Transcripts For CNBC Fast Money 20161117

Conversation with a foreign head since the election last week. Top of the agenda, as you mentioned, its going to be trade, its going to be business, its also about security at this point. Japan is the Third Largest economy in the world. Americas fourth largest trading partner. And very central to the transpacific partnership, the tpp, which a lot of people think the tpp is pretty much dead. Abe isnt convinced just yet. This is an attempt by him to maybe make one last push to convince donald trump of the merits of more global trade. Security is very important to japan given that they are in a region with a rising military power in the form of china. Donald trump has threatened to pull u. S. Troops out of the country. He has also encouraged japan to maybe seek a Nuclear Arsenal of its own to counter the weight of a rising Chinese Military power. But were going to try to get to an official photo later today. No video is allowed at this meeting because its seen as a less formal meeting. The trump camp has really emphasized to the media, this is a private discussion between donald trump and Prime Minister shinzo abe. This is different from a sitting u. S. President , barack obama, who is overseas right now. They want to highlight to us, this is not formal, this is not organized by the state department. Hence we have had a lot of protocols going in a different direction. You didnt get much information 24 hours ago as to when or where this meeting would take place or if it was going to happen at all. As soon as we get headlines, well get that to you. Its crowded on fifth avenue, a lot of police in the last ten or 15 minutes. The crowd is growing. Back to you. Susan li, thanks very much. The trump rally rages on. The dow and s p 500 are both higher today, small cap russell hitting an alltime high. Financials and consumer digs discretionary stocks are rallying. Folks, here is your big money question tonight. Did Donald Trumps win make the fed almost irrelevant to the market, by the way . Lets welcome in guy, dan, tim, and steve grasso. Does does the fed matter right now . The fed has mattered less and less. Theyve brought that upon themselves. I do think at this present time its more about growth, its more about the financials. Its more about deregulating the financials. Kre, thats whats been up 20 , regional banking index. Let me just finish the thought. That one has the best ability for less regulation. This is the one that will actually come into play in a deregulatory environment. I think the fed is the most important player by far. I think Interest Rates are the call right now. I think in fact the market needs to get a better sense from the fed. The fact that were at virtually 100 fed hike in december, no, thats not something we should shrug off. I think the market has gotten to a place where were comfortable. How can you say its comfortable . The fed was the most important thing, where every time they hinted at a raise, the market would sell off. We havent seen that. It seems like the market has pushed off the fed and is more concerned with trump. Hold on, guys. Lets match that story. I think youre both right, in a way. What youre saying is valid, but i do wonder, guy adami, if the fed moved because its basically 100 priced in, has already happened. Bond yields back over 2 . The market has done the work for the fed before it needed to do it itself. The difference now, though, i think what tim is saying is, now you have fiscal stimulus. The stefed doesnt have to do t job entirely by itself. I think the market would be selling off in a meaningful way under a clinton administration. People say, you know, the fed is important, but fiscal stimulus trumps everything, no pun intended. It doesnt mean i agree with it, by the way. Steve and i will disagree with this, and thats what makes markets. I think rates have gone up as quickly as they have because the people that own our debt are terrified that maybe somehow were not going to renege on our debt but well renegotiate the debt. You would have receive that in the marketplace. The last time we ever heard any blu blurb about that, the market sold off drastically. I wouldnt think you would have the ability for the market to hang in. Dan, its a good point, chinas only lever to pull with us is debt. We dont sell that much to china. The amount of goods we sell every year to china is about the same as the gdp of maryland, mostly scrap goods. They own a lot of our debt. That debt sell would be their lever. I dont think a lot of people thought donald trump was going to be in office and i dont think a lot of people took those kind of trade war and currency war stuff particularly seriously leading up to this. Now i think you have to consider it. Theres a lot of goods and services that wont work. Youve heard a lot about smartphones. They want to go in a trade war with smartphones, where do those components come from . It would really be a real problem for our economy if he go down that. I agree, i think the fed is really important here. I just want to tell you why. Last year at this time the tenyear treasury yield was trending where it is right now. At that point it was a near certainty that they would raise for the first time in nine years, and they did. They also signaled four more raises in 2016, and were only get one. You know what fed fund futures are pricing . Not a whole heck of a lot, under 10 . I think the market may be ago with the second increase next month. We may not get a whole heck of a lot. What rates have done is price in and fast forward growth that a lot of economists didnt think was going to happen. China is our Third Largest export market. I think it is a big deal. My numbers are correct. Its our Third Largest export market. But its not that big. Its the gdp of maryland. 