tv Fast Money CNBC March 21, 2018 5:00pm-6:00pm EDT
have access to all of this data that we have it doesn't apply here but we will see if it soon does. >> google's search information was used to help track down a bomber the information, the power in it, both for good and ill. facebook's shares were lower after hours at last check. that does it for "closing bell." "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. traders on the panel today -- pete najarian, steve grasso, tim seymour and dan nathan >> mitch steevs bought a media giant today. the winner of the facebook fallout? it might be blockchain a top analyst will explain why the data scandal could be the catalyst for the blockchain technology first we start with the federal decision to raise rates.
jerome powell towing the line not too hawkish, not too dovish. let's get to steve leishman in d.c. >> let's tell people what happened it was the first press conference for fed chairman j. powell feds raise hiked to.15 to 1.75 and signalled more hikes ahead it upped the outlook for growth and lowered the gdp. also raised the outlook for interest rates not this year. one forecast short from a fed official for four hikes this year it remains at three. but upthe outlook to 2.9% next year and a strong 3.4% in 2020 it didn't move the inflation barometer or the outlook and i asked chairman j. powell how they could forecast better growth, lower unemployment but not more inflation.
>> after the crisis it was 10% it's now 4.1%. you have only seen gradual upward pressures on inflation and wages despite that increase. that suggests that the relationship between changes in slack and inflation is not so tight. it has diminished but it's still had. >> the non-economist powell sound, like an economist ly our new segment powell on the body up. surprised at a lack of stronger wage growth. and sees more growth than fiscal stimulus but wouldn't be pinned down is it from supply side or demand side, which would be more inflationary in the words of john lennon, did powell pass the audition yields were little phased. that's win and stocks just down a lib from their top after the meeting. i think he would consider that a win. >> if the relationship between slack and inflation is not so
tight, what -- did he give good answers to why inflation is so low and stubbornly low >> both in this one and in prior ones he's interested in this idea i mean in prior testimony that he has given whether or not this global supply chain that's out there, the amazon effect is something also that's out there. but i think he also said, in testimony, and you can see that by the way in what the fed did today. they are more confident about inflation moving back up it was in the statement today where they said you they think inflation is going to rise in coming month prior statements had said in the coming years they are more confident it's moving back their way toward that 2% goal. >> steve, thank you. >> my pleasure. >> steve liesman the market having a volatile react to the decision today ultimately the dow end the day nearly flat. did jerome powell signal the allclear for stocks? >> i don't think he zchl i think powell basically told you read my lips, this is one decision,
one meeting, we did one thing today and by the way i can do whatever i want at the next meeting. i thought it was a hawk in disguise having said that obviously there was a relief of the stock market that now actually can probably breathe some sigh of relief until a couple of week until we get the next round of inflation or wage data on payroll. >> where did you get i can do whatever i want at the next meeting or whatnot >> he was asked two or three times about issues he said folks we made one decision today reraised rates 25 basis points what i heard means they could be at four hikes at the next one. why did he bring that up now ultimately there was nothing for this fed chairman to gain in his proper announcement policy meeting to go into that heap >> i think he managed it well. the market's reaction proves that the next in line is technology
technology stocks led the rally, they are the most crowded investment in the tape in the s&p. i look and say we need to take a look at teb and say is there going to be a near term pause. there is 301 >> how long have you said it's the most crowded trade >> for a while >> for years. >> no. that could last for a period of time the difference is i look at catalysts. what is the catalyst to shift positioning, to encourage people to the sell side. >> was the fed decision feign. all you mentioned was trade. >> the fed did a great job powell did an amazing yb. >> separately. >> separately. is it an allclear sign no, you have got to be careful of the 30. >> i don't necessarily think it was a sell signal. or necessarily say it's free to buy. >> a buy signal. >> what he said is i'm going to be transparent and i'm going out to 2020 he gave projections out there. >> which no one cares about.
