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tv   Fast Money  CNBC  November 16, 2018 5:00pm-5:31pm EST

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and lowes all the rest main take aways i think the end of the week market quieted down a bit. it seems maybe it's trying to see if the levels will hold, you know, i don't think it's a foregone conclusion they will but we are looking for that. seasonally very strong week with thanksgiving week be. >> we will look for that morgueening thanks for being with us. that does it for "closing bell." "fast money" starts now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders are steve grasso brian kelly, tim seymour and dan tonight on facebook facebook could be facing regulations as reports of turmoil dominate the news feed. fresh faces in the c sweet will that get the social giant on track. plus the trade trauma continues as competing headlines give the investors whiplash the president puffing the possibility of a deal.
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white white house officials tamp down expectations. we start off with the cracks in the market spreading that's right semis slams after the nvidia earnings report. retail starting to fall apart. and high yield bonds deteriorate. do you think it's holding up while the rest of the market sold off in october? are the cracks breaking the market how bad could it get. >> it's about the market not about the economy. there is a lot of the sectors you could have looked looked at semi conductors you mentioned topped out earlier in the year in march we saw weakness home builders. banks topped out in the first half of the year i'm not certain when you thought about gdp that we just had in the middle of the year that that was indicative of the economy. but talking about the market, that's important right now and the most important thing is very chloris maga the maga complex, the microsoft, apple, google, amazon. give cramer a nod and thank.
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we started to see the breakdown in all those stocks without that leadership it's not coming back. >> if maga stops does the breakdown andening fang is it hinging on the fed trade. i think the cracks in the thanks or the last to fallen credibly unhealthy for the overall market, makes me worried we are watching a bigger collapse any of us probably had even thought would happen. >> i think it's more -- the fed's part of it trade is part of it. but also looking at expectations, guidance the next couple quarters it's not a great as market as investors expected. the stock market is looking out six months a year ahead. and the stock market says wait a second maybe this is as good as we get we talked about the fact that the bond market tells a different story. it tells you, the economy is pretty good. we don't have a lot of inflation. economy not bad. stock market completely different. gdp as dan brought up, that's a backward looking indicator we know there was an inventory
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push ahead of the tariffs. there are multiple factors here on the downside. the problem is nobody can find a post-cattle zblieft tim, worse or better for things. >> i actually the think the market is telling us about the economy. i lock at bond yield 3.06 op the 10-year. six straight days lower on yields it tells you the market is concerned about growth the good part is people believe that it takes the fed back but as i like to say, a growth scare is much worse than inflation score. and i think people are still concern the fed is along a path until we hear otherwise. therefore, i think this week was interesting. again, very important level by the way on the 10-year that was used -- that had been kind of the resistance level it's where we come back to settle in. if yields sell through 3 acute.06 next week that's an indictment yesterday's retail sales were okay but as we talked about on the desk you have a dynamic here where yes wages are better and
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jobs aplenty but the reality of higher taxes and rates and feed through on consumer prices is something the consumer is grappling with right now. >> this is an interesting conundrum. because the markets got testy approaching 3.23 and now do the to the downside. if we slis through three that's a problem of magnitude. >> if the fed were to pull back would it be bullish for equities, a more dovish stance obviously they've been raising a quarter a point for a quarter for the last few years i think it could be taken the wrong way. i want to make a point about some of the action, retail the important thing in the equity markets was the reaction of home depot and wal-mart to earnings. >> macy's home depot, wal-mart, those were good, okay. cigaretted with macy's off 20% home depot off 7 wal-mart off 78. >> with it tells you on the anniversary of the tax cuts getting to it next month, the
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u.s. consumer is the last thing holding up the global growth story at a time where you have the headwind of trade that might make consumer dwoods in america more expensive as the tax cuts are abating. >> tim. >> i feel the need to take the other side not only this is a show with usually a healthy debate -- i agree there are headwinds. in fact i like to think that when the tax deal was done said this is an ephemeral fwakt li impact it front load to do. i think people are starting to question whether companies are going to grow. i don't think the s&p is growing at 7% next year. but as i say, i think the dynamics are you have repriced a fair amount of risk. i think equities are getting to a place where some of that is reflected in a lot of way. >> when you say risk, that's from the fed and trade >> i think what dan was saying and i believe it therefore i agree with bad news is actually
