The s p market barely budged but the stunner was the bond market, hitting its highest level since march. Chris called this on the show a couple weeks back. Where are we headed from here . I think we are headed with the yields going up still. What is important about this move, it is not a few days old it is a few months old the trend here is several months old. I think any shortterm pullback in bond yields, that would be an area to be a seller of bond. We think yield can go up from here if you look at the longer term chart, you have to focus on where yields bounce from in 2016 and where they broke down from in 2020. When you look at this move, i think 130, 140 is ultimate lit where this is likely to go thats where the key levels are. I think as bond yields have gone up, the yield has gone up. 80 basis points and i think Equity Leadership changes ri long with that the kre here is starting to break out, not just relative to s p but on its own right the technical is starting to improve here as well and i think ultimately you have kre pushing 59, 60, 61 over the next number of months. The stocks you want to play, regent financial, rf is one of the better looking ones. I think it speaks to a curve and higher yield none of these are new trends i want to underscore the yields you think they will go. Much higher than here, correct i think 130, 140 are the levels to circle these were the big levels earlier this year and in 2016. This is where you broke out from and where you broke down from. Think about this as gravity yielding the bigger story is not yields themselves going up, but the curves steepening. This is a threeyear high on twos and tens. I think it speaks to an environment where banks can do much better. Chris, we will let you go we start off the show with chris which is a departure from our normal show. Higher rates is the prism through which we need to view the market at this point, guy. In a world where rates go to 130 or 140, what does a stock market look like . Like a tarantino movie. Is he in the booth i know he is a huge fan of fast money. No. You heard sarah talking about the bond market being closed tomorrow we are at a critical point 133. 16 was the lowest. That coincided with 95 basis points or so thats the line in the stand i think we are going higher in rates and lower in the tlt you can go to the banks or go to tims resource trade that has been on fire i think all of the names still work we can talk about cities still being cheap on a tangible book i think the place to be is resources. It has been an extraordinary week and today is just tuesday s p financials up 8 kre up more than 16 these kinds of moves are like the moves you would see in peleton in a single day. And i think you have a case where the banks will go higher some sense they were a lot more concerned. In other words they didnt have loan provisions. At least we have a better sense of it. It is important to talk about yields today we had the highest tenure auction of all time. 41 billion was auctioned and it was soft this was after basis points from august you should have had good demand. It underscores another issue i think rates are going higher, too. I dont think they can get too far away from an upside. We are at 160 going into covid and we started the year at 10 ultimately equities will respond. Guy talked about freeport, but glen core which is as leveraged as anybody was up today. I dont think we have spoken to you since the election. Kudos to you for having chemicals and some of those in your rotation. I think you have to stay with financials i am staying with those diversified chemical plays i am pro tating out of technology, staying where i am if you look, where the guys are saying, jp morgan is up 27 . Gold is up 60 in seven days tenyear is up on percentagewise 35 in three days, over 90 in 90 days. So you have to stay with the banks. Everyone bet against them and now you have to bet on them. Industrials, banks, keck kals. Chemicals thats what i would continue to do it feels like we are long in the tooth. This just started. I think it will take much longer will it take 20 years . No i think you will see a gross outperformance by value and thats where people watching the show should be putting their money right now. Selling their technology plays going to value plays, starting with banks pete . I am not so concerned about the Technology Names i have not sold one of the ones i am exposed to at this point in time i agree with the materials and banks. Steve laid it out nicely the performance out of bank of america. All of these stocks including many of the regional names, i am very happy about it. I was one of the people getting pretty frustrated, not knowing when we would see performance. We heard how good so many different parts of the bank were they are going to start to see a little more improvement, especially if we get to chriss targets of i think he said 130 or 140 that does well for the banks and regionals. Many of these names, not only do they give you the yields, but we have had incredibly high volatility to sell against these positions. It has been a place to be even when we havent had the performance. Now we get the additional performance side of financials and this gives you an absolute home run the jp morgan, if i can sell options and get a