Vaccine. And we start out with breaking news on disney, putting distribution in the center part of its business. Julia. Thats right. Disneys reorganizing its Media Entertainment business to accelerate its direct to consumer strategy. It says this is in light of the success of disney plus the move divides content and creation and content distribution, creating a new median entertainment distribution group, this group will be responsible for monetizing all content including ad sales and digital platforms liking disney plus the new division will also oversover see operations of the streaming service. I would not characterize it as a response to covid i might say that covid accelerated the rate at which we made this transition, but this transition was going to happen anyway because essentially what we want to do is separate out the folks who make our wonderful content based on tremendous franchises from the Decision Making in terms of where the prioritization is in terms of how it gets commercialized into the marketplace. Weve lost julia, well bring her back as soon as we have it lets trade there because the stock is obviously reacting sharply to the news. Bob had mentioned investing more in julia and investor day december 10 will reveal a lot more changes tim, do you like this news you have to like the news not just because they are telling you that they have had better than expected success at disney plus, but again, think about the content, think about the questions around content and at least the new world order. Also at least in a world where the pipeline into studios has had basically a blocked door so the fact that you are taking the core content creators and bringing them on and making that group a single head makes a ton of sense when you consider the commitment to dtc and that content and that you includes even fox assets that they bought so you have to be excited about it, you have to be excited about almost the sense of urgency around this. And i think if you think about where the power is, the disney content creation was always important, but they now really can bridle that with 60 million plus and i know julia was trying to get fresh numbers out of them, but you have to assume that they are prettynumbers. And investor day is also a catalyst so i think there is more good news coming. And we have julia back. Did you get a sense of urgency here, does it have anything to do with dan lowe being activist in the stock now i did get a sense of urgency, but i dont get the sense that it was due to can lowe being in the stock. You said that this is a change under way for quite a while, they have been working on this for a while, and that this was just accelerated because of covid. Now, of course dan is [ inaudible n [. We are obviously having a lot of technical issues with yao i cant julias shot. Well continue to talk about this dan loeb issed a vow v investinn content. But didnt say where the money would come from nor did he eliminate the idea of scrapping it, he said that every investment is on the Table Including the dividend karen. Yeah, i think that it should be on the table given how much dea debt they took on from the fox deal and the dividend doesnt need to be only zero or what it was. It could be something in the middle so that is a possibility as well but this is sort of an interesting step, some of the structure looks sort of unusual to me where people report to still report to chapek, but under the division i didnt understand how it was going to work and i wonder if this is a step in an evolution that guy talked about with maybe espn spin. Yeah, guy it is interesting i would submit this is in response to the multiple netflix enjoyed for the last decade. And i think disney is saying to themselves if we can focus our attention on this that seems to be successful and we can get a third of the multiple that netflix trades at, you can do the math in terms of where the stocks will be trading so i agree it is a big deal. In terms of espn [ the inaudible espn a hidden gem there if they can [ inaudible we are obviously being riddled with technical issues this evening fortunately we have dan nathan to the rescue. And i would love you to hear what you think of all this, dan. Im just going to pick up where guy left off what i think is really interesting, listen, we knew that they were going to be going in this direction. They launched disney plus on november 12, 2019. So about 11 months ago what did the stock do . Beyond if we have a chart. In the month of november last year, the stock being wewent fr directly to 150. There was a lot of enthusiasm about this and the stock trending up higher prior to launch for months and months so this is where they are going and this just accelerated everything back to guys point about netflix, netflix in 2019 raised prices and they also saw their north american subscriber growth go x growth. So this was a great opportunity for disney to consolidate what was a growing trend and direct to consumer. They have the content, they never needed to spend the sort of money that netflix was doing 15, 17 billion a year and if they can do that for their own content on disney plus, it makes sense. Rich greenfield told us that last week, they have the hulu problem. A