are record highs right now. are these all candidates for a big pullback even if the earnings are good in this environment? boeing, mcdonald's, caterpillar, walmart. >> honeywell, i'm sure you mentioned that as well clearly they would -- >> based on what we've seen. >> if in fact the s&p is on the verge of something, which maybe karen was alluding to. i think they are candidates. i will say this. people knock those stocks. all the stocks you mentioned, on valuation now for quite some time and that's been a fool's errand,
quite frankly. are they candidates? yes, they've been candidates before and it hasn't panned out. i'm not certain the s&p is in for anything again, down 4 1/2, 5 handles, still within the whisper of an all-time high. the caution signs are not there quite yet. >> you know, and i think if you're looking for anywhere where we've seen more rotation towards, i would look to tech, i would look to the semis. we had a lot of paper today in applied materials, which plays right into the semi space. intel has been very active micron had this huge runup even with the fact that micron floated up the huge secondary at $41, the stock is hanging in there. i mean, it's staggering to me that it's traded as well as it has. you get value, you get a great balance sheet, and you're getting growth that's a great combination >> one more thing, underlying this rally in the last couple of weeks, is a positive momentum on tax. that might be stalling, or worse
than stalling, maybe heading the other way. that spooks me a little bit. i was more optimistic ten days ago than i am now. >> will you take on some more protection in your portfolio >> yes >> it feels to me, the way you're talking, something has changed. >> yes i've got to think, all right, how can i hedge, sell some calls, you can buy some puts or you can buy s&p protection, which i think is cheap >> but you wouldn't sell your positions at this point, or trim >> the only one i did trim was gm i'll get to gm a little bit later. >> despite the selling in jpmorgan and citi group, our next guest is here >> we want to buy this dip in these bank stocks. i'll give you two reasons why. number one, rates. particularly the two-year yield. things were very sensitive to what the short end is doing. i brought along one chart here we overlaid the bank etf with
the u.s. two-year. this is basically the same chart over the last 18 months. two-year yields hit new highs today. that's a nine-year high. we think ultimately that's good for bank stocks, you buy this pullback secondly, when we look at momentum, last week you had about 80% of the bank sector make a 20-day high historically when we get a surge in new highs, that's consistent with forward returns over the next three, six, 12 months again, two yields up, momentum under the surface, we think you buy this dip i'll give you two stocks here. the first of which, jpmorgan, remember, jpmorgan was a $50 stock 18 months ago. it was 96 this morning we think there's short term risk here to 93 but ultimately higher, 110, 113 is our target. and then lastly, let's go to a
regional this is fitb, doubled over the last 18 months sideways modifist of the year, starting to break 27, 28 use any weakness here to your favor. there's 34 analysts that covered this stock there's only three bisuys on it. >> i'm not the keeper of the leaderboard, guys. does chris come over >> he's in the mt. rushmore. >> mt. rushmore gets him a seat at the desk. thank you, arielle, for bringing the chair in >> who's up there on rushmore, all those guys chris merrone, rich ross the list is long >> it's a big edifice. citi was the best performing bank stock in 2017 what did you think of the damage done today >> it's a sell the news type of
event. it's october 15th, it's hard to fight this the next eight to 12 weeks. remember, when ten-year yields where at 201 a month ago, citi group never went down. this stock has been defying the message of the market all year that's a positive. ultimately the pullback in citi, jpmorgan, bank of america, use it to your advantage >> chris, i'll play devil's advocate >> sure. >> don't we like that game on this show? pete said earlier, citi made it for 52-week, 76 and change, closed on the lows, traded i think north of 40 million shares typically trades 14 million shares you have an outside reversal date, perhaps. does that give you any concern >> if the space was more crowded, i would typically say yes. i have a hard time saying banks are overwhelmingly overowned
here banks have fewer buys than retail, fewer buys than energy that doesn't make a lot of sense to us. the sell side is ultimately on the wrong side of this and you would want to use days like today to get ahead of that >> i like that you use the two-year as the underlying comparison versus the ten-year spread which a lot of people use as a proxy i like that you picked that. but why did you pick that? >> we talking f.a.n.g. stocks with our clients the sense or anxiety that we hear is how can you own these things in an environment where the curve is flattening? actually, it's not so much the shape of the curve it's how the curve is doing what it's doing and the curve is flattening right now because the short end is going higher. two-year yield is going higher that's far more important for bank stocks, the same setup what we saw from 1994 to '98. you have to go back 20 years to find a multiyear period where these things worked. don't let a bad day or a bad week or a bad month change the call use it to your advantage >> i'm still thinking about the
