Today but we start with todays turnaround after a weekend of threats and a global selloff that saw markets from asia to european drop, u. S. Stocks prove resilient with all tree indexes finished in the green. So faced with one of the most significant escalations in mideast conflict than weve seen in years, investors are Holding Strong could anything shake this market what do you make of the action. Welcome back courtney and tim has been away. Thank you. It is shocking. At one point the vix was 16. 5 and in an environment where the vix has no business in my opinion below 14 i explain it with beginning of the year inflows in a significant way and the fact that the Federal Reserve keeps pumping in liquidity at record paces. Now north of 400 billion since september. At this pace, by april of this year well have exceeded the alltime high for the Balance Sheet for the Federal Reserve which in my mind is just madness. I think that is the explanation. Now the fact that taib contin s continue facebook continues to rally despite the holidays, very interesting well show a chart later facebook is pushing levels topping out at 18 or so months ago. I thought this for a while and incorrectly and i hate to use the term whistling past the graveyard but that is exactly what the market did today. So happy new year, everybody. Could we still say that guy. We could say it now, tim. But in june it wont fly. So, look, obviously as we go Everybody Knows the melt was a function of the central bank galore and a trade truce, the market will focus on fundaments quickly and we have earnings and constellation and bed and bath and beyond and retail and so there is nothing to get excited about but mega cap tech you could make an argument that facebook which i push back on but googles valuation and amazon never mattered and amazon is breaking out and the one faang stock if were still using that term in this new year that didnt participate so i think markets now are rightly focusing the geopolitics have never been in the short run something to derail the economy. There is no chi economic impat and its about allocation. For so long we were focused on the u. S. And china and those were the macro headlines guiding so why are these headlines not moving the market so much. Because i think the china headline is in a positive limbo for the next few weeks we think well see the first phase, whatever that is and a deal there if there were trouble then we wouldnt see this tape it is astounding that we had one down day, one day of oil spike in a pretty big volatile situation. That is amazing to me. It just speaks to the u. S. Independence of being independent of the middle east that is amazing to me. But i also think it speaks to the strength, perceived strength of the u. S. Economy. Right. If that starts to get a little shaky, which i dont think it will, we saw that little pmi number last week, but thats between earnings and a china deal and not massive increase in volatility in the middle east situation, the steves point the why were at 13. 85 vix the Central Bank Point is a big one when you think about the Balance Sheet over the past four months and the dollar hit a six month low so when you talk about Interest Rates going lower and the ten year could not get above 2 and the dixie went from 100 back to 96. 5 and that is supportive of u. S. Multinational eps at a time where wee see wage inflation. But we mentioned the manufacturing number that was a sixmonth low. And the trade truce, if that is the best that we have right now, if we see input costs going up like oil for geopolitical reasons and we do see a u. S. Economy that is firm and we see wages at least stay firm, that is not a great scenario for u. S. Corporate earnings despite the dollar and Interest Rates being lower so im talking out of both sides of my mouth. The point is we dont know what will happen here and it is not a great scenario to have uncertain trade scenario and what seems to be the the worst geopolitical flareups weve been involved in in a very long time. So when you say s p 500 up 28 and low singledigit eps growth and then look at expectations for 2020 and High Expectations im not certain we could get there so maybe last years 28 gain is good news over the next few months. It is a new year and im reluctant to agree with you out of the gates but it is hard to argue. And the point i that would make is price to sales. Were at 2,000 bubble levels ebbidda at 2000 levels and a market reliant on the consumer and we have numbers this week. We have adp out on wednesday and a strong november. So even if you are just talking about how you tactically might play this, you set up for a december number which probably gives Something Back and fundamentals is what this is all about and were finally getting back to earnings that is what i think the litmus test should be because there will be no trade truce to talk about and Central Banks are going to do nothing in the short run and that should matter and that does concern me. Karen, what do you think the biggest risk for the market is now. I think the trade deal falling apart. For months that has been my biggest fear and i think that is what the market most reacts to. More than the