the fed has been a terrible forecaster. >> we are looking at 18 and we are looking at how many hikes we are going to have. right now it's three is there a fourth? it is a possibility. >> we knew that going in. >> exactly right which i think is why the reaction early was financials took off to the upside we were up 200 and some points then we had a flush to the downside we mixed around a little bit at the end of the day it was pretty much a flat day i think that's probably a good thing as steve alluded to. >> i think to your point, whether it was the allclear or not. i free with tim. it gave him flexibility to do whatever he wants going forward. but it was a hurdle. the market had to jump over this hurdle to at the time it out of the way. it was his first press conference everyone wanted to see, was he going to hit a wall? he didn't. to an extent, was it an allclear to buy stocks. there is where i stay. i think it was an allclear we get that out of the way and we focus on earnings
which will be good i think the analysts rampthed up their eps forecasts nearly enough so i think that is still the tail win we have not talked about earnings once in the last two weeks on this desk on as a whole on a macro level. >> in the last two weeks we haven't really been struggling with the fed the ten year has been at 290 or below for the last five weeks. so i don't think the fed was the hurdle for markets the hurdle for markets have been trade, washington. >> inflation. >> inflation started this selloff. >> you think it is a an allclear now. to the extent of allclear meaning we've got out of the way with his first -- with his first meeting, yet it's all clear do i think there could be another swoosh of course. it's trading show. but we defended the 100 day moving average we closed pretty strong today. we are above 2700. all good things. allclear. >> it is a stock market. no one could ever say --
>> in a vacuum, just focused on the fed it is an allclear but there are other aspect we need to keep in our signatures. i mnged tech, the crowdedness the nature of that sector. and there is a couple of other things. >> did the fed signal an allclear for markets did the fed specifically there may be a pipeline of other things in the offing when it comes to hurdles for the markets. but as far as the fed is concerned -- >> yes, i think they did. >> did we come out of this meeting with a confirmation of what we knew before the meeting? i would possible it pretty much yes. three, maybe four, right. >> yes. >> yes. >> in steve's defense -- >> i can always use defending. have at it >> no. but if we are dealing with just the fed factor, okay. >> yeah. >> if the fed factor is now at least something that can go on the side for a couple more weeks steve answered the right question. >> but -- i feel like there is a
big but coming but there is a whole host of other thing. >> i appreciate that >> i can appreciate there are multiple other factors to force stocks to digest right now if you need defending on that shirt/tie comboites i'm your guy. >> because you are used to defending shirt -- tie combos yourself. >> i'm having trouble with this one. we are all having trouble today. >> it's great if you are in miami. >> i want to bring in reb de patterson. we need help chief investment officer she oversees $70 billion in assets rebecca, thank god you are here. >> where do we start. >> let's not talk about shirts and ties. >> what did you make of what jerome powell said today. >> we are basically confirming what we knew already, three, maybe four hikes thissee powell is focusing on the lack of inflation pressure so he doesn't seem to need to be aggressive
one thin that hasn't been said yet in terms of reaction higher energy priss prices, higher energy stocks, weaker dollar part of that was the testry not moving much at the end of the day. but the market sees it as a dovish hike, or a market that doesn't see any sense of urgency to ratchet it up all else qul it was a good day for stocks >> all else equal -- >> that's tomorrow's show. do you want me to front run your show. >> how do you look at stocks at this point now that we have this uncertainty out of the way at least for now, we have all those other issues potentially lined up what do you do >> it's been fascinating to me to watch over the last 12 months how this administration seems to be playing the media and the investor community in a sense that we get this big carey headline, $30 billion isn't enough i need $60 billion or $100 billion in tariffs against chinas is an example what the media is announcing
after we get to tony's trade we will have a period of time for u.s. companies to comment because we want to hurt china according to the administration but we don't want to pubbish u.s. consumers good luck with that given that so much of what comes in is through china. when you have this commentary period or waiting period what we eventually get is going to be less scary than the initial headline i feel like it's repeating on a number of issues the solar panel tariff i'm going to drill off all the coasts, except for florida, except for you, except for you it's sort of this scare them with the headline -- whether it is a negotiating tactic or what, i don't know but the reality is never as bad. we get this initial dip on the scare factor and then we recover. i feel like tomorrow's trade may be more of that i'm crossing my fingers. >> fed for now goes away as a factor trade will probably for now go away as a factor. >> inflation, though, don't let that one go away because the march inflation data
