Skip to main content

tv   Fast Money  CNBC  July 12, 2018 5:00pm-6:00pm EDT

5:00 pm
going to get that group moving and sub starubstantiate the ral. >> the government is not done yet challenging the merger >> it will allow the at&t time warner merger to go through. that deal is closed and the businesses are operating together big story there. >> thanks, at&t and a little bit of uk with president trump that does it for "closing bell." "fast money" starts right now. >> live from the market overlooking new york city's times square i'm melissa lee, and tonight on fast it is judgment day as they kick off earnings season tomorrow morning and analysts aren't expecting much from wall street and that might be a good thing from the stock plus the nasdaq surging to a record high today as tech stocks are going wild, but it's not just the bank stocks the traders will give you the alt trade that could heat up your portfolio, but first, we start off with the bombshell breaking in just the last few moments.
5:01 pm
the defendant of justice challenging the ruling on the at&t time warner deal. let's get straight to julia boorstin in sun valley, idaho, for the details. >> calle . >> the department of justice saying it will approve the acquisition of time warner and the appeal is likely, the appeal like the original suit to block the case is on antitrust grounds. we seconds ago got a response from time warner and i'm sorry, got a response from at&t and the court's decision could hardly -- and while the losing party and litigator has always the right to appeal. we are surprised that the doj has chosen to do so under these circumstances. we are ready to defend the court's decision at the d.c. court of appeals so it's just amazing to hear from at&t immediately on that, but this is definitely incredibly surprising because judge leon ruled so definitively just a month ago he did not require any conditions on at&t's acquisition of time warner and the companies
5:02 pm
have already moved forward with their integration. at&t's randall stevenson has previously said that they are confident that they would win any appeal because of the judge's detailed and comprehensive rejection of the government's case to block the deal at&t's shares dropped about 1.5% earlier and now they're down just over 1%, but it will be fascinating to see what happens next, randall, and squawk box at 8:15 eastern and my understanding is he's flying in and we can't wait to hear what he has to say about this surprise decision to appeal. >> the surprising thing about this whole thing, julia. everything about this is surprising, to be honest, but the feds could have sought a stay after the ruling that would have prevented the deal from actually going through andthey did not seek a stay.
5:03 pm
so for this to come a month later is just puzzling >> it is puzzling. there was a point when the ruling was coming that we were trying to evaluate what would happen in the ruling and judge leon could have ruled in favor of this ruling going through and he could have enabled a stay, but the fact that there was no stay demanded at the time that they requested it at the time and it seem it is like judge leon was so definitive in his ruling that he would not have approved any sort of stay and there would not have been a possibility for a stay meant that the deal was considered unanimous in its -- in what it meant for the industry comcast took that as an indication that they could go forward and make their official bid for fox. so you have the fox bid from comcast. in talking to the media moguls in sun valley, the folks here in sun valley say that that ruling definitively in favor of at&t's
5:04 pm
acquisition of time warner is really seen as an endorsement of the potential for deals to go forward. we heard that from david zaslav, and steve case who is the epic aol-time warner deal 20 years ago, and i think everyone here will be shocked by this decision to appeal especially now a month after judge leon's ruling. >> this has to be viewed as a setback to win over fox. with the shareholder vote, the disney-fox shareholder vote on the 27th, there's not that much time to figure this all out. >> well, i think you have to break apart what's going on in the fox, disney, comcast, sky sort of battle/triangle right now because it really doesn't impact sky it is a regulatory company it could make fox more interested in sky because it could indicate that there could
5:05 pm
be regulatory roadblocks for comcast in its pursuit of fox. of course, disney already has the doj approval for fox this could support rupert murdoch's original comment that he thinks that disney has more regulatory potential to be approved and the fox deal has been approved and comcast may come back with another offer and now that we see this announcement of an appeal and there is a higher likelihood of a regulatory roadblock and judge leon ruled so definitively in favor of consolidation in sgren ral. so i think the key thing is that at&t, time warner, the vertical merger and comcast/fox will be a horizontal and a vertical merger whereas disney it's much more of
5:06 pm
a disney-fox has been appealed -- i'm sorry, has a ready been approved. a lot has called into question and there is also the fact that randall stevenson said it directly they don't think that an appeal has a shot because the judge was so definitive in his original ruling >> all right julia, thank you julia boorstin in sun valley a couple of issues here, of course, what does it mean for at&t that is most obvious and what does it mean for fox and what whole drama is still unfolding here. >> i will update at&t. that's what makes markets and at&t's problems, and the fact that the stock is lower and the stock is going lower anyway and greg moffett will come on and there's no earnings growth and they have a huge balance sheet problem, so you have to ask yourself what's the right price for the stock? at a certain point it becomes compelling and it has a $29 price tag and that's lower than where we are now and that's where the trend continues and i get this is a big news story,