fed even. I think so too. Well stocks were not alone in looking past mideast tensions Oil Prices Falling but the chart master said enjoy it while you can because the market its in for a crude awaken carter worth will break down the oil magic number. Hi there. Crude awakening. So chart of oil. And lets devine it together and figure it out. I have lines here indicating to a drone attack on the 16th and the drone attack on january 3rd but take those out and that is the importance of charting it is not about the news or the facts, that quite often to the penny, to the penny, it gets to the penny on the drone strike in stops and falls to the penny of the bottom of the wedge and before this current drone strike had already started breaking out. And then of course zoom in here, we get the drone attack there and today we follow through, we hit almost 65 a barrel. Meaning independent of whether it is news related or not, this formation has been resolved to the upside news or not. There is every indication there is more to come. Lets zero in on it. This is the formation. You call it a triple bottom. Again you have a heavy volume thrust to a prior high and toying with exceeding that high and getting to the former high another way to draw the lines. This well defined top at a common level and call it a rising wedge but it is all quite proper as a setup whether one accepts or doesnt accept the fundamentals, the news and then this. This is crude oil on top and relative performance to all commodities. This is the equal weight of all commodities from soy and corn and soy beans and wheat and weve just broken above the relative down trend line in effect and you see to zoom in here weve broken above the absolute line. So finally, if one were to play this in the energy complex, i think the xop, it is a good etf and a couple of ways to draw the lineses that a well defined triple bottom and also the recent action has allowed us to break above the down trend line that has been in effect the past year put our triple bottom back in and every indication of more to come i think one wants to participate on the long side. Im with you on that. At what point in your opinion pricewise for crude does it affect the strength of the consumer and the economy and those type of things a great deal of past recessions have been caused by oil spikes but it is typically getting closer to the 85 to 90 level to be an impact we call it 65 and call it 62, 74, that is not 95 and enough to put in the bite. Carter, when you look at some of the big integrated names they havent done quite as well and yet the fundamentals for a company like conocophillips have changed and is there a reason why you dont go for the best Balance Sheets in the space, cvx, cop, how do those look. Those are are laggards. It is the beta playing this as if there with is a further move in crude so you find the most beaten down names, things in some space, even a hallberg and go best in class like just what you are implying or hess is a favorite for instance carter, thank you very much for being with us today to break this down. It is an important day for the oil market. Well as investors continue to watch developments out of the middle east, there are are several other events on your radar. Tomorrow we get the ism number and then walgreenss and bed bath and beyond and constellation and on friday look for the monthly payroll. Into next week, expect trade headlines. A chinese delegation will travel to washington on monday to sign phase one of the trade deal. Head of equity strategies, welcome back, chris. So i asked karen what she thought the biggest risk to the market and she said it is the china trade deal, do you agree. I think the biggest risk are are rates and the fed. I think the fed is a bigger issue. Everyone is convinced the fed will push equities higher. I think weve seen what we need to see from the fed at this point. We have 400 billion of Balance Sheet increase at this point i dont know how much more were going to get so if the fed doesnt increase the Balance Sheet that aggressively, what will happen when they pull back. And when they pull back we think that well see a reversal and at some point in the first half of the year we expect a 5 to 10 pullback and that is the biggest risk we see. Ive heard so many people say that is a big risk so if year all expecting it could that help make us feel better and make the pain less when the pullback does happen if we know it is going to come. You may make you feel good or bad but that wont stop it from happening. So what do we see . Balance sheet expanded by 10 and s p was up 10 and the Balance Sheet stops growing and then we should expect to see some sort of pullback. Expectations as we as other people were saying, expectations are very high. Vix is very low. And we just cant continue to have multiple expansion. So when you think about fed risk, are you pricing any cuts, any hikes, anything . Just all Balance Sheet related. So the house view is for one more cut but the real risk now is that weve pushed everything that we could. We have massive multiple expansion. That is partly due to trade truce well say. Phase one deal but more importantly, that was related to a lick whiffication of the market. And that wont repeat and well see a modest increase in eps growth why would you go out of your way to increase guidance at juncture 12 months is a long time and a lot of volatility coming down the pipe and why increase guidance this early in the new year i have a hard time believing that earnings will do it in the first half of the year. Where do earnings need to be, chris, for people talking about 5 Earnings Growth and i dont think well get close but that is the bogey. That is the bogey that were using. We were low on the street last year were still low on the street. 