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bad news right now the fed steps out of the picture i'm not sure that's what we really want to see i actually want to see yields back at 3.25 even though where you started asking, wasn't that a trouble spot. >> here is the debate. here is the split screen grasso versus tim. >> i agree with what you came out -- the first statement when you look at the 2940 in the s&p and look at where rates were and now you look where rates are going, if rates continue higher you have split congress, no more pro-growth, no more lower regulation, we can't get back to 2940 the calculation changes for the s&p. >> taking a level on the s&p and equating with where we are with taxes and the global kpee, i'm not sure what td i do think apple at 185 and apple is a big part of where a lot of female feel the market lost leadership is an interesting story fundamentally. i think apple is a by here i think some people have
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overreacted to the concern about either shipments or this is stuff we probably knew about apple two months ago when we loved apple. i think the good news is that actually markets have given stocks a bit of a beating here and some of these companies are going to have a great holiday season i believe that will be the case. >> well, if that's the case to tim's point the way the markets come down we have sold off an awful lot there is a potential for some relief rally. doesn't mean new highs doesn't me mean we are in a bear market and it's ending all it means is sentiment shifted to one side of the bet i grow with dan, the bad news seems to be bad for the market as we know sentiment shifts quickly. i still think the fed meeting in december is critical not because of what they do but because of what they say. if they can do a dovish hike, meaning raising rates and kind of talk down what's going on, if the market is down at the lows you have the potential for a snapback rally. >> speak bag shifting sentiment let's move to the other big story. conflicting trade headlines.
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sparking market moves in every direction. head to eamon javers at the white house where he tracks the trail turmoil. >> eemen >> we were going every direction here at the would you say troig to figure out exactly what the president meant today. earlier in the oval office he was asked about the china trade picture where he stand in negotiations here is what he said that gave the market a sense there might be room for optimism here. take a listen. >> we put on tariffs on $250 billion worth of goods and we have another $267 billion to go if we want to. we may not have to do that china would like to make a deal. our country has done very well and china as you know has not done very well. >> the president saying we may not have to do that. that is we may not have to put on the additional tariffs the president has been discussing as a possibility. that gave a lot of people the sense there mib something behind the scenes when you talk to aides here as i have, white house officials immediately after the compensates cautioned, looking with the president is simply
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pressing general optimism about the chinese. things are going well this woke, no major concessions or nothing impending. no deal imnonbut the president is optimistic they are talking and everyone looking ahead to the the g20 meeting where the the president and xi jinping will have a face-to-face meeting. if there is g going to be a deal folks here the speculate it's around that time. >> earlier this week had be reported perhaps the vice premiere of china would make a d.c. visit to resume talks with the treasury secretary is there aniward on the next steps. >> they've been exchanging letters. we had the interesting moment this week when the u.s. side received a letter from the chinese and what folks here tell me about that is that that's an indication that the talks are going on behind the scenes, they are exchanging, you know, things in writing but that no major concessions have been offered so far by the chinese side so we'll see if things heat up next we can.
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remember, we have thanksgiving coming up. the president will be going to mar-a-lago for the holidays. it's not clear how much momentum there is going into the thanksgiving woke. but we'll see in the early part of the next we can anything can happen around here. >> that's the understatement of the year eamon, thank you eamon javers at the white house. it's been weeks of this dramatic back and forth. why are we still seeing fierce market reactions to the trade headlines. >> you have to you have to. >> really. >> i think you said it yesterday, b.k. there is a trump put. every time the market is negative you see one of these tweets or you see a headline flash out. how can you if you are a short seller sit on your heels when you see a headline like that with the ramifications to the overall market, it could rip higher if there is a deal. >> just to be cleardy not mean that as a good thing, that every time the market goes lower -- i'm just trying to clear it up that i don't think it's a good thing that every time the market goes down, we get a tweet or a statement that, hey, trade is
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getting better then a couple hours later somebody else comes out and says, no, trade isn't getting bert it's not as far as we thought. at some point you erode the catches of the mechanic. this is a terrible strategy and needs to stop for the market health. >> once we see more headlines come out the market reaction is less and less. >> it sets the stage we get to the g20 and nothing happens. what does that mean for the market because then that put is not there. then we have to focus on the fed again. then we know that this president really dents like. >> starting to look at tariffs coming back into place bus if nothing happens then all of a sudden he barks a little bit louder president trump. and then we start to think about the other section, 267 basically coming on again on tariffs not in june but in january and the market will react the same way with a selloff. >> here is an interesting question at least i think because it's my question, tim. >> got to be interesting