lot of optionality here at a time where i think netflix pulled forward, a lot of demand, they are likely to see massive deceleration and i think disney probably sees Pricing Power and the ability to bundle with hulu and espn plus, this is obviously a great move for disney. And for more, lets bring in rich greenfield, media and Technology Analyst great to have you with us. What is your take and you have a sell rating on disney, does it make you more optimistic this is a brilliant move in terms of first steps like disney had to figure out how they decided who made decisions. When you are making lots of content, the real challenge right now is does this go to a cable network, the Movie Theaters, to disney plus there was all of this intern with withal debate over which content went where unlike netflix which only has one price or amazon prime where there is only one place, with disney, there is 20 different places for content to go so step one obviously is are you actually putting and prioritizing this content and putting it in the place that creates the most value i think this is essentially what this new reorg is designed to do, basically, hey, we need to have a core team that all they will focus on is which content we make for which plat form. And reality of what it means for the stock, they had a whole list of movies ready to go to streaming in q4, and they delay t ed all those other than soul but the entire rest of the slate has been delayed until the middle of next year. So they still seem pretty committed to the Movie Theater business and to windowing content. And so it is great that they are reorging, i think it is the right move now we need to know when they say well be more aggressive, lets see them to do it. They have done it with hamilton, now with soul, we havent seen evidence of the shift and i think that is what the market is looking for, are they ready to embrace being netflix. And rich, thanks for joining us and that is where i would like to go on the multiple. It is all about the netflix multiple and does anything that is announced today change the multiple when they went to dtc, i felt like a more hybrid multiple was imperative. But you are the man. You tell us how we look at this. I think that you have to really think about this is not just about subscribers disney plus has lots of subscribers. 60 plus million be subscribers but remember, the arpu is a fraction of what netflix gets. And we looked at a recent study that com score put out, disney is roughly 5 of streaming time spent in the u. S netflix is 26 , 27 . And so it is not just about having a lot of subscribers, it is about how much are they actually using it. Disney plus because there hasnt been that much fresh content hasnt gotten used a lot especially over the age of ten consumers. And so i think what it comes back to is the first question in terms of the valuation for their dtc business is premised on do they actually treat it like netflix. Netflix doesnt put movies in Movie Theaters for 65, 70 days and then try to put them on dtc, they use content directly into the streaming service to drive the new subscribers. And so you mentioned before or maybe julia that they raised price on netflix last year because they added more value. So if the bulk of content, the huge amount of content on netflix has allow ared them not just to drive subs but to dri pricing and that drives valuation. And i think for disney, we have to move from this being something that you charge essentially the average arpu is around 5. How do we get that to be a meaningful, meaning 7, 8, 9, 10, twechl doll 12 moves moving original filfilms, i thi that could drive the 15 plus. Hopefully well get a sense on december 10 whether that is the direction they are going and how wedded they are to that see he gwenn shal release pattern and so rich, when you said before that now basically a centralized place within the Walt Disney Company will decide where to put that content in order to drive the most value, how is value per seefed . You gain an x number of subs or say that gchlt number x number s creates value. How do you think they will navigate that . We did a study recently that showed that netflix revenues are now greater than Disney Studio revenues netflix will be larger than disney and wa Disney Warner brothers together. And so the economics of streaming, having hundreds of millions of subscribers at 10 plus dollars a month, it is a massive business and so i would argue the right long term decision is to move content offer off of those legy pla platforms. Like i would put dancing with the stars on streaming. I dont know why a movie like black widow has to get punted to next year. Is there tremendous short term economics . There are. But if you really believe in your assets and the quality of your content and you believe that you can build a long term subscription business, i think netflix and spotify and down the list, if you really believe that you can build a scaled subscription business, the rewards are incredible so i would think if disney is looking at this, what investors are hoping for is that disney really lives up to what they say. Meaning it is not just he reorganizing it will lead to a different approach to content and they will say that