First we start off with what seems to be trumps indestructible rally. The dow hitting alltime high out of the gate this morning. The s p and nasdaq having their best day in two weeks and all of this on the face of huge events over the weekend. That would have normally shaken the markets. Trump tweeting, almost taunting china and italy with a historic no vote on a constitutional referendum that could shake up the country. And an you will but certain rate hike next week and investors buying anyway. Can anything take down this trump rally. Should we call it the teflon trump rally . Something is going to take it down. Kudos to team, karen. Dan bullish on the financials. Even dan. Pete has been steadfast, as well. Can anything take it down . What i think is going on, and by no means have i been some raging bear. I think people are saying, all right, lets look at the financials. Where were they trading in 07, 08 before everything hit the fan. Goldman sachs was probably trading twoandahalf times price to book, give or take. And i think what the market is saying now, listen, i dont know what this guy is going to do. But i dont want to be waiting at the altar if, in fact, he does do it six months from now. Goldman sachs at 1. 3 times price to book than to be six months late when and if he does bring all of these things in. Can anything derail it . Something will. Absolutely. But right now, i cant figure out what thats going to be. Well, and, you know, frankly today you had an opportunity to look at European Banks and saying are they going through a trump moment, too. If the seeds are being sewn, its European Bank positive. Deutsche bank ripping higher, a trade you should continue to look at. Look at the ism. All the sentiment indicators this isnt data, but this is purchasing managers, this is supply managers, people looking at the business environment, and you have an environment where i think it gives the impetus for stocks to rally. Again, is this the trump rally . Yeah, some of it is if you think about either deregulation, tax policy. Some of this is elections over rally. And a seasonal rally and i think those are the things. Look at the broadening of the market and back to dow theory, alive and well. Transports really validating. The transports hit a new high today and final technology at the same time. No Technology Left at the time. That was good. I thought they were ridiculous levels. Google was i think got fried. Thursday down a lot. Friday sort of flattish. It should be up. A lot more than here. Im happy to own it. I know its out of favor right now but i still think there is excellent value and the banks. Im surprised. Tim touched on the European Banks. Im surprised they werent down. This is they started out down. Okay. But they started out down. Its amazing they they didnt make it down very long. It was over pretty quickly. Its amazing to me that we think back to the greek crisis. I mean, to have this is not a similar crisis at the moment. Although, you might have it could become it could become something. To have the banks react its sort of near what the markets did in response to trump. Yes. It was an immediate flushdown, right . And a bounce back i think people have had a chance to think about this one. Yes, didnt necessarily mean renzi was going to tow the european line. If anything the no vote probably kept some of these other parties in italy from being in a better position to actually push through some more radical change. I dont think that this is necessarily great news for italy or European Banks. But i do think if youre contemplating a world where the European Union is starting to have to be realistic about their environment, thats absolutely whats going on. Ultimately comes down to this. I am an investor at home, i didnt really participate in this rally, because i wasnt invested on election day. Now what . I think you have to wait until the fed meeting. And you started off this conversation talking about what donald trump tweeted over the weekend. Well, hes also been a huge opponent to the policy that fed chairwoman yellen has had in place over the last year or two since she has been in that seat and hes also railed against low interest rates. So let me tell you this. What if she comes out she knows shes on borrowed time here, done next february the 18th. What if they take a much more hawkish stance about rate increases over 2017 . That could clearly hit the market. Thats what hit the market in january and february, the reverberations of that. So we have a situation here where the guy, in my opinion, is a walking tape bomb. The market doesnt care about it now. It will as we get closer to january the pushback there i would make, 4 by 400 rely relay. The first three legs of this 4 x 400 have been by the fed and monetary policy. Just as theyre exhausting and crossing the finish line, guess what, theyre going to hand the baton off to what seemingly now is fiscal policy at probably the exact right time in history. I would submit if mrs. Clinton were elected, the market would react far differently coming into it and if the fed did raise hikes. I dont think people should they with, probably. Are they, no. Because they think, you know what, fed is out of the picture. Fiscal