Headlines hit on the coronavirus. New york city is halting all inperson learning starting tomorrow it comes as the number of coronavirus cases and hospitalizations are skyrocketing nationwide. And a new all time high for s p. We have a Record Number of cases of covid in america and retailers are hitting an all time high. How can this be . The haves and havenots kudos to karen and tim target numbers were extraordinary. It should come as no surprise. Thats a name we have talked about. If you love walmart at their valuation, you have to love target at theirs walmart quarter i thought was very good. There are a lot of good individual stories, but i dont think it speaks to the economy per se there are names we also mention that seem to be topping out. The price action in restoration hardware, William Sonoma and we dont need to go down the road of what they sell. Those stocks popped out a couple of weeks ago thats concerning. Do you want to play at the 100 earnings table, gap earnings on the 24th and macys tomorrow i would submit that macys could trade up to the june high. Squeeze out all of the shorts and then you sell again. Karen, what do you make of the retail t. J. , the home goods business makes complete sense of people spending on throw pillows and if you are blankets, but the dividend is really interesting it is interesting to me guy just talked about macys they dont have the Balance Sheet to reinstate the dividend. But we have seen it a couple of times. T. J. Maxx, it was home goods that drove it. They are talking about reinstating the dividend and increasing it i believe in march of next year i dont get why Companies Feel they need to do that maybe they want to flex their Balance Sheet and show how strong it is i dont get it i dont feel like we are through this pandemic. We saw kohls do it. Target did it. They may be reinstating their buyback. I dont understand completely why. No, that was lowes. That was a retail low point. We can get to that later i dont get why Companies Feel the need to increase their dividends or discontinue their dividends temporarily. I think they should keep them low for a while. I dont know why they need to come out and be so aggressive. If they cant forecast earnings for the Fourth Quarter, tim, but they say we will reinstate the dividend for the Fourth Quarter we have clarity to that but we dont have clarity in the fourth earnings quarter report. What did you make of today i agree i dont know why that has to be a part of it unless you are not an oil company some of these trends i think have been in place for sometime. Look at the srt going back one year it has outperformed the s p by 4 the point is has there been a changing of character and has this been going on slowly but surely accelerated by covid. So a more lean and efficient Business Model with some of the worst stories me know in retail which me know around macys and baed, bath and beyond. Some of these get into restructuring faster i think some of those trends are very much alive. I think the comps were very, very strong. The question was on the gross margin with such a great quarter, people thought some of that, the business should be more profitable that takes you through the july high and maybe you get back to 135. I think you start buying lows here target with those u. S. Comps, the question Everyone Wants to know is what can they do after covid. Thats what retail, big box will be struggling with steve, i dont know how you are going to buy your toilet paper after the pandemic i am still going to buy online for a big part of the population, returning to the store like walmart or target, it may not be as appealing seeing how convenient it is to buy online i still have about five closets of toilet paper. So if anybody needs it oh, you are that guy. I bought it legally, tim, so i waited in line i keep going both ways, i keep going and keep going. I love the canned laughter i like the haves and havenots this will turn into would you rather i would rather sell target, lowes home depot and buy kohls think about this kohls will make more money than they did this year, next year. I am 100 positive on that can target keep its multiple the same it has to to move sideways or move up. Or a home depot or lowes. So in a game of would you rather, i buy macys this thing doesnt take much to make it pop. I would buy kohls down 43 to date steve grasso is sitting there with his closets full of toilet paper. Karen, you mention both macys and kohls they are two Different Companies. They both went down dramatically in march but kohls Balance Sheet is in good shape macys, they are still trading at a discount. I think that i would rather, if i was would you rather myself, i would rather be long kohls and short macys to me the macys run already is accepted plus they have a lot of new york city eccentricity. We are going to try and fix karens audio. Based on the bottom line, karen would rather kohls over macys. Joining us now from chris white. You would expect this because Bond Investors are looking at the longterm so investing in the future when we look at clothing retailers, the question will be what happens when macys comes back to the market, not necessarily today, but when they refinance the debt thats out there. You make the point, chris, and important for viewers to know, macys is already a zombie company. They dont make enough money to make interest payment. If this is the first time you hear zombie, you will probably hear it a lot in 2021. There is an article 1. 