is going to have a funky little base effect. in other words a sharp fall in telecom price as year ago falls away that's no longer there, the march number suddenly looks higher if the market isn't ready for that if it's not discussed a lot in advance we may have inflation fear coming back in that report coming out next month. >> that will be a head fake. event rulely the market is efficient and then that goes away -- >> a' constructive it's overused but we are later in the cycle central banks are slowly starting to take away the punch bowl valuations are higher. there is a reason to be not looking for a repeat of last year but i don't see any reason why equities won't go up this year the economy is strong, we just got a ton of stimulus into the u.s. economy why would equities go down in a sustained way on that? >> you talked about energy had a
great day, chad tees had a great day. dollar was weaker. these had been suffering in the last couple of weeks an all the things we just talked about. what do you like here? >> we started building a slightly larger energy position last august. we have bond overweight energy equities since then. we have been suffering the last couple of weeks on a relative basis. today was obviously a nice day for that market. we have been overweight technology which in recent days has been a about it all over the map but on a structural basis we still like it. we think the valuations on the companies we particularly own are justified even though a few of them are quite high we're -- what else do we like? we like being slightly he i don't have weightthe u.s., fro sector to regional even though the u.s. valuations are higher than the rest of the word we feel like the stimulus here should be a beneficiary but we've also been adding to emerging market exposure believing that china's slowdown won't be enough to undermine
emerging markets and that yields aren't going the rise fast enough, the dollar is not going to rise fast enough to undermine emerging, ma so we like modest exposure in the u.s. we like emerging markets late cycle. not shockingly, we like energy and commodities, too >> rebecca, great to see you >> thank you. >> pete, what did you do today. >> i added on a couple of different things some of them we will touch on later. gm was one of the names i added to today i added southwest as well, the airline. i think there was one -- facebook, along with alba marro from yesterday active the last couple of days. >> i bought facebook today. >> you did. >> alone with pete i don't know if you bought the straight equity or option related. >> call. >> i bought the equity just on a technical basis. and i have some fundamental reasons. about you the home builders off the numbers today. granted the home builders usually react to new permits today it was existing home sales. i think all of this has been baked in and they have been klopp clobbered.
it's probably bullish now. >> short rg in it was a short covering rally today especially in the smaller mid cap names. it was 00% a sell. so took them off. >> love the southwest call luv. >> so clever >> i do think if you look at miners integrate, miners bhp rio tinto, mexico, brazil, they had good days but those are countries or stocks that weakened and i think you can get in there. >> the northeast getting batteried by its fourth nor'easter with hundreds of flights canceled today, the airlines are feeling the heat. five stocks in the dow are in or near bear market territory, down 20% from their highs. which neems are a screaming by. >> and later, mark zuckerberg speaks out did he convince shareholders the worst is over? we will bring you the latest details. we are live from a swyno times square in new york city. much for "fast money" after this
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>> mark duk taking full responsibility without actually apologizing, posting we have a responsibility to protect your data and are working to make sure this doesn't happen again zuckerberg runs through a time line of events including the revelation in 2015 that an app developer's data had been sold to cambridge analytic, violating facebook's policies. zuckerberg admitting a quote breach of trust between facebook and the people who share their day with us and expect to us protect it zuckerberg then outlined the next steps that the company is take first, the company will investigate all apps with access to large amounts of data, including data collected before policy changes second, saying that they will restrict data access to current apps automatically reducing the data that its users share. and third they are putting privacy controls at the top of the news feed to make it easy to revoke apps permission to access users' data. the company will alert users about data misuse thug those who
was harvested by the app in question they are expanding the bug bounty program and reward people who find misuse. cheryl saying quote i deeply regret that we didn't do enough to deal with it. jamie diamond was just on stage at an objection yoes event he weighed in just after zuckerberg posted saying of all the data being collected by facebook and others, he said this >> all of that data, location, shopping, sites, where you travel, places you visit, all of that has been accumulated, sold, marketed all around the world. so facebook is a piece of it i think people have the right to know what it is and what it is and how it's controlled and why it's control i think it's pressure all thetre data providers. >> after facebook's shares dropped 10% from the open on monday to the close yesterday today the stock moved up a little bit less than 1%.
