Transcripts For CNBC Fast Money 20240712

A big upgrade. We will find out what makes it stick out in that big social media space. Plus, petes got a fast pitch on one medical device maker he says could be a home run. We will tell you what it is as he lays out the big case thats medical miracle mystery chart. In a special bonus hour of fast money at 6 00 p. M. Eastern time, we are taking your burning trading questions. Tweet us cbs fast money and you might get them answered here live on the show in the next hour we start with that monster rally on wall street today the s p up more than 1. 5 and the dow jumping over 400 points as you can see there the nasdaq also up nearly 2 leading those markets Higher Energy stocks, financialis and the small caps as well investors appearing hopeful a new deal for stimulus is town the pike markets still down significantly for the month. Does todays action give you a reason to perhaps be more optimistic and for that perhaps, guy, i will turn to you first. Welcome its always wonderful to have you onboard. We got a bonus hour with you thats fantastic and i think the answer to your question is yes. You cant say that in a vacuum something we talked about the last couple weeks, probably a shortterm market bottom on a day the market sells off you actually saw that over a few days pete can speak to this the eviction topped out around 36 and as the market was selling off, the vix at the 25. 5 level that gave you a good indication we were going to bottom. One of the things we said for a while off that low a week and a half, two weeks ago, the obvious move was probably a move back to the prior alltime high of 3393 we made in february and steve can speak to this. Not only does that make sense for that reason. It makes sense because it would be a textbook 50 correction of the recent alltime high and the low we made a couple weeks ago so the answer is, yes. Lets see what happens when we get there. I say when because i think we will rally another 40 or so s p. Steve, guy teed it up for you there. Is this a level, is this a market right now, the action that you have seen, that makes you feel as though you are comfortable being long, comfortable putting new money to work right now. I know Everyone Wants that gut instinct of being positive on the overall market. The market has shown you nothing but positive because that gap is closing from the corona bottom to when we restart the economy you have a couple of levels. The 50day moving average, i heard you talking about it today, 3353. Thats why people are keying in on that level. Where did we bounce from the 100day moving average, 3210 this is technically a great setup to play it for a bounce, but the problem is we still have what the problem was we have an overbought market granted we worked that off a little bit what has been the mostover bought the tech space the most bloated names those six or ten names that we all focus on doesnt mean that other things have not rallied doesnt mean that other sectors have not rallied but its time to take a pause because the market and the economy are two totally Different Things a lot of volatility Going Forward. The biggest thing for me, dom, month end, quarter end this week i heard it was mentioned prior on closing bell. I still think its a big deal. I still think people are Underweight Energy we had m a today underweight financials we saw those rise today. What sold off . What rallied into month end . I think thats what you have to keep an eye on lets see if it lasts a week or so. Tim see more, over the last five trading days, it says that the big, one of the bigger Cloud Computing epss over 50 . Smh is up over 3 right now for five trading days. We also saw financials and, to steves point, lead the rallied it those are different parts of the market assuming some leadership role does that then mean that there is this kind of allclear signal if the bad and the good are going up at the same time . Dom, great having you getting me to say you have an allclear signal is tough to do. But i hear where you are if you looking at the triple qs in the nasdaq 100 you rallied 6 over three sessions, the semis, which they have pmultiple times the last couple of years and certainly out of the worst of covid19 have been a leader and something to follow. In fact, they have led the way both are now back over the 50. Today todd gordon will talk the technicals in a bit. You are talking about the broad mi ning of the market to the extent you are excited about the move in retail and small caps and along with that with the banks if you look at the european banks we are up over 3. 5 . These are the parts of the market that people want to see back to where you have an allclear and i dont think anything has changed is the guys who talked about some oversold conditions i agree with that. I think the nasdaq can correct further down and i mentioned kind of those late june early july levels. The fed is still very much your friend i think the payroll numbers will give you a sense where we need morphous cal health than just what Monetary Policy is. I think its a case seens partsy to give you confidence in terms of leadership and they led you on the way down from 2018 into 2019 and transports have been outperforming the market for the last almost four months now. So many key bellwetheresque parts of the market now. Pete, i know that you are on the news line with us right now at cnbc lets talk a little bit about what you are seeing in terms of trading action there is there something that makes you feel as though this is a constructive environment or are we due for a little bit more consolidation, perhaps even more discount pricing in the coming weeks ahead of the election . Well, i certainly could see the consolidation side of it, dom. I could tell you this also in the derivatives home where i live, a lot of bullish activity over recent weeks and it continues to come in now, a lot of that is shortterm, but today we are seeing a little bit longerterm type options that we were seeing where they were buying major indies not specific names or whatever indifferent indices across the board we were seeing some buying it felt like a bullish tone potentially. Not as much short term as we had been seeing. That makes it a little bit more interesting because its very easy to sit there in the short term and see this movement that we are seeing. But to commit to buy those kind of premiums that you have got to be able to go out to january, maybe december, that says a lot more about what they really are feeling, those very large buyers out there in the marketplace so volatility, guy brought this up and i have to address this real quick volatility was selling off all day. Well, going up early then it started to sell off. We nearly closed on the absolute lows of the session. That was interesting to see how that volatility ip decks was coming down as the market came down from being up 500 to 400. So a lot of Different Things going on right now certainly there are sectors i am impressed with that do lead us a little bit more so out of where we have been recently like transport, like materials, and a few other names. I like seeing what we saw in financials today thats one day we havent been able to see financials put back it back to back days together for a long period of time thats something we have to watch very, very closely. All right we did get back to back to back days with the financials this time around. We will see if it sticks around. Thats the first pass at the Broader Market narrative the next guest says last weeks lows may have been an even better time to bay than the march bottom investors may have a chance to get in lets have him explain why tony dwyer, chief Market Strategy at genuity. Lets break down your thesis how could it be at higher prices it was a better time to buy the last couple of weeks than those dead lows over there that we saw back in march . I dont know, dom we got the story wrong i didnt say that. I mean, i hate to put it that blunt. It was a terrific to buy the lows we had an opinion in march where we also thought that the market had set up for a sharp oversold time but i never said that i think that that low last week was better than the march lows thats not accurate. All right lets go then, lets figure out whether or not this is a good time to buy then mine, this is an environment, we are in a no mans lands, bounced off recent nearterm bottoms but we are below the record highs we have seen. There arent a lot of positive catalysts. We have the election looming why would you want to get into this market with all of that uncertainty . Extraordinary catalysts we have never in the history of our country seen excess liquidity where it is today. We have never had a Federal Reserve chairperson literally say were printing money and were keeping rates at zero for years. Even if the economy gets hot and inflation goes above our average at 2 , we are still going to keep rates at zero and, in addition, when you look at the global economy, you are seeing a synchronized pivot off of the low in growth its a really important point where you have the combination of excess liquidity that can fund growth that is just beginning. Dom, you go into problems in the market, when you have a lack of liquidity, when you dont know what the economy looks like, thats what happening. What as referenced in the preinterview, whats the difference between buying down 10 now, you know, last week, versus buying down 10 in early march . And the difference is, and, you know, we downgraded the market in january we were not saying to buy the down 10 back then the reason is you had no idea what covid19 was. You had no idea what the fed was going to do because you had no idea what the economy was going to do. We hadnt made the decision to shut it down yet today we have excessive fed liquidity. Its unbelievable. We have a global synchronized recovery and nearly every biotech is thankfully working on a vaccine or treatment and i think thats what the march reference is to. Whats the difference between the first 10 then and the first down 10 now, and thats why we wanted to attack last week remember, corrections are natural, normal and healthy until you get one. Then by definition it feels like something different. Tony, when you look at it, you just mentioned it, we have already had excess liquidity we have had rates at zero. We have had the ability to pop above the feds inflation target you just said it we tosold off 10 with all that so are you talking about a max down of 10 . I mean, that happened with all of the scenarios that you had. Do you think that this market is insulated for, if nothing else changes, for a 10 only selloff Going Forward . Given algorithms, youre a trader, it would be ridiculous for me to say that let me give you some stats my buddy, i saul him call him m dude, our stats that we came up with today since 1962, this was the tenth time the s p has pivoted off a 30day low while in an uptrend and then had an 80 upside volume and upside day. The worst case six months later of those prior nine times was one time a loss of minus 0. 