policy i think its an easy way to think about it. Right now we are still a month and a half off to inauguration. We know that taxes are coming down. We know there is going to be a lot of crony capitalism. How do we pay for this, the fiscal stimulus. What happens to rates. An easy thing. Were in a goldilocks period. Listen, the s p is not going much lower than here. Maybe 2150 at the end of the year. Theyre going to keep them up. No one thought we were going to be up 8, 9 on the year. The fed argument i agree more fed rather than less fed is what we got ahead of us and thats bad news for markets, i think. Have we gone from a place where actually the fed was going to be totally out of the picture and we are in an environment where if anything were in deflation to one where we have inflation just overnight, just because the elections have brought in a guy thats maybe announced some change. We may be saying the same thing. Until we actually have a real sign there are inflationary forces, the fed is going to do nothing. The fed is going to lay back. And by the way, yellen is not out until 18. I think you mentality that. Anyway, the point is, you have plenty of time for the fed to prove their independence. And im guessing a lot of this prove her independence. What is he going to do on social media . Thats the thing. Thats what the markets are not really pricing right now. Shes going to tweet in response . I dont think so. I dont think so. But, you know we were just back to melissas question. What do you do, own zero stocks. Its november 8th, you didnt buy anything. I dont think anyone owns zero stocks. But big cap phrma has been taken out, have decent yields. So you want laggards. The xlv financials. No you want to buy yields. I think you probably i think you could take a shot at staples. A stock like bud. An absolutely aninihilated down 25 in two months. Look at pfizer and merck and eli lily. 3 dividend yields. I didnt do a lot today. But if i owned i would own some equity exposure, even here. You dont need to get allin right here. But to your question to me, i assume then one is very heavily fixed income. Which is problematic. Entirely fixed income at this point. Maybe its trough for the short term. That could be but i think you have got to own some equities here. Because the Building Blocks are still in place. I think theyre going to be in place for a while. You dont have to get allin right now. Buff i do think you have to own some. Added to Restoration Hardware, and look at some of the resources by the way, the Restoration Hardware is part of the luxury trade and retail. The Home Improvement trade. Frankly, i think Restoration Hardware gets a piece of that, oversold on some company fundamental problems. And back to the reflation trade, copper going at 3 bucks a pound. If it goes to 3 bucks a pound which i just said it will, there are a lot of trades out there that still have a long way to go. The iron ore trade also continues to be the look at the rails. If you think rails are trading higher because the world is a better place, theyre trading higher on moving this stuff around. Are they moving more stuff around . We dont have that data yet, tim. The only thing i would say, i think a lot of these stocks have gone pair bollic in the last month, discounting a lot of good news. So to me i think to chase some of those things up how much is u. S. Steel up . Its up in a straight line. 50 . Or Something Like that. I think the rails i said last week and stand by this. I think cxx is at a twoyear high. I think you fade that. I think theyre starting to have pricing power. It is the things that people expect they will move around that continue to go higher and are still oversold. Real quick. Single stock. Lululemon bounced around 55 level since the middle of october. They report on wednesday. Why is that interesting . Because it failed a number of times to break through 55 on the down side. Had a big move today to the up side. If you want some potential highrisk, granted highreward. Lululemon into earnings probably very low expectations earning this wednesday on the long side. The surge in stocks has led to a, quote, buying climb maximum. Despite the finality, thinks you should buy stocks. Jeffrey, chief investment strategist, great to see you. If its a buy in climb maximum, does that mean the best of the buying has been done . No, all it suggests is in the short run, demand for equities has waned a little bit. And leads to a pause and or attempt to pull stocks back. I found the comment about goldilocks interesting. Our timing bork says the equity market is growing higher into the beginning of february. All right. So the climax will happen around that period, right . No it happened last week. Buying climax is when the s p has a sharp move up on heavy volume, and then on fridays close, it closes below the previo previous fridays close. That is a buying climax. Okay. So within the markets, jeff, which sectors look like they have the most juice still to go, even beyond this climax to march higher into the end of january, early february . I think technology. I think karen is exactly right. I think technology looks very cheap to me. The ones that we do not like are the defensive plays, which have been bit up to rather high historic valuation levels. So utilities and the chiropractor and gambles of the world we dont have much interest in. Jeff, its karen, thank you for agreeing with me. How much sort of undervalue do you think the Technology Space is . Well, i think its trading at a price to estimated growth ratio, karen, of about 1. 