back to you. >> did zuckerberg say enough have we seen a bottom in the stock? you know struck me today pete, i know you are a buyer bloomberg put on their cover facebook and the troubles they are n. i fell like that may have marked a bottom. whenever you see it on a cover. >> it's interesting the timing of some of these different things of inthe interesting thing for me about facebook is you are 20 dh or there about off of the highs, 30 bucks if you go from high to he lo so it looked to me like an opportunity but i have been wait asking waiting. >> it's 10%. >> that's oftentimes what i'm looking for. if they are breaking through i look for 10% here's the interesting thin about facebook it's not just a facebook story it is all the other areas they have deny growing toward the instagrams and the monetization that they have accomplished already there there is more to the story than just facebook. -- i would also say they have done a poor job of getting in
front of this, in my opinion they waited so lon and each this, this is all text. i mean, are they really out in front the way jamie dimon has been and way other great ceos when they have had an issue, they get out in front of the cameras and say this is a problem, we are going to fix it here's what happened -- >> they tried to get in front of it on friday ahead of news reports and articles which was chumski. >> facebook is describing themselves as a victim they are not apologizing if someone was victimized. it means they have been attacks. they were unprepared a company's whose business is software and algorithms was not prepared for a hack or whatever you want to call this. >> i disagree. >> this is why you have to look ats can like facebook differently. it doesn't mean -- everything you said pete i agree. i don't think facebook isgoing to stroh but i do think companies who rely on data, on software, in a new world where their management -- this is supposed to be the best and the brightest
are caught off guard by this, i think it is a new way to look at companies and i think you have to look at the whole sector. >> i agree the one thing i don't agree with is the response. there is a difference between being arrogant and confident diamond is confident he comes out, tells you how it is and walks you through a sear of events that occurred and wraps it up. is forth right they let this go that's a sign of arrogance. >> let it go how. >> allowed to it fester. didn't come out immediately and talk about it. didn't apologize customers, employees, your business the whole nine yard. the numbers for the business are going to be fine it struck a chord in confidence that is going to take long time to replace. >> i don't think it's chipotle. >> sentiment shifted rapidly this in name and it will continue to. did you sell it. >> i'm out >> i bought it today as well it is a three day rule for me. i bought it defending the 16195
low onday two, basically technically, but as far as advertising dollars this is the 800 pounds gorilla in the room you could talk a good game -- not you, the people saying i'm going to pull their ads. they are not going to pull their ads. they have to be here ultimately it's going to be a pi again. can it trade back down to the lows, technically. >> if they pull their adds must rest on the number of users engaged or in total doesn't change at all. >> they are still leaps and bound ahead of the competition. >> ahead of google. >> on valuing a. on valuation, this is the lowest that facebook has ever traded. >> i agree >> with huge groout gro growth. >> i agree with you, three day rule, get that i'm not sure if we are three days out. three days may not be out of three monday. >> they wanted to make sure they got the story right and didn't want to make it worse on top of
something else. >> when a ceo or coo goes to capitol hill and testifies is that usually a good thing for the stock? what would you guess >> that's usually the bottom. >> and we reason is seen that yet. >> right >> does that worry you >> doesn't necessarily worry me. i'm seeing this as a company with some growth i think we all agree, they have growth has some of it sort of flattened out. i think some, yes. on the facebook side but you if to the other elements, the modernization in terms of instagram and in terms of what's app and some of the others that's going to make up for some of the loss on facebook. which are competecally different groups. >> facebook is not a small percentage of their business -- >> if this was about anything other than politics the story would already be over. people fight really hard for their teams. evan in this country -- >> i disagree.
>> everybody here is on twitter, right? have we seen a swell from the public will deleting facebook or abandoning facebook or, you know, leaving facebook behind? isn't that shocking? >> i'm not sure. first of all, phenomenon, i don't think the regulators are done here. there is talk about self regulation. >> that will take fref. >> i don't think we live in a world where they are going to be self regulated facebook stock has significantly underperformed the qqqs, not just for two months, or six months, but for two years. all this growth, and other things i think that have been weighing it down and this was one of the big things that was hanging over it. maybe this is the emt move i think there is still overhang. >> coming up, much more on the scandal rounding facebook ceo mark zuckerberg and the response to the statement as the fallout continues. i'm melissa lee. you are watching cnbc, here's what is come up on fast. >> it's about the future. >> one analyst says the facebook
offer special protection that could help replace or repair damaged equipment and provide lost business income. they represent multiple insurance companies and customize coverage to help businesses get back to work. announcer: to find an agent, visit trustedchoice.com. welcome back to im fochl it's been a volatile year so far for the dow and a handful of stocks are now in or close to bear market territory. let's get to bob pisani for more. >> the s&p is just 5% off its 52 week high, also the all-time high but the widespread between the winners and losers several stocks are already in bear market territory. there is one big outlier ge, 55% off its 52 week high and at the lowest level since 2009 but there are other companies that have entered bear market territory or are very close.
