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tv   Options Action  CNBC  November 17, 2017 5:00pm-5:30pm EST

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effect and no inflation? >> i don't think i'm particularly bothered, those things are mostly good until they sour into something else. >> it's the problem of, it's too quiet, it's too good to be true. >> i can handle it for about one second, aww. thank you, c. fried. that does it for "closing bell." "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," media mayhem on wall street it sounds like everyone wants a piece of fox who should be the buyers traders have outside the box thoughts tesla unveiling a semi truck but what about the model 3 was musk's presentation the ultimate bait and switch later, the rally that just won't
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quit square is up don't worry, we've got a way for you to buy it for less first we start off with an unlikely pair that suddenly is happy together it looks like amazon and the brick and mortar retailers have found a way to flourish together nike, foot locker, gap, all surging. have traditional retailers found a way to survive in amazon's world and if so, are they suddenly -- >> the turtles >> why not the whole song? >> happy together. >> we are happy together i don't think they've found a way to survive in amazon's world but i do think they've founder a way to bounce off oversold conditions dan nathan will be on the show on 5:30. >> "options action." >> what happened to "options action" on friday, to be clear
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>> "happy days" or "laverne and shirley. >> there's a very good chance that xrt put in a double bottom not unlike jwm if you're looking for trades, the one that sticks out to me is nordstrom's. we talked about it a week and a half ago i don't think their problems have been fixed by any stretch of the imagination it got too cheap on valuation, bottomed out where it did a year and a half ago, that's the long side >> if you look at it through the prism of where we are, what the positioning is right now, it would seem, on a technical basis, you should rally into year end isi pointed out today this was the sort of same setup that we saw last year when we saw strength in november and then it faded into year end. the problem is the positioning then, we're at highs for 2016. we're at lows now. so i do think you could see that rebound rally going into year end. but it's going to be in those
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names like express, we pointed out a couple of weeks ago, abercrombie. these names that really torqued on the laggard side going into year end but you're going to have to see something fundamental change i don't think you'll see that. technically i think they can wrap >> nothing fundamental has changed. two weeks ago these things were left for dead, amazon was eating the world, every day amazon had a new company or industry they were going to disrupt. nothing's changed. this is a bounce off the bottom. it's like they hit rock bottom and maybe their life looks a little bit better, but just like an intervention, you have to wait 28 days if you want to trade them, great. i do not think this is a turnaround >> how can you say there's no fundamental change when we've had earnings from most of these companies and the earnings turned them around walmart, same-store sales -- >> walmart is different. >> okay. let's go to macy's, let's go to gap. >> foot locker >> foot locker was less bad.
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it's all relative. i'm more in your camp. >> hold on one person at a time >> i'm more in your camp these are not knock the cover off the wall like home depot or walmart. >> i would make an argument that the xrt bottomed six months ago. the retailer sector outperformed the s&p from 2013 to 2015 by probably 1200 basis points since then it's been a devastating run. a number of the companies we posted in the show, including people like nike a lot of people have taken the broader consumer products space and also branded that with an amazon disruption when in fact, if anything, the direct to consumer channels, people like nike being able to control their destiny is a good thing for those brands by the way, nike has outperforming adidas significantly over the last couple of months, a reversal on
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that trailede >> i agree with you on nike. but if i'm going to be in retail, i want to stick with the winners. i want to stick with walmart, which has been a winner all year, up 41%, and has figured out how to convince the market they're competing with amazon. >> how about target? >> how about target? we were talking about it last night, potential for an amazon in today's world, anything is possible but you were saying before, and i didn't know this, who is that person, the one that went in there and bought something today? >> you told me before the show >> other taylor swift. >> she went in and bought something. you thought that was a catalyst. maybe. i don't think the quarter was all that bad, i don't know why the stock sold off as dramatically as it did if you like walmart at 19 times forward earnings >> 21. >> or closer to, i think you've got to like target at 14 times >> even though they have another weak holiday season?
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>> even though they have another weak holiday season. do you remember walmart, 18 months ago, we were fricasseeing walmart, saying how behind the curve they were. they got off the curve pretty quickly. >> we're forgetting, ron johnson sat right there and said that amazon, to your point, where you started out, amazon could be targeting to take out target i think that's a -- what >> he didn't say that. >> were you not on the show last night? >> i was on the show he said target is executing on all fronts and if anything, these guys should be able -- >> he said target was on a walmart-like turnaround. >> he said if amazon was going to buy a company, they would buy most likely target i don't know which side he was sitting on but you should spin around the next time he was sitting right beside you. we can play the tape >> i don't think amazon is going to get taken out, is going to take out target, anytime soon.