1 an 11 median gain in six years one year you were up median gain 16 . I have no idea i have proven to the viewers, i am not the greatest trader in the world on the intermediate term front, i stick with the data. And the data on a macroeconomic front and a trading front suggests by the way, in this data it shows when we did the study the next two weeks are chopra this is going to be choppy it should be. Py. This is going to be choppy it should be all right. Choppy into the election and beyond as well tony, thanks great to get your thoughts, as always tony dwyer we appreciate your thoughts. Thanks, dom. Guys, lets trade this. Pete, to you first lets trade it how is tonys thesis playing in the way that you were attacking the markets these days well, you know, its primarily for me, obviously, as i was talking earlier about the Derivatives Market so much interesting activity there, dom thats really been something first of all the volumes are off the charts we have been talking about this all of 2020, volumes have been huge because of that there is an incredible amount of liquidity in the markets right now and a lot had been very, very shortterm i like the fact we are seeing a little bit longer term i dont mind trading it. I expect it to be bumpy. So i think there is no doubt about it, you have to be disciplined in this market right now, you have to have your hand partially in your pockets ready to wait and also to pounce thats exactly the way i feel right now. How much higher can the market run at this point lets go off the charts with who else todd gordon, trading analysis. Com todd, the traders and i have been talking about this battleground thats happening right now. Its that 50day moving average. I know the markets are more than just one simple number but when you have the dow hovering around there, the s p 500 and nasdaq composite on top of their 50day moving averages, it seems as though this is place you say, hey, it could go higher or this is resistance and we are due for a pause. What are the charts telling you . Yeah, hey, dom, good to see you. Listen, i am bullish, continuingly bullish i am not so much of a moving average guy as much as grasso is maybe another stat on top of what tony brought in which i think is interesting we are on the verge of losing a fivemonth consecutive gain in the nasdaq we have only seen that one other time in history and that was heading into the covid selloff so that was the first time in the history of the nasdaq we saw this so if we were to close down in september, history would show with this much momentum behind the market we should continue. Lets looking at the last ten years. Two situations november 16 and may 2017 we had a little bit of a pause and then we rallied 37 before we saw a meaningful correction. Before that it was the march lows we went for seven months, took a breather and another 24 so covid was the first time we saw a meaningful decline following a fivemonth rally now, seasonality look at this september we know is a seasonally bearish month over the last 30 years, nasdaq down an average of 0. 13 in september. Here is the thing which follows my last stat october snaps back to be the biggest monthly gaynor of 2. 74 . I continue to be overweight tech in my portfolio. My biggest hold exist are excel, apple, netflix we look at the s p and vix, i heard the guys talk about volatility, super interesting. Its important to keep in mind here if we look at the chart of the s p before the vix, we are still in correction mode the last two corrections from the credit crisis low were consolidating patterns consolidating volatility like coming to a point this is opposite we are expanding we are seeing expansion in vix, range expansion, and we are actually seeing higher highs and higher lows which is why its incredibly difficult scenario for investors but good for traders. I dont actually think we are through resistance, 3,500. To close it down, its sort of my catch up seconder, i love it. Air Freight Logistics acting well, fedex, u. P. S. Made the move railroad, some made the move watch tsx, 80 bucks with a nice sellout, 1. 3 saw dividends. Dont do airlines yet. Still stuck on the tarmac. That iyt, up 205, i think thats the next catchup level. Todd gordon tradenanalysis. Com thank you for the charts guy, to you first with in. Thats a lot of stuff to soak in what we heard from tony, what we heard from todd, but with all of that in mind, is it changing your calculus how you approach whats happening with the markets . No. I appreciate their points. Im not going to over a five, sevenminute conversation change what i said five minutes prior to that. What i will say, i think pete and tim probably agree, there are names that wiould do well i the environment they are talking about. Caterpillar is a name we talked about a few months ago pete was on that night the stock was trading around 134. We said it sets up well to test that high we saw in january which was 148. It did that, actually traded north of 155 and here we are at 148 again. So for Trading Opportunities off exactly what todd and tony said, a name like that for the risk reward t risk reward to me looks interesting. Caterpillar, perhaps some of the transportation stocks like fedex and u. P. S. Not so much the Airlines Just yet. Thanks, guys we are coming back in a moment coming up on the show, another twist in the seemingly nonstop anime drama between lbmh and tiffany. The bold claims that the french luxury house is making about the company it wanted to buy just a few months ago and things could get pretty spicy for shares of mccormick. Get it, spicy, mccormick what options traders are expect willing from those results all that coming up when fast money returns after this break. I felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. Welcome back to fast money. Lvmh has filed a counter lawsuit against tiffany. Thats just the latest piece of drama going in that ongoing merger dispute between the two luxury brands. Robert frank joins us with the latest here. And this is getting to be a pretty bad divorce in a marriage that hasnt even happened yet. Thats right, dom its the latest shot fired in what i call the battle of the bling. Lvmh filing a counterclaim now, this is a response to tiffanys lawsuit filed earlier this month that sought to force lvmh to proceed with that deal to buy tiffany for 16 billion now, lvmh complaining, heres how it starts out. This is the first line quote, the business lvmh proposed to acquire in november of 2019 no longer exists what remains is a mismanaged business with no end to problems in sight and it gets worse from there, dom lvmh alleges there was a material adverse effect here it says that the pandemic created a extraordinary damage to tiffany and, and this is important, there was no carve out in the deal agreement for a pandemic now, the core of the complaint is really that tiffany has been mismanaged it says that tiffany paid out dividends when if shouldnt have, cut marketing and sg a expenses that will cost future sales, and it said that Luxury Companies in the u. S. Have a bleak future, saying that 90 of tiffanys sales are brick and Mortar Stores. You dont want to be that kind of retailer right now. And 80 of those brick and Mortar Stores that tiffany has are in shopping malls. Now, lvmh also cites a letter from the French Foreign minister that says it is impossible to close that transaction thats what lvmh is saying and the trial for all of this is set to begin on january 5th, dom. So well see whether a judge gets to hear all this, whether they reach a settlement before, reach a deal at a lower price. A lot is going to happen in the next couple of months before that trial. All right robert frank, thank you very much for that you update on tiffany and lvmh lets trade it, guys tim, to you first. Does this change exactly how you feel about either lvmh or tiffany . I mean, a lot of folks bought it thinking it was going to happen and covid struck and now here we are with a big corporate divorce for a deal that hasnt even closed yet i mean, we got a big sacsacr sacre beu. I dont think there is anything in the lvmh claim that has validity certainly not around covid certainly not around mismanagement. We have talked about the agreement and the restrictions and the binding nature of the agreement and there is nothing and certainly going on about the business and mismanagement and covid is, these are not grounds for breaking this up i think the january 5th court date is a deadline that should get you some decision. I think, you know, the only thing that hangs outstanding is whether the letter from the french government was binding or whether it was advice or whatever