Theres one stock that traders are piling into ahead of the event. Well give you the name. And then later, has the beer bubble finally burst well tell you whats taking the buzz out of brews in a very special report first, well start with the f. A. N. G. Resurgence. Facebook, amazon, netflix, google, all surging after a slow month. Nasdaq closed at a fresh record high today do you keep buying these stocks . If these names can get going again, just how high can the market go . What explains this we had all this good economic data, in theory rates should have been higher thats usually good for the deep cyclicals. Instead, it was good for f. A. N. G. s thats what was per president electing the fact that the Economic News was so good, people were buying f. A. N. G. Stocks in the past because that was the only place you could find growth. Now in theory you should be able to find growth elsewhere so why are these up . One reason might be people think the fed is going to stomp on the recovery that seems to be what the market is telling you i dont know whether its true or not there are some very positive notes on the facebooks of the world, the netflixs of the world. Netflix raised their prices. You say the setup there is for that stock to continue to move to the upside. I would be buying netflix ahead of earnings. That stock is going to continue to work into earnings. I think theyll have a great quarter. The setup for them at least for the first part of next year is the trajectory is higher i also like facebook the most interesting out of that group, tim has made this point, the data suggests that the fed is probably behind the curve, might have to move quicker than anybody wants them to move, which might be somewhat detrimental to the market which might make these i dont know what the explanation is. Im not even certain that my explanation matters. Ill say this, out of the four names that weve just discussed, i think google sets up the most interesting. We talked about google earlier this week, held a pretty important level for the last a couple of weeks. Now it seems to be breaking out to the upside into earnings valuation, its the most fair, in terms of upside, it has the most upside. Michelle, welcome, its great to have you here thank you we had massive is hm numbers. Nobody expected that we had payroll numbers that showed the American Worker is starting to make some money. Tear wages are the best week over week gain weve seen since 2009 it tells me were in an environment where first of all the sickcyclicality, google hasn dead in the water until it looked like they started to make a move this week facebook and google, basically the book ends of the f. A. N. G. , i dont see the moat around their business as the Competitive Landscape gets up and going. Valuation, we talked about this yesterday, the ad growth at facebook, despite whats going on out there, they continue on attribution, creativity. They are the ad model. Theyre growing 40 a year on ads. So on netflix, and ive been wrong on this too, because i figured that as they raise prices and as competition came in, it would be a problem for them heres the thing its at such a price point that i think people just keep it anyway you could raise it a couple of bucks and nobodys going to get rid of netflix its going to cost them a couple of bucks a year, thats all. The margins for netflix, its like a hockey stick, it goes straight up in the air were looking at ten bucks for earnings, thats on the low end. Its a 250 stock. In a couple of years, you look at it and say the setup is beautiful right now. I dont think the wheels fall off the truck. You have a multiple on it of course they do, youre going to see things. They spent a lot on content. Theyve paid forward for content. They now own the content theyre burning cash, raising prices, growing in europe. Youll see Gross Margins ramp significantly, starting basically there was a discussion here, though, about the possibility that Interest Rates could go up if the fed is behind the curve, if they have to deal with the payroll number was good. Thats the thing thats going to make the fed more active to what degree, when you get a high multiple stock like netflix, Interest Rates are deadly for those stocks. We talked about the equity risk premium, what price youre going to pay for stocks given a certain level of Interest Rates. Area not at that certain level of Interest Rates. But moth people i have talked to, this is where consensus matters, 3 on the tenyear is where that starts to take some of off of the stock market youre not willing to pay as high a pe. What we saw today with bugs, they ripped right after the payroll and reversed and closed basically on the lows for the day. Thats why people rotated into f. A. N. G. They looked at everything that happened this week and said, Interest Rates still arent going up so its safe to buy these things Interest Rates have gone to 240 for a very short period of time some of that was north korea, and im not sure that was appropriate. Look at the curve, look at the tenyear over the last five years. Were smack in the middle of the range. This is not going to be easy, folks. Again, those ism numbers are indicative or you could attribute to a 4 economy. Who things were going to 4 nobody were growing at 2 , its going to be difficult for us to break out of that range. I do think the fed is the biggest risk, i think the fed is behind the curve 4 back up the truck and buy the heck out of this market. I dont think theyre going to fumble the ball on this. You dont think the fed is going to fumble the ball on this i dont wow i think theyre going to be the process of normalization is going to be incredibly patient, incredibly slow and sevennsitive. You listen to europe, they talk about pulling back on pe what happens with janet yellen i dont think theres expectations that were going to get somebody in there thats too aggressive i think the gentleman theyre talking about taking over that spot is a pretty welldocumented hawk and i think you could make an argument that a number of reasons led to this move that were seeing right now, not least of which the next potential fed chairman my pushback on netflix, netflix tried to do this five or six years ago and it failed miserably. When they tried to raise prices right now, i think they have a stickiness factor. Since then theyve added a lot more value theyre going to be 535 million in earnings this year. If they take that dollar uptick in pricing they just put through, its 750 million in earnings its insane. They have the leverage and