walmart 20% off its recent highs. it was $87 in october. rallied to $10 in january. but a poorly received earnings report brought it back down to $88. the consumer names performed poorly as well proctor and gamble 18% off its recent highs after a poorly read earnings report in january p and g, too and oil stocks oil stocks are all down. exxon is down so% for the year 16% from its 52 week high. an odd divergence between oil and oil stocks home improvement stocks have been faulter, after rocketing straight up for five years home depot hasn't been the same since disappointing commentary in late january. now it's 14% off of its recent highs. a lot of casualtist. >> thank you bob pisani, at the
nyse our next analyst says some of these stocks are a buy right now. >> as bob highlighted there is dispersion between the leaders in the market with technology stocks rocketing then we have got five or six names that came off a lot of the ge down 55% off its highs. when we rank order those stocks from those off their 52 week highs to those off their three month high they sort out pretty much the same. what's viable in the group is there anything you want to own? particularly if you are concerned about the volatility in the leadership stocks i think there is a few maims to look at. look at home depot this is your best pet, this is a long term chart going back to 2014 here it is at the buy point in the 200 day. we like the home building space. home builders are ratcheting up. on a relative performance basis, home depot pulled back to the long term support level. it looks attractive of it's the
best looking name of the six g laggards within the dow. as we look down the list have anything else. >> walmart broke out of the huge trading range we saw back to 2010 it too has pulled back to the 200 day. there is a trading opportunity there. what interesting me, and this is relatively early but this long term downturn in performance is beginning to turn. there is anation it's about the shift. i think that's the next best name within these six laggards to be buying lastly, energy is a complete candidate disaster with exxon. however it is in a band of support. down to the $70 willful but the relative performance is still making new lows. it is a kraugsary tale but versus proctor and gamble or ge, to me this is a better trading opportunity. we like other energy names better, the enps are better.
i think exxon is going back to the 200 day moving average. >> i think we bring rob over >> good see you. >> if we see bounces in these dow laggards, do you also see continued leadership of the dow leaders that we're seeing right now. >> i think a lot of the leadership, if we look at tech, for example, semiconductors went through a pause between november through to the february lows and resumed leadership i think the problem with a lot of the tech stocks is they are a little bit advanced here they are working through a consolidation it is not a lot to be alarmed at i don't think the cycle is over. and then we look at beau and -- >> caterpillar. >> thank you very much through big consolidations, i think it takes time. if you are trying to balance out a poish, diversify, you are worried about market exposure and some of the extended stocks like we saw facebook then it makes sense to look at the laggards the leaders that pulled back
like home depot i think are timely. >> when i look at the consumer names that you just mentioned i look at them as leaders where they will fall off the cliff earlier than the overall market. obviously the market needs to recover and usually to your point these things recover first, the consumer names recover first, the market will follow i'm looking for one more swoosh to the downside in the overall market which could still be on track about consumer names with the consumer names do you look for them to bottom first and then the market to rally later. >> off the february lows everything that led was secular in nature away from cyclical growth we look at the consumer names like home depot and. so of the home builder stocks i think they have had their correction i think it is a going to be slomy, we are going to be back and forth on this show talking about it rolling over and starting to firm up. i think we had a peak at the beginning of january and we are going to work our way sideways.
>> when you look at walmart and the rest of the space. it also had you believe from target had a bad number, kroger, what about that whole space? >> gap stores are holding in there. some are firming up. there is pockets of space in the consumer discretionary space after lagging for years. i think those are slowly caving out bottoms. are they leadership? i don't see them as li i think they are trading stocks. >> robert strimer of fundstrat are you a buyer of any of the laggards. >> exxon, because everything else in the fais space is garbage. exxon has a yield. >> everything else is garbage. >> i don't believe in energy here a lot of short covering and i wouldn't be a buyer. you i also do think home depot is a name i would be constructed on here. >> absolutely. >> what? >> for home depot. i own exxonmobil, home depot is the interesting one.
let's remember, spring is their christmas. christmastime is coming, baby. >> that's like a brain teaser. >> and home depot -- >> spring is their ds spring planting season. planting season. >> i love the fact that he brings that up technically because i love what's going on fundamentally and i think it broke down because it screamed to the upside. if he is saying technically it is a buy, i'm going there. >> roses and tulip bulbs and i'm going see santa. >> i'm santa because i'm haeb to see new there big boy. >> happy to see you in there -- all right. going to move on could the facebook fallout be paving the way for blockchain technology mitch steves tells us why facebook's pain could be blockchain's gain. winter storm toby slamming the east coast and reeking havoc on the airlines. morgan brennan is at la guardia.