115 billion. 126. Its not that big of a market for what we sell. Unless youre boeing or caterpillar. The biggest thing these guys can do is decide not to buy our debt or sell our debt and watch it trade off. That would be catastrophic for them, just to be clear, that is not for them, not for us. The bottom line, folks, there are so many Equity Investors in the bond market. This is reallocation. You cant tell me a move from 160 to 220 on a tenyear that didnt deserve to be 160 or 230. Im not saying its entirely that. I think its got to be partially that. I mean, i think theres clearly reallocation going on. All im saying, and i could be 100 wrong, the rhetoric mr. Trump spoke heading into the election, never thinking he was going to win, he wins, i would back off and say, maybe its not the best place to be right now, especially if he decides to not that he can decide unilaterally, but float 50year bonds. I think its the my only point was that thats the biggest fiscal monetary weapon theyve got with us, is the threat of selling off our debt and jacking up Interest Rates, hurting the u. S. Consumer, the u. S. Housing market. The chinese are very pragmatic. Thats just not going to happen. If its not the fed thats the most important, what is the most important factor . I think its about people thinking growth has returned to the market. Its going to be huge. Weve been macro, weve solved the worlds major problems. Lets go a little more micro. Guy adami, did you buy anything today . No. Tim used this word, i think the day after the election, that mr. Trump will be more conciliatory in a number of different ways. The most meaningful way is mexico. Look at name Kansas City Southern which went from 95 to 81 1 2 after the election. Now its 86. We talked about that last week. Interesting. I have not loved the banks, but one bank i have liked a lot for a long time is u. S. Bank corp. Making an alltime high today. I think both trades still work. I think it was your final trade last night, cisco holds sturdy. That guidance last night was obviously really affected by the move in the dollar. He saw a lot of q3 earnings that came in midoctober. Since then weve had the dollar index move up 3. 5 . I think youll start seeing that impact earnings. When you get to a certain point, when you look at the ciscos, intel, trading below market multiple, i think they probably work. Intel actually also had guidance that was hurt by the dollar. That was a few weeks ago. But so to me i think you want to stay away from f. A. N. G. And rotate back into microsoft, cisco, intel. Did you buy anything . I stayed long. What i bought on the heels of the trump election, united rentals, its trading in the low 90s. Thats an infrastructure play. Nobody has any idea how big the infrastructure is going to be. They run a lot of these big machines, you work it overnight as a crew, theyll rent it to you. Thats the idea. I made it easy and i bought spyder. 21. 93 is our old highs. If we last through there, ill buy more. I actually think the regulatory pressure on that sector doesnt go away overnight. Its been a huge move from 240 to 290. Well expect great things overnight. Ahead, a tech investing expertise, roger macnamee. And a new plan to keep customers coming back and, dare i say, loving it. Tesla shareholders voting to merge with solarcity. Will this be a good thing for tesla shareholders . Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back to fast money, everybody. Valeant pharmaceuticals under fire today after Company Employees were charged with fraud. We have more on this developing story including a comment from valeant. Meg terrell. Reporter thats right, a busy day for valeant. Two executives, one an employee of valeant, one an employee for philidor, were charged with defrauding valeant as a company. You saw valeant stock rebounding from an initial loss as people realized this investigation was focusing not on valeant as a company but on former employees. Then representative Elijah Cummings came out today saying it was great these charges were made by that valeant hadnt cooperated with his congressional investigation. Valeant just now getting back to us with a statement on that, saying, mr. Tanner, the former valeant executive, ceased to be an employee on september 13, 2015. Valeant has cooperated with the full committees review from the beginning and is working with the committee to accommodate its requests. You can see there is a continuing push and pull here as a lot of folks hope these charges being weighed against former employees meant that maybe the legal consequences for valeant wouldnt be so bad. Analysts have been coming out today saying the company is still dealing with dozens of investigations. Perhaps this Elijah Cummings statement showing that the pressure is going to continue. Moving to other areas of pressure weve been seeing today, this week mallinckrodt is coming under pressure, as citron put out a new report challenging a drug, the price of that drug, saying that the medicare exposure of that drug is higher than investors were led to believe. Analysts are defending this one, saying its still a buy, but pressure is continuing formal inkrot. Another specialty pharmaceutical company, mylan, the focus of a hearing by