5 seems like a reasonable part. What we think is youll see an acceleration in the back half of the year but you cant expect to see a lot of companies raising guidance in the year early. What about position as a guy in the market, you look at Hedge Fund Position and growth exposure, in the 95th percentile and hedge funds have more money in the market and maybe not net long but without getting too wonky, theyre in the market and that is dangerous to me. So ill talk about my book for a little bit for the last 12 months weve talk about put risk or cyclicality and we need to take that off we downgraded to semis take some sim lickal exposure off and risk off everybody has gotten more positive and constructive. There is a lot let fear and more greed at this point in time. What about the momentum names that weve talked so much about going in through lets say the next three months. So earnings is a great example. So what we see what we have seen coming into earnings, if youre missing numbers, some of the companies will get taken out back to the wood shed and beaten right. So the momentum names, some will work and some are going to make you cry. Because theyre just not going to be able to put the numbers you need them to put out. Chris harvey, wells fargo security thank you for being with with us today. Coming up, major new developments on boeing in the past hour. The Company Striking a deal with one u. S. Airline over the grounded max planes. And later analysts putting up two different takes today and traders will give you their picks. Were live from times ua isqren new york city. Much more fast money right after this our Retirement Plan with voya gives us confidence. They help us with achievable steps along the way. So we can spend a bit today, knowing were prepared for tomorrow. Wow dad, do you think you overdid it maybe . I dont think so. What do you think, peanut . Nope honey, do you think we overdid it . Overdid what . See . We dont think so, son. Technically, grandparents cant overdo it. Its impossible. Well planned, well invested, well protected. Voya. Be confident to and through retirement. But she wanted to be close to nature. Home. So, we met in the middle. Ohhhhh look who just woke up you are so cute but one thing we could both agree on was getting geico to help with homeowners insurance. Yeah, it was really easy and we saved a bunch of money. Oh, you got it. You are such a smart bear call geico and see how easy saving on homeowners and condo insurance can be. Looking to get your business off to a fast start in the new year . Its go time switch to comcast business and get fast internet on the nations largest gigspeed network. Plus, complete reliability with 4g lte backup. And, cloudbased security to help protect the devices on your network. Greenlight your business in 2020 with fast internet and voice for 99. 99 per month. Act now, and get 1 year free of wifi pro. Call today. Comcast business. Beyond fast. Welcome back to fast money. New developments on boeing within the past hour the company reaching an agreement with American Airlines over the grounded 737 max planes to phil lebeau in chicago with the details. Well talk about that max deal in a little bit between boeing and American Airlines but we know within the last couple of hours boeing has notified the employees out in renton, washington, those who were on the 737 max Assembly Line that theyre going to be moving around starting this week. Some of them going to work at up in everett on the 777 and other programs up there. Some will be in south carolina, redeployed to work on the 787 dreamliner and some workers going out to where the maxes are stowed in the pacific northwest. Moses lake is a good example of that theyre getting assignments as they wind down production and that should be ramped up with the the last plane coming through the line in the next week or so now, lets shift to the news between boeing and American Airlines they reached a deal with boeing, american did, regarding not being able to use the 737 max for a good chunk of 2019 this covers the loss of the aircraft from last year. Now 30 million is going to go to employees back in october, american said, look, about 5 of whatever settlement is going to employees. Do the math. That means the settlement is somewhere close to about 600 million as you take a look to shares of boeing, they were under pressure for most of the day but they have come back a bit late in the session. The max settlement by the way with american one of several the company had with airlines and they announced with aero mexico today. Spirit airlines a supplier to the 