the model to do that thats the part of the equation that people are missing, the leveragibility of that model how can you leverage it its flexed the model its not a model thats based on commerce. Its a model thats got some limitation i see saturation in the u. S. , i see a lot of competition, content is costing them more and more they say theyre going to be more subs this year than last year youre not worried about disney no. Most of the netflix subscribers i know, they like it because their kids sit there and watch the same thing over and over and over again. Thats me disney is the one product out there that could take all of those people who get it for their kids i said it on the show before, if anything, disney will buy netflix at some point in time. Why does disney needs to own netflix . Lets be clear. The restructuring of the content they had with disney, when netflix restructured that, dont i think that was done for a reason netflix is happy thats off the table. It was too costly for them the reality is what does it get for netflix . The platform. A lot less money. All right i dont know. Dont move, everybody weve got a lot more to talk about here coming up, moments ago elon musk tweeting about what he called production hell for the model 3. Stock is taking a hit after hours. Well bring you the details, next plus no fear anywhere. Volatility index hitting historic lows. But that may not be a good thing for the rally. Well explain. Later, a number of big banks gearing up for he mentionearnins well give you the details muchorft ne sait me asmoytrgh ahead. For years, at t has been promising fast internet to small businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at t. We do business where you do business. Welcome back to fast money. We have a news alert on General Electric making some management changes. Seema mody is in the newsroom. Michelle, General Electric unveiled major executive changes. Jamie miller will become chief Financial Officer on november 1st. Current cfo Jeffrey Bornstein will depart the company. He says this is the right time to bring in a new cfo to guide ges ongoing efforts to improve our performance and enhance shareholder value. Vice chairs Beth Comstock and john rice will be retiring at year end the announcements come soon after ges board elected John Flannery as chairman of the company. Thanks for the rundown, seema. General electric could bring Thomas Edison back to run this place, i say that respectfully to mr. Edison. Theyve missed, they bought things when they should have sold things and theyve sold things when they should have bought things. But now weve got a new guy thats great, but theyre fundamentally way behind the curve, in my opinion look at what honeywell has done, look at what General Electric has done people say ge is cheap on valuation. I think that valuation gets cheaper. Were talking about Free Cash Flow generation that comes from cost savings and that were going to bottom on essentially the eps trough in 2018 this is nothing to get excited about. Correct ge has core assets that are in better position than the market is pricing them for remember, this is a turnaround these going to take some time. It should be doing well in this environment it has the pieces, parts to do well in this environment it just hasnt power and energy. Next were following a developing story on teslas production woes, the stock taking a hit after hours following this tweet from ceo elon musk. Diverting resources to fix model 3 bottlenecks and increase battery production for puerto rico and other affected areas. Musk added the company is in, quote, production hell the wall street journal says parts are still being produced by hand, away from the Assembly Line wow. Elon musk, god bless him, is tweeting good and bad. Hes out there, making statements on the company, gm was throwing some shade in the direction of tesla saying some of their assertions on autonomous are not necessarily look. The gm versus tesla story is go we talk about. For people who want to call tesla a tech company only, the delivery story is still a relevant topic bottom line, weve seen delays all the time historically from tesla, and its never dented the sentiment in the stock. In the long run you have short term moves based on these long term delays. Ive been a fan of tesla, dont have any position in it, because it appears the market is focused on these production delays to me, tesla is not just a car company. But until the market starts to value it again as not just a car company, you have to be hands on call it the amazon affect check out shares of costco getting crushed today following its earnings report. The cfo talked about the pressure from amazon on the Conference Call last night as relates to, you know, the publicity in the news and the noise around, you know, amazon and whole foods, all we can do is perform when we look at the Value Proposition, our view is our Value Proposition got better you know, you read about hope foods having a giant increase in member shops or customer shops that first week. I would hope they do i would expect them to are these just online growing pains for the big box retailer anybody buy this stock today everybody is worrying about competing against amazon with delivery no. Costco, walmart, target, theyre all in trouble its all about scale in this business to get to scale, its incredibly costly amazon has a lead that is leaps and bounds ahead of these guys theyre all playing any sort of investment theyre making as catchup, theyre playing defense, trying to make any smoke and mirror they can to suggest to the street and investors that theyre doing the right things to figure out a way to catch amazons tail theyre not going to catch it. Theyre way too far behind again, scale wins in this game did you see express scripts down as well amazon may decide to do pbms as well its clear that jeff bezos wants to eat everybodys lunch hes decided he has a window in time that he can go after multiple different industries. Maybe its because the stock price is up and he has that firepower. But hes coming for you. Its going to be hard to beat. That being said, i dont think walmart has the scale. I would be a buyer of walmart. Hes like a pacman of margins, where he cease margise he wants to eat them at some point the market is going to demand profitability out of this company. Theyre competing on a number of levels god bless them, their investments in logistics are paying off in spade. People are over the benefit of the doubt of amazon in terms of their ability to take on these industries