Euphoria right after President Trump was elected, right here on this show. Hell be here. First, well start with bonds. U. S. Bonds the tenyear yield crossing a key level now well above 2. 5 . Rates have been rangebound for most of the past five years. Its the one variable markets havent had to face yet. Is a bond bloodbath ahead and if so, can stocks and rates rally again . I dont think we see a bond bloodbath. Weve been in this range for the last four or five years. Clearly low yields have been great for the stock market over the last seven or eight years. There will be some that argue if rates went higher, that would be good because it implies economies are getting better, Global Growth is doing well, stocks should do well, indeed. I would say this if rates rise, the u. S. Dollar should rise. A rising u. S. Dollar could potentially be a headwind instead of the tailwind weve had with a weaker dollar so you can make many arguments this is the one thing i would say. You cant have it both ways. If low rates are good for markets, you cant have it that rising rates are equally good for markets. If we had a gradual move higher in the tenyear, the last time the tenyear traded at 3 , it was early 2014. The s p 500 was at 1,800 we know they made what some people call a generational low in the summer of 2016, right into the election. And now here we are, weve had this stable rise in rates, and weve had the stock market at record low volatility just inching higher we would continue to be bullish if rates keep moving higher and the stock market with low volatility keeps moving higher as we get north of 3 gdp growth, which were significantly higher than that, do you think that the fed is actually find the curve . Do you need were in the right level of accommodation, do you think rates should be here i think absolutely not and if you 30 b think you think they should be . I think they should be. I think the bears out there, many are still clutching on to this view that were still in a global deflationary spiral that comes after a huge credit bubble i would argue weve worked through a lot of that. But last night, the boj gives you the best i think sign that Central Banks may be starting to move outside of the fed when they at least lightened up a bit on their boj buying at the long end of the curve they were targeting five b bllis these guys have had a big impact on our yield curve this scares me a little bit because im agreeing with dannon something. Really . Are we starting out like that . The bonds going up and the market going up, i absolutely agree with you as a matter of fact, i look at whats going on in terms of the options world, the derivatives world, and its bullish. I love whats going on in the financials and industrials tax reform, all those things going in, infrastructure the global economies right now, and everything seems to be working in the strength. I think the markets can continue to go higher let me ask this, then right now it seems like goldilocks rates are within this range, theyre just right but once we get more towards 3 , dont we then start questioning valuations, equity versus premiums come into question, right . You have to you have to that was part of the argument, valuations are so high rates are so low that we can have high evaluations. When youre valuing a Company Based on a riskfree rate, if the riskfree rate is zero, its going to be make the company more valuable than when dcf backed the profits and attached that rate. 3 is very different than 2 , very sensitive also i think youre going to see a lot of fixed income traders that were pushed into the equity market a lot of people pushed out of the risk curve that will be very happy to see a 3 tenyear if you look at prior market tops, we had a tenyear at 7. 5 at 2000, 5. 5 back in 2000, 2007 were talking about 2. 5 on its way to 3 to me, the best Case Scenario for Equity Investors who are you will bullish, i would love to see some discomfort. We cant keep inching higher we have to see some unfounded selloff. A more hawkish view sell off equities at 5 00 . Then you have your shot to get back in. We have a new fed governor here if they start to behave very differently hawkishly youll have a market that will respond differently the market has been inured to possible volatility because the fed has squelched volatility markets have forgotten had you to trade and i think theres more volatility coming. What you said was also very telling, if the fed comes out and is more hawkish, the new fed, that is, equities will pull back thats the reaction. Higher rates you should want a pullback. Get a little fear back in the market here. Why would that be the pullback that ends the bull market run i dont know. The s p closed up three or four handles, pretty benign today. Vix was up 6 today. I think the vix was up because the bond market got beat up today. Maybe the vix is telling you maybe the vix is scared. One day does not a trend make. When you get on this whole bond discussion, its the velocity, right . We talk about that all the time in the markets specifically in that area, if