Interview with the ceo of agios. The stock got more than 6 today. Well find out why. And pay attention. Can you name todays mystery chart, the stock dropping at 1. 15 , bounced back a bit, had a bitter cold Holiday Season any ideas . Interesting that means something you probably do its a retailer. Well give you the name coming up but we begin with news on trade. The United States officially dropping the currency manipulator designation for china. Aman jabbers in washington with the developing story. Thats right, the treasury making it official at this hour, they are dropping the currency manipulator designation that they slapped on the chinese last year theyre removing it today. The Treasury Department saying in a statement thats for two reasons. One is the appreciation of the currency thats happened since last fall and the second one is agreements that theyve made inside the socalled phase one trade deal theyre saying in the agreement china has made enforceable commitments to refrain from competitive devaluation and not target its Exchange Rate for competitive purposes china has also agreed to publish relevant information related to Exchange Rates and external balances so the Treasury Department here saying that those are specific details agreed to in that phase one deal, which will will officially sign here in washington on wednesday. We still dont have a lot of specifics on whats in there this is some new information about what might be included the chinese dell gegation arriv here in washington today we got pictures of them at the airport getting into their cars. We are told they will be at the white house for an 11 30 a. M. Ceremony in the east room on wednesday. I just talked to Robert Lighthizer just a couple of seconds ago on the white house dri driveway he said that there will be a social component to this as well on tuesday night they expect to have dinner with the chinese counterparts so a lot of diplomats surrounding the sign we expect to see the fine print of whats in the deal, according to larry kudlow well see all of the text on wednesday for the public to mull over and find out what is in and not in this deal. Aman, thank you very much all right, guy adami, the chinese had already been on the upswing prior to this deal its above 7 to 1. Is this material for the equity market, for the currency market . In my opinion, clearly i think most of the rally today was predicated on the news that was sort of announced earlier today. Great job by aman. With that said, and as the kids say dont me they were expect that they were manipulating their currency except they got it back wards. The last two years they were trying to strengthen it. The biggest currency indicators in the world have been us given what the Federal Reserve has done i just wanted to get that out of the way. That being said, i think it helped youre going to get some . Sometimes the truth is a painful thing and that is the truth. However, the market liked it today and the meltup continues. I agree with you. I think, if anything, china has been very focused on stability because they want to be a major global center. The most important impact is emerging market assets 40 of that is all based on the chinese economy directly and indirectly their influence as a currency on Southeast Asia notice, the outperformance today, notice a lot of these assets that continue to move but what it ultimately means is we can find a deal when were looking for a deal go back to why we started all of this im not sure weve solved any of this. I think Peter Navarro has been very much the leader of the hawk territory and must have found something in a negotiation path that seems like a compromise because even during good times and i think now are good times, but peter has found a way to dig in on important issues he believes are part of this. And i dont think we got anything here. Dont we want them, tim, to be a currency manipulator . Because i think to guys point, if it totally freefloated, most people that we talk to believe it would fall farther. It would weaken, weaken, which would then make their exports to the United States less expensive, negate some of the impacts of the trade war that we used to have and we want them to keep it stronger. We want stability and i think as guy pointed out, every nation is going to do whats in their sovereign best interest, but part of that is what is best for trade and stability. And currency and china if you think about the social issues that they confront on a daily basis and do i think a reasonable job balancing, and i know its easy to be critical, we dont have the same issues in this country so the currency is going to be something that i think they have to control and i think they will. It just seems like an odd concession considering theres no news about this deal. What we know about it, it really has increased ad purchases by the chinese, which they stopped buying once we put the tariffs up a year ago. So to me theres a deal, no nothing. And the president said last week that we may wait until after the election to really get into the meat of phase two. So theres no deal all it is is kind of like an easing of tensions and then you have to ask yourself why are we negotiating against ourselves . Why are we giving to big concession two days before were supposed to have a signing ceremony for nothing i think that investors are going to be disappointed when we actually get the piece of text or paper on