dividend yield and get performance from the stock which we havent been getting, this is something i look at as a home run. Guy, does this mean we should be expecting better Economic Growth on the horizon if we believe rates are rising to 130 or 140 i think most people say that would be the case. I am not certain that is the case rates can go up for that reason, the right reason and i think we are in the other reason camp if there is some chance of getting a stimulus bill through in this new administration, assuming thats what is happening, i think that could lead to some hope for Economic Growth we are coming into a dangerous period in terms of the virus and season i am hardpressed to think we will see growth commensurate with the bond move maybe the s p 500. Thats one thing you have to look at as far as yields going higher i think they are going up for the wrong reason is it good enough to know they are going higher and that is how you invest . When rates got down to 35 basis points during the lows of the crisis, that was disturbing on many levels i would call this rates starting to normalize the bottom line here is that rates are going higher for a handful of reasons, and they include deficit dynamics, issuance dynamics, the early stages of a recovery, even if they are not upon us, will be priced in before that. Make no mistake. In some sense, even though the fed is not going to go near this, the fed could be backing off uber accommodate Interest Rates are going higher. Whether utilities, resources or banks, have been rallying for the last couple days they have been outperforming for the last month and a half. We have a news story on a listing. We have been watching for air b and bs s1 it was expected to drop tomorrow, but a source told us we should expect it next week. Perhaps the delay would give it a little more distance from the president ial election. Remind me where is it pose to list the nasdaq, a big win for the nasdaq one might think that conditions at this point in time for nasdaq arent quite right. Pete, where would you stand for an issuance like an air b and b. The excitement was there, but it was there for uber as well. It had a short love affair and then they sold off have they waited a while for air b and b . I think we are seeing improvements, so maybe they will get fortunate about the timing, it is a frothy area for a lot of various names. And because of that, i think it might be dicey at this point in time coming up, Supreme Court takes up obama care. And lyft, the company whmpg enis. En fast money returns. Ein. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. And try pure protein shakes, with 24 vitamins and minerals. If youre concerned about the environment and climate change, how do you find companies that are driving the right outcomes . If you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities . For nearly 40 years, calvert has delivered competitive returns by investing in Companies Making a difference because we see value in doing good. Talk to your Financial Advisor about investing responsibly with calvert. Dont settle for silver 1 for diabetic dry skin 1 for psoriasis symptom relief and 1 for eczema symptom relief gold bond champion your skin gold bond its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Welcome back to fast money. Shares of lyft surging lyft is soaring far above a year ago now in its own shift, the company says it is looking to take a slice of this Delivery Market and that has turned around shares in the after hours. Shares were down, but now they are up by 5. 5 they were up by as much as 7 . That would bring gains to more than 60 the company said it is looking at what it sees as an untapped market it thinks it could avoid some of those Higher Commission fees that have created backlash john zimmer, have a listen we spent time talking to retailers and other local retailers about what they need they said current delivery models with commissions are not working for them he is basically calling out uber here. I spoke to an uber executive after that prop 22 win in california i asked if they were friends now with that proposition passing. He said, no, they are still frenemies. I am confused based on what i am hearing and his press release. It sounds like they would be competing with uber, but he said he would not foray into consumer deliveries they wouldnt have a consumer facing platform. When you open up uber heaeats, t is labeled under this umbrella it would be a white glove model delivering behind the scenes door dash does this also and lyft has been doing this for some grub hub models but they would just be doing delivery behind the scenes it may not have as many costs so it may not have to cause the same kinds of commissions that grub hub and door dash and some of those have. So they are doing delivery. You had always liked lyft because of its pure play model and i work there. I did work there i drove in hoboken which is a difficult place to navigate as a lyft driver. You had the joker, joker for lyft joker two was the pfizer news and joker three, i thought lyft could outperform uber. Thats happened. But over this 39, 40 level, you have to take money off the table. I think you will get a chance to buy it lower when i say lower, low 30s again. It is a great run but all of the