Administrations tax cut dreams a reality. Lets get straight to ylan mui in d. C. With the latest. Reporter melissa, two big hurdles for tax reform are now out of the way the house passed its budget for 2018 just about an hour ago the Senate Passed its version out of committee. This is important, because once they reach a final agreement on the budget, republicans will unlock the special rules that allow them to get tax reform done without any help from democrats. House Speaker Paul Ryan trying to keep that momentum going this afternoon with a visit to a maryland factory he said tax reform is critical to helping american businesses build more, grow more, and do more get the rates down so were on par with the rest of the world. And encourage businesses to invest in their businesses in america. Reporter ryan was referring there to the move toward full expensing in a tax framework agreed to by the white house and republican leadership. That measure is highly controversial and very expensive. Thats just one of the many details of this tax plan that still need to be hashed out among lawmakers. Were not expecting to see an actual task bill until after this budget is wrapped up. Today was the first step in getting that process started but right now its looking like we wont get a vote on the final version until early november melissa, that means the timeline for getting tax reform this year as ryan has promised is getting really tight back to you. Thank you, e lylan mui in d. Do you keep buying stocks on these tax hopes . Russ, you were skeptical that anything would get done. So i have been in the camp of buy stocks regardless. And because i think youre looking at a lower Regulatory Environment, which is a win to the back of equities at this point, this last swoosh up is based on tax reform. You just heard right there, representative ryan is already scaling some stuff back. So to me, theres a lot of stuff that has to go into this theyre trying to fit a 5 trillion package into a 1. 5 trillion box that doesnt make sense to me. I think theyre going to have to scale back a lot will be temporary. Theyll have to finagle a lot of these different tax brackets theyll add that ultrahigh net income earner. I think theres a lot of stuff that has to go into making the soup the swoosh that youre talking about, was that swoosh the swoosh, theres no way this is not a tax swoosh. I mean, if you look at whats rallying, its been a value rally, its been an industrial rally. We sat on this show for many weeks and said, taxes arent really priced in taxes are getting priced in in a hurry. I think its a case where there still should be reason for caution. There are sectors like the financials that i think have the backdrop to rally, whether they get something done or not. I dont think tax reform per se, in the broader sense of the fantastic, is fantastic for banks. Whats been driving financials, reregulati reregulation, lack of regulation thats whats driving financials thats what will stay. I would disagree with both of you if you think that the possibility of the tax is already built in i think the reality is not already built in. But to say the last week, weve swooshed higher theres no doubt about it im going to tell you again, its not taxes im going to tell you thats not your point i think if i can speak for you for a second its not totally priced in. Your point is its not totally priced in. Thats your point. There may be a smidge at the most priced in as opposed to a swoosh . I look at this right now and i think the idea is, weve seen rotation, rotation, rotation rotation now going back to the banks. The banks were in pause mode melissa, you came after me a couple of times, hey pete, those banks arent doing a whole hell of a lot right until rates started going higher and lower regulation. But if you go to the facts and fundamentals, i was going to do a pitch tonight, it was going to be citigroup you know why it has nothing to do with taxes. It has everything to do with the company itself i could do jpmorgan, i could do bank of america, citi, Morgan Stanley. All of those have upside whether we get tax reform or not. Nice tease for the pitch later on in the show the most interesting a lot of interesting things today. The russell has been unbelievable defense stocks weve talked about forever. Industrials, honeywell, another new high the one thing that stuck out to me today, amazon is going after fedex and ups, we all read the headline thats sort of what theyre saying fedex opened lower on the day. Fedex actually closed up on the day. If you think about the strength of it market, even on a day where Federal Express had every reason to go lower, as did ups, they close higher. What does that tell you . The rally is very powerful one of the things we earmarked last night, we said, look, google, alphabet, theyre bouncing around this level for quite some time, looks like it wasnt to rally in earnings. Probably the biggest oneday rally in google in the last couple of months whether its on the back of tax reform, regulation cut, or not so is the market reflecting a 2 economy right now is the market, for whatever reason, whether because of tax cuts or just fundamental strength of the economy, is it the market trading as if the economy is much stronger than what it is the market trading as if lets not kid ourselves, what do you want to own here thats what it comes back. 2 , as we said this morning, by a fed governor, nothing to get terribly excited about you could read that as a dovish fed statement if you want, which means the fed is going to lay back until