Because we are riding the rails. Why now could be the perfect time to get on board with the train stocks stocks pushed higher again today on renewed hopes that a stimulus deal will finally be on the way. They closed out their best week since early july the strength was broadbased semiconductors, home builders, retail, transportation stocks. All of those hitting record highs in todays session but we are about to kick off earning season as well lets pose this question to you, steve grasso how are you positioned heading into a week, few weeks and maybe a couple of months full of micro economic catalysts i was a little toerlz staeart the rotation into value tech now that we see chances of a biden win are increasing, you dont want to be in an inflationary environment you dont want to be in tech with a biden regulation because there is a Regulatory Risk you will have inflationary risk and cap gains taxes are going to double you want to sell your winners now. Thats where everyone crowded into tech. You want to sell them before the end of the year and buy what hasnt been performing, and thats value to me market went from fed to vaccine to stimulus. Cut out the noise and buy the things that havent performed because those are the things that should perform in the First Quarter or so and Going Forward in a biden election. It is a leap of faith, but we have seen value outperform for the first time in any length of time why do you say that the likelihood of a biden presidency increasing is good for inflationary type stocks if you look at it this way, you have seen the tenyear jump. We know where the chairman is on rates, but rates can move higher without effect the tenure jumped 55 on yield basis since august 20 in the last handful of days. So when you are in tech you dont want to be in tech in an inflationary environment because the cost of things they are selling and the cost of things that are their costs arent the same you want to be with them in a deflationary environment you want to have Pricing Power those are the ones that could raise prices technology, you never raise price. Thought that infrastructure gets put into play, constructioningconstruction aggregates, that type of thing every time you think you have it, it was a head fake, lasts one or two weeks and goes back to tech. Is there reason to believe this is rotating into value i think so and the names that would do well under stimulus what investors have to realize is that both parties want stimulus the trump is saying i want more than 2. 2 trillion the democrats are saying 2. 2. The market is looking ahead and says no matter who wins, we will have stimulus. How that impacts the other stocks and value, what the fed did, they put a bid under Financial Assets if you have fiscal stimulus, money in peoples pockets, jobs being created besides wall street and a couple of hedge funneled gu fund guys getting richer than they do. Earnings dont matter as much. Then why are we paying such close attention to earning season we have more commentary. How important are earnings given what b. K. Said i think what he is saying is they dont matter as much visa visa vee they give you insight into how we have been emerging in his tor cal recession. The one caveat i would put out there is if we get a blue sweep, i would be hesitant about capital because of the deRegulatory Risk coming down the pipe if indeed biden wins the election mr. Mills, i come to you what parts of value are the most intriguing to you beating up retail, bricks and mortar there is a whole bunch of stuff you can put on the Shopping List i would like to disagree, but we have been positioned in a way or our positioning will benefit from rotation in the value i have been skeptical in timing thinking we were a little early even now but investors are looking at the polls and seeing a potential for blue wave and seeing potential for a larger stimulus package. That means dollar negative most likely we have seen materials start to outperform you have seen emerging markets start to outperform. I think it helped the rotation into value and you have to assume if we get this big stimulus package, at least near term, it will be a boost to the economy. Unless something changes relative to the outlook of the election, thats what the performance looks like for the next few weeks at least. What part one Industry Group you think will be key to the trade what will it be . I like materials and industrials. I think they will both benefit materials from the weaker dollar and industrials regardless of the political environment. Even if you get this green energy push, some sort of transition, you will need big equipment, caterpillar speaking on that, we are going to check on the dow transportation index that hit an all time high. Jim cramer sees high in railroad stock. His picks are Union Pacific and Norfolk Southern will these names chug higher transports have momentum for the first time in a long time. I like the rails. We have talked about fedex a lot. I still like that story. You get a recovery in global trade. In terms of the rails, i think there is a story that goes along with what i was saying bigger stimulus, negative dollars, good for material jim cramer said what moves around materials, railroads. So when you look at the charts of Norfolk Southern and Union Pacific, i think you can do well and play the momentum higher is it validating what we are seeing in the overall market first of all, look at it this way. When people buy value, the first thing they buy in cyclicals are the rails. When they go for the rails first, what they go for second is materials now if you are buying what they are lugging around, you have a double win so they dip their toe in the rails. I think you are still okay buying the railroads this early in the rotation into value b. K. , do you believe it, the transports i do on the trains. Separate it into airline, rails and truckers truckers have done well because of covid and working and shopping from home i think the rails have a place here and probably of the three sub sectors within that, i want to be in the shinsoo chthe o trains i know you have been a fan of west rock for quite sometime lets take us through your thesis and whether cardboard and packages has legs. The more packages you buy, the more container board you are going to need, more packaging you need but another reason, dom, esg how much do you cover esg in your world people are moving away from plastic, moving to paper thats one of the second themes in this right now. Then for the first time in a while, or if ever, china is starting to buy container board from us. They dont have enough trees the export data is starting to show this. That will be a big boom for the industry the last one, pricing. The whole bear thesis has been supplydemand. It has not been in favor of the bulls. Westrock has miles to perform ahead of where it has performed so far packaging details coming up on the show we have a 30 million chip shot and reportedly talks with zylinx is it a hole in e . On and later, General Electric. When it came time for college, the kpmg future Leaders Program was there to help. It was more than a scholarship. It was four years of support, mentorship and training. Now, with a degree in animal science, im my familys First College graduate and im just getting started. The kpmg future Leaders Program. Empowering young women to reach their potential since 2016. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Welcome back there could be a 30 billion chip deal in the work. It is reported that amd is looking at xilinx. Is this the right one . This is the latest of chip consolidation over the last four or five years. It has been a massive land grab i dont want to separate whether the deal makes sense or whether it will happened xilinx has rebuffed overtures in the past they are looking to replicate and overtake a competitor while they are in a compromised situation. It makes sense from that point of view. I have heard i realize i am in the minority here and understand the contrarian views particularly when you look at the previous position. But you have seen the land grab, have a competitor in a compromised situation and this is a prime opportunity for them to take advantage of that. Through that lens i follow the logic. So b. K. , this the right deal or is there another one that makes more sense in your mind, hypothetically down the line yeah, i am not sure if there is necessarily a better deal in the semideal you will be buying verticals in a sense. In a Strategic Point of view, the rest of the companies have done pretty well so the stock currency has done well so i want to buy a broad swap of these because as this consolidation continues, i am going to benefit i dont have to be smart enough to pick which ones are next. So thats how i want to be playing this whole thing the chip deal, if it comes to fruition it has been a while since this was given up as dead coming up, General Electric getting a nice pop, but is it too soon to bet on this turn around trade and later on in options action, we are going global. One region of the world that could be ready tllo ray, and how you can trade it stick around we will be back in two minutes hmms and ahhs heard incall. This was the theater i came to quite often. The support weve had over the last few months has been amazing. I have a soft spot for local places. Its not just a work environment. Everyone here is family. Gonna go ahead and support him, get my hair cut, leave a big tip. If we focus on our local communities, we can find a way to get through this together. Thank you. If you are ready to open your heart and your home, check us out. Get out and about and support our local community. We thought for sure that we were done. And this town said not today. Welcome back to fast money. Time for call of the day shares of g. E. After Goldman Sachs hit the stock with a buy rating it has 50 upside from here possibly your take on the call. Is g. E. Finally a buy . I have been long g. E. For quite sometime not that far above where its currently trading at if you look at it this way, dom, i was impressed that they said this company was going to come out stronger than when it went into the pandemic. If you look where it traded back during the financial crisis, that 5. 50. 7 has resistance. I am sticking with it. I think it has the ability to double is g. E. On the Shopping List in industrial ts for you . We talked about this tuesday night. Steve has a good point between 6 and 7 left it has good support. But i think goldman may be a little early on the call i think about their 2019 revenues, 30 tied to aviation you saw boeing come out this week and talk about the extension of the timeline for aircraft demand. Probably going to be longer than anticipated. Although you are safe to buy the stock, i think you have to be patient for a robust recovery. Patience for g. E. Investors is something people have been dealing with for a long time the final trade peleton, if it pulls back, im looking at it from the trench draft kings i am a seller at 55 and still a seller at 49 you reload at 40 steve tse is going to double. And b. K. , to you, the last word put this one in your sack fwoegold and copper. Coming up next, we are tracking hurricane delta as it closes in on the gulf coast, we have aive lreport from Shepard Smith on the other side of this quick break we will be right back. Welcome back we are following a developing story as hurricane delta takes aim. Shepard smith with the latest. Shep, it looks like it could be terrible for the folks in louisiana and mississippi. The latest is 5 00 eastern update first, lock at the top edge of this, it is so close to land it is incredible. Looks like the eye will go over part of lake charles and to points east, a lot of rain jackson, mississippi, they are estimating 10 matches. 7 to 8 inches for lake charles this thing is going to go inland and rain and rain and rain the cone of uncertainty for this storm. Category two when it comes ashore still a tropical system but not a hurricane as it moves up to the jackson, mississippi area. This storm has weakened a bit. The new report has the central pressure at 966 millibars, which is up. That means the storm is weakening. You can see at the bottom how the eye is breaking up thats sheer, falling apart, not a moment too soon. Jay gray is there. He is getting wet. How are you . This location has intensified in the last 30 to 45 minutes rain is picking up i want to walk you down this the river. It is already over its banks here that will be a problem we have six or seven hours of these conditions left to go. We will see sheets of rain continue to fall in the lafayette area we could see up to a foot of run and wind gusts over hurricane strength it will be a rough ride for the next six or seven hours. This is an area here already dealing with laura, a category 4 storm. They have been working for six weeks and that will be washed away as this storm moves in. Jay is one of the correspondents we have he said vermillion, they are expecting up to 11 feet of storm surge. New orleans, 1 to 3 feet it wont be horrible near new orleans, but on the east side of louisiana, lake charles which just got battered the end of august, that place is about to get hit again. The whole hour at 7 00 eastern coming up next on this particular show. We have options action weep can right here. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Happy friday and options action here is what is on deck. Tonight we are taking you to the other side of the globe in search of opportunity. There is every indication there is more to come. Why japan is poised for a pop. Then the next horse in the race for covid treatment. There is a lot of upside. Tony shows you how to make best of eli lilly. What could be more fu