Transcripts For CNBC Fast Money 20180207 : comparemela.com

Is here to explain chris harvey is our guest. Just when you thought it was stave to go back into the market the market taking investars on ride again it surged 400 points but the last few minutes a different story, stocks getting crushed losing 300 points in 15 minutes of trading the cause, potentially higher rates. Folks, it looks like we are going to need a bigger boat, or a bigger bank account. The ten year yield surging past 2. 85 . Which weighed heavily on the market today with 1,000point swings in a matter of moments, the type of volatility we have not seen in years. Guy adami . Yes, sir. The longer this goes on, mom and pop are going to read about it on the cover of u. S. A. Today. Should they feel safe getting into this market safety you are implying that volatility makes the market less safe. It just makes the market more volatile i think in terms of safety, stocks are a Collateral Damage of whats going on the stock market is intact whats not intact is that the volatility is back for the first time in a long time pete said he saw 20 put buyers in the vix i think vix printed. Close and it came right back. I said volatility is here to stay i happen to think its going to be here for an extended period of time, march or april. What im trying to so though pete, the vix aside, i get that. For mom and pop they are not talking about the vix. What they are talking about, hey, the dow soared today, now it collapsed oh, but then it soared again is that a safe market they want to put their money into . I think thats a conversation a lot of people are going to have . Im sure it is a conversation safe people always should if they are at homeand not trading every day like those of us on the desk you have to go through this and the fundamentals guy just brought it up the fundamentals are there january we were fulfilled with unbelievable numbers in earnings many of the companies not all. There are somesst that are in stratosphere in terms of the price to earnings ratio. Yesterday we talked about goldman sachs. I dipped my toe in yesterday i bought some. I decided to sell it the morning. Why . Not because i felt like it was on a top because the stock moved 12 in 12 hours thats why i took it off. The market got overly complacent in a time of fear in other words on friday we had a move up on Interest Rates on a payroll number everybody spent the next days talking about this was an even born out of a cycle. Its not im not going to tell you its blown out of the water but for the folks at home, a market with volatility is a riskier market i dont agree for who the volatility index spikes, its called the fear index, it spikes when the market down. The same stocks that had no fundamental difference, reported great earnings, we have a tax bill, right, those things are exactly the same, and yet its cheaper. Feels bad. Its scary but the price is actually cheaper. This is the same stock three days ago. Thats great if you do nothing. But a lot of people dont sit around and do nothing. By dings in a stock market when i stock moves like this all over the place it is a riskier investment it would seem safer when the volatility index was 13 two weeks ago and stocks were up here, that seemed safe im long then. This is one reason to i dont want to say ignore the vix. But what bothers me about the vix this is what you are getting at look. The bottom line i dont think we finished the point. Though. I think you did. I get what you are saying, karen, ultimately we have a situation where i think there is a lot of stocks and volatility is portending maybe a higher move in volatility isnt it. No, i think volatility is going to come down over the coming weeks not up. Could it spike again sure, but i think its coming down from 25 or 26 where it closed i think we are in for something lower. I dont think its going to stay at 30 part of my earlier toin was that people thought we got through this we wanted to explain a reason why the stock market did what it did. In fact there are multiple reasons. Another reason today is the dollar moved 1 . 2. 2 in the dollar off the lows in recent sessions quietly at a time when the dollar was your best friend over the last months. Its about algorithms, about the dollar, all islanders kinds of different issues tim. I agree with you i think you are saying the same thing. To karens point when you get this kind of volatility, often times it creates the opportunity. Yes. That opportunities comes with you get a 1200 point sell of, you are looking for those opportunities because we already know a lot of the fundamental facts because many of those names hare part of that actually have given us the fact, given us their earnings, they have told us how well thing are going. I dont think thats going change over the quarter, two quarters, three quarters it does create opportunity is there a fear factor there is a fear factor volatility is high it doesnt always mean you cant participate in the market because i think you can. Can i talk . Back to you thank you okay everybody. See you tomorrow night pete, why does the vix only seem to go up when the market is going down