its a slow, steady chop towards that 3 , thats a different set of circumstances than we get spikes, when we start to see that start to move much faster than expected, thats when youll see the pullbacks that tim is talking about, or youre talking about, dan, because people start to get scared and wonder but if its a steady push to the upside, the markets can guide along with that. Banks are soaring, no surprise to our next guest who saw the rally coming days after President Trump was elected. I think youll see financials explode higher because theyre going to do better without the shackles being put on them and put on them and put on them. By the way, i think that will be really good for the economy. What a call lets welcome back Howard Lutnick, chairman and ceo of Cantor Fitzgerald, chairman of newmark group. Howard, great to have you back great to see you. I think a lot of us saw the value in what you said but didnt expect the strength of the followthrough of what you said where are we now in the bank rally, in your view . Were well on the way but the tax reform bill, cutting everybodys taxes so that every dollar they make, another 14 points goes to the bottom line, you know, people are focusing on the fact that theyve got to repatriate some money from overseas so it looks bad for a quarter or two you know what, once that quarter or two is passed and the earnings pound forward, youre going to continue to see a positive market, people are worried, people are scared, theyre just not used to a 14 Corporate Tax cut. Im telling you, were in for a continuation of what you have seen since the last time, ill see you next year, same thing, same thing were going to keep rockin higher beyond just a mechanical cut to the rate, are we going to see an increase in demand for various lines of business . Are we going to see it translate into, for instance, increased loans . We havent seen loan growth, Business Loan growth its just been basically dry no, i dont buy youre going to see new loan growth i never bought that stuff. What i see is, the Financial Institutions are going to make more money theyre just going to make more money. Right . And theyll have less regulation on them and theyre going to trade more and theyre going to make more money. So financials are going to do better period theyre just going to do better. Its not that hard to figure out. Theyll pay 14 less tax, theyll have less regulation if i said you cant talk about this, you cant talk about that, this show wouldnt be as good as if i came in and said, talk about whatever the heck you want, you would be so happy, and your audience would be so happy because the show would be better thats all thats happening for financials the show is just going to be better you dont think the rally weve already seen is built in large part on this notion that theres going to be less regulation and the shackles have come off sure. You said it so well in 16, the shackles were going to come off when we saw the rally. Dont we know the shacks elles e off . When the volcker rule dies, they do that transaction, they make a couple of bucks, and they do it, what, thousands of times . I just think financials are in a good spot. I saw it last year when i was with you guys and i still think its there i think it feels good. I came to talk about Something Else today, so i wanted to talk about newmark, our new Public Company. And new Public Company, so you obviously have a lot of concerns, coming up with a the new Public Company but youve outlined a great bull case, you were correct last year but you have to talk with your colleagues and say what can go wrong with this, what am i missing, what are we missing i just dont see, you know, to harm the stock market, you need to see a huge bump in the Interest Rates and i dont mean, you know, two fed bumps and the tenyear goes to 3 , that sort of nonsense lets face it, if we talked about 2. 5 , going to 3 , none of us would give a hoot, right . Its not going to change the world. And that requires a busting economy. You know, and so why would a busting economy, which would move Interest Rates, be bad for the stock market the problem is, its not there sure, an exogenous event in north korea, whack job, Something Like that, fine. But youre in a market, good things are underlying, and theres no clouds. Sometimes i see really, really dark clouds, right if you had seen me in april of 07, i would have told you the world was coming to an end thats why Cantor Fitzgerald did so well, because they were huge black clouds coming, and you could see it, you say, kids, its sunny now but its going to rain in an hour. Right now theres not any clouds on the horizon, it feels really good they just empowered every corporation in america to make more money thats unprecedented most people are afraid to actually say, wow, thats great. Its great for all the investors, all the pension funds, anybody who has money in this market will be a happy puppy. Lets talk about newmark. In july you said on another show on cnbc that the trump agenda will help real estate and financials newmark is a commercial