5:07 pm
but i think it was trending that way lower anyway >> doesn't it make the situation all that much worse that it will be entangled in another legal battle. >> at&t's stock is damned if it does and damned if it doesn't and at&t's stock has been in free fall for the last six months and going back to the first announcement by the doj that they would pursue an antitrust. to me seeing the stock fall on this news is crazy because the stock didn't rise when it got the approval you're playing at&t for two reasons. one, i think, the multiple at this point is so darn cheap and i totally agree and the margins are another and the wireless space is uber competitive right now, but i think these guys have a pathway to go straight to the consumer i believe in the vision and i believe that they got these assets in time warner if this deal does go through and we don't know that. very, very cheap, relative to what's going on in the rest of the sector >> so many parts and first of all, i just can't believe that they did it and it makes me the
5:08 pm
conspiracy theorists and who really benefits from this. >> rupert murdoch does if he wants to get a fox/disney deal done, given that the famed doj has approved their deal. anything they can do to throw roadblock in comcast's way, great. i don't know if he has that kind of power or not. who knows? that just popped into my head and also it makes me think, if fox/disney is more likely than comcast/sky is also more likely which means sky should probably not trade at the premium over their last bid that it currently does i just can't understand -- i don't know if it was the solicitor general or who is it the president? who ultimately made this decision to appeal on a case that was embarrassing in the first place because they were so resoundly rejected to come back and do it again. >> the roadblock inside the doj that they needed to get there. >> how did they get it i don't know -- the whole
5:09 pm
thing's not. >> we're supposed to be in an environment where it's business friendly and you've got lawsuit after lawsuit and doj coming in an appeal and it's insane. let let's take at&t and why you might want to buy it $20, give or take 25 cents has been the support level for a long time. they have a decent dividend and yes, they have that, but if they can get a bit of growth, just a little bit of growth and get some traction then i think you've got a great risk/reward here >> that's what directv was supposed to do and it doesn't seem like that was ever monetized. if you look, i don't know exactly where that was announced and here's a stock that went to $44 to $32 in an environment where they're doing better, quite frankly given the broader market and what's going on in the space. i understand what tim is saying, but they might be damned if they do and damned if they don't and the stock might be trading lower regardless. >> let's go with the tentacles
5:10 pm
of the whole thing >> it's just a little bit less likely. >> you have to pause a little bit. >> i know you just threw this out there as a conspiracy theory >> there's nothing good for his bottom line. >> i think he would prefer a cash/stock deal and i think he would prefer to have iger running the combined entity for the assets. >> i guess, and that all makes a lot offence and ultimately, who will pay me more money for his assets >> stock versus cash is a relevant argument, but right now fox ask comcast have a lot more aggression to go after that. >> even if you were open to the highest dollar for your company, wouldn't it make you question as
5:11 pm
to whether or not you would get regulatory approval? >> july 27th >> no question >> and look, let's be clear. comcast went into high gear the minute at&t time warner deal got resolved and absolutely right and what we've already said a few times today, it looks like disney and fox is a deal that the regulators are cool on in fact, i think i knew that months ago what it does is it just throws cold water on any merger frenzy because now you have to think about this again maybe that doesn't go through and at least you have to think about it, so it takes some of the premium off, and some of these stocks and i still keep going back and look at how the stocks are trading i would have rather seen all of these people buy ea games and take two, something like that. that to me is where the growth is i don't understand the whole thing. the whole deal is crazy to me. >> then you look at companies that can stand on their own without m and a. i think cbs on valuation still makes sense. it's had a huge run from 50 to
5:12 pm
basically 60 in a month and a half and it's selling off in the after market and on valuation and a company that can stand on its own regardless without all of the m & a noise and if there is a sell-off in cbs you buy the cbs. >> let's go to craig moffett thanks very much for phoning in on this breaking news. what's your take on what's going on here? >> i'm as surprised as anybody else the -- the decision was a resounding decisions and the judge went out of his way to say don't bother to appeal this and from what we understand, the solicitor general was pushing back to the doj and was himself resistant to the idea of appealing the transaction. but look, there is a window here where you can argue a weakness in judge leon's ruling and that is that judge leon effectively rejected the premise on its face