if its truly a volatility index it should be just as crazy when stocks soar as when they collapse. No doubt about that we have seen the market go up and the vix go up, but it was off those lower levels that happens all the time. Remember this, yes, we call it the fear index i dont, but most everybody else does ill play along. I dont call it that. You call it the fear index. Its giving you a measurement of how Much Movement is in the marketplace. Karen and i were talking about this a 30 vix, its going to sustain monsterous moves within the s p 500 on a dily basis. Thats why a 308 vix doesnt last very long thats why we see these spikes and it comes right back down. In terms of when is it safe to get bakken in, i think thats sort the way we thread show. Tuesday, Martin Luther king day. Pete just mentioned day has the market and the vix goes higher, go back to that tuesday after Martin Luther king day thats exactly what happened i think the dow was up close to 300 points the vix was higher that day. First time we had seen that in years. When do you know its safe to get back in in terms of volatility going away, a day in my opinion that the market is down big and the vix is lower as well you saw a little bit of it today, maybe but guy, what leads us im winning to worry if im wrong, tell me, the vix is leading equities rather than equities leading the vix because the vix has become its own beast. We saw friday pulmohad to buy far toured vix futures because they got zrud on the the volatility contracts the vix is responding to market factors not stock factors. You want the know when its time to get back into the market we are not telling people to get oust market but when should people feel like things calmed down Interest Rates are 2. 85 on the ten year the dollar is up 2 . Marco, on our show last night, he said he thought that actually you had gotten bad news out of the way that rates were so oversold to the upside they had to come back in. Right now it doesnt look like they want to come back in. And considering where we were and how much of a coiled spring rates from under and how Central Banks manipulated rates and people dont know where they are going. Karen feynman, i understand the rate argument. I get it its the darth vader its the easy willan in 203, the tenyear spiked to 3. 0 . Right and stocks continued to rise. Right. It moved just as quickly then we are not there yet, and everyone is saying, oh, a 15 basis point move in the tenyear is destroying equity valuations. I mean i understand the argument i dont really subscribe to it to me, the rates are moving because we have a gdp thats started to come along. That is normally good thing for stocks i am afraid of a big spike up. So when we have that taper tantrum that you referred to, or we had one in 1994 but usually, when we have rising rates the market actually does go up. So as long as we dont have rates that spike out of nowhere. Thats the scary thing rising rates on their own are really okay. All the markets ups and downs this week sent 14 dow stocks into correction, down more than 10 from their highest. Our next guest has three names that could be worth a buy right now even with all the volume it the of the robert stoimer. Bring good news and optimism can you . Lets look at the dow 30. If you think about the names caterpillar, boeing, visa, stocks that have had astronomical moves and to a certain extent look like the market we are going to look at a few names. It is a little bit of dumpster diving but i think the risk profile is lower than the high moment up stocks this is a chart of ibm going back to 1998 it has been a dog in the 20 0s a big bear market. And now its trying the bottom up this 140, 145 range becomes an interesting area to look like it doesnt look like the market. It is not a crowded momentum trade. Whats the concern here . Relative performance is very, very weak. I tell us the institutional managers havent come back to the stock. I want to see that improve but i think from a price profile and from a risk, air pocket standpoint it is Reasonable Risk reward for long term investors. Not for traders. Chevron. Energy market has been trying to put in a bottom since 2015 we are seeing higher lows and higher highs enkremtally starting to improve. Again it is a profile that doesnt look like the Broader Market you can draw this rough trench channel. Chevron has come back into an awful lot of support here. These pullbacks become opportunities. You can getting a 3. 9 dividend. Thats a healthy yield on a stock like that. And lastly, disney a name thats been at a roughly 30 correction for over two years. It doesnt look like a high model up name. It is not stretched above his 200day. If we were to draw a 200 week it comes in here thats very Long Term Support this is what nike looked like a month and a half ago before it started to take off. Inthe risk reward in these levels looks attractive. Those are three names. High difficult ends, ibm is 3. 8. Chef ron is 3. 9. Disney is 1. 