Transcripts For CNBC Fast Money 20170404

Teams love them. Advertisers may be running in a different direction. Well explain. First you start off with a developing story, for more mixed signals from the white house about the plan to fund the tax cut the administration promise ltd. Ermon. Reporter earlier in the afternoon, among the things the white house was considering, a vat tax. Value added tax and a carbon tax among republicans and conservatives up on capitol hill. We offered the white house the opportunity to knock down that reporting, say that wasnt so. They did not do that. They said everything was under consideration. Its early in the process, they werent ruling anything in or out. Theyre considering those ideas. That was the line earlier in the day, within the past hour, though, we got a new statement from the white house, they apparently are willing to knock down the 80 of the vat tax any time soon. As we have said many times, the president s team is hearing input from experts on all sides of the tax debate as we formulate what will ultimately be the president s plan to enact. Heres the important part of the statement, the first significant tax reform since 1986. As of now, neither a carbon tax nor a vat are under consideration they are saying for the moment neither of those deals is under consideration here at the white house, when we broke that piece of information on the air, kelly evans was talking to the house ways and means committee, she asked him, his reaction to that heres what he said. I think at the end of the day, look, i dont want to speak for this president. But hes repeatedly said he wants to equalize taxes between made in america products and imported products coming in. They think its with modifications can achieve that. So kevin brady there, apparently thinking this is a good thing for his border adjustment tax. Somehow, melissa, they need to raise some revenue here. They want to cut taxes drakally t. Idea is theyve got to have some kind of mechanism to generate revenue t. Border adjustment does that, the vat would have done that the carbon emix taxes would have done that. Somewhere in there they need some way to raise revenue, its not clear where they will land. Especially if its about revenue neutrality. Its almost so confusing to hear that a vat tax is on the table than is off the table. It almost gets to the notion that nobody knows where anybody really stands. Welt, theres a couple possibilities, one is this was a trial balloon, which sometimes happens in washington. It got very quickly shot down. The other is this was sending us a coded message up on xi, they dont like that carbon tax, they were not with the president , necessarily, on the obama repeople and replace. This could have been a message to them, politically, saying, hey if you wont be with us, maybe we need to build a coalition here in washington. Theres other ways to do it tan talking to conservatives. That could have been a part of the mix as well. No real guidance from the white house, though, they say simply as of now. Well the administrations border tax plans would impact the most retailers which look as if they are facing an apocalypse. They would cut jobs. Check out the carnage, j. C. Wen wenwhe pennies down, all this when amazon is on a tear, hitting a record high for the tenth time this year. So this the end of retheyll as we know it . Grasso, what do you think . I think you have major headwinds, you have a secular shift going online versus brick and mortar. You also have the vat tax, and now the carbon tax story, so to your point, it is very confusing, but you need to push off the cable vat, vat, and the carbon for all these stocks to run again. I think you need to clear the air. If vat tax is there. These retail names will never run. If its on the table, they are screened across the board. Do they have a shot . If they fight the additional changes, they have no additional sector. They have a shot. Some have a show. Actually, i look at certain names, for example, i own nordstroms. I like them because of the fact they jumped on ecommerce very early, its projected to be 27 by 2021. There is all kind of news out there. I like the fact that at least they are in there competing with. We know who the big monster is, amazon. We had another raise of their price target. Every day it seems like somebody jumps on that price regions. The money they are putting in to grow, its unbelievable. Its a very, very difficult hill to climb for those being behind, not staying up with the world. What do you do with the fact this is not a department store. Competition, so in department stores, theres too much competition. In walmart and target and costco, there is too much competition, especially in the discount stores, those guys are destroying dollar is general. So when it gets back to really whats going on for a lot of these companies, i think there is too much competition and there is too much Storage Space chasing not enough consumer demand t. Opposite is whats going on in Home Improvement. In home depot and loe lowes, the correlation