Transcripts For CNBC Fast Money 20240713

By the Options Market is betting on the bounce for one home depot. We start with the big countdown. And no. Which one is that. Hold on its not the countdown until friday its not the countdown until christmas. I hear i hear sleighing bells. They mixed ut santa with the record we are 18 days away from the next round of tariffs kicking in we heard today from two retailers today with two different takes on the looming levies dollar tree tanking after cutting guidance due to what else, tariffs, among other things best buy, though, it soared. Raised the outlook saying the impact of the tariffs has been factored in and dealt with so really with all due respect to dickens it was the best of times. It was the worst of times. Its a tale, guy adami of two retailers. I see what you did there. What story are you buying. Would you rather almost. First of all, i find it welcome. Welcome to breyen welcome to brayen. He is playing hurt tonight if you listen to his voice. Its grim its grim. But youre here. Thank you not by choice. We are we always have a choice. Literally everyone else is off. I dont think dollar tree doesnt say anything about the consumer i dont think best buy says anything about the consumer necessarily. It says about how they sort of have situated themselves in the environment we find ourselves in dollar tree blaming tariffs to me is the its tariffs are the new weather. Doesnt work anymore. I agree. Other retailers seems to figure it out. Even nordstroms which did well best buy which has done well target has been on fire. So i think the stock the companies not performing are being punished correctly and i dont think you want to buy these names necessarily. I think you are very right. Because and my number i mab io a bit off but the guidance miss was 27 cents but only 6 cents of that were the tariffs you have 21 cents, dan of other problems. This morning Steve Liesman interviewed the dallas fed chair kaplan talking about q4 gdp and one of the issues we see if these tariffs you just said were 18 days away from that who knows if he if they come in owner. The issue is how promotional the retailers will be and what sort of vrpting they have heading to 2020 what does the tariffs situation look like . Because remember this is an important quarter for retailers and the rest could turn to disaster ill mention the dpchlt rt, the etf tracking the retail secretary sr. Only up 10 on the year with he flo he like megacap tech, the shall major big box have been doing heavy lifting. Picking it. Yeah. Its a great point. Consumer confidence with four months in a row we havent been really knocking the cover off the ball on confidence whatever you want to do with that because its a lagging indicate are jobless claims if we watch the consumer and worried about the consumer then get back to best buy. Id watch that two straight weeks next week watch that the peak labor something to watch. But back to best buy these guys with conservative. They beat the 2 comps u. S. And global better than expected slightly. For people conservative and with a Holiday Season with a six peak shopping days less than expected this was very, very strong insight into the consumer. Lets be clear where are they going on discretionary items . Walking in best buy and buying you know, karen this makes me think more and more like jim cranium sr. Talking about. Everybody wants the etfs buy the market dont worry about the stocks in this environment we aeltz when you have to be good at the job. Stocks matter because management matters. People like best buy guying figure to do out and some vice president. And were were doing this if you buy a basket to dans point youre not doing that well. Youre in the middle where. If you think you can do better injury youre right. The consumer is alive but not shopping everywhere. They are shopping where its interesting to them where or good value or exciting store look at target, right, fantastic. You look at Something Like a nordstrom versus a macys. Ms. Ds cant get it together but nordstroms seems to find its which. Dillard was too, kohls the opposite its not the consumer. Dollar tree has other issues its labor but i think there are winners and losers and i mean best buy is fascinating to me. This was left for dead for so many reasons amazon being one, consumer being another. A new ceo seems to do a great job. Really impressive. The pe multiple here for best buy is its not crazy expensive. But for its zblef but for itself its getting rich. I want to make one point about that because you said they got it right still 25sfers pr the all the alltime highs in 2016 its down. It did have the massive update today. The multiple getting rich to the history with no growth in sight. S in a local single digit grower for life when you think about the main story here about retail and one of the reasons why amazon is stuck in the mud and see amazon has caused everybody to deliver what you think you want yesterday. Right . And that cost associated with that has been a huge tax on a lot of people. Then you get to the tariffs now, sooner or later the retailers are figuring out whether they pass it or absorb a lot of it too. This is as good as it gets right now for a lot of the retail zblaers you have to say that about target and walmart. Because theyve done the same thing pch backup best buy up 53 this year. Its been a safe haven i was wrong on best buy six months ago thinking they were at poster child. Why. Because of tariffs. Here is where with youll you a due respect. About to insult me. Here we go. Here we go. The