Real Estate Company that will list on the nasdaq do you think that the agenda has come through the way you thought it would when it comes to real estate no, i think the market of low Interest Rates is great for real estate and i dont see it going anywhere of any material consequence. People are afraid of the you know, in the real estate market, weve had a nice long run. You know, isnt this a cycle coming to an end remember, we talked about, this is the easiest Monetary Policy in the history of modern finance, right and when theyre done with quantitative easing completely, you know what well enter . The easiest time of Monetary Policy in the history of modern finance. The cycle is based on Something Else its not based on where we are now. Where we are now is, youre going to see an extended cycle three years longer than people ever imagined. So i think real estate has a Beautiful Run to go. We just took newmark public at the end of december, because i promised everyone we would do it in 2017 and i like to live to my promises obviously it wasnt a great time to take it public. I ended up selling it to the public, selling 10 , but very inexpensively, right think about right now. Were trading 10 1 2 times, all they analysts public today, brandnew, fresh, 10 1 2 times earnings all the peers, 17 times earnings they expect our growth at 30 . All the peers, 9 . So we grow triple everybody else, and were 40 cheap. Heres my guess. Call me back next year and talk about newmark. Newmark will be by far the best performing Real Estate Services company in the United States of america. It wont be close. Just like bgc financial, my other company, ive said it four years, up 40 a year for five years in a row people who get worried, like oh, you priced the stock kind of inexpensively, does that make you a flop i would say, i dont know, for the investors i would say it was a holiday. Before you go, howard, i hope you do come back before a year goes by, thats a long time to wait for you Bank Earnings will start on friday, basically this week. Do you have any guesses, anticipation how the market will react . You mentioned the lumpiness of the onetime charges the banks will take to adjust for the new tax. The Fourth Quarter, theyll all take their charges for the Fourth Quarter theyll say, gee, that was bad and now lets not talk about that again each of them is going to say, whats the worst thing i could say, because i get a free ride of saying something lousy, even though business was fine, im going to Say Something lousy, then theyll start in the first quarter. And theres going to be confetti, right, and little horns, right and youll watch financials start with the first quarter, and the Second Quarter post nicer and nicer numbers. Simply because if they make the same amount they made last year, right, theyll be up nice Single Digits if they make a little more because regulation is coming down, youll all of a sudden have double digits you start being up double digits quarter after quarter after quarter, your stocks will do well newmark up 30 , the Analysts Expect the stock to go up 30 . You dont have to be a genius, you dont have to say the multiple will close. If the multiples close, the stock will be up 60 but if the stock stays dirt cheap, the stock will still be up 30 , so what . It went up 30 a year because the earnings went up 30 its not that hard interesting case. Youre so eloquent, howard it almost seems like you should be running for office, ever thought about that Oprah Winfrey is way more popular. Look, ive got so much fun, you know, we Just Launched a new baby in newmark. You have your hands full . Its done so spectacularly, the ceo is such a great guy. When you have investors, they invest with you. These are people who now say, i rely on you and count on you, and they look to us. So i think my job for a good long time is to take care of them, to take care of investors who invested with and you say show them they made the right choice in backing my Management Team and so thats what im focused on i am not running for anything. Okay im not. Im not ruling out, never. Im only 56. But i think in my 50s it would be a hard challenge. Howard, thank you for your time good to see you. Come back before a year passes Howard Lutnick do you think confetti will come out after Fourth Quarter earnings i was raised, it always scares me when its very hard to talk about or explain what the bear case is and nobody maybe there is no bear maybe howard is right, theres Just Sunshine for as far as the eye can see i cant believe that is in fact the case, though ill tell you, if you look at banks, i dont think theyve really started to price in tax reform if you look at a couple of these guys, howard talks about the opportunity for banks to certainly use the deferred tax benefit the banks actually had, we heard some negative stuff out of citi, some negative stuff out of goldman the bottom line is this is a great environment for banks. The contaminaapital return is ar of this, remember the stress test the banks were put to youre getting 2 div yields could these companies