Transcripts For CNBC Fast Money 20240713

Shares dropping as much as 6 . What made this company take a turn for the worse the traders are here to break down theout look for in name and a lot of others. Were starting with retailers. That was the story certainly this morning when we were on squawk on the street at the beginning of the trading day, the etf tomahawk tracking the space falling nearly 2 . The worst day in more than a month as retail earnings kick into high gear tonight we bring you good, bad and ugly today. Wow. Sound effects and everything. Retail wreck. Lets start with the gold. Tj maxx bucking the trend closing in the green after a beat on both on the bottom line. But then there was the bad thats home depot. It did get hammered this amp missing revenue expect rations cut the 2019 Sales Forecast but the ugly, that is reserved for kohls, the shares down 19 posting the worst day in more than two years we shall also note we just got results from urban outfitters. You can see it the stock down as much as 14 in the after hurs. After reporting a miss in the top and bottom lines so of course the question today is retail paying company, or telling us something about the consumer as we head into the Christmas Season guy . David, no, no, no thats not how it works if we make it to january and i say if because in tv as you know anything can happen. Yes. But if we make it its 13 years. In the 13 years this is your Maiden Voyage Maiden Voyage on fast money. They never asked knee. Its incredible. I wanted to do is so badly. Youre the mt. Rushmore you are the god. Of course joe would be the ugly. The eli wallet i dont think it says anybody about the consumer i think its company specific. On the other side of the coin you look at nike on fire lulu lemon higher. Tjx made the alltime high 21 times forward earnings i dont think thats ridiculously expensive home depot blame strategic initiatives. But comps missed and revenue missed looking like it wants to trade back down to the august low. Although id love to say an indictment of the consumer i dont think it is. If you think about home depot, this is a company at 22 times next year. And rallied significantly into this print the comps actually i dont think were as bad as people want to make them out tp to be ultimately they finish act around a 5 comp expected for the entire quarter at 4. 6 far from a disaster. Get to the place where you think about things driving home improve appear refie and heloc and all the things coming out of the low Interest Rate environment. The same wind at the back of home depot you just have to question how much you want to pay. If you look at forward estimates for 2020, the Current Quarter in home depot. I see the down year over year earning and sales print. The first time in home depot in years. Maybe five years so maybe the guidance was a bit sand bagged. Maybe analyst moved the estimates low. But if they were to print the first down eps and sales quarter year over year that would be a seminole for retail especially in in lag. Especially when you consider how much heavy lifting the big cap large cap big box i guys have done when we think about it walmart, target, costco and home depot like my maga complex in tek. You might want to tell david about that. If you are going to be. Its not what you think. The microsoft, apple, google and amazon partner on the squuk on the treat as a phang thing. He has wac the tc. H. You dont watcher that. I do of course. But i think its important when we think about retail we know the megacap big bock are doing heavy lifting. I think there are some winners. You talk about nike, obviously big. But ralph lauren doing well. To me the kohls was the most interesting. I mean, home depot was priced for perfection or near perfection so it was only its off 5 and restate the multiple as well as the earnings beat a little light. Kohls priced for me yokerty and missed by a fair margin and hard to get excited about some of the things they say they are excited about tp and now trades at under 10 times earnings. And it doesnt its cheap but it should be cheap and i its unclear. Seems a bit of the credibility problem. Ance willing to the call talking about the promotional environment, pricely particularly in womens and what it means trying to establish momentum any did the up quarter at least a fractionally. Fraction. Not enough. I dont know what the amazon arrangement does for them. Not much in terms of traffic getting in. They talk about they are getting traffic and different customer than the normal demographic. Thats probably good but i didnt get the sense it was adding to the bottom line. Well, you know, david you asked the question posed is there some something wrong with the consumer if you look at kohls and walmart and the a answer is absolutely in the think about the housing numbers this morning reinforcing we know where the job market and wages are. Opinion with kohls you get back to the Big Box Store ridiculously competitive walmart is finally going back to beating everybody on price. There is no margin the only place they get growth in terms of the grocery business thats not a way to get excited pl kohlses was the looser of the bunch until it started to outperform and i think youre going back to relevant till performance appear value. Kohls state stays behind those two. At certain point valuations do matter. One thing i say all the time david i dont know if you agree. But never underestimate the consumer want to spend not to be confused with health to pend. I think the consumer is as strapped as theyve been in last ten years. And if you get thedown turn in the market they will stop spending on the time like we saw last october, november when we went down 