5. When you have utilities trading in at about a 3. 5 peg ratio. So i think there is a lot of room in technology on the up side. What do you think happens after the end of february, beginning of sorry, the end of january, beginning of february, jeff . I think you get i think you get a pullback. Its always been within the construct of a secular bull market thats probably got another seven or eight years left to run. Jeff, its tim. Was there anything encouraging about last quarters earning season that has you say, hey, maybe this earnings recession is over . Well, the negative neigh bobs told us the Third Quarter were going to be negative again. I have veered that the profits trough came in the Second Quarter of this year, and were going to transition from an interest ratedriven secular bull market. I think thats going to become increasingly evident. Jeff, great to see you. Thank you so much for your time. Jeff saut of raymond james. Dan was a negative neigh bob. I dont know what is. I could major an argument for 2017 if they do not signal a heck of a lot of activity on the rate increase run and you get technology bigcap tech, amazon, google, apple, facebook back on board, all the stocks down 5 to 10 from their recent highs here. We could go straight up, meaning the s p 500 if we dont have the rotation over the last few weeks. If everything gets on board for that beginning of the year rally, then we could see easily up 5 in the first two months of next year. If the sentiment remains the same way and we have incrementally better data and rates that remain low for a while. Steve liesman was on the air today wrapping the fed speak today and sounded like they were acknowledging the fact there could be a lot of work ahead for the fed to do. Right now its unknown. Sounds like theyre going to take a wait thats the new york fed a bill dudley. We glean from the speak today. We dont know whats going to happen so they dont know what theyre going to do. Good for the markets, no . Everything has been good for the markets. Effectively, right . Said were behind the curve on the rate hikes, would that be bad for the market . I wish i knew i will say this, though. In terms of the transports, because thats been bandied about. Look at where we close today. Look at what the alltime high was. I think at the end of 2014, 2017, were right there. The russell blew through that similarly. And apparently, its nattering neigh bombs. A Richard Nixon spiro agnew thing. Are you correcting . On the fed clearly, the first hike is pretty much baked in. It will be bad if it doesnt happen. Because something went amiss. I am wondering, though, after the fed last year, they were in this situation. They gave us their guidance for the year. And then quickly had to change that. Why go out on a limb again, and talk about your guidance beyond any relatively short amount of time . There is obviously things going on in europe that, you know a lot of things could derail what their plan is. I dont know why they would why risk it . Right. Why box themselves in a corner . Coming up, a mad money jim cramer spoke to the ceo of United Technologys greg hayes after carrier made a deal with donald trump. Well hear the comments mr. Hayes had to say about the president elect. Plus, used car sales surging and it could be signalling a major shift in the auto market. Well explain what it is and how you can profit. And is disney better with or without espn . Analyst making a bold call for disney to dump espn. Could the company be worth more without it . The traders weigh in. Much more fast money still ahead. Welcome back to fast money. Jim cramer spoke to United TechnologyCeo Greg Hayes since last weeks carrier deal. Heres what hayes had to say about the agreement. Look, i think if we can see a renaissance in manufacturing in the u. S. , thats a good deal for the u. S. But its got to be a renaissance and its going to come from more thoughtful regulation and more competitive tax rate. I know paul ryan is on the right track to do those things. You can catch the whole interview at the top of the hour, 6 00 p. M. Eastern time with jim cramer on mad money. Lets talk about this on the desk. I mean, if you read between the lines, it sounds like hes saying there has to be some sort of policy in place to make sure its all manufacturing that will want to be in the United States. Its not a cherrypicking sort of theme that donald trump has done. I dont know. Hes clearly i mean, listen. Its not just tax policy that needs to change. Its also education has to change. A lot of these manufacturing jobs have gone overseas because theyre lowskilled jobs they can do cheap over there that traditionally have not wanted to be done here. When they come back here, what hes not talking about is automation. And that is going to be a technological thing and then its going to be educating workers to manage this new form of manufacturing. To