wednesday. Now, i agree. And i think its so odd that markets are celebrating something and we really have no idea whats actually in it except this vague notion that its not going to be all that substantial and all that important, and by the way, were about to start negotiating phase two where all the hard stuff is really going to be so i worry the market is going to be disappointed once the drama comes back. Maybetheyre giving something up ahead of the phase two. But i thought that we had all the leverage thats what i dont understand that could be a different point. Im just saying maybe theyre trying to give a gift, a preemptive give. Maybe, and i think thats a fair point and we had a nice little move today. But at the end of the day i think you have to ask yourself is this a lull in the action or have we made substantial progress and i do think the market is going to have ample opportunities, especially given where valuations are to get a little indigestion later on. Lets turn to what could be a major moment of truth for this record rally citi group, jpmorgan and wells fargo are reporting results, on wednesday youre going to hear from bank of america and Goldman Sachs and on thursday Morgan Stanley. Will the banks add more fuel to the fire or could we be in for a rude awakening on a sector that some might argue is priced to perfection well, depending on the metrics you look at, look at citi, for example, which is now trading close to, i dont know, 1. 7 times, right around book value. Talk about jpmorgan trading north of two times these are lofty valuations in an environment where, quite frankly, i dont think we deserve it now, people will say theyre cheap on the pe, thats fine but were getting to levels we last saw in 2008 and 2009, and they didnt deserve it then and im hard pressed to believe they deserve it now. If you look at the loan to deposit rates, and im just looking at data from 1985, theres a lot of things that could be head winds. But the tail winds are the fact that the banks are being run to be more aggressive in terms of their profitability. Not just balance sheets. And i think this is something that people are missing except for the fact that the market is pricing this in terms of the rerating. I think in the case of the banks the fact that theyre giving money back to investors, that has everything to do with what youre seeing in the chart everyone has talked about the break out from the banks this has been a tenyear rerating period that i dont think stops because you broke through or near resistance so i like the charts but i think the fundamentals are fine. Lori, the pricetobook ratio and ill look at jpmorgan by itself, the rest are about the same, remain main 0. 8 and 1 for about eight years and now its doubled in three and a half to four years time. Does it merit that kind of valuation . Does the market generally deserve these lofty multiples. Probably no. And thats why i think you have to go back to the relative valuation call where things are not quite as bad as they are in the market generally and shareholder return, ill tell you one thing i really like about the financials, its one of the sectors where weseeing buybacks ramp up were seeing the announcements start to slow in many other sectors, so to me i think youve got a long sort of stable base here for a while. I would add that the bank trade in the last few months is really about the fed, its about the fed fixing the yield curve bank stocks did not like it this summer when we had the yield curve inverted, so we had those three consecutive rate cuts and then we saw the expansion of the balance sheet. If you look at what bank stocks have done versus the s p 500, theyve almost doubled so it really comes down to, again, where you think the fed is, what are they going to be doing for the balance of 2020. And i would suspect, at least as far as the guidance that we get out of these banks, that its going to be somewhat cautious given where the stocks have come, focus on the stuff that they can control, which is the return of the capital, that sort of thing and as far as capital markets, it may be more volatile, that may be good for them we just wont know that for a couple of quarters. If you want some insulation i think your point is well taken in terms of the fed and the impact and them kind of tapering over a lot of issues but if you look at the regional banks, they dont have the same kind of repo exposure. So if you are concerned i think the regional banks should be more defensive they were very Interest Rate sensitive and i dont think rates are going to get away from us here, but i do think there are reasons, and we see this in asset allocation, that has to do with we see inflation, we see renation and we see the yield and that will be a driver but that wont be great for concerns around credit. Good discussion on the financials its going to be a busy week for the banks. Amid the oncoming slew of big bank earnings, a chart master says there is one name that has maybe looked a little too good for too long. Carter worth is at the plasma to tell us what it is i wanted to focus on jpmorgan, the darling, and gold man stacks, frankly, but lets look at jpmorgan and maybe make the case at this point you can see the charts, annotations. Now, lets focus on the breakout and its a textbook breakout you can draw your lines this way in an ascending wedge, but well defined tops at the common level and a breakout once a stock