first comment you made, we don't want to fight that in the next few weeks. what is that based on, season seasonality, it doesn't matter what the stock market has done prior? i would think in the last quarter of the year, people have made their year and they don't want to risk, given some of the potential land mines out there >> believe it or not, the stronger the yea historically, the stronger these eight weeks or if anything, the market has gotten broader homebuilders who haven't been with us for five years, they're with us. semis continue to grind higher it's hard for me to say this market has narrowed so dramatically >> all right chris, thank you >> thank you >> chris merrone coming up, one of our traders is bargain hunting we'll give you the name. general motors hitting a roadblock after shutting down one of its plants in detroit it could be good news for
another auto stock and media mayhem on the street fears of cord cutting and a nasty dispute between viacom and charter sending shock waves through the space. what it could mean for the future of tv (honking) (beeping) we're on to you, diabetes. time's up, insufficient prenatal care. and administrative paperwork, your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you too. at optum, we're partnering across the health system to tackle its biggest challenges. at optum, we're partnering across the health system when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions,
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welcome back to "fast money. a market flash on spark therapeutics meg terrell is in the newsroom with more. sounds a decisive vote >> reporter: pretty decisive, 16-0 in favor of this experimental therapy from spark therapeutics, the stock had already run up quite a bit, it was expected to be a positive panel. a sparks drug treats a rare inherited form of blindness. there were a lot of patient testimonies here in front of the fda today, talking about how much this therapy has changed their life in terms of bringing back their sight it doesn't make their sight perfect but it is widely expected to get approved by the fda. that decision is expected by january. the next question will be the price, millenniuel, people are g as high as $1 million. it is a rare disease >> $1 million for a course of treatment but it will cure the blindness. >> reporter: it will cure it
significantly and it's expected it would only have to be one time >> thank you, medical terrell. >> wow >> wow >> that's a question for an ethics class, doesn't sound like a product you would actually choose >> this gets to a whole other question, when we talk about drug pricing in general. what is that worth, what is that incremental quality of life worth in dollar amounts? especially to the insurers >> and the sample side of, has this been something that anybody would ever look into from an acquisitions standpoint? it's a small market cap company. is this drug begin enough for somebody to actually want to look at spark and say, we need to followed them in with the therapeutic side of our business >> right >> it's an interesting thought this is certainly an absolutely unbelievable thing for those suffering from it. but if it's a small sample set, how big is this actually valued at our move of the day, retail etf xrt is on track for its
worst week since january big losers here, rite aid, jp penny, all getting crushed today. will it get worse before it gets better, karen? >> i was trying to figure out what exactly happened today. i'm not quite sure there was j-jill, that's a tiny company. amazon traded okay, walmart traded okay. i don't know if there was a nike flash sale, people were concerned about that i'm not sure what it was we talked at the top of the show about some sectors having too much priced in already this certainly isn't one of them, i think. i mean, who knows? but if i had to pick something, you know, target actually looks interesting to me. foot locker is so cheap but i've been burned, i can't pull the trigger there, but god, is it cheap, i must not be alone, people say i can't own a lot of retail right now
>> walmart still managed to trade higher again despite the carnage in the retail space. talk about stocks setting up with a huge run. their earnings calendar is a little bit shifted so it's later in the season. but are you concerned? >> goldman sachs actually pulled off conviction buy on walmart today. who can blame goldman sachs? this run has been absolutely spectacular. the buybacks was a huge number as well. are they competing my answer would be yes, i think they're doing a great job. the debt acquisition was one piece. they've been competing online and got more aggressive and efficient. target is on their way to doing the same thing best buy is doing the same thing. home depot is doing a great job as well. home depot, their online sales were up 23% last quarter those that are competing and winning online are beating amazon at their own game there's not very many on that list >> we had a whole conversation -- what's today, thursday, right? tuesday, we talked about, we said when is the west dbest day
plant a tree is 20 years ago, the second best day is today what do you want to do with walmart, let it play dead? at the end of the day we said, target, if you like walmart at current valuations, all of a sudden, magically, now they have some relationship with the google, who is now called alphabet, that stock closed above 60 for the first time in quite some time. if you like walmart at their valuation, in my opinion you have to like target as their discounted valuation pete and i did the same thing at the same time. still ahead, general motors and tesla both dealing with some car trouble today. morgan stanley's adam jonas says don't pump the brakes just yet i'm melissa lee, you're watching "fast money" on cnbc, first in money worldwide. meantime here's what else is coming up on "fast." media stocks are getting crushed again, a top analyst says the pain is just starting for one giant in particular.