it was. If you look at tiffanys shares they have been inching up. They are up about 7 from the bottom of the announcement of this news. And i think thats where you are going to get it. Other folks have been thrown into the mix as possible takeover candidates. I think this deal is going to happen i think its going to be very, very difficult for lvmh to get out of it. So, dom, when you look at tiffany, how you feel about it, i agree with everything that tim said i think lvmh is going to have a rough time backing out of the deal but when you look at the numbers that robert frank just said, tiffanys 90 brick and mortar and 80 of those sales are in malls, that makes me feel extremely negative on tiffanys. But had you have to think about the broader macro picture, people are looking for Premium Brands to buy, and there is not that many that are stand alone and i power pitched capri holdings, thats the owner of jimmy chu and versace and, oh yeah, throw in michael kors that does over about 4 billion in revenues in normalized earnings. Thats the way i would play it i fragree with tim that lvmh is going to have a tough road to hoe. Battle of the bling so says robert sflooing and we are getting that momentum going here on the show. Here is whats coming up next. The u. S. Putting the squeeze on chinas biggest chipmaker but what will the crackdown mean for the u. S. Tech sector plus, shares of snap catching a bid today, but are these gains here to stay or are investors about to get ghosted we will bring you the call and a lot more when fast money returns. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Welcome back to fast money. The u. S. Cracking down on chinas biggest chipmaker smis eunice yoon has all of those details. Chinese chip giant facing an uncertain future with the u. S. Tightening export restrictions friday the Commerce Department warned suppliers in a letter that shipping to smit posed an unacceptable risk of being diverted for military end use. Suppliers of certain equipment will now have to apply for individual expert licenses smic said it had not received official notice from the u. S. And insists it has no ties to the Chinese Military investors in hong kong and shanghai are rattled about what the move means for the chipmaker. Its key customer huawei and beijings ambitions to build up a homegrown chip industry. The global times is calling for china to embark on a longtech march to encounter what sees as the u. S. s attempt to hold china back all right thank you. So lets trade it. Guy, to you for this one here. This is perhaps one of the biggest stories in the markets place right now. Not just because of smic, but what it means for the chip industry and u. S. china relations at large how do you feel about that kind of tension we are seeing right now . You happen to be right in your assertion its a huge story t i thought this escalation with the United States and china basically since last fall was going to continue to escalate, so i was correct about that. What i have been incorrect about is it would have an adverse effect on the Broader Market your points are absolutely spot on the market doesnt care because here we are 5, 6, 7 from an alltime high in the s p 500 i am not sure why the market hasnt taken notice. Maybe to tim and tonys point, liquidity trumps everything. But this escalation is not going away its going to continue to ramp up, and maybe at a certain point we hit the diminishing margin on returns and the market starts to see it and moves from it but until now there have been not one headline thats come out that has affected the market in any meaningful way. Its been that way for five or six years at this point that the market keeps shaking everything off here. Lets get more on this story because it is big. Managing director at long view global he previously worked for the department of defense in the Obama Administration he is also a cnbc contributor. Welcome to the show. Talk about how important from a geopolitical and market perspective it is for this next salvo, this increasing tension between the u. S. And china on the Technology Front thanks for having me, dom listen, i said last week, and i say again, welcome to the tech war. Even though semis have been doing well, i think you would be wise to Pay Attention to increasing geopolitical risk in this sector. This latest move, dom, wasnt quite as bad as it could have been in fact, the Defense Department wanted smic to be put on the Commerce Departments bureau of Industry Security entities list. That did not happen, but there will still be restrictions plaisted on export of items to china, items that the pentagon fears will ultimately end up in the hands of the Peoples Liberation army or the pla as for china, chinas already announced that it will take quote unquote countermeasures, which is a signal that they will retaliate at some point in the future i suspect that they will keep their powder dry for now, but, dom, you recall that last week the chinese announced conditions for something that they call the unfriendly entities list so they could use this list as a way to strike back at the u. S. But i dont suspect it will happen in a symmetrical way. I dont think that china wants to strike at the semiconductor industry, which they need so much dom, they rely on about 300 billion in foreign tech for the semiconductor space. This is an extreme vulnerability for beijing. They have announced that they will do Everything Possible to have what they call Indigenous Production in manufacturing in this space, and i suspect, dom, in october when the chinese meet for senior level meetings at the end of the month to prepare for their 14th fiveyear plan. There will be huge announcements about the amount of money that china is prepared to spend to become selfreliant as much as they can in this space and, dom, just one note. There is about 10,000 or so companies that have decided that they are going to do something in this space to try to take advantage of the money that beijing is spending to become indigenously independent in this space. We are talking about the two biggest economies in the world by far, and they are battling it out with each other on big fronts like technology, artificial intelligence, 5g next gen wireless is this the next cold car . Is this the next russia versus u. S. From like the 1970s and 80s is this going to carry fon for 20, 30, 40 years i hope that some point cooler heads prevail. I can tell you that the tech war, i think, is with us at least in the near term i dont see this ending. Neither one of these giants will back down. I think both of them are big enough that they can withstand the punch from one another so short of a hot war, which no one hopes to see, i think we can expect to see more with respect to a tech war, more respect to trade and a number of other sectors, dom this is with us for a while. So companies should be prepared for the geopolitical risk. All right always great to have you on the show we appreciate it all right. Thank you. Maybe, tim, to you. Not because im trying to type cast you, but you have a good amount of experience in emerging markets. Not that china as the second biggest economy in the world should be termed as an emerging market, but should investors be fearful about this increasing tension . Its vafld it hasnt derailed anything over the last five, six, seven years. Without question, dom i said this before, that chips and data are effectively the new oil. Where were we 15 years ago we were fighting over selfsufficiency and essentially resources were the global strategic assets that the world was fighting over. Its absolutely technology who benefits and who loses if you look at u. S. Companies, roughly 50 of the input to smic are coming from american companies. Amat is one of them. On the beneficiary side, taiwan semi is not only the Largest Company in the em index or its become one of the top ones after really not even being in the top ten, but the movement in this company to be the white label provider for much of the world continues. And they are buying. And right now they will have the edge here. I think they will continue to press ahead and i would own this stock. All right chips still in full force. Guys, thank you very much. Coming up on the show, we have got a special hour of fast money coming your way at the top of this hour sends your burning trading questions. We will get you some animals we are going to try anyway live. Tweet cnbc fast money. First, petes winding up for a fast pitch there he is. Get the cap on with the bull there. Its a medical device maker. He says its about to break out of a monthlong result we will see if the other traders are buying what he is selling. Fast money is back in two minutes. How to be there for others. I started out as a cashier. I mean, the skys the limit with walmart. Its all up to you. Hey, son no dad, its a video call. You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. Welcome back to fast money. One medical device stock has been stuck in a rut as of late, but pete says a breakout is on the horizon. So he is giving us another fast pitch. So, pete, we showed the chart. Whats the name . Well, i am going to medtronic. I like this name a lot in the last two weeks or so i bought this company in terms of the share. But i really like it for a lot of Different Reasons starting with the leadership when you look at jeff martha who is running the operation and he was, he has been at the company a long time, but he was the integration officer when they were going through the covid19ian acquisition, 43 billion acquisition that worked out well for company. They have the confidence in him. Now he is running the show there. I like the moxie, the treng is that he brings to the company. On the fundamental side this is a company that has incredible Free Cash Flow i like that. But its not just a onetime thing. This company for decades