Remember all the talk about airbnb hitting hotels stocks theyre all at 52week highs well explain why this might be the undisruptable space. First, another record for the dow. It was by the classic american stock hitting new highs, boeing up 67 caterpillar 38 . Walmart up 24 , just dollars away from a fresh record how much further can these dow darlings run do you keep buying these classic american stocks even at record highs . Pete what do you think . I think some of these names, absolutely if theyve got the growth or if theyve got something within the Balance Sheet that makes sense to me. I was given flack about this one, it will continue to go up, boeing when you look at this name, we talk about the banks all the time, its a price versus book, right . Were always looking at these various ways of looking at things its not necessarily the pe value. With boeing you have to look at the operating cash flow. If you look at that for bowing, youre looking at a company thats 18 times, compare that to their peers. Its actually still inexpensive. Because of that, 23 pe feels a little bit steep but there are names out there that have the growth, that can support the fact that theyll continue to go to the upside i agree, from a cash flow perspective, they have a lot of levers they can pull to derive cash flow. Mcdonalds has been consistent this is a name i got wrong several months back. Now i look at it and say, theyve got the ability to get their samestore sales gains and be consistently beat the stock will continue to work. Obviously youve got to spend a lot of time on Procter Gamble yesterday, trading 22 times for mid to high single digit growth seems a little expensive. The dollar is not particularly blasting higher. I dont know if you guys saw clorox was up 2. 5 investors dont seem to be particularly bothered by rich pe multiples at this point. Thats a stock thats surprising im just saying, you posed the question, im just saying and you have an activist there. Theres something to be said for that, in terms of maybe being a put to the stock the market is at an alltime high all these things are at all time highs. If you look at what the market is rewarding, every one of those companies has a Management Team that is engineering or has injur engineered a turnaround. Think about mcdonalds, you had to have a change at mcdonalds, Steve Easterbrooks comes in, completely changes the approach for the stock. Caterpillar, again, a company that learned how to get very lean and mean in the Mining Sector if you want to play this rally from here, the things that are working are the ones that have the most valuation support ill get back to the airlines, ill get back to the banks, ill get back to some of the minors who are participating in the growth a couple of weeks ago Procter Gamble went up to 95, it got rejected there then you have all this news. Its kind of digesting if you really want to play for, you know, some gains from here on out, you want to get those explosive breakouts. If the market is going to keep going higher to year end, a stock like proctor is going to break out to new highs what if the markets turn lower . Do you want to be in these stocks because you think theyre more defensive or do you want to be in other stocks ive always hated the term defensive. If theyve got the fundamental story, then yes, i do. Ill give you another one of these names. How about Johnson Johnson . There was huge buying yesterday in the options you look at this company, theyve made an acquisition, theyve done everything. Every time i do the pitch, the first thing i always tell max and the boys is, management. If theyve got management, theyve number one and then it goes to the rest of the fundamental story. The fundamental story of all the names were talking about right now seems to be intact now, walmart, its online. Theyve got to compete with the big shegest and baddest with amn and some day with alibaba as well there will be competition, no doubt about it these names, when you look at the cash position, were theyre growing, if they continue to grow going into the future, those are buys on any dip. If if you look at them, mcdonalds is trading 15. 5 ebd right now. You look at the and say its barely trading at a premium, thats a room to grow there. From a valuation perspective, its not out of whack. If the market takes a downturn, thats a jewel in the sector its the d word that pete doesnt want to use, defensive people are willing to blindly throw it at shack, blindly throw it at chipotle mcdonalds is showing they have multiple levers to pull in this environment. Global growth is moving. Germany just one from 1. 5 to 2 gdp this quarter if you look at the Third Quarter in this country, we were probably around 4 weve got wages back to 2009, we saw that in the last jobs number its a consumption story thats working. Theres a global backdrop for it getting in front of valuation at all time highs, people dont care a whole heck of a lot if we have a 5, 10 correction in the broad market, youll be saying, mcdonalds, theyre expected to grow 7 , deceleration from 2017 next year with sales declining almost double digits, that will be the reason why you see the stock back at 115. Where will nvidia be, high number stocks, theyll be getting destroyed. The 10 to 13 pullback youre talking about, which is probably inevitable, the names that are paying a good dividend, relative to their peer group are a leader im just saying, youre going to look back and say, that was kind of odd. Theyre create new ways to generate revenue, whether it be menu changes or shifts or delivery, theyre figuring it out. Mcdonalds is a name, a few months back i got it totally wrong, but theyve proven to me theyre going to get this right. Its trading right now at a, you know, fair value multiple to the qsr space, in my opinion should be trading at a premium. Its a stock i want to own this is really important, ive been long stocks this year, not that short the s. P. Y ive been out 1. 5 over the last two weeks as the market keeps making notches higher. Arent you influenced a little bit we look at a lot of the same things every day when i see 80,000 calls being bought like we had just the other day in spider, unless youre thinking thats ahead. I see irrational exuberance i totally 100 disagree is this a market for rational exuberance very, very slight i dont know about slight but dont moves higher guys, the market is going to go down eventually very sharply. That is not true. That is not true a litany of reasons why the market will go down. At the same time hes saying all the cash is on the sidelines hes also worried about inverting next year. Right theres always something the fed minutes told you the fed is going to go in december in my opinion. Theyre probably going to go three times next year. No question people are fearful that the fed could be a reason that a lot of this could be in jeopardy the reason why i asked why you were short the s. P. Y. , of these stocks at new highs besides Procter Gamble, are there others that you like you guys like to paint me as some bear. Ive been talking about intel for a while, i bought that this summer i have some things that really worked for me but i try to pick my spots we talked about Johnson Johnson, huge update today were talking about proctor and consolidation. Mcdonalds has been basing for four months. Those are the sort of setups that make sense as trades. Im not worried about it going up 14 this is a really good trade and im going to lay into it i think well have a 5 drawdown before this year is out. If you didnt buy mcdonalds, are there other dow stocks that could join the party hi, rich hi, melissa we have an old school surge in the dow industrials on our hands. These stocks have lagged year to date but they are streaking over the last month streaking were going to start with chevron, okay . Big debate in the energy sector. You have to love this chart, weve talked about it before, a multiyear base breakout from this complex head and shoulders bottom thats going to take it higher chevron, 52week high. Crude still stumbling. Energy stocks acting better than the underlying i like to see that we have a similar sort of dynamic with our next chart, Jp Morgan Chase the big boy here look at this, textbook bullish continuation pattern here. What do we see a very survives breakout frdecim that flag. Theres room for catchup in jpmorgan similar to whats going on with crude and Energy Interest rates the tenyear yield cant make a higher high above 240. You say, how can i buy Jp Morgan Chase . The key is the twoyear. Jpmorgan, bank of america, citi, they are tracking the twoyear the twoyear is breaking out to a new high it tells me banks like jp go higher finally, heard the name before, intel. We talked about moores law. We buy more intel here, decisive weekly breakout here the stock is up 8 year to date over the last month its up 9 i dont even know if thats possible mathematically, but i want to be a buyer of the stock. Youre a buyer of ininttel, a br of jpmorgan, a buyer of chevron. Theres still time to get involved in this rally rich comes over because thats the way we roll here. Maybe he can streak the quad. Were bringing the chair in you came up with some very interesting names and some very good chart work over there we standarted the show highlighg mcdonalds, caterpillar, walmart. Do you not like those as much as they once you highlighted . The nature of the market is expanding, no eroding. Today we saw mcdonalds break out from what we thought was consolidation. Youre breaking out from a bullish move there the market is up over 60 year to date. I like those strong names. Walmart is a sleeping giant. Youre just releasing the kraken when it comes to Walmart Walmart is up 25 of the year target is down 18 hold on, peter. You always find the negative in everything. How do i not laugh lets listen to dans question, please dont be so sensitive consolidating for six months below that gap is it going to fill in that gap . Give me a break here, man. Maybe it fills in. Maybe you buy a spread or something. I dont know understood. Were talking about target the xrt, the retail trade more broadly, to your point, walmart is not the rising tide lifting the boats of these beatendown retail names if anything, walmart is joining the amazon party what i think you do is you buy both growth and value. You buy the walmart surge and the amazon surge and leave those weak underperforming retail names next year. Now is not the time to be a hero rich, whats the macro chart . Whether its the dollar or the tenyear, what concerns you the most to keep this going . What weve seen in terms of the emerging markets, the countertrend bounce in the dollar took the starch out of em they imposed their will once again as the dollar fades. Im very bearish the dollar. The breakdown we saw is to be believed im not sure whats been going on over the past year, but point being, dollar goes down, thats the big key here a dollar surge might lean on things rich, thank you, rich ross, great to see you in the top five of all the top 20 guests. Top three weaker dollar, good for multiple nationals sure. Again it is, sure to dans point, walmart is a name, the setup from a cost perspective, its a nightmare. We hit it yesterday. But i would stay away from that story here even on the move higher coming up, apple sinking since iphone 8 and x launched. Dan niles says do not hit the sell button yet, well explain why after this break shares of delta are soaring. And a major fox fail, the company paying more than 400 million for the world cup rights one problem, the u. S. Team wont be there go spain weve got those details. Much more fast money after this opportunities arent always obvious. Sometimes they just drop in. 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. I cant wait for her to have that College Experience that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise you myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Delta shares rallying after beating estimates. Deltas ceo spoke to phil lebeau earlier today about Airline Pricing and competition. Were very competitive. To me its very much about demand when you have the strength of demand for the product and the quality of the service that the delta team is providing, that is overcoming some of those pricing skirmishes that you read about in our industry. Airline stocks have been a hot ticket this month, get it, hot ticket airlines are up 10 or more since the start of october tim, youre in these its bull market after bear market some went down more than 20 delta is helping the whole sector a buyback and an important guide about three weeks ago gave the sector a shot in the arm its ultimately a show of what the discipline in the industry is the problem is the perception. Delta trades subtentimes earnings its a stock that you stay long on valuation which do you like the best . Ual i liked delta when my man anderson was in charge there united has the room to make some catchup when you look into what theyre talking about when they give the call, they talk about Leisure Travel eesh o Leisure Travel is starting to look better going forward. If thats the case, these airlines have room for the upside they throw off cash. What is it about . He brought up a good point. We were talking about united, it kept going down and down you said fundamentally youre okay with it but at some point the airlines were tough to hang in with that trade the momentum on todays announcement gives these guys more room to run i agree, delta number one pick american air is my final trade last night these are names i stick with for at least a two to threemonth trade. The payment stocks, paypal, square, visa, all trading as all time highs, American Express says its weathered a perfect storm over the past few years. Morgan stanley upgrading paypal today. Should you double own on these stocks, dan . Paypal is pretty different than American Express. That stock is up 70 square is up more than 100 . Investors have gotten hip to the fact that there is a very strong secular trend. Where American Express and visa and mastercard play is a little different, but theyre benefiting from a lot of the same trends. American express, earnings are set to rebound up 10 next year, market multiple at 16 times. I think youre going to see 100 in the stock over the next few months the prior alltime high is 96 1 2. To me that breakout was powerful i think the valuation and then the secular trends among the whole space, i think youre going to see this thing trade 10 higher over the next two months the reasons why we were talking about bitcoin and crypto, the Payment System is the same concept happen the world is not banked and yet is in a position to make payments through paypal. I think the stock deserves a better multiple than its priced at right now up 70 year to date. Its rich. They also have 6 billion in cash, no debt. Paypal is a name, it trades at a rich multiple, and it should they need to go on the acquisition hunt it would be great to see them buy maybe some private Software Type companies they could integrate in their platform. Stripe is an example these are platforms that have Great Technology solutions, et cetera, that they can bolt on, and i think people would really accept that. Dont be afraid to still own visa, by the way the payment volume is off the chain. When you look at whats going on in china and india, their Growth Numbers are spectacular. The u. S. Is still 50 , but they are growing internationally at unbelievable levels. That growth is worth owning. Ahead, Retail Stocks on track for their worst week in two months one trader thinks its about to get a lot worse. Im melissa lee, youre watching fast money on cnbc, first in business worldwide meantime heres what else is coming up on fast. X marks the spot dan niles says people are missing Something Big about the new iphone x plus let me here it disrupt thats what uber and abnb were supposed to do to auto and hotel stocks a funny thing happened on the way to the future. ll llstocks are soaring wete you why there could be more gains ahead, when fast money returns apple down 3 since the Company Launched its new iphones a month ago to the Day One Group of techrelated stocks has soared in that time. Dom chu breaks it all down for us, hi, dom. Reporter melissa, tech gets a lot of attention, even though my cracking voice may not give at it credit it deserves it is the biggest sector in the s p, also the best performing sector, weve got that going for us, which is nice. But it doesnt been exactly raindrops on roses and whiskers on kittens the redhot semi industry has been on a tear since early 2016. The semiconductor etf has gained 35 year to date its also up 8 just over the past month at the same time, youve got another top tech performer in apple, up 35 this year. If you narrow in on the last month, its been a laggard, down 3 in that time frame. Apple has been one of the biggest drags on the dow over the course of the last month or so semis are on a 12day wing stre winning streak two tech stories that play out very differently over the short term thanks, dom, feel better. Reporter im out of here apple had its high in 2000, were talking about Strong Performance across the board in technology, apple has been sitting out that rally our next guest says now is the time to buy. Dan niles joins us on the phone, dan, great to have you with us i hear you bought apple, more shares yeah, we did. I mean, apple sort of has this patter