5:13 pm
that at&t would take into consideration that it's an integrated company when it's negotiating a turner programming agreement and his logic was, well, the people at comcast said that nbc doesn't take into account that they don't buy comcast and they don't negotiate differently so why would it matter it's just not a ter believy credible argument to say that an integrated company doesn't take into account that it's an integrated company and if you rejected that premise i suppose there's at least a little sliver of a window to say that the -- that there's a basis for an appeal here and that has to be at least my early guess, that has to be what they appeal i don't know what their odds are, but that has to be the argument that they make. >> that sliver becomes the wedge with which the feds are able to overturn the ruling. how does at&t undo what's been done has there been a lot of
5:14 pm
integration and do you think at&t is better off without the deal >> it's funny. first on the integration remember when they closed this deal, they agreed with the doj that in return for not seeking a stay, they would keep the two assets separate until the doj formally decided whether they would appeal so now the doj would have to make sure they don't start with the integration, but up until now they haven't really started the integration of the two companies or supposedly they hadn't started the integration that in itself shouldn't be too big a hurdle again, the real issue here is just the decision from judge leon was so definitive that i made one argument that they would make, but there aren't a lot of arguments you can make for appealing this case, and so it's -- it has to be a surprise. >> the second part of your
5:15 pm
question which is are they better off or worse off? i've always thought that they were better off with the income statement, but worse off for the balance sheet if they had time warner and so whether you think the balance sheet is more important or the income statement is more important determines whether it's good news or bad news the balance sheet has been dominating the conversation and so like, guy, i was surprised it didn't trade up a little bit after this announcement because up until now people have been treating it as bad news. >> so if you think that this decision is unlikely to be overturned, do you think that -- where do you stand on how this might impact comcast's bid for fox? >> i think the way you guys had it was exactly right this gives their cover to the fox board to choose the disney bid instead and that's what they want to do anyway. this just strengthens their hand in doing that and so it is another nail in the coffin of
5:16 pm
any real chance for comcast to get that asset i think the market was already trading based on today's or last night's comcast bid for sky. i think the market was already trading the expectation that comcast was all, but out of it for fox. >> right >> and i think now this is sort of the last nail in that coffin. >> you're probably not going to see comcast be able to do much more on fox is my guess and now you have to just figure out how hard are they going to go to try to get sky as a stand alone and what happens in the fact in the circumstance that in that case disney would own part of sky and comcast would own the majority >> how quickly could this appeal take place, craig, in your view, and will this stall any other potential media mergers in the works and there is a conference going on in sun valley and i'm sure everybody will talk about who's going to buy whom and
5:17 pm
they'll dial this company, too and maybe that will get stopped. >> yeah. remember, everything was frozen while the deal was pending and for all intents and purposes the deal is pending again. it's not crazy to think that a lot of this stuff will be frozen, again with the exception of fox because they have the green light at fox to go forward, with disney, that is. >> i don't know how quickly this could happen i think you probably have the doj asking for at least a very expedited decision about whether the court will take the appeal that you might be able to get done in a matter of weeks, but then if they take the appeal how long it would take for the appeal to happen, i don't know >> all right craig, thank you so much great to have your analysis on this breaking news, craig moffity. >> i just think that sun valley is a huge dance party. >> the music stops >> when they turn the lights on.
5:18 pm
a whole different thing. >> every night >> everybody leaves. >> okay. what do you want to say? >> is there one right now? >> think probably, i mean, if via com was bid up on any of the takeover speculation, i think that hurts via com in a major way, but cbs out of all of the ones you can look at can stand on its own in this environment. >> at&t on valuation is a wireless company, that's my view. >> i would go wild and say lion's gate for the content. >> still have much more on this story as it develops throughout the hour and at&t ceo randall stephenson will join us at 8:15 a.m. on "squawk box". >> mcdonald's is falling in after hours of a food borne illness and it's judgment day for the beaten down bank stocks. with earnings picking up tomorrow, technicians think this could be the perfect buying opportunity and plus this investor is so bullish he said he'd put his mother's money on
5:19 pm
bitcoin. what does he tell his mom now about the bitcoin bear market. we are live from times square in new york city. much more "fast money" coming up after this need a change of scenery?