cat lists you have been waiting for have happened with earnings today. Grasso, how do you feel about lyft kudos to guy. He called this underperformance. It has popped about 80 in nine days it is still down about 11 yeartodate uber is up 60 yeartodate. They have revenue of over 18 billion. Lyft pales in comparison they would have to grow internationally. I dont know if they will do that as guy named, a joker, joker and wild card. With a vaccine on the forefront, people are getting back in cars. They are recovering. Does it mean lyft is a better bet . Longterm money i would be putting into uber. I think they have a nice revenue stream on the horizon and i like the fact they are pulling 5 billion internationally as well as what they are doing in the states we have much more coming. It is the great rotation, or is it . Big tech selling off for the second straight day even as the dow reaches towards new highs. What does this say about the market and what should you do with the Major Players and later, legacy automakers are looking to reinvent themselves is this the start of a whole new world for these companies . We have that and a lot more. Hi, my name is sam davis and im going to tell you about exciting plans available to anyone with medicare. Many plans provide broad coverage and still may save you money on monthly premiums and Prescription Drugs. With original medicare youre covered for hospital stays and Doctor Office visits, but you have to meet a deductible for each and then, youre still responsible for 20 percent of the cost. Next, lets look at a Medicare Supplement plan. As you can see they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance, but they often have higher monthly premiums and no Prescription Drug coverage. 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There is no obligation, so call the number on your screen right now to see if your doctor is in our network, to find out if you can save on your prescriptions, and to get our free decision guide. Humana a more human way to healthcare. Welcome back to fast money. For the second straight day of dough clinedeclines, our next gt says get ready julian, great to be with you great to be with you. I feel like you are the grinch because we are expecting seasonally some kind of rally. Sanity clause to come. And yet here you are, highs are in, its over. Its not over in fact, we think that 2021 is setting up to be a very good year when you look at 2020, the seasonals havent worked that well you saw massive rally, massive volatility and huge volume during the summer months when you dont traditionally see it and when we look out over now and year end, inauguration day, there is a lot of uncertainties with regard to politics. Will there or wont there be stimulus, with the virus accelerating those are head winds with the rates creeping higher which are punitive for the nascar nasdaq i think its very noticeable that all of the major indexes made a high. Its interesting that the broader markets could be held back longterm we think a bullish 2021 will be written by financials, small cap. It has traded over a 1. 5 multiple premium what we are seeing with president elect biden talking about making tweaks to obama care not ripping it up, and we are getting body language from the Supreme Court that they are not likely to strike it down either as a derivatives guy, you see volatility in markets. We are halfway through our sixth 10 move since august 5. Down 10 and up 10 and so on. What does that tell you about this market . Ultimately this is extraordinary in historic terms. There is no question about it we all know, having lived through it, whether investors or not, that 2020 has been an extraordinarily historic year. When you look at the next several weeks, the message is that this level of volatility is to be expected and frapgly, when you think about the average price, its hovered between 25 and 30 for the most part of the year. You are right in pointing out volatility comes in during the most wonderful time of the year. Julian, nice to see you i feel like we need a countdown to christmas clock guy yesterday said that it looked like maybe a top. Pete was saying tjuly juls saying the same thing. Pete, where are you on that . We still are dealing with the election i think a lot of things can send us higher. We talk about volatility a week ago we were trading 37 and now 25 i dont think we sit here that long i think we will see more volatility, but not necessarily in a negative way. I do think there is a huge difference between growth names and quality names. There are names that separate themselves, whether a zoom or peleton. There are quality names that have pulled back a little bit. I think it actually gives us a little bit of upside we have a massive huge game ahead, but i want to go to guy quickly. Are we going to look back and say that monday was in fact the top, now that you have had 24 hours to think about it, guy the s p 500 for you armchair technicians, people can talk about the potential for an island reversal. It still sets up that way in the s p 500. Yes, thats one of those pages in the book. We did this moby dick thing months ago that you want to put a check mark on. I know you are one of the students that highlighted i dont like to right in books. I like to respect the