On united. Lower after reported earnings. United losing 1. 8 billion in the third quarter. Thats not a surprise. Everyone knows what has been happening. The numbers were a wider loss than estimated revenue fell 78 , coming in shy of expectations at 2. 48 billion. The metric everybody is focused on is the daily cash burn. They were losing 50 million a day at the end of march. They brought it down to 40 million for a daily cash loss. Bring it down to 25 million in q three. Their core cash burn comes down to we heard delta say we think we will break even in the spring united is not addressing that. We know that will come up tomorrow i suspect that united will give guidance liquidity. The company is stressing it believes it has the cash on hand to get through the pandemic. No one knows how long this will last, how long the airlines will be down, a year and a half or two years. But united feels it is positioned welcoming out of the third quarter. We have an exclusive tomorrow morning on squawk box. Scott kirby, ceo of united will be talking not only about the numbers, but also the question what is the path to break even does it happen in the spring, sooner than that a lot of questions in the morning. Phil, had united given a target like delta had . I dont remember a specific target i know they hoped to break even by the end of the year thats what every airline was pushing for, lets get close to even by the end of the year. So i wouldnt be surprised if they didnt say it will be late in the spring or second quarter. That wouldnt surprise me or any analyst. Its not like wait a minute, we dont know when they will get back to even i think that will be one of the focus points of the analyst call tomorrow i think you will see wall street try to pin them down in terms of when they start to break even. As soon as delta said push that out, it opened the door for the other airlines to do the same we will be listening for that on squawk box. As phil said, everybody expected a terrible quarter what do you do now if you are in these stocks, guy . United is interesting they are down to 21 million they furloughed 13,000 people. They are in a place where they can ride this thing out. The problem is you have competition coming there is no International Travel which is one of uniteds sweet spots. Even if you want to go someplace governor murphy announced that 36 states and puerto rico and guam, if you visit those places, you have to quarantine for 14 days i dont say that with glee its the fact. You say break even in the spring i think thats the bestcase scenario that being said, the stock is smack dab in the middle. You sell at 38 and buy it back at 32. If break even is the target, how can you judge whether or not you want to be in the airlines, karen . I cant, so i am not in them. I am also unclear if they were goes to get some help from the government they were trading like they were, but pelosi sounds like she doesnt want to do it. It doesnt take into account all of the debt they have taken on so the enterprise value is bigger i want to stay away from it for a while. When we talk about which biotech to play, i think you get more bang for your buck than airlines but that being said, i want to stay away from it. So i will go to you who is a stock holder how can you judge how long you want to be in the space. I am not in united. I am in delta. A quarter here or there. I dont mean to be whimsical about break even it really ultimately matters for the airlines i think they have gotten about as lean as they can get. We have seen with delta, the value in the cobranded franchise. We have seen their ability to issue noni ddiluteive debt i dont think this will be difficult for them to pay back when they get capital positive i am saying when these Companies Start to make money again, is that the time to buy them or when you get the sense you have gotten a bottom on the structure. The most profitable part of their business wont recover for probably three years and we dont know if it will ever be that same business if you look at the charts on the airlines, too. These havent been easy charts to hold on to, but they have been holding an uptrend line until they dont, i think can you stay in that trade tim brings up a good point on the new world. It could be a different world for a few years, dan what is your view on where valuations are and if they reflect that leaner world when it comes to travel i think our panel surrounded old school fast money there. I heard a lot of interesting things there we talked about the cost structure getting lower and lower. At some point that cash burn without that visibility of demand coming back is going to be really hard so when you talk about valuation, thats also a moving target i also agree with what tim said. These stocks act pretty well, if you think about it, over the last three or four months. If you go back to june when we had that surprised better than expected employment level. The flattening of the curve was about reopening trade and getting back to business did you see the stocks rally karen made that point, these stocks will rally harder than pfizer or eli lilly on news of the vaccine. You will have that much more of a coiled spring. I would want to stick with the best Balance Sheet and the ones that are domestic. I do agree with tim that international is a tough road to hoe. To me its jetblue and national. Dan has brought this up and i have echoed it and built upon it boeing has