20 . But in the valuations matter Carter Braxton worth you might be familiar with him he is on the par thenen. Into earnings in december, kiosko at 32 times forward numbers. Thats getting way ahead of its skis lets sfrat what the consumer might or might not do in the Holiday Season and what the stocks are doing and last night gary cohen the former economic adviser to trump asked on this program, will trump blink if we dont have progress on the trade dale on the tariffs on december 15th thats important let me tell you, you mentioned discounting. We might have an inventory issue if we saw a punch of retailers pul forward a lot of product for the Christmas Season and then if we get to december 15th deadline and dont have resolution appear the tafrgs g in the tox are going down tp ill tell you look at the xrt, up 0 ferps from a 52week low made in august when did it happen after trump mentioned the potential for these consumer tariffs. The xrt will be going lower if the tariffs come back. I would agree with that in fact the xrt trel active to the s p its underperformed by almost 20 the last couple years. 15 since the lows in august of 2018 how you measure the consumer in retail, though, ienl not sure its through the xrt but the xrt hasnt been gauging some of these things outperforming. Look at big cap tech and amazon, thats walmart. I noticed macys and nordstrom, the mallbased retailers in particular are the ones they take it out on neither one reported a number. I think we hear from macys soon but they were down 6 today. You look at the mall, look at kohls macys has to be near the new low. Macys is over 10 yield kind of extraordinary considering i mean 10 yield and the debt doesnt trade like its in distress at all. There is some giant discounting. Did you see terrie lund green the former ceo of nordstroms when he left there he was loaded up long macys he but he bought walmart, costco and target. He said he did have enough macy. Speaking of wrrmt and sticking with retail we heard from one of the worlds biggest retailers. Walmart Ceo Doug Mcmillon is a said not everything is moving 00 online check out what he told the panel at the evolve event. Im really confident they want stores because we see the evidence of that but a few years ago there were a lot of voices inside the company questioning everything and so we didnt go into it saying our purpose in life to prove that stores part of the future we didnt. We started with how do customers want to be served. It turns out the stores enup playing an Important Role in the process especially with fresh and perishable foods and things buying in big baskets all the time. Made in the point karen in the past he had time to fix things at walmart because he has the family in there as the large shareholder. He doesnt have to worry about anybody else coming in and pressuring him they have done a lot there in terms of online obviously. The jet acquisition and moving from there and in the stores as well. I was skeptical of the jet acquisition when they did it and the whole push bay everything was it binobo. Cart 2 whatever that means. Buying willy nily with you he has done an extraordinary job. And he had a lot of money to be able to do it. I mean, theyre competing head to head. And i mean, they seem to have the great momentum process the stock a little bit expensive. I own target hopefully on the same trajectory but a little more fair priced the best thing that happened to the stock is they threw the hat in a big way into online and they had to. But theyre almost getting some bit of an amazon multiple. Theyre not even close im saying to get the benefit of hey, were in a growth part of the business and relative to the core business this is showing 30 growth, thats is something the stock has been rewarded on i would repeat that walmarts growth in groceries, a losing business for them, its getting people in the stores and thats great but in terms of comps its not pushing them over the edge. Real quick, 67 Earnings Growth doesnt make sense. You say for the last 20 into stock. And youve been wrng as a certain point it matters. Target might be tomorrow. How can you have the conversation and not mention that amazon is down 13 from the highs over the summer when you think of the maga complex trading at all time highs this week alone. For what. For the rest of retail. Because amazon was the darling, the ones forcing the change over at walmart and target to your point before as wet aws becomes a smaller percentage of sales they rely on just what they can do, how they can flex in retail. We know oneday shipping has been a tax. Theyre in an investment cycle gwen which investors sort of yeah. The multiple diversion, guy interesting in retail pl kohls at 10 piems pops costco oh 32 times. Target self what are you supposed to do the higher multiple stocks are the ones you want to own. Until you dont you know how fast remember under armour everyone wanted it at a certain multiple when multiples matter get out of the way. Because things go further down than people give them credit for in my opinion. All right well hear more from the walmart Ceo Doug Mcmillon tomorrow on squawk box. No kidding see what you learn here 7 30 a. M. Eastern. Youll be watching that closely. I will. Morehead nds for boeing federal regulators calling for big changes to the companys planes full details ahead and later, hanging up on at t. Were take you inside one analyst call that did send the stock you see down 4 today. Live from times square it is in new york city im told ne rhthee is a lot more fast moyig aad people talking for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. When i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. Not much, how about