5:20 pm
the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done.
5:21 pm
we all want to know you know, the new, new thing. with xfinity's retail stores, you can now see the latest. want to test drive the latest devices? be our guest. want to save on mobile? just ask. want to demo the latest innovations and technology? do it here. come see how we're making things simple, easy, and awesome. plus come in today and ask about xfinity mobile, a new kind of network designed to save you money. visit your local xfinity store today. welcome back to "fast money. we have a news alert on mcdonald's kate rogers is in the newsroom with the details >> the illinois department of public health says it's received confirmation of approximately 90 cases of food borne illness and the initial investigation indicates a link to consumption of mcdonald's salads produced
5:22 pm
for mcdonald's restaurants eating salads from mcdonald's in the days before they became ill and they also mentioned the iowa department of public health has noted a similar increase in cases. in a statement they said, quote, although a link has been made to salads sold in mcdonald's restaurant, public health officials continue to investigate other sources. as you mentioned, the stock is down 1% in the after hours on light volume we reached out to mcdonald's for comment and we have not heard from them. back over to you >> do we know if this is confined to a certain restaurant or a restaurant in a particular city or if this has to do with the supply chain >> they're saying that mcdonald's salads produced for mcdonald's restaurants right now in the state of illinois and the iowa department of public health has said they've seen similar cases and we don't know yet if it's contained in any specific cities >> kate rogers in the newsroom >> you hear this and you think chipotle it will be mcdonald's chipotle moment >> the chart looked terrible
5:23 pm
going into this and it's certainly not going to help out. if this is an isolated event these things happen and you'd probably ignore it, but you do have to be concerned that you have some kind of reputational hit here >> come on >> i'm not going to mcdonald's for a chef's salad, and i'm going there for a burger and mcdonald's is going to fresh beef they haven't pinpointed it, but say they do. >> is lettuce on that fresh beef burger. >> when i go to chipotle, i'm going there for a meal where lettuce and fresh vegetables are a key part of what i'm doing i just don't think this is the same thing >> we don't know the details here, but if you think about the brand and you think about where mcdonald's is coming from, chipotle was built on we are natural, we're organic and different and mcdonald's, frankly, has not done that and mcdonald's has been very successful without that. >> however, for a reason to sell on valuation, and i think we all agree it's gotten expensive. >> look at shake shack look at chipotle
5:24 pm
>> i worked at shake shack. >> i worked at every one of them you can probably tell us a thing or two about the inside. i look at the sector and if you've been a beaten up fast food company in six months and you've been beaten up by a denny's and it's chipotle. >> a quick serve restaurant. karen? >> i love del taco i hope they have a different supply chain and i'm freaked out about people and supply chains in general this sounds very specific to mcdonald's. >> they say it would handle it better than chipotle did i would handle it better if you're look for example a reason to get out of this name this is as good as any and on valuation, maybe it's gotten ahead of its keys and she makes a good point >> coming up, the earnings and the top technicians say this
5:25 pm
could be the best chance to buy. he will be here to explain i'm melissa lee. you're watching "fast money" on cnbc, first in business worldwide. here's what's coming up on fast. >> bitcoin continues to get crushed, so y whis one former golden trader saying he'd buy for his mama right now he will reveal when "fast money" returns. hello. let's go for a ride on a peloton. let's go grab a couple thousand friends and chase each other up a hill. let's go make a personal best, then beat it with your personal better than best. let's go bring the world's best instructors right to you. better
5:26 pm
yet, let's go bring the entire new york studio - live. let's go anytime, anywhere, with anyone who's willing. and let's go do it all right here. ready to go? peloton. i was on the fence about changing from a manual to an electric toothbrush. but my hygienist said going electric could lead to way cleaner teeth. she said, get the one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's gentle rounded brush head removes more plaque along the gum line. for cleaner teeth and healthier gums. and unlike sonicare, oral-b is the first electric toothbrush brand accepted by the ada for its effectiveness and safety. what an amazing clean! i'll only use an oral-b! oral-b. brush like a pro.