to Home Improvement stores and the fact that there is not a lot opening up, thats where you want to stay. Take a breath. All right. You be quiet. Consumer demand, which i think is a get away from the secular trends, think about whats going on in apparel. Look at ath leisure, now its going back, lulu, big disaster, new lows today, for two months, the under armour has not been able to get out of its way, we see a lot of stuff out there. That has very little to do with amazon, they produce products theyre supposed to buy if they like them or they have something to spend. Retailers, you would invest, you nike nordstroms, how about you . The stock actss well, i like best buy, due to sears having so much trouble to the department stores, as tim said, there are too Many Department store, appliances are more like a Consumer Electronics store. Theyve thrown out best buy. I think you will see in the next couple of months, people reaching. Thats a concern. Now to come back around. Eastern only sand backed off with competing with best buy on a number of different issues, when you look at best buy headtohead with amazon. I think sears is the direct issue. People sister to go and buy an appliance. I think they buy it from best buy. Its a consumer electronic spot now. You have the phones. Best buy to me is kind of like gm. Its very cheap still. Unlike gm. Its had a huge run, getting it near the top of a peak. If anyone deserves a boertd adjustment, its these guys. Border adjustment tax. Thats what i said at the opening of the snow, that happens, all of these retailers. Its amazing how well theyve competed against the onlysons in the world. This is a name when they said they are dead, they have come back to life. How can they have borders . Exactly right. Its why in this environment we are in right now, you look to the management. If they like it. They can execute. They can compete in this world we are in. Which is online, its less foot traffic. More a online, all the competition. The xrts have been pretty consistent for most of this year. This is the worst chart on the planet. Its a massive head and shoulders stock. 40 is that nextline, when you look at all the components and how poorly they act. Im naming another one, costco had a disappointing report a month ago. It stayed down, this thing, when it breaks 40 costco shares what im talking about is you have a stop. They had all time highs. They had a big gap on big volume. It stayed down, that gap, its pretty disappointing, though. As the retail wages on, are there bright spots left in this space, does rich ross, its a regular brandnew frisked out plasma. Three names he says are still worth a buy. Reporter hi, we know the issues with retail is long and distinguished. But were going to give you a few price spots, a couple ways to play a more abundant space. You see the benchmarks, etm. We take the elevator up and the escalator down, up 15, down 15. We havent been above the 50day moving average since late last year. So thats an issue, but we go from Something Borrowed on the short side to something blue. Tiffanys, now, this was supposed to be one of the big losers in terms of the trump trade, for those that done dont live in manhattan, it shares an entrance with trump tower where melania lives. Nobody was going to shop in different mys. They are doing a lot of buying, its up 20 yeartodate. Up 70 from the lows and then it would be nice if we went right to lowes, but were not. Were going to best buy. Thats where we got this great new smartboard. We got the stock as a sale fundamentally at my firm. You cant quibble with the chart for the time being. Yes, you are into resistance, that big round number at 50. You have a well defined trading range, clearly on a break above this range, it would set the stage t. Chart on a break above resistance becomes a buy. Finally, heres that lowes, you can see a textbook setup from the long side. We know home has been where the chart is this year. Can you see really this textbook island reversal, importantly, we get that gop up and boom. You see that big base of support. You should break out to the upside. Provides measured upside target of 91 on lowes. Is there is a couple names you can mix it up with, admittedly, very challenging retail landscape. I think you did a find fine job. Ewanted fancier graphics. They have to kind of stay with the fancy new board. Rich ross, come on over. Hes going to bring in the chair, its flawless, like you had one in your living room you have been practicing for days. Would you say the xrt chart is the worst chart in the whole world . Thats a stretch. Even though we have the s p, record high, markets around the world pushing out to fresh new highs. To your point, you mentioned that multiyear head and shoulders that formed ominously over the xrt. Keep in mind, this is against the backdrop, 0 interest. Free money. Clearly, we seen amazon a big part of that. To your point, below a multiyear topic, against that bullish backdrop. Rich, its a pushback on your best buy. I can think of why multipal expansion, product upgrade sierk