whamy. No whammy here we go go. Im rayed. I feel like what people missed with best buy is that the price of a flat panel was three grand five years ago same tv today is 1500. Justs because of moores law on Technology Even adding the tariff best buys arent they in the environment where price deflation is the norm they are. But think of the competition from amazon and every other person in walmart and every other flat screen maker. The good news for best buy you got the best the are preview into best buy when you saw the apple outperform look at samsung. Its a chip play as much as a hardware play. Backup but there are other ways to see the strength of the consumer leading into the best buy number i think its career. The person typically in the seat melissa lee,s poster child for somebody use be best bias a showroom and goes home to the comfort of her home and on the amazon i thought that was you. I dont buy online. No, no. She is like that meme with the guy and girl and the other girl where they look and Holding Hands and he is looking back. The meme, i have seen that. Quickly you want a stock. Looking back is amazon Holding Hands is best buy. Dollar tree was the disaster. Dicks sports goods. Up 6 twice what the street looking for. Operating margin 3. 2 . 2. 5 is what the street was looking for. This was a fantastic quarter when you talk about a stock with a 30 Short Interest people say thats the end i think there is further up sfd. So lessons for the audience and listeners and viewers. You guys do it so well dont nod dan. A year and a half uts not political statement. Dicks sporting goods. Amazon was going to kill. Dicks are going to stop selling assault style rivals people said say hekd amendment, they said, no with, no. Guess what, the stock up 50 since that announcement. Im not saying its good or bad. What im saying the conventional wisdom on what dicks said was wrong. On tariffs on best buy was wrong. Youve got to dig through the numbers. I think it gets back to what you are saying dicks best buy are great examples of Companies Facing the secular headwind and being amazoned what can you buy at dicks you want to see whats going on. You want to throw a football in the story like guy does. Sure you do. What you have seen brian you have seen the separation of companies adapting and caning. Youve been seeing walmart given more of a call it a. Com multiple baups of online you see what target is doing and how theyve increased online sales. Those companies able to lower expenses and actually grow that part of the business are being rewarded and trading at a high are multiple. Betting on management karen in a way. Betting on people. I think sometimes you have been in the business and doesnt matter howed good the manager is if the business is bad best buy we see. Bed bath and beyond see if neck survive. Target up 92 this year almost doubled well if you are worried about another round of tariffs hitting the portfolio you might be better off parking money at home apparently with melissa lee trolling amazon right now or lets go off the charts with chris veren with strategyis. Small caps one of the neglected areas of the market finally getting involved a year to date of the russell 2000 lets set the Playing Field. We spent the entire year in a well defined range, this is 150point range, 1,600 on the highside 1450 on the low side skrus starting to wreck out here finally playing catchup with large caps this projects about 10 higher, 1750 on 1775 on the russell 2000 we had four corrections down 8 . Down 10, down 7 we have spent the year range bound. We have just broken out. I think its too soon to fade this particularly when you put it in context of the longer term picture here we had an 80 up move off the 2016 lows. Then you know what, last year a bear market in small caps. Small down 27 high to low. We ricochetted off the low spent the year in a range. Just breaking out. One thing we looked at with the 52week high in the russell 2000 this week. When youve got more than a year without making one and then the make the high, the forward performance every oh the next 12 months is universally historically very, very strong there were 12 examples of this 11 positive 12 months forward. We think we have history on our side here. I think the big question is, do small caps present a better case versus large what we want to look here on the score is small relative to large. There is some indication that were finally starting to see some base in here. In relative terms at worst they are keeping up, at best maybe some outperformance. You know if you think about what comprises the russell 2000, you have to go where the weights are. Its a railroad concentrated index. 10 of russell two are banks another the eight the biotech. Another seven software the three largest banks. We like the banks among the small we think the biotechs are Getting Better own the small caps here. Theyve broken out. Chris, why dont you come over to the desk well talk more about this small guy you saw you jess tick lating. Have you met will our intern. He does a fantastic job. Will has done great will thinks he is getting home tomorrow night well see you back here in new york thanksgiving morning. Welcome to come to new jersey. Are you a bayer of the small caps. Chris makes a great point he says breaking out and probably rate. As dan mentioned last night on fast money at 5 00, the 161. 5. Level in the iwm the, the same high back in may. Were on the cusp of breakout. I think whats happening, the russell is now catching up to the s p 500. The alltime high made back in august of last year around 173 tim asked how much room is left. I think the answer in iwm it 7. 