breaks out, how far can it go . It can go forever. But there is an old technique called a measured move this drtraded in a range for tw years before ultimately breaking out. And if you look closely, 88 is the christmas low, 114, 114, its a 26 range take a look at the next slide. A measured move is the width of the range from the point of the breakout we touched exactly 140 on january 2nd and we stopped dead cold my hunch is that this is overdone and you want to play laggards rather than a stock like this that has already sort of met its objective and as you guys were speaking earlier, it is reaching a price to book that makes one say hmmm. This is the bkx since 2009 its a double. And then just banks in general, and this is kind of the issue, what do we know . If i draw a line here in january and i draw a line here, the bkx has made no progress banks as an aggregate, as the theme, as a bet, and they peaked right after the president ial election its where alpha goes to die after the last two years, no results, unchanged absolute in a big bull phase, a disaster on a relative basis compared to other choices one could have made. Carter, why dont you come over here and lets talk more about this here. As you said, lori, hes looking at the chart and hes not making a value judgment initially but he looks at the charts and says this is what i think. What do you think . Well, again, i go back to, you know, is this potentially signaling something about the Broader Market as a whole, and i do happen to think were a bit overdue for a pullback at this moment in time i am also sensing that investors really do want to find the relative value calls right now investors we talk to think stocks are overvalued and theyre trying to find things that havent run up quite as much. Are they selling . Its overvalued but im going to still own them we did a survey and we found that most of our clients were bullish but thought things were overvalued theyre bullish on valuations, theres a lot of liquidity slashing around the system but just to get back on the fnl financials, we are sensing that people have saying things are gotten overheated and where are things not overheated. Lets put your psychiatrist, behavioral economics out you heard what she said. I believe its overvalued, but im not going to sell it. But i dont want to quit. I cant quit. Or i want to pay taxes. Thats the nature. And we also know that clustering in big names like apple and microsoft. So much does depend on the financials and the valuations and many names are reasonable. In the case of jpmorgan, thats the apple, the microsoft of financials i would rather do something american express, where as jpmorgan already broke out and i would just say im not going to defend sort of the leader so far. I generally like the idea of laggards at this point. If you look at the kre, the index that tracks them, it had a brokeout and its been ranged down i think in late august it touched 48 and it traded almost 60, and now it is trading at 57. 5 and it is sloppy and you didnt great the breakout, what does that mean . There are very good regionals. I just wouldnt do it. This came out today from the Wealth Management division and i got it and i read it and i thought this is really sort of a bluntly honest assessment of the markets. Heres what Morgan Stanley said today, comparisons with the 1999 stock market, complacency operators are high, valuation are above the average, compressed premiums leave little room for investment, consider rebalancing the portfolio quarterly rather than annually are you sure those arent dan nathans notes this is Morgan Stanley. This is what Wealth Management is sending out to all their clients and theyre basically saying the markets are wildly or close to wildly overvalued this is not like some guy in his basement with a blog no offense to that guy. There are always buyers and sellers, but we all know that sometimes you get into a period where its almost frozen and in autopilot up and thats what this feels like. I mean, the sentiment is dumb the price action is dumb all the points that they just littered in that paragraph, they all make sense but right now nobody is taking them seriously, and this feels so much like january 2018. I know theres a lot of people that are going to give me a lot of reasons why its not. But it also feels like a lot of other times in my career over the last 20 years, where indiscriminate buying, it wont end well and im not tell you were going to crash its just not going to end well. No one can three a 3 to 4 pullback and its going to take in january of 2018 it took ten months to make a new high. Those are the conditions that are ripe right now a frequent guest of this show, he wrote on his blog today that tesla is probably all Short Covering and its likely going to have a sharp pullback at some point. How risky are things right now they are, the point youre citing and the point in time, january of 2018, the twoyear anniversary t. Transports are below that level, the materials are below that level the energy its all dependent on this apple, microsoft if theres any trouble in paradise and these darlings ever have a setback, the market cannot sustain it. I think thats an important conversation people are writing in and this is the bear version of fast money. Theyre us. And valuations matter and it always come back to valuation. And everything is Earnings Growth and by the way, Earnings Growth is expected to fall. Coming up, why lululemon investors are feeling very cool today and all the biggest biotech bosses in the world are in one California Hotel right n now. With the group lagging, could a big conference turn it all around re ure to check out our app welive at the nasdaq and were back 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. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back to fast money. Lululemon looking like the apple of investors eyes, hitting all new highs today. Raising guidance thanks to a strong Holiday Season. Lulu is up more than 85 in the past year. Guy adami, is this still a good bet for our viewers . We have to address this i had to bring my dog with me right now. Now jason is playing all the dog park were bringing the dog outside, number one number two, this is a stock i think across the desk weve been positive on for quite some time. We poind oted out the valuations stretch. The growth signifies theyre moving to the upside i think this is a name despite the ridiculous move and despite my thoughts about the Broader Market, you can continue to own it i do think dropping this into the conversation we had last block, would lulu be doing this in an environment thats anything close to this it would not be. It is a great growth story, the Addressable Market in terms of the male Addressable Market. Its going to grow significantly. Thats exciting. The valuation is not exciting. Its not all sunshine and locally pops and rainbows for rainbows five shares falling more than 10 today. Sales fell short of expectations and blamed in part on the shorter holiday calendar five shares now trading at their lowest level since january of last year. Any hope that five below will heat up from here . And i will remind our viewers that all retailers operate on the same calendar. They know this calendar years ahead of time and everybody operates in the same retail framework. And this is a stock thats been on fire until then. Its not like they slightly missed comps they were expecting comps to be up 2. 6 and they were down 2. 6 . That is a significant miss so i think at a certain point this will become interesting again on valuation but i dont think this is necessarily a oneday event. And if you broaden it out, you see how the market takes names like this out on the woodshed when they miss and this is just one instance but it can happen across the board. Interesting is the retailers like lululemon that sell 100 stretch pants seem to be outperforming companies that sell 5 items. I think its also people who own apple shares and microsoft shares and have chunky positions and are up 100 year over year and you go out and buy yourself lulu or Something Like that. And i would throw nike in there. On the flip side, you have dollar tree and kohls there were some disappointing kind of sales in that quarter. And you like music, right wouldnt five below be a great name for a boy band . Lets go to commercial. The hottest boy band in the worth right now is bts, my initials so every time i see that, i think i could have been somebody all right, for a roundup of todays big retail movers, you can head to our website, cnbc. Com in the mean who i am heres what weve got coming up. Announcer the Biggest Health care conference in the world has descended on San Francisco were going to get the latest on the pipeline and later netflix racking up lle nods for this years oscars. Wi that translate into wins for investors . Weve got that and a lot more when fast money returns. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. 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. Welcome back to fast money. Shares of Agios Pharmaceuticals falling more than 6 today theyre down 17 in a year despite a big december ruling giving agios a big break through therapy designation and in the analysts community that is overwhelmingly positive on the stock. At the Health Care Conference in San Francisco with the ceo of agios. Jackie faust, thank you for being with us. Thank you for having agios on the program. We were talking about the stock going down today, being down overall basically what people are saying its not a newsy start to this conference as many people had hoped for. They also talked about an Analyst Community that loves agios and we saw that today, that this is overblown what do you think of the investor action today . I think maybe there wasnt a whole lot new in what we were saying ive gotten very philosophical about shortterm stock price movements. Were in the business of bringing beneficial therapies to patients and thats what were going to continue to focus on. We talked a little bit about some of the milestones that we have coming up in 2020 that were very excited about and we went a step further and put some stakes in the ground around where we think the company coulden in 2025. And many of the more financial type metrics around some of that guidance was probably largely expected by analysts and investors. Weve been getting positive reactions in our meetings today, as you said the analysts notes have been positive so i think investors have a lot to digest today. Part of the forecast for 2025 is doubling the number of drugs that you have on the market. Tell us about some of the opportunities youre looking at. So today we have two drugs for the treatment of acute Myeloid Leukemia we brought those drugs out of our internal Discovery Science in record time and got them to patients theyve done very well with patients