book lets get to that game we want to know if any of the tech names are worth a buy so our favorite game, trade it or fade it we start off wide, qqq down nearly 4 this week. Pete, trading it or fading it . This is a great example when you look at qqq, you look at microsoft, amazon and apple, i like these names i dont put them in the just plain old growth category. I think its trade it time i think it goes higher i am going to fade the qs, mess lis is a. This is everything in the whole essence of the value into value. If you are paying for Tech Companies and rates are rising, you have to discount the rate on that sto that stock valuation, so i would fade the qqqs. Microsoft i would trade it. They gave you a fantastic start to the fiscal year beat a lot of expectations i think 32 times, 33 times in the world of these mega cap tech stocks dont run too far. Into fact, stay in that name this sounds counter intuitive, but microsoft is a quality name i think the real level of support comes in the form of 190 which was the prior all time high in february i am in the trade it camp along with smooth advanced micro. All of the shortterm averages have rolled over which means the stock is losing momentum this stock has doubled since november of 2019, precovid. I should have said that first, fade, but i would fade amd i think it will be hit with major head winds in the next couple of months and years i think you know where i am going. Trade it especially because it has just had this pullback earnings, they not only beat but guided higher and also bought zylinx i think that will come back multiple areas it will help out with amd and competition. It has made a nice pullback. I think it will spike back up. We might spike 100 bucks before the end of the year. In the old days we would have had a split screen between pete and grasso seems like days of yore. Square, ink trade it i think the prior all time high is 168 on september 1. Thats your huge support level trade it, square, melissa. I am jumping off the top turnbuckle and fading this one hard long time owner, small legacy position, but the stickiness, the cross selling, a great story, a valuation that is different. If you see tech pull back, this will be it what do katy perry, and Magic Johnson have to do but first, tims fast pitch. This could help your portfolio take off welcome back to fast money. It has been a turbulent year for airlines but one airline that could gain altitude tim, take it away. Boeing. This company has been on the waiver wire or sent to the showers for arguably the last year on dynamics around the airspace and covid19, but the max fiasco the story doesnt change until the end of 2021, but it changes the Investor Sentiment it gives you a when, not an if recovery it will outperform in my view. The second point is that the Biden Victory is less bad for defense stocks than expected i think the outcome was perceived to be negative especially as their commercial aircraft business has suffered, defense stocks have become important. I think boeing will get that benefit. Value over growth. Is boeing a value story . I am not sure, but if you look at the cash flow recovery, where i think they will be when 737 max recovers is the Second Quarter of 2021. The chart to me is very interesting. A breakout about 170 in the last two days is an important breakout, well above the down trend set in the june highs and a wedge coming in from the lows set in march so i love the chart. Time for questions. Pete, i have a quick one for you, tim for a long time we have looked at boeing and said it is all about cash, the incredible amounts of cash flow they have can we go back for a second longer which is to say will they be able to return to that cash flow thats the right question because this company was a cash flow machine a company that now has been staring at 50 billion cash burns. I think it starts in 2021. In the meantime they have significantly tightened the belt you are not buying it for the 35 bucks a share. Are you buying on tims pitch . I am going to say buy i like the fact this stock has been building a base for the longest time i think its ready to start taking off i actually really didnt mean that when you look at the airlines right now. If if you overlie a chart of any other airlines, they look similar on their charts. I would say that boeing is telling us something i think we all know what the negative has been in the space and specifically with boeing, but we are working through that and the chart seems like its break out and is above the 200th day for the First Time Since 2019 the bigger the base, the higher in space according to great words. Pete, what do you say . I love tims pitch. I think he is right on a lot of levels, but for me, mel, i think okay. You are not buying guy mel, can you read that . I can almost remember their funny faces. Who are you referring to i know tim knows what that is pete knows, steve knows. I can almost remember their funny faces which is a great lir i can from a Paul Mccartney level. I think its going to the 230 level it went to in early june i think it trades there. Is this a trade or fade or power pick, i am going with tim. You are buying it that was sur c you can vote we will have the results later in the show. And ford, the giant doubles down on green. 