well start starving these kanl ncable netws and broadcast networks, put it first on to streaming because that is where built the long term asset value i think that it will be interesting to see whether what happened in q4 with shifting movies they take a very different approach as they move into next year because of the structure. A very different Business Model from currently rich, thank you very much for being with us. Guy, ill go back to you since we have you back hopefully technical issuefree sorry but that would be a major change so lets say that what rich greenfield is prescribing happens and that disney becomes that content juggernaut focused on streaming what does that do to its other parts of its businesses . Obviously networks would be starved, cable channels would be starved of contents. But how about parking as and cr . Hopefully parks come back they all go handinhand i think that that is still a big part of their business but my point earlier was, and i dont know how far i got, i think this was in response to the success netflix had over the last decade and i think that is it, if disney can be even remotely as successful as netflix and get sort of a third of the valuation, then you are talking about a much different multiple for this stock and i think that is the game plan here you know, what they do with espn really beside the point. In terms of levels, and tim can speak to this, 136 was the high and then you have the alltime high of 153 from november right in the crosshairs. Interesting how the candle works out on that one. And shares of apple jumped 6. 3 as investors count down to tomorrows big product event and the propspect of a new 5g iphone that is coming this year to apple . Really it is a super cycle, get ready for it listen, these events, we already know what is coming. There will be three phones, 5. 4 inches, it will have a flat side, it will have 5g, it really comes down to what is the network capacity, what is the availability, what is the demand for this product right now when a lot of people are not out and about and they didnt care about download speeds. Will they be willing to intend 1100 or 1200 to upgrade their phones and i would that it will rally and they will tell you that you can have them delivered sometime in november. I dont know but overall for the nasdaq today, you saw crazy price action and it looks like the soft bank options whale was back powering these things. If you saw the fmaga complex, all massively outperforming. That has to be the largest update weve seen in a very long time on no news. Yeah. Karen, obviously i jest, we all new that 5g phone was coming this is probably the most telling Game Changing super cycle ever in the history of shares of apple. So the question is what do you do here . Well, im long. I hate when things run up on vapor. Although so many of the other stocks dan said ran up today as well i dont know how much of that was the maga euphoria versus expectations about what they will announce tomorrow i think im staying long, valuation has obviously gotten rich again, but i do believe that ultimately i dont know that it is this quarter, i dont know that it needs to be this quarter at all, but this 21, i do believe the 5g phone will be very big for apple and there are High Expectations it is already priced in. But i dont think that the valuation is crazy given that wn and dan ives will exceed that of 2015 which was driven by the 6 plus where sales rose 52 in the following 12 months after that launch. History is fun, making those comparisons are fun, but we are in a pandemic. And history doesnt repeat itself, it rhymes. And you have to get 75 million shipments out there to get some of those numbers weve been talking about 5g for a nine months. I think today may have a lot to do with technicals and again the fluff in all of those names. The good news i think for the market is Semiconductors Made an alltime high and showing a lot of leadership. But nothing about todays news that makes me run out and buy the stock and i think valuations are a little challenges. And coming up, well take a look in amazon ahead of its prime day. And later surprising call on what a win by joe biden could mean for the oil market. Were counting down to the election and trading the vote. 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. Shares of amazon soaring as we count down to a much delayed prime day which kicks off at midnight it was supposed to take place over the summer but was postponed due you to the coronavirus pandemic amazon up nearly 5 today. Guy, this resets the calendar when it comes to Holiday Shopping this season and were right in the Holiday Season as you know in the thick of it. In terms of the stock, this sets up the way it did a couple quarters ago where if im not mistaken i think amazon will report on the 22nd of october. I think we take all the high of 3550 if you are tradinging it and not just owning it, i think that you own it into that Earnings Release after the bell and sell it on the close of the day i might be wrong, it might spike another 100, but i think that this will set up the way we saw it a few quarters ago when you had the pretty precipitous drop. We know target, walmart and other retailers are rom willing out t