decision, its hamtrannic plant plant will be having permanent layoffs of 200 or fewer workers as they bring down production rates at that plant, at the same time they'll be idling the plant for the final five weeks of the year this is a plant that makes cars, the impala, the volt, the ct-6 car sales are down how far are they down? this year general motor's car sales down 19% the industry overall is down 11%. bottom line is this. very few people are buying these. they're moving into crossovers, suvs, pickup trucks. right now for general motors, cars alone make up 24.7% of its total sales. we should also note that as you take a look at shares of general motors, this is a stock that has moved up dramatically. i know you'll be talking to adam jonas shortly about what it might do with electric vehicles and autonomous drive vehicles. melissa, i want to quickly
transition into tesla, there was some news late in the day about tesla, announced the recall of 11,000 model x suvs. this is to repair a cable that is broken in the rear seat there have been no injuries associated with this it's a very small recall relative to other release we see in this industry but again, 11,000 of these model x suvs have been recalled worldwide. tesla believes that they can repair most of these vehicles with a mobile unit actually going out and working on these rear seats melissa? >> that's a vast percentage of the model x's produced tesla delivered 8,000 something? >> reporter: i think so, you're correct about that in terms of its overall production of model x, that is not a huge percentage of it. >> okay. >> reporter: it's worth noting but again, the one thing we always keep in mind, melissa, when we report on releascalls, y
recall gets a lot of attention when it comes to tesla in comparison to other recalls, this is not a huge deal. >> phil, thank you adam jonas covers morgan stanley. let's kick it off with the tesla recall, where phil left off. the number itself is very small. in the context of a company that is trying to dramatically ramp up production, the ability to have quality control and maintain quality control, does this flag some concerns for you? >> it would flag it if they had a problem that didn't recall it. this is a customer service opportunity, good companies can take an issue, and i think phil categorized it very well, not a significant issue, and to try to have a good customer experience. recalls are just a fact of the auto industry, they'll always happen, they're complex devices,
even electric cars tesla has their pecking order of challenges they definitely care about quality but they've got a lot of things above the pecking order other than a recall. >> the gm plant closure, that plant makes the volt >> the volt with a "v. >> does that say anything about demand of what gm is putting out when it comes to evs >> no. the volt is a long distance hybrid, it's got an internal combustion and a battery it's certainly very different from a tesla demographic and that kind of buyer it's also different from where gm has taken their electric program with the volt with a "v." people just aren't buying cars
anymore. >> general motors going from 36 at the beginning of september, to 45 where it is now, the bigs move wasn't seen in recent years, arguably. has it gotten a little bit ahead of its skis? >> we're overweight general motors, our price target is $43. we think it's gotten a little bit ahead of its skis, a little bit. we think the market has caught up to -- it's giving the detroit oems a little more respect, they're landlords of mobile real estate properly positioned, their vehicles could capture some of that data, 2 billion miles per day. gm has some talent, skills inside the company that could be positioned, and we spoke on this program last summer, about some of the strategy alternatives that auto companies are thinking about all over the world to acquire talent very difficult to acquire talent when you pay someone in gm or
ford stock but if you create a new entity, you have talent acquisition, you see where i'm going with this. this is important. it's not unique to gm. gm is hung up on the view that it's just them arguably they tempered the enthusiasm a little bit, there's truth to it but every auto company will have to do the same thing. >> you said it's a little above its skis, seems like some of your peers in the last month or so got excited about the ev or autonomous opportunity you're talking about something that's going to happen over time what's your time horizon that investors should get focused on that as a real big opportunity for gm for me it felt like that move from 40 to 45 over the last few weeks was all this excitement which is going to play out for years. >> it's a journey. it's going to play out over years. but we like to think of the journey, there's an on-ramp to that highway that on-ramp is now. there's a very limited window that's opened up here, folks,
right? i haven't been asked for my clients about auto credit, used car prices for the last three months no one seems to care anymore, right? it's all about tech and processing and super computing and stuff. but really, the market is still good the credit environment is still let's say open and accessible, if, you know, flattening a bit that's not going to last forever. if you're on the board of any of the companies you mentioned, the auto companies, you know you better make hay while the sun is shining because it's hard to make deals, do partnerships, when you're hemorrhaging cash and your stock might be 50% lower. that window is going to close at some point >> adam, thanks for stopping by. adam jonas, morgan stanley karen, you're in gm, are you concerned? >> i trimmed some gm, it's up 30%. the positionis 30% bigger. you've got to take some off the table. it's hard to pound the table here you know, it's interesting, adam