5:27 pm
play just got serious in the all-new toyota avalon. >> welcome back to "fast money," judgment day is imminent with a number of big banks sets to report earnings tomorrow and investors of harley have been kind to the group in the last three months and goldman sachs has surged 13% bank of america and j.p. morgan have dropped 5%, leaving many hoping that earnings could mark a big bank revival leslie picker is back with what we can expect. >> bank investors are pinning their hopes on earnings for a much-needed boost to stock prices we're seeing results from j.p. morgan, citigroup tomorrow and bank of america and goldman sachs and morgan stanley
5:28 pm
reporting next week. there is pessimism surrounding the industry with the low bar when it comes to second-quarter numbers and analysts believe they have to report numbers in line with expect aegzs and potential surprises and they stem from a recent shift in the yield curve and a potential pickup in loan demand and a benefit from regulatory reform one problem stop could be mortgage revenue which they expect to decline year over year due to the impact of higher rates. the recent underperformance and the yield curve which has spent much of the last two years flattening and some investors are concerned that bank earnings have already peaked. even with pockets of weakness, banks could be poised to break out to the upside and the industry is trading at a multiple that's only two-thirds of the s&p 500 and 8 percentage points below historical levels, again, it's a very low bar, melissa. >> all right thank you, leslie. leslie picker in the news room
5:29 pm
we're going off the chart and robert schlimer is over at the plaza to break it all down >> melissa, thanks very much we'll talk about banks and we have to talk about the ten-year bond yield as a starting point so i think if we look at the ten-year bond yield and remember banks bottomed back in the first quarter of 2016 ahead of where the ten-year bottomed, and now we're over by the 200-day moving average and 270 to 265 level and the 40-week or 200-day moving average is at 270 and here's quite a bit of support for bond yields at this level the yield curve and the 210 spread has been heading down through much of 16 and into 17 and that hasn't provided a lot of support and the banks have been able to move up higher and it may not be as important as a lot of people are talking about and we look at the bank index and it's sitting at fairly important support right around the 200-day moving average and we highlighted this a couple of weeks ago and the banks are down
5:30 pm
from those levels and it's sitting right at the low end of the 2018 trading range so expectations look very low from the technical standpoint going into earnings and we look at this momentum indicator and the rsi it's not deeply oversold and it's certainly not overbought in the same way that we saw coming into the beginning of the year. the neutrals around 40, 46 or so and the response is that we'll get an upside move in the banks and let's look at a couple of napes, two big names, j.p. morgan and we've seen this report, it catches up to the 200 day and right around the 200 day. i think sentiment is very weak going into these numbers and i think they're at support and the momentum data is trying to hook up and it's a positive technical setup and we look at bank of america and the same type of pattern trading sideways over to the 200 day and slightly below and it's not a magic line and the general support level and with the banks coming down along with cyclicals throughout 2018 is the optimistic setup from the
5:31 pm
type of standpoint right here. >> why don't you come on over? >> i'm tired of asking you guys. >> you know what that's good. >> this is not a democracy >> it used to be >> robert, so the chart relative to the s&p 500 thinks it was the strength or the j.p. morgan strength >> a lot on that chart was the rsi and the momentum indicator. >> the relative performance to the s&p 500 and not the rsi. >> it was not on that chart, but it's been terrible it's been terrible since the beginning of 2018. >> along with many cyclicals >> that's -- oh, no. >> yeah. that's just a moment up indicator and straight through to 2018 and the relative strength to the market has been a lot worse. >> now, these levels, my call is
5:32 pm
that you look at this consolidation that we've seen in cyclicals and banks throughout 18 and we're six months into it and expectations have come down a long way and if you look at the surprise data for the g10 and it's really oversold and starting to hook up and that doesn't mean yields will scream to the upside from here and the sentiment for cyclicals is a little bit overdone at these levels and i think these stocks pop in earnings. >> you're looking at a lot of large-cap banks. >> to me, they look weaker than the big caps. >> today they certainly looked a lot weaker and in general the chart looks better and if you look at the relative performance of the kre to bkx it's held in much better. so i think the regionals have better selected and better-looking technical, and many of these names are in the 2 hun-day moving average and
5:33 pm
they're starting to accelerate >> rob, thank you. what do you hope for for tomorrow morning >> green green. judgment day for my portfolio and a big ag exposure and tomorrow we'll see j.p. morgan, but that should give us insight into a lot of different things and loan growth and capital markets, as well so for me, though, citi represents the biggest upside potential. and i'm long all three citibank, and j.p. morgan. >> i think it's a moderate quarter and for most guys, j.p. morgan will be record profits and it's been since 2007 and you have m and a which is two quarters in a row and they continue to eke higher and the most important thing is valuation is at 9.9 times and the absolute bottom and is that fair in this environment >> and the last quarter pretty decent >> they were all decent and the price tag was miserable and that's been the case. >> they ran into those earnings.