737 and where they make the fuselages of the 737 and they are suspending max production and the company is engaging in what they call voluntary layoffs. They havent givena number or when they will begin it is important to note here, courtney, there is a good likelihood and this is from somebody who once lived in wichita and covered aero space there, i know from talking to people down there that they are engaging, spirit is engaging with the state of kansas to do something in terms of compensating employees who might be temporarily laid off until they could bring max production bax. So a couple of questions here for you, phil. If they are redeploying the workers, once theyre able, if they are, to get this max production bark on schedule, how quickly can they get them back it takes a while to wake up the line you cant just snap and it is ready to go. Just as it takes a while to wind production down and the last one is coming through the Assembly Line over the next week or so. They announced this back a couple of weeks ago. It also will take a while to wake it back up. So theyll be strategic in terms of saying, okay, we need these workers to come in and those who are assisting in terms of parked max aircraft, lets say at moses lake, maybe a time frame when they come back into the factory. So obviously weve gone through the settlements and a lot of numbers to chase in this story, phil. What are the big unknowns when it comes to the numbers outside of the timeline for the max 737 getting back in the air. That is the biggest one there are some analysts who initially said we think it is about 5 billion worth of settlements. And now they have doubled that amount because it is openended. Will it be a month of 2020 they dont have the max or five months of 2020 will it be further out those are the things that still need to be determined and that is why it is important to note, with this settlement, with american, strictly covers the loss of the aircraft in 2019. Got it. Thank you, phil, keeping us honest on everything boeing and airlines tim when you look at the airline space, anything look attractive to you, boeing or otherwise. This seems the Charm Offensive we thought would happen with mr. Calhoun and larry kelner who used to run couldnt innocental, getting back in the good graces of your customers i think it has begun the news out of boeing, i dont mean to understate how catastrophic and sad this has been but the news over the last six weeks outside of a ceo change is very big but in terms of the fundamentals for the company, i dont think a whole lot has changed. I think for the airline industry, weve talked about this on the show, it is very underplayed at the capacity that come out of the system it is something that may have really been underpinning airline shares in 2019 and that is something i think you have to watch for because even though we get numbers on the capacity from the airlines analysts, i dont think people will be prepared when this does come back online. It is unbelievable to think of the flights taken out of the air and not replaced and karen, your long on american. I am. We saw selloffs today in transports and in general in the airlines an opportunity to buy more well, you know, jet fuel price is going up. That is not helpful. I think that, yeah, i do ultimately think it is an opportunity to buy more because i do think that the u. S. Economy is healthy and i think that this is a blip. This reaction to me is actually far greater than oils reaction. That is sort of surprising to me so i do think it is an opportunity. I think the airlines came back in the session today a bit but selling off fairly sharply to start the day. Well a lot of it has to do with the way boeing reversed in terms of the stock, it traded down to boeing traded down to the 320 level on december 17th and it held. And it has bounced since then. So you sort of have a line in the sand to trade against and that is what we talk about this stock reports the end of january, the 29th and the way it is traded now with so many bad News Headlines and finally you get a reaction like this, maybe the worst is over in the shortterm so to that end, i think you have a very tradeable stock now in boeing for the first time in a while. Except if you the new ceo, the kitchen sink in 2020 you go below earnings and no matter what happens or the settlement or delay, you could beat the numbers. So that 320 looks like a precarious level, for some reason it held most of last year it bounced off of that. If you look at a fiveyear, you say is that amazon no it was boeing. Based on the 5,000 orders they had for the 737 max, doubling over a couple year period. And say, look at that. Maybe that looks like a head and shoulders, maybe finally they cut this thing and cut the guidance low enough where people say it will take more than just a year isnt the presumption that a lot of the expectation could be in the price in an efficient market you have the dynamic where you have to believe theyre going to lose an incremental sale to airbus legislatu you could temporary cut and we dont know when they are coming back on line so youve been doing this for 40 years, tim, and have you ever seen a company lose 