Later, its a secret sign that energy may have found a floor and had one trader placing a very big bet. Well tell what you that is and well start off with the big moves in tech. Cisco surging and tesla misses but the stock is soaring on an upbeat outlook and amazon announcing a 5 billion buyback. Do these then to buy back the standout performance we saw in todays session in technology . Is it time more importantly to put the tech trade back on . Guy. When you talk about the tech trade, thats a pretty wide swath but in terms of cisco specifically it might be time to take a serious look at cisco. You dont have the Revenue Growth you need to v. Probably up 2. 5 , 3 and youre talking about a company thats traded seven times forward earnings, great Balance Sheet as shown by an acquisition added to a buyback. Started to make a transition are, and pete can speak to the transition microsoft did. At least they are attempting to move away from legacy businesses into businesses to make more sense for them, specifically cloud. I dont know if it raises all tech, but i think syscos got a little bit of room on the upside here. Karen . I agree. Cisco is the most important of the three but for the fang stocks Something Like tesla is helpful. Amazon the 2 billion buyback, 2 billion, a 2 buyback, i dont know over how long. I dont know. That doesnt really count for me for much at all. Right. They have been the whole space i do think well see a nice bounceback. The context though is that in todays session we had yellin testifying. Theres every reason to sort of be on sidelines but we did see a bit under technology. Specifically more of the quote, unquote risky areas for a biotech area. Is this good news in the afterhours. The point is with cisco, look at their legacy business and look at where they want to get, to i think they will be battling. I dont know what the margins will look like. I dont know what they should look like. Heard warnings from oracle about licensing and fees and legacy business was much better on the march gin front than the new business or cloud or xh commoditized business. I would not be a buyer of cisco. Why you might want to have interest in there is they are returning money to Share Holders in a huge way. Obviously they obviously had the buybacks in and add 15 billion to that and jump the dividend from 21 stones 26 cents a quarter. They are using the Balance Sheet and look at where they are doing this, by the way 5, 2week lows. This is just an afterhours market. Can we see the volume actually pick up enough that this is going to be meaningful tomorrow . Probably not just yet, but these numbers tonight i think shows the transition is in place. I think im only interrupting you because im going to forget what im going to say so if i go back on a longterm chart on cisco youre making a series of lower highs and can you go back as far back acts last crisis that we h. Youre still battling with levels that they cannot break through. Right, but fundamentally, im talking about the fundamentals right now. Forget that side of it for a moment. Its because of the margins. Margins coming down. Right. Look at the transition of where they are going, to data centers one of them, security another. Thats where they will pick up but the core business youre right. Thats a struggle. More broadly though. Karen made a good point about the amazon buy back. People are getting guilty in the afterhours session. Do you think this amounts to much . The amazon buyback. Im with karen, not a big deal. I thought the day was really interesting. Obviously the fang stocks we all like to talk about all had a decent day. First time youve seen that in a while. I think facebook should rally for a lot of different reasons, not least of which they are running a business really well. Google bounced off a completely sold position in my opinion and amazon probably similar. Whats interesting about the day is we talked about it here yesterday. We said the market was setting up for a move to 1880 in the s p. Steve went to the smart board and look at the high. Spot on at 1880. Gave it all back. Tomorrow could rally again but the bond market continues to show strength and pete tells you the ovx is the significantly above. That does not auger well. When you look at the direction of oil and look at the ovx, 75 is where it went, to got down and actually closed closer to 72. Volatility has not been able to break. Volatility got all the way down about a week or so ago. 1970 and broke right there and stopped right at 509day moving average. When you look at volatility in the overall market the volatility level remains extreme and because of that thats why we see the crazy moves at the end of the day. Fang stocks actually traded pretty well. By the way, the 5 billion buyback thats reasonably significant when youre looking at amazon so can you understand some of the reaction in the post market. Facebook, the numbers were incredible. Stock ran all the way up to the highs that it did. The pullback, i thought we might get all the way down to the 200day moving average. We didnt. Nice pop today. Still looking at 94 and facebook. These are very tough markets and very easy markets because have you to look at a couple of things. Have to look at china and oil and european banks, and until those things add up to maybe stabilization, you cannot buy facebook, amazon, google, anything. You cant buy anything as a marketplace. Oil had extremely bullish inventory levels. Look what happened on a daily chart in oil. Extremely bearish activity. It looks like its going to the teens. Can you not buy the overall market because theres no growth. All right. Our next guest south with a very bold call. He says stocks could rally another 10 from here so what it is that the bulls are missing. Lets welcome ed yardeni. 