Chuck Grassley on november 30th over the misclassification of the epipen to medicaid. That hearing is happening november 30th. And in news coming out this week, the department of justice saying it hasnt agreed to any settlement around that. Mile mylan saying its working on finalizing it. Thanks, meg terrell. Theres no reason to buy the stock right now. There have been a couple of Trading Opportunities which we havent been on the back of, granted. The stock has been Straight Line lower for the last year. Mylan labs to me is the most interesting, because of valuation. They do have a business outside the epipen. With that said, if youre trying to pick bottoms in valeant, youre playing in the wrong court. Weve named three Companies Really troubled here. There are so many good stocks in health care, so many good companies, good stories, good Balance Sheets, valuations. I wouldnt even look at these things. But people are. Listen, we know that people are actively trading valeant on a daily basis. High volume. Is it anything other than a coin flip . Because no one knows how these investigations are going to turn out. How many times have you said, ill try and buy it now . You would have been wrong. Youre guessing. Im agreeing with you. Its nothing other than a coin flip. At some point youll be right, but its not worth the risk. This process will benefit a lot of politicians. To say the political pressure comes off these companies overnight, its absolutely bipartisan. Walmart and best buy reporting before the bell today. That kicks off our top trades. Best buy, surging nearly 14 . Walmart sinking about 3 . Big box retailers have seen a bump since the election last week, target up 14 , best buy up 22 , a double deuce. Tim seymour, whats wrong with walmart . So much wrong with walmart. Having said that, walmart has slowly changed their fortunes. They came in at 1. 2, street expected 1. 3. Retailers want to see inflation. Competition is so fierce, whether its kroger, amazon. These guys are fighting their peers for fewer sales dollars. Bottom line for walmart, this is a neutral stock thats fighting amazon, it needs to spend on sg a. And theyre spending like crazy. They bought jet for 3. 1 million. Who knows what goes on there . They were supposedly buying tech but you wont buy tech thats going to help you compete with amazon. Do you think its a little simplistic that as the economy gets better, we had the best weekly unemployment number in 43 years today, that people will trade up . We saw it with the dollar stores, to a walmart. Do you think theyll trade up to a target . Im still at walmart. Thats my own personal problem. Listen, walmart trades about 13, 14 more expensive than tart does. It doesnt deserve that valuation, in my opinion. The stock should be going lower. We talked about this last night. We said, look at the target quarter. Theyre running their business better. Its probably targetspecific. Youre probably going to see walmart tomorrow miss. And thats exactly what happened. If you try to play walmart for catchup to target, youre trading wrong. Target continues to go higher from here. Is it fair to say youre buying management . Lets be clear, these Companies Sell about 85 to 90 of the exact same goods. Youre buying the execution. I think the issue is if you chart that and chart amazon, tim was right, if theyre inversely correlated to each other. Dan, i agree with him on the jet acquisition, theyll be hemorrhaging cash, spending a boatload of cash. We dont know what thats going to be. Longer term it might be a great investment. Right now theyre making less money. Thats why the stock is going on down. Ahead, check out sales of salesforce. Com, jumping after hours. The ceo spoke with our own jim cramer moments ago. Meantime, here is what else is coming up on fast. Announcer with solarcity and tesla now one, elon musk has the power. Well tell you what it means for shares of tesla. Plus heres whats been happening to mega cap tech in the past week. Legendary investor Roger Mcnamee will reveal what stock gets more opportunity, when fast money returns. I got it, dad. Ow we love to keep them safe. So we made the Nest Protect Smoke and Carbon Monoxide alarm. It speaks up and can alert your phone if theres a problem. Or let you know if everything is just fine. Because, ya know, we worry. Is it a force of nature . Or a sales event . The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. bing incr. Think it wouldotection in a pwork, but it does. Dnt. Its called always discreet for bladder leaks, the super. Absorbent core turns liquid to gel. I know im wearing it but no one else will. Always discreet for bladder leaks. Enepeople want power. Hallenge. And power plants account for more than a third of energyrelated carbon emissions. The challenge is to capture the emissions before theyre released into the atmosphere. Exxonmobil is a leader in carbon capture. Our team is working to make this technology better, more affordable so it can reduce emissions around the world. Thats what were working on right now. Energy lives here. Sing girl, come on. [ singing ] sorry, ariana you gotta go. Seriously . Verizon limits me and i gotta get home. Youre gonna choose navigation over me . Maps get up here. Umm. That way. Girl you better get on tmobile why pay more for data limits . Introducing tmobile one, unlimited data for everyone. Get four lines just 35 a month. Welcome back to fast money, glad to have you with us. Another trump bump on wall street today, s p 500 closing within a fraction of its record. The russell 2000 Small Cap Index now in its longest winning streak since back in 2013, remember that year . Heres what else is coming up in the second half of the show. Legendary investor Roger Mcnamee gives us the one mega cap stock he would spend a million bucks on tomorrow. Shareholders voted to pass the tesla and solarcity deal. Well hear from the ceo himself. First, an earnings alert on salesforce. Com. That stock absolutely soaring after hours, following a big beat. Josh lipton is standing by in san fran with the details. Josh . Reporter brian, a beat and a raise, investors piling in. The ceo taking a victory lap. Take a listen to what he told analysts. You can see from our results we had an exceptional third quarter. Revenue rose to more than 2. 