5:34 pm
>> and then we dridn't bring ths up and xlf, you have a technician out there and the armchair technician and you want to play the game, go back to '07 and look at where it topped out earlier this year, basically 30 1/2 and j.p. morgan is particularly strong, and what i look at is price to book j.p. morgan, 67 1/2ish and what's the right multiple on that and i would say at least 1.5 and you have a $25 stock >> still ahead, hi, mom. the former wall street strategist that said he would put his mother's money in crypto the battle against the boss is a good thing for the stock are they right the traders will weigh in when "fast money" returns why did i want a crest 3d white smile?
5:35 pm
dinner date...meeting his parents dinner date. so i used crest. crest 3d white removes... ...95% of surface stains in just 3 days... ...for a whiter smile... that will win them over. crest. healthy, beautiful smiles for life.
5:36 pm
5:37 pm
welcome back to "fast money. we have a bit koip alert from you. robinhood adds new service >> robinhood, the mobile stock trading app has added two new cryptocurrencies, litecoin and bitcoin cash have been added they join bitcoin and ethereum robinhood launched these trading services back in february. he says the crypto platform is available in 17 u.s. states, but they expect it to be available in all of the states by the end of 2018. so there's certainly no shortage
5:38 pm
of these platforms to trade cryptocurrencies and you know that, and there's the largest u.s.-based platform and there are dozens of others, and vitt rex both in and out of the united states. any difference between these platforms in to me, the most important thing today is robinhood offers a no-fee trading service and that's quite remarkable coin base could charge 4% and many of the other exchanges are 25 to 50 bases points and robinhood seems to be hoping that they'll get more customers in the door for other kind of trades and they're likely selling those orders, by the way to market makers and collecting some kind of fee and whether robinhood appeals to more casual traders and can pull in serious crypto traders and that's the issue that remains to be seen and the other platforms charge fees, but they're used by more serious traders and regardless, it's good news for everyone involved in the community because they're likely to see more downward pressure on the
5:39 pm
fee structure overall. keep in mind, this moves into the crypto space come even as bitcoin continues to sell off and remember it's down more than 50% this year. back to you, melissa >> thanks. bob pisani were you surprised that there wasn't a better reaction in the price of bitcoin >> it goes right to exactly how dower the sentiment is in crypto right now. >> these things would have been up 10% and 15% in the day and there's nothing going on it was amazing >> it's very positive news in the long run for the sector and robinhood has 5 million accounts now and part of that is due to using crypto as a loss leader and in general it's positive, and i was disappointed in today's reaction >> back in june we asked our next guest if he would invest his mother's money in cryptocurrencies here's what he had to say. >> yeah. absolutely it's all about sizing appropriately. so even if you're the most conservative investor out there,
5:40 pm
right? just because there's volatility and that adjusted risk for return is quite good relative to other asset classes. >> mom's always right, but maybe not this time. bitcoin is down 7% since that call and joining me now is the crypto asset management and all of the other moms out there, what do you tell your mom? hey, son, what happened? >> look, i would say stay calm this is a long-term investment which is what i said last time earlier in that clip, and i think that's the main point. if you're bullish on this technology and on this asset class. a one-month period, there is a lot of short-term volatility and if you're looking two to five years out which is what we recommend to all of our investors, the bullish sentiment hasn't changed over the last six months and regulators have started to step in, but their general sense is that it's been positive and we think some more smart regulation space can be
5:41 pm
good and right now we're trading in the tight end and we think over the long term we'll continue to appreciate >> are you worried that maybe the cryptocurrencies aren't acting like they used to act because there are certain structural changes to how they're traded with the introduction of bitcoin futures, for instance, that creates a whole other and that may have dampened volatility on a permanent basis. it was noting how the reaction added to robinhood and there was no reaction and they still traded lower and things aren't trading as they used to trade and the volatility continues to stay at a heightened level and it's tough to draw a correlation between the futures launching and the decreased volatility or downward trend i don't think there's necessarily causation there. i think over the long term additional products like etfs and things can help increase the access to the asset class which will ultimately be a positive catalyst for the space i think right now we're just in
5:42 pm