and how theyre treating those diseases. So were looking forward to having four drugs by 2025, and across potentially four times more diseases than were in today. So in at least eight diseases, and these drugs are going to take us into a new era for agios, which is consistent with our experience in hematology, but well be going beyond malignant hematology and into serious Blood Disorders that are nonmalignant diseases, like Sickle Cell Disease and some others so were very excited about that and it speaks to the expertise of our scientists. These are all internally discovered molecules and were very proud about that. One of the programs that you have is for a rare disease called pk deficiency and one thing that analysts are focused on is identifying more patients with that disease. And thats part of the Business Model when youre focused on Rare Diseases and rare cancers so how is the progress with trying to identify everybody who has this and i think this is one of the things that speaks to agioss creativity because were not afraid to tackle these diseases and there are no treatments for pk deficiency today so were very proud where we are with the program. We have two phase three trials that are going to move out by the end of the year and were going to file for approvals for therapy for these patients weve learned a lot about the disease and received a very positive reception from the physicians who treat this disease, as well as patients they are very happy that somebody cares about the disease and is working hard to develop Therapeutic Options for it and what we actually found in one of these two phase three trials when we were enrolling, we found more patients than we expected to find in the disease. So we think our patient finding efforts have gone very well and were looking forward to bringing those Therapeutic Options to patients. Were excited about it. So you are in a sweet spot for what big biotech and big pharma is looking for in terms of adding to their own pipelines. How do you look at the future of agios as a company well, i cant speak for how others are thinking about us, but we continue to do what we do we want to bring great treatment option to say patients and really leverage the expertise that weve built over the years in cellular metabolism and a deep understanding of metabolic pathways, so were going to continue to work hard to do that and move things as fast as we can on behalf of patients and hopefully come up with some terrific therapies for them. Well, jackie faust, thank you so much for joining us we look forward to having you back brian, im going to send it back to you and dont forget to tune in tomorrow for more coverage from the Health Care Conference where weve got a great lineup. Im sure you do look at the line up from megan has tomorrow well look forward to it tomorrow biotech trading lower today as the jpmorgan Health Care Conference kicks off the obb is up 9 in the year but 40 different stocks have done better than that, including more than two that are up 25 take on the space in general, if you just bought the ibb you gave yourself a chance of underperforming if you just threw a dart. You lose sort of the binary events, but i think you want to be in the space for exactly that the binary events. I think weve done a lot right in terms of some of these biotech names. Look at biogen, the huge move off the bottom agios, this is an Interesting Company that currently has about 550 million on their balance sheet. Its down from last year, but theyre healthy, theyve done a couple of raises obviously to the shareholders but youve already endured a lot of the pain. I think agio is a name you can own right here. As we said, theres a lot more from the Health Care Conference coming up on mad money. Jim is speaking with the ceos of cvs, smith cline that is coming up at 6 00 p. M. Coming up, the one airplane stock that is moving in the market and does not have a boeing 737 max problem first, were on pins and needles. Dan steps up to the plate to pitch his big idea will the social media stock be a home run investors e t nfa pchit coming up. My biggeear was losing. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Were committed to making college more affordable. , thats why were keeping our tuition the same through the year 2021. [woman] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. Welcome back it is time for an instant replay no, were not checking tape from the astros 2017 world series win, which i think would have an asterisk on it. I think we should keep moving ive contributed some bad humor tonight. At least you didnt bring youri your dog in. Dan and nate step up to pitch sales force. When i think whats going on in the market, if people are going to reach for high valuation, high growth things, sales force is going to break out. Since then, shares of sales force went up 13 . You might not even know this, its the best performing stock in the best performing sector of the market this year so great call. What do you think of the stock now . Listen, it went up 10 , 12 in a Straight Line on no new news my target was about a 10 on the breakout i think you take the trade and you move on. Great call again. Dan, since sales force was just such a success, why dont you head over to the plas sqma d give us your latest fast pitch. Heres one that im socializing and its called p pinterest. This has traded as high as 35 over the summer. And in early november when the Company Reported their q4 fe thy had a disappointing quarter and they were down and showed decelerating revenue growth. Margins were better, net ads were accelerating a little bit but the stock was put in the penalty box. It closed the year basically flat from its ipo price ill just mention one really important point that i think differentiates it. On an adjusted basis this company is expect to be profitable this year, not expected to be profitable for a few years on a gap basis but theyre growing sales at 35 so if you see a reacceleration when they report next month, you might see the stock move up. Its trying to bottom. It spent some time over the last two months below the ipo price kind of banging around between 18 and 19. 