me, there is a huge gap between what was Just Announced last week and whats going to be in the future, and right now theyre on the wrong side. Thats not a political comment. Thats just thats just technology. My comment to that, which may sound political, if youre an industry where, frankly, your company is not effective or not profitable or certainly not competitive here, get a new job. I mean, i know thats easy to say and sounds harsh. If you think about where a lot of manufacturing has gone in the United States in the last 40 years, it doesnt just happen. This is not a manufacturing hub of the world any more. So to have companies suddenly try to be competitive by putting people here, that may be a political statement. Think of how Many Industries have gone priced out of the u. S. Market from textiles to steel manufacturing. You could go down the list in the annals of industry. But if you create an environment, and we have heard this from countless business leaders, not just from utx, that you incent companies to actually pay their workers more, be more efficient. By the way, it still may mean less jobs. Whether its tax policy which has to change and sounds like it will, and thats good news, i think youre making an environment where companies can be more competitive here. But it doesnt mean you keep jobs here at all expense. And then punish them if they cant be here. And the tax change is twofold. Not just the corporate rate here. Its the potential repatriation and what that looks like, making us relatively more competitive in the world, which we are not. So thats one thing. I think the health care thing thats been a big a big cost. I dont know how theyre going to address that. We havent really heard anything yet. But its interesting to see this sort of i dont know if its a hidden message or what exactly hes trying to say. I dont think its anything hidden about it. What you mean what hayes said, the United Technology ceo or what donald trump is signalling . Well, i think its a little bit of both but i was talking about hayes. Its interesting. So this is how i look at this. How do you trade the stocks around this . I think utx got off really cheap with this one. Theyre the first one to go. Got incentives. Got incentives, relatively inexpensive. Now theyre entirely off everybodys radar screen in terms of going forward. They wont come back and beat this drum again. What does it mean . 2015 was an abysmal year for United Technology. Seems to have found its footing. Reporting in the middle of january. Industrials seem to be getting their legs back. To me, here is a stock at 107. 5, has all the potential to trade back to the alltime high at 125. Thats how i look at it in terms of the political ramifications. If they are going to get a little more favorable of a look the next federal contract that comes up who cares . I mean im not saying its bad or good. Im saying from the standpoint of a utx shareholder, may have done the right thing. Lets look at the underlying businesses under a lot of pressure, otis, pratt. I dont think the company is particularly cheap and hasnt rallied when this supposedly good news has been there for them. Im neutral at best. The press conference you know what i mean in july, pratt and whitney got an 873 Million Contract from the u. S. Defense department. This is like you i cant believe im saying this. Sarah palin said it. Shes being thought of as somebody who could be a cabinet member. She is saying this is crony capitalism at its worst. I think it sets a horrible precedent. Theyre going to get in a difficult situation. The full interview with greg hayes, ceo of utx at the top of the hour. If youre tempted to buy the dip, the commodities Dennis Gartman is here in the house. In the meantime, heres what else is coming up on fast. I dont think were right for each other. Thats what one analyst is saying about espn and disney. Calling for the mouse house to spinoff the worldwide leader in sports. How likely is that . We will have a special report. 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Weve helped the Marine Mammal center go solar, install electric vehicle charging stations, and become more energy efficient. Pg e has allowed us to be the most Sustainable Organization we can be. Any time you help a customer, its a really good feeling. Its especially so when its a customer thats doing such good and important work for the environment. Together, were building a better california. Welcome back to fast money. The trump rally continued today with all major averages closing in the green and the dow posting yet another record high. Heres whats coming up in the second half of the show. One analyst calling for the breakup of the century. Were not talking about brad and angeline. Were talking about espn and disney. Plus, from russia with love. Behind the more than 2 million bet that says the country is already sizzling stock market is about to surge to even greater heights. We start off with the energy space. Oil hitting a 17month high today before giving back the gains. Jackie deangelis with what fueled todays volatile movement. Crude, as you mentioned, continues to rally. Today broke through 52 bucks a barrel, a critical resistance point. Feeling the rally, the opec