i cycles. Virtual reality. There is a lot of wind at the back of best pie, especially if they dont have a back tax org nieced with republicans. Organized with republicans. To me it looks double copy. It doesnt look like resistance, it looks like double copy if i had to gauge it on a technical. Its very binary. With you, i think you give 80 riskreward ratio. It seems 5050. In this type of market, i have been giving the trendss the benefit of the doubt. Im a trend follower, not a fighter. If you had a reason fundamentally to be a fighter, this well defined area of resistance, this double top you say is an area at which i would be a fighter if i did not like this story on this stock. Thank you, rich rocks evercore. Fine job, a lot of colors and the hours, unbelievable. Coming up, nvidia, is this your best chance to buy the one pipeline stock or is it a no touch . Plus, google and amazon are lit for those over the age of 40. That means cool by a new report by google. While teams are searching, advertisers are having second thoughts. Well explain. President trump is gearing up for the president of china this week, what will be on the table and will trump come out on top . We got the details. Much more fast money still ahead. That stopandpop what do you think . My tradeoff analytics indicate no one creates more space on offense. This allows him to nail a jumper from a densely populated urban area. What youre trying to say is. From way downtown . I am still learning. I can see that. Predictable. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. Welcome back. Airline stocks taking a hit, check out the axl. The culprit, American Airlines down more than 12 . Spirit down 11 . Jet blue down 8 , delta down 8 . With an improving xi and low gas prices, where is airline nirvana, tim . Well, its gone the way many of grunge music fan, nobody cares anymore. I think its the capacity the efficiency of the airlines. Its not about oil price, cheap oil prices dont make high Airline Stocks or multiples. Teets are companies that have increased their earnings power dramatically over the last couple years. You see the trend and the multiple expansions have come when they have shown capacity discipline. What we seen year over year for capacity in the first quarter, thats measured by passenger revenue. We talk about it. You probably dont care. It matters, these numbers have been coming through poorly for delta and united and american. You have been in the airlines a long time . Absolutely. I got the pullback, unfortunately, there was a huge call buying in there. You are always waiting for the opportunity on a pullback. It took off nicely, it was much higher, dropped about 8 or 10 . The opportunity is there once again for readdressing the 50 level. You think things are Getting Better for delta . I think its been overplayed, the idea that the capacity issues. I think thats overplayed. We all know they expanded them somewhat. Given the fall we have seen, the money they are making the cash. Every quarter. So the airlines are great. Theyre not being rewarded. You have one thats kept its head above the water. Sells sixandahalf percent yeartodate. The chart looks like its rolling over to me, delta and spirit, those charts are very similar, so if you are banking on a recovery, you might want to play it for delta and spirit, if you are basking on the one thats able to keep it going southwest. Sticking with oil crude, its at a onemonth high, dan is taking a look at one name in particular. Dan will make his way over. Its real early. Are you nervous . We all get tesoro. You know what that translates in spanish . Dont touch me. Its down 6. 5 on the year. There was a massive trade for me, massive relative to this open interest when it was trading at 80. 15, there was a lot on the may puts to open. That trade is seven times average daily volume. This thing breaks even with 76, 80, thats down 5 . Protection, maybe an outright bearish bet the company is expected to report q1 earnings in may. This is a protection on an event like that. We are talking xrt. This would be the neckline here, one of the reasons i think that choice of strikes in sma interesting. It appears to be a technical level. Look at that uptrend the stock has been below it. Its at a critical spot here. So at the end of the day, these are fat options, paying 1. 