rolling out specials to compete with prime day as they have in the past. Willing rolling out specials to compete with prime day as they have in the past will we see the pressure because this falls in the Fourth Quarter and people might be spending on prime day and using funds that might have otherwise been deployed elsewhere thats a good question. Im not sure but also do we get a stimulus so people get another deposit to be able to buy Fourth Quarter holiday gifts. I dont know but going back to walmart, i think that amazon, walmart, take your get, costco, i think that they will continue to do really well im concerned for the other. Smaller retailers and i just think that the evolution that started before the pandemic that accelerated into the pandemic will really continue even quicker and that will leave a lot of retailers in a very bad spot tim staying power of the pandemic is part of this story. I think this is what karen is referring to i think that they are all benefiting from the move, and ecommerce sales are up 48 year over year, which gets you to a trillion a lot faster than people expected. And in that environment, amazon still dominating at 38 of a larger pie so whatever multiple you were throwing on their business, and i realize aws is a big part of that, but ecommerce is the place where people are throwing the multiple and dont seem to care they are probably more emphatic about that and i think that they get better for amazon. Might put the pressure early on some of the shippers, dwaan yeah, we know those stocks benefitted from their ability to ship this growth that we know that basically weve seen in six months the axle rae racceleratin online sales, so it seems that amazon last been building out the Distribution Centers and making them vaccinated, i think that they said that they will hire 100,000 people and they are relying on their own ability to get packages to people quicker but those come with costs. And we saw that over the last couple of quarters each time these guys have shown us that they are winning the pandemic, there are also a lot of costs soergtd associated witt when they report, that is something that investors will keep a close eye on. And i dont think the price action today, the calls this week are off the chart so it looks like it is a bit of a feeding frenzy buying the calls, seeing all the big names and just pushing them all toward those highs. All right. Here is what is coming up next as covid case counts rise, we talk to the ceo of a company trying to bring you the next jen raise of a Coronavirus Vaccine plus were counting down to the start of earnings season, what the debt markets are saying that we should expect from the big bank reports hmms and ahhs heard incall. Hmms and ahhs were committed to making college more accessibley, by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Welcome back were following the latest on the coronavirus as cases continue to surge in a number of u. S. States. Lets get to meg tirrell with the latest cases in the United States are on the rise again to now almost 50,000 a day on the seven day average, hospitalizations have now started to tick up again. Deaths on the daily count are still declining, but of course they tend to lag hospitalizations by a week or two. Look at where the most cases are being reported the darker the shape, the worse they are in terms of the number of new cases wisconsin, north dakota and south dakota really hit the hardest. This is a map showing hot spots where you are seeing the fastest growth over the past week, really concentrated in wisconsin, illinois, indiana and kentucky and we are also of course seeing progress being made on the vaccine front. Were only a few weeks away potentially from being the first data pfizer has been guiding toward the end of october for potentially seeing its results moderna to november. And we actually just got word from pfizer that they are expanding their vaccine trials down to the age of 12. This is after they already expanded down to the age of 16 and as questions are being raised about when kids will get access to a vaccine as well. Meg, thank you. First covid19 vaccines to come on to market will likely be designed to be injected in the arm. Researchers are also looking at the next generation of vaccines and that inhaleable could offer better protection. And joining us now is vipin gard thank you for joining us you released today a preclinical evaluation of the nasal vaccine. What did you find and some are saying that this was sort of widely anticipated does it put you more on track to file an ind with the fda and start the first phase of your trials if tn the First Quarter . Yes, thank you. First of all, as you mentioned, most of the vaccines in Development Today are intramuscular injection given by a shot and while they are looking very encouraging in terms of their ability to generate systemic immune response, neutralizing antibodies, none of these vaccines are designed to activate the mucosal immunity. So what we reported this morning from our preclinical work is that our advantage vaccinadvanv activate all three arms of the immune system. Not only showed activation of neutralizing antibodies, it also showed tcell immunity and also the local mucosal