saying we're at, whatis it, overweight >> right >> but the price target is lower than where the stock is. you have to be prepared to be in it for a while and ride a little bit of volatility. >> pete? >> i've been with gm for a while as well, i continue to like it i haven't trimmed any yet, i would rather sell some upside calls and buy some puts to the downside, give myself more volatility to the upside and hold on to the stock one of the things that stands out to me is, car sales are down, that's terrible thing, down 19%, but it's 24% of the business the real business is in trucks, it's in suvs it's in the big money area where they're making money and they've got the margin i like that business model >> how about tesla >> you have massive double top bk outline a couple of weeks ago, he shorted the stock in the mid-370s or so tesla is in an interesting period, it has to prove itself once again it did great over the last six
months the fact that it failed at 385, 390 level is concerning. personally i would rather wait for pullback down to that 320 level than to flip a coin right here, which is by the way what i think you're doing >> going back to gm quickly, you guys caught this sharp move over the last couple of months. my last question to adam was really about, what was this last person, 10%, was it excitement about tech if it's going to play out over years, i think you wait for that q3 report, you hear what the company has to say you may see the stock back below his price target that would be a good level to start building a position for 2018 as some of this stuff starts to play out still ahead, $50 million that's how much one trader is betting tech stocks could crash in the next year you won't believe how bad they see it going at&t tanking today, posting its worst session in ten years as the threat of cord cutting rises. media analyst craig moffett says it's about to t lowoe gea t rs
angeles. hi, julia. >> reporter: viacom and charter ended the day 2.5% lower vie viacom is warning consumers that the 16.6 million subscribers to charter's spectrum service could see a blackout if charter, which is the nation's second largest cable and internet provider, drops all 23 viacom channels, viacom could lose 16% of its annual affiliate revenue. viacom says, quote, despite our efforts charter continues to insist on unreasonable and extreme terms that are totally inconsistent with the market we're making every effort to reach a new deal charter's actions may force a disruption in customer service in may charter moved all of viacom's channels out of its
basic tier, making them only accessible to its gold tier. cbs, disney, discovery, and comcast all falling on concerns about the rise of cord cutting at&t shares also down today about 6% after the company warned yesterday that it would report the loss of 90,000 u.s. video subscribers in this quarter, pointing to intense competition in the tv market as well as the impact of recent hurricanes at&t actually added 300,000 subscribers in the quarter to its directv now, its lower cost streaming tv bundle. even that digital growth couldn't compensate for the traditional tv losses. >> let's bring in craig moffett, great to have you with us. >> good to be back >> how do you parse out that at&t news? the last point that julia made was the most interesting to me, that is the growth in the lower cost bundle didn't make up for tv subscription losses
>> so there's a lot going on let's unpack it a little bit so they lost 390,000 traditional subscribers. for them, traditional subscribers isn't just directv it also means their u-verse telecom platform we don't the mix between those yet. either way, that's a very weak number that's what really scared people but they've been incredibly promotional. and in being so promotional, they're not making any money on these directv now customers. let's put this in perspective. they make about a $60 a month gross margin, gross contribution margin from a directv satellite customer their regular price ott service, directv now, that they sell for $35, has about $31 of programming in it. after costs, it probably loses a dollar a month and they're
selling that for $10 a month you're now selling it at $21 below cost it's pretty obviously a bad trade, when you're trading $60 per month customers for negative $20 a month customers. so when you see that mix, nobody's pleased and it tells you that they're really struggling, even when they aggressively discount their satellite tv service, they're still not getting customers to sign up. and that's a problem, right? they just bought this business two years ago. they paid eight times ebitda for directv. it's not crazy to say today it would be a four times ebitda business >> it sounds like a very dire situation they're in do you think there is -- i mean, is it possible they cut the dividend >> look. telephone companies don't cut the dividend when they run out of money telephone companies cut the dividend when moody's and s&p tell them it's time to cut the dividend, right? so what you really have to watch is their credit ratings.