5. I think 20 looks like an interesting breakout level and the last point im going to make right here, when we look at the focus on these big ad platforms like facebook and google, i think you might see some m a activity for some of these players. It is growing users and growing sales at 35 and they do not have the regulatory scrutiny that the other ones do i could see a walmart looking to buy pinterest at some point. I think the pinterest within a massive retailer like walmart would reaccelerate some of their ecommerce lets go to the chart. This is how the stock was trading since its ipo it was trading well and broke on the earnings expectations are pretty low here i think you get this thing above 20, you might see a move next month when they report theyre able to beat and guide higher. And you could look at february options, which will catch the earnings event and you could define your risk it would cost you about 5 for money calls in february. Quick question for you, dan youve got an 11 billion market cap on a pinterest so lets put a 40 premium, so youre looking at a roughly 15 billion deal. Do you think walmart would be willing and able to digest that . I think this company should be a feature of Amazon Amazon cant buy another ad platform like that and amazons ad growth is growing. This would be a way for walmart to expand their capabilities and put a ceo founder like Ben Silverman in to me that one makes a lot of sense. I think you buy it if they beat and guide up the stocks is headed back to the mid 20s. Good stuff. No more questions. Time to vote are you buying dans pitch on pinterest, tim i am. And at one point i thought he was doing an airline so i drew dan in a plane i would be a buyer i think the mondfact that they significantly ahead of progress, early days of menetization i like the selloff. I love pinterest. The stock has been difficult, but 330 million average monthly losers that hangs in. And youre talking about if there is an m a deal, youre talking about a 16 to 19 billion deal, which in this environment is not a big deal. And i think dan makes a lot of sense. So i dont think you necessarily own it for that. But its not a risk, its actually a potential huge bonus to the upside. Interesting stuff and a compelling m a discussion. So the traders have spoken what about you folks at home vote in a twitter poll at cnbc fast money. Coming up, big sign of the times for hollywood. What this years Oscar Nominations say about who is running the streaming game stick around. Welcome back to fast money. Lets go down to julia for the details. Netflix shares adding more than 3 today after the streamer due more Oscar Nominations than any other studio 24 nominations in total to netflix, up from 15 dominations last year. Netflixs oscar nods topped disney, which has 22 nominations, and sony has 20 but the question is whether netflix, with two nominations for best picture, for the irishman can win the top award the irishman with near perfect reviews is considered a lead contender. Its going up against Warner Brothers joker universals 1917 and sonys once upon a time in hollywood also have nominations they benefit if their films are still in theatres, but netflix will certainly try to make the awards attention work in its favor. We can expect it to mention these nominations in marketing as it tries to add more subscribers and hold onto its Current Subscriber base and also as it tries to lure over more top content creators to work with the netflix platform. Guys, back over to you. Julia bornstein, thank you very much. Netflix, any point on this stock . Ive certainly had one. Ive been a trader on this, if that means youre selling it historically trade and fade, i fade it. And i think you have a case where ill let other people talk about the break of 325 theres no question this slate is very impressive and its also, to be reminded, often the 4 q subs are back quarter weighted, which i think is going to be somewhat positive for the company. I think profitability is a major issue. And maybe more important is the report of disney plus q1 in early february than the january 21 earnings for netflix because the Competitive Landscape is whats driving this move. They spent 15 billion to do it, thats 3. 