5 of a put that expires in a monthandahalf or so. You have a scenario that is an identifiable event. Crude is volatile. To me, a tough way to chase it. I think that worth noting, this is a big trade in a stock that doesnt see a whole heck of a lot of options. Does this feel more, eto, because of the chart you got up there, more protective in nature, because of the fact as you lay that chart down there, it looks like its sitting where its able to bounce many, many times before. Or do you think its direction am . Listen, pete, i know you track this well, its impossible to know what a traders intent, to me what struck out is that this trade is about 10 of the open interests in the stocks, so i suspect it is protective in nature. That being said, you know this being long premium. Those sorts of fat premiums, if you protect a long stock position, that can be a big drag on performance, the stock does nothing unless you hold on it to between now and may expiration, so to me, maybe its something getting real bearish. They also did a fine job. Friday 5 30 p. M. Eastern time. Still ahead jamie diamomon. We will hear what he has to say, first in Business World wide, in the meantime, heres what else is coming up on fast. Everyone like me and thinks im great in my safe space. In my safe space. It turns out, liberal College Students arent the only one, advertisers like them, too. It could pry boost, well explain. Plus, heres what President Trump told top ceos today. We are absolutely destroying these horrible regulations that have been placed on your heads. How long will investors wait, from the talk to become action . Well have a report when fast action turns. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade thats why a cutting edgeworld. University counts on centurylink to keep their global campus connected. And why a Pro Football Team chose us to deliver fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. Various shouting heigh ho its off to work we go woman on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. And each job created by the Energy Industry supports two others in the community. Altogether, the industry supports over 9 million jobs nationwide. These are jobs that natural gas is helping make happen, all while reducing americas emissions. Energy lives here. Welcome back to fast money. Shares of nvidia sifrging 7 after getting an underrated rating. The demand is about to go from bad to worse. Specifically talking desktop gpus. Ut been a volatile run, stock is down 5 after seeing a gain for more than 200 in 2016. So should investors stay clear or buy this dip, dan . I dont think there is any reason to buy, you have a big gap down for fundamental am reasons that have previously not been identified. I think before when this stock has been downgraded, its been on valuation. So i think you probably see this thing. It just broke that 100 day moving average. Another pont i saw, which is a fundamentalal headline, you saw the news that apple is going to be creating their own gpus for Desktop Computers and devices to be named. So at the end of the day, there will be competition in this sector. Look at the gains they have had for a lot of the same reasons that nvidia had such a tear. To me i dont think you touch it here, maybe 80 bucks. Would you rather . Nvidia or md . Right now, i say md. That stock made a huge move, 7 to 14. 5 . That range. One of the things the analysts talked about is the margin crashers as well. I think they are stealing some. To your point, some of these companies are going within as well. I think the most interesting part of this whole thing was the skyworks and the upgrade of serious logic within that same analysts call. They were aggressive with those calls. You look at the price targets, i tell you what, i think people are expecting another great quarter from apple. Still ahead, dame dimjamie ds he loves america but something is wrong with it. Find out what it is when fast money returns. Welcome back to fast money. We are live at the nasdaq markets t. Stocks ending in the green, snapped the twoday winning streak t. Nasdaq closing out a record high, a new study shows that google and youtube yub are among the coolest brands for team, among the mounting ads is a wrench in popularity, well explain, later pete is bringing the heat to pitch the one stock surge, can he convince the other traders to buy . But first, we start out with news alert in d. C. Ahead of trumps new meeting. Hi, kayla. Reporter hi, melissa. That meeting will start thursday afternoon when the president arrives at his marar lago estate. Senior white house officials sa i the meeting is taking place at President Trumps invitation, they chose mara lago because it didnt have the formality for these leaders to get to know each other. They say the most urgent for the leaders is diffuseing tension. The Officials Say the situation has become urgent and that the clock had run out for dealing with north korea and all options would be on the table. The president is expected to ask china to wheel its significant leverage and remember china is literally responsible for the entirety of the external trades. Though hope they will wield that leverage to get north korea to the negotiating table or to otherwise stand down from some of its Nuclear Posturing up to this point. What we are interested in, at this deck, mellissa, is Economic Issues and whether the president plans to bring up currency manipulation, which he talked about on the campaign trail or tariff or potentially other trade issues that hes talked about as well, senior white house officials said currency manipulation for now will be left to treasury and though while it might be discussed. The real economic purpose will be to establish a framework and set an agenda for dealing with those specific issues with white