right now they're triple b-1 after they close the time warner deal, it's expected they go down one notch, that's fine but you can't go down any further than that without putting the dividend in jeopardy >> no buffer >> they really have no buffer. and look, this is a company that when they close this deal will have $182 billion of debt add in cell towers and unfunded pension and health care and you're talking a quarter trillion dollars of debt, levered at 3 1/2 times, about 3.7 times when you count all of that stuff and if you step back and say, look, this is a business where their wireless business is shrinking at about 2.5%, their wire line business is shrinking at 6, and directv and their entertainment business is the only piece that was growing and now it's shrinking too, that's what people were responding to today, right, which is, how
sustainable is that level of debt, and if the debt is not sustainable, then you have to start to de-lever. and where does the money come for de-levering? >> dish has it even worse, right? >> dish network is essentially a pure play satellite operator plus some spectrum we've said, take some spectrum off to the side, it's hard to see who could buy the spectrum, and spectrum values, for reasons i won't go into, oddly enough look like they're falling rather than rising for some technology reasons. but the satellite business itself is ground zero for the cord cutting problem, right? because the cable operators pivot reasonably >> like a comcast. >> a comcast or a charter. what does a satellite operator do they have nothing about video. dish network is losing subscribers to its core
traditional business at 9% a year it's levered at five times ebitda and that business, as it starts to -- it's got high operating leverage, it's a big fixed cost platform and as it loses subscribers, that's a real problem. that is a serious problem. and you have very little in that business to fall back on, unlike cable operators. it is a pure -- >> is this celebrated? >> it is >> so you talk about the switch from the $60 to the negative margin, however you think about it should they not try to go after that losing subscriber at all? or do you think there's any hope they could turn that losing subscriber into -- >> so they're bundling customers and arguing that getting those customers helps them reduce wireless churn and that is a legitimate source of value but i don't think anybody could sit and do the math and say it
comes anywhere close to compensating for that trade now. remember, they're not trading down one-to-one. most of the customers they're getting for their ott or directv now service are coming from somewhere other than their own satellite platform they're coming from cable operators or hopefully from the cord nevers of the world that were never subscribers in the first place. you just can't make those numbers look pretty. it seems to me they're trying hard to keep it from being a rapidly shrinking business you can't do that for long if it's not economic to do it so the question of, is it wise to do, it's not wise to do for a long time. and you really have to be sort of pessimistic about whether you're ever going to make any money in that business you've got google selling youtube tv for no margin you've got hulu that's selling hulu for no margin >> and they just dropped prices for first year customers
>> that's right. they're doing it to support the programming. google is doing it to get a beach head in advertising. everybody's doing it for some other reason than making money >> right >> so it's really hard to make money in a business where nobody's trying to make money. >> last question, they're screening at screaming at me to get out, but what's the possibility that at&t cuts the dividend? >> not right away. but the reaction you saw in the stock today, for the first time people are starting to take seriously that it's not non-zero risk >> thank you, craig moffett. >> he just pointed out, i think he made a cogent argument for all this, what's the right at&t multiple currently trading at 12. you can make an argument it should be 10 it feels like it's headed to 30 bucks. >> the other big issue, you just
mentioned the dtb stuff. i just renegotiated my wireless, they threw in hbo go i was already paying time warner $13 for that i was really excited about the vertical integration at time warner but that may also be bundled down to a profitability level for the next couple of years that makes it a difficult proposition for at&t >> last night we were talking about at&t directly. i said, you know what, you don't go to defensive names because they're defensive. the problem is the dividend. everybody says it's 4% that's already gone, if you were in there yesterday, you already lost the al qaeda. t -- lost the yield last night we talked about debt. you talk about a half a billion, $250 billion in debt that's a huge number >> pressure is still on disney we'll continue to see it still ahead, the bitcoin boom the crypto currency surging to a
new high as jpmorgan and citigroup mentioned it in their earnings calls plus one trader just spent 50 million bucks the trade and how low th seyee it going when "fast money" returns. 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.
