And tony dwyer leaves the pen. Staying now is time to take profits. We tell you what has him a bit nervous. All that ahead we begin with earnings alerts on ibm and netflix. Both stocks on the move after reporting numbers. Both stocks moving higher. As always full Team Coverage standing by to break down the big moves. Julia boorstin digging in on netflix. Lets begin with deidre bosa. A green on the screen for big blue. Ending the streak of declining year over year revenues five quarters that have but is it too soon to call a turn around . Remember we saw recovery in 2018 but didnt last. The revenue grew a 10th of the . And shares popping because expectations were so low and now gains up lower than 4 a sustained turn around will depend on the bet on hybrid cloud and the 33 billiondollar red hat acquisition. There are early signs of promise. Cloud revenue hitting 8. 6 billion comprising 30 of revenue. Ahead of the report ibm saw downgrades from Morgan Stanley and every core this table suggests that based on romettys age and tenure, a ceo transition could be likely the typical retirement age for ibm is 60. She is 63 and presiding over a turn around without much luck for eight years. Morgan stanley suggesting big blue needs a meaningful shift in the portfolio for longterm Revenue Growth while today was a needed beat and shares up 4 in the after hours. Remember they are underperforming over the last year and decade. Lets go around the horn and trade ibm. Guy adami, i understand the result is good and stock up. 150 stock less than a year ago. 180 stock three years ago i dont think to invest again. 140 stock ten years ago. Didnt mean to be so emphatic throwing names and numbers. Yes if you just look at the pop, guy, you say good news. We have to look at this holistically and longer term perspective. I agree and we have said a long time on the show, you know ibm is getting it wrong in the wrong businesses. Mix is bad but guess what, a lot of what deidre said makes sense. Operating margins for the quarter were 51. 8 same quarter last year 49 and change thats significant why, because at least the product mix is getting better. The cloud she spoke of of 21 year over year is good if gina steps down after the tenure this is the quarter to do it ibm is on the verge of breaking out of a 4year downtrend and valuation has always been the reason it might be the reason this year. And downgrades ahead of the earnings. Which is good. Okay normally its good but tim your point is well taken. Ibm and a lot of good people there. But this is not money maker for the investors for a long time. And color me cautious just because i think this red hat acquisition which they paid a lot for, i think north of 34 billion, is showing that, look, recurrent ref tu extreme we know is what big cap megacap tech and Google Microsoft and amazon and google now get on the multiple thats what its about because if they can go to Software Sales to recurring revenue hand now about 20 the size of amazons Cloud Business at 7. 2 billiondollar number i want meaningful and real weve been looking for the stock to make the turn i dont think you need to jump in tomorrow. And say its a brandnew day. I wonder if the last trick will be the break up the two businesses, the faster businesses we saw it at hue lit and she was the obvious person to preside and find her way to the door but i dont think the solutions are big enough to make the difference in the legacy business ibm has i dont find it too exciting do not expect survivor investors to pile in. I find if really exciting here. There you go. Everything you guys mention are positive catalysts for the stock. Lets just say the stock has gone no where a long period of time that tells me current management probably isnt the people you want in there. So Ginni Rometty retires the stock pops if they talk about breaking up in the environment thats good the third thing is they have the 4. 5 dividend yield. In a environment with anything getting bid with a yield and ifd a good dividend yield and multiple catalysts you dont care about growths. But beaks, do you think this is the kind of market that this is the market unerewarding unpolished gem xochitl. What needs to be done. They are turning arndt the revenue 49. 5 dividend yield thats enough. And 12. 