Production Cut from last week. But its also a trump trade. The president elect has made it clear that hes going to be pro energy, rolling back regulations and approving projects to spur Industry Growth and job creation. Where have we seen the biggest gains . Well take a look at the xle and also the oih, two of energys etfs up more than 10 and 20 in the last month. Also take a look at big oil. Youve got names like exxon, chevron, hest and in addition to that, the refiners, some of the services too. Kinder morgan a big move there. The most recent news about the Dakota Access project allowing the Trump Administration to kind of tip its hand on what its going to do with energy policy. A spokesman saying that the president elect is committed to construction of the project, and it will be reviewed when hes in the white house. The assumption here, that it will be a speedy approval process. So the takeaway here, the change is coming to the industry at a faster pace than expected, but theres also some risk. Crude needs to stay over 50 bucks a barrel for that momentum to continue. Melissa, back to you. All right, jackie deangelis, thank you. So will opec stick to the terms of their deal . Such a pressing question. The commodity king decided to make an appearance. Welcome Dennis Gartman, publisher of the gartman letter. You said there was going to be a deal. But then thought, oh, you know what, theyre probably going to cheat. They will cheat. When do they start cheating . When does oil fall apart . Its only a matter of time before they do cheat. This doesnt go into effect until january. They cant begin cheating until january. Theyll begin cheating by february or march. Always have, always shall. Its not going to change. Not a problem. I think what happened today, however, the fact we have not heard from the russians really important russians. We havent heard frommy gore searchen yet. He said he had no intention of curtailing production. He hasnt said anything, and i wouldnt be surprised if he says im not going to take part in this. I think youve got to 52. I have been on here several times i think 52 plus a contango of 4 out to one year, gives you 56 for a oneyear forward. Every fracker is going to make money, and hedging that aggressively. Its going to be hard to push wti much past 52. In trying to think of oils course and laying out one scenario, another parallel sort of situation going on with Trump Administration policies. If the Trump Administration makes it easier to produce oil, is that a downward pressure, and how much of a i mean, we dont know what anything is going to be. Certainly not bullish for crude oil. People supplying sand to the frackers. Clearly bullish for them. Its detrimental and overwhelming supply. An awful lot of oil that had been plugged, 52 brings the plugged oils online quickly. How many of those are profitable . I realize there are a handful of guys that can be profitable at 52 also. A lot of that has been taken off line. You have shutins around the world, and unless technology is well behind, i look at it as i think it was a race to pump as much as you want into that opec meeting. And that coming back a little bit off that for russia, whats the big deal . But that at 52 bucks, i think a lot of guys are out of business, frankly. Ill disagree. Respectfully disagree. Plenty of people can produce crude oil. As i like to say, unless god was a segregationist regarding crude oil, there is plenty of land that has not been touched yet in russia, in china, in brazil, to begin the process of fracking. Were the only country thats done it. We have been able to drive the cost down dramatically. We are about to begin exporting that technology to other countries and havent begun starting that yet. There is so much crude oil to be supplied in the market. Its difficult to get a sustained rally. So it sounds like right now you think that the bias is to the down side in the crude trade. There might be longer term a rise to 56. But right now starting in starting in february or march, there is going to be cheating and then the Trump Administration is going to come in and possibly put into effect policies that could drive the price lower. I think its going to be very, very difficult to get much past 52. I said that two months ago. I said it a month ago. Ill say it again today. Got right to 52 and stopped. As long as there is a contango, as long as there is a carrying charge for the oneyear forward to put oneyear Forward Crude Oil out to 52, 54, 55, 56, thats imminently profitable. Hedgers like it, bankers like it. One thing we didnt talk about, the strengthening dollar should also add be a bit of a headwind as well. Great to see you in person, as always. Good to be here again. Thanks for having me back. Dennis gartman of the gartman letter. Anadarko certainly one of the names has some scaleability into 52 or 54 oil, one of the few developing free flow now. Companies making a lot of money that are going to take market share at 52 to 5, they are one of them. Karen . Yes. Well, kudos to tim. Tim has been spoton in oil. For me, if you really believe in the continuation of the bull market, which im scekepticaske. I think the oih is more turbo charged, more turbo charged than the underlying commodity. You have these companies that are levered, and if they start to be able to earn more money, you get into a very Virtuous Cycle in terms of earnings and do it through the oih. Dan. I agree with you. Kudos to you. The xop also works like that too. I expect some of these oil stocks to consolidate some gains here, nearterm. The xop had the breakout. Obviously the commodity did trading at 16month highs. Look at a name like schlumber r schlumberger, obviously need to have an earnings rebound in 2017. I know it looks expensive on existing numbers. Thats one here at about 84. 