25 but they are nonmarket profile stocks the give you diversification. Rob, its like the reverse survivor on this show. We dont vote people off we vote people on. You have got decide if rob. Bring him in. Do you speak for everybody. Im with him. You are in . Yeah. I want a piece of robert . What about me, my vote is moot. It doesnt matter anymore rob, come over the water is fine he was in limbo for a moment. Is there any one of those names thank you by the way. I think we need the technicals, things that look good the best out of those three. From the a long term investors, i think if you look at ibm and that big long ugly bottoming pattern, very diversified, looks completely different from the market. Its going to take time but i think it is in a bottoming profile. Thats the name i pick. When you look at the disney and the ones that at least have lets face it those two names right there are stocks that in the last few months are challenges, have they been underperforming during this period have you been surprised at the resilientsy . They havent been resilient their relative performance is drifting off the phage and Everything Else has been higher. You have to sort of a look at the stocks and say what is wrong with these names the market is good attin sniffing out leadership and good fundamentals i think after that consolidation you are seeing names that are working through a transition again f we are trying to diversify portfolios away from the higher momentum i dont think you have to sell it all but giving you Downside Protection a few of these names and they have dividends. You get paid to wait are these Collateral Damage of whats going on in volatility or are the fundamentals of the stocks driving volatility . I cant speak to the fundamentals but if you look at the price profiles of the market overall, a lot of the cyclicals, a lot of the momentum names, they had an incredible surge from august 15th right through the beginning of january they were getting extended i dont think anybody at this desk would have looked at the profile of the stock market and said a pullback wouldnt be unusual. Its almost too textbook the vix spikes, trend spikes. Thats the point. Its almost, almost too perfect of i dont know if the fundamentals are changing. The market will sniff that out but at this point it still looks like just a pullback within a longer term bull market. Our cycle, bottom 16 i think the next bear market is 19 i think 18 issing go to be fine but more volatility. Heard the out, too bill canada. Anybody like any of these names . I have got a question about disney on your chart you sort of had in channel. Yeah. What sit downside fit breaks through the bottom of that. I didnt put the 200 week on that if you look at 200 week as a proxy for the fur year moving average thats where it bottomed at 16. The low end of the trading range i think is going to hold i dont think its going to break. You had two years to break this in the bull market i think the downside is limbed rob, a pleasure. Coming up, tesla reporting their numbers moments ago. The Conference Call kicking off in a few minutes we will let you know what elon musk is telling investors about the quarter. Plus, bitcoin and stocks are doing something they have never ever done before and that could spell more volatile moves ahead well tell you what it is and how you might be able to profit. Later on, steve wynn stepping down from his namesake company. Now rumors are floating that the casino giant may be up for sale. What is the empire worth without the man whose name is on the building if alys e nastarright, the answer my surprise you much for fast money still ahead. Oh, thats lovely. So graceful. The corkscrew spin, flawless. His signature move, the flying dutchman. Poetry in motion. And there it is, the baby bird. Breathtaking. A sumo wrestler figure skating . Surprising. Whats not surprising . How much money heather saved by switching to geico. Fifteen minutes could save you fifteen percent or more. At holiday inn express, we cant guarantee that youll be able to contain yourself at our breakfast bar. Morning, egg white omelet. Sup lady bacon fruit, there it is but we can guarantee that youll get the best price when you book with us. Holiday inn express. Be the readiest. We have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. We have a news alert on fast money regarding former ge ceo and Athena Health. File this under maybe the most surprising headline of the year. Or ironic at any rate the former chairman and ceo of ge was pushed out by activist investors at the try and fund. Now named the chairman of Athena Health thats the electronic records and health i. T. Firm in boston where he had moved for ge. Immelt when he was at ge pushed health care n. A statement in the announcement he said he has always been inspired by founderled firms. The founder of the firm, Jonathan Bush who has been under pressure from activist investors at elliot management for the better part the last year, will remain as ceo. And he in the statement also welcomed jeff immelts participation. The stock was up 1 during the session and up 1 afterhours. The interesting thing is that the shakeup they have been pushing for has helped the stock. It was up 20 last year after having been down 30 the year before immelt as part of the deal is going to be buying 