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i'm looking forward. >> g20 comes and goes do we sell off or just sort of, you know, fiddle around at these levels? is that going to be a reason to sell the market? >> well, if markets had a lot of confidence in g20 you'd see it in markets now and therefore i don't know that g20 coming and going is going to be a sell the market dynamic, we walk in this is awful. what everybody is saying here, though is be basically are careful into next year ly continue- eep though i'm trying to sound constructive on the market i would like to paint the picture of 2016 q 1 light is what this market could face if you tack on 25% you've fwt a fed that might be moving too aggressively into slower growth. a dollar running out of control. and by the way everybody thought we were having a year end rally. everybody thought this seasonal dynamic, the post midterm election, dynamic. >> overreaction. >> you have a month left to go. >> the year end rally the time frame is getting smaller. >> from an event or a catalyst
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standpoint, december sets up to be really aggressive the pension for a budget showdown the first woke of december we have fed funds futures are only us pricing a 65% chance of a raise. i think the fed is damned if they do and if they don't. then it's a lot of pressure to get a trade deal done before the new tariffs come i think this can be the first year since 2008 that the stock market closes down the s&p is up 2.5% that's not such a bold call. >> shocking from. >> you what i'm saying is that when you consider the catalysts and the political rhetoric around all of this not great. >> still ahead, apple fights back closing pennies below the 00 day moving average one traderer says perfect time to buy and investors bet energy stock will get a major boost we tell you how to get in on the action for less and a dollar and n individuallyia the worst day in a decade and another tech stock dan says is
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about to suffer too. in new york city's times square, much more "fast money" still ahead. every investor should ask questions. is our money in the right place? what am i really being charged? and is it eating into my returns? is my advisor a fiduciary? is he always a fiduciary? a good place to start is with an independent registered investment advisor. as fiduciaries, they live by a simple rule: always act in the best interests of their clients. that's why charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com
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nvidia welcome back to "fast money. the facebook face plant continues. the social media giant under pressure today down more than 8% in november and set to chose a third
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straight month in the red. that with the market's longest losing streak ever does it need fresh faces in the c suite. julia boorstin joins with us more on that. >> melissa, despite calls for facebook to separate the ceo and chairman role and reevaluate management at the top we are unlikely to see major changes because mark zuckerberg controls the company and expressed support for c.o.o. sheryl sandberg stifel analyst says excludeing a major caning they are looking at reputational turn around fraught with execution risk. sandberg dpoiing the reports of mismanagement. saying to suggest we weren't interested in knowing the truth or wanted oh hide what we knew or tried to prevent investigations is simply untrue now there are fwroeing calls for regulation senator mark warner saying he is disappointed with facebook management. >> i think there are ways we can find common ground
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they have to come to the table so far what they've said is yept to work with you but getting to specifics, there is not a lot of give on their side the notion that the wild wild west days of no regulations at all, no fward rails, just can't exist any longer. >> and yesterday warner fellow exactic senators be klobuchar, blumenthal, corns and hirono wrote the department of justice and urging a investigation into facebook for hiring political consultants to spread disinformation about people criticizing president bush but jp morgan's doug and muth says he doesn't think "the new york times" expose will make regulation more likely and he already sees factual basis and others change business practices to comply with european privacy law. melissa there is a lot of talk the appraisecy laws could give guidelines what we can see here. >> thank you julia so does facebook need fresh faces in the c suite if if does need them, is it
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likely to happen julia had quoted analyst at stifel and ironically seen though he said fraught with executionle challenges for multi-year period, whatever he has an outperform rating on the stock. >> here is the deal. i'll tell you why. there will be no changes there may be a scapegoat here and there. i'd be surprised if it's sheryl sandberg and it's not mark zuckerberg any changes they make are not impactful. all of a sudden now he still has an outperform. but expectations for next year have gotten so lo that earnings growth is expected to be flat year oh over year despite the fact that sales gain 24% that's what analysts think it's all the spending to kbt this stuff that could be way overly pessimistic then the stock is way cheap. >> go ahead, tim. >> this is a corporate governance story it's been a corporate governance dan you are reading my op-eds. >> cnbc.com by the way.
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>> cnbc.com. and more importantly really where people should go to read this stuff but the bottom line this management team, the market is essentially telling you where things are going in terms of gdp r and data privacy issues. and it's existential to their business en a so if you don't think facebook doesn't need to make changes or at least institute different governance it's interesting the times and "wall street journal" are picking up on this >> this habs a corporate oregonens since the company we want public. the fact that esg funds says now there is a problem how are you invested in a company that has a share structure that allows the ceo appear sharm chairman not spliet by shareholder vote or replaced by shareholder vote. >> that's a different sthu that's a different new in terms of corporate structure i think the corporate governance as related to data privacy, communication how they handle it, it's been anything but proactive it's reactive. >> i agree it's an existential problem for them
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but in the short term i think investors care about the costs for gdp r. nobody knowing the number to put on that. even facebook says they're not sure how much it costs if it comes to the u.s. what does it cost if we got clarity on that it would happen. >> twitter up 40% on the other show did you it twitter is the grown up facebook down 21%. stay with twitter. >> for more on a possible crackdown from the government would mean for facebook you can head to the aforementioned cnbc.com here is what else is coming up tonight ♪ i'm free ♪ ♪ free falling. apple's free fall straight into bear market territory has one trader buying the stock. he will tell us why he is betting on a major turn around plus -- ♪ smile makes me feel good ♪ ♪ and so mike khouw's next
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groent, we tell what you the ceo said about the cannabis stock. and the stock. much mores "fast money" after this i think that she's a very nice girl...
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lead with digital. welcome back to "fast money. as the cannabis craze goes mainstream everyone from beverage giants to everyone else trying to get in on the action. jim cramer spoke to the ceo of a cannabis company. >> is it legal, safe consumable. three different things is it legal? not legal in the u.s. not even legal for beverages in the canada it safe? science is out we believe our consumers want to trust us that our befrpg is safe and therefore we want consensus science built behind any fwreent, whichever one and we want to sell drinks people can drink each day. it's not like something once you have one a day and if you can't -- if you can't cross the three things of legal, safe and consumable it's not an
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ingredient that works for us >> the ceo signing a bit apprehensive about introducing cannabis coke to the masses or any other cannabis beverage for that matter is it further away, tim still in vegas as we mentioned spending the week at a major pot conference, doing business, but in terms of the thinking around consumer products and specifically beverages and other edible was, what do you think? >> well, cannabis conference mel and the bottom line here is what's going on. doesn't surprise me the coke ceo is specifically referring to a legal environment. coke is as squeaky clean as disney or mcdonald's they have to say the cbd befrpgs are not one a day beverages. what we are learning about the nature of cbd all the various uses and certainly those non-cycle tropic appear certainly would be multiples a
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day if they are infusewood cbd the bottom line of what's more important about here talking about medicine and medical efficacy happening that's exciting. >> grasso. >> the only prom with cannabis the i i own canopy the ez money seems to have been made there was a lot of hurdles it was the canadian recreational ban lifted this is why i think now it's hard chopping wood going forward. i remain long. i think the long-term story sin tact but right now choppy. >> for jim's full ceo with the interview of ceo of coke time for the final trade tim seymour in sin city. >> continue like airlines and continue to like united airlines ual. >> steve. >> i know this is taking a long time to work lennar i'm still long it will work one do you are day build this house together. >> steve told you twitter is the adult in the room. bk agrees youbuy that. >> dan nathan. apple. tim said 85185 it's 193 we have
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a way to play to the upside. >> that's where it bounced >> that's right. tim safe safe travels back that does it for fast. see you back here monday at 5:00 do not move. "options action" starts right after this break ♪ whoa! (phone rings) daddy, mommy's on the phone! hi! how are you guys? at&t proudly offers wireless and tv discounts to military, veterans, first responders and their families. visit att.com/hero.
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hey there, live from the nasdaq on this expiration friday and look who decided to stick around for the big oa. the one and only b.k look what's coming up on today's show. >> the dark side clouds everything >> and nvidia shares got wrecked today. and one of the traders says, a similar selloff could happen in another tech giant he will give us the name plus -- after an historic losing streak, bullish bets on oil and energy stocks are exploding. if you want to get in on the, mike cho has a way to do it for less

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