5 that i think you could probably see a breakout if oil stays where it is as new projects come online in 2017. Im with tim. And we didnt talk about this, but i am with tim on anadarko petroleum. Theyre close to 1 billion at the end of october. Blew through the numbers that were supposedly what we have in terms of cash flow. We talked about the freeportmcmoran acquisition back in september 13th. I think they priced a secondary at 55, 55. 5, off to the races ever since. A lot of upgrades coming in now. I think the stock has room, believe it or not to the low 80s. Sticking with oil, russias stock market also getting a bump after the recent oil rally hitting a new 52week high. Dan has the details on one traders 2 million bet. The rsx, the etf that tracks some russian stocks, trades here in the u. S. Total options volume is three times average daily volume in the rsx today. And one large buyer february calls looking out to february expiration. 25,000 bought for 87 cents when the rsx was trading 20 and a quarter. Those are in the money. Break even, up about 3 from the trading price. One thing i thought interesting about that choice of strikes and the breakeven, look at this. 2087ish, thats where the high was in 2015, the breakdown level from 2014. Heres the other thing. Why are we talking about russia . I know dennis was just talking about russia as far as producing oil. Look at how correlated the rsx is with crude. They went the same exact way. They have been tracking one another here. This is really a defined risk way to play for a breakout and something that may be long in the tooth. The rsx is not a fantastic instrument to track russian equities 100 . Up 35 on the year. Up 70 from the february lows. This is a defined risk way to do it. Interesting that you were wasnt it your final trade . It was my oil trade last week and ultimately this economy goes through the roof. Where it is, dan, the rsx gets you the currency and the ruble is at 63 and change. Ruble is going to move significantly stronger. So nbt, the way i would play directly. But rsx is fine. Where can we learn more about things like that . You know, for more options action, check out the full show fridays at 5 30 p. M. Eastern time. Thanks for asking, guy. Youre welcome, melissa. Still ahead, one analyst calling for disney to dump its struggling sports franchise, espn. Is a spinoff even likely . We have a special report. And mcdonalds menu getting a makeover, exploring new items like never frozen beef and the mac junior. Will it be enough to boost the stock . Well explain. Youre watching fast money on cnbc, first in business worldwide. Hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. Welcome back to fast money. Mcdonalds jumping about 1 today on a bullish analyst note, making it our calling of the day. A buy, saying november could be a big month for burger sales and the mcdonalds Product Pipeline looks strong right now. Tim. And this is on top of a report out of bloom bergs saying they are looking to revamp their mccafe strategy in 2017. I think its important. But i think samestore sales from november from what im hearing are going to blow people out of the water. This is a company that was at one point in the last market segment. For the last one a dwreeld run, ultimately a place where youve got an argument that still exists, but really a company that i think will continue to show impressive moves on samestore sales. Yeah. Guy, what dunning of mickey ds . Its close to 20 times forward earnings. If these comps come out, the market will start to play catchup again and you can see it in the high 120s in a month, month and a half, i think. Dan is shaking his head no. I think also we talked about it before the dollar could have arch impact here. Obviously a lot of growth from overseas. The north american komps have been better. But in a down trade for the last year, and so theyre anniversarying a lot of the changes. You know, by the way, this isnt the time to talk about the dollar, but the dollar is down six or seven sessions. This whole from multinationals coming under pressure, a limit to how high the dollar can go here. Is disney better off alone . An analyst saying the media giant should dump its sports network, espn. Julia boorstin is here onset for an appearance with all of the details. Julia. So great to be here. Thats right. Rbc outlining whether disney should analyze espn. Saying separating espn suffering from concerns about cordcutting would improve disneys growth rate and more efficiently price the media giants assets. Khealth says disney could spinoff espn to a separately traded Public Company or find a buyer. Doing either would put disney more in play for m a, putting cash on the balance sheet, disney could use for acquisitions or organic investments. Disney ended 1. 