10 sounds great from here but youre down 10 but youre basically calling for a flat year. Basically a flat year. I mean, you made it sound like i was all excited about the market for this year, but actually i think well have another year like last year, very difficult, very choppy year, and i think once again Central Banks are going to be the key here, and i think to a large extent investors are kind of giving up on Central Banks having any ammo and maybe even running out of fairy dust, and todays commentary by janet yellen made it very clear that the fed is not just data dependant but also market dependant and they are not going to be able to raise Interest Rates if the markets stay this turbulent. And so they got themselves into a real trap here because if they Start Talking about the economy is doing pretty well and the markets rallied a little bit and they Start Talking about raising rates again they will get another tightening tantrum. In this scenario where the markets will be up 10 from year, what areas will outperform within the senate, what areas will underperform . That 10 number is really an objective by year end. Sure. And all kinds of things can happen between now and then and hopefully well get to that kind of target, but my vest strategy really throughout the bull market has been focused on a stayathome strategy as opposed to going global. Thought the Global Economy has hey lost risks and its gotten worse, not better and stay home means literally staying in homerelated stocks. Some of them are doing reasonably well. Health care has done pretty poorly but i think this is a Good Opportunity to buy health care because once the elections are over they wont be under attack by the politicians, and i think consume remembers in great shame with gasoline likely to get down to 1. 50. Employment continues to grow and consumelers have Discretionary Income to spend on entertainment and leisure and stuff like that. You mentioned Central Banks. You saw bank of japan, german tenyear yields down around a quarter percent, whatever it is. Let me ask you a question. Missteps by central bankers. Does that throw a Monkey Wrench into this . To have the Global Economy survive and grow at a muddling pace and some stock markets doing better, particularly in the u. S. , if Central Banks are run out of ammo . Clearly were all coming to the conclusion that negative Interest Rates dont work and i think that clearly raises that kind of concern. This bull market has been clearly led by the Central Banks. I think its going to be a stock picks market as opposed to a market thats driven by the Central Banks, and for those of us who are investors we might actually look forward to that. Ed, thanks so much for phoning in. Thank you. Ed yardnni of yardeni research. Do you agree with ed . He just said health care, im not sure if hes referring to the biotech companies, hospitals, what hes actually discussing there. I tend to lean on a lot of different names because i think you know, when we got through earnings, we heard pretty good earnings from a lot of big pharma companies, those specifically and they sold off. We even got great earnings about the biogens, ceilingi icelgenes world and to the upset when you saline on, you say long or youre leaning on them . Im long these names, just about every name i mentioned. Up next the ceo of sales force and a wearable tech stock and the name and what has them getting back in. The european banks doing something they havent done in a very long time, they are surging. Whats behind the rally and is it the worst is over and cisco, twitter, whole foods, tesla, big earnings, big earnings and moves in the after hours session and instant reaction on all the afterho afterhours action. More after this. Welcome to opportunitys knocking, where selfproclaimed financial superstars pitch you investment opportunities. Ive got a fantastic deal for you gold with the right pool of investors, theres a lot of money to be made. But first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. Youre not even registered; im done with you i can. I can. Savvy investors check their financial pros background by visiting smartcheck. Gov watching tvs get sharper, youve had it tough. Bigger, smugger. And you . Rubbery buttons. Enter the x1 voice remote. Now when someone says. Show me funny movies. Watch discovery. Record this. Voila. Remotes, come out from the cushions, you are back. The x1 voice remote is here. Welcome back to fast money. A big day of gains for the major european banks and this comes one day after a report circulate that had Deutsche Bank was considering buying back a big chunk of its debt, eu rally helping to boost stocks. Were hearing unconfirmed rumors will the ecb dabbling around in some of the stocks, fuzzing around around the edges as well. That they are buying the stocks. Unconfirmed speculation they could buy bank stocks. All right. That was the one thing and then they start to expand qe we dont know what that really means but all this stuff is bullish around the edges. They have to stabilize in order for you to buy the United States banksing a well though. Im just curious, karen, the reports that Deutsche Bank would use some of its cash to buy senior debt. Does that put a floor under the stock at all. I dont know. I mean, its probably a great return for them, since the debt will eventually mature. When you talk about the ecb buying equities, that to me is a bad sign if they actually have to step in and do that. When that happened effectively over here. That pretty bad. Much rather see Deutsche Bank getting them buy back their own securities. Buying it. And you see these banks. Like i said before. You need to see Deutsche Bank stabilize before you see other european banks stabilize before you buy u. S. Banks the same way you see caps stabilize and china and theres a whole lot of things on your check list before you ent near u. S. Equities. In terms of Deutsche Bank the stock didnt reach the friday low on the big spike up. Yeah. Gives you an example of how beaten down this name is and some