1 billion up from a year ago. You know already there is no other Top Ten Software Company Delivering that 27 . Reporter now, our own jim cramer has marc benioff as a guest on mad money. He asked benioff about the companys forecast. Last quarter we had that unexpected Foreign Exchange headwind, we talked about that, the fall of the Great British pound associated with brexit. Were passed that, were looking at a great year next year. Reporter salesforce saying it expects to deliver its first 10 billion year, putting it well on the path to reach 20 billion faster than any other Enterprise Software company. Josh, thank you very much. Catch that interview tonight on mad money, which kicks off with jim cramer at 6 00 p. M. Eastern time. Well get his comments on president elect donald trump, a wide ranging interview there. So the stock was down 11 from its prior all time highs. Listen, the billings number they gave on october 31st was disappointing. That put the stock in the penalty box. Then they got in this twitter bidding thing, whatever was going on in september. Myself and others were wondering why do they need to make such a large acquisition after they considered making a purchase or a higher bid for linkedin, that microsoft paid 26 billion for. All of a sudden they sign a bunch of big deals, he gives good guidance. Very surprised at the valuation to see it break towards those highs. You think the stock can get back to i would be surprised to see it do that, given the valuation. He talked about 26 sales growth. The comps were pretty easy this quarter, if you think about it. These guys still have an fx impact. The pound was down another 8 in that quarter. The billings for the Fourth Quarter remain i agree, the stock, after having been off the market, has got to get lets say on currencies. We talk about currencies with Consumer Products companies, you sell clorox around the world. Were Hearing Technology companies now talk about it. I think like anything, like the provides of oil dropping, whatever, guy adami, the fact that the euro dollar has moved, or is it the rapidity of the movement . Its been so rapid in currency terms. If youre a ceo at a tech company, your head must be spinning. The currency moves we see today usually takes place in a year, i see your point. All the numbers salesforce mentioned are right. But their operating margins, the street was looking for 11. 4 . We can talk about valuation all you want, yes, its an expensive stock, but this is a company thats operating better. I think it can push through. You just truouched on something. The currency is a bigger canary in the coal mine. The market is worried theres lack of organic growth. Theyre looking for these deals to make up for that. Market condition for big growth, they dont have it there, rather go oracle. Its valuation, growth is not working right now sorry, growth is not working over value. This is the ultimate growth stock thats not grown so fast. All right, guys. Well stay in tech land. Your next guest really a tech legend. Hes got one stock he says is a mustown in the posttrump world. Roger mcnamee joins us from San Francisco tonight, good to have you back on the show. What is the one stock that you think is a mustown . To be clear, i would be very reluctant to put new money into the market right now. I think uncertainty is incredibly high. If i had to put money into one stock, though, that would be amazon. I think amazon is the great democratizer of our economy right now. What they have done is make it possible to get any goods that you want anywhere in america, more or less within 24 or 48 hours. And now theyve done the same thing to the whole world of technology, software and games and other things through aws. So i do think that if youre going to own, put money into the market to buy tech stocks today, thats the first one you buy. Thats the only one ive bought since the election. Lets be clear, you obviously gave us your views macro, not a lot of new money should be put to work. Are you saying you would buy amazon if you were forced to buy a stock but wouldnt otherwise . Correct. And to be clear, to be clear, i actually did buy the stock when it was down at the end of last week. But my view here senior and this view lets put it this way. The world has changed dramatically. The market did not expect this outcome. Im not aware that anybody really expected this outcome. And it has increased uncertainty at a time when the market was already trying to absorb a lot of uncertainty. Your last segment was talking about how currencies have been flying around. Markets thrive on stability. They thrive on stable governments. They thrive on stable legal systems. And the u. S. Has always been the one place you could count on for really stable political systems and really stable laws, really stable conventions. And this year weve seen an awful lot of our political system, and now increasing our legal system, being made uncertain. And i dont know how thats going to turn out. It may not turn out to be a problem or it may turn out to be a disaster. I dont know which way its going to go. The uncertainty that you have today is not reflected in stock prices. Hey, roger, back to amazon for one sec, when you think about some of the rhetoric out of donald trump towards jeff bezos and amazon, he threatened the potential for some kind of antitrust thing, is that something that weighs on your mind . Yes, but not explicitly to amazon. My basic point is, if he can do it to amazon, he can do it to anyone. And that is not the american way. The u. S. Capital markets have always been based on the notion that we can disagree politically, in fact we can disagree really dramatically politically, but historically weve always put those things aside for the greater good after the elections are done. We have these orderly transitions. I think if trump continues to threaten the press, if he continues to threaten individual companies, that isnt just a companyspecific problem. Those are market problems. And, you know, i cant believe that he wants to cause the u. S. Capital markets to have a massive valuation decline based on that uncertainty. So its my hope that none of that comes to pass. You do think things will be radically different than what the market was anticipating a week ago, simply because with control of both houses of congress, we can expect the paul ryan agenda of big tax cuts and restructuring medicare to happen relatively quickly, and who knows what else will happen. Those are really, really big changes, with i expect unintended consequences. S p near record highs, bond Market Selling off, if this continues you understand my point. We were down 800 points the night before the election. The next day we opened up basically higher. Totally. Im with you all the way. Why . Beats me, my man. Ive been at this 34 years. That was not the outcome i was anticipating given the level of surprise. The markets ability to absorb this is yet another astonishing thing. But i dont think it protects us in the question. The question youre asking me is what are we supposed to do today. Im saying to you, hey, if you want to own stocks, own amazon. However, if the thing youre concerned about relative to amazon, if that comes to pass, that hurts every stock, not just amazon. Roger, real quick, i agree with you on the uncertainty, lets go bottom up. Whats the most exciting part of amazons business to you . Aws. Let me give you the bull case on aws. One thing people have missed is amazon has now built a cost advantage and actually a Service Advantage in software that today has been limited to third parties. Other Software Companies use amazon to host their services. The last time that happened was when microsoft created an operating system that every pc vendor went to. They then folded it into applications. I expect amazon to do the same thing, theyll eventually decide to start shipping email systems and word processors, and theyll run over microsoft and everybody else. The products theyre competing against are old. People are tired of the user interface, with the experience, theyre expensive to maintain. I think aws is the gift that will keep on giving for a long time. Roger mcnamee, we appreciate the candor, thank you very much for coming on, appreciate it. Strap in. Were locking down, samsung galaxies left in the car. Amazon has an option to buy 30 of this company, if you look at amazons growth trajectory, its interesting to see where amazon may be thinking. Would any of you buy amazon . So you said what are you so excited about, amazon tech services, its streaming movie and music company. When you look at it, i look at next earnings cycle. Weve seen jeff bezos be able to turn on the spigots when he wants to. So if youre worried about political headwinds which i think are overblown, watch february 2nd. Hes going to tweak it and the stock should rally a lot more aggressively than it has been as of late. I just want to make one point. What roger is talking about is what aws is broadening out. Theres a headline on the tape that theyre going to do an ai service base, aws ai, deep learning, all this sort of stuff. To me i think ultimately what happens with aws is it becomes such a behemoth, its going to be spun out of amazon. You talked about logistics and retail and distribution, theyll operate at very fine margins. The aws can grow to the sky. Its important to remember its still only 10 of their total sales right now. Right now. The trajectory for sales is very high. Lets take a look at shares of gap, the stock sinking after hours, falling into a gap. Well bring you the headlines from the companys conference call. Plus solarcity shareholders voting to pass the merger of the two companies. Phil lebeau is following the story. Reporter brian, well run down what tesla has now that has officially merged with solarcity. And more interesting are the comments elon musk had to say about whether or not the Trump Administration drops incentives for electric vehicles. What did he have to say . Well tell you when fast money returns. Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. [ thats a good thing, eligible for medicare . But it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by Unitedhealthcare Insurance Company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by Unitedhealthcare Insurance Company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. Were changing our attitude. We have been changed our Business Model for the last 60 years, and weve been successful doing that. Now customers and consumers in general want more control over their lives. For those that want table service, thats a great option. Frankly each time we convert a restaurant in the u. S. , business picks up, customers come back more often. That was mcdonalds ceo speaking to cnbc earlier today about their plan to upgrade that you are restaurants with selforder kiosks and table service. Theyre calling it the experience of the future. But steve grasso, should we experience the stock by buying it . Its been an underperformer. If you look at different names in the group, its trailed those names. Dominos is up 45 . Mcdonalds revamped their menu, made that streamline process going through the drive through that killed a lot of the skus. They trimmed their menu down dramatically. Theyre trying new initiatives. Thats what got them as an outperformer years back. Theyre doing fresh never frozen, reinventing their flagship brand. Theyve got a lot of stuff theyre working on and im positive on it. It will either win big or theyll be stuck where they are now. I think the risk is to the upside. I still long the stock, not the same size i was, but from a valuation perspective i think its relative to the peer group, it makes a lot of sense. Very discounted to everybody. And i think the initiatives that steve is talking about, we did that whole thing with the kiosks, its a very different experience. Look at chipotles fate. These guys are ships crossing in the night. I got a gouda burger in one of those kiosks. Was it gouda . See what he did . That joke was cheesy. You know whats interesting, this is their third executive sales decline. They topped out at 28 billion three or four years ago. Theyre expected to have, what, 24. Its going to go down 7 . Theres stuff still not working there for whatever reason. I think it does come back, you can put as much ipads and breakfast all day, the product is still pretty crappy for the most part. Where weve seen gains, why is dominos up 45 . They upgraded their product dramatically. That to me, that statement is a lot like the elections. There are a lot of people who dont feel that. And you have no idea. A lot of people walk into mcdonalds every day for breakfast, lunch, and dinner. Theres a huge debate there. I dont own an mcdonalds. You have to go someplace in the space. Why do you go . Yum spun out yum china, yum china is slightly down from the spinoff price. Dominos is up 45 . On a relative basis, where do you go . Another good investing lesson. When breakfast all day came out, people came on and said buy the stock, because breakfast all day. Now what happened to breakfast all day a year later . What have you done for me lately . It brought in the customer base, though, that continues to pay off for these guys. It is what it is, its not a growth stock. Its value in a sector in which there are a lot of overpriced stocks. A crappy product. Tesla and solarcitys merger, phil lebeau is in chicago with more. Reporter its a done deal, shareholders voted today and 85 of shareholders who voted approved the deal. Here is what happens now. Solarcity shareholders will get. 11 shares of tesla for each share of solarcity. The approximate value, 2. 5 billion. Tesla will begin integrating solarcity almost immediately. Theyre already moving down that path. It was just a few weeks ago, elon musk held the event where he announced the new solar roof product theyll be manufacturing and start selling, all part of the triple play. Youve got the solar roof, the Home Energy Storage unit manufactured by tesla, then the electric vehicles by tesla. By the way, tesla expects solarcity to generate an additional 500 million over the next three years. During the shareholder meeting, and right afterwards, there was a webcast. People were expecting perhaps elon musk to make a comment or two regarding president donald trump. Remember, we havent really heard from him since the election last week. He did not comment on the trump presidency. But there has been speculation about whether or not under president trump, there would be the removal or the reduction of federal tax credits for those who buy electric vehicles. Elon musk was asked about what impact lowering incentives might have on tesla. Here is what he said. If all subsidies were removed, teslas position would increase, not decrease. This is a really fundamental misunderstanding. We believe there should be incentives, government incentives for electric vehicles. We believe they should be there for the good of the industry. Reporter he went on to talk about the fact that, look, you need more people in the industry to build electric vehicles if youre going to have that mass adoption which he believes is critical to the growth of electric vehicles overall. Take a look at shares of tesla and solarcity, theyve moved in tandem since august 1st when they initially reached that agreement. It is now a done deal, 85 of the shareholders approving the merger of tesla and solarcity. Hey, phil, this is van. So this week we saw jaguar introduce this concept car thats likely to compete with this model 3 when they eventually both come out in 2018. Do you think this solarcity is a way to diversify away from cars . Theyll have so much competition. We know the execution is spotty for their ability to deliver 500,000 cars in a year. Reporter elon musk believes if you create an ecosystem of a Sustainable Energy company where you can say to people, you come into our tesla stores, not only are you looking at our vehicles, oh, by the way, we have these Energy Storage units, the power wall, and in addition, at some point youre going to need a new roof on your house, why dont you go with one of our solar roofs . It is in the eyes of many people an effective and powerful marketing and product approach. Now, there are others who sit there and say, look, solar is hurting right now, not just solarcity, but you look at what happened with first solar and that industry and its hurting right now. Theres more than a few skeptics out there. With regard to the electric vehicles you were talking about in jaguar and its introduction in las vegas, a lot of those are low volume, not what i would call a competitor to tesla at this point. Phil lebeau, thank you very much. Stephen hawking said we only have a thousand years left on earth so the long term future for solarcity is dim, about what about the near term . Would you buy the company . No. The chart lines up terrible for me. If anything, the Competitive Landscape for this company is getting worse and worse. The headline risk, the cash burn. You know, theres a lot of pressure on solar. This is not the same sector that it was pretrump. Will we be able to understand the combined income statement and Balance Sheet . No. But isnt that what hes trying to do . Its financial slight of hand. A lot of people have tried to short the stock with a modicum of success. If they cant bury the stock now, they wont be able to. I would take a shot on the longs. There you go. Coming up, gap shares down nearly 5 after hours. Well bring you the headlines weighing on the stock. And later on, the one tech company that might surge under a donald trump j. Trump partly sunny. Youre watching fast money on cnbc, first in business worldwide. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive this car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Welcome back to fast money, im courtney reagan. Gap sales continue to fall. Gap telegraphs the results each month. The Earnings Call wrapped up here tonight. The ceo says he continues to be plead with the progress of the transformation which he classifies as significant and rapid but also acknowledges that significant work still remains. He says gap has to win on product. And right now he says hes feeling pretty good about it, particularly the quality that the company is bringing back into the merchandise at gap and banana republic. He added that, quote, were in the best place weve ever been. Interesting thoughts there. While theres still no permanent hold on old navy, he says as much as i was bullish on old navy before, im even more bullish today. You could definitely classify him as hopeful. He says gap is increasing its marketing spend to capture lax customers and attract new ones. It will be hard to tell how quickly it will work. Part of that marketing is returning to television in a bigger way beginning this holiday season, brian. Wow, returning to tv. Courtney reagan, thanks very much. Gap made a 52week high today, basically the same high it made back in may. The stock has gone from 22 to 32, effectively in a Straight Line. This quarter was not good enough to continue that streak. It trades down 26. 77 , again, this company has transformed itself. Take the money and run. Shifting gears to pandora, the music company, a longrumored takeover target. One trader is betting billions it could happen in the next year. Dan is here to break it down. With all this atalk about cash being repatriated, companies could put that money to work in 2017. Most of the volume came in one bullish trade. Let me just break it down real quickly. Essentially what traders sold, thats all the way down there. 26 bucks, down 26 . Thats the worst case scenario, they bought 24,000 of the 15 or excuse me, the 12 15 call spread, they could make up to 3 between 12 and 15 on january expiration. That trade cost the trader nothing. Thats the set up a long window to put the stock way down there and have near the money participation in the event the stock moves back to these prior highs. All right. For more options action, check out the full show that is tomorrow night, 5 30 p. M. Eastern time. Still ahead, the one beatendown consumer name that tim seymour says is about to surge. That stock is coming up. Nice. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. 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Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long™. Final trade, time for her the special guest on set, tim seymour. Clorox now makes sense. Mcdonalds. New initiatives usually leads to higher prices. Target. Dan nathans daughter, cant be from dan, must be from his wife. Dan nathan with his daughter alex, the final trade . Umm, buy paypal. Paypal there you go. All right. Snapchat for facebook . Snapchat. Snapchat for instagram . Snapchat or instagram . Snapchat. Im brian sullivan. Mad money starts right now. My mission is simple, to make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere, and i promise to help you find it. Mad money starts now. Hey, im cramer. Welcome to mad money. Welcome to cramerica. Other people want to make friends. Im just trying to make you some money. My job is not just to entertain but to teach, put it in perspective, educate. So call me at 1800743cnbc or tweet me jimcramer. Is the equity asset class itself making a comeback . Are people reentering the stock market after