trade at the same multiples we could be pre2007 in terms he have bank price to book. Weve talked about this a lot. If you look at the way theyll be able to use leverage, the deregulation story in 2018, the midterm year, it doesnt speak to this populist movement. To me, i dont see increased deregulation in 2008 coming up, bitcoin falling from grace, down about 25 from its alltime high in december. Tom lee, the strategist with the hot hand on bitcoin, says the cryptocurrency could easily double in 2018 guy adamis favorite time of year, earnings season as all wall street waits with bated breath, guy will tell us one stock which is set for a major stock which is set for a major breakout luckily the Geico Insurance agency had helped them with Homeowners Insurance and the inside of their house was repaired aneplaced. Jack and jill no longer have to fetch water. They now fetch sugarfree vanilla lattes with almond milk. Call geico and see how affordable Homeowners Insurance can be. Welcome back to fast money. Weve got a news alert on dominos lets go to Morgan Brennan reporter hey, melissa, thats right, we have a leadership change at the pizza chain. Patrick doyle, dominos ceo, plans to leave the company in june the board has named Richard Alison who is head of Dominos International as the new ceo russell winer, currently the president of dominos usa, will be taking on the role of chief operating officer of dominos, both appointments effective as of july 1st. A change in the c suite at dominos. Shares are down a little over 1 in the after hours trade back over to you thank you very much, Morgan Brennan. Of course Patrick Doyle loved, i would guess, by investors. He really was at the forefront in terms of bringing technology into the restaurants when people talk about using technology to increase productivity at a restaurant, Patrick Doyles name is usually lumped in there, right and without question, and really, the concentratisolidati this pizza industry, its part of why when you look at a 26 times multiple, at one point it was thought you couldnt do it its now getting within five bucks of the all time highs. I think you take a pause maybe promoting the International Head to ceo is a good thing to tims point, it is a big valuation. But the Earnings Growth is probably there to support it theres also a big shortage. I would say this if the shorts cant lean in on this tomorrow on the back of this news after the investor day, i do think it will push up towards that 221 level we saw back in may. I still think theres some runway left for this stock another news alert coming out of nissan at the Consumer Electronics show in las vegas. Lets go to jon fortt with more. Reporter melissa, money will continuing to pour into the Auto Technology business. I talked to the chairman of Mitsubishi Alliance ventures is a new effort, 1 billion worth of money they expect to put towards startups through this effort over five years. The first deal is a Company Called ionic materials, a Battery Technology company that believes its Battery Technology is cheaper and safer ive talked to him about what this move really means in the context of the other 50 billion internal investment that these companies are doing in advanced Technology Take a listen. Obviously its a substantial amount at the same time, were talking about 1 billion, over 50 billion of investment, about 2 of the effort. Im not worried about my companies now or three years down the road or five years down the road im worried for five year plus when i was making the turnaround of nissan, i was worried about next month, and i was worried about the next three months. So its a completely different way of looking at things both very heavy. Reporter a survival issue both ways, but this one more off into the future. Here at ces, a lot of talk about Car Technology some of it having to do with voice, for example this deal between amazon and toyota for alexa in the car more money getting ready to pour silicon valleys way for the Car Technology back to you. Thanks, jon fortt in las vegas at ces pete, a lot of opportunity in cars here we are at ces and theyre talking about the automobile industry, which leads me towards Texas Instruments, nvidia, a lot of the different chip names some of them have performed great, Texas Instruments is one of them. Other names are suffering right now, theyre not really performing as well those that are actually very much hooked to the automobile world right now are doing extremely well yeah, listen, this is the theme. Weve spent the last five years talking about smartphones, talking about cloud, it all converges in the car to me the smartphone world is fairly saturated here. These are the sorts of announcements, i did a power pitch a couple of weeks ago. Fast pitch. This is fast money. I was talking about the Services Agreement stop throwing things. As we did with alphabets waymo. Everybody will be involved in this sort of stuff, whether services or technology what does this tell about you tesla . Today, toyota also threw their hat in the ring. This says tesla is way ahead. Maybe but in terms of miles driven. The assumption is theres no other players in the space in terms of autonomous, maybe you need to have the track record ultimately when you hear about gm in robotaxis, when you hear about toyota in the space, when you hear about the driverless car autonomy is only as good as the miles driven in order to get the system to become smarter so by having that tremendous lead in terms of hundreds of millions of miles driven if i was going to bank on someones production coming through in time, it would be toyotas, not tesla. The multiple of tesla is disproportionate to the advantage. She got owned he owns you. No. Were just conversing here america has gone crypto crazy. If you want those returns without the risk, well tell you how to do it with a different product. Im melissa. Youre watching cnbc, first in business worldwide meantime, heres what else is coming up on fast. You wont believe how high tom lee sees bitcoin going by the end of the year. Plus guy adami says one stock is going even hiergh the name when fast money returns. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. We rbut we are not victims. Ack. We are survivors. We are survivors. We are survivors. And now we take brilinta. For people whove been hospitalized for a heart attack. We take brilinta with a baby aspirin. No more than one hundred milligrams. As it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a Clinical Study brilinta worked better than plavix®. Brilinta reduced the chance of another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor,. Since stopping it too soon increases your risk of clots in your stent,. Heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily,. Or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers,. A history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding,. New or unexpected shortness of breath, any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor about brilinta. My heart is worth brilinta. If you cant afford your medication, astrazeneca. May be able to help. Until the past month markets have hit record high after high. But theres been one surprising loser. Breaking it down is a man who is always a winner at least in our eyes, dom chu. Reporter i cant believe how much winning is happening on the show right now, melissa. But if you thought only winners emerged from bitcoin trading, you havent been watching the trading over the last month or so, because bitcoin has been a loser compared to other Asset Classes that give you an actual claim on an asset or a stream of income or have a physical quality to them. We all know that cryptocurrencies are volatile, and quoting performance information is subject to significant change weve seen the cboe Bitcoin Futures fall by around 20 over the course of the last monthish. Meanwhile, other things that you mine for like gold, up 5 in that same time frame, up 5 . Oil prices up 10 . And the stock market as a whole measured by the s p 500 is actually up 4 within the stock market itself, the hottest sector over the last year, technology up around 4 as well as measured by that spydr ticker trafficking in crypto is not without risk of loss and were not even talking about some of the bigger losses weve seen in other digital coins like ripple. Melissa, a lot of movement happening in bitcoin compared to other Asset Classes. Thanks, dom chu our next guest called the rally in bitcoin this fall now hes back with another bold call in the cryptocurrency tom lee, happy new year, good to see you. Happy new year. Whats your networxt call fo bitcoin . Theres a lot of concerns about bitcoin being off its highs. I think its a really healthy consolidation. At the same time, i dont think investors have fled blockchain we sent some materials over to show you the different sort of token sizes. And the midcaps have almost tripled in the same time that bitcoins consolidated i think its a really healthy rotation taking place. Where do you see bitcoin going . And do you think that is the coin that will have the greatest return in 2018 number one, i think the use case for bitcoin hasnt changed. Its a stored value. That and ethereum are the blue chip names out there today i think bitcoin still has really bright prospects we think its going to be at least 25,000 by the middle of this year and probably more than double that by the end of the year more than double current levels or more than double the 20,000 i think both. I think bitcoin is still growing its wallets, which is justifying an increase in the network value. But in terms of the 50 largest tokens, i think many of those are going to do significant better than that i think bitcoin is still a great portfolio diversification for investors. But i think this is the year when you see a lot of altcoins continue to break out. Im going to go back to the questions that i ask of all the coins, which coin do you see having the greatest return in 2018 well, so we have to be a little careful because were treating these like recommendations. So weve only formally written about bitcoin. But weve you know, we are tracking over 700 tokens in our database, thats how were compiling these indices, and tracking advanced decline. We have a very structured view of what were seeing out there again, i have to be careful what i talk about we talked about one of the creators of ethereum the other night on fast money. He was talking about other uses for the ethereum platform, a lot of companies are building things on the ethereum platform, thats got a utility backing the value of the coin. Does that matter what is bitcoins utility . Is ethereum superior to bitcoin because it has that functional utility versus being a stored value . Theres a lot of fundamental differences between the two. Because, you know, bitcoin has a money supply, its a fixed number of tokens, its a proof of work. Ethereum could be proof of stake. Its a lot like gsm and cdma back in the earliest wireless days, gsm was the universal cellphone system qualcomm developed a more complicated platform which ended up being more robust ethereum is a really amazing platform, but its extremely difficult to program for so i think theres room for both tom, so i think earlier in the fall you talked about obviously allocating investable capital to this space. Where does bitcoin fit if youre somebody at home and youre going to put money into it, what percentage of it should be bitcoin i think for an investor who is new to the space, bitcoin and ethereum should be the bulk of their allocation because theyre blue chip names. Theyre going to get institutional support. The only futures you can buy are bitcoin. But for those who have spent some time, and i think if someone dedicates time, theyre going to find a lot of opportunities. And if theyre a lot more flexible, of course their percentage to bitcoin and ethereum, even to the top ten, should be a lot smaller. I think its really going to be an evolution of the atrisk appetite of the investor the bottom line is you think bitcoin and maybe ethereum will be the best performing assets for 2018 yes lets say they represent 60 of the blockchain capitalization. I think blockchain will easily be equities this year. Easily. I think bitcoin and ethereum individually will be equities this year. The aggregate blockchain should do a lot better. Tom, graded to see you. Pete, your thoughts. Its all about risk appetites. Its a matter of how much of your entire portfolio, and second of all, within these various oins, how much and how do you want to allocate it across and where you think the biggest gains are. 5 or less is the smartest way to be involved still ahead, do you want to make crypto without much risk . Dan nathan will show us how. Guys time to shine, hes at the plasma warming up to pitch the one stock he says could be a home run for investors this earnings season. The name and much more when the name and much more when fast money returns how much do you think it cost him . 100 a month . 75 . 50 . Actually, duncan got his 500,000 for under 28 a month. Less than 1 a day his secret . Selectquote. In just minutes a selectquote agent will comparison shop nearly a dozen highly rated Life Insurance companies, and give you a choice of your five best rates. Duncans wife cassie got a 750,000 policy for under 21 per month. Give your family the security it needs, at a price you can afford. Since 1985, selectquote has saved over a million families millions of dollars on Life Insurance. Welcome back to fast money. Can you feel the anticipation . Anticipation yes, it is that time of year again, we whip out the carly simon and place our bets kb home on wednesday, delta on thursday bob pisani is at the New York Stock Exchange with what to expect reporter the s p is up about 3 , its best start since 1987. Earnings season is upon us with prices and valuations at record highs, its fair to say that expectations are also very high this past quarter has been unusual. Analysts have been even more optimistic than usual. Analysts typically start optimistic and then lower earnings into the quarter. That hasnt happened in the Fourth Quarter investors are clearly hoping there will be bigger beats than usual and theyll likely punish companies with disappointing numbers, more than usual only onethird of companies will raise guidance, twothirds will lower guidance thanks to tax cuts, investors are expecting more companies to raise guidance than usual. This could be a problem because companies arent sure how tax cuts will help their earnings. Then theres buybacks and Capital Expenditures investors are expecting companies to announce some combination of more buybacks or increased Capital Expenditures thanks to tax cuts can ceo deliver on these High Expectations early returns give some cause for optimism its early, but 19 companies in the s p 500 have reported earnings so far. Oracle, carnival, fedex, carmax, constellation brands, average Earnings Growth has been 18 sales have averaged 11 growth, way above current expectations gains of 11 for earnings, 7 for revenue. If Companies Start pushing buybacks and more Capital Expenditures, its possible the rally could keep going melissa . Thanks so much, bob