96 of the earnings in one year based on whatever the thing is. Whether it was bad lettuce at chipotle, it takes a while to work off of that and the stock hasnt and everybody talked about how well it acted in the last year. At some point it will act badly and those people hanging onto it may puke it. But for guys like you only in about 20 years the bottom line between what i know and you know is stocks move in advance of it happening. So i think when we get insight into what boeing begins to thermalize, that will come right back and i think the down side for what could be a difficult and lumpy 2020 earnings is in there. You have something we have a breaking news. No. I was going to ask tim a question what movie was the nim name lumpy predominant in lumpy. Think about it. In scrooge have you tried staples. Somebodys friend in like leave it to beaver. Little rascals or something lumpy. Bill murray. He watches the show, by the way, religiously. Big fan. For the latest developments on boeing head to our website at cnbc. Com here is what is coming up. It is a tech triple play, the desk breaks down the analyst calls that got shares offal tau bet and salesforce moving today. And later gold trading at sevenyear highs where the Options Markets said prices are are hdieang now well bring you that and a lot more when fast money continues. Hey, saved you a seat. This rounds on me. Hey, can you spot me . Come on in. Find your place today, with silversneakers. Included in most Medicare Advantage plans. Enroll today by calling the number on your screen or visit getsilversneakers. Com welcome back to fast money. Three big moves from three Big Tech Companies today were calling it a tech triple play lets kick off with alphabet so that is topping the tape and hitting record highs for the third day in a row after an upgrade to a buy with a 1,650 price target one of the most bullish on the street analysts optimistic over the leadership change and expectations of Strong Revenue growth this year so is alphabet the faang name of the year. In terms of valuation, dan is going to fickas me and in terms of the regime change and we talked about it the night it happened, this stock got st gt through the 1500 level and moving up and seemingly valuation makes sense and in earnings at the end of the month the stock continues to trade higher so the short answer is yes. Karen it is an extraordinary franchise. I think the valuation isnt so expense which you back out the cash hoard which they are beginning to use a 20 billion buyback over some amount of time they could be more aggressive than that. When you back out the cash, this is a mid20s multiple for unbelievably great franchise that spends a ton of money still. So i think the valuation is fine and im happy to see the 1650. I dont think that is in the shortterm but hopefully one day it will will hit there i like it. I feel that it is up today just on that. Nothing else happened today. So we have to wait for earnings. But i like it a lot. Dan, who do you make of this. Ive been thinking about the california protection. Hes ready to frickas. There are a lot of things i love about karen on december 31 karens final trade was buying google in 2020 and i started buying into the year and listen that 35 rally off of the lows from the summer makes sense. But i think you have to go back and think about to your point about regulation why was the stock trading all the way down there in the summer and because people were worried about all of the issues and the spend theyll have to do with regulation as we go into the election season i think it will become an increasingly hot topic. So i dont know. Facebook, guy mentioned it earlier, theyve taken their medicine on the earnings and spend front so i suspect that investors think that is a slower lift it might be harder for google. But facebook exposure on spend is around security. Have you heard of youtube. Yeah. But they dont have as far as im concerned, they dont have the track record of malfeasance that they do and i think in the case of google the irony is they are penalized for having a core business that is shrinking or coming under pressure and the core business has proven to be growing at the the same rate and getting rewarded much as so many other businesses are that have this recurring cash stream trading at a higher multiple and youtube which we would like to see broken off because if they spin it off they could get more credit than they are now. We could talk about this more im interested on the consumer pricing in california. But we move on to apple. Even more bullish and dan ives said the 5g could be huge for the company and 400 best Case Scenario for the stock moving a 35 move from the upside from the todays close into the end of the year. Apple has doubled over the last year so my goodness, does the stock still have more room to run or is this record run down. Karen what do you make of apple here you cant have a rally unless you have apple moving higher. I think that is true. Im long apple i am a believer that we do see big 5g sales i dont know if it is the first quarter. But i do think well see it over the next year. So the apple valuation a little stretches and getting credit for