immunity in the nose if you think about this particular virus, it attacks us through the nose, it multiplies in the thoez anose and actuallys a reservoir in the nose before it attacks the rest of the body. So it makes sense to have a my sal advanta nasal vaccine. So that you activate the third arm of the immune system called the local mucosal immunity in the nose and we think that it could be critical for preventing spread of the virus, further spread of the virus, because having these this new company sko m have the effect of blocking the transmissi transmission and just to be clear, the data that was prepublished today, this is data in mice. And so when do you anticipate as you look out on the time line and given the expeditious way in which the fda is green lighting each phase and even doing phase one and two assisimultaneously,n would you anticipate codoing a trial in humans . We expect to file an ind within weeks and start phase one before the end of the year we anticipate data in the First Quarter and if the today i take looks good, we will immediately move to phase two studies. So really by the second half of next year,today i take looks good, we will immediately move to phase two studies. So really by the second half of next year, we are preparing to produce large quantities so we can move very quickly at this point during the second half of next year we could have a vaccine ready to go. And how should we think about the nasal vaccine, is it a replacement for the intramuscular ones or would it be used in conjunction so even though weve made a lot of progress, it is clear that we dont know about the durability of the immune response, we dont know what different types of immunities will be a being dwbeing acquired most vaccines are designed to reduce the disease rkz by bringing in the nasal mucosal immunity, we think that we can also block the transmission of the virus. So were moving forward as a single dose intra nasal. But there is a possibility that down the line our vaccine can work with other vaccines in other words, you could have a combination of two different types of vaccine, being intramuscular followed by an intra nasal. So that possibility does exist and well explore that the other thing i would point out, children for instance, children we need to figure out how to vaccinate children also because even though they dont get severe disease, they can be potential carriers of the virus and can spread the virus so it is important to have a mucosal vaccine which learn prefer the nasal, less invasive, and also having the benefit of the mucosal immunity and prevent the trantsmission could be critical we hope youll keep us posted on this. Appreciate it. And obviously innasal is easier to distribute, easier to take, to give to demographics like children. Guy, it is interesting because as weve evolved and thinking about these treatment, at first we thought treatments would replace others so when you had positive news from one treatment, you would see another treatments stock go counsel. But were learning that even potentially vaccines can be used in conjunction with each other, so there may be room at the table for a lot of these stocks. In concert with so im somewhat reticent to take about altimmune because of the cap. But i think it closed around 144 today and for the longest time we said you traded against the 127 low that you saw back in june and that exactly pretty much is what happened. I think ibb takes out the alltime high of i think 147 and were off to the races in terms of individual stocks, weve talked about this for a while, i understand that lilly is not a biotech game, but i think lilly works here and i think amgen continues to work here and we have a big interview tonight on the news with shepard smith, shep is sitting down with dr. Anthony fauci, that is tonight 7 00 p. M. Eastern time still to come, shares of twitter jumping to their highest level in more than six years today. Well bring you the call that sent this little bluebird flying plus earnings season kicks off tomorrow and well break down what you should expect from big banks to big pmahr when disaster strikes to one, we all get together and support each other. Thats the nature of humanity. It has encouraged other people to take the time for each other. With this seal, this restaurant is committing to higher levels of cleanliness. The expertise that helps keep hospitals clean, is helping keep businesses clean too. Look for the ecolab science certified seal. Shares of twitter taking flight on the back of a big upgrade from deutsche bank, the firm slapping a buy rating on the stock. Analysts see a compelling bull case for 2021. Dan, specifically they said that it will be a big event slate in 2021 do you like twitter here yeah, i mean listen, weve liked it since the low 30s, that is the problem this analyst says that it could get 56, that is a 12 month price target this is a company that will grow their sales maybe to 4 billion next year. That is kind of a rounding error in the overall online ad market. So well have to see a continuation of some of the really good trends that they had during the last quarter to see this thing go higher i dont see it here. I wouldnt be buying it up to 50 right here we liked it much