5 . It a catchup trade or rotation where you see with staent sustained and make the run at the plier prior highs i think this is a cycle dom flated by big cap stocks but this is the time of year looking for neglected areas havent played ball all year and small caps satisfy that. When you look what comprises if. Banks, health care, two corners of the market Getting Better i would note participation is getting broader. You have more small caps above the 200day moving average at any point than two years ago we have seen the broadening out, the leadership getting in gear its positive. Do you feel more stroppingly about the relative valuation of small versus small caps or the you upward trend has to be both. I think the trouble with valuation here is money is still free 10year yields at 1. 75 in the environment where the kwoft of ka capital is zero tp using the valuation isnt effective. Im making the trend call not vast call. Watching the smaup caps see if they can catch up the news orlt on the boeing 737 max lets find out whats going on phil. The faa out with a statement just released regarding the certification or recertification and issuance of an airworthiness dreskt lifting the grounding of 737 maxs the statement is the latest move by the fa. A to push back against boeing and the suggestion that the 737 max will be recertified in december and potentially back in service by the end of january. Without coming out and saying it explicitly in this statement from the f a. A, nef essentially said that, look, we retain full control over the recertification of the max and issuance of airworthiness directives lifting the grounding of the maxs built and grounded while they work on the fix. It sends with this statement the faa has not completed its review of the 737 max design aircraft changes and associated Pilot Training the agency will not approve the aircraft to return to service until it has kplut completed numerous right now rounds of rigorous testing thats important because they are no where close. There are a number of hurdles to be cleared including a certification flight, report on the certification flate. They have a couple of reports from committees set up with Public Comment periods without coming out and saying the f. A. A said this plane its unlikely its recertified by the end of the year. So now were definitely i dont want to say definitely but looking at 2020. Phil youve been reporting on this as well as anybody. We keep going with this. At some point the planes are sitting there, aging i assume being maintained. With you at some point you get to where the owners dont want them become or nerm this is your problem. I dont think well get to the point where they say take them back were not flying they believe they will will be in service i think the faa believes that as well but its clear in the last two weeks. Take this statement and the memo that the head of the faa wrote to the person in charge of the recertification process, you take his video statement to his employees saying, were in charge, theyre not in charge. This is as clear as it can be to boeing management, knock off the predictions that this plane will be recertified any time soon the fa a is mcdaniel adamant is controls the fifl its karen let me ask you something. Do you think we are not hearing anything from boeing about the recertification any time soon. I bet you what we hear is a short statement saying we respect the process, the role of the regulators and working with the regulators and lacking forward to the plane being returned to service. I bet you thats what we see the last time they came out a statement saying we expect it to be recertified in daes, what was that november 11th since then we heard from the fa. A three times. And all three they said we make that decision not sfwlu i want to ask you this quick question is it unfair to say we are moving backwards with you fair to say we are not moving far forwards. I think its more accurate to say were not moving forward as fast as boeing would hope. Thats accurate. Its not moving backwards. They are going to certificate in plane likely by after the dpleer, maybe by the ebb of january. Its not something open ended. But at the same time, the fa a is clearly sending a message. It is fifl, thank you very much, buddy. Breg news guy adami. S in yes, sir. This is important story two tragic accidents a lot of consumers watching its the most important stock in the dow. I know professions dont look at the dow. Highest priced stock in the dow it matters. It does when you go back in march at 440 the bottom was 375 here we are at 375 you sell the stock at 375 thats where it failed a number of times. And looks like its failing again. What the fa. A is saying, no, no, boeing you dont tell us the jb well tell you when the planes are ready. Of course they have to say this and of course under the microscope right now. The boeing came out november 10th or 12th and said five conditions we have to satisfy and four of them were not there on, including training that phil talked about which i think is probably the one with the rungest tail on it of uncertainty. I dont think there is in any new news ultimately the company is very conservative the strate has had some ability to begin to model 2020 tlaefrs for 2020 the. Stack still up 15 for the year are you surprised by that, tim. No, im not im long the stock certainly speaking from a perspective i feel comfortable with the process here, even despite the tragedy. I think no one has expectations they are coming