5 higher but not just on this speculation but on news disney films have set a Box Office Records on the news of the Strong Performance this past weekend. Its the strength of the movies and how they play into theme parks and products that ultimately determines disneys future, says rbcs cahill. But plenty of reasons that its worth it for disney to hold on to espn. Not just espns cash flow but the fact that having espn gives disney more negotiating leverage for its whole bundle of channels. January month loan suggested that espn back in november, when i asked disney ceo bob iger about the suggestion, he said that it was just malones speculation. Heres what he said about why it makes sense to hold on to espn. Were dealing with some nearterm issues on the subside. Eyes wide open on that. Not trying to hide anything. But you know, we think longterm prospects for espn are just fine. No word back from disney, but iger certainly dismissed this idea of spinning off espn on disneys last earnings call. Were trying to rack our brains on what some situations were, and one we could think of, viacom and cbs, and cbs looked at the problem child of the two, and via come healthier and now looking to remerge. Yes, i feel in a way espn is a totally different beast than viacom and cbs. And that was a different time, ten years ago when the two Companies Split off. Right now, if you look at the revenue and the profits of the media networks, thats the biggest chunk of disneys business. Espn is obviously just a piece of that. This is a business that has a lot of longterm rights baked in, and from disneys perspective, you could see why they want to hold on. Dan. No no, its not. You go. All right. So i was going to ask, you interview iger once a quarter and probably talk to a lot of people out there. When he says espn is just fine, how do you take that . You know what i mean . Whats a concern level . I think what was really interesting about this past quarter, when i interviewed him and he made comments on the earnings call, he really assured people. He acknowledged there are some nearterm issues but taking steps to make sure there is profitability over the long run and growth. And sounded like there would be a year working out issues. Bam tech, a piece of bam tech and laid the ground work to buy the rest. And deals like that have been reassuring people that over the longrun, it makes sense to have espn in there. What would espn ultimately be worth staying alone . I think there are a lot of questions that it would make sense to have it be a spinoff or sold. And im not sure what it will be worth. I think that we have to remember, its probably worth less than if its part of the bundle for disney. Because now disney uses it for negotiating leverage when selling for Everything Else to cable distributors. Julia, thank you. Good to see you in person. Julia boorstin. Great to be here. Youre making the point that a spinoff would make far more sense. I dont get the being sold part and what would that say to the market if seemingly theyre such an important asset to them. And now its time to sell. Well get a good price. I dont know. I am very skeptical of that. Maybe a spin maybe. But im skeptical of that, as well. I think they will put in the time to attempt to fix it. Well, i mean, spinoff right now people would say, you know, back to dans question, this is a time of panic, i dont think it is. But ultimately put them in a position to evolve with the industry. Meanwhile, some of the parts if you want to do that with disney, look at the studios and their core business and you look at, you know, amusement parks and some of the Consumer Product side of the business, these are all amazing businesses. And theyre ones that continue to grow quite rapidly. So on some of you could make an argument disney is being discounted by espn here, and therefore, spin it out. When it came to me, actually was g g capital. G got rid of ge capital potentially at the worst at a trough. I disagree. Well, they didnt get rid of it at its zenith. They had to take it, it was 2008, they had ge capital and then such an albatross, regulations, other things. But in terms of where it was today would have been better. Youre right. At any rate, how do you trade disney right now . If you go back to court, november 11th they reported. That was not a great quarter. And this stock, which closed at 95, trading with a 92 handle in post earnings, until bob iger came out and whatever he said, assuaged the fierce of the market. Now it means the market is seemingly play catchup and it could get back to 10 a. Coming up, when it comes to buying a car this year, everything old is new again. Phil lebeau will tell us exactly what that means. Phil. I mean, what happens trump [ no audio ] you got it what do you think . If youre going to wish, wish big at the lexus december to remember sales event get up to 2500 customer cash on select 2016 and 2017 models for these terms. See your lexus dealer. Welcome back. They say one mans trash is another mans treasure. Thats exactly what is happening in the Auto Industry this year. Cnbcs phil lebeau is in chicago with more. Hi, phil. Hi, melissa. Used auto sales on a record pace for this year. You might be saying, how many can they sell . Well, theyre selling way more used vehicles than new vehicles. New vehicles, 17. 