1 million worth of the stock as part of his compensation he will get 280,000 of restricted stock this year. Interesting timing in the filing, Jonathan Bush sold about 25k shares as part of a planned sale back to you. Wow really amazing better that comes, thank you very much. Look at this chart of ge or whatever some are calling gem immelts reign of stock terror down 35 during his 16year run as ceo the s p of course making all time highs during that time. He made bad decisions and bad deals, you heard the story that he had a back up jet following his own jetsam of the time what do you think of him being named chairman of a reasonably sized company. I think he is a smart guy and can probably help the company. He is not running the company. Hes brought in as a chairman. Say what you want about him but he is a guy with expertise and a skill set. Athena, look, the story there is they have been growing their operating margins. They have been struggling to show they can ramp up that business i dont think this is a booead hire he is chairman of the company. Jeff as proven he is reactive, not proactive. Thats why ge is down. Its down when the s p went up thats what concerns me. The advice he is giving them might not be the advice they want they sold at the hi ill defend him a bit and say that the one part of ge people say may have the most value aside from the aircraft engines is health care, karen. I think the job of the chairman isnt to form the strategy i think the job of the chairman, might be somewhat, particularly in this company, reign in the ceo a little bit bring in some more Corporate Structure i guess hes chairman of the board. Hes herding those cats. But i agree he is not running this company. If it was rumored, i sort of believe it was true that he was at some point in the race to run uber so guy adami, would you, if the you owned athena would you sell it on this news . If you dont own it would you buy it. It trades now at 32 times forward earnings, give or take, which is expensive in term of the market and expensive when you compare to its pierce. Certainer, trades closer to 21 times forward earnings to answer your question, i would sell the stock on valuation not necessarily mr. Immelt in and out. Still i head tesla volatile after hours the Conference Call and the results getting underway in a couple of minutes. What analysts are waiting to hear from elon musk later on you are watching cnbc first in business worldwide heres whats coming up on fast money. Snap out of it. Shares of snape have done just that. Surging 50 . We will tell you why that could be just the beginning. Has bitcoin suddenly become the tail that is wagging the markets dog well explain why when fast money returns g. Lets create jobs, build bridges, insure prosperity. As Collateral Damage<\/a> of whats going on the stock market is intact whats not intact is that the volatility is back for the first time in a long time pete said he saw 20 put buyers in the vix i think vix printed. Close and it came right back. I said volatility is here to stay i happen to think its going to be here for an extended period of time, march or april. What im trying to so though pete, the vix aside, i get that. For mom and pop they are not talking about the vix. What they are talking about, hey, the dow soared today, now it collapsed oh, but then it soared again is that a safe market they want to put their money into . I think thats a conversation a lot of people are going to have . Im sure it is a conversation safe people always should if they are at homeand not trading every day like those of us on the desk you have to go through this and the fundamentals guy just brought it up the fundamentals are there january we were fulfilled with unbelievable numbers in earnings many of the companies not all. There are somesst that are in stratosphere in terms of the price to earnings ratio. Yesterday we talked about goldman sachs. I dipped my toe in yesterday i bought some. I decided to sell it the morning. Why . Not because i felt like it was on a top because the stock moved 12 in 12 hours thats why i took it off. The market got overly complacent in a time of fear in other words on friday we had a move up on Interest Rates<\/a> on a payroll number everybody spent the next days talking about this was an even born out of a cycle. Its not im not going to tell you its blown out of the water but for the folks at home, a market with volatility is a riskier market i dont agree for who the volatility index spikes, its called the fear index, it spikes when the market down. The same stocks that had no fundamental difference, reported great earnings, we have a tax bill, right, those things are exactly the same, and yet its cheaper. Feels bad. Its scary but the price is actually cheaper. This is the same stock three days ago. Thats great if you do nothing. But a lot of people dont sit around and do nothing. By dings in a stock market when i stock moves like this all over the place it is a riskier investment it would seem safer when the volatility index was 13 two weeks ago and stocks were up here, that seemed safe im long then. This is one reason to i dont want to say ignore the