the mix change and the more recurring revenues and getting credit for that but im staying long i know dan will take the other side kline is falling off a cliff there is no i just dont think that i think if youre buying the stock up 100 year over year when earnings did not grow and flat last year and buying it for next years iphone 5g supercycle youre kind of doing it wrong. I know youre long it. That is fantastic. His call today going to 400 because of that, i just dont see it so you talk about Margin Expansion and this is a stock trading below market multiple for a lot of reasons an then expands and trading above 20 times. People say the comparisons are easy yearoveryear and im looking at 8 eps and 4 sales growth and both would be the best in a year or so so youre telling me that the hill wasnt high to get over, but i dont know if they could do that. Do you think 400 or just under 300 now i think analysts have been forced to chase this thing unlike anything weve ever seen. Because the fact that were now talking about air pods and talking about the apple watch being something that is getting into the valuation discussion for people and i realize warables are growing 25 but this is all about services and a company that needed to rerate with a Higher Service space. Well guess what . Weve gone from 13 to 14 times to 19 times forward. It is rerated im long the stock im an investor, not a trader in the stock. But it is not cheap. Well close out our tech triple play with salesforce getting a boost an rbc capital named it a top pick. You might remember one of our traders said the same thing just a few days ago. So when i think about what is going on in the market here if we continue to see a melt up and people will reach for high valuation and growth for beta, salesforce will break out. Nice one, dan so what do you make of todays wearing the same outfit. Same outfit. Broken clock, twice a day this is a good set up. Here is a name that underperformed many peers and nasdaq and i think this analyst took an opportunity to say that the fundamentals are pretty good this Company Guided i think they think conservatively for this quarter and for the fiscal year and the potential upside to guidance so to me this was a technical trade and you see some continuation but this is not one im chasing up 10 from the levels my target was a move up 10 from those levels. Guy, who do you make of salesforce action more than 4 . But up significantly over the last two and a half months and dan is spot on but im of the camp that this is a big move and toward the end of the month, i dont think salesforce reports until the end of february so you have time so you could talk about valuation, im more inclined to take it out than chase at this valuation. We found that the high multiple stocks were not performing and salesforce was one of them. Dans breakout is a breakout i dont think you need to push back on it but it is hard to know where it goes. Salesforces has a run of up 25 , and slightly outperforming the s p 500. Coming up next, a reason to smile. Why those in this ipo are feeling extra happy today and well bring you that name. But duelling calls on citi, who is gtietng it right. Well settle the score when fast money returns rget your g . Its not about quantity. Its about quality. No trendy stuff. I want etfs backed by research. Is it built for the longterm . My reputation depends on it. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Welcome back to fast money. Forget Charles Dickens we have a tail of two cities Deutsche Bank saying it has limited upside and Goldman Sachs added it to the buy list saying its undervalued so it is the best or worst of times for citi. It is the best of times if you believe the consumer is healthy and that youll see reflation and yields continue to move higher and granted under pressure because of geo politics and who had the most important to re rate most of the sector over at jp morgan, so it is an environment where citi should outperform. Im long. So i better be bullish or that is dumb. I think a valuation if you like at price to earnings, it is in the bottom end of jp morgan. They look cute together. Oh, nice. So they have dividend yield, that is not the reason to own it but they also have a buyback and i see the business improving and so even though were in a low rate environment, i think they could continue to improve if you believe the world will improve, citi will probably do better you dont want to make that bet, bank of america is the place to be but im long citi. I like it and i agree with goldman sacks. Positive world view betting on citi. Dan. I think buying this stock and trying to play for a breakout and i think the january 2018 high was just above 81. 