house and chinese counterparts in the weeks and months to come. They said, dont expect a resolution on those issues this week. They said some parts between the u. S. And china are working well, but they declined to say, melissa, what those were. Thank you, kayla in washington. Headline, a senior white house official saying this meeting between the chinese president and President Trump is going to be a test here. Tim, is it a test for investors . I dont think so. I think we really . I think the headlines, if you reacted otoheadlines on china, you reacted to the wrong side of trade. You saw the headline, we will break the one china policy, we will break the war et cetera, et cetera, china is one of the best performing markets in the world, its a test. Both sides are testing each other. The chinese to their credit. A little bit more diplomatically conservative and havent reacted in a way maybe they could. I think the relationship with north korea and carolina is a complicated one. I dont think china is happy, i think there the a lot of tension, there is an economic zone, so i dont think the railroad is happening. I think its bullish. I think the fact that we all know to tims point, we all know what hes going to talk about. We know he will talk about currency manipulation, maybe he wont talk about it. We know what those billboard things will be talking about. It will be currency manipulation. Trade. It will be trade. Those are all telegraphed. I think the markets are sitting on our hands waiting for this. Its probably a buying opportunity. Hes not gap proof. I think everyone knows that. At 3 00 in the morning. Its about what a strong dollar means for our economy. What can you say . With im saying is i think all the bluster on twitter, its likely to be a disappointment. Guys. By the way, he was tweeting this aggressive stuff, to china. What does that mean . Is it better than expected . Nothing comes out of snit. Nothing comes out of it. Okay. Its not a negative. I think thats the important thing. Well, it could be. Sometimes a nonnegative ends up being a positive. Exactly. Whats i think the worst thing for the Global Economy is trade wars. You we heard the bark, i dont think you get the bite. The things that have been moving the market. They have been cutting back capacity on industrial metals, where they have been dumping steel. First of all the rest of the world is very united with the United States on this one, too, dumping steel around the world, you got every Steel Company in the world and every national Steel Company in the world happy about this. The issue is not korea. By the way, whats wrong with asking these guys to get some accountability out of north korea . This is great. China has been put in this position. They asked to be put in this position. How they designed that, ultimatums arent going to work, stressing, we got to get answer, north korea is threatening by the day. Is the road to the upside anything looking at china with a nonnegative that basically i think we all agree . The answer is yes, a lot of xi is chinese banks, theyre really inexpensive. As the economy grows, its good for chinese banks, yes, you can own ali baba and the ten cent. Go back to trump a second . Go back to florida. Go back to trump. Dont you think its curious he has been lobbying for Trump International trademark in china and gets it in early february, all of a sudden he goes back. Cmo cmon. For eight years i never we heard you bring politics into a trade. You thought the market was going to zero you are always bearish. I write about 2,000 word a day on this reversal. 20 second sound bytes here. Ive never. They do. But ive never we heard you bring politics into the trade. Im going to tell you something. I think we talk about this every day. Its called the trump trade t. Market is where it is. Where is health care . He hijacked 18 of the economy, at the end of the year, with absolutely no support, no bipartisan support. I didnt hear you get outraged. I didnt hear anything from you. Obama came and went. You dont get out of a coal plant. I will put you out of business, i didnt hear you talk about anything. Thats my only point, that i never we heard you this politically charged. I think its a real problem. I think we have a situation here, where the economy was going in a certain direction already. Above 3 gdp back to herbert hoover, where is the economy going . Its the lack luster economy ever. Its not obamas fault. Hang on a second. But you are blaming it on trump, hes been in office for 100 days. So how is it his fault . I think he could quite possibly. Live by the sword, die by the sword. Where is the gdp growth . Now . Where was it the last eight years . Where was it . Where was it anywhere in the world . Tim this is the first president since the depression to not print above 50 gdp. Thats a republican. So now what im say to go you is when you look at the next four years is this going to be trump or a global dpe phenomenon. You want to use ideology when it serves your purpose. Who do you guys like . Guys. A combination. I think you