vix. But what bothers me about the vix this is what you are getting at look. The bottom line i dont think we finished the point. Though. I think you did. I get what you are saying, karen, ultimately we have a situation where i think there is a lot of stocks and volatility is portending maybe a higher move in volatility isnt it. No, i think volatility is going to come down over the coming weeks not up. Could it spike again sure, but i think its coming down from 25 or 26 where it closed i think we are in for something lower. I dont think its going to stay at 30 part of my earlier toin was that people thought we got through this we wanted to explain a reason why the stock market did what it did. In fact there are multiple reasons. Another reason today is the dollar moved 1 . 2. 2 in the dollar off the lows in recent sessions quietly at a time when the dollar was your best friend over the last months. Its about algorithms, about the dollar, all islanders kinds of different issues tim. I agree with you i think you are saying the same thing. To karens point when you get this kind of volatility, often times it creates the opportunity. Yes. That opportunities comes with you get a 1200 point sell of, you are looking for those opportunities because we already know a lot of the fundamental facts because many of those names hare part of that actually have given us the fact, given us their earnings, they have told us how well thing are going. I dont think thats going change over the quarter, two quarters, three quarters it does create opportunity is there a fear factor there is a fear factor volatility is high it doesnt always mean you cant participate in the market because i think you can. Can i talk . Back to you thank you okay everybody. See you tomorrow night pete, why does the vix only seem to go up when the market is going down if its truly a volatility index it should be just as crazy when stocks soar as when they collapse. No doubt about that we have seen the market go up and the vix go up, but it was off those lower levels that happens all the time. Remember this, yes, we call it the fear index i dont, but most everybody else does ill play along. I dont call it that. You call it the fear index. Its giving you a measurement of how Much Movement<\/a> is in the marketplace. Karen and i were talking about this a 30 vix, its going to sustain monsterous moves within the s p 500 on a dily basis. Thats why a 308 vix doesnt last very long thats why we see these spikes and it comes right back down. In terms of when is it safe to get bakken in, i think thats sort the way we thread show. Tuesday, Martin Luther<\/a> king day. Pete just mentioned day has the market and the vix goes higher, go back to that tuesday after Martin Luther<\/a> king day thats exactly what happened i think the dow was up close to 300 points the vix was higher that day. First time we had seen that in years. When do you know its safe to get back in in terms of volatility going away, a day in my opinion that the market is down big and the vix is lower as well you saw a little bit of it today, maybe but guy, what leads us im winning to worry if im wrong, tell me, the vix is leading equities rather than equities leading the vix because the vix has become its own beast. We saw friday pulmohad to buy far toured vix futures because they got zrud on the the volatility contracts the vix is responding to market factors not stock factors. You want the know when its time to get back into the market we are not telling people to get oust market but when should people feel like things calmed down Interest Rates<\/a> are 2. 85 on the ten year the dollar is up 2 . Marco, on our show last night, he said he thought that actually you had gotten bad news out of the way that rates were so oversold to the upside they had to come back in. Right now it doesnt look like they want to come back in. And considering where we were and how much of a coiled spring rates from under and how Central Banks<\/a> manipulated rates and people dont know where they are going. Karen feynman, i understand the rate argument. I get it its the darth vader its the easy willan in 203, the tenyear spiked to 3. 0 . Right and stocks continued to rise. Right. It moved just as quickly then we are not there yet, and everyone is saying, oh, a 15 basis point move in the tenyear is destroying equity valuations. I mean i understand the argument i dont really subscribe to it to me, the rates are moving because we have a gdp thats started to come along. That is normally good thing for stocks i am afraid of a big spike up. So when we have that taper tantrum that you referred to, or we had one in 1994 but usually, when we have rising rates the market actually does go up. So as long as we dont have rates that spike out of nowhere. Thats the scary thing rising rates on their own are really okay. All the markets ups and downs this week sent 14 dow stocks into correction, down more than 10 from their highest. Our next guest has three names that could be worth a buy right now even with all the volume it the of the robert stoimer. Bring good news and optimism can you . Lets look at the dow 30. If you think about the names