you . Are you answering my text in person . I am. Yeah. Lol. Come on in. This is tech that helps you be there. The nissan altima. Now offering the most techadvanced engine in its class. Now offering the most techadvanced people talking for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Welcome back to fast money. The hits just keep coming for boeing federal regulators now calling for redesign of one of the companys most popular planes. We go to phil lebeau to him for all things that move anything that moves phil it tells us whats going on hi, phil. Hey, david, in the headline risk area for boeing right now and any time you see headlines saying the 737 needs to be redesigned thats why you see the stock sell off sharply after the headline today here is what this is about the ntsb issued the final report involving an incident where there was an uncontrolled engine failure on a Southwest Airlines flight back in april of 2018 you may remember a banker partially sucked out of a wend who later died when they came down and landed safely they inspected engine what they discovered is the engines should be redesigned the inlet should be redesigned, the goal, to prevent uncontrolled engine failure in the future boeing issued a statement after the ntsb report saying boeing is committed to working closely with the f. A. Chl a, Engine Manufacturers and industry stake hoerlds to implement enhancements addressing the ntsbs safety recommendations. By the way, this is a recommendation the ntsb is not a Regulatory Agency its not like they have teeth they can put behind the recommendations but ultimately the f. A. A. Will work with boeing about 7,000, 737 ng thats those built prior to the max thats how impacted by the recommendations. Bit, any expect to have modifications put in place over time that will address the concerns as you look at g. E. Making the engines as part of a joint venture with saffron out of france and southwest there was a recommendation in the report for southwest not a lot of movement on those stocks, david. But the bottom line is these planes are not being brought down any will continue to fly and the recommendations will be implemented over the course of lets say six months to a year, year and a half. Ultimately the fixes go in on the engines to minimize the inlet there. Phil, if it were not for the 737 max would we be paying attention to a story like this well, because it was an incident in which a passenger died, yes it would get attention. Do i think there would be a. O selloff if not the 737, no when the stock went down early today as i immediately called people in washington and boeing appear g. E. Who was clear. You hate to say a standard ntsb report any looked at it and said these are the recommendations these planes will continue to play its not that theyve unsafe you hit on the point if its not the 737 does it get as much attention . Probably not. Phil, thank you phil lebeau joining us this evening. You bet. Of course in l. A. A bit earlier. Lets talk boeing and trade boeing what are your thoughts on this. Im long boeing as we pointed out i wont repeat the news i think this is significant news for a company in the cross hairs. But the most important for the company is what they announced a woke ago which is their time line until whoever sings, its not back online. But early 2020 is what the market now expects from this company. And if you think about that dynamic it allows them to get back to a production schedule which could have them at 80 planes by the end of the year which i think leaving aside all other noise is what the stock is following. I think there is too much headline risk. 375 is a revel back in march stock went from 440 to 375 pretty much in a Straight Line thats where we traded up to seemingly failed again i think it goes lower. I mean, theyll start grounding boeing planes if there is not enough johnny walk are barak in the little cart parts that they bring down the aisle because thats the type of microep scope i think theyre under. Any agency. Have you been serve upon an airplane. I dont drink on planes and youve flown with me before. Sounds like. My point is tlch there is too much headline risk and agencies getting saying something negative i think you avoid the stock i think it goes lower. Let me push back a little it seems the stock absorbs bad news better and better each time we seed about news i dont think this qualifies as overly bad news. But it seems to have weathered a number of terribles hearings this is the worst years for a corporation you could have imagine and assistant still up 14 . Somewhat impevuous. The benefit of a duopoly. Two things can happen that a the schedule gets pushed up and b maybe lose the ceo those are two things. That may not be seen as negative at this point. Unless that theys just promote somebody internally who has been there 25 years or something. I guess that its you know, like to davids point, the stock up 14 346 people died in two crashes in the last 18 months on their planes you know there was a headline about the f. A. Chl a chief thinking about taking a holist he can approach to the approvals rather than letting the airline makers do the i think that yes the stock is resilient yes a lot of people are thinking about the loss of earnings this year you get back up to the production level of the max in 2020, get that back and the cash flow going and then its a cheap stock in that regard. But i think there are a couple of headlines. Really quickly there is a capacity issue for airlines to think about. People are not estimating that the Capacity Growth that you have seen in airlines over the years that people are so concerned for this sector, this really helping them. You have a may