5 million this year. Were on pace to see almost 41 million used vehicle sales this year. In the Third Quarter, the average price for a used vehicle, a little over 19,000. Its up about 400 compared to the same time a year ago. And the buyers are the ones who have the top credit ratings. Theyre buying more of the used vehicles. In fact, thats the biggest growth when it comes to used vehicle loans, those are prime and super prime credit. Youve got a wave of vehicles coming off three or four year leases being pushed several years ago by the automakers, coming off, going through the auto actions, and as a result youve got auto prices at the same time, because there is so much inventory coming on the market, theyre growing a little bit slower than new vehicle prices. You put that all together, and it makes it a very attractive time for people who are not only looking to buy a used automobile, but also for the auto dealer stocks and auto dealer chains. Pens Key Auto Group said they would be buying a used only chain in pennsylvania and new jersey. Why . Because they think they can scale it nationwide. This is where the growth is when youre looking at the Dealership Group in terms of their future business plans. Used automobiles, they believe there is a lot of Growth Potential there. Guys, back to you. So phil, when we think about new auto sales, how do we think about the used auto market . Does it trail a peak in new auto sales . In the cycle what were seeing right now when youre near the end of the new cycle and doesnt mean well see a falloff, but when seeing it plato like this, the used cycle continues to grow faster than new vehicle sales for at least a couple years. The percentage growth is going off 4 for used and what, maybe a half percent, third percent for new. Thats likely to continue for the next couple years if the trend holds what we see with past auto cycles. All right. Phil, thank you. Phil lebeau in chicago with that story. Guy . Hi. Phil right. This is over the summer, tim and bk had a big argument about mike jackson and autonation. It was epic. If i wasnt in touch with what was going on with mike jackson, i didnt know the economy. Well say this, though. You look at that stock over the course of this year, the stock has not been trading well. I think that was bks point exactly. If what phil says is true, autonation at ten times forward earnings with a pretty significant Short Interest is a pretty interesting trade on the long side. Yeah. Also, if you look at hertz, they have a giant, giant fleet. And if the prices hang in there, that is good for them. They seem object literally, again on the wrong side of history. When you look at the wrong side of hertz and avis and the way they acknowledgt, unless they h they get into the uber sort of business and so i want to go back to the autos, and i want to look at gm trading less than 4 in the last 12 months and thats the whole reason. The last 12 months. Earnings like that to me are something that are going to be both affirmed and to me this is discount at a time when people priced into the end of the cycle two years ago. Interesting. Gm seems to be the well was your first car a gm car or something . It was not oh im getting set up here. Do you want to know . Yes, set it up i had a porsche 914. Of course you did. It was a volkswagen engine, a coollooking car. By the way, that was my paper route money that made that car. Sure. We just want to get that out there. Up next, karen looking at one mega tech stock she says is oversold. More fast straight ahead. Yeah, chevy was great in that. Who played the wife . Beverly dangelo Juliette Lewis costarred as the daughter. Chris columbus was the director. Its called claymation. Narwhals really exist. Actually guys, it was the ghost of christmas past. Never stick your tongue on a frozen flag pole. Yukon cornelius. Die hard is considered a Christmas Movie thats the unlimited effect. Stream your entertainment with unlimited data when you switch to at t and have directv. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley final trade. Tim. Restoration hardware to me is the Home Improvement trade and luxury trade. Stay in this one. Karen. Yes. Facebook had a nice bounce today but thats hardly anything. There is still great value here. I know its out of favor. In the long run, be happy to own it here. Dan nathan. Xlv, i like it as the dogs in the dow. Guy. Lululemon, sister all right. Thanks for watching. See you back here at 5 00. In the meantime, dont go anywhere, jim cramers exclusive interview with graying greg hayes. That 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. I promise to help you find it. Mad money starts now. Hey, im cramer. Welcome to mad money. Welcome to cramerica. Other people want to make friends. Im trying to make you a little money. My job isnt just to entertain but to teach you. Call me at 1800743cnbc. Or tweet me jim cramer. How can the same things that sent us down not that long ago actually be totally ignored now . How can we have still one