has had incredible cash flows, their margins continue to be very, very strong. When i look at the fundamental side of this company they are fundamentally strong so they are positioned so well right now, dom, that i think there really are great what about growth . When you look at the growth, look at the Revenue Growth over the last five years they have consistently had about 8 on the revenue froet side. And then on the net income side 12 growth over the last five years. So there is a lot of reasons to like this company. This is one of those Covid Companies as well because a lot of what was going on from surgery stand points, surgeries that were elective, that did hurt the company for a while, and now they are coming out of that so similar to many others names that you dont think about this name in terms of coming out of the covid. But certainly right now i think they are positioned well i like where they are in terms of a p. E. , and they have the growth because of that i think this is a company that do very easily retest the higher levels they were in january, near 120 a share. Lets open it up to questions. Steve, you have a question for pete i do. So, pete, i am right along with you. I like this stock as well. What happens if the covid environment, if we have a relapse again . Since that was a major headwind, you mentioned it as one of your bullets as a catalyst to the buy side that people were not having the elective surgeries or, quite frankly, not getting in to see doctors if it wasnt covid related. If we get another level of the covid virus or a second round, does that make you negative on this bullish call . It doesnt make me negative, steve, but it has some concern what im thinking forward right now would be i think they are a much better stock now than they were in the hospital area. Because of that i think that does play into an advantage for the surgeries not to be put off as long as they were before because, as you know, a lot of what the reason was for the cancellations was they just didnt have enough in the hospital to be able to combat this whole thing so i do think that even Going Forward with the return of covid potential, i think the hospitals are much better prepared right now. All right pencils down no more questions. Time to vote so, are you buying petes pitch on medtronic guy, to you first. Well, pete used the word moxie. The last time i heard that was when kid twist said you have moxie, get a suit from the sting. I know pete knows that im with pete. 43 eps growth, the stock is too cheap. I think it takes out those prior alltime highs. We have a yea tim, what do you say exciting first day with my new whiteboard but i am a buyer of everything pete is selling on medtronics. Bottom like this company, its been a hallmark. The diversity of their end customers and client base is extraordinary and i think coming out of the covid or in the middle of it this company is very well prepared nice job. Would you mind putting up that portrait of pete again . Would you mind i mean, its good, right i am just saying its not one of my best i draw pete whenever i can first time i seen him with a whiteboard pete, i have done better you are a better looking man than this. Steve, to you yeah, to my buddy pete, i am going buy as well. There is about 14 analysts that came out positive on this stock recently average price target is 116. That gives you a quick 10 to the upside a clean sweep. One positive pitch and three agreements the traders have spoken. Now it is your turn. Head over to our twitter handle cnbcfastmoney and tell us if you are buying petes fast pitch on medtronics. We will reveal the results later in the show. Plus, snapping up some gains, shares of snap, inc. Higher than tankso analyst upgrade. What has one analyst so bullish on this social media stock stick around more fast money after this how did you come up withd opened all these backstories . Tudio. I got help from a pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. I cant wiat to share at ts big 5g news. shouting through the glass at t has nationwide 5g . Yup and thats faster . Faster, yea but is it reliable . Ah huh and secure you should consider making a big deal about it bigger . I said bigger oh, bigbigger deal bigger than what im doing . Its not complicated. A 5g Network Needs a 5g device. Now everyone including existing customers can get a free Samsung Galaxy note20 after tradein. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. Mark your calendars for this wednesday, september 30th, when delivering alpha returns for a tenth year back with us, treasury secretary steve mnuchin, stephen schwartzman, mark and more learn more and register. A huge event we will be covering it extensively. I will be, as well. Welcome back to fast money. Check out shares of snap surging on an upgrade to buy by analysts at guggenheim. Saying the social stock to could jump another 13 from here as advertising becomes more profitable on their platform pete, youre tracking some of the interesting activity in the Options Market related to snap yeah, there has been multiple hits, dom, sips the stance the f september. The stock was at 23. Now its pushing 25. They are buying out to november. November 27th, as a matter of fact, being bought so its been very, very consistent they were buying last wednesday. Very large buyers. Thursday even more large buyers. Today even more large buyers so a lot of activity right now, dom. Saying what this analyst is talking about, hey, this stock has room to the upside and they are finally showing a lot more profitability than they had in the past for that reason, i have been in this, i continue to roll, and i am going to continue to hold on to my calls. The option activity has certainly been ripe for a long time in this name. If its not snap, inc. , is it somebody else in social media . Is there somebody in that industry you tend to favor if its not snap . Twitter, without question twitter is one of the names. Kudos to nathan on that. In terms of snapchat, steve was talking about it early this year you go back to may and i know we had this conversation with melissa. We said its a good chance its going to take out that prior high of 18. 5 and ratchet up in the mid20s and here we are. I agree. I think the stock goes higher. Guggenheim is probably late to the dance in terms of the run the stock has had. I think it prints 30 probably into the earnings release, i believe midtolate october. Funny to hear that. Not one person decided to bring up facebook. So twitter and snap the focal points right now in our social discussion coming up on the show, mccormick gearing up to report earnings tomorrow, and traders in the Options Market are betting on a spicy, spicy hot rally for this stock. We will explain whats happening there. Plus, there is still time to vote in our fast pitch pole. Does petes pitch on medtronics check out or strike out . More fast money coming up after the break. As a little kid i knew that i wanted to work with computers. So when i heard about the applied Digital Skills courses, that definitely appealed to me. Youre learning how to create spreadsheets, documents, forms and surveys. Im thinking i can become more marketable. I got to about the third course and im like, you know, i probably could do this for a living. You dont need to be a computer expert to be great at this. These are skills lots and lots of people can learn. I feel hopeful about the future now. Its empowering to have that knowledge that nobody can take away from you. Book clwelcome back to fas money. Mccormick shares spicing things up ahead of tomorrows earnings release. In the Options Market traders are betting there could be a party in the pantry when those results cross the wires. Mike has the option for options action. Mike. Hey, dom. Yeah, taking a look at mccormick, its interesting because we dont usually see a tremendous oamount of options value in mccormick it picked up considerably today. 20 times the average daily call volume im playing a move of 4. 1 when they report earnings in line with the 4 or so they have averaged the last eight quarters the most active options today were the october 210 calls, 2,000 trading for 1. 1. 35. Buyers betting it will rally to the 210 strike price by the premium they paid. That represents a boost of more than 8 to the stock price where it closed 195, 20 or so today by october expiration some think that the earnings will provide a positive boost. Mike, dont go far. We will he ssee you at the top the action tune in to the full show fridays, 5 30 p. M. Eastern time right here on cnbc before we get to our final trade, its time to reveal the results of our fast pitch poll is america buying petes pitch on medtronic the people have spoken, pete, and the answer here is, yes, they are yeah dirty dancing music never disappoints people good job there, pete, for medtronic. Time for the final trade lets go around the horn tim, to you first. I had the time of my life tim pete, lets go to you next ill give you draftkings. I saw a lot of buying today, dom. I think it will go that much higher. Quickly, steve . Galactic. Up over 24 . Bye, bye, bye. Guy tiffany. All right that does it for us here thanks for watching fast money. Dont go anywhere. A special edition of total request face mask is coming up keep it right here a big hardy welcome to the mad money fans jim cramer is off tonight but we have a special bonus hour of fast money coming your way we have guy, tim and mike. Over the next hour, were taking your questions, thats right, were answering them live on air so tweet at us at cnbc fast money. We just might answer you live on the air so get those tweets coming in there. Lets kick things off with todays market rally you can see there a lot of green on the screen. Stocks pushing higher to kick off the week the dow gaining 410 points while the tech heavier nasdaq jumped more than 1. 