to market faster than expected. Good stuff and breg news from phil and boeing. Major developments if in the opioid epidemic. The stocks tumbling today. By far the worst performing sector of the year but could something happening next week finally change oils terrible, no good, very bad 2019 we are live from times square. Much more fast money right after this 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 welcome back to fast money. We are following a with it developing story in the opioid maker. The wall street journal reporting frl prosecutorers opened up a criminal probe into a number of companies. Lets get to meg tyrell at cnbc hq. These companies are facing thousands of lawsuit over the role in the opioid crisis. This may be another case of a nesting headline rattling stocks we new the drue makers received subpoenas from u. S. Attorneys concerning the cbss act, the johnson johnson, teva and drug company side and amer source bergen and mckesson of the distributors the journal recorded that the prosecutors opened the criminal investigation into drug companies. The journal reported its normally used to go after drug dealers. Bernie gou said he was surprised the stocks were moving charply slower criminal prosecutions would be another thing. He said the probe is it in the early stanls but buoyanted out the stocks recovered a quite a bit over the last month on potential expected relief in the lawsuits, particularly teva. Some Companies Reached a tentative settlement framework over the litigation but not all states are onboard meanwhile Purdue Pharma continues through bankruptcy to go to get state ags contingent on doj probes. And new york case against multiple companies is scheduled for trial early next year unless there is a the settlement. The another remind he were the saga is far from over for the companies. Brian. Meg tyrell, thank you very much. Guys these are big names. The stocks hit today but this is an issue talking about a criminal probe not a civil the case talking about criminal charges here, guy. The headline risk is significant. Mckesson for example its done this a number of times in the last six month 130, 155, back to 130, back to 155 probably headed back down to the 135 level. You trade these dont own them because thats not the environment we find ourselves. People say mckesson is cheap s it but the headline too severe down 7 my sense there is further room down. But at a 135 level i think you close your eyes and buy it again. If you think it about it j j those the movie diversified and biggest biggest Balance Sheet and rallied on the small state settlements in terms of civil charges. If you think about the headline fliing in the face of frankly on Janzen Johnson a handful of fronds you dont have to run in and buy it but you have a dynamic with a company thats made it clear there are places where they think where its worth selling and places they dig in hard and ultimately we have seen this Balance Sheet as a rallying kroi for the stock during difficult times. I think this well insulated around here and very unclear federal, criminal environment. You have teva down 54 in the year amniol down 83. You remember isncis. Filed for bankruptcy in jun. Stock went to zero they were more of a biotech based arizona. The point im trying to make is, karen, i wonder you dont know where these go this is a National Crisis were talking about criminal charges any reason to own any of them that circumstance . I guess if i had to own one, i would go down j j. So many other businesses. So many other businesses and they can afford it, right . The Balance Sheet as tim was talking about is the best shape of any but i dont think you need to to i dont know why you need to i dont know why uvtd chase them. For more on the investigation opioid makers head to the website cnbc. Com in the meantime here is what else is coming up on fast. Announcer energy is one of the most hated plays the year. But will things change. Later diechg into disney plus how the subscription added 15 million useners two weeks and what it means for three st of the stream world that and more on fast money when we come back. Sundown vitamins are all nongmo, made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. 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. All right welcome back to fast money. Its been shall wecy, a difficult year for oil and oil stocks i would say underperforming the Broader Market by 50 the definition of a tough year but could next week change that . Opec holds a production meeting in austria aramco expected to price the megaipo, the first opec meeting where the king of saudi arabias son comes in as the Energy Minister our head of commodity strategy at rbc you have the kings son the Energy Minister, the aramco ipo pricing. And youve got by the way this is i think this is the greatest irony of all. A u. S. Oil and gas industry who hated opec 40 years may now need opec. Its the phone of friends you have u. S. Shale producers watching opec meetings to see if they get the lieflen from the organization it looks like its set up they will roll over the agreement a 1. 