have a bad line coming up next year. You can read more about the boeing on the website. Cnbc. Com and more on fast money as well heres whats coming up next. Announcer time to take cover. Why one top wall street analyst says the record really could be come to an end and later its our call of the day. Well tell you what sent shares of at t tumbling arndk ou fast money is back right after this well back to fast money. It was a mixed bag for the markets today. The nasdaq set a new alltime high with you the s p fell short of a record of its own. And the dow down triple digits the next guest says the record run on wall street running out of steam lets bring in chris harvey. Last on fast money in september and he said then that equities were headed higher. And he was right the s p up 4 since that call. Of course the question is, where do we go from here welcome back, chris nice to have. You good to be back. Why are we running out of steam. Were running out of steam a couple of reasons. We talk about the wall of worry. Now we see the top of the wall of worry but most more importantly you are playing for limitinged upside and growing downside our price target is 30. 88. About 1 away from that. Once he get there were not saying were out but what we want to see is people more optimistic and bullish. See the bears cap it lit other than dan we have seen that in spades. So now what were looking for is were doing it piecemeal in Early September upgraded banks. Now what with he say is if you havent gotten in banks you want to wait. Because he expect underperformance in the short term wove been all over the semi trade a few months now we are getting less enthusiastic at this point in time lastly looking at trade and tariff, trump has a history of when the market is high things good for him to press bets a little bit and i dont think thats priced into the market just yet. Thats the wall of worry are those the main ones or Something Else you missed. No, no, that that pretty much covering everything at this point in time. Chris, there is to me all the dahm where the stealth easing the fed is has there is 2807 more op the Balance Sheet than six weeks, eight weeks ago. How much of is that is a sugar high or stays with us . I dont think they can unwoind that any time soon backup but that to me has been an equity bonanza. Right you had the fed cutting rates and flooding the market with liquidity. And you had Bank Earnings better than expected. Rurite its going to be with us some period of time which is why the market grinds higher but you cant bet longer term. Looking to 2020, 2011, 2022 what you should expect from the Capital Markets are pedestrianlike returns and single digit returns but right now were talking about the meltup, bears capitulating more upside. But the risk reward doesnt look attract disbelieve talking about the riskreward if you think there is a china deal and is it already priced anything left for that. We think most if not all is priced in at this point in time. This is different than tax reform with tax reform once you got that you could say eps numbers go x higher and then price that in here what with with we talk about is some ag being done. As we go down the road weve been talking about ip and Market Access the problem is that chinese have a built in excuse. Were investigating big tech at this point in time the chinese excuse is you guys dont trust big tech why should we trust it . Why would open the market to you . In the shortterm i think we got something on the table much priced in. But longer term its more difficult to get material amount of trading tariff goods on the table. And what if we dont. What if december 15th comes, the tariffs actually go up and new ones go on, and there is no deal its not a pretty story which is why we say take money off the table and conservativively position the look for opportunities to derisk the portfolio at this point. Where are you on yields obviously earlier in the year with the 10year treasure treasury going back to one year lows let eye of traders like there. But we had the bounce to 1. 95. Here we are at 1. 78. If they go back down what does that mean for equities. Its more of a riskon environment. We should see equities be a bit more challenged. Multiples should be compressed and start to see more of your low vol trades work out. Start to see the high growth workout and start to see value rollover but more importantly the market will rollover. Chris, thanks for joining us. Thank you. Guy, what do you make of the market right now in terms of where it stands to the china pinpoint, the china trade deal i find it surprising perhaps that we havent given up more with the headlines lately. Yesterday eunice yuan reporting that chinese officials are saying we may stand back and see z what happens yet we are going higher. Im shocked i thought if you told me that news the night before i would say the s p down 35, 40 handles. And then gary cohen talks about the president will not flirj on december 15th. Which i agree. I dont think were closing to a deal than back in march. But the market doesnt seem to care im shocked the vix has a 13 handle and the s p at alltime high quickly though, the russell measured which iwm that topped in august 203. The russell telling a dinner than pan the broad are market. The 160 level in the iwm i think it turns lower i think what there is a bull market appear bubble in is absolutely in complacency in my opinion. Ill mention, that im the last bull to capitulate there, harvey when he mentioned. Did you call yourself a bull. Whatever. The upshot is, at late 17 after we had the tax cut we saw the market explode it seemed like everyone throwing caution to the wind. We spent nine months after that in Milling Around here not making any progress. Then they went become and made a new high and dropped 20 in late 2018 so, you know, at the end of the day i think the complacent markets guy mentioned vix at 13, people not pricing any risk to a nondeal happening, sets up when you are at alltime highs for the corrections. I think a lot of bullish strategists are suggesting that we might see that bullback to 2,800 in q1. Still ahead here big biotech breakout making this stock the best performing initial Public Offering of the year well tell you the name. Thats straight ahead. Plus at t down over 4 on the downgrade. What has one analyst happening up on the stock . Stick around we have a lot more come your way. E. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. We believe in education built for all people. , [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Welcome back to fast money. Check out this move in Karuna Therapeutics up more than 34 today the thats not the big move is that right in 650 in the last week. Yeah. Sometimes the moves man in these are incredible why . Successful trial results for a schizophrenia drug backup they went public in june. Its the expect performing ipo of the year. Guy, you flagged this stock good for you. Good if i flagged it a week ago good for me but we talked about the last couple days just put going in perspective, this is not a small company. I mean the market cap now north about 1. 5 billion maybe closing on two priced three now priced a secondary yesterday a 2. 1 million share secondary after the close. Stock closed at 96 tip typically would have been detrimental up next today another 30 im not telling you to run out and boy it because thats not what he here for. But i think it points out there is still opportunity and opportunity in biotech you look at a company like am again equitily making alltime high was a reasonable valuation. I think people have gotten scared of the space because of all the political rhetoric but you see the name like this and other names getting the mojo back, this space is still viable. Lets say you owned it going into the last week, karuna. As he said this you got to take the money and run. Steve miller band. Thats a miserable tong. Big cap pek tech big cap biotech. You are they are running out and buying the ibb boy again, am again, enco, gilead, a massive underperform he were a long time is up 17 in the last 35 sessions thap that which has valuations great Balance Sheets and maybe catalyst peek are looking at. You did have that really Important News from biogen when they revisited the trial results that certainly helped. Lets move from biotech to Big Technology qualcomm dropping 3 the company held the analyst day first one in a number of years our own john fortt sat down exclusive with qualcomm ceo steve malen coumalen cost. Getting away from regulatory issues, getting away from the lawsuits, the scuffle with apple, really they want to talk about 5g and i asked him the trajectory whats it like when are investors really feeling the bulk of the benefits here is what he said you really have to see it the next two quarters. If you look at the last Earnings Call we gave a restraining guide for the licensing business, which it sits as a pros proxy for the Christmas Season selling. Then we gave a soft indication of what we thought the march quarter would be, which essentially said you are seeing fiefrg compacting the product business at that time. And it will come in two phases during the calendar year then after that you see things like the industrial internet of things you see flexible factories thats not coming for a couple of years once the cycle has worked out they have standards locked in place. Knew versions of 5g. Sul ee factories getting 5g to be able to move equipment around qualcomm tried later in the program to nail down numbers one interesting one has to do with how much of the revenue is coming from the phone side of the business and how much is coming from other platforms like automotive, like iot they broke out 3. 4 billion in other platforms, 11. 3 billion in the phone making the argument the other part of the business, other platforms is a real important growth area going forward. If you looking at qualcomm as a stock i think there are four things to question yourself about. What do you think happens with huawei longterm right now huawei is not paying they are a kpet her. What happens with the ftc issue cropping up early 2020 apple has intel mod embusiness you have to imagine they want to build their own 5g but qualcomm is argoing they do better than apple and apple has to buy us from eventually. And then how fast can qualcomm move to autos. And will the automotivive industry adopt the technology . Because thats a big part of the business they argue processor for for growth. And expedia was going to be a big art. A nxp moving up quite a bit but qualcomm saying we dont need them. Look at the size of our automotivive business on our own were at scale 3. 