guys are on the same page in that you think that trump, whether you like him or dont like him, is an influence in this market whether or not you like it or dont like him, you have talk about him in the context of stockmarket. The trump trade, hes a drifter, a phony, a fake. Its a 10 rally. On proposed legislative agenda its crumbling around him, the market hasnt caved. Thats my point is that somehow we are missing something that the market is either either trading off rotation or something else. I think the reality of the whole thing is you have to think of what is the trade on all of this. You got to sometimes put the politics aside and figure out what is the trade the trade if you want to call at this time trump trade that is reactive to what irve think it is, you cant fight i. We we heard it from rich ross. If the trend is your friend. You got to stick with the trend when you got it. Let me tell you something, everybody was wrong on november 8th and 9th. It kept going. Im saying there is major fissures if they dont get fiscal stimulus. Every president had the same thing. Last word and we got to go. Well, my last word is i think were in an environment, no matter what happens the pendulum swung too far the other way, yes, i agree, coming back. We have a different sheriff in town, whether he gets anything done. Media stocks, giving highs as they turn to a traditional medium as a safe place. Plus a pit boss calling the screaming by. Can they convince the other traders to get on board . He has his fast pitch with money next. Predictable. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. Welcome back to fast money. More and more advertisers are turning to Traditional Media Companies as a safe space for their content, the move comes as growing millenials are fond of their safe spaces flock to online spaces. Julia. Reporter hey, melissa, a high tag Ad Television front and center in this ad sales period. Cable network, the food network, discovery has started to pitch their lineups, showcasing their digital reach and measurement capabilities. Nbc universal is across broadcast digital and cable. While cbs total ratings move dvr and video on demand viewing. In the wake of advertisers boycotting google, the proximity to event, offensive content on youtube, its expected to have its appeal. Anything there will be front shift. I think a lot of the advertisers moved dollars into digital. Now theyre recognizing they need to go back to where they can actually control where their message is placed. Google says many advertisers never last while others have decided to come back. Google says its committed to Getting Better and better. They show among generation z youtube is the top coolest brand, google in third place. The changes its made to address concerns and impact spending and up front ad selling period, which is coming up. One more piece of ad news just in, fox news is weighing in on the sudden advertisers boycotting the Oreilly Factor in light of special harassment allegations against host bill oreilly. Fox news saying we value our partners and are working with them to address their current concerns about the Oreilly Factor. At this time the ad buys of those clients have been reexpressed into other fnc programs. That means there has been no Financial Impact on fox just yet. We have to see how this plays out. Julia, thank you, in l. A. A lot of moving parts here in the advertising landscape as a google shareholder, though, are you concerned about ad dollars moving away because they cant protect the content . No, i think ultimately google is positioned up the middle. Gen z says youtube is where they want to be . Where do we go from there . Aaa . I dont know. When it comes to digital ads, there is only one other company probably that doesnt wish they were aware google is in its facebook otherwise im not too worried about it. I dont think there is a problem, google has had the world in the palm of its hand for quite some time they have that cool factor. The third party addressed this immediately. Google always does, they jumped on this story line to try to stop it, which was an incredible move. Lets remember. Youtube, its still a search company, that was youtube and google, itself, differ and really the same. Jamie dimon telling Yahoo Finance there is something wrong in america. What exactly is the problem . Baseball just got under way, witch the pun bank stock surging this year. He will deliver his fast pitch. You are watching cnbc, first in Business World news world wide. , and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. We have a market flash on panera. We have more on the stock surge in the after hours. Hey there, the stock is surging by 13 in the after hours. This is on multiple reports jap holdings is in talks to acquire panera bread, this after bloomberg interested they were interested in a sale. They are moving ahead on multiple reports it is in advance talks to require a spread. Thanks a lot. J. B. Holdings are experienced in this particular space. What do you think . Take your money and run . Its very hard not