5 and it went down to 47 and worked back up i think trying to buy it for a breakout, you better be optimistic on the economy and the consumer and whatever this goldilocks scenario will stay the course because this trades at a discount to peers for a reason 11 years after the financial crisis so i think there is better ones to own and you own them. Jp morgan and bank of america. Im bearish we do a segment here, you have probably seen it numerous times called the power pitch we power pitch a stock and over the summer we power pitched citi and the reason why it was trading at significant discount, 62 tangible book with 69 and we pointed out how that is a huge opportunity. That proved to be correct. Now here we are at 80 trading around now and book value and that is where it tops out at so 80 is book and citi and i think the stock trades lower back toward the low 70s dollars, high 80s so im in the bear camp. When he said we, do you have a mouse in your pocket it was you power pitched at 62 and it was a great call. Nice job. It is a we patting yourself on the back. I wasnt patting any back i was just passing your mouse on the back. Funny the mouse thing because they tried to staple antlers on the mouse and it comes back to bill murray again. Hes a fan of the show. Hes probably watching right now. Of course he is in chicago keep watching well thank you all for giving us your bests on citi well see the tale of two cities coming up, shopping for opportunity and big headlines causing moves in the retail space. Well run you through them plus gold surging to the highest level in almost seven years, why options traders think this rally a golden opportunity. The details when fast money returns. With esri location technology, you can see relationships. Connections. Patterns. You can see what others cant. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to fast money. We have a retail round up. A slew of headlines crossed in that space we kick it off with bed bath and beyond shares rallying after a deal to sell and lease back 250 million worth of its real estate this is a way to free up some of the capital. Theyre running through a turnaround plan. And karen you play in the retail space. Bed bath and beyond been beaten down but seen some runs as of late. That Management Change was gigantic they couldnt have gotten a better guy than to have target merchandising come to bed bath and beyond that is pretty great one of the things that was surprising to me that the uses for the sale leaseback was to buy back stock i was surprised. So looking at the Balance Sheet, they have plenty of time and dont have any Debt Maturity so they have room to run. If they believe in the turnaround and buying back stock, you could see it be turbo charged but im not a believer yet they are not still under serious threat by amazon and others. I think there is a lot of things that needs to be done there. Theyre evaluating the shops and they own kmas shops and byebye baby and working to add to the portfolio. But the report after the bell on january 8th and that is wednesday, huge short 40 Short Interest and a stock that is clearly more than doubled. I think it gets squeezed in earnings so i think there is more upside and i think you could own it postearnings as well so i think it will surprise some people from the upside. How did you remember the earnings are coming up. You should watch the show it is like i know nothing else it is like elephant man or rain man or something man. It is kind of both. Well were going to move on here jp morgan betting that nordstrom will rack up big gains and upping the frys target from 24 to 41 saying the Department Store head winds are are in the rearview mirror. We talk about how nordstrom is a good rrtd but it is in the space. Theyve tried to differentiate themselves with some success. What do you think of the new York Flagship new store. It is fantastic have you been there . A lot of great restaurants. How do you know i havent been there. No i was asking, have you been there i know you like to shop. Im a bit of a shopaholic but youre right, you got into a Department Store story so bad when nordstrom is not a terrible Balance Sheet and buying the stock on the expectation to go private but that is not the reason to own it but theyre overly promoting their rack business showing growth and i think the expectations are low enough that you could take a shot. The rack business in nordstrom has been better than the full line store but do you see value here. It is not great 6 billion market cap and 400 million in cash and 6 point something in debt. These are declining sales and the earnings have gone negative. I dont know i think the Biggest Issue is that they are in malls so you just talked about in better malls in higher end malls for legislatu for sure. They are doing good things in the place that we might see them but i think go to a mall and you say to yourself, there is to future for these places. So were overstalled, overmauled and overDepartment Stored and i think there has to be some valuation and amazon will make a move for one of the brands because it could do bar bell approach like with whole foods with the general. And talking about in the west village there are new Service Centers so theyre moving to locations that dont have any inventory but theyre there to serve you. And it fits well with amazon. That is right so last but not least, smile direct club surging 20 off a deal to start selling some of the products in more than 3,000 walmart locations, despite the move the shares of the company down more than 55 since the ipo last september and we talked about this during the break. This is a big move but many of you think it