a downward trend which we've been in several times in the past in the cryptocurrency space and anyone who has been investing for the past several years has seen 70% pullback multiple times before. >> like i said, if i was giving you advice to hold this, it would be stay calm, steady hands and if you're bullish for the long term, 6,000 is a decent entry point and what about new buyers we need fresh money and a lot of the run-up that we have in november ask december was the speculative frenzy and new retail money and what i'm seeing from the fun stance. we're still seeing new investors come in that are interested in the space and thankfully smarter, heads prevail in that they see this pullback and see a better entry point and you want to buy low and sell high and unfortunately, a lot of people in the crypto space bought at 20,000 and sold at 10 clo,000 ad the panic sell and the long term, and the infrastructure continues to get built and that's one of the biggest key
5:43 pm
pieces as etfs get lost and as there are option available and as the custody piece gets figured out and infrastructure around security continues to improve and that would help bring not only retail people into the state and the institutional money that's been sitting on the sideline waiting. >> the scarcity value was the reason to own bitcoin, free futures and the futures market diminished that scarity valcitye i don't know if you can make that comparison, but that's my view >> that's a much -- yes and no, quite frankly. >> no, i think the scarcity is still there and holding the underlying bitcoin, you will get unfortunately all of the forks and things that come along with that that makes it more complex to hold the futures which aren't physically settled and etfs that aren't digitally backed will be a huge impetus to the space, but no, i can't make that connection
5:44 pm
>> all right >> chris, we'll have to let you go thank you so much. good to see you again. >> thanks. appreciate it. >> the argument, i understand, in terms of holders have seen these draw down support, and if you're in this and it's not a five-year trade. at what point do you think i've seen 70% already. >> if you see what the underlying asset was and you go in with a stop loss and based on the underlined volatility of the product you give yourself a little rope or a lot of rope and you need a lot of rope here and every person that comes on is an advocate of the crypto space and we're five or six years into a period where this is not in any way unnatural to what we've seen what is interesting, brian, what changes when every guy can come up here and say, you know what i've got a lifetime to see this go higher. >> what changes is fresh money coming in. >> we know that fidelity is --
5:45 pm
>> what turns it bad >> what turns it bad >> guys can't say anymore in two years it will be higher. i don't care what it does. >>, and you don't care, and you have the money and they just give up and remember that, bitcoin is in, and every ten minutes and i want to ask bitcoin and the minor and half of that, roughly so there is a constant supply of bitcoin here without new capital in and nobody buying it that could turn it negative >> when do you bail? i think the question is when you go in, how much do you go in with and we talked for a long time knowing that it could be at times zero so to me i'm happy to sit with a small bet and ride it. >> coming up, the twitter bot purge continues as millions of fake accounts get removed and
5:46 pm
goldman sachs says especially a good thing for the stock broadcom hosting its worst day ever after announcing a $19 billion bid for ca technologies and some traders see a turnaround coming and we'll tell you what has you so bullish when we come right back
5:47 pm
5:48 pm
you're doing a great job making sure the platform is trusted and safe and that's what they need to show what's happening now in the world the world is changing pretty quickly as we've seen over the last two years and so it's just
5:49 pm
an arms race to stay up with all of the bad actors and the other factors that could influence the platform and they have the right prioritization to keep the platform healthy. >> the battle with the bots in sun valley sun's been on a wild ride after the company purged 70 million bank accounts in may and june. goldman sachs coming out with a note today calling the move good for twitter's business upping the price target on the stock to 55 so are they right, tim >> i think they're absolutely right and the 70 million account doesn't directly correlate to maus so 360, 360-ish, they're well above that when you consider the suspended accounts, but we don't want to consider them ultimately, i care about are they growing this user base and it's slow and they're still growing and they used up 29% or so >> sun valley it's a media company, right it's a media company and to me they are as unique as anybody
5:50 pm
out there, and they don't need to be bought >> i remember having the conversation where the stock was 18 and there was talk about them getting bought out of $24. one of the conversations we had was if this still doesn't go through it might be the best thing to happen to twitter and that's exactly what happened and twitter has finally figured it out and not making the comparison to facebook and they were floundering, and then they got their sea legs and it took them longer, but i agree goldman sachs, it makes sense. >> i think it's super healthy for twitter to do this purge and even if they lose the followers and each if they think earnings will go down and just myself has found twitter to be unusable with the amount of bots. >> if i could use the platform more then everybody else can and that will make an ecosystem. >> the street would love certainty much more than higher quality in the numbers right. >> so that makes sense >> coming up, broadcom getting