caterpillar, boeing, visa, stocks that have had astronomical moves and to a certain extent look like the market we are going to look at a few names. It is a little bit of dumpster diving but i think the risk profile is lower than the high moment up stocks this is a chart of ibm going back to 1998 it has been a dog in the 20 0s a big bear market. And now its trying the bottom up this 140, 145 range becomes an interesting area to look like it doesnt look like the market. It is not a crowded momentum trade. Whats the concern here . Relative performance is very, very weak. I tell us the institutional managers havent come back to the stock. I want to see that improve but i think from a price profile and from a risk, air pocket standpoint it is Reasonable Risk<\/a> reward for long term investors. Not for traders. Chevron. Energy market has been trying to put in a bottom since 2015 we are seeing higher lows and higher highs enkremtally starting to improve. Again it is a profile that doesnt look like the Broader Market<\/a> you can draw this rough trench channel. Chevron has come back into an awful lot of support here. These pullbacks become opportunities. You can getting a 3. 9 dividend. Thats a healthy yield on a stock like that. And lastly, disney a name thats been at a roughly 30 correction for over two years. It doesnt look like a high model up name. It is not stretched above his 200day. If we were to draw a 200 week it comes in here thats very Long Term Support<\/a> this is what nike looked like a month and a half ago before it started to take off. Inthe risk reward in these levels looks attractive. Those are three names. High difficult ends, ibm is 3. 8. Chef ron is 3. 9. Disney is 1. 25 but they are nonmarket profile stocks the give you diversification. Rob, its like the reverse survivor on this show. We dont vote people off we vote people on. You have got decide if rob. Bring him in. Do you speak for everybody. Im with him. You are in . Yeah. I want a piece of robert . What about me, my vote is moot. It doesnt matter anymore rob, come over the water is fine he was in limbo for a moment. Is there any one of those names thank you by the way. I think we need the technicals, things that look good the best out of those three. From the a long term investors, i think if you look at ibm and that big long ugly bottoming pattern, very diversified, looks completely different from the market. Its going to take time but i think it is in a bottoming profile. Thats the name i pick. When you look at the disney and the ones that at least have lets face it those two names right there are stocks that in the last few months are challenges, have they been underperforming during this period have you been surprised at the resilientsy . They havent been resilient their relative performance is drifting off the phage and Everything Else<\/a> has been higher. You have to sort of a look at the stocks and say what is wrong with these names the market is good attin sniffing out leadership and good fundamentals i think after that consolidation you are seeing names that are working through a transition again f we are trying to diversify portfolios away from the higher momentum i dont think you have to sell it all but giving you Downside Protection<\/a> a few of these names and they have dividends. You get paid to wait are these Collateral Damage<\/a> of whats going on in volatility or are the fundamentals of the stocks driving volatility . I cant speak to the fundamentals but if you look at the price profiles of the market overall, a lot of the cyclicals, a lot of the momentum names, they had an incredible surge from august 15th right through the beginning of january they were getting extended i dont think anybody at this desk would have looked at the profile of the stock market and said a pullback wouldnt be unusual. Its almost too textbook the vix spikes, trend spikes. Thats the point. Its almost, almost too perfect of i dont know if the fundamentals are changing. The market will sniff that out but at this point it still looks like just a pullback within a longer term bull market. Our cycle, bottom 16 i think the next bear market is 19 i think 18 issing go to be fine but more volatility. Heard the out, too bill canada. Anybody like any of these names . I have got a question about disney on your chart you sort of had in channel. Yeah. What sit downside fit breaks through the bottom of that. I didnt put the 200 week on that if you look at 200 week as a proxy for the fur year moving average thats where it bottomed at 16. The low end of the trading range i think is going to hold i dont think its going to break. You had two years to break this in the bull market i think the downside is limbed rob, a pleasure. Coming up, tesla reporting their numbers moments ago. The Conference Call<\/a> kicking off in a few minutes we will let you know what elon musk is telling investors about the quarter. Plus, bitcoin and stocks are doing something they have never ever done before and that could spell more volatile moves ahead well tell you what it is and how you might be able to profit. Later on, steve wynn stepping down from his namesake company. Now