4 billion theyre going to be at the Electronics Show telling what they can do or thin own. As they diversify away from smartphones, and see a better margin business . Thats a high are margin business for them. Therapy not put going that way. In fact they argue that in 5g because they have more i. P. In the phone they are doing better in phones because of 5g. But they are saying the other businesses are phonelike in the technology that they are building into them people arent necessarily buying new cars every two, two and a half years with smartphones in their heyday but when you look at autos and iot. Theyre not trying to not make a big deal ou the of the devices like a superiorities pro x which has the qualcomm chip. But they say as we move to the cloud and the intelligence edge as we work with the cloud is working to our advantage and displace the p. C. Stahl warts a little bit entertain of things they keep talking about is a big opportunity. Its interesting, the stock ended down today im not sure what the expectations were going into. Stock. Stock was trading at 19year highs heading into this. When you think about it, you mentioned about the nxpi deal david. If you think about the Semi Conductor stock on the planet what did they engage in . M. And ap thats how they diversified how did intel into mobile they bought mobilite and iot alterrap theyve been messing around with regulatory issues and all this stuff. And you know, over the last five years their sales went from 26 billion to 19. 5. And next year is the first year to show growth thats one of the reasons investors might be excited but john laid out a host of 2020 issues they might have with the stock again at 19year highs including the Competitive Landscape how long will huawei be sidelined . A as they talk about the portfolio having end to end components that seems to be what they want to talk about, thats the area of differentiation and competitive advantage. They do pan in way the wireless story is like the story apple try to tell in devices they put. The slide at analysts showing intels 4 g. Mod emand theirs how much small are and compact it is. The 5g, theirhuawei 5g they are saying that makes a difference in cars for example even though its big you cant afford to throw off heat in the car. We are winning that deal they argue. They argue even in apples devices they win the chip business if the chip is better if you believe that maybe you got with qualcomm. Ive talked of them as being the tom brady of the legal issues. Just when you think he is down he figures out a way to come back. How are we getting flate gate into this. People argued that equal kwom is trying to tie chips to licenses thats the squishy football some would argue. China remains an important part of theirs their zblies yes, very important. Up next investors pulling the plug on at t you can see the stock down over 4 this is after one influential analyst warned that the Telecom Giant stock has gone too far too fast we will discuss that plus target stepping up to report earnings before the bell tomorrow the Options Market implies interesting moves for that retailer, particularly after we heard from a bunch this morning. Dont go anywhere we have a lot more fast money coming right at you after the break robinhood believes now is the time to do money. Without the commission fees. So, you can start investing today wherever you are even hanging with your dog. So, what are you waiting for . Download now and get your first stock on us. Robinhood. Not much, how about you . Are you answering my text in person . I am. Yeah. Lol. Come on in. This is tech that helps you be there. The nissan altima. Now offering the most techadvanced engine in its class. Thats the sound, saved. Happens all the time here. Usually guy doing it. I can if you want. Well back, by the way its time for the call of the day. Shares of at t down more than 4 after a downgrade at move at and nathanson, craig move at the analyst in question. I read the report. It was interesting he is looking at 6 of the business is direct tv, the warner media assets, talking about the fact that they put on the the 1 growth rate overall saying 40 is the wireless can be, can it grow fast enough to offset what he believes are continued declines not just as direct but also warner media he doesnt think so coming up with the 8 growth rate needed at wireless to do so. These guys move markets congrats on the impact of the report the challenge things i think people knew were out there the 60 of the business pointing out you have midsingle digits decline in the businesses. And the numbers dont add pup it means the wire line business has to grow ten times what its going to and the numbers dont make sense if you invest in at t for a div you lost it today. We always talk about on the show thats not why you should invest i am long the stock. I do think that elliotts role here is going to force change that will allow people potentially to realize this sum of the parts i do think the media business, streaming business hypothesis helps you to get to a different multiple but there is a lot to be prove stock went from 30 to 40. Thats a huge move for a name like at t over the course of the last few months. Good for them to for doing theeft its a level make it makes sense for the downgrade. And earlier to your point they move markets i can understand why you would be skeptical but in terms of the Balance Sheet theyre no where there as poor as they were for six to nine months ago. Zero rate environment for very good for this company. We talk about disney vertically here. And comcast has done the same thing, buying content that has president distribution at t was rewardrded for the making acquisition outperforming verizon. Oom of people called in question verizon the last couple years, the acquisition acquisitions they made and wrote down to nothing. At t got that benefit. I know the fmoffts guys were all over this. But even in the zero rate environment nef tons of doet, every acquisition they made. Sooner or later when the wireless business is declining the way it is. You have to think out how to manage the debt load. Thats a key question if they hit rough road in terms of expectations not coming or numbers not coming in as expected particularly for the entertainment assets they bleed subscribers but they did kait that was going to be the last quarter in terms of subscriber losses up next will target hit the mark. They