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the crypto currency. seema mody is at the stock exchange with more >> reporter: melissa, wall street executives are making cryptic comments about crypto currency jamie dimon, a known skeptic, says i wouldn't put this high on the category of important things in the world, i'm not going to talk about bitcoin anymore however marianne lake said we're very open minded to the future for digital currencies that are properly controlled and regulated. meantime citi's cfo said, we think the area of crypto currency and digital concerns is an area worthy of exploration. but he went on to say that citi is more focused on the underlying blockchain technology which has real potential to deliver commercially oriented solutions. important comments from some of the key players on wall street on a day where bitcoin did hit a new record high, passing $5300 with today's gains, melissa, a
big point is up 450% year to date this does come ahead of two potential forks in november. >> thank you, seema mody at the new york stock exchange. dan, you and karen, wearing the same outfit, were hanging out there. >> what the citi guy had to say is important, focusing on blockchain crypto currencies are drawing a lot of attention but it's probably exhibit "a" of why the blockchain technology is going to be so disruptive of a lot of businesses on that show we had credit suisse's jay disney give us examples of how they're using blockchain technology, they're using them in their lbos >> it frees up capital for the bank to deploy elsewhere >> those are the things most interesting to me. >> pete, is bitcoin catching
your fancy >> it was two days before jamie dimon came on and talked about how bitcoin was relaxed. i was completely buying into this idea, because i was with some guiys from fortress who hav huge investment in this world. they convinced me of this thing, they spent hours, i can't do that on tv hoobviously, but the were bright and smart. i'm going to be in this soon i was going to do it sooner but jamie dimon turned me off for a while. i'm convinced again it's all right. >> i'm long bitcoin, and various crypto currencies. i do really believe this revolution is here one thing at the conference that is interesting, we talked about about also on the show, it's the internet all over again. you just have to know which one to pick. if you can't know which one to pick, you have to pick several of them, because some of them
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from the group dan is at the desk >> when you see long data like we saw today, the nasdaq 100 etf, put volume started picking up on the day, 1 1/2 times that of calls right after the opening block started trading in the january 2019 135 puts about 75,000 of them traded throughout the day in blocks for about 660 on average. those break even all the way down at 12840. that's about 13% from the trading level, the trading level is about 148 today that sort of activity is pretty interesting. that's some pretty medium, $50 million in medium. the qqq, we've talked about this thing last week. this has been a pretty nice base we know that some of the major names, apple, facebook, amazon, microsoft, and google, they make up about 45% of the weight of this thing they've been consolidating let's see what earnings do, if
that kind of breaks it out further here but to me, when you think about a bet like this, it's pretty medium premium, you have a lot of time for it to play out this is a hedge, a long portfolio of some of these major tech stocks. >> thanks, dan for more "options action," check out the full show tomorrow 5:30 p.m. eastern time. up next, final trades. well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.
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shares of at&t are down a percent right now, craig moffett was just on our show saying cutting the dividend was not a zero risk event, meaning it could possibly be cut. we'll keep an eye on this tomorrow pete, final trade time >> retail world is brutal but somebody who is winning, home depot. >> chairwoman. >> you have to take some money off the table in gm, some upside calls. >> disney in august, that was bottom fishing, the stock is down today >> what did you think about that in the eighth last night >> huge.
giant. i can't stop thinking about it >> it was crazy. >> you know what else is crazy, the stock performance of twitter over the last couple of days >> interesting >> yeah, twitter it's quietly moving up keep an eye out. >> i'm miselsa lee thanks for watching. "mad money" 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. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you money. my job isn't just to entertain but to educate, teach and put it in context call me at 1-800-743-cnbc or tweet me @jimcramer. a day where th