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. Othey help us with achievable gsteps along the way. So we can spend a bit today, knowing were prepared for tomorrow. Wow dad, do you think you overdid it maybe . I dont think so. What do you think, peanut . Nope. Honey, do you think we overdid it . Overdid what . See . We dont think so, son. Technically, grandparents cant overdo it. Its impossible. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Welcome back to fast money. Ford shares jumping on news that ford is looking to ramp up vehicle efforts. Its not just ford, but gm, too. Ford and gm said we are making a concerted effort to put everything in place for electric vehicles the announcement today is that they will be pumping another 100 million into their plants at kansas city thats where they will be building the evan, its a commercial van they have been wildly popular not only here but in europe. The mustang mache, the etransvan and then the ef150 that is the big push when you look at ford and gm and compare them to tesla and neo, people will say they are flat lining they are not getting the same move as you see with tesla and neo, but what you see with gm and ford is a true plan to moving ford with egs vs as quics possible for gm they have the lyric, and the gmc hummer, and we will hear more about that in the next year yesterday they said we are hiring another 3,000 workers they are going to be working in electric vehicles and our development of software as a service. It is not just that we are making these, but we want to make money and continue a revenue stream both of the stocks have moved higher along with the streak people will say they are not doing what tesla and neo is doing, but it is a step in the right direction. It may not be the same audience it doesnt say that one wins at the others expense. Ford with the etransit, they are looking at commercial customers. They believe it will take off faster than with you and i, the retail customer who might go out to a retailer or order one through an auto maker. We have been talking about a potential rerating of these auto stocks if we could get a little with tesla and neo, it is good. And they will probably be cash flow positive in 2020 in a ridiculously operating environment. At 6. 25 a share, a tentimes multiple is easy math. Gm has been working in autonomous but now you are just hearing it that walmart will be looking to test out autonomous deliveries for walmart the dynamics around nicola or not, they have been investing in this space for a long time this is a company that has proven it can win in a difficult environment. It will Never Get Close to to a tesla multiple the hummer sold out. There are a lot of people that would rather buy gm. Guy, a chance to redeem yourself you used the white board poorly by not saying if you would buy tims idea or not. Way too much. Would you rather tesla or gm . Right now i own gm calls and tim was talking about for the right reasons. In october this was a 30 stock and now they are above 41 and continue to buy upside calls in march they were going for 55 calls. The comparison of the two, i would have to go with tesla. I continue to see the growth and potential and data and the different sides of it. I think it is a tech company more than a car company. If you put me in the box, i am going tesla. Hospital stocks, why one may be the cure for your portfolio a company that got burned on its Earnings Results yesterday you can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Welcome back to fast money. The Supreme Court hears argument regarding obama care there is betting that hospital stocks could have a lot to gain or lose. Mike, take it away we are looking at community health, the operator from tennessee. Right now the market is implying it will move more than 25 by the end of the year. Some could have been profit taking given the fact that the stock rose and fell 10 today. So they may be expecting a pause before we get to the volatility that led us here today options action is friday at 5 30 alibaba, are our investors buying this hype and the twitter poll tim says its time to buy boeing do you agree eye of the tiger katy perry. It is . It does not look like katy perry. That is her performing oh, there she is alibaba shares were down today 8 in todays session. There are a couple of things going on the Chinese Government, the negative is that the Chinese Government is trying to rule out monopolistic behavior. I think the Chinese Government is the one putting the most headwind on that space i would avord it katy looks different with the hair she is a fan of the show so if she wants to call in, she is welcome. Twitter poll america likes tims pitch on boeing 52. 5 . So you have the popular vote and electoral college. Tim . If i cant dance with katy perry, i am going to dance with boeing i see it going higher. Pete grasso tim wants a recount Morgan Stanley is having a space. I am going to go with Valley National bank. I bought the stock an the calls. I think its going higher. Guy mel, 45 years ago the he had mond fitzgerald went down on a cold and an unshakable commitment to keeping each other safe in honor of veterans day, jim cramer, gives thanks to those for whom the greater good is their lifes worth mad money salutes to Service Starts now