pisani at the nyse speaking of earnings, guy is at the plasma getting ready to pitch one stock. I am, mel, thanks for having me here, i enjoy the show, watch it all the time. Federal express has had a huge run. Years of investments, theyve been spending money hand over fist the last few years to improve efficiency, improve their hubs, and proimprove technology that will start to pay dividends in this quarter in the form of healthier margins. Online sales were good, holiday sales were good, no denying that that should filter right into federal expresss bottom line. Recently, President Trump said look at fedex, look at all the money theyre making, the u. S. Postal service, basically youre a bunch of dummies, you have to raise prices if the u. S. Postal service raises prices, it will give cover to ups and fedex to raise prices as well those three things plus valuation at 16 times forward earnings is still compelling in this environment i know fedex has run a lot but i still like it right here guy, ups versus fedex, how did you pick if he hfedex . Straight valuation. The last couple of weeks have been very good to ups pretty much for all the same reasons. But again, ups is i think a little further behind fedex in terms of infrastructure spend. They dont have the same margins that fedex has i would rather fall on the size of fedex if youre asking me to split hairs. Fedex announced bigger costs related to the tnt integration does this worry you . The tnt integration, there was that hack, obviously, with the tnt deal that was last march or april obviously theres some hiccups long ti along the way. I think people understand theyre going to be in the numbers. I think, listen, thats a one quarter thing theyll look past and then look at valuation and say, you know what, it had a huge run but its still compelling valuationwise. No more questions time to vote are you buying guys pitch on fedex, dan i am not buying the stock with guys money he makes a very good power pitch but to me fast pitch. I think youre going to get a better shot to buy it if you believe in all the good fundamentals fast pitch. How do you vote on the fast pitch, tim i vote buy, although im very puzzled why were reporting on a stock that just had earnings, not one thats coming up march im giving you time. Its guy not playing the game again, one more time great pitch, guy, youre the man. I love ups, but i agree with guy. Fedex, they all could work, buy. Do you think guy delivered on his pitch for fedex . Vote in our poll right n now cnbcfastmoney one of the Biggest Health conferences happening right now in san francisco, our own meg terrell is there standing by with the ceo of a top biotech company, meg reporter hey, mel. One of the biggest topics is the tax overhaul were talk to the ceo of a Company Whose rate is as l aows 15 after the tax overhaul, 15 after the tax overhaul, after this to improve shortter. Prevagen. The name to remember. Welcome back to fast money. The Jpmorgan Health care conference under way in san francisco. Cnbcs meg terrell is there with the ceo of regeneron reporter thanks for being here great to be here, meg reporter what are you going to do with the lower tax rate money . Its very exciting, we can have more cash, we can invested in our r d and expand manufacturing capacities to support r d. I think its great reporter you announced today some increased investments in both cancer and in your drug dupixint, cancer adding a billion dollars with the investment with sanofi thats a crowded class with a lot of drugs on the market already. How are you going to compete there may be a lot of talk in the crowd, but its pretty early going in immunooncology. Were starting to bend the curve a little bit in the fight against cancer were really still way early in the innings, i think theres a lot we can do. We have a lot of technology and biology and a great product well be submitting we think to the fda this quarter we hope it will be approved this year and we should be off to the races. Reporter if there are multiple regimens on the market competing with each other, do you compete on price you know, were a company that always feels that price should be part of the things you compete on obviously first you like to compete on the fact that you have a product where youve shown something that nobody else has. For example, this particular drug, although its in a class of these socalled pd1 blockers, were the First Company thats got data we think will be submitted to the fda for cutaneous squamous carcinoma that right there is something we can compete with reporter thinking about pricing, in the weeks leading up to this conference, we saw dozens of drugs get their prices hiked by 10 , that seems to be the new normal in this industry. Whats your philosophy on that and the way the industry is regarded because of those price hikes . Im worried when people say theyre not going to price at double digit and then they come in at 9. 