to say take your money and run, you have that push towards a healthier more Health Conscience consumer. You see mcdonalds, panera, i think id lose it. 20 is based on this runup. You have a 20 premium and a valuation north of 35. Relative to the peer group, i dont know whats left. There is obviously strategic values, it can be creative. But as a shareholder here i would be very happy and adamant. If are you a shareholder, should you be happy theyre not the ones on the other side of a potential deal . That was here. Yes, im happy with starbucks growing organically, theyve mad acquisitions in the Consumer Product channel. I think they can improve their food, frankly. I think the valuation for this company is something that would not be positive for starbucks shareholders. J. P. Morgan shareholder speaking at a Yahoo Finance town hall, that got pete thinking. Thats right, folks, it is time for the fact. He was thinking. He is always thinking. So this fast pitch is where we have traders pitch a stock they think is a final. When theyre done, traders whether they are buying or selling this pimp. So, pete, you are up. What is the one bank you are buying . Well, jp morgan, last quarter, year over year, they had growth over every single category. Going forward what s does it look like right now . You start with analyzing whos the best man right now in all of the financial stocks . Who is the best Management Team . Jamie dimon and j. P. Morgan, bar none. He did it with his on stock. Fundamentally the company itself in the last five years, they have bought back 25. 7 billion in shares in this company. He loves buying it when it got underneath a tangible book. Hes talked about the idea hed go up and buy to two times tangible book. They will continue to buy back some of their shares. You look towards the next quarter and this year, are you looking at growth, growth, growth. Across categories, that itself another thing you got to like. If there is any regulation going forward, that will be a huge benefit. He talked about today 2 trillion its costing right now for the banks themselves. Unbelievable amount of money theyre having to spend right now in the regulatory side of the banking industry. Any of that comes back, thats money for the banks, themselves. Anybody have a question for pete . Pete, are you worried at all about the percolating credit issues . How does this affect the bank when none of this is price tag . Right. I think that is a concern. There are other doing far better, though wednesday, you balance it out, they will probably be weaker. I am sure of. That you be i think there are other categories that will be that much better. Thats why i expect them to have a very good first quarter. You have a question for pete . Pete, you said he likes buying it below as well, well, well, well above both value one. Above book value now t. Reality is its above book value. Its not a two times. He talked about the idea of not only bike it under the book but going to two times book hed still be a buyer of his own stock. I like the strategy. This is not financial engineering. They find their stock to be one of the best places to put their money. Its worked very well. Is this the only stock you want . I have the xlf. I rolled out of citi. Im in j. P. Morgan, im in the calls, i expect the earnings to be strong. So these calls will expire at the end of april. Time to vote. I think you buy but you wait. I think you get a better entry level in the stock. You see any similarity . Do you think you get a best in breed valuation on j. P. Morgue season. I think pete is right to be there. It does look like lululemon. No, thats who it is, its lemon. So i think city is another bank to buy. Pete did an excellent job j. P. Morgan. I think youd sell it here. For the reasons i dont think you will get meaningful tax reform to the points that people are excited about back in the day. So to me this one with Interest Rates and the curve, i think its going. Sam. I guess the tie breaker goes to super bank j. P. Morgan, im a buyer. J. P. Morgan like a superman logo on his chest . Exactly. A better drawing than steves. Mine is better, but yes. The point is win look at it on the charts, my whole thing is its not about deregulation, its taking the targets off their back and profitability. Good job, pete. Up next, retail getting crushed with tim. One retailer he says is a dimon in the rough. We got the game, well be right back. Back to the final trade, pete. Jp on giddy upits going high. I like the potential deal stocks time warner. Xrt selling on rallies. Tim. That is very quiet now. Tiffanys, i think this is a retail name that can be decisionary going higher, keep the costs down. Tiffany. Theyre exhausted with you, too. Im melissa lee, thanks for watching. More fast money. Meantime, dont go anywhere, mad mon with tomorrow here at 5 00 for more fast money. Mad money with jim cramer starts 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. Some want to make friends, i just want to help you make money. Call me at 1800741cnbc, tweet me cramer. Valuation is in the