5:51 pm
slammed today after announcing a $19,000 bid for ca technologies and the sell-off is overdone let's get a peek inside the mad money studio with the cramer cam. he'll look at one group of stocks that have been overlooked among the trade warheadlines and much more "fast money" straight ahead. and much more "fast money" straight ahead we never forget... that your business is our business the united states postal service. priority: you ♪
5:52 pm
5:53 pm
2, down. back up. our phones are more than just phones. they're pocket-sized personal trainers. [ upbeat music playing ] last-minute gift finders. [ phone chimes ] [ car horn honks ] [ navigation voice ] destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hundreds of dollars a year. it's a new kind of network designed to save you money. click, call or visit a store today. >> welcome back to "fast money." broadcom having the worst day ever
5:54 pm
the mood sending wall street watchers alike in a frenzy the deal was out of left field while they downgraded the stock titled what the hawk referring to the ceo of broadcom and questioning the motive behind the acquisition did the ceo do the right thing here or is wall street right to worry? >> the stock indicates that it's right to worry and a lotof people are saying where did this come from? it makes no strategic sense for them to make this deal it is not insignificant and the stock has not traded all that well it wreaks to me maybe of a little bit of desperation. the stock has not performed over the last, i don't know, six months or so and maybe they're doing things they shouldn't be doing and that's what the street is saying. at a certain point, when does this make sense on valuation they don't have that much earnings growth, but the stock has gone from 290 to current levels my sense is if we can get into 175, they start to make more
5:55 pm
sense. not suggesting it's getting there, but that's where it should be. >> maybe it is overdone, but the thing to me that's far more troubling and i hate strategic shifts like this a lot of risk and so maybe it's overdone somewhat, but i wouldn't buy it here i would agree. you want a transformational deal and you want one that make sense for the business and it's clear that they want to get a deal one and some bigger ones have tried and failed so 175, if you look at the stock, i brought that up and 170, but where does this stock have some consolidation level, otherwise it's in no-man's-land. let's get up to mike cohn in san francisco for the latest. >> given today's news it's not surprising that this is one of the names that saw the most unusual options activity over 20 times the average daily call volume traded in broadcom today and where we saw most of that activity was the august 220 call it is when i was looking at this earlier and over 5,000 it traded
5:56 pm
for an average price of 365, by the end of the day, 7,000 of those had traded and these were bullish bets that it could recover above 220 and maybe not back to where it was before this deal was announced and 220 before the amount that was spent, 365 you can imagine this might be a reasonable way to spend 2% of the stock price if you are inclined to bet on a bit of a bounce here. options premiums have not risen in spite of this news which i think is very surprising and people should try to take advantage of that. >> mike, thanks for that mike cohn in s fncanraisco for more options action check out the full show at 5:30 p.m. eastern time up, in, final trade. as awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum-
5:57 pm
just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
5:58 pm
you mighyour for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain-health supplement
5:59 pm
in drug stores nationwide. prevagen. the name to remember. >> welcome back to fast. the big story in the after-hours session the department of justice challenging the ruling on the at&t-time warner merger and tomorrow, at&t's ceo randall stephenson will be on cnbc at 8:15 a.m. eastern time you will not want to miss that news-making interview. time for the time trade. tim seymour. >> this has me fired up on twitter and both flag formation. >> chairwoman? >> want to go home with the one who brought me to the dance, jamie dimon. he didn't bring me to the dance. >> yes, he did >> exactly long j.p. morgan >> p.k. >> if jamie does right tomorrow we'll get good earnings and the regional banks will be great, k,
6:00 pm
r e. >> he would be lucky to take you to the dance. >> very lucky. >> he's not thrilled to hear this from number two, but if cbs sells off on the back of all of this noise and all of this craziness, i believe that cbs is a buy. >> i'm melissa lee, see you back here at 5 for more "fast money." don't go anywhere " mad money" with jim cramer starts right now. welcome to "mad money." welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer everyday, kind of around the middle of the day, i look at what stocks are up the most. i try to get a feefo


info Stream Only

Uploaded by TV Archive on