8 also, check out the russell 2000 a big standout today surging 2. 5 so guy, lets kick things off with you whats your take on todays Market Action . Does it make you feel as though will come in the days and weeks . Thanks for being here for the second hour. The last week has been encouraging. Obviously, the volatility from 36 to 26 which historically is a sign and weve seen the record and i said it at 5 00 and ill say it now im not a raging bull. Im not a raging bear. I think well test that 3393 level which was the prior high it headachmakes sense for a num Different Reasons. It would be a spot on 50 retracement of the prior alltime high a month ago and the recent low. All right mike, lets go to you. Lets talk about the action from the trading perspective. How have things changed up not just in the Options Market but overall, do you feel things are still constrictive given the levels were at now . Well, evaluations get us to a place where its a little challenging but one of the things i think we need to focus number one, we have the same rule we should stick with it. We dont fight the fed the fed is keeping some support to the market no matter what we do and there is investment alternatives you have to consider the fact rates are low everywhere else so that obviously is supportive. Of course, we have had signs that there is going to be some volatility coming up and we see that, although the vix has to climb. The vix future remains relatively elevated. We look at the october, november, december, january still at 30 or above for all four of those vix futures contracts and that basically stems from and speculation that there might be considerable volatility around the election. Considerable volatility is expected if it is about the fed then why does it matter at all and guy, ill turn to you in the last hour, we heard tony say its liquidity driven. If it is liquidity driven, there should be no volatility heading into this election, right . You would think, right . Im glad you brought that up, dom. The last time we made an alltime high in the s p 500 in february, the vix had a 14 handle after todays close, we have a 26 handle. Almost double in terms of the vix move and we have a fed thats been doing things at an unprecedented level. So that has to be somewhat concerning and also, just quickly to push back a little bit. The fed opened a window, i think a week or so ago, im getting my days confused but if you recall the big down couple days, that came after the fed basically made a comment they were looking to or the perception was they are looking to pass the baton from monitory side of things to the fiscal side of things. I think the market got a bit caught off guard by that as much as the fed is clearly in play, there is some things around the edges that make you have to wonder a bit. All right the wondering is tstill happenn now. Well dive into the viewer questions. The first question from a recent College Graduate looking for guidance on the latest market volatility. Hey, everyone, this is guy from washington d. C. My question is about the s p 500. Since the early crash of september, weve seen a lot of volatility in the market with the s p 500. With the election coming up and the two debates, is volatility going to come down or will we see a boost with stimulus or a vaccine play towards the 360 high we saw around september thank you for taking my call. That begs the question about o options and volatility mike, what is your take . Is the market due for that volatility with the debates and the election coming up yeah, i think his question really had two parts one was really about the levels that you might be targeting for the s p 500. He was talking about spy when he mentioned 360 but really were thinking 3600 on the s sk p 500 the level hes talking about can we reapproach the highs . The answer was given by guy. Thats clearly in play with respect to volatility, right now the Options Market is pricing considerable volatility and i want to give people a little to think about. When you look at the october, november, december, vix future pricing from 30 to 32, what kind of volatility are we talking about . That would mean on average, the market is bouncing around at 150 basis points, about 1. 5 per day and that actually is showing that its going to persist not just up until the election and not just immediately following the election because you remember in 2016, we saw a big spike in the s p after that election but considerable volatility through the inauguration so i dont think necessarily that the worst is behind us in terms of the volatility that weve seen we could still have quite a lot of it coming up in the weeks and months ahead. All right so lets take a look at now what else is happening here next up for our question, well drill into the Energy Markets with another viewer. Hi, im patty i have a question for you about chevron. I have a lot of stock right now and i diversified but i would really like to get more stock of chevron and its a Great Company and i love chevron its good dividends. What do you think . All right thats a big question here and maybe guy, well turn to you for this one first the oil majors, especially Companies Like chevron and exxon, they could be considered some of those stocks that you want to be in if you want the Energy Exposure without as much of the volatility that weve seen yes, i know chevron and exxon have been hit extremely hard but are they the right place to be if you feel as though energy is the place you want to be thats a tough question and i hope this works out and tim can speak to this, as well chevron has outperformed exxon on the way down. I mean, you talk about chevron from 102 to 75 and were nowhere near the lows we put in in march whereas exxonmobil is actually tested the march lows and seemingly has held i think out of the two of them, out of the big cap integrated names, chevron is probably the Better Company but their head winds for both are significant, not at least the investing thats a tremendous head wind for the entire space if given the game we play, would you rather, i would rather chevron but dont sleep on exxon here having traded down to that march low and seemingly bounced. So keep your eyes open i would be really concerned if youre looking for benchmark if exxon closed below 31. 5, you have problems in the entire sector. Tim, we have you on the c nbc news line now. Lets talk a little bit about the big deal we saw today. It was wpx they are getting together. We know its not exactly a strength play. Its a consolidation play. But when you look at a company like chevron, they bought assets they bought novel. Does that mean chevron is in a position of relative strength when it comes to the larger cap oil and Gas Exploration and production type names . I think you nailed it relative strength is the story and for patty in north dakota who has a lot of stock, she owns arguably the best integrated oil and gas name i think in the world. When you think about how the chevron Management Team has at least been forward looking in the last five years to maintain Free Cash Flow there is a dividend very much in tact is it about 7, 7. 2 not a reason to buy the stock and a stock that under perform the s p by, you know, significant amount over the last, we talk about since may 15th where banks have been flat or transports are outperformed a lot of these integrated oil names outperformed by 30 . Chevron is best of breed and relative to the peer group unlike devin, they are dealing from strength. All right im looking at my data right now over in cnbc. Com because of the big drop in chevron shares this is a stock thats now lost 39 of its value on a year today basis. It now yields close to 7 . A 7 dividend yield for a mega cap oil and gas mega name out there. Mike, is there anything you see in the Options Market or elsewhere that suggestions there there is a souring on some of these names because they feel as though those Dividend Payments as hefty as they are in terms of yield are in possible danger because of where oil prices are right now . The low for the year is an issue when you see dividends that large and i would encourage people who are screening for Investment Opportunities not to do so exclusively because you see out size dividend yields but to tims point, it does seem in chevrons case their dividend is fairly well covered. On evaluation basis, they are better run than exxon but trading cheaper. The company is probably 6. 5 times enterprise value to ebitda thats a full turn cheaper than exxon is that poised them for the noble acquisition that you were just eluding to but at the end of the day, oil prices and thats what the Oil Integrated is. You can think about them as a play on their proven reserves. The fact is oil prices will be driven at the margins and when demand falls as much as it has done, that obviously is going to keep pressure on oil prices for a relatively extended period and expect that to continue. Of course, its not really a long term play to get involved with the Petroleum Business at all. Yeah, i mean, just to kind of put a point on this, we mentioned 7 dividend yield for chevron, im saying right now what is close to a 10 dividend yield for exxon at these current prices on a trailing 12 months basis. Certainly something to watch there on that trade. Well, its time to take a tweet now. This is from joshua. And he asks shourld i invest in ge for a chance of a rebound guy, well go to you for this. What do you think . General electric, ge, can it come and give back a sliver of the golden age it had 20, 30 years ago . Its not going to be a golden age stock at all what youre hoping for if you buy ge, you hope it gets back to 10 and say nice trade and move on there are a lot of issues here they zig when they should have zagged they got out of ge capital for example at the bottom. Its been a rough decade and a decade where a company like honey well is absolutely crushing it. Legacy issues, there is so many things to mention. With that said, i mean, its held this sort of 6 level now for quite sometime so maybe its putting in a longterm bottom. Im not looking for anything more quite frankly than 7. 