report earnings before the bell tomorrow. Why the stock could stee a swing on the results we are riff at the nasdaq in , chorft remu me as money still ahead it is nice. Nice . This is the mostawarded minivan three years in a row. The van just talked. Sales guy, give em the employee price, then gimme your foot. Handsfree sliding doors, stow n go seats, man, yall getting a hook up and yall dont even work here. Pacificaaaaa to take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. What are you doing back there, junior . Since were obviously lost, im rescheduling my Xfinity Customer Service appointment. Ah, relax. I got this. Which gps are you using anyway . A Little Something called instinct. Been using it for years. Yeah, thats what im afraid of. He knows exactly where were going. My whole body is a compass. Oh boy. The my account app makes todays Xfinity Customer Service simple, easy, awesome. Not my thing. Welcome back to fast money. Huge lineup coming your way on mad money tonight. Including top exec salesforce. Ben i dont have, square, nvidia and r. H. , the Company Formerly known as restoration hard which are. R. H. Just ask r. H. Ceo, a lot of letters now about the big stake Berkshire Hathaway revealed in but they revels in it. Here is what the r. H. Ceo had to say. Like Berkshire Hathaway, you know, were building a business thats capital efficient generates significant cash flow. Enjoys a low cost to capital and generating industry leading returns. Somehow we showed up on the radar and just proud stock was a bit under pressure given the route in retail joefrl. But still up 51 this year karen give me your take on the stock. I i mean, its got a giant short interest, right . So thats sort of interesting to me that tends to push the stock when good news happens as in forced covering. I dont know, it seems expensive. I would not be short it. You wouldnt. Let oaf people are though, for sure. And they are, why whats the main. Its too expensive. The product is too expensive theyre not continuing to grow like this. They are spending a huge amount of money on stores, rirltly on the stores themselves, i dont know if youve been one to one. Ive within to one downtown with the restaurant. Its really nice. Really expense of to build and the product. Great new name though, r. H. Genius. How did they come up with that. Who would have thought. Jim has a lot of big interviews coming up at the top of the hour on mad money. Mark ben i dont have from salesforce a big one from nvidia. Tomorrow morning, brian coronell thats an exclusive. And its post earnings from the big retailer target will be looking to kick start a turn around after perhaps ray retail wreck today options traders betting target he at the least see a size lk move reporting before the bell dan nathan got up and walked to the plays that he brakes it down. There you go, dachd, the implied moved in the Options Market for just tomorrow is about 7 thats in either direction that is versus the 11 on average the stock has moved over the last four quarters today options activity was brisk. I thinko a lot had to do with the sentiment i think in retail. Total options volume is 2. 5 times average daily vol. Its important to remember will target be the imprison us to move things tarring is up 67 op the year here its important to go to the chart and look how it got here if you go back to august look at the gap that it had when it reported the q2 earnings better than expected comps, better than expected online sales. The stock broke out to new highs. Whats interesting is the last three months the stock held the gap really nicely. Thats a very nice base there. But its kind of up there in the middle of no where i think its important to go back five years and lets just see, this stock had been basing in in levels in the 807, 90 range then you had the gap i suspect that area is a significant point of Technical Support for the time being that being said, when you are looking at some of these stocks, you know, this is up, you know, 67 on the yaoer, trading 18 times. That doesnt seem expense toef walmart at 24 or costco at 35 times. Its expense to have hagertys history. The slightest bit of downgrade to the outlook they raised in august, i think the stock moves back towards about 100 here, filling in not the gap but filling in at least a bit of the move that we have seen since late august. One last thing, david faber, you know the restaurants on rh thats the port charles prime rib thats the burger you like so well. No its not its a big restaurant. Its in the same family. The same chef. He knows all the action including the options action. By the way, tune in to the live. Ow this friday, 5 30 p. M eastern time up next final trades announcer options action sponsored by think or swim by Td Ameritrade by the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Im a regular in my neighborhood. Im a regular at my local coffee shop and my local barber shop. When you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Noerp powerhouse saf frchlt fran im checking in with mark ben i dont have and circle back to square. And Nvidia Jensen wongp mad money is next. Announcer final trade sponsored by Interactive Broker minimize cost maximize return. No time for time trades because nagtsen went through his plays. Mchld with jim cramer. Thank you, david. Starts right now. My mission is sim, to make you money. Im here to level the playing feefld for all investors there is always a bull market somewhere. And i promise to help you find it mad money starts welcome to a west coast cramer takeover other people want to make friends. Im out here to nake make you some money my job isnt just to entertain but to teach you call me at 1800743cnbc