lower if the chart is all you are judging by, which is not what we do, but you are back to the june 2018 levels, basically breaking out to all time highs. Lets see if we can get through those levels but Second Quarter numbers were impressive, daus up almost 35 and some of the even margin on the business is certainly improving. But look, this is heyday time for a twitter, about as good as it gets as you get into the political season lets see what they do monetize the trends if you do it on a sales multiple, it is not cheap. But i think twitter weve all recognized the Intrinsic Value of this company and that it is high l highly valuable. Is what is good for a twitter good for facebook in this way . I think so. I think where they upgraded twitter today, i think they upgraded google and facebook as well id rather go to facebook and im long facebook, similar trends, trends in ad growth and at a very different price. So id rather facebook and alpha get. Co were trading the vote coming up, what a biden win could mean and then a big bank breakdown, what you can expect from the financial titans but we are hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. And try pure protein shakes, with 24 vitamins and minerals. And try pu e protein shakes, for skin as alive as you are. Dont settle for silver gold bond champion your skin welcome back were trading the vote thats right, with only 22 days until the president ial election, we have a new segment for you, were breaking down the stocks and sectors that could see big moves based on the results biden win could be bullish for oil prices, could further boost oil prices by making production for shale more expensive and more regulated so lets trade this vote paul sanke said that it will be harder to drill, harder to get the licenses to do so, so fsuppy will be con trastrained and oil prices will go up. And how much they can go up is another question. But the break evens on the alter that difference fuels are certainly a lot higher than traditional up stwrestream alterthat difference fuels are certainly a lot higher than traditional upstream i also point to the function of Balance Sheets and companies that even have some Free Cash Flow recognize it is not growth at all cost. So i think the discipline in the sector means that you will see tightening inventories in the short run. I wouldnt buy based on the strength of stimulus or the economy. Find the best Balance Sheets i do think condition sole dasoln continues and you never buy them when they are cheap, but i think that it is something to look at. And a corollary to this is that goldman is also saying that we could be in for a period of dollar weakness with a biden win and that we could see levels we havent seen since 2018. So that could play a role guy, what is your take i agree 100 on the weaker dollar im in the camp that youve seen a bounce in the u. S. Dollar, i think the next leg is significantly lower. And whether or not that means krud Oil Crude Oil goes higher, well see. But the flip side of the coin is that Biden Administration and the people around it are pretty outspoken in their sort of want to move away from oil. So maybe the two offset themselves what i will say though in terms of a trade, and weve said this now for a week or so, for the first time in a long time i think exxonmobile having traded down to that march low of 31 or so and bounced, that is set up as well as it sets inin qui i as well as it sets inin qui i qe time i think exxon might be the better stock coming up, big banks bracing for earnings and on mad money, eric grub nchn man to talk his new spac ways ofg demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. We did it c crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. Welcome back wall street is counting down to earnings season. Big banks kick it off tomorrow next guest has been tracking the action in bank debt and says the street might be underestimating just how well the big banks will do chris white is joining us, ceo of bond click. Chris, great to have you with us what do you see the debt markets pricing into the banks great to be here he, maeherea we saw a rally across the board in the Banking Sector when looking at corporate debt. Heavy buying, banks usually lead the activity and so it was no different last week but every single name in the top 20 by volume tightened so it looks like people are positioning themselves for a positive call from the banks in terms of earnings. And so immediately. But farther out, what are investors anticipating that is a great question. If you look being at where the is occurring, what were seeing is really a difference between investors the way that they are treating the front end looking at banks, but in the long he said, we actually saw net selling. And i think what the Bond Investors are selling is in the short term they think that banks look good now, but longer term i think that there are still a lot of question marks. And given that banks are so tightly coupled with fed policy, i think that is a smart bet. So Bond Investors seem to be placing a lot of of their interests in just buying the debt that will be maturing in the next five years. This is karen thanks for being on. When you talk about the further out debt, is