hes right, they dont have margins now, but its the one stock that people dont seem to care the expense here, the expense side of the equation is massive. To play catchup if youre a target or a whatever is incredible the cost is incredible you look at the partnership that walmart is doing with google why are they doing that partnership . It goes to show you, if youre smaller than them, youre in super trouble. Im not a big fan of walmart. Calling it a tech play because they have a little ecommerce mo mojo, is crazy but to say theyre behind amazon its totally different. Their solution is to have emplo employees drop them off on the way home from work as Brian Sullivan talks about all the time, amazon is about 10 of the Retail Market 10 . The other 90 is still brick and mortar stuff but its getting smaller, dude i get that its getting small. To their point, you can fight a war on many fronts at a certain point, youre fighting too many battles on too many fronts and it comes back to haunt you. When do they raise margins when they put everybody out of business and they can make the margins whatever they want to be the pbms are in a lot of trouble if amazon comes knocking ahead, how traders are betting ahead of Big Bank Earnings next week meantime, heres what else is coming up on fast. The only thing we have to fear is fear itself. Well, maybe not because wall streets socalled fear index just flashed a sell sign well tell you what it is and how to protect yourself. Plus fast money is hitting the beer garden in search of a cold brew and maybe a hot beer stock. The name when fast money returns. This is a power plant. This is tim barckholtz. Thats me this is something he is researching at exxonmobil using fuel cells to capture Carbon Emissions at power plants. This is the potential. Reducing co2 emissions by up to 90 . While also producing more power. This could be big. Energy lives here. 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. Welcome back to fast money. Life is as it should be. Why . Because thousands are gathered at the annual Great American beer festival this weekend however, there is a dark side. The bubble could be bursting lets get to landon dowdy in denver for the details hey, landon. Reporter hey, michelle i havent found the dark side yet. This is the super bowl of the beer industry, the Great American beer festival theyre ready to get the taps flowing this weekend in fact were expecting 60,000 people to attend the event it all kicked off last night beer lovers lined up around the below block to taste more than 3500 engineers. We have so many different people that are trying their hand at different types of things, bringing a whole new generation into loving beer. Reporter and despite the crowds that you see, the beer category is actually struggling, sales are down so far this year. A lot of that has to do with wine and spirits but brewers are adapting, theyre getting creative and innovative thats what weve really seen at the festival the consumer wants more flavor, more variety than ever before were seeing more companies respond. Theres more options people are experimenting with brands that change constantly with the season. Clearly beer lovers want that experience, they want to connect with brands. Ways that you can engage with your lovers rather than just offering them a product. Reporter trends havent been positive, but dont count beer out just yet some did show signs of growth year over year more than 800 brewers here are pouring their beers, a record 5700 breweries nationwide are betting on beers turnaround its 5 00 on your show, not here, but ive been working since this morning, time for a little blue moon cheers to you. Cheers, landon, enjoy that beer that was a rough venue. Thats really bringing her lunch pail to work didnt ben franklin say beer is proof that god wants us to be happy . What beer stock would make you happy . Inbev is the best run beer company out there. Beer has a lot of competition from craft liquor, from spirits, which is growing, from substances, which a lot of people are are using ill just say that, theres an impact on beer. David writes all about this, writes great stuff at the end of the day, the beer stocks are stretched i would prefer to be in spirits. Anybody buying a beer stock constellation brands, beer margins were up 420 basis points they raised guidance for their beer sales so you can say its an expensive stock. But all the analysts now raising their price target on stz. We raised ours at 243 bucks thats the one that, you know, were just referring to. Shes amazing, she talks about the trends in the industry shifting when you talk about cannabis, taking away from beer sales. In honor of the Great American beer festival and final trades, lets get some stock picks that will give your portfolio a buzz diaggio, growing spirit sales, they become aspirational. Diageo, happy birthday a train knenetflix, the quarter comi up is going to be a good quarter, theyre going to exceed expectations this stock is going to continue to work long term. Bk broiler. International business machines, ibm, it doesnt stand for business anymore, its blockchain machines, thats the one i like, ibm. Really . Have you ever seen a show great to have you here oh, its a pleasure did you ever see the show Threes Company . Jack ritter always having a few cocktails, buzzed, mr. Roper that makes me think of Roper Industries check that out, its on fire that does it for us here on fast money. Catch you back on monday dont move, options action starts right after thibrk. S ea tmobiles unlimited now includes netflix on us. Thats right. Netflix on us. Get 4 unlimited lines for just 40 bucks each. Taxes and fees included. And now netflix included. Directv has been rated 1 in Customer Satisfaction over cable for 17 years running. But some people still like cable. Just like some people like banging their head on a low ceiling. Drinking spoiled milk. Camping in poison ivy. Getting a papercut. And having their arm trapped in a vending machine. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable switch to directv. Call 1800directv. Were live at the Nasdaq Market site. The guys are getting ready behind me. Heres whats coming up on the show life comes down to a few moments. It all comes down to earnings for the banks next week. Well tell you which Stock Traders see having the biggest move right now were the best gm ever right now gm shares had their best week in five years. But theres something in the charts that suggests now might be the time to tap the brakes. Well explain. And so just how