of the names in the sector. Talking about it last week. Been a lot of activity of people playing for the downside. Some of e moves they are making could stabilize the bonds. Does that mean that stabilizes the stock itself . Probably not. Next up, hess saw nice gains after Goldman Sachs upgraded the buy from a neutral adding it to its conviction buy list adding, quote, the hopes and dreams story of 2016 saying hess offers the most development opportunities. They see 52 upside for the stock. Hess thats lowered by more than 45 on the year. Guy . Hess loses money on the eps side this year, next year so its an expensive stock number one. February 5th they priced a 25 million share secondary through a number of firms. Goldman sachs being one of them at 39. Five days later goldman raise an upgrade to stock and puts it under the conviction. And hopes and dreams. I dont know what to tell you, folks, and im not saying theres any improprietary here. Just doesnt pass my any of test. Yes, it rallied today and theres better placed to be. Hopes and dream, all about it. Hoping and dreaming every day, but i think youre reaching here. I feel like this is a drop mike moment. Done. For me. Goldman sachs and hess. Next up, ceo sales for mark bannoff taking a 5. 3 stake in fitbit sending the stock higher 5 one day after making a new postipo low. B is this a good sign . Its a sign but i dont know how good. A lockup of a huge amount of shares and look at the Short Interest of the stocks. Absolutely incredible. This stock, i think the biggest problem i see right now is even though they do control themselves in the wearable industry and they look so good they still have enough competition out there and how long can they hold off the apples of the world, samsungs of the world and the rest. Folks that are all trying to get into wearables. Dont a great job so far, but are they able to continue this defensive manner . Im not so sure and i dont know if you want to chase the stocks. Im not sure if youre aware benioff is an active buyer. You see mark cuban buying things. This was sort of interesting to me and you wonder if theres chatter around the neighborhood. When is the lockup, im curious. I dont know. Today. Its today. 157 million shares or Something Like that. Thats part of the how much those folks are going to cash in. To your Goldman Sachs point though, ive seen a number of companies that as the lockup is approaching, they sort of leak out, whatever good news they possibly can to be able to release the locked up shares and the highies price possible. Maybe he was sort of a bunch of conspiracy theorists tonight, arent we . Were doing another show after this. Its not a conspiracy. Peter najarian, twim. Can we get a look at that. He trimmed up that goat. He looks good. Handsome man. Looks good. As we head to break. Its not just twitter and tesla dominating the headlines tonight. Take a look at cisco and whole foods both moving lower in the afterhours session. Weve got all the headlines and instant reaction. Im melissa lee. Youre watching ffun first on cnbc, first in business worldwide. Meantime heres whats coming up on fast. Tonight on fast which one of these two men do you think could save their stock first in the answer could come as the Earnings Call unfold. Well bring you the lateest. Plus. Open norman. Its the secret sign that energy may have found a floor. Well tell you what it is and why it has traders so excited when fast money returns. Welcome back to fast money. An earnings alert on cisco hovering near the afterhours live. Josh limitson live in San Francisco with the latest from the Conference Call. Josh . Reporter well, melissa, of course, cisco is a true tech bellwether and investors pay very close attention to what Ceo Chuck Robbins has to say about the macro and economic climate out there. Take a listen to what he told analysts. Weve experienced one of the most volatile times in the global markets. This volatility led to a slowdown in spend aing impacting our business, especially during the last few weeks of january as we closed our quarter. Despite this slowdown we executed very well. Reporter so throughout the call robbins really emphasizing the climate remained soft and challenging, cisco saw customers, in his words, pause a bit in the last three weeks of the quarter and you heard him talk about the execution and strategy depends in part. You see the new partnerships cisco has developed with everyone from apple to airin and aggressive m a and recent billion dollar acquisition of jasper but the news here that surprised investors, of course, boosting the dividend, 15 billion of the increase of the Stock Buyback Program and sent the showers up after hours and the Capital Return Program will have no effect on that m a strategy. Is there any elaboration on where in the world or what businesses specifically felt that downtick in business and spent the last three weeks of the quarter . It sounded pretty broadbased, a lot of curiosity, of course, about china. Remember, its a couple quarters okay you saw orders pop 40 . You still saw robbins sound pretty positive. He called it well balanced and said switching it around, growing double digits and as hes done throughout the call with respect to china. Clearly said a lot of certainty there, melissa, but cisco is taking things, he says in, his words a quarter at a time. Back to you. Thank you, josh lipton. Lets trade this because at one point in time we used to see juniper was taking ciscos lunch and now it looks like the roles have reversed. Probably still true. One of the reasons cisco has to move away. Pete talked about microsoft before microsoft got its mojo back and im not suggesting that cisco is microsoft. What i am saying it was stuck in the mud for years in terms. Stock until they rejiggered their business. Cisco seems to be in the midst of doing that. Revenue growth is patry. I get it, but i think its enough to see the stock tr