5 billion of Free Cash Flow in 2020 these guys are giving you some sense i would argue, dan, the market rewards almost anyone i think the market is looking for relative value also in megacap tech where its hard to find any value upon a relative basis to itself, you can make that argument with ibm. But im not ready to jump on the team. The analyst kbhunt rate something hold on ank. I dont know how many big caps are saying that. Without picking on ibm, guy, this whole thing about if you are 60 you got to go, this is dsh these are stupid policies now arent they. I hope thats the case. Im on borrowed time. You got the companies doing a huge deal with red hat if someone space virginia rometty. Ive heard gina guinea and virginia. I said her actual name. Guy hit it with a ginni i hit her with guinea gina i should have said the ceo of ibm. With that said i think its a perfect time to leave for her. Microsoft five years ago everybody was saying microsoft is dead in the water cant turn the Aircraft Carrier around. They got in the different business mix and new ceo and look at the last three or four years. You could do the same with ibm. You hit the age you got to go seem like relics from flory era. But whatever sticking with ibm we are hearing from virginia, Ginny Rometty live tomorrow live from the World Economic forum in davos. Lets turn to another big name. Netflix trading higher after reporting results. Julia boorstin in l. A. To break down the numberings. The stocks up julia but the subscriber numbers maybe not what everybody was looking for. Brian netflix did add more subscribers than expected in the Fourth Quarter 8. 76 million subscribers, surpassing the 7. 6 million the company itself forecast. But growth did continue to slow in the u. S just 420,000 u. S. Subscribers added versus the 6 00,000 the company projected. And their guidance for the First Quarter was the addition of 7 million subscribers worldwide missing the projections by 1. 5 million subscribers. Ceo Reid Hastings highlighting witcher, despite the launch of disney plus and apple tv plus. Saying its tracking to be the best tv series with 76 million household watching in the first four weeks coming up on the call starting in about an hour were sure to hear hastings talk about competition. He wrote the viewing growth is consistent with recent quarters despite a number of new rivals netflix announced its changing the way it measures viewing no longer counting a vau as 70 of the episode. Now choose to watch. Watching for at least two minutes. So we have to see if they have anymore commentary about this. Its already drawing buzz online and also if they say how many people have watched Martin Scorseses the irishman. They said it was popular but no numbers from netflix yet brian. Hold on julia did you say if tb somebody theoretically watches im doing the air quote for two minutes they are considering that a. You yes. Two minutes. Im looking at it they say they are reporting on household accounts that choose to watch a given fielgts. Choose to watch and did watch two minutes. Thats long enough to indicate the choice was intentional thats the precise definition. They say its similar to how views are measured on youtube, the bbc player or how they account the New York Times if someone. There is auto play. If you sit there and do nothing it keeps going, right. Well only if intentional viewing if you click to open something if you watch two minutes. It seems they would not count auto play. As you can imagine this is already sparking some criticism on twitter. Yeah, well nothing sparks criticism on twitter its a land of compliments and happiness thank you very much julia. We go on the numbers saying 26 Million People watch the irishman, if you look at it, 2 minutes or something all the numbers go up. But we need as investors to realize this and be careful. I would argue that if you watch the first two minutes of the irishman you didnt need the other three hours. Wow. Coming at it fire. Martin scorsese hearing that. You dont like to see a Company Change the metrics when theyre going through some competition or some struggles or that type of thing what concerns me more about mere is the slowing growth in subscribers coming up. They burned through 3. 3 billion worth of cash. They say thats but the big longterm company. Now multiple investors are coming in and taking market share from netflix and for me its a no touch. There is problems in the data we have to hear the call but you think about theyre anniversarying the price increase last year whoa you think about the competitive offerings that you have some of the Richest Companies on the planet thinking of apple and disney who are under pricing products giving the first year away for free and taking back all of their content. I think thats a huge issue. And then we have all the other launches the point about the peak cash flow burn, you are telling me theyre losing you a the best content and have all the new competition subdsing the offerings and they are not burning more cash flow, tacking on a ton of debt i dont see it. Well, i think youre right to talk about the lack of pricing power. When they got to 15. 99 nobody blinked. A big day. But disney plus is out there and apple plus making the announce many and beating on total globe subs and underperformed in the u. S. And any say thats why. If im bullish on netflix im telling new a move away from linear tv and reid hayesing was talking more about this than competition and i haerds the rising tide and all that stuff a decent quarter, the number, dan, the number you worry about in terms of pricing is the cost of content and theyre spending 8 billion in 2020 on content as they look at the competition its less about how much they can charge its how much they spend. Its a great time to be alive if you are a content producer. Never another time in global history. Lets bring in somebody who doesnt have to speculate. Lets bring in tom rogers if i gave all the titles, the show would be over a netflix view just all your. Guest on fast money thats the one. Thats what we like to hear. Thats why you keep coming back. Is this peak netflix . I dont think so at all im optimistic about the future of netflix you got to remember theyre playing a different game than everybody else next year they are likely to introduce 130 International Series were talkings about as Company Growing globally at close to 30 million subs to put it in perspective hbo over the last five years with game of thrones once in a decade kind of hot property to have on paid television, grew 4 million subs over the course of that tenure. Netflix is in a very Different League than everybody else the issue i dont think is so much are they slowing because of competition . People thought they were slowing because it was binge and disconnect find the favorite series binge and disconnect that didnt hurt them. Is new competition slowing them a bit in maybe but the real issue is they hit 607 million, two thirds of all brad band subs they grow based on the demographic trend. Were seeing below 20 million cable and satellite household next year for the First Time Since 2000, 20 years ago a trend of discontinued disconnect they benefit from that Slower Growth but growth. Growth overseas tom. No. We get myopic and look at the u. S. Talk about hbo max and. Im talking about in the u. S. They will grow with the demographic trend that young people are not taking cable and satellite anymore. Younger household are taking netflix and streaming services as that dplo grows older they will benefit from the overall trend. It will not be as fast as overseas but continuing to grow. Now the idea they are spending overwhelmingly on programming compared to everybody else is absolutely true. But if you do the math and you believe they are going to be they are 165 million global subs now probably 175 million by the end of next quarter something close to that although they guided a little lighter. I think its not hard to see 300 million subs in the future at 15 rpu globally which with the price increasing they have taken you can see that happening. Even spending 20 billion a year, 12 billion on ormgs you can see this thing throwing off real cash when they hit those numbers. Thats what everybody is looking for is this a cash hole they never dig out of or does it produce meaningful cash flow i think if you believe they can hit 300 million subs at im sorry at 15 a month type prices, thats easily attainable. Tom, i saw your appearance on the squawk box last week and you were brilliant a wolf in peacock clothing, thats genius. But are people underestimating comcast . The market is rewarding but do you think there is more reward to come. I think the issue with you will a the other companies other than nets flicks and amazon is a separate category. Whether tom cast, hbo max, whether youre talking about cbs, all access, talking about disney, no matter what their streaming play and theyre after transitioning to streaming entertainment they got to manage the downside of the business and the downside of disconnects and churning cable and satellite is a big issue if you are netflix and dont have to worry about that, you dont have to worry about collapsing theatrical windows and releasing movies to first run and all the others do among many other issues they have to manage on the downside they have a much more difficult play. We got to let you go but i have to ask about news and ports. Right now direct tv is only one with the nfl sand ticket people say why on direct tv . I believe it was a 15year contract should netflix go after the nfl. I dont think netflix needs to. Okay. There will be competition i think for the packages from the faj ing owe phang crowd. Amazon, google, others but netflix as a Pure Entertainment play is pretty well positioned. I think the issue is that the streaming wars on entertainment that everybody is focused on is missing a big issue. Which is when the cable and satellite disconnect happens and the bundle continues to decline those subscriber fees that are supporting news, programming, like this, and sports programming like espn. I like where this is going. That has a dwindling revenue base and the issue for all the traditional guys among other things they have to manage on entertainment transition is how they manage all that Live Television programming which will be the guts news and sports will be the guts of how does that get supported over time and thats the big question that people are no where near as focused on as they should be as the entertainment wars play out. Its a big question big question for a lot of people around the desk as well tom rogers great to have your views. Thank you for having me. Always welcome back mr. Fast money tom rogers. Guy what do you think. I think he is right about netflix. He is a stud i say that all the time in this business what do they call that thing mt. Rushmore if there was. How about the god father. Without that he could be that as well all those things i agree netflix this quarter if the market doesnt sell off netflix on this quarter where they have the opportunity i think its trades back to the april high if the stock doesnt rally. If you look at the highs from 2018 its such a laggard there is a lot of things i love tom to death. 15 rpu for this Company Company globally is a pipe dream never happening. What is it in india all the other places theyre never in china to me i think that that 300 million subscribers a long ways off. Theyre not getting 15 rpu outside the u. S. I think we have not talked about the stock until you dan. The bottom line it underperformed the triple qs stocks done nothing for two years. Tells what you need to know about the company needing to be profitable sooner than later despite the fundamentals and structural stuff. Good constitutiono discussion on netflix a twoyear stock thats been flat boeing dragging down the dow. Facing another delay for the max. Whats next for the boeing and investors. Tony dwyer says time to take profits now. Why he has turned cautious where he cease says we are headed from here you can watch or listen on the go in the cnbc app live fm mesqrotis uare and back after this huh, fifteen minutes could save you fifteen percent or more on Car Insurance. Everybody knows that. Well, did you know pinocchio was a bad motivational speaker . I look around this room and i see nothing but untapped potential. You have potential. You haveoh boy. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of Wireless Network, designed to save you money. Switch and save up to 400 a year on your wireless bill. And save even more when you say bring my own phone into your voice remote. Thats simple, easy, awesome. Click, call or visit a store today. All right. Welcome back np another delay for boeing shares tumbling more than 3 the company saying does to it see federal regulators signing off on the 737 max return to service until june, maybe july or later stock now at the lowest level in a year are even more delays on the way . What night it mean for the stock. First of all this is boeing doing a complete 180 in how they approach the market. Doing this with conservativism which is something i think the faa wanted them to do. If you listen to the new Management Team theyre on a Charm Offensive in that direction. When you look at the just the estimates on the company in terms of Free Cash Flow, leverage, every push out now is something handlingisting pugts in stock price. Preying 320, 325 and you can bend around the numbers but the breaking was a decided break i think on the chart. I agree with him. We have said that they had to hold the 320 level it held bounced looked good. This news is disastrous. The 293 three on Christmas Eve of 2019 is absolutely in the cross hairs. I mean now the market is going to continue to shoot first ask questions later and boeing is absolutely in that in that space. So i think you see 290 before you see is it back up to 350 here breye has anybody dove into the right now we are talking about getting the plane back up to service. We talked about slot, maybe im wrong. But nobody discusses what happens when it returns with the public and the airlines. Its going to be hit to the airlines number one missing the planes through the summer. Do we look at ual or american and southwest . What happens to the airlines when it returns to to service if a good percentage of the passenger refuses to get on. Everybody i talked to. You think so. Most passengers are saying i dont want to be on it. I brought it up people say its hogwash. I asked a lot of people i dont know anybody saying they get on it maybe you rename the plane i dont think that works the other thing we didnt price in now the you have the reputation aldamage to boeing. Every analysts looking at the products reports of the air force not happy with the products. I dont think 300 holds. You wait until Warren Buffett starts buying. It comes out Warren Buffett bought it 10 below market thats the day you buy. I cant think back in my career that had a company with 11 billiondollar in one year that goes to a billion and the stock down 30 from highs what six, nine months ago. To me the stock has been out of wab whack. Disconnected from the fundamental ftds i think june or july seems optimistic at. At some people you see the analysts taking rach et cetera to the 2020 estimates. But remember it traded at 100 early 2016 above 400 last year there is more room. They were producing in the 800 to 900 phil lebeau says no this is the 737 product. This is their product. But they have a ton of inventory already. You guys could all be right on this but why wouldnt they be more conservative rather than more aggressive thats what i heard today. I dont think its up to them i think the faa has a huge part to play. For sure. They are going to be uber conservative the fa. A with this. Well past june, july. Just what other choices do you have out there in terms of flying an airplane and i think thats something thats keeping boeing in better stead. Ironically they are still flying the max fly it around to various locations. They are in the air occasionally they have to get it from tulsa to victorville, california. You can head over to the website for more month that. Here is what else is coming up on fast. Asian stocks getting rocked as a mysterious new virus spreads across china and the first case confirmed in the u. S. We break down the impact in the markets. Plus some of the greatest investing minds in the world converge in davos this week. And they have very different views of where the market is going. So who is right . Weve got that and a lot more when fast money returns. New york state is building for the future of your business. With a nationleading 150 billion commitment to infrastructure, were creating state of the art, 21st century transportation hubs, constructing new bridges, bringing highspeed internet to every corner of the state, and committing to lowcost clean energy. With infrastructure built for the future, the companies of tomorrow can thrive here today. See your future at esd. Ny. Gov. Whwhat do you see . He world, the companies of tomorrow can thrive here today. We see patterns. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, 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. All right. Welcome back were following a major developing story having impact on the markets around the world. Center for Disease Control confirming the first case much coronavirus in the United States lets get to meg tyrrell onway we know and dont know at this hour, meg. The first patient in the United States confirmed to have the Novel Coronavirus is a man in washington. He arrived in his county where he lives on january 13th after traveling to china, where the outbreak has been happening. Authorities are working on identifying anyone contacting him onto be arndted for fever and respirates serious i want in the same family virus as sars and mers and spreads between people whats not known is how easilily it spreads we go ma major difference in the scope of the outbreak so far more than 300 confirmed cases mainly in china and nearby countries and six confirmed deaths in the u. S. The cdc implemented entry screening at three airports San Francisco, lax and jfk and today says its expanding the screening to atlanta and chicago as well. The patient in washington arrived before the cdc put the measures in place. Meanwhile an Emergency Committee of the World Health Organization will convene tomorrow to determine whether the outbreak constitutes a Public Health emergency of international concern. And what recommendations to make to manage it and work is already ongoing on potential vaccines and treatment. Vac teen at nih and one by the company Regeneron Joo scary stuff and big story, meg thank you. Outbreak fears rattling investors around the globe asia markets tumbling overnight. Check out casino stocks. Las vegas sands, m elco selling off Big Properties in macao. There is clearly real fear surrounding the outbreak tim, what is your take on the market reaction. With that, any insensitivity there is sovly people sick around the world this is a big Global Health issue. But i can tell you from a market perspective and someone that was investing in emerging markets when sars was first diagnosed and became the epidemic people the thought was pandemic ultimate Economic Impact was zero short lived if anything. And i think the reaction today is one where people regret selling into this kind of weakness. Tease thats fair enough. But wynn resorts for example look at the april 20th high. Came in at 151 look where we topped out 151 wynn reports january 30th. With these headlines, my instinct is you have a bit of double top in the shortterm and it sells off people arent guying until you get the all clear you have to wait post earnings to reengage in wynn. The next guest case the coronavirus. Tony divide are, the chief Market Strategist at cannacord tony we asked you to come on and werent dealing with this a couple days ago. Well get to the primary call in a moment how does this coronavirus in 2003 with sars you saw chinese domestic spending absolutely collapse it came back. Up number. But collapsed and the world was rattled will that happen again. It had a shortterm impact. It was a market not prepared for that kind of disruption. But in the u. S. I go back and look at that 2003 occurrence and didnt have any impact at all. It had a lot of fear in the headlines but didnt have a market impact. Im with timmy, brian. It shouldnt have a long thats nothing to do with why we downgraded our market. Thats what i tried to get at in introducing but at the same time it layers on. Its one of the things that i think you know the most important thing we can do in the media at times where you get the headlines and fearbased things and stem step back and look at the history of these things with impact and it creates a shortterm drop pu but ultimately when it is resolved you get it back unless you believe its world war z with brad pitt you got to bet its temporary and not a great investment decision. So tony, youve been bullish and spot on. You are turning cautious i want to kind of quantify that. Is this a shortterm call where we got overbought too far too fast but the bull market is intact or are you changing the tactic. The last few times ive been on ive been talking about not chasing the market hold positions right. I was as you know i was bullish last year. I was fully invested i was saying dont add new money but stay in the defensive sectors. Its now so extreme especially in Information Technology that it warrants a more aggressive takeprofit call for example we looked at when the rsi, the relative strength index for the Information Technology sector got to 82 on a weekly close so the 14week rsi got to 82 its only happened four times before since 1990, b. K. , the median drop was 13 . The only very low drop in info tech was 2 appear even there that was in 1995 you could bought better in 1996. The point is its not a if you look at the chart, knows arent the peak. I dont want to make it the peak call but it can be a nasty peak and i think thats whats lining up. Any change to the earnings s p for the s p. No. I love i will not unless there is a fundamental change in the earnings outlook for fed change my target thats chasing my tail my target as you no is 3440. Been there on 172 in earnings i see no reason to change that number. If you look at q4 tracking below 2 gdp appear look at the q4 saw maeft expansion and three rerate cuts how do we get the high single digit Earnings Growth on s p if we dont have more accommodation. What youre satisfying globally one of the reasons we stay buttish otherwise i go negative zbloop the global month father authorities are continuing to print money. The Economic Data gets weaker they will come out and do more secondarily, a big part of it was this inflection off of such historically weak global growth. Like all the market pmi data goes into mid2019, tragic, about as bad as youve been in history. Now you inflected positive, the new export orders picking up, the percentage market pmi shag positive year to year changes picking up here is the risk to my story i heard a couple of guys and gal talking about how the risk is if you get the economic acceleration and yields go up and fed tightens that will do it i dont think thats it. I think ner looking at the wrong thing at this point. The risk is you have had the monetary easing and the fet is too tight. And you debt the temporary lift in growth and expectations and then it rolls. Im watching the initial unemployment claims, the Market Manufacturing data listening to conference calls. One thing i point out going into the earnings season even though youre right, dan. Things have been reduced a bit everybody is optimistic after the financials which had been one of the overweight sectors. Youve seen a reduction after the good news in the financials, you have seen a reduction in the blended estimate of bottoms up estimate so exfinancials even with the better than expected report they have come down. We wont call you bearish dwyer its not bearish. No. It might be the peak more now tony we appreciate you coming on. Thank you, breyen a major interview tomorrow morning you dont want to miss President Trump speaks with joe kernen at the World Economic forum in davos switzerland tomorrow morning 5 00 a. M. Eastern time set the dvr as well. Joe with President Trump speaking of the president , coming up, a big day in washington the impeachment trial getting under way. We take you live to capitol hill with where we stand right now on a long so far contentious day one. Speaking of earnings who was one red hot Health Care Stock reports results before the bell. Why options traders bet on it big time when it reports we give you options action. There is the mystery chart much more fast money right after this dont get mad. Get e trade, dawg. All right. Just in case you miss to do a few minutes ago before the break on a major interview tomorrow, President Trump sits down with joe kernen at the World Economic forum. 5 00 a. M. Eastern time np. Its in davos switzerland. If you are on the west coast set the dvrs but joe sits down with President Trump. The interview comes as the impeachment trial gets under way in the snoot ment ylan mui is live on capitol hill where where we stand on day one as it wrps and what could be a multiweek process. The Senate Hearing appropriatings whether to subpoena documents from the state department over the aid to ukraine. Its not processes going to pass but its part of the strategy to methodically force debates and therefore public debate over whether witnesses should testify in the trial and what types of evidence should be admitted. The real test will be witnesses and documents. Will our republican senators put pressure on mcconnell so we have really witnesses and documents produced either now or after the arguments are made. Now schumer spoke to reporters during a brief break in the proceedings because senators are actually not allowed to speak while the trial is going on. They cant use electronics they have to take handwritten notes. And there are reports that a few of them may have nodded off during parts of the trial. Schumer did not say, though, how many amendments democrats plan to bring up tonight. So everyone is bracing for many more hours of debate ahead and then, brian, tomorrow Senate Republicans are turning around and hold pennsylvania signing ceremony on the usmca trade deal ner trying to create a bit of counterprogramming to impeachment. Ylan, thank you lets go around the horn guys and trade this we had a guest on the exchange today, guy adami. Who is is that. Dan christian of strategyis they hit about 75 of the stooul constitutional investors they wanted him to be reelected but they believe that. Is there a risk there is. I agree, i think there is a tail risk to this when you couple it with with what tony there is 20 indicators and metrics flashing red if it was a vacuum id discount it but i think there is inherent risk and think a vix south of 123 makes zero sense. Its there. It is. Its coming up, cold, beautiful, tons of opinions swirling around. Were taking a deep dive into the view from davos, what the big money and thinkers are saying later on j j reporting earnings tomorrow what canou y expect from the red hot stock . More fast money in two minutes. E difficult. To challenge your thinking and test your execution. But great minds are driven to seek out the complex. They see what others dont, from an angle others wont take. They learn that embracing those challenges is what sets them apart. I am justin rose, and we are Morgan Stanley. 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. They get that no two people are alike and customize your Car Insurance so you only pay for what you need. What do you think . I dont see it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Rowithout the Commission Fees and account minimums. So, you can start investing wherever you are even on the bus. Download now and get your first stock on us. Robinhood. Announcer netflix earnings impact, the rising stakes for competitive eng and content and subscribers. What investors are watching now. Squawk on the street 9 00 a. M. Eastern. Im more optimistic about stocks than imabout bonds. Okay. Because when you look at earnings, i mean i think were getting some good Earnings Growth this year i mean, the economy when you have an Unemployment Rate this low, you know, you bring in a lot of consumption, especially people that are lowwage workers, they tend to consume 100 of the income. The issue is you cant jump into cash. Cash is trash. Okay you have to have a well diversified portfolio. First of all you have to be global and you have to have balance. You have to have a certain amount of gold in the portfolio or something thats hard. Were just again in the craziest monetary fiscal mix in history. Its so explosive. Its it defies imagination. And i dont think anything has changed. It reminds me a lot of early 99. All right so that is part of the view from the World Economic forum in davos. Obviously three wall street titans there, three different opinions on the market dan nathan, who do you believe is getting it right out of that esteemed group. Can i say who i think dan thinks. Im sure dalia and tudor are doing fine. Struggling. Here is the thing i think and trump when he spoke he knocked on the fed this morning. Knocked on Interest Rates as too high i think whats a great trade this year is long tlt, long u. S. Treasurys yields going lower i dont see the impetus for them going higher if we get the Earnings Growth they still dont go higher what happened when rates went up with stocks at 2018. Stocks creamed. Whatsing from in the bond market is you saw real rates, ip flakes minus bonds go negative out five years this is the feds tips, the treasury inflation that hasnt happened in five, six years. And the last time we saw that you saw gold rip you saw stock rips you saw any hard asset rip why . Because if you hold money five years you are actually losing money. Thats a huge driver of assets prices. Which gives you a little dahl owe there. Not surprisingly you had a full spectrum dahl owe sat in the milled, not only talking about diversionation but the risks and at the same time putting together a portfolio its hard not to in this environment think about asset bubble moments this is what the fed set out today. They set to create asset inflation and are very successful is it may not be in all best interests. Opinion and it may be financial oppression but thats what we have here. Obviously, listen scott minor guggenheim more of a bond guy. But he is saying bonds stink go with the equity markets he is throwing in the towel. In his opinion im more into dan nathan camp. And i think tlt rallies. Greatest history in the history of mankind and listen to Paul Tudor Jones think about it he thought about his words and he still came out with something that provocative. Think about in 87. There you go. We got more coming up from davos tomorrow in fact we have an interview with the president tomorrow morning. Joe kernen, President Trump sitting down live from davos 5 00 a. M. Eastern time squawk box starts early tomorrow because of davos if you cant tune in live set the dv wrchlts also on being deck, jamie dimon, the ceos uber. The special squawks box, longer version. Ginny romanticy in that great line. Feeling good, coming up, how options trader gear up for j j earnings plus a check on the cramer cam jim chatting with the costco ceo. Stock on fire this year. Should you buy it in bulk . Thats the full interview at the top of the hour. In the mnte,eaim live at the nasdaq and back right after this thanks for coming all this way to get me. Do you have everything . Ran out of that car so fast, its hard to tell announcer treating others like wed like to be treated has always been our guiding principle. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Or here on a wifi hotspot. Lte Xfinity Mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. Save up to 400 a year when you switch. Plus, save even more with 100 off galaxy a50. Click, call or visit a store today. All right. Welcome back shares of Johnson Johnson hitting another 52week high all this ahead of tomorrows earning. And options trader get betting on more gain on the report of results. Lets get to mike khouw in San Francisco to break down the options action. Sure we saw two times more than the average daily options volume into earnings right now the Options Market implies a move of 2. 1 slightly less than the 29. 5 it averaged the last eight quarters we with where we saw the opening tieft was in the february 28 be expiration 152. 5 strike calls. Purchased for about 1. 5 a buyers of the calls risk about 1 of the current stock price on the bet the stock could rice 3. 5 on february 28th to get above the break even whats interesting to me, you look at the distribution of prices after earnings you see how inexpensive options are. While asset prices and Everything Else have gone up, options prices are low all you would need a 3. 5 move to the upside to benefit or if it went down more than 1 you are better off buying the calls than the stock. All right, mike, thank you very much. For more options action tune in to the full show friday at 5 30 p. Meaern me. Stti up next, the final trades. Announcer options action sponsored by think or swim by Td Ameritrade [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu announcer final trade sponsor by interactive broekser. Minimize cost. Maximize return. Obviously people think of one of our main competitors in uber but i think about the competition as the transportation status quo. And right now, the average American Household spends 9,000 every year owning and operating a car they use 4 of the time. Thats ridiculous. The opportunity is to give people Affordable Access lk transportation like never before that was the lyft cofounder and president john zimmer speaking to cnbc noupzing a bicycle sharing partnership with lebron james. Read more the website. Lifd underperforming uber there year tim your thoughts on the stocks. Lebron is gold. But looking at the stocks up 11 . Big run. Big ground grade in of the last two days stifle downgrades. Doesnt clays it. Dont chase lyft. Around the horn and the final trades pip tim start with you j j might be a bit of chase. But this is a different company. If you look at 2020. Farm iaaf gross 26 . I think the medical devices grows quick here if you are nervous in this environment this is a Great Company fundamental. Bk. The big knock on gold is the costing money to hold it in the negative real rate environment thats ripping higher netflix i wouldnt chase after that quarter and subguidance to me. Islando id sell into it. Seller of netflix. Good Energy Despite my butchering of her name i think ibm turn the proverbial corner. All right mikes the thank you very much for watching. D thimu tomorrow mawi j cramer starts right now. My mission is simple to make you money. Im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica my job is not just entertain but to educate andteach you. So call me or tweet me jimcramer. For a moment, yeah, about mid morning, this market seemed unstoppable. We got a deadly virus wreaking