they see things really accelerate, even though we know theyre waiting on pce and inflation measures that they selectively seem like they could pick and choose, i dont know. You laid out a lot of the potential land mines still ahead when it comes to budget and then of course tax reform at what point are you going to stop saying buy stocks at what point does your assessment of whats going on in washington affect your buying . The way we conduct the show is why, why we thought or where we are in the tax plan and where we are in the equity plan. I think that without question, lower Regulatory Environment is the tailwind that is pushing stocks higher. Thats the overarching so corporations can plan going forward. This is a cherry on the top of it but youre catching a lot of guys on their heels here no one thought we were going to get tax plan done. I still dont think its going to get done. I dont think its going to get done the way we think its going to get done. Theyre going to slap something out there. It will be pro business. You have in d. C. Pro business, pro corporation, and we did not have that in the last eight years, we just didnt. Theres just a catchup here . People are afraid theyre going to be left behind because theyre not positioned for tax cuts youre speaking of worry. Whether youre reading the aaii or cnns factors, theyre all at alltime highs this is not a worry anymore. Its an overly confident market. That alone is a reason to be cautious sure. Especially when you dont believe theyre going to get anything done, and its rallied on that over the last couple of days even without tax reform, the markets are at record highs. Our own Steve Liesman may have cracked the code on where the market is rallying he joins us from texas steve, this is fascinating reporter more fascinating was that brilliant macro discussion you stock guys were having over there, i could listen to that one for a while we went down and dug deep into the optimism numbers first, the incredible finding of our survey, you take the four quarter average of every single Major Economic metric that we ask of the american public, it is a record high for the ten years weve been doing the survey is the economy excellent is this a good time to invest . They all have gold stars because theyre all at four quarter highs. Why . It comes down to a political thing. Its as easy as one, two, three. Three charts chart number one is look at how the republicans are more optimistic about the economy under President Trump than the democrats were under president obama. Now shift to chart number two. And thats going to show you that the republicans were more pessimistic under obama than the democrats are under President Trump. Chart number three shows the net shift in independents who are positive thats how we got there. Here is the problem. The problem for democrats was obama was simply not strong, even among his own people, when it came to the economy President Trump is strong. One of the challenges for President Trump, he doesnt necessarily have as much approval even from his own Party Overall than president obama did. So when it comes to legislating, and it comes to grassos skepticism, its well placed in that regard because he needs to have more support even from republicans. When it comes to Understanding Economic optimism, its that the gop, among the other parties, is more optimistic now under trump than democrats were under obama. And there you go, one, two, three. You have had a busy day today, you also spoke with Philadelphia Fed president Patrick Harper he had some very interesting things to say about the economy. Lets take a listen to that. Your sense of the underlying growth rate of the economy, where do you expect to end up this year . Slightly above 2. Still a 2 economy . Until we see some other changes on the fiscal side of the house, were not going to move that growth rate too much so we have that very discussion here on the desk just prior to coming to you, steve. Is the market trading like gdp is only 2 , were at record highs. What do you think . First of all, above 2 is above trend. Lets not forget the cbo and the Federal Reserve both pegged trend growth at about 1. 8. Now, everybody is so enamored with whole numbers i try to tell people, a half a whole number for the u. S. Economy is a big deal. If you get. 5,. 6 extra, thats a good number. We did 3. 1 in the Second Quarter. We were gonna do 3 we may still do 2. 5, 2. 6 thats. 7. Dont focus on this 3 growth number if you get 2. 7, thats a good number thats the size of the pie now we want to talk about the slice of the pay thats the other thing that determines earnings, which is the corporate profit margin. That has been running high and you look at these wage numbers. Thats the thing you want to follow for understanding corporate profitable there is some wage pressure out there. It is not overwhelming wages have ticked up,. 1,. 2 the corporate profit margin, very simply, corporate profits are running very high. The pie is a little bit bigger than we thought. And the slice of the pie for companies is doing pretty well does that mean that valuations are right . Thats what you guys figure out. The flavor of the pie will quickly change if the fed comes in here. Theyre waiting on any fiscal policy theyve rightly stayed on the sidelines, but the minute we get some policy out of d. C. , the fed may say, we now have to move pc has been wrong, its the wrong measure for inflation. We may have a lot more inflation than the fed is willing to tell us that they know. So lets be clear if were going to extend this ridiculous pie metaphor even further. Please. Its going to bake the pie very slowly. I think thats clear when i talked to harper this morning, theyre going to do another quarter in december, doing three next year. Theres two sides of this ledger if we get growth from taxes, yeah, well get more from the fed. I dont think that relative ratio is really going to change very much. The fed right now does not really want to slow down the economy very much. It wants to remove what it considers to be excess accommodation. And if the fed is right about that, the economy should be able to hold up on its own. Does the markethave to exist a these lofty levels i personally think the market and economy would be better, if wages were stronger, you might not have the inequality in the economy. Those are good things for the economy. Overall i dont see the fed being a major drag on the economy. Dont forget the other really important aspect, the fed is bringing down its estimate for the long run rate. It used to be up near three. Now its 2 3 4 people say, when the fed ends the terminal rate, maybe closer now to 2 steve, thank you. Steve liesman. Pleasure. Talking dessert even before dinner there can be savory pies as well, talking about the flavor of the pie what did you do today, pete . I continue to roll around in the financials i added to my citibank i trimmed a little bit bank of america, added to the xlf. Took off all of my lows. It was a busy day. Yesterday was amazing. The amount of paper that i saw today coming into the financials, beingupside the citi, november 27 is the xlf there is aggressiveness going on right now. You know weve had 26 days this year in single digits. Wow that tells you a little bit of something about how low volatility is. That also means inexpensive options. Thats leverage. Thats why its so busy. Red hat forever, a new alltime high. One trade that might be easy and risk reward wise, i dont usually talk about etfs, but Consumer Staples held 54 a couple of times. Xlp against 54 is pretty interesting. You have to look at the weakness in the homebuilders rates are going higher, theyll get spooked out for the wrong reason im still long pulte i would get long on these dips i bought some citi this morning. Nice to have you along. All good, my man. Breaking out the again, a big drawdown means some thrashing around Retail Stocks do a lot better. Coming up, shares of costco down in after hours. That Conference Call is going on now. Plus Roger Mcnamee says facebooks fake news problem is about to get worse, hell be here to explain why, and the one company that could benefit pete will step up to the plate, one dow stock has more room to run, a lot more room cid. so plain why he s exte much more fast money after this what did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Your bbut as you get older,ing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. Just, uh one second voice guy. [ bloop ] huh . Hey . I paused it. Bam, family time. So how is everyone . Find your awesome with xfinity xfi and change the way you wifi. Microsoft surging 2 , hitting an alltime high after it was upgraded to a buy richard davis, the analyst behind the call, was on Halftime Report earlier today. They could make a big move in the egaming space to bolster their franchise in xbox. They have a lot of money to throw around gaming stocks have been on fire this year act vision, Electronic Arts soaring. Do you play microsoft on esports, guys . Its a good enough reason there are many reasons pete and tim have talked about this for a long time people say microsoft is expensive, 22 times forward earnings its not that expensive. They have the growth to back it up theyve pivoted, whats good for microsoft is bad for everybody else the pivot started with satya nadella. It sounds terrible to go on tv and talk about this. Ibm needs a change at the stop the problems with microsoft started at the top as soon as ballmer was gone and nadella was in charge and i dont understand why Warren Buffett hasnt been more aggressive to that tone. Its just not his style. So its probably not going to happen i agree with everything youve said. But microsoft had the cloud on some level they certainly had the whole office infrastructure, system, as their move into the cloud, their move into that part of the Business Model, the enterprise model was already there. It was in process when satya joined the focus is now on gaming. The focus is on vr the focus is on Artificial Intelligence the buy on esports, was that the original question . I dont think you buy it on esports. Amazon has amazon twitch already. They already own that space. And to your point with cloud space, that they were taking some of amazons share and growing quicker at this point, thats a better point. Oh, you like microsoft, is the bottom line . I like microsoft but not because of esports electric arts, take two. Thats the direct way to play. So you like microsoft for cloud. I like microsoft for cloud space. They got kicked out of the music space, they discontinued that already. Theyve made mistakes in all those exactly theyre not going to be able to compete. I dont just like microsoft, i love microsoft i dont think 22 times is expensive at all as a matter of fact i think thats reasonable. When you look at the cash they generate and the idea that they could make a transformative swigs ju acquisition per year theres nothing slow and steady about up 22 to date. Its also offshore tax play, who has a lot of cash offshore, theyve added it like no one else we had mr. Goober come back hes excited. You guys are going to play pacman a golden state game maybe or something. Still ahead, u. S. Stocks are at record highs, but worldwide, hogwild well have a technician to explain what the charts are saying, and the answer might surprise you im melissa lee. Youre watching fast money on cnbc, first in business worldwide. Meantime, heres whats coming up on fast. Theres something that suggest that there are more biotech stock games to come. Well tell you what it is and how to profit. Plus pete is bringing the heat, one dow stock just made an alltime high today and you nbeeve how much higher he sees it going. The name when fast money returns. Welcome back to fast money. Facebook is feeling the heat over russianbased ads Julia Boorstin has more. Reporter republican senator john cornyn saying hes open to making public the 3,000 ads facebook has turned over to the senate and intelligence judiciary committees on monday he said, i assume they were already published so theyre not secret to my knowledge this follows democratic senator mark warner and republican senator richard burr, the chairman of the Senate Intelligence committee, holding a press conference yesterday burr said the committee would not make the ads public but called on facebook to release them facebook is sticking with its stance outlined by its general counsel on september 21st, saying, quote, we believe the public deserves a full accounting of what happened in the 2016 election but says congress is best placed to use the information we and others provide to inform the public and comprehensively and completely now, facebooks defense of its position and push to improve its own policies are front and center sales force ceo mark benioff even tweeted out a photo of a facebook ads, saying maybe facebook should run this as a facebook targeted ad on facebook the debate will likely grow on november 1st, when twitter and google have been scheduled to testify. Julia, thank you. Julia boorstin in los angeles. Roger mcnamee says there are even bigger problems awaiting facebook roger, great to see you again. Melissa, always a pleasure to be on fast money. You got fast company on fast money here, roger. In terms of the bigger problems facing facebook, what could they be this seems pretty bad. The problem here, melissa, we dont yet know the dimensions of the result infiltration of the facebook platform. What we already know is that it was huge, it was very deep it involved not just facebook but also twitter, reddit, fortune, a bunch of other things in a highly coordinated program that began well before the Election Campaign began. So they were doing things like supporting secessionist movements in texas and california they were trying to cause essentially anger to increase on both sides of black lives matter they were organizing things against immigrants they were doing things designed to stoke resentment inside the United States well before the election and facebook was an amazingly effective platform, because facebook is always taking the position that they are not responsible for what happens on the platform before the election, when i got concerned about this and went to them, the point i made is, at that time they had 1. 8 billion members. I said, look, at 1. 8 million active users, you dont get a mulligan, you dont get to mess with democracy and not be accountable. And i think theyre position, which is that they dont need to do anything, is a little bit like the nra, which is, it could work, but if it breaks, its going to kill the trust in the platform and thats what really worries me so trust in the platform. Is there also the other concern that even though facebook is now trying to hire all these actual humans to sort of monitor and filter out ads, that perhaps that doesnt help something will be legislated, and facebook will face challenges to its Business Model because of new regulations on it . Yeah, melissa, im less the reality is i think regulation will be appropriate but i think politically the country is just not in a position to do that today. To me, the real issue that were dealing with here is that facebook has to prevent this stuff from happening its not good enough to put people in after the fact and sit there and go, well, were going to punish people who act badly they actually need to do some things think about it, if youre a pharmaceuticals company, youre not allowed to introduce a new drug without going through an fda trial. The impact that facebook has on society is such that there needs to be some guardrails that protect consumers from being manipulated. You know, one of the things i would really advocate as a consequence of all this is that facebook be required to contact personally every Single Person who is either exposed to an ad that the russians did or were in a group that they had created or infiltrated, and explain to those people, hang on, you were duped. Right . You have to recognize that people right now are resistant to believing that it affected them theyre willing to believe it affected somebody else but not them i think theres a huge issue the markets like to think of things in sort of binary ways, there are winners, there are losers if facebook with a loser, are there any winners . Apple stands apart in the tech universe of having a completely different philosophy. The issue isnt search the issue is advertising based models, in a world where youre competing for peoples attention and you need to have increasingly spectacular, increasingly outrageous things to keep peoples attention apple, because it sells products, the people who buy apples products are customers they are not the product themselves and so apple has done a lot of things, introducing things that for example the new operating system prevents auto play of video. They support ad blocking and tracker blocking products that are extensions to the safari browser. Those things are really meaningful and i think apple is a part of a solution here. And i think candidly, over time, it will benefit its Business People look at facebook and say, i dont mind them having all my personal data, back when they thought it was just little old facebook and being used inside facebook what the russian thing is exposing is that any bad actor can get access to the private information of every Single Person in facebook and use it against them and that should be very scary. Thats at least as scary as what happened at equifax, which should terrify everybody the technology is just its not being controlled properly. And we need to have much hire standards. Facebooks metrics got called into question. They said they were reaching 100 Million People in the age bracket in the u. S. , 35 and younger, except the census says there are only 76 Million People i mention that because we killed twitter for the bots and stuff when does this catch on for facebook on top of everything you just said . Its a great question the bot problem on twitter is so huge that all the numbers are essentially rendered meaningless. On facebook we dont yet know the dimensions theres a really big difference between a bot on facebook and a bot on twitter on twitter, Everybody Knows theyre mostly bots out there and they arent communicating with other people directly, so theres no impersonation the problem on facebook is that the russians and others use bots to impersonate human beings. People are having interactions with bots, thinking theyre interacting with a human we dont yet have the dimensions of that. And candidly, thats one of the things we have encouraged both the senate and house intelligence committees to insist on, getting the data on bot activity and understanding how many of these groups that the russians either created or infiltrated are dominated by bots,and what is the impact. For every dollar you spend on advertising, you can have a fleet of bots that magnified the impact of that really dramatically because of the way facebook is organized with these groups of likeminded people that facebook collects to make advertising easy but which also make inevitable the abuse by bad actors roger, great to have you with us always nice to be with you. Ive been concerned about it, oddly enough, you look at the stock, the stock is taking a little bump here then come right back, a little bump under 170, comes right back i would have expected there would have been much more than this, melissa. The market seems to be slugging th shrugging it off we just havent seen it in facebook its up 48 year to date. You can agree with everything roger said, i think we all can agree on that, but the bottom line is, are ad dollars going to think away ultimately from facebook i dont see them going away from facebook in fact its exactly the opposite facebook is best in class in ad. Its creative, its the attribution. Even if you put a discount rate on for all the other shenanigans at 30 times its a 210 stock. So yeah, right now theyre getting stronger but the things roger was talking about, in fast company, by the way. Amongst fast company on fast money. Still ahead, stocks around the world are surging. If you have to put fresh money to work right now, should you stick with the u. S. . Or go somewhere else plus pete is eyeing one stock for huge gains by the end of the year. What has him so extecid . Well find out when he delivers his fast pitch, after this our collaboration with pg e is centered around public safety. Without pg es assistance, without their training we could not do our mission to keep our Community Safe. Anytime we are responding to a structure fire, one of the first calls you make is for pg e for gas and electric safety. Its my job to make sure that they have the training that they need to make the scene safe for themselves and for the public. Its handson training actually turning valves, turning systems off, looking at different wire systems all that training is crucial to keeping our Community Safe and our firefighters safe. Together, were building a better california. Welcome back to fast money. Check out emerging markets etf, surging nearly 1 . This has markets around the world are soaring while the u. S. Market is up 14 this year, brazil is jumping 28 , india up 19 , south korea 18 , mexico up 11 . You get the point. Is it time to bet across the pond as emerging markets go wild ambassador first of all, you saw that china is up the most when china is working, you want to stay in em. The other part about this is, look at emerging market index. If you follow me on twitter or emerging money, eem versus spy that spells you how much room this trade still has to go em underperformed spy by 60 , has rallied back there are key levels along the way. Follow those theyre very technical in this ratio and its worth taking a look at. Yes, the dollar is a concern but remember, the move in the dollar of late is a dollareuro cross. Em currencies have been holding in there i also think we would be remiss in not mentioning that china cutting the triple r, reserve requirement ratio. If you look at the [ coughing ] the fxi ran 65 piggyback that with cutting the triple r doesnt take place until next year if you look at the fxi [ coughing ] excuse me, im a little under the weather. Youre playing hurt i apologize i know its awful to hear on air. Now you brought it up, Everybody Knows. You hear coughing in the background, you have to wonder whats going on. Hey, robert. Hey, melissa. Tim has hit a number of key points the dollar is a starting point when were talking about international markets. Its come down a long way here over 2017, obviously reflecting lower inflation expectations, declining bond yields in the u. S. , overall growth being somewhat sluggish. Now its come down to a very key technical level. I think it is trying to bottom right around here. I think the dollar can start to come back. That raises a question of where you want to go do you want to put your money in international markets, do you want to look at some other option in the u. S. When we look at the russell 2000, it had the same issue as the the cdollar, all the way th 2017 sideways, only recently breaking out thats important statement, it tells us something is changing in the macro standpoint. The russell 2000 is starting to break out, something is beginning to change. Now, when we look at the russell 2000 relative to the s p 500, there is a fairly important low in 2016, where everything collapsed. Markets snapped back you had this big sawtooth pattern in the russell 2000. Its now starting to turn. And the question is, i think whats starting to happen here, is this much broader deflation into reflation is starting to take hold. As we take a look at the emerging markets, while theyve had a tremendous run here, they are starting to move back into quite a bit of technical resistance it doesnt mean they have to stop there but is is that where you want to put your first incremental dollar if you have other options . As tim pointed out, the decline in emerging markets relative to the russell 2000 or the s p 500 has been six or seven years in duration we had a nice bounce in 2017 it really hasnt gone to this technical level. Thats the level that tim was referring to at this point, with the russell 2000 starting to break out, im more inclined to put incremental money into the u. S. , into u. S. Small caps where we have banks, financials, reflation trades, all sitting, and i would be cautious about putting new capital into the emerging markets which have run a long way. Robert, great to see you, thank you. So who agrees with robert . I thought you were going to do a would you rather, but go ahead, continue. Thats basically would you rather first of all, emerging markets, everything goes higher, well start there. The iwm, the catchup trade, up basically 7 against a backdrop of the s p being up 3. 8, lets call it 4 i think you have to believe in this rotation. You have to believe in tax reform getting done or at least gaining some more traction to believe that the idm catchup and outperformance trade continues from here. Small caps are even more expensive from the nasdaq, they always trade expensive this is the concern. This is why Global Markets look a lot better emerging markets traded two standard deviation, cheap, attractive valuation to the s p. Two steep standard deviation event, not easy for me to say, is absolutely why you want to own them in addition to techs. The biotech boom has been hot this year. It could go even higher. Well have a special report. Pete is bringing the heat again. Getting ready to pick a surging stock hes calling a home run for inveor wn ce cksts,heweom time for the fast pitch. Pete is at the plaza with the housing play he says is a total home run one of my favorite stocks, home depot if you go back and take a look, mel, when that stock gave their earnings report, the stock went down it made no sense at all. I thought that was an opportunity. We always look for opportunities. Heres why i like this company if you look at the outstanding management teams that are out there across every sector, i think this one starts from the founder, but each and every one of their ceos has been absolutely outstanding this guy is just as good as everybody before him hats off to them for creating such an incredible business. The incredible growth is what i do like. The earnings last quarter, year over year, strong growth revenue, strong growth everything they were trying to accomplish, they did same store sales were up now theyre talking about 13 for the full year. Theyve really got all the growth, that checks every single box. You look at whats coming up next strong Housing Market. We all know about that, weve been watching that, and grasso has been all over the homebuilders take a look also, youve got irma, youve got all of these different tragedies that have gone on, thats going to feed into the bottom line as well thats going to be a strength. When i look at this company, and i look back, one of the things i always like to look at is, are they a sharefriendly company . Yes, they are. They have bought back, this is not engineering, this is just truly being friendly to the customers, and to their shareholders, 35 of their outstanding stock has been bought back in the last ten years. Thats massive theyve been aggressive. And take a look at that chart. It gives you a little idea is the stock at highs . Yes. Do they have growth . Yes. This is a stock i think that goes higher from here. I happen to agree but ill ask a question because thats what we do, youre in the batters box, you have to swing. I think back in june or july there was some concern in the market that maybe home depot could be amazond. Heres why im not concerned about that they took on that challenge and theyre winning. As a matter of fact their growth in online, guy, 23 . They went for ecommerce theyve done a great job with the mobile, which makes it much more efficient inside. You buy mobily, you can go there, pick it up and go theres all kinds of different ways theyve been going after the customer to keep the customer theyre beating amazon at their own game like best buy is. I bought three things online at homedepot what did you buy . Fireplace tools and a lighting fixture why should i go and i can buy online im going to call foul ball earlier in the show i talked peak on pollen on my trades. I fast pitched home depot in the past and you still like it im a buyer hes listed to the pitching coach often. Lets not get in front of ourselves, buddy boy pete nailed it as usual, im a buyer, firing on all cylinders. The Housing Market is running tight, home depot is still a leader lane is watching the show in his office shovel season what does that mean youre a buyer. Giddyup. Mulch its toni braxton time. You want to know what you guys out there, whether you are buying petes pitch for home depot. Vote on our twitter poll right now. Well reveal the results later in the show. Plus wve geot the details on biotech, more fast money after this welcome back to fast money. The biotech space is so hot it has us in desperate need of some stock therapy. Meg terrell joins us hi, guys. The biotech window is pretty wide open right now in terms of Third Quarter results just reported by Renaissance Capital on health care ipos, they accounted for almost half of ipos in the quarter, helping drive outsize returns there. For health care there were 14 ipos in that quarter with an average return of 57 . In terms of the pace of biotech ipos, people im speaking with say they are picking up but its not getting to an overexuberant level like we saw back in 2015, 2014 of course that was the top of the biotech market, the middle of 2015. We have a chart showing the number of ipos tracked against the ibb performance. You can see in the Second Quarter of 2015, that was a peak in the number of ipos. Then the market peaked after that that was when the drug pricing rhetoric heated up in terms of policy topics and ipos slowed down a little bit after that now theyre starting to pick back up again. We had three ipos in the last two weeks that have outperformed since they were priced nucana, deciphera, and rhythm. In terms of whats to come here, a lot of whats contributing to those gains is the fact that some sort of more generalist funds, big funds are getting into ipos as crossover investors. Youre seeing that sort of return to allocation to health care in terms of those bigger funds, which is good for the overall market, of course. And private funding for Biotech Companies reached a record in the Third Quarter, according to bruce booth from atlas ventures, 3. 6 billion he says thats setting up 2018 for a gang buster year for ipos. Are there specific areas of Biotech Companies going public cancer companies, rare disease companies, with both m as and ipos, those are good. Thanks, meg terrell pete, where are you . I got out of my gilead position, i liked that company a lot, its been stalled but i see upside buying there. Biotechs are a great spot to be, oncology will be the big growth area fob for sure. Sell clean wcelgene moved do the downside ibb closed higher. I think the selloff in celgene is overdone. Celgene down more than 4 today. Lets get to mike khouw in dallas, texas. Reporter after the Morgan Stanley downgrade you would expect to see bearish activity after seeing three times as much call volume as normal, on the opening side it was actually next weeks 143 strike calls, nearly 1500 of those traded for about a dollar those are bullish bets by the buyers that the stock could recover about four bucks of the 6 1 2 that it gave up today by next friday. I am not in biotech currently. Ibb is the way i would play it look what weve seen in teva and mylan. If you want to cancel out all that noise with individual stock plays, ibb is the way to play. Mike, thank you, see you tomorrow, options action, full show tomorrow 5 30 p. M. Eastern time next, are you buying petes pitch for home depot the results when we come bk. Ac well, its earnings season once again. Yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. Can i kick it . Yes you can can i kick it . Yes you can can i kick it . Yes you can well im gone 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 welcome back to fast money. Cue the drum roll, results are in you know what . Nobody puts baby in the corner because its time for some dirty dancing. America is buying petes pick for home depot by a two to one margin, a huge victory shake it, pete. Another day at the office, guys back for the final trade. Xlf, financial etf. Keep an eye on this thing, theyre buying 100 plus thousand giddyup, financials eem, a big pullback in turkey this is a place to get in. Vista outdoor, long a couple of weeks it goes much higher than here. People at home are tired of hearing toni braxton over and over again thats too bad. Mel, you got the pats bucs tonight. I dont know what to watch. What are you going to watch ill be going back and forth. You know what you should watch . That xom, that sucker sort of shell be watching that im medical he is is a lee. See you back here tomorrow at 5 00 for more fast. Mad money with jim cramer begins 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 trying to make you money. My job isnt just to entertain but to educate and teach you call me at 1800743cnbc or tweet me jimcramer. How in the world did this market get so darn high yet another day where we hit new