rumors are floating that the casino giant may be up for sale. What is the empire worth without the man whose name is on the building if alys e nastarright, the answer my surprise you much for fast money still ahead. Oh, thats lovely. So graceful. The corkscrew spin, flawless. His signature move, the flying dutchman. Poetry in motion. And there it is, the baby bird. Breathtaking. A sumo wrestler figure skating . Surprising. Whats not surprising . How much money heather saved by switching to geico. Fifteen minutes could save you fifteen percent or more. At holiday inn express, we cant guarantee that youll be able to contain yourself at our breakfast bar. Morning, egg white omelet. Sup lady bacon fruit, there it is but we can guarantee that youll get the best price when you book with us. Holiday inn express. Be the readiest. We have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. We have a news alert on fast money regarding former ge ceo and Athena Health<\/a>. File this under maybe the most surprising headline of the year. Or ironic at any rate the former chairman and ceo of ge was pushed out by activist investors at the try and fund. Now named the chairman of Athena Health<\/a> thats the electronic records and health i. T. Firm in boston where he had moved for ge. Immelt when he was at ge pushed health care n. A statement in the announcement he said he has always been inspired by founderled firms. The founder of the firm, Jonathan Bush<\/a> who has been under pressure from activist investors at elliot management for the better part the last year, will remain as ceo. And he in the statement also welcomed jeff immelts participation. The stock was up 1 during the session and up 1 afterhours. The interesting thing is that the shakeup they have been pushing for has helped the stock. It was up 20 last year after having been down 30 the year before immelt as part of the deal is going to be buying 1 million worth of the stock as part of his compensation he will get 280,000 of restricted stock this year. Interesting timing in the filing, Jonathan Bush<\/a> sold about 25k shares as part of a planned sale back to you. Wow really amazing better that comes, thank you very much. Look at this chart of ge or whatever some are calling gem immelts reign of stock terror down 35 during his 16year run as ceo the s p of course making all time highs during that time. He made bad decisions and bad deals, you heard the story that he had a back up jet following his own jetsam of the time what do you think of him being named chairman of a reasonably sized company. I think he is a smart guy and can probably help the company. He is not running the company. Hes brought in as a chairman. Say what you want about him but he is a guy with expertise and a skill set. Athena, look, the story there is they have been growing their operating margins. They have been struggling to show they can ramp up that business i dont think this is a booead hire he is chairman of the company. Jeff as proven he is reactive, not proactive. Thats why ge is down. Its down when the s p went up thats what concerns me. The advice he is giving them might not be the advice they want they sold at the hi ill defend him a bit and say that the one part of ge people say may have the most value aside from the aircraft engines is health care, karen. I think the job of the chairman isnt to form the strategy i think the job of the chairman, might be somewhat, particularly in this company, reign in the ceo a little bit bring in some more Corporate Structure<\/a> i guess hes chairman of the board. Hes herding those cats. But i agree he is not running this company. If it was rumored, i sort of believe it was true that he was at some point in the race to run uber so guy adami, would you, if the you owned athena would you sell it on this news . If you dont own it would you buy it. It trades now at 32 times forward earnings, give or take, which is expensive in term of the market and expensive when you compare to its pierce. Certainer, trades closer to 21 times forward earnings to answer your question, i would sell the stock on valuation not necessarily mr. Immelt in and out. Still i head tesla volatile after hours the Conference Call<\/a> and the results getting underway in a couple of minutes. What analysts are waiting to hear from elon musk later on you are watching cnbc first in business worldwide heres whats coming up on fast money. Snap out of it. Shares of snape have done just that. Surging 50 . We will tell you why that could be just the beginning. Has bitcoin suddenly become the tail that is wagging the markets dog well explain why when fast money returns g. Lets create jobs, build bridges, insure prosperity. As Investment Management<\/a> professionals, lets measure up. Cfa institute. Today, smart planning is helping the new new york rise higher than ever. As the world leader in unmanned aerial systems, were attracting the worlds best talent to central new york. And turning the airport into a firstclass transportation hub. All while growing urban areas into vibrant places to live and work. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, thwho hold themselveshe to a higