They have agreed to a loan of 5. 5 billion from the Treasury Department you may remember they initially had an agreement on 4. 7 billion to be borrowed they have up sized it to 5. 5 billion. They have to take a draw of at least 10 . Theyve drawn down 550 million today. What does the Treasury Department get for this . 10 of American Airlines if american borrows about 9 billion, the Treasury Department will get americ 900 million if youre keeping score, american is now sitting on more than 42 billion in debt the stocking is moving higher in the after hours session it remains to be seen if they will need to borrow but the fact that they have said we may need to borrow another 2 billion in addition to that 5. 5 billion, its clear they realize theyre in for a rough six months here you will not see a big increase in passengers. That means its going to be tougher to get back to break even. A crazy low price target on this, it was 1 or 2 price target on american it is known as the weakest Balance Sheet out of all the airlines this is the one to worry about if you want to go into the best Balance Sheet, its delta or luv. Im in southwest because i think that the Domestic Airlines are going to return quicker than International Travel but we have seen a flurry of positive headlines coming out in the airlines as of late. Grasso has a crackling mic. Well work on that some of the airlines have better Balance Sheets delta, southwest, as well as spirit, theyve all said they are not going to take out loans. Bonawyn, would that be the better bet for an investor right now as opposed to ones that are taking out loans and just building up their debt levels . Yes i mean, i really couldnt state it any better. When you look at the enterprise value and the debt balance these companies are taking on, this isnt because they see an investment on the horizon. This is literally in terms of them managing their cash burn and giving themselves enough runway to get back to some type of normalcy when it comes to bookings in terms of wh s of you want t heading to the deltas, southwest, you know, literally anyone but american. Theyre in the worst situation so that when things do right size, you can look at ways help shareholders rather than using all that cash to pay down debt. James, im wondering if you would invest now for that other side scenario. Weve got a crisis opportunity portfolio. We think that when were talking about industries being rescued, obviously transportation is always going to get support from the government, anything that involves trade or economic stability. We like jets, the etf for this base its so difficult to predict whats happening in back room, board room conversations and government negotiations. So we buy the whole basket we like this sector as one thats going to recover when we get to this bottom of this market. I get that thresis that ther will always be a Government Back stock for certain ones what happened to bear stea s stearns. Thats what you have to worry about in this scenario 42 billion of debt. For the folks at home playing the airlines as a trade, as a recovery trade, but remember if you own the equity, if that debt goes bad, youre wiped out i think you have a real tough time i would stay away from american, the ones with the highest debt levels frankly, i would just trade these things at this point in time to bet on a recovery. I would stay to the domestic ones i love so forth. It remains the case where its just a few champions that pull things together. When theyre down, the markets down when they try to recover, you put on a recovery like today it doesnt fix that. Carter, thank you well see you on options action in a little bit. Steve grasso, i want to go to you. We never got your take on this prediction for a big pullback which will start next week what do you think . I love data james gets a thumbs up for that. I had felt as if we should back off 20 as well. Thats why i threw out that number of 2850 i think were heading there. When you look at generational bottoms, when we look at the covid bottom, it took 23 days to go from the highs we saw precovid to the covid low of 2191 then it took 99 days to get back to that level. So the question is, as we said the last time i was on the show, is it a dip and you have to pick your dips worth buying i think you could start to nibble once we break 3,000 in the s p. To do it now, youre setting yourself up for failure. To break 3,000, more specifically 2850 was the downside he felevel you actually cited. Thats the level you would say thats my dip. Thats my dip my dip is 2850 i want to be about 20 down from alltime highs i think carter had just mentioned, once you go down ten, the median is down 27 i think thats the time we can start buying james, whats your dip . We got 2890 as a key support level. We think 2890 is imminent. There well see where our Central Government comes in to offer support again. I think that is something we have to consider either way, were coming down. Cruise lines hitting some rocky waters this year well break down the bold call that says these names soaring datoy. Later, five stocks have been flying high all year long. That trade and more when fast money returns a cold call on the cruise lines today making some big waves. Shares of Royal Caribbean, carnival and norwegian cruise lines all surging on this news is it time to set sail on these names . Weve just sat here and spoke about the issues, particularly the debt balances that face the airlines the cruise lines are in this exact same situations. Carnival has 25 and Royal Caribbean has about 20 billion of debt. Same situation, debt laden they do have some bookings projecting out to 2021 and 2022. The recent downgrade and now the upgrade, theyre saying because the deadline is the end of this month and theyre expecting the cdc will extend that, but will say positive things about the guidelines et cetera this sounds sort of like a tactical call because its this Near Term Upside from the cdc. Grasso, what would you say i do believe in that tactical call when you look at it on Royal Caribbean up 50, current sale is around 64. They have the price target for 68 or so i do think you can start to dabble in these. They have this healthy sail panel. If theyre going to be testing people before you get on and taking less excursions and maybe testing people in the middle of the cruise as well, theres a lot of people who love to cruise so i think you can probably nibble you dont have to bite, but i think its okay to start nibbling on this i agree with bonawyn none of us can predict what covid is going to look like six months from now, but what i can predict is were closer to the end than we are to the beginning. I hope thats true. E lll break down what is driving thray and where its headed for here later its been a turbulent year for Airline Stocks i felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. This thing is going to double off the lows. It has been one of the strongest sectors in the market, primarily because of work from home, go to school from Home Companies are going to continue to spend on that i think its right when you have a market up as much as it was today. Its not without risk because these things also got hit the hardest on the downside. I think its interesting id buy a third of what you would want as your position. Lets see what the next week brings. Zoom is up 22 . Time for the final trade james . I am all in january 2021 calls. I think volatility is the only place to be here. Steve grasso . International paper had a price tag today. It helped all the container board stocks its west rock was up 8 or 9 . They are expected to follow next week buy. Bonawyn eison i dont think it bodes well for gm brian kelly im looking for things that are going to bottom here im looking at copper and gold the United StatesPostal Service is here to deliver your packages. And the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. Every day, all across america, well keep delivering for you. Every day, all across america, good job, michael does. Ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. I got it all from you im always pushing through i know well make it to the finish line i know youre waiting on the other side im like you ondemand glucose monitoring. Because theyre always on. Another lifechanging technology from abbott. So you dont wait for life. You live it. Happy friday im melissa lee. We have a jam packed show. Airline stocks hitting some turbulence this week the chartmaster says buckle up, the etf is ready for takeoff hes got the charts to prove it. This is an important thing to say, theres a difference between investing and trading, right . Its not about how much debt they have. Its not about