5 , nobody is fooled, those are large increases, they far exceed inflation. I worry that this will provoke action by the government to try to rein these prices in, which would be really bad for the industry so im concerned about those moves. Reporter all right, len, something to watch in 2018 thanks for being here with us. That wraps it up for us, back over to you. Great work, meg, thanks guy, what do you make of it . A lot of competition in drugs, the stock is down to 350 now. This level, 350, is exactly where we stopped on the downside last year. In my world, the risk reward sets up well jim cramer did an interview with the same gentleman a few months ago, he talked about the pipeline if you believe that story, if you believe in the valuation, i think its worth a shod. More broadly, biotech bounced today. If you look at regeneron, the tax deal is very important these guys are now at a 15 to 18 effective tax rate i think thats interesting still ahead, ever wonder how you can make bitcoinlike returns without as much risk dan will show you after the break. You know whats awesome . Gigspeed internet. You know whats not awesome . When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids, and these guys, him, ah. Oh hello. That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. This isnt just a corporate survival story this is a cautionary tale, that even the most Iconic Companies most innovate to stay alive. Nice, mel i even have the same kind of hair fantastic that was almost ten years ago outside the kodak headquarters at its peak the dow take that down look at that. That should be your new twitter picture. We should find something older, actually. Youll have a twitter account for mels kodak moment back then, kodak employed 145,000 people, was worth 30 billion. Today, it joined the likes of long island and riot blockchain, announcing its launching a cryptocurrency for photographers, and the stock doubled. Talk about a bad kodak moment. Wow. If youre looking for bitcoinlike returns, you dont have to change your name, just look at options. Dan will break it down for us at the plasma all this talk about doubling is pretty speculative. We make this point a lot on fridays at 5 30, on what show, guy . Options action. I love that show, ive been on it a number of times being long premium, you have to get a lot of things right to make money, direction, magnitude, and timing. People like to do it to define their risk and for leverage. Lets talk about buying a call, making a bullish bet thats why you would buy a call. It gives you the right to buy a stock at a certain period of time, at a certain price those are the three main reasons why you would be buying a call option if youre looking to kind of look to leverage some sort of sharp move in a short period of time you know, when we think about this sort of stuff, there are not too many risk assets where you can get doubles. Thats what weve been talking about with a lot of this crypto stuff. When youre buying short data calls into events, you have the potential to do that bank of america will report earnings on january 17th the Options Market is implying about a 2 move in either direction. Today when the stock was trading at 30. 45, you could buy a 30 1 2 strike call for 30 cents that call breaks even at 31 bucks, okay . Thats when you would basically be even on next fridays expiration to the upside to get a double you need a 31 1 2, up 3. 5 thats a speculative view on a short term event in terms of the options world right now, are you more often finding yourself long calls, short calls, puts . What are you doing its a great question, pete you know obviously with volatility so low, option premiums look pretty cheap but theyre actually pretty expensive because stocks arent moving around a lot, not particularly volatile. Its a hard way to make money, even being bullish in an upward trending market. You have to get all those things right, magnitude of the move, time, and direction right. Its a tough game. Its speculative for more options action, check out the full show, friday 5 30 p. M. Eastern time are you buying guys pitch for fedex . Theres still time to vote theres still time to vote the results after this 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. You can fedex your friends to see the tony braxton number im so sorry. America has rejected guys pitch for fedex. Its awful song sour grapes final trade pete gummy bears as much as we love home depot, i still love this name, lowes had huge call buying,s going higher giddyup im with Howard Lutnick on the banks, b of a has the most im not a buyer of fedex at 257, i think you sell it here and look for an opportunity can we see that thing from mel lee in front of kodak again . No. Were going to pull it up right now. Look there she is, look at that. Thats a girl she just made black what is your final trade . Im melissa lee. Thanks for watching. Mad money starts right now mad money starts right 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. Were in orlando, florida at the icr conference look, other people want to make friends. Im just trying to make you some money. My job is not just to entertain but to educate and teach you so call me at 1800743cnbc or tweet me jimcrame