4 trillion debt issued by companies that dont have the earnings to service the interest on that debt so either that company is going to borrow more money or go under. Thats the position macys is in as a retailer. Chris, we find ourselves at a point where if Global Economy is improving and Interest Rates would go up, some of these retailers would be in a good spot but would rising Interest Rates be catastrophic to some of these names you talked about yes, primary and secondary markets will be key to how some of these companies survive Interest Rates are low to keep many of these companies solvent. The solvency is the ability to borrow money without paying the double digit Interest Rates. Thats the game being played right now to avoid what you are talking about. If Interest Rates were to normalize, i think a lot of these companies would be in trouble. Tim, may have a question, but i will continue on this note are the Zombie Companies in one particular sector . Oil comes to mind. But does retail have anything to do with it macys is the only retailer fitting into that category i love that you pulled up the kohls data beforehand Bond Investors are savvy about who can pay their debt and who cant. Its across the board where you are finding Zombie Companies its very important that people look into how companies are servicing their debt before they make a debt or Equity Investment at this point. It comes down to is the fed going to be there to help out. If the answer is no, you are in trouble as an investor chris, always great to speak with you thank you. Thank you very much chris white tim, what did you make of it how are you why was a zombie on the screen for a second the story around a retailer, is the fed going to support strategically probably not. Macys, like other retailers is certainly on the verge of some significant cash crunch, but they were able to raise a billion three. They are going to get through 2021 and 2022. The last quarter, the surprise was they generated a little cash and i think you will hear in the Third Quarter there was a little more of a cash burn. Their Digital Sales are up 53 it is a business that has restructured on the fly. They have had success in parts of their retail chain. I mean in the home part, beauty. These are segments they needed to grow in one of the keys for the Equity Investor and i have been adding to the macys position the last couple weeks. Do you hold it through earnings. I dont think the expectation is that the Third Quarter will be good so there needs to be a glimmer of hope. Nordstrom and others who issued debt remained solvent for some time, karen maybe thats the bridge to the other side of the vaccine which looks like it could be sooner rather than later. Maybe macys has been able to mon ties for a few years. They have done that for a number of properties. They might have some less. The last lever they have they cant be in the debt market we saw it with the airlines. Thats a last ditch thing they can do speaking of vaccines, big news out of pfizer new data details next it seems like every day we get more vaccine news. But pfizer has a look at their phase 3 trial and it looks better than the interim look we got last week. 95 efficacy in adults 65 plus there were 170 total cases they saw in this final look 162 were on placebo and only 8 on vaccine 10 severe cases, 9 of which were on placebo now they have to file for emergency use with the fda for the vaccination. They said there are intense side effects like headache for a small amount of people the Company Plans to submit their application to the fda in a couple days. The fda said they are thinking about holding a advisory meeting on vaccines on december 8, 9 and 10 and they could be discussing both pfizer and moderna vaccines we have talked about how the Different Companies are approaching this from apprising standpoint how these vaccines are shaping upper dose pfizers is 19. 50 per dose and thats twodose regimen. Moderns is 15. 25 based on a similar deal moderna would argue they got about 1 billion in development so for both it is about 25. And both of these are doing it as a nonprofit, at least during the pandemic thank you, meg. Steve grasso, not too much impact today from what we got a week ago all of the vaccine plays topped out in july they all came in and then this latest news headline flurry, they popped above their july highs, but back in below the july highs now you dont get a rally in the vaccine names multiple times for the same news. While i own pfizer, i have owned pfizer for decades i am still staying long pfizer, but i would not be buying any of these on a vaccine play. I think it is a long shot. Guy, you are making a similar price action about these stocks. Pfizer particularly, look how horribly it has traded since last mondays announcement we know it traded at 42 because we talked about some of the insiders selling, legally of course i know for a fact when moderna was trading on the other side of 100, and said that was a gift and if you were enjoying the ride, you should pull the rip cord not to cast dispersions, but gilead started this all. Pfizer, i never thought vaccine was one of the things for it why carter says the bitcoin breakout is ready for a breather and a Conference Call underway we will bring you the details when fast money returns. You can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Welcome back to fast money. We have an earnings alert. Josh has the details hi, josh the stock was up about 130 this year. 2. 3 in gaming. The 1. 9 was in data center revs inline and the gross margin, he said that could have been a bit better we will have more about the forecast mitch remains a bull i asked why, and he said this is the best pure play on Artificial Intelligence they talked about their new family of chips, talked about the decision to buy arms for 40 billion. Said they are working through the regulatory process on that gaming a hoard amount, but down year after year. Looking for more on the call about the margins and data more when i get back to you. Tim, what do you think of the quarter . The numbers were fantastic. Data center, incredible. I think we have known about the strength in gaming at mid 60s, so i think its about the multiple for this company. I have been saying multiple on this company at a couple hundreds i think you have to be right there. For all of the others, guy, sorry. Maybe intel should take a page i dont know if the folks at intel are watching, but maybe take a page out of the nvida playbook you are nitpicking Gross Margins could have been better they gave you Fourth Quarter guidance which was fine. What happened here was and steve can speak to this 580 or so we traded there in september, traded there a week or so again. Armchair technicians, if you have not coordinated to this name, i think you want to figure out where to buy it. Put that on your radar screen as an entry point. Steve, is this a trade if the overall market gets better or stay at home play . Both. Unfortunately, the former is going to outweigh the latter to guys point, it topped out in september at 589 this month it topped out at 587. For the last couple of days last week it has been hugging the 550 day. Right now its below, 527. I do like selling this it is one of my favorite names, but unfortunately, the head wind, as you framed it, value versus growth, that will win out in the end you have to buy value not growth we have a lot more ahead on fast money. Here is what is coming up. The max is back what does boeing 737 Max Ungrounding mean for the Airline Industry details next and later, want your portfolio to blast off options traders are betting on an out of this world move for shares of Virgin Galactic. We have that and more when fast money returns going to tell you about exciting plans available to anyone with medicare. Many plans provide broad coverage and still may save you money on monthly premiums and Prescription Drugs. With original medicare youre covered for hospital stays and Doctor Office visits, but you have to meet a deductible for each and then, youre still responsible for 20 percent of the cost. 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You get all this for as low as a zero dollar monthly plan premium in many areas, and your doctor and hospital may already be a part of humanas large network. If you want the facts, call right now for the free decision guide from humana. There is no obligation, so call the number on your screen right now to see if your doctor is in our network, to find out if you can save on your prescriptions, and to get our free decision guide. Humana a more human way to healthcare. Welcome back to fast money. The max is back. The fleet has been grounded for nearly two years after crashes killed a total of 346 people phil lebeau joins us with details. The stock was up about 24 leading into today everybody knew the max was going to be ungrounded soon by the faa so no surprise in the announcement but nonetheless, nice move since the middle of october, end of october. You are seeing that reflected in the stock trading over 200 a share. Just to bring you up to speed, how long ago the max had the first accident the first crash was more than two years ago and then it spent much of last year the company was going through investigations on capitol hill hearing and investigation between boeing and the faa. Then earlier this year is when things started to change late last year, early this year when you had these Text Messages that came out about engineers at boeing and knocking the faa. Dave calhoun stepped in and shut down production. We will have to cut the enroll by at least 12,000 this was boeing saying what do we need to do to get the max recertified. Then you had a test floigt in late october and today finally the ungrounding of the 737 max we talked about how much it meansto boeing but suppliers, there is ge and ge aviation along with sefron who make the engines and then out of wichita, kansas, they make the fuselage. It is not like they are going to ramp up production, but you will gradually see them improve in Production