should have been higher today well, look, if youre looking for a kingmaker, it is walmart. When you talk about the market that 91 of people have some condition, guy, where they could use smile direct so if you think about it, there is still an market for these guys but the problem is profitability and valuation and at one point they had 150 million in sales in the first report and doesnt justify the valuation that came down and it is still a 300 Million Company and i think you have to hang out and see how this works. And courtney, this is the second time, i just want people i have feelings too. And i didnt grow up in southern west chester, i grew up in the Railroad Towns and so i have crooked teeth but you dance with the girl you brought to the prom, number one number two and i think the stock on that news given where the stock was where ipo, it should be up 50 im shocked its only 20 . That speaks volumes as to the Business Model so walmart or not at a certain point you fade and it is probably sooner rather than later. First to pick on our friends across the pond. No. The real Business Model should go to london and open up one of those right and that whole thing and do the whole country bang one fell swoop of england. There is more we could talk about here in coming days but we have to move on. Coming up, gold has options traders look for the jackpot and well break it down. But the cramer cam jim is sitting down with the ceo of Planet Fitness and catch that coming up at the top of the hour on mad money. Much more fast money after this dont get mad. Get e trade, dawg. 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. Find the best instructors in the world, and tie it all together with a worldclass software experience. We ended up creating, as you all know, so much more. Peloton is truly a category of one and were just getting started. Now, lets do this. Together, we are going further than we ever thought possible. Looking to get your business off to a fast start in the new year . Its go time switch to comcast business and get fast internet on the nations largest gigspeed network. Plus, complete reliability with 4g lte backup. And, cloudbased security to help protect the devices on your network. Greenlight your business in 2020 with fast internet and voice for 99. 99 per month. Act now, and get 1 year free of wifi pro. Call today. Comcast business. Beyond fast. Welcome back to fast money. Gold touching a fresh sixyear high on rising tensions in the middle east and in the Options Market traders are betting that gold could climb even higher if the situation continues to heat up mike khouw is here with the options action. What are you seeing today. The eltf that traded gold traded two times the average call volume by mid day and where most of the activity was the february 152 calls over 30,000 of which traded for about 1. 50 and buyers are betting it is above the strike price by the premium they paid. That would represent about 4. A increase just to break even where gold closed today. And as we look at middle east tensions, most of the bets were reflation oriented we didnt see bearish in spx or spy but did see bullish in gold and oil. Thank you very much, mike well continue to watch that for more options action check out our show every day at 5 30 p. M. Eastern time. Coming up next we have your final trades everything your trip needs, for everyone you love. Expedia. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. Average final trade is sponsored by Interactive Brokers welcome back to fast money. We have a big lineup for you tomorrow Brian Sullivan will be live from the Goldman SachsEnergy Conference in miami with with interviews with the ceo of chevron and cheniere energy. Time for the final trade around the horn, tim. We talked about google and the valuation and the core business but also google bets we dont talk about this is one of the great incubators in all of tech that doesnt get any valuation credit google is the story. Karen youre up. We make fun of pete all of the time. All of the time. Not enough. We just cant hes such a good sport and so loveable that you got to just youre buying gee as your final trade. No. I talk about a lot of things that i like and i want to own but you have to do if youre long a bunch of things and im always long is you have to own some s p puts with the volatility index where it shouldnt be, you have to own protection s p and puts. Like tlt. I think u. S. Treasury rates go lower the bond etf and i think the conditions ash the world speak to buying. Take us home. Courtney, were thrilled your back bed bath and beyond, i think you stay long into earnings. That is going to be a good one. Im going to be very interested to see what happens there. There. That does it for fast money. Mad money with jim cramer starts right now my mission is simple, to make you money im here to level the Playing Field for all investors. There is always a bull market somewhere, and i promise to help you find it. Mad money starts now hey, im kramer. Welcome to mad money. My job is not just to entertain you but to educate and teach you. So call me or tweet me and be nice. Is the market wrong . Thats how i felt today, that it was likely w