5, 8, if you get it up to ten thats a bonus. To me this has been dead money for awhile and i see no compelling reason for it to change any time soon. Joshua, thank you for the that tweet we hope you got your answer out of guy. Coming up on the show, shares of nike on a run this year, so should you just sell it just do it just sell it our traders will dive into that name next and later on, millennials have put down the avocado toast and are buying and selling stocks in addition well bring you a list of their hottest trades stick around much more on this nubos edition of fast money is coming up after this break as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Welcome back to a special edition of fast money. Nike is a name thats making huge strides despite the struggles. The stock of the sportswear giant soared on earnings our next question comes from jared in utah who is weighing what to do next with his nike investment. Hi, fast money team thanks for taking my call. Im heavy in nike and it had a good rally im not sure if i should take earnings and trim it or sell it or stick with it thanks for your time. Tim seymore, i know youre a trafficker or owner of nike shares lets talk about what you think of nike even after the run that weve seen post earnings report. Yeah, i have trafficked and i am long in the nike and its a great question because this is a stock thats been on really such a run. You could have made an argument you want to sell on earnings on extraordinary expectations especially out of the recovery out of their China Business and the fact north america was coming back online what we heard in this quarter, not only is china up significantly into mid double digits but that you also have north america that came in effectively flat, down very small and that the business around innovation and trends they are seeing frankly, they are crushing it. Sgna was down 1 1 Digital Sales up 82 and Constant Currency terms this is a great quarter. Whats the multiple . Around these levels, i can tell you after that heroic run, i trimmed 10 of the position only because i feel i needed to they continue to reinvent themselves and ultimately trading at around 30 times is where i think this multiple could be and at 30 times the stock can go at least 20 to 30 higher. Mike, seven to ten years ago i remember covering this stock and looking at the futures orders all the time. Its not so much about futures orders today it doesnt matter as much. They dont report them 82 like tim said is this the new thing we should be watching with nike . How much they are selling online and how fast the growth is look, its always a positive when you have management of a company, make a forecast for big things that they are going to be doing with their business and then subsequently actually advance the ball still further and thats exactly what weve seen them doing in digital they have definitely moved the targets further out because they have seen such impressive growth in those areas as tim pointed out, we saw a year on year decline of. 6 overall on the revenue side. He eluded to the sgna and part of that is the Current Conditions we find ourselves in. I would expect the sgna go up a bit. One thing i would point out is that the valuations are definitely towards the upper end of the range weve seen over the past decade, thats the first thing. The second thing is after the blockbuster results, how has the stock behaved technically . Not so great its hitting the pause button and i suggested on options action people that hold the stock think about calls against the position. Jared, if youre listening in utah, covered calls and selling those might be the way for nike shares. We have breaking news out of washington d. C. Reporter dom, House Democrats are planning to release the details of their new Coronavirus Relief package tonight. Im told that the top line number is now at about 2. 2 trillion thats down slightly from the number democrats previously floated of 2. 4 trillion all of that is according to a source familiar. This of course, also comes as the treasury secretary and House Speaker nancy pelosi are also slated to speak over the phone at about 6 30 p. M. Eastern time to discuss whether or not a deal is even possible between the white house and democrats anymore. Im told that if it doesnt look like a deal is likely, the democrats could vote on their new package of Coronavirus Relief on thursday before the house officially recesses on friday pelosi wants to make sure member haves a chance to vote on something before they go back ahead of the election but again, House Democrats, im told, are planning to release their new Coronavirus Relief package tonight and that top line figure is now at 2. 2 trillion. Back over to you. The negotiations continue thank you very much for the latest there on that deadlock in washington d. C. With covid relief lets look how this has a market implication. Guy, ill go to you first. It used to be the trillions we talked about with the fed Balance Sheet size now its with Fiscal Relief packages there are multi trillions dulled out its possibly more than that coming up. Is this that added boost the additional trillions of dollars in addition to fed trillions of dollars that can keep this market moving higher yeah, clearly doesnt hurt. I mean, trying to game around whats going on in washington d. C. Especially this close to an election is difficult. Playing the game forward, if this were to get through on the margins is bullish for the market quite frankly, thats maybe why weve seen the rivalry we have in the last week, week and a half sort of in hopes that Something Like this would get through. So its clearly not bearish, lets put it that way. Mike to you here. Is this a situation where we should actively look at the election as a potential catalyst for markets and how exactly are you seeing traders positioning for it well, i think the election could potentially pose a catalyst for some volatility in the markets. I think seeing some meaningful fiscal action could obviously be supportive of the markets. Thats what were looking at is probably the most consumer oriented quarterof the year were entering right now and obviously, consumers were supported by what we seen. If we see something strong in congestion with liberal, loose Monetary Policy, i think we have something that could support the markets fairly considerably despite the risk the election itself might pose. Tim, how important is the fiscal resolution to covid19 aid to the overall market narrative . I think for the market over the next three to six weeks is very important remember, markets rally when policy makers scramble we had this debate on the stage brian kelly was one of the guys that said i dont think youre going to get it. Clearly, the markets bull back was a result of the functions. But some of it was about a need for more fiscal. The feds out there basically clamb clambering for a fiscal policy look, its critical i think for democrats to have something to hand constituents ahead of elections. They will give them something. Thats part of the handicapping that those that thought that there would be stimulus were saying there is no way they cant come to some agreement but we said that about washington before there is market bullish. I believe beyond this period this isnt really going to address the labor issues and some of the, i think, the structural issues in the economy. Its politically important and a market that loves liquidity will take this as a rallying point. The trillions from the fed and washington d. C. , as well coming up next, millennials are charging into the stock market one stock, yeah, it was a clue charge well uncover this mystery name and other picks this generation is scooping up, plus, will the bullish cycle continue for shares of peloton or is there resistant ahead tightening up the wheel . Atrd mihot fitness encong upfter this quick break. Blatch my father always reminded me, a good education takes you many different horizons and that sticked to my mind. So, when 1 a day came out, i said, why not . Why not just utilize that resource. And walmart made that path open for me. Without the 1 a day program, i definitely dont think id be in school right now. Each week for me in school is just an accomplishment. I feel proud every step of the way. Hmms and ahhs heard incall. Hey, our workers comp insurance is expiring. Should i just renew it . Yeah, sure. Hey there, Small Business owner. Pie insurance here with some sweet advice to stop you from overpaying on workers comp. Try pie instead and save up to 30 . Thirty percent . Really . Sure get a quote in 3 minutes at easyaspie. Com. That is easy. So, need another reminder . No, im good. Reminder for what . Oh. Ho ho, yeah need workers comp insurance . Get a quote in 3 minutes at easyaspie. Com. Welcome back to this special edition of fast money. Millennials have been jumping into the market since the lows of march but what are they buying kate rooney, they got to be going here for some of these, right . There are a couple themes here millennials were buying up electric vehicle stocks, speaks and stay at home stocks during the Third Quarter according to a study from a piece clearing. Younger investors made aggressive moves into the electric vehicle space tesla dethroned apple as a top stock among younger investors and chinese nio moved up 34 spots in the list of millennials top 100. Workhorse got a boost. Two electric vehicle spask went from unranked to the top 50. The out liar was nikola that dropped significantly moving down 40 spots to number 89 stocks that benefit from the on going pandemic were especially popular in q 3 peloton jumped 41 spots. Docusign went to the top half of the list and teledoc rising. Pfizer, Johnson Johnson and moderna made the top 100 as they approach and begin the phase three trials amd and chip stocks moved up multiple across these generations, its still all about big tech the report that analyzed more than 1. 