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>> did you think amazon was going to take on whole foods >> let's just do this. >> we did it, we're there. >> nobody -- >> it doesn't matter what did i or did i not he said it last fight. that's part of what people have been rumbling around, that amazon is looking to take out a store that looks like target >> is that what you believe and is that why you would buy target >> i think there's a good enough reason as any to buy an underperformer that missed on earnings nothing fundamental has changed in target. if you think amazon is going to take them out, that is good for a trade, yes >> here is what i say about walmart. i've been wrong about walmart for this last leg of the rally i still think there's way too much floor space for the consumer staples in the consumable space this is where i do believe they can compete. the biggest thing with walmart is not that they haven't turned the boat around. they're doing interesting
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things it's 30 to 40% more than its historic multiple. do you think in this environment walmart deserves a premium to its historical i'm not sure, unless you really think they are amazon. >> stealing share from others, it's not just amazon versus walmart, right walmart could be gaining share from target and kohl's >> 3% of their total sales are e-commerce walmart, 4600 stores, ron johnson, did i hear that last night, steve, pointed out they can use the stores as warehouses, that sounds smart to me that's my view >> you might get a multiple expansion. >> guy, what did you do today? >> we talked about amat, we also said beware because history might well in fact be repeating itself we pointed out the levels it was traded at could be huge double top. it opened on the highs, closed on the lows. we said it would take profits, that turned out to be correct. i still think maybe some of
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these chip names have overextended >> for me, it was the energy sector that was the most interesting. we're on the cusp of a big breakout here, we've already had quite a move i still think you can get more of a move here xlp was my pick of the day >> homebuilders have been extremely strong everyone has not seen what the action is in the homebuilders. pulte i'm still long, that's the name i'm still long in that space. take a look at the homebuilders. >> go with what's working. emerging markets has outperformed it's been a good couple of days for the s&p, emerging markets have outperformed the s&p, stay in that trade. coming up, homebuilding stocks are surging this year but something the chart master sees could have you pushing the sell button plus tesla unveiling two new vehicles was the whole presentation a bait and switch? we'll explain. and later, fox is wall street's eligible watch lore right now. who will win the heart of the
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media giant? much more "fast money" after this
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welcome back to "fast money. tesla unveiling its highly anticipated semi truck last
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night. but could it be a smoke and mirrors act to cover production issues phil lebeau has more from redondo beach. >> reporter: melissa, tesla shareholders got a bit of validation when walmart and j.b. hunt said we'll order at least a few of these tesla semis and see if it works out with what we do when it comes to shipping goods day in, day out. last night we saw two new products unveiled by tesla let's start with the semi. the electric semi. we're not going to get into all the specifications but the range of 500 miles is one that has people saying in the trucking industry, okay, let me check it out. then the roadster. this was the surprise, nobody saw it coming as far as the announcement last night. the range, 620 miles let's now look at the broader question what does all this mean for tesla relative to the big question right now, model 3 production not a mention of it at all last night. and we're still not entirely sure what the production rate is for the model 3 as they try to
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work out production bottlenecks. here is basically a summary of how wall street sees the announcement the semi is encouraging but a lot of details are lacking so it's too hard to know just how much of a game changer this pike the roadster, a nice surprise. certainly there will be a number of well-heeled customers who will order that. but the bottom line is this. every analyst said the same thing. the model 3 overhang continues that question will be out there at least until tesla can give us some guidance in terms of where they are, in terms of improving production melissa, there is no doubt, last night was a nice shot in the arm for tesla bulls, they can say, look, this is why we believe in this company because of these products that elon musk and his team have come out with. >> if the range is 620 miles on a single charge, phil, that would imply there's a huge battery advance that tesla is sitting on right now
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>> reporter: and it's not coming until 2020 there were specific questions that people had, how are you doing this other questions with the semi. details were lacking >> to say the least. phil, thank you. phil lebeau joining us from redondo beach, california, a couple of long days for phil, good job there we don't know the price on the semi truck >> we don't know a lot of that >> speculation >> we don't know how much it will cost. it will cost $5,000 to reserve, which is why walmart and j.b. hunt are willing to reserve, it doesn't cost that much to reserve. >> disruption first. cummings engine down 5.5, 6%, that's a stock that will be disrupted. but it's not going to be disrupted over the next six months to a year i think you're setting up to get an opportunity to buy the stock. buying it at 150 will keep it at
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an up trend that it's been in for the last few years how would i play this? cmi would buy it at 150. >> i pointed out yesterday that you need to buy tesla above the 200 day moving average, $322 today it traded to $326 and a low of 313, closed at 314. this needs to close above a 200 day moving average to be out of this trading range so trade it like what it is. it's a trading vehicle wait for a close above 322 >> i hear all these things, a semi truck, a mega charger network, a roadster. i just hear the money. money, money, money. >> you could have said that about amazon, right? he's taken the playbook of jeff bezos and said, as long as the market will give me that pass i'll build all these things, create the vision, sell the dream. that's what he's doing it works until it doesn't. if i look at tesla, i think, one, there is a bigger picture there. on a very long run i think you want to be long tesla.