that function of a thought on rates or much more specific to the underlying bank credit the further you go out on the credit curve, the horrific that you more risk that you are taking on so everyone believes that bank debt from a value standpoint is something they want in theaeir portfol portfolio. Net selling in the long end is usually an indication from a volatility perspective people arent willing to take a bigger longer term bet that has more risks in this particular fame na name so simple things in the fed policy, not just the discount rate,fame name so simple things in the fed policy, not just the discount rate, direct bond buying has a drenk direct impact on thick revenues. So i think it is important to watch what the fed is saying before they make longer temp bets chris, thanks for joining us. Karen, you often look at debt in general for stock karen, you often look at debt in general for stock tocks. Is bank debt an indicator of investor appetite . I dont really. So it is interesting to hear his opinion. I look at the equity you know, in 08, bank debt was definitely worth looking at and you had preferred trading at 20 cents on the dollar ar so that was interesting. I hope they are right. Only thing that i dont like about the setup is that in the last 12 or 13 trading days, jpmorgan for example is up at least 10 from an intra day. So that is a big move. Just raising the bar for them to come out with strong earnings which i think they will. But im long bank of america, wells, citi and jpmorgan tim, what do you think about that and then dan i think that the len loss provisions are the numbers and what weve seen the last two quarters, the thick earnings have been monstrous and people like jpmorgan have used that and put that away into Loan Loss Provisions if the economy is anything close to the rest of the market, weve had this conversation on this desk, is pricing in, banks are way too cheap here and i realize they are not created equal look at how karen talked about jpmorgan 12 in 11 days, citibank hasnt done that. So im long both citi and jp and bank of america into this week and i expect to be relative surprise on the up side. Dan, quick. Good segue from tim i think that you look at the investment banks and Capital Market activity. Morgan stanley will report thursday before the opening. That one looks interesting to me they just made a bid and closed their etrade deal they are bar belling this and i think that it will look like a Different Bank in a few years from now Morgan Stanley acts much better than the whole space and it is not just the banks that have to report. Johnson johnson also, betting for a big move higher. And mike khouw has the action. So johnson johnson, call significantly outpaced the puts. Im right now, Options Market is implying a move of about 3. 5 a share. That is about 23about 2. 3 of t current stock price. And the most active options were the october 155 calls, more than 13,000 of those traded were about 82 cents buyers obviously making bullish bets and seem to be betting that johnson sa johnson sa johnson will trade higher out of earnings guy id be taking products here it is a huge run to the up side and i think it is time to pull the rip cord but i love mike khouws observiobserv observatio observations tim, your favorite pick in this space first of all, j and j, their phrma pipe line is better than most and i think gilead on the charts and what is goging on wit their oncology business, i think this stock is finally ready to make a move. And were starting earnings this week. And there are a lot of other companies reporting. So dan, what are you looking at specifically yeah, i think that the conversation about the huang banks will set the tone. I think karens point about the big run tlef had off of a two month low is not a great setup for them because they will really have to go above and beyond that i think it really comes done to the fmaga and we wont get those until late next week they will determine if the s p breaks out to new highs above that 3588 over the next couple weeks. Id love to say that banks set the tone i guess they do, but in terms of trade, i dont think that they set the tone for trading since before the financial crisis. Yeah, you know, obviously banks as a percentage of the market now are nowhere near where they were at their height. But if you are asking me one stock that im watching, it will be citibank for sure only because when we traded on a 42 a share, citi was trading at 60 of tangible book, just levels we hadnt seen since 08. I think it is too cheap. I dont know if citi is an earnings story, but i think citi has to get rerated and i think it trades higher from here time for final trade tim. Part of the conversation is about the weaker dollar are and also some of the Global Markets starting to outperform so emerging markets actually back to one year highs and getting close two year highs and that would be a major breakout so watch the eem karen oh, my gosh karen, quick jpmorgan. All right dan. Morgan stanley. Guy meow. Caterpillar. Thanks for watching fast. Mad money starts right now. Hey, i am cramer welcome to mad money. I am trying to make you some money. Call me, 1800743cnbc or tweet me cramer another day, another rally the do