3 Million Investment accounts showed apple, amazon, tesla and microsoft in the top five for every generation. Dom, back to you. Thank you very much kate rooney for that. Lets dig deeper into stocks catching the attention of younger investors that kate just mentioned. Our next question comes from a college student. Hey, this is benjamin from georgia. I have a question about pton i was wondering if we think the fundamentals can support a breakout of this ascending triangle pattern in the next few weeks . Pton, peloton, those bikes, highend guy, whats your take . A buyer or seller of those big fancy bikes . No, i appreciate the question, benjamin if you watch fast money we stand bullish on peloton and has paid off it traded a little north of 100 today and pulled back late i think you have to stay with the name baron saidcompetition in the space is actually a good thing for peloton given their lead on the Technology Front and i would agree with that. Youre going to get a little concerned about valuation at a certain point if youre not now but the trajectory seems to be higher in this name. So i think you got to stay with it on the long side. So hes long. Guy adami is there on peloton. Tim, is this a stock over run . Has it gone too far to the upside too fast . First of all, nice job with the razorbacks i got a case where the valuation is very difficult to explain here i think fitness as a service r vertically integrated. It may make new entrance and have some difficulty and this is a margin story and just a question of how far and price but i think if you own the stock, hold it. Own it and hold it for peloton. Lets keep the viewer questions rolling in next up we got jacob speaking of the dogs in georgia. Whats going on fast money. This is jacob from georgia in beautiful athens georgia with this saturday, the dogs will defeat the tigers. It had a really big run. Ill wondering if its Worth Holding on to or trimming the position a little bit . Thanks a lot. Dkng draft kings. Mike, what do you think about this particular stock . Well, it is interesting in his question he talked about 408di holding it for a long time we have to say what is considered a long time for a stock thats been around for a long time. This stock is going straight upright now and i think the company itself is in the right space obviously and of course, what youre doing is buying the growth story or it isnt much of a story anyways. If you had this stock and you obviously seen some great returns on your investment, i think you should probably be thinking about pairing at least some of that position here. Pairing that. Guy, what do we think about draft kings . Is there a secular tail wind, longer term with online betting and sports gambling . No question about it. Tim has talked about it. Weve been talking about this seemingly for the last six months on the show one thing we said on fast money they could cancel professional sports tomorrow and draft kings is still a buy because the secular shift that you discussed. Mike said there is nothing wrong with taking money off the table. Hes 100 right. Trimming this move, there is nothing wrong with taking 10, 15, 20 off. You stay with this in terms of the secular move and given the fact the headline is such that, you know, a week or two from now they could announce another Michael Jordan type ambassador or whatever they are calling Michael Jordan that could give the stock another 5 run a lot of tail winds and a lot to like about draft kings. What happens if you bring in Charles Barkley as another special advisor to the board tim, im curious about your thoughts here. Weve heard a lot of bullish commentary on draft kings and elsewhere. I know youve done it a lot on this show. Is there something that we should be wary of, though, with regard to the moves that some of these kinds of stocks have already made barclay who went to auburn. Its coming full circle. I know. I like draft kings. Im long draft kings with guy and mike are both talking about are these secular trends and Online Sports betting. If you where you throw multiple around this, you look forward when state budgets have no choice but to cave into gambling much in the way they cave to cannabis and other things that we thought were sins you have a case where Addressable Market is booming and is going to continue to grow so you have to value this as a function of what will draft kings have of the overall market by say, 2024, 25. Thats when analysts are doing. Put a 30 times ebitda on it, the valuation is very, very challenging right here for a stock thats up 450 year to date or since march, i should say. I think i stay long because i stay long the secular trends and dont see other ways to play it outside of cesars and a couple of the casinos but this is certainly a dominant way in the public markets. One of the only ways to have a pure play in that right now, at least, on the larger side of things in terms of market cap overall. Thank you very much. Still more to come on this extra hour of fast money. Coming up next, two big transportation names on the move today. Those trades and more, they are coming up ahead plus youve got questions and yes, we have answers. Keep your tweets coming in well try to answer them ahead stick with us, well be right back after this commercial break. The countdown is on. Wi this wednesday d. A. Is back for the tenth year another all star lineup including steven mnuchin, steven schwartzman, mary and more head over to delivering alpha do alpha. Com to learn more about the huge event and register. Lets get back to our viewer questions. Have a tweet on the transports one viewer asks how high can fedex, ups, and xpo go according to your next guest, he says fedex is headed for 318 a share. Here to make the case, he just upgraded fedex to a buy and i got to say, this whole idea here of the transportation stocks has been hmassive as a covid trend i get more boxes than i can break down is that a trend here to stay absolutely here to stay by any expert estimate e commerce demand is e Commerce Market has demand for that e Commerce Services is pulling forward by three years, if not four to five years fedex last quarter reported over 30 increase in their ground volumes to get this 12 million packages per day close to 800 million packages in the quarter and that was up, like i said, over 30 year over year. Fedex and ups are seeing incredible pricing opportunities. Demand is surging and both companies are exhibiting extremely positive capacity discipline so you know, economics 101 says supply and demand and price must go up. Thats the crux for fedex today. Weve been positive on ups for months and thats worked out well. Absolutely. Great job ups but just the other side of that, obviously, maybe a little late to the dance in fedex which is fine. I totally understand that. But are you concerned were talking about a stock in fedex from 89 in march to the recent 263 level, which has you know happened to be a prior high from two years ago. Is there a concern that youve seen the run already obviously, i know you have a 318 price target but you know the way these things work. Yeah, i think, you know, our view is better late than never i think if you look at were about 16 above consensus expectations for the next fiscal year the crux of the call and the reason the stock has legs and weve been quite critical of the company in the past. I was on your show a year ago, you know, talking about the disa points of this company when we downgraded but the crux of the call is this, that the Free Cash Flow going from negative over the last decade to sustainbly positive Free Cash Flow model and when you have accelerating expectations and from negative to sustainbly positive towards 70 conversion, the multiple can go higher. If you look at the multiple charts, they are trading strong double digit that discount is warranted given the track record of the last decade plus on the Free Cash Flow side but thats the real opportunity and why you see more Lever Company in the form of fedex and very low cash flow and less high quality than ups so that is less high quality and a bigger out performance in the fundamentals of the business turn. You know, thats mike here. One of the questions i have as we go into the last quarter of the year here. Some of these companies struggled as weve seen the Holiday Season and shipping season come along. This is a situation thats compounded by Everything Else thats going on. Do you anticipate the capacity constraints you are talking about will have logistic bottlenecks . The nice thing about it is the problem with Free Transportation is demand is highly seasonable and the demand, the busiest days are the last three months of the year and the nine months out of the year is significantly lower capacity which leads to pricing and discipline the nice thing about what ups and fedex is doing are implementing very stringent surcharges on surge volume and were seeing that start to change chipper behavior so walmart, home depot are actually even amazon for example are pretoning promotions to smooth out and what that will allow them to do is better absorb the cost fedex has 70 Seasonal Workers up 27 year over year. It will smooth out lumpiness to absorb the cost with the capacity were quite optimistic about peak season particularly this behavior change on chipper side are we spect respect to promoti. It will be a peak, peak season this time for sure. Thank you very much over at deutsche bank. Have a great night. You, too. Its a case of planes, trains and automobiles lets shift our focus to the airline side of things with our next viewer question. I got a question for you. Im chad from connecticut and im interested in your take on short term and long term we learned on friday they tapped the 5. 