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in the short term, you have a great risk/reward here you know that 292 from the other day is your love, your stopout point. you're trading at 315, great, but you have a great risk/reward. >> what's the long run, though the markets could potentially not be as strong as today. would a stock like tesla do well if there is a pullback >> no. but i'm not saying long run, i'm talking five to ten years. what i'm talking about, again, the decarbonization of the electric grid. this plays into the different disruptions that are out there >> risk/reward, there's no way you touch it here. i think you're disappointed as a tesla investor i think law of diminishing returns on these announcements when there's no detail, we start to lose the umph the chart master sees something that's trouble for the group, i'll tell what you that is
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i'm melissa lee. you're watching cnbc, first in business worldwide meantime here's what else is coming up on fast. >> where shares are on fire. and there's something to suggest the run is just starting we'll tell you how to play it. plus -- >> i'm the king of the world >> with the re-release of "the titanic," four you should never let go, when "fast" returns. how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.
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deal talk. and the media base is on fire around one name, fox julia boorstin is in los angeles with the details >> reporter: melissa, 21st century fox's entertainment assets are drawing a lot of interest, fox's shares ending the day up more than 6.5% after yesterday afternoon news broke that comcast, nbc's parent company, is interested in fox's entertainment assets, the very same one that disney has been in talks to buy that's not all a source close to the situation tells me that verizon has reached out to fox about those assets as well, as it looks to keep up with rival at&t and its pending acquisition of time warner and today a source told us that sony pictures entertainment is also interested in making formal overtures to fox, saying they
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would be willing to talk if they decided to move forward with a sale of some of those assets sony declined to comment what are these media companies so drawn to about fox? the entertainment assets have a couple of areas of key appeal. first, their international scope. fox's international assets comprise as much as 70% of the company's business that includes sky in the uk, star in india, and the strength of fox in latin american markets. second, big brands at fox's movie and tv studios, such as avatar, x-men and the simpsons then there's hulu, a streaming video service. all these media companies are watching to see whether at&t's acquisition of time warner will be approved. a significant legal battle could indicate a regulatory environment likely to give a fox deal a hard time, melissa. >> thank you very much, julia boorstin in los angeles. we thought this would be the perfect time to play the fox
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dating game. our traders are here with who they think should sweep in and buy fox's affection and assets first, bachelor number one, tim seymour, some call him the ambassador but he spends most of his time in the mile high club and those shirts you see him wearing on the show are also available for men. brian kelly, a one-time bear turned bull and a big time believer in bitcoin, don't worry, ladies, i knows a thing or two about hard cores. steve grasso is known as the floor general but the floor hasn't seen any action in years, draw your own conclusions. the italian stallion, after you see his salami collection -- oh, boy. those are your bachelors >> to me, no question is comcast. this is a function of where you have the best synergies in terms of the global business, the domestic business, and from an at this trust perspective, we've
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gotten a lot of rumblings. i'm not sure this is about the politics of the at&t deal alone. i think comcast, especially with what they're doing in latin america, the sky news, the european business, it makes a lot of sense not the whole thing but a piece. >> brian kelly >> for me it's verizon for me it makes the most sense, they have to compete against at&t they wouldn't have the regulatory issues that at&t would have >> grasso? >> it's about avatar, it's about x-men, it's about fantastic four, it's about content disney is the way to go. that's the only logical way. bob iger mapped it out this is what he's going to buy >> what is that? >> it's a mouse. don't you see it >> no. guy? >> i try to play these games, i try to be creative in my thought because we're try to woo the interest of a potential suitor while these three picked chalk,
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i go the following route >> interesting >> amazon. >> so creative, guy. we'll see who they choose at the end, wiseguy >> jeff bezos wants world domination, why not take a look, a foray? >> don't you think he would have looked already and he didn't like what he saw >> everybody else is out there trying to pick this up, why wouldn't jeff bezos? >> interesting faber reported that the disney talks are done you think they come back in? >> i think a lot of these things do resurrect themselves and they tweak them a little bit. i would think we haven't heard the last out of disney >> there's another couple here all this says viacom and cbs that's a very sexy couple. i know they're not here on this panel. i think maybe these two people get together >> all right speaking of 21st century fox,
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z "the titanic" is returning to theaters in celebration of the film's anniversary our traders are here to give you the stocks that you should never let go of. tim? >> a great lead-in, mel. there's been plenty of times for me to let go of starbucks. long term growth >> for me it's square, one that grasso turned me onto earlier in the year but this week they decided to allow people to buy bitcoin. >> grasso? >> alibaba, it's amazon 2.0. the addressable audience in the united states for amazon, they have 320 million people in china, it's double that on the addressable audience with 1.4 billion people but with 620 basically that are potential customers for alibaba.
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>> what's the song we play when you lose >> toni braxton. >> that song is bad. who sings this song? >> celine dion >> almost as bad honeywell. back to you, mel >> we'll keep playing celine have a great weekend "options action" is up next. me. ambitions live everywhere. synchrony financial gives people the buying power and financial toolsthat help make them happen. synchrony financial. what are you working forward to?
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we're live at the nasdaq market site on this expiration site the guys are behind me getting ready, while they're doing that, here's what's coming up in the show >> buzz buzz sound when you hear this signal, hang up ♪ mr. telephone man >> but don't hang up on at&t and time warner. because the options market is betting that shares of "t" are ready to take off. we'll tell you how to play it. >> there's no place like home. >> and there's been no hotter trade than the homebuilders. but there's something in the charts that suggests the


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