>> look at this, you have got rows of cancellations. these types of word in airports across the u.s east coast right now, we are going to talk about what it meanfos r travelers, also what it means for the companies, when "fast money" returns [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances. sarge, i just got a tip. that'll crack this case wide open!
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learn how you can be prepared at pge.com/beprepared. together, we're building a better california. welcome back to "fast money. the north east is getting hammered with its fourth nor'easter of the season leading to thousands of flights getting canceled morgan brennan is at la guardia airport in new york. she is very lonely out there. >> i am a little loney
melissa. when is the last time you saw la guardia look like this it is practically a ghost town the gate is down at the tsa. it looked like that for hours. we reason is seen a flight take off or land here at la guardia airport since at least noon eastern today. because of this storm we are now at more than 4,400 flights canceled into out of and around the u.s. that brings the total for the monday of march on the heels of three storms ahead of this up past 16700 cancellations now a lot of this is originating here in the new york metro area. but you are also seeing cancellations in boston, philadelphia, washington, d.c. those are major regional disruptions that ripple out to other parts of these airline carriers transportation networks it's the reason that american larcenies says a quarter of its operations have been impacted by this storm
the airlines canceled flights ahead of the snow coming in today. they waved kang fees days in advance. the expectation is they will get up and running very quickly. the bigger thing to watch, march, according to analysts, typically the busiest month of the quarter. with all these weather disruptions what does it mean when we get into earnings season this the next couple of week back over to you. >> the airline stocks struggled to gain steam as of late taking a hit, no surprise today tim what have you been doing. >> staying long delta and united i think the airlines are tremendous trading stocks because they give you a lot of opportunities. weather is not a reason to be trading airlines unfortunately for the bad news and what happened to a couple pat passengers and the stories around united that's not a reason to sell united. >> the dogs. >> dogs. >> yes. >> i think that's an opportunity where you look at united and decide whether they are running more efficiently after united gave their call in
mid january that was a reason to buy them they rallied back to near their highs. i stay long the name i don't see them breaking out. >> longer. >> my favorite name right now is southwest. we now what warren buffet has done in terms of the positioning in all the airlines. >> his moet recent commentary was he could buy an entire airline. are you seeing options activity that indicates there might be more interest in one or two versus others? >> primarily it's been delta and i've seen activity today in southwest. the reason why i like southwest is it's domestic that sort of fits if you are starting to try to go forward and say hey -- >> that did buffett -- >> we will research, said those were the most likely last week. >> all the airlines fit that united, still you and i are at odds on that one >> won't be the first time, pete. >> still ahead, facebook losing the trust of millions of users after the company's data
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finally break his silence this afternoon saying he made mistakes and vowed to protect user data. but the scandal brings to light how safe your information is on line and how tech companies need to adapt to new technology like maybe blockchain will facebook's pain be block chain's gain let's bring in mitch facebook agreed with a third party that they can tap and scrape data but then that party went ahead and distributed that data to another party. if there was a way to track this data and where it went, maybe this could have been caught earlier or even prevented. could blockchain be the answer to that, to actually be able to track where data goes? >> so, i will be careful with my wording. if you want to use blockchain technology in facebook's environment for example, you could actually track what was sent to who. what i mean by that is let's say you load up a photo.
you could tell if it was sent to a third party, if it was sent to somebody who didn't want to see it through privacy settings. but it does not allow you to stop it. let's say facebook decides to sell your feto to some advertiser in korea or something like that. you would be able to see that that transaction happened but you would not be able to prevent that transaction from occurring in the first place. >> is it possible -- i know this is sort of projection and i'm not sure you can even answer this but is it possible to actually use that but then create a program or layer in artificial intelligence so that it will flag the fact that it has been distributed to another party, that the transaction has continued to somebody else >> you can sunday 00 track all of this. the way i would describe it. let's use bitcoin as an example. it's easiest the to problems bitcoin solves first you can see every transaction. if you use blockchain technology the facebook example you are giving you could track every time that
photo is sent. you can say i only wanted my mother to see it i could see if she sent it to somebody else. because there would be a digital foot print the only problem is it doesn't prevent them from doing. let's say i want to send the photo to my. mo it doesn't prevent her from sending it to somebody else. that's the difference between blockchain and decentralization. blockchain would solve the transparticipatesy issue but not the control issue you have. >> the last time we spoke you said that you thought a lot of these companies could actually face perhaps being disintermediated or having their business models challenged because of this notion that we are moving toward decentralized world. >> yep. >> there is a bloomberg report that google is working blockchain related technology to support its cloud business do you think we are going to be getting more and more of these headlines. do you think this is sort of a project or that this is a meaningful, possible business opportunity for them, that that's the way they regard it at
least? >> so i think they are looking into the space because they want to decide how they are going to attack it. what google is doing, if you read close loo, it doesn't say they are trying to create a decentralized distributed ledger it disa distributed ledger, just distributed computing. what they are trying to do is increase transpapersy so if i give you information i know exactly who it was sent to if we create a decentralized network or a centralize storage network then the user has control of who sees the data i think it gives transparency, but it doesn't give the user control over who gets to see their information and who doesn't. >> the last time we spoke and the first note you put out on bitcoin and the blockchain economy your projections were for ten trillion dollars. >> yes. >> does that rampen down given the bear market we have seen in
bitcoin or cryptocurrencies in general? >> i don't think it ratchets down at all. i kind of get a good idea of who understands the space based on these kinds of declines. if somebody invested in ethereum at the beginning of last year, you still would have gotten a bigger return than investing in the s&p 500 since 1978 so basically calling that a deline is outlandish to me because you are looking at a year and a half return that's better than 50 years of equities returns. if we look over the next several years there is still more development that needs to come for example, using blockchain in the decentralized environment is the next step but it's going to be years before we see a decentralized environment where in the future shb like yourself somebody no longer has to give their photos to facebook or a centralized space. you share specifically with people and you would be able to track it and be sure it's not
shared or somebody else doesn't get access to your information. >> mitch steves of rbc what do you think of this notion of using a blockchain, that could happen tracking the information is sort of half the battle we know where it went at least. >> i think the whole model is shifting he mentioned it's five plus years away before we get to a decentralized rm plo i agree with that. i believe the model is shifting of it's sort of pay the play right now. you give up information and you get a free platform to sort of use. now people are recognizing the value of the content they are putting in the platform or information they are putting on platform and are looking at it from the standpoint of i deserve to be paid for it instead of the advertising revenue going back to the company there is a shift here. >> it's interesting to see the companies embracing blockchain because you don't think about it as these big conglomerate companies. ibm. watson was supposed to move the them in on ibm
it's probably never going to move the middle. but blockchain, and that in conjunction with ai maybe that moves the needle when you throw in there the blockchain kicker, the chart looks good as well so intel looks interesting. still ahead the one stock over 140% over the last year some traders think it could soar even higher. we will give you the name and could be even more bullish don't of mo. we have got more show after this m. we have got more show after this ov we have got more show after this e. we have got more show after this it was my very first car accident.
welcome back to "fast money. micron reporting after the bell tomorrow the options market is implying pretty big moves for this hot chip stock let's get to mike khouw out in austin texas you have better weather than us. >> here we are in the south. it is a little bit warmer. micron is a name that typically moves a decent amount on earnings, about 6% but it's implying a larger move for that this time 7.3% we did see increased call activity most of the activity was concentrated at that time woos the week three mark 63 calls they traded for a buck and a and a half that was options traders betting the move was going to be to the up side. and others in april.
>> would you go into micron into earnings >> i would i don't own them i was out about a weak or so ago and i'm in intel it is the pricing. and they have demand the chips are all in their favor right now for micron is there a show that talks about options? >> yeah. >> i think it's friday afternoon around 5:30. >> friday, 5 '03 >> i'll be there. >> you know what, "options action." 530 "people" eastern time. we will see mike khouw i think from austin texas, in fact coming up next, final trade. 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.
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here are the results of our poll more than 1,000 of you voted 72% said no, the worst is not over >> 58% are no idea what facebook was. >>. [ laughter ] >> time for the final trade. pete. >> i love the financials as you know. goldman sachs got pounded down a little bit i think the stock goes higher. >> steve grasso. >> i'm not one of those 72%. facebook, final trade. >> xle energy rally today was total short coverings. seller of the xle. >> happy first day of spring >> happy first day of spring. >> facebook. that's what i'm -- not what i'm big. home depot what i'm buying
>> merry christmas >> springtime is christmas for home depot >> i'm melissa lee, thanks for of wag we will see you tomorrow at 5:00 for more "fast money." meantime, don't go anywhere. mitt romney with the one and only jim cramer starts right now. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. thank you jerome powell for making this quarter point rate hike into a bit of a