5billiondollar loan fro treasury there is speculation there is an airline stimulus this week and typically in an environment where it goes up, shares unable to buy back stock and issue dividends it would be going down however there is a lot of catalyst im interested on how youre playing it. American Airlines Part of a controversial and hot industry given the involvement of washington d. C. And taxpayer money and bailouts guy adami, whats the trade . Is it american or another one . Southwest, i think, is the most valuable market cap airline in america at this point. Yeah, i think tim would agree with this. Delta is probably im not saying thats the best stock but the best airline in erm thes of how they run it in Balance Sheets American Airlines up 200 in options. Id say this, and im not saying you have to go out and do this if youre up 200 in anything. If you sell half the position, youre in the rest for free. I think it gives you a lot of flexibility to stay with the underlying equity. I dont necessarily love American Airlines but i love what youve done with a trade and if you are to do that type of pairing down, i think it would give you a lot of flexibility over the next couple months. Thats the trade for American Airlines thank you very much for that. Coming up on this special bonus hour of fast money. Shares of version galactic taking off to the moon is it time to bet on the new space race, tourism style . That trade coming up ahead and cocacola falling flat this year pun intended can a rally bubble up, pun intended or should you just can this name . Pun intended thatndorwh wco bk a me ene meac after this as someone with hearing loss i know what a confusing and frustrating experience getting hearing aids can be. Thats why i founded lively. Affordable, highquality hearing aids with all of the features you need, and none of the hassle. I use lively hearing aids and its been wonderful. Its so light and so small but its a fraction of the cost of the other devices. They cost thousands less. Its insanely user friendly. You take the hearing test online, the doctor programs in the settings. You dont even need to go into an office. Theyre delivered to your door in a few days and youre up and running in no time. It connects via bluetooth to my phone. You can stream music and you can answer phone calls. The audiologist was so incredible shes full of all kinds of little helpful hints i love it. Theyre a game changer for me. I feel like i can take on anything. It feels great to be in control of my hearing. Better hearing has never been this easy. Try lively riskfree for 100 days. Visit listenlively. Com we did it c crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Hello, this is sol thank you for taking my question i would like to know about Virgin Galactic. Purchased their share when they were trading at 26. Since then, it went down to 14 and today it finally bounced back and went all the way up to 20. What i would like to know what do you see this stock going . Should i hold on to it or should i buy more to average down or what is the forecast thank you. All right thank you for your question. Sol in toronto youre right check out shares of Virgin Galactic rallying today alone. Two, two wall street firms initiating coverage with this particular name with what else buy ratings. Bank of americas ron epstein, one of them was on squawk box this morning here is why hes so bullish on the future of space. Virgin galactic, for sure they will launch their commercial business officially open it up for, you know, commercial Service Early next year with their first customer will be sir richard branson. Were expecting that either in q 1, q 2 of next year and away we go. So are those shares of Virgin Galactic going to the moon here . Tim youre on the newsline. Spc spce. Im back. I feel like i went to space and back these are the numbers that frankly without valuation people dont care about and the market throws a lot of Capital Allocation towards the fundamental analysis on this is just that, there is a commercial space craft opportunity and opportunity. The commercial spacecraft opportunity probably, you know, does a billion or so by 2030 and then according to different analysts, it grows at 50 . These guys are far out thats far out in the future i recognize that the excitement around the upgrades on a day like today is something that would have people wanting to chase it but im not going to be one of them. This is a stock and maybe you can make the same argument about draft kings and other stocks we talked about tonight that are difficult valuations but this is one that i cant chase and i think is a function of liquidity environment that is not sustainable. Mike, on the near term, the average trading is 16 million shares today, it traded around 54 million shares in the regular session. A lot of that is because of what is happening in the marketsover a overall. Is Virgin Galactic one you should play on the long side given a 25 run today . Look, i mean, this is one of those speculative plays there is a couple ways to sort of think about this one of the ways to think about it is that at a 5 billion enterprise value or there abilities, which is probably where we are, youre going to try to discount what the business will be ten years from now. You can say well, if you put your money down, 5 billion is good at 4 billion i dont know if it will make that much of a difference if the momentum continues, youll be a winner youre playing for something that is still sometime out in the future you know, you had a situation here where the stock also did have a meaningful move off the lows that this viewer was actually talking about that could actually create some profit taking and that might actually slow down that growth. All right so watch out for that move after 25 upside today coming up next, we are talking more about the tweets that you have dont go anywhere. Remember, cnbc fast money well try to answer them live on the air coming up after this i cant wiat to share at ts big 5g news. shouting through the glass at t has nationwide 5g . Yup and thats faster . Faster, yea but is it reliable . Ah huh and secure you should consider making a big deal about it bigger . I said bigger oh, bigbigger deal bigger than what im doing . Its not complicated. A 5g Network Needs a 5g device. Now everyone including existing customers can get a free Samsung Galaxy note20 after tradein. Welcome back to this very special edition of fast money. Cramer is off tonight but back tomorrow in a big way. The ceos of thor, polaris and mccormick sitting down with jim cramer catch an all new mad money tomorrow 6 00 p. M. Eastern time here on cnbc weve got time for a few more tweets so here, take a look at this e one. True ben 14 says sell or hold at t whats your take this is a real under performer in the post covid rally for the market if you look at the business, the overall kind of environment and mayor players is alleviated some of the margin pressure there and i think that youve seen some upgrades in the business the Entertainment Group and warner media segments are a case where again, depends on how youre valuing some of the parts here and thats historically a way in which people get excited about at t ultimately, i think the post pay phone ads and some of the disconnects are subsiding and i think that the core business is very much in tact. People worry about the Balance Sheet but an environment with these guys , i stay long and th 9 dividend yield. Thats a big dividend yield for sure mike, how do you feel, buy, hold or sell at t i would be a buyer here i think first of all thanks dividend has proven to be covered. I hold the stock myself and actually, were at a level right now where i think that the risk reward is a lot more favorable so buy, sell or hold, id buy it. There you go. Buyer of at t two times around the next tweet is from john on long island. He asks thoughts on ko at this level. A Strong Company that reorganized recently happy with a 3. 25 dividend yield do you see it closer to 50 or 60 a share by the end of the year guy adami to you. James quincy was on, the ceo last week with jim cramer and talked about hard se erkseltzers technically, its been pretty constructive i think you can see the stock to continue to rally up to the 59 level where we broke down significantly from the winner into the earnings release. You can stay with ko for sure. Stick with cocacola. Mike, how about you . How do you feel about cocacola . We have 30, 40 seconds for you. Yeah, this one is a grinder and i think obviously, the dividend is supportive of it and the stock has as guy talked about reasonably constructive. Not a growth stock but probably a safe one. All right that does it there for cocacola. Couple good looks there. A buy side for cocacola thank you guys very much for joining us for this special bonus hour of flast money. Remember, tomorrow, jim cramer, mad money is back. Ceos galore and thank you for sticking with us on fast money where we took your questions keep them coming in. Go cnbc fast money on twitter we love getting the questions and answering them live and keep it here because the prime timelineup is coming up and shark tank is coming up next thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Hmms and ahhs heard incall. Hmms and ahhs heard incall. Welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. Who has been unable to get a loan anywhere else. He has come to the shark tank for his last chance to get the money he needs to grow his business. Im tod wilson from somerset, new jersey. Im the owner of mr. Tods pie factory. Can i have a personal sweet potato pie . Okay, would you like anything else