2 million barrel a day production cut, kick did out to june but there is not much appetite to go deeper and give the life boat to shale. The reason i say that is because weve been talking about the debt threat, hundreds of billions due 55, 57 a barrel not cutting it does opec have the power to rescue the u. S. Oil and gas. I think of secretary general he at a talked about the forecast for slowing shale growth shaying the macropicture may not be as bad as expected. All that looks like the setup for is rolling over. But they dont want to give pennsylvania huge life line to shale. I think theyre prepared to tread wert, working behind the scenes, the Saudi Oil Minister with a veteran been at all the meetings over three decades in the industry. He is the ultimate behind the scenes diplomat. He will put his footed on the neck of the errant producers saying get it together he doesnt want saudi to do more than everyone else everyone carries their weight. Thats how they get it done. But i dont think theyre giving the permian producers a lot of hope that opec will be there to help them out. If you think about the geopolitics of oil right now, who really is holding the powers its still opec this is the same kind of topic at one point it felt as if u. S. Nonconventional had the ability to be the swing producer end of the day, saudi only one out there. With Spare Capacity only one. Thats why everyone was concerned on september 14th with the devastating attacks on the kingdom. Because the only Company Bring going on with Surge Capacity is saudi arabia everybody watches their policy and thats going why you have Oil Producers closely invested in the opec. Even though President Trump is critical of the organization, that floor has been a life line for producers. The integrated names had difficulties exxon mobil, the 68 level is potter im not asking to play stock market pu the integrated names are they in trouble in this environment to brians point about being underperformers he is . He didnt talk about death crosses and those. But there is a lot on the line. Its a challenging price environment. But i think there is an existential issue on the market as well. What does the future look like for oil demand what does it look like for electric vehicles . Its an industry faced relentless criticism this year from environmental activists you saw the oilen a money meeting. They were shutting down streets of london. The industry feels under siege and all the discussion is about esg and where does the monies fit in in that universe . Its a price issue but i think there is a broader question on the outlook for the industry. The outlook for the stocks. Youre not an equity. You the average balkan nlt whiting oassist nornt continental. En a look at cannabis stocks. Nestigative 57 the entire market cap of the u. S. Oil and gas is 1. 28 trillion. Aramco market cap is 1. 6 the entire u. S. Is worth 4 oh oh million less than one company because of debt. This is of an interesting question i bring sitcom back to opec the producer in the middle east keep saying we are winning the Energy Transition because the last barrel of oil is produced from the middle east this is the lowcost oil i think that when we think about like why they may not be going for the big bang cut, you have a certain class of producers saying the current price outlook at brent isnt fabulous tp they prefer 70 brept but we can tread water right now. Well see you there in vienna next week. Of course. You give us the name ill be there. A interview thank you. Excellent stuff helimap whatever you think about fossil fuels tim is you either believe the companies are going in which or at some point they puck a good value. There is only one of two outcomes because they are down 70 and 807 . Oil services are down 60 frers from the highs in 2016 the not only is opec possibly the friend but you have the cap exop exdynamic they are not running for growth at all costs. I look at ofs. Oil Field Services. If you look at slumber jay you had rig counts up 18 months. Middle to high teen growth on upmany stream spending on oil services the first time in year. Youve gotten to the place they are overdone. One of seven company was a credit of Hal Burton Congo fill ins chevron, exon on eog. Look at you. Even hurt you can pull out. I also. Going to be in vienna. The opera house this time of year is spectacular. I do christmas im bringing you back to christmas sausage tim. I can only hope. Coming up its been a sturdy year for Home Builders we tell you which the Home Sweet Home strayed could build up more gains. Plus federal regulators warning about the cbd craze. Our Cannabis King tim seymour breaks it down for the cannabis space. Stick around, much more fast money coming up does your broker offer more than just free trades . Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. As a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. 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. The home builder etf, one of them is the xhb on a tare hitting the highest levels in two years. But new home sales fell a touch last month is the housing run done . Lets get to dehna olick with more on the numbers. Diana. Brayen its not done. New home sales fell in october compared with september. But septembers number was revised so much higher that the monthly drop toents doesnt mean much machine the better comparison october was up 32 versus october of last year. Thats which we see the big builder stocks names dr horton. And poulioty up dramatically year to date but it looks like there is room to grow. Builder sales beauy, price gains are heating up again according to kay schiller process the comparable difference between will the new homes become more attractive the mediaed median price down for new homes as demand is on the lowerened entd of the market builds are pivoting to meet the demand but up against high are costs for land, labor and regulatory compliance. And not back to normal historical levels of production despite the higher demand. Brian. You know, price, though, they keep going up. You look at Historical Data up 1,007,000 per home going become about 8 or nine years. When you talk to the home build esper are they growing more confident they can despite the trends of what the Millennials Want to do they can keep building bigger more expensive homes . No pb theyre building smaller homes. The average size of a home is shrinking of newly pilate homes because theyre trying to pivot to the intro level demand. When we see prices come down year over year its not that the builders are lowering the prison a specific type of home but that the mix shift of the median is moving toward that entry level you see much stronger sales from that entry level market. The problem is build esper want to build more into that because they know they can sell more but they have so much cost ahead of them with construction, labor, land, et cetera they cant do it. I look to the average price and i saw that went up and i guess thats mislead sfwloogs thats average average. 90 on the low end then toll brother homes for 80 oh thousand that sort of skew that. Right and thats a small percentage of the market when you look at the 750,000 plus its barely 12 of the market most homes are in the sort of two to 40 oh 0,000 range thats zbleelg all right. Diana olick in washington, d. C thank you very much. Let you get out of the cold. Lets play a game. All right. We love it. Ready to play a game. What are you going to play. Its name that stock. What is the best performing home. How many notes . Remember that show name the tune. Whats the best performing home builder stock over the last 12 months. Poulioty. Its a name you probably dont. No. Restoration hardware. Think buck eye. Ohio state. Columbus mi homes mho, columbus, ohio. You shouldnt do this we if we dont know the answer. I heard this one already. Tray playing the trivia the only one who knows here is a couple of things about the home sales number, the third month in a row over 700,000 print on new home sales despite the fact that the pricing dynamics are what they are First Time Since mid2007. So as diana talked about, the median home price is down about 5 , excuse me 3. 5 year over year telling you the unaffordable housing dynamic is something they are working to get to but right now lower Interest Rates and the consumer having a job is making this an incredible environment for housing. And i think it will continue. Yeah, we sold what 617,000 november last year 733,000 this year. Theyre trying to. They may have dropped buy guy from september to october. But lets be clear the trend is very, very strong. The trend is favorable. And another fegt ner the Administration Cap thats great another side Restoration Hardware was an 85 stock in may. Its north of 200 now. 32 show Short Interest Warren Buffett or some minimum yn onons decide to take a stake reasonable valuation report on december 4th thats a name to continue to own. Thats a retailer thats done it right. I have a bunch of friends here apparently going to dinner to want at the Restoration Hardware down in that fugazy place. Downtown. Translator west village. Prime rib guys strunt on the roof. Still sending the 17 pounds of catalogs do you even own these. For me, home depoe is a combination of all that thats great going on in the housing space. But also for consumers and for you know renovation. So many names have done great. Beezer homes not weezer great band. Beezer homes sticking with housing there is one name in the that set up for a breakout dan head over to the plasma and break it down for us who ever it is. Lets talk about the home depot reported earnings raft we can and guidance disappointing the stret. The being stock closing down 5. 5 after that we talked about the retail over the last couple weeks. Theres been a lot of dispersion in the results this was surprising. This gapped down from the alltime high on the november 19th and kept going. But today call volume got hot. Three times that of puts and can tameo came after the announcement that the Analyst Investor day on december 11th. Caught a bid on kept going but trrp buyers of the november 29th weekly 225 22. 5 calls paying 36 cents on average a lot opening, shortterm trading playing for momentum into the end of the woke thats not particularly convicted price action but it did kind of confirm what was going on in the stock. And i just want to go to the chart real quickly because this is that one month chart. This was where the stock traded at alltime highs before the earnings not only did it fwap down that day but kept going turned and started moving up today. I think the most interesting start is the oneier chart look, the december low kind of held this uptrend like a boss look where it bounced today from the lynn here. And if you think about this i think traders are playing for continued momentum into that analyst day. One last point here. Lets go to implied volatility, the prays of pgs ohs in the hd it dim down pretty hard after the earnings one traders feel like the bad news is out of the way you could see yourself is he something up for a play back towards the highs up near 240 if there is good news at that december 11th analyst day. And doild it playing with the defined risk through calls or call spreads. Good stuff there on the home depot and karen likes the equity as well. Coming up, disney, another magical day. We break down whats driving the stock to, you guesseitd , alltime highs dont go anywhere. Much more fast money right after this this piece is talking to me. Yeah . Announcer options ngs is sponsored by think or swim by Td Ameritrade i see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Nongmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten dairy free. Theyre all clean. All the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Have you ever worked with dr. Francis . Oh yeah, hes ok. Just ok . Guess who just got reinstated well, not officially. Nervous . Yeah. Yeah me too. Dont worry about it, well figure it out. Ill see ya in there just ok is not ok. At t has americas best network, now with our best plans, at our best prices, starting at 35 a line for 4 lines. New from at t. All right welcome back to fast money. Lets get a look at the cramer cam because its a big night ton. Jim laying out 10 reasons why the markets big rally still has legs he has that and much more coming onned mad money at the top of the hour there you see the livera cmer cam. Stick with us, fast money, well be right back. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. All right welcome back to fast money. Disney plus hitting big numbers less than two weeks after the launch Julia Boorstin has more on the magic from l. A julia. Well, brian, its been a big day for disney the stick hitting alltime highs. The Consumer Research initiating country with an overweight rating saying disney is underearning with big strategic shifts ongoing we see early signs of traction and the fly wheel is working disney plus is definitely getting early traction optopia reporting the mobile app has been downloaded 15. 5 million times in the two weeks since the launch also reporting that disneys brought in 5 million in revenue from those app downloads now people do seem to be buying disneys bundle of disney plus hue will you and bowing up more than 50 in the two wieks weeks since disney plus launched compared the two weeks prior. We dont know how many people are simply signing up for the free trial he no he that engage sumit high. Disney plus is averaging nearly 26 million sessions per day over the last weak. And disney plus does not seem to be hurting rivals. Worth noting that optopia says netflix, amazon prime and hbo downloads are unaffected. Julia, we talked about this on the cnbc call this morning. But its a good question if you have a family with two apple tvs and i pad and download disney plus three times because it automatically dloeds on all devices. Is that one or is that three in how do we know see what im saying well, look these numbers are not a total analog or canting translated one to one for the number of subscribers. These are the number of dloeds i dont know how many of the 15 million are individual subscribers. But its worth noting the 15 million number does not include the people sign you go up up on television they have signed up to on apple or roku or maybe ob the of it skrep. This is a slight of the disney plus bus but i have to remind everyone that the first day of disney plus, the company got 10 million downloads. We dont know how many are paying subscribers, how many people got it through verizon. But we will learn more on the next earnings report. About by all intents and purposes, the manned lower yan is that a hit . How do we define hit. It seems to be a hit based on the fact they got so many downloads if the day thats the flagship piece of content they are launching with. Obviously other original series and the huge library but the idea is that something totally fresh and new like the mandalorian from a jimmic maker like john pfaff row is bringing in subscribers that may stick around for the library. Disney, i know the numbers are big. But so is the valuation. Well the fly wheel term has never been truer with any company other than disney. If you look at frozen ii out last Weekend Record global opening. 350 million. A billiondollar release playing into the asian theme parks. This is the company that were giving them the multiple based upon streaming but the core business of which they have 5 that print north of 5le billion in terms of revenue but studio is where they continue to grease the rails for the cpg and theme parks. And its railroad excite zbroog big valuation though, 25 times next years number thats been a criticism. The wrong criticism. But, you know, the ecosystem works. You go on mr. Toads wilded rate. We know to break you know my favorite. Haul of presence. Country jammee. Mr. Toads wild ride number two. Its a small world and well veo adi. E boats guy am ha tbe of course rescued by the disney coast guard up next we have final trades woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. It nice . Ce. 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 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. So time now for the final trades around the horn tim seymour. Yapy mcdougal. Here so to sell you its slb or oiled Field Services are seeing growth. Its a dangerous spot. Be careful. I like that karen. Sell tiffany this is it for the deal 135 as good as it gets unless up to play risk garbage. Other luxury retailers have more value because of that deal. I hope so. Hope so. Dan what did the home depotland hold like. A boss. The uptrend you play that get back to the plier prior high are the analyst meeting. You know who hosted like a boss played hurt this evening but did yeoman work. Go to the opera house if surpta trade. Iikit thank you all yomans performance. Thank you all very much. My mission is simple. To make you money. Im here to level the Playing Field for all investors. Theres always a bulwark summer and i promise to help you find it. Mad money starts now. Hey, im kraemcrammer. Tweet me at jim cramer. The president s being impeached. We still dont have a trade deal. The yield curve is fla