5 more than the catch they generated so to me its a disaster when you put it together with the fact that they have all of the marvel, all of the lucas, all of the disney, all of the pixar the list goes on and on that is leaving in the next year and you say to yourself the only way theyre going to be able to keep these subs is if they continue to produce content. And i dont think being a movie studio is going to do it i dont think dropping ten episodes of Stranger Things on a random july day is going to do it so i think this company is in a massive inflection, and all of that being said, when we saw tesla go up the way it did, theres no reason the stock cant go up on mildly improving metrics. Lori, youre not talking individual stocks. But you believe as a group the faang stocks should be sold, ignored . We talk to investors a lot if you want to move back into cyclicles that are undervalued and one that comes up with the Communications Space its this place that people have hidden for the last year because of trade war concerns and investors are ready to let go of that part of the market. Use that money to buy other things that are more valuable. And its not a commentary on any individual company its just simply that the opportunity is perceived to be greater elsewhere and the reason for hiding out in these kinds of names isnt there anymore. Good stuff. Up next, put your seat back and tray table in the upright locked position because Airline Earnings are about to take off were going to tell you one name that traders are betting on and it does not have a boeing 737 max suise. Fast money is back right after this make fitness routine with pure protein. High protein low sugar tastes great high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes announcer treating others like wed like to be treated. Has always been our guiding principle. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Delta airlines is far outperforming its competitors. Were in San Francisco with the options action so we saw about four times the average daily call volume trading in delta today for the best performing stock in the space. Right now the Options Market is implying a move of about 3. 8 higher or lower by the end of the week thats pretty much in line with what weve seen over the last eight quarters, which is about 3. 3 or so the most active options were the january 60 calls, over 8,400 of those traded for about 80 cents. Buyers of the calls are obviously betting that the stock could valley above the 60 strike price by at least the 80 cents they paid. That would suggest that theyre making a bet that the implied move would be to the upside. If we take a look, we can understand why we see this sentiment. The stock has performed well and the street is positive on the name if youre inclined to press your bullish bets this might be an inexpensive way to do it. Were going to have full coverage of deltas earnings, including an interview of their ceo tomorrow right now lets trade, delta, no boeing 737 max issues . Its another one of the reasons that i think delta is the best run airline out there i do think that the valuation is difficult to assess in this environment, but i still think that the valuation is trading as if the economy is in recession airlines are such great trading stocks that i dont think you have to do any one thing i think you should be trading the range to the upside. If you go back to july of 17, delta has been in this 55 to 60 range for the entire time now were at the upper end so i guess the good news is you dont have to make a decision because this report before earnings in my opinion, this is how you play it. You buy it on 1. 60, and it pulls back. For more options action, you can always check out the full show on friday at 5 30 p. M. Nt,n time upex your final trades announcer options action is sponsored by think or swim by Td Ameritrade you leave it to me. Ill get your taxes in an ok place. What . Just as soon as my audits over, this gets my undivided attention. You take a lot of trips to the islands, phil . Pretty great, right . Oh phils legally dead. Fell off a boat. Going by denis now. Celery. Long story. What do we got here. Oh. Not going to want to see this. I dont think this is going to work. 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. The world is customized to you. Built for you. So why isnt it all about you, when it comes to your money . So. Whats on your mind . We are edward jones, a 97yearold firm built for right now. With one Financial Advisor per office, were all about knowing whats important to you the one who matters. Edward jones. Its time for investing to feel individual. Welcome back to fast money. Time to reveal if you bought dans fast pitch on pinterest and the voters have spoken unfortunately, theyre no. Well, theyre not buying, but its not by much 53 of the people saying no, which means, dan, that 40 something percent said yes so not all the lost. At least you get to hear some toni braxton as we head into the final trades i think the fcc is going to dominate tonight i think delta will dominate the airline sector, even if Airlines Look a little difficult in 2020. Lori, thank you very much thanks for having me. Were selling the Consumer Discretionary sector the consumer is resilient and theres more opportunities out there. Slamming the american consumer, lori. Pinterest was a trade idea. I think were in a market where we may have a reason to move. I thought dan did an excellent job on the power pitch. I mean, the fans at home might not have thought so but on the desk we did. Number two, we talked about the double bottom, the stock is moving to the upside we like my mission is simpe 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 cramer. Welcome to mad money and the west coast edition o cramerica. My job is not just to entertain but to educate and but teach us call me at 1800743cnbc. Or tweet me at jim cramer. Innovation is the life blood of