serious issues. Tim is right by saying that. Its fascinating what will happen in earnings which i believe is in the next week or so i am sitting here watching boeing fascinated by the whole thing. I dont think the worst is over. I dont think we are getting back to march which was 89, but i think we could revisit 150. I think that will be the tell. Lets stick with earnings and turn to the banks. Wells fargo and bank of america posted lower but Goldman Sachs posting higher guy, you say haves and havenots. Why . No question about it. You can speak to the other panelists as esteemed as they are in terms of what j. P. Morgan has done but look at the Disaster Bank of america i think has gotten a huge pass only because of the disasters that are wells fargo and city but bank of america is not far behind the haves are j. P. Morgan. To a certain extent Goldman Sachs. I think dan will talk about Morgan Stanley the sleeper is a name like black stone that reports at the end of the month. Not exactly the same, but you talk about a company with significant earnings and reasonable valuation and has traded reasonably well the action at wells fargo today was interesting. Prior to the Conference Call it was down 3 1 2 . As the Conference Call went on it ticked lower and lower, finally down 6 . Would you rather, to karen, would you rather citigroup or wells fargo at this point . At this point i would rather wells fargo. Yesterday we talked about citibank having a different problem than wells fargo, but wells fargo is 2 1 2 years into their problem. One of the things disappointing about today was expenses i think expenses is something they will be able to control i would rather have wells fargo than citi. But i would rather, rather have jamie dimon. Obviously wells fargo, you mentioned expenses that was one of the problems going no the pandemic. Going into the pandemic, this was one of the weakest bank franchises going in. I will pose the same question to tim seymour. I think this is an interest exercise this is a tough one the choices are kind of brutal, but i have to go with citibank because i still have a position there. I think ms. Frazier will get us faster to that point and maybe elevated faster to that position, but the story on citibank has been global expense cutting. There has been a time when we have seen the mortgage rephi business do very well. Even auto rephi loans have done well its not a great choice, mel you knew i wouldnt play your game mine would be Morgan Stanley i think they played out some of the issues they have and a whole bunch of issues with interest rates. The investment banks, Morgan Stanley, Goldman Sachs, Investment Banking is doing amazing. Morgan stanley just closed their e trade deal, the last week or two made a 7 million bid for a company. They are not making waste of the recession and looking to make the best of this pandemic moving forward. If it can stay within the consolidation range of the last two weeks and trade into the high end of it, i think by the end of the year you have highs back to the 60s. This chart, look how it held the uptrend all summer, then broke last month and got rejected again. I think you are going to see lower lows see how citi and wells fargo acted. All of that being said, j. P. Morgan is the best and i know what karen meant when she said she would rather have jamie dimon. I asked the former wells fargo ceo 12 months or so and he said j. P. Morgan and bank of america. Dan is saying bank of america with the worst chart out there j. P. Morgan for sure. He is probably more well versed in terms of bank of americas statement than i am. And jamie dimons restraining order not with standing. The tangible book value was at 19. 50 citi trades at a premium of tangible book. I think bank of america has to trade lower and citi is too cheap. Wells fargos problems run deep. They are running silent and running deep comingup, plunging in the after hours session. Why tiktok is to blame and Rick Heitzmann will join us. Hmms and ahhs heard incall. Welcome back fastly plunging 27 after hours. Citing political uncertain tit around its biggest customer which happens to be tiktok fastly had been one of the big winners up 500 before this. Tiktok made up about 12 of revenues yeartodate. That was a big hit big hit really shocking down 28 on a 5 guidedown on revenues. It tells you the number thats most important up 500 its up 1,000 from its march lows and trading at 43 times sales expected to go about 50 and then decelerate to 35 growth this is not the companys fault. You get customers you are going to have some of this uncertainty. This is investors fault bidding the stock up to where they did, numbers that are not sustainable. Karen this is such a robin hood stock. I dont know where it is after hours, 89, makes me think we would be seeing some margin calls coming up. They look to sell fastly but what else would they say, which have nothing to do with their earnings unlikely, tim, to put actual pressure on the market i dont think so. We have speculated at times on fast money fastly, still up 500 on the year still flat over the last five or six days the acquisition is something the street came in and upgraded their growth numbers, but if they are not going to grow 50 or if you are going to see slower, thats tough i dont think tiktok alone is why they owned this company. You should not be owning this company if tiktok is their only customer i dont think you should own this company anyway. This is difficult news, but i dont think it is a game changer for the company. It was up 25 over the last 5 days it underscores the lesson we have seen time and again of a company that serves other customers, dependent on one Large Customer or a handful of Large Customers. That trickles back on their performance. Indulge me for a second. The number two america is coming out. Are you aware of the original movie . I have seen that. One of the great lines out of that is in the face. Reliance on tiktok, i say in the face because for a month and a half the stock went straight up. They were right. They mentioned what is happening now. The robin hood guys and gals ratchet this thing up and they are going to ratchet it back down dan mentioned 40 times revenue its preposterous, but it is not fastlys fault it is what has been created by a number of Different Things with all of that said, it broke out from 80 and that should be the support level. Is that a sequel to the first one or a remake . Too bad no, its not a remake because it is a sequel, in stead of to america, it is i see we have much more ahead should bond markets get ready to ride a blue wave . What could a democratic sweep of next months elections mean to yields we will get some answers in fast trade, the votes plus, they say timing is everything what should we make of the flood of big name ipos coming to the market with so much uncertainty on the horizon that and more when we return many different horizons and that sticked to my mind. So, when 1 a day came out, i said, why not . Why not just utilize that resource. And walmart made that path open for me. Without the 1 a day program, i definitely dont think id be in school right now. Each week for me in school is just an accomplishment. I feel proud every step of the way. Is just an accomplishment. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Welcome back to fast money. We are trading the vote. Looking at all of the parts of the market that could be impacted by the election lets bring in kevin at raymond james. Great to have you with us. The assumption is that democrats spend more money, a bigger deficit issue. Is that the logic behind this . It is we went through this in 2016 with expectations going into the election and getting a different outcome that shook up the fixed income market. This is a different time period and they go in with a different blue assuming a blue wave is a democratic president and congress, you would expect higher taxes, a bigger stimulus package and the combination would likely bring the economy back stronger, but also may bring inflation with it. Most of those, would be negative it may end up that way but thats the way it sets up, at least in the investors minds now. In your view are yields telling you how the market is positioning itself in the fixed income world there are three dates, the precrisis period of mid february, the fallout of middle to latter part of march and look at whats happening today. Right now while spreads have contracted quite a bit, volatility is starting to tick up which means investors are getting worried that maybe they need to hedge some of these ideas what will happen in the future or next year. I think we will start to see volatility go up and an uptick in yield until we have some certainty and who knows whether we get full clarity on election night. Karen, thanks for being on. Let me ask you about the dollar. Is the weakness in the dollar pricing that in for a blue wave . I think so, karen we are starting to see a trend develop here, but the dollar has been up and down all year. I think we would see because the fed is just trolling so much of what is going on in the rate structure, that weakness in the dollar has been with us and not likely to hurt us so much, if we see the blue wave, but it is a factor we are going to Pay Attention to in the last week before the election. Are you thinking about you saw that trade data last week, we had the biggest trade deficit since 2006 do you think a blue wave gets rid of trumps tariffs and that could offset higher taxes in 2021 or 2022 taxes would potentially remove tariffs and add taxes to both individuals and corporations and you would offset some of that issue, but i think that we are in a different period in the sense that you are not going to just be able to turn the economy on in the middle of a pandemic or towards whatever stage you think we are. We still have to fight the medical Health Care Issue while we are trying to bring back the economy. I dont think it is as simple as flipping a switch here and there, boom, we take off and everything is good again i think if we were further along or had a vaccine we were ready to roll out, i might change my mind about what are the levers that are going to change where our Economic Growth would be and what it means to interest rates. What happens if things are fairly status quo after the election there are a couple of scenarios. We saw this in 2016 when it went all republican and then a split of congress in 2018 and what happened to the markets then you can make a certain amount of assumptions. Lets deal with the one that we have now, that we will continue to have a split congress as we go into the next two years the markets arent going to be upset by that. There may be a chance that you see some increased taxes, but we are likely going to see the same battles that we are fighting now well into the next couple of years. I dont know if anybody saw the pitch that richmond gave today, but he talked about virus uncertainty, Political Uncertainty and fiscal uncertainty. Its hard to get an economy going during those uncertain times. I think if you split congress, no matter who wins the white house, thats where we will live for a while. Kevin, thank you. We have been talking about the weak dollar for sometime Goldman Sachs came out with the call earlier this week, that a blue white house could mean a weakness in the dollar we havent seen for sometime. I think the fed we have, whether we want to or not, will keep rates pinned. Feds say they want inflation, but their policy is deflationary look at the rest of the world, investing in the u. S. And borrowing in yen i think things moving up 50 basis points would be a great story of what is going on with the overall economy. We have periods where we have had the ability to take away extreme accommodation and they have done nothing. I think the dollar is range bound. I think we have seen it vacillate between 80 and 110 if you think the dollar is going to weaken, you want to own commodities and resource plays and that has kicked back up to two year highs i am not saying invest blindly, but you have to take a look at those if the market continues. Coming up, can players take advantage . And later, why traders are betting on a big pop dont settle for silver 1 for diabetic dry skin 1 for psoriasis symptom relief and 1 for eczema symptom relief gold bond champion your skin welcome back the electric car seems to be powering down for one car. Ford has slowed down after their cars in europe have heated up in europe and analyst say nio stocks could double tesla getting a bump at Goldman Sachs. Where do you want to go on this one . I want to be very clear here. I have not by any stretch of the imagination, but i have been pretty consist enon this one whennie l whenn when elon musk made a comment that the stock was too high and then it began to double if not quadruple, that tells you everything it needs to know. Tesla i think will continue to ratchet higher i dont necessarily understand it i have tried to figure it out. A lot of people do get it, but i think tesla continues to be the play i want to emphasize i have not been the steadfast bull, but thats been my opinion for a while on this stock. Maybe this makes you appreciate gm strategy which seems to be partnerships here and there and a separate university, the cruise university and makes me wonder what is happening with the nikolai deal. Warren buffett owns 25 of one i believe a switch to ev or hybrid or whatever, nev, new energy vehicles, i think will happen more quickly than we think. Gm needs to make something sexier about their business. They have no love in the market for it at all. Tim the j. P. Morgan report called them the premium play in the china ev market and they wil win over time. That is not a stock for the faint of heart, but we know the story. So nio and j. P. Morgans call is just that. A delay on the ford f150 day is a speed bump but not the end of the road more people are getting excited on the ev strategy i think ford had lagged behind ford the stock, ford the chart, very interesting if you look at both of the autos, and we have talked some of the secular dynamics in the Auto Industry and where the growth has gone in the last couple quarters. Staying in this trade, the longterm ev story is probably not why you are buying it. Coming up, the next wave of ipos are getting ready to hit the market rentals are said to be redhot in this market vo im a verizon engineer and today, were turning on 5g across the country. With the coverage of 5g nationwide. And, in more and more cities, the unprecedented performance of ultra wideband. The fastest 5g in the world. It will change your phone and how businesses do everything. Im proud, because we didnt build it the easy way, we built it right. This is the 5g americas been waiting for. Only from verizon. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. Pure protein. The best combination to help you stay fit. This was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. Welcome back to fast Money United Airlines falls after reported earnings. Tomorrow hear from united ceo scott kirby. And the government is still deadlocked over a package. As part of a new documentary, Shepard Smith spoke with the head of the Flight Attendants Union about the need for more money. There are plenty of team who think spending more taxpayer money on airlinesis the wrong thing to do because it delays cost cutting decisions Airlines Need to make to those people who say spend your own money we have been bailing out the airlines long enough into air travel demand is at 15 . This is not a normal time. If it came to flight attendance and said we can give you all of it, it would not solve the problem. 750,000 workers working for free would not take care of the problems in the Airlines Industry right now catch it right here at 8 00 eastern right here on cnbc the semitrade details straight ahead welcome back the next big wave of ipos may reflect what consumers have been relying on during the pandemic 2020 is tricky. The big software names, they timed theirs after the on set of the pandemic and ahead of the buzz of uncertainty. They are waiting until after the election, and that could open them up to more uncertainty. Some of the biggest startups air bnb is able to debut in december and bumble and insta cart a reportedly eyeing 2021 probl prop 22 as well. It is the most expensive Ballot Initiative in california it could force companies to reclassify their workers which could up end their models. We shall see, melissa, but one thing that could be to their advantage, there are more ways than ever to go public thank you next guest is an air bnb investor venture capitalist Rick Heitzmann, great to see you. Welcome back to the show dierdra mentioned the bad taste left in some investors mouth who invested in lyft and uber. What do you think will prevail in this pan ddemic trading environment. If you look at snowflake on the enterprise side, they have performed well but relating to the trance for ta pore transportation sector, people taking lifts have dramatically decreased also, you have seen seen pintrist double in price and others folks chasing growth, chasing a high return on investment in some of these consumer names for air bnb, i didnt think anybody would want to go to that environment during a pandemic, but yet business is booming. Is there a rush to get that out the door when its hot what happens when people start traveling again and staying at hotels before. Before the pandemic we were seeing tremendous uptake from air bnb. They were taking shares from traditional. If you are living in a place like new york or san francisco, do you want to work out of a small apartment or would you rather go to lake tahoe or the catskills. We have seen the desire to go to another place and whether it be a driving vacation air bnb pivoted historically, the londons, pariss. Here is a twohour driving vacation i think in response to covid, if travel were to come back and hospitality were to rebound, i think they could take advantage of that train. Its dan, one of the biggest stories in the stock market are spaks. Why did you do it and why now . Dan, i think we learned a lot about the process and learned a lot what was going on in the markets through our investment in draft kings that has been a tremendously successful spach draft kings has been a good company. We thought about it at the growth stages. If we are able to partner with people and be their adviser and be the First Company to be able to partner with an entrepreneur through the public markets, we would be the First Company of that sort to do that so being able to offer that to entrepreneurs as well as investors, seeing it as a rush to get into it makes us unique you have been in the middle of the draft kings story major sports and media has to be there i originally came across draft kings because i was serving on the Advisory Board of a couple of professional sports league. They thought they had to be there. What do you do when you cant charge more. Disney is unique probably the unique sports media property everybody is picking their partners draft kings has some of the premiere partners in the market with folks like the Philadelphia Eagles and New York Knicks this will be a huge fundamental growth area. We are just seeing the beginning of it with states allowing legalized gambling we will probably see it play out over the next five or six years or so. The beginning of a trend, but we think this will be a huge ma macrotail wind if disney spun out their business, could you see draft kings and espn having a more formalize the partnership or marriage perhaps i dont know about marriage they have a deep partnership now. They are dating heavily. A lot of draft kings stuff i think draft kings is innovative with them they might be going steady i am not sure if there is a marriage in the future thanks for stick with the metaphor thanks, everybody we are going to the chips. Stock is up 99 . Traders are betting it could go higher mike has the action. So taiwan semi, right now the Options Market is implying a move of about 4. 6 , slightly higher than what we have seen. Buyers are betting the stock could exceed the stock price by the end of the week. These could be stock substitution rates does this set the table, guy, for the rest of the chips . You know, i will tell you that dan, tim and karen have talked about taiwan semibeing the leader and they have played catchup on the back of tsm so i would say yes. I love Rick Heitzmann for a number of reasons, not the least of which is georgetown lineage and he and i were early in pintrest if i recall from about a decade ago and i think that stock will continue to rally. Ne ihanks. Tun for the full show friday at 5 30. Up next, final trade hmms and ahhs heard incall. We have a big interview coming your way tomorrow morning on squawk box. Steven mnuchin joins us. Dont miss it. At 8 30 eastern time time for the final trade lets go around the horn draft kings, this pullback is one to buy we heard Rick Heitzmann talk about the secular story. I am long on the stock karen i think its time for a pause so i have been selling some lowes calls. Morgan stanley, any weakness i think is a buy i think you have mid to high 50s in the coming months have you seen the hospitals lately i know you have. Health care. Analysts will have to do an about face on this one, thc. Thanks for watching. My mission is simple, to make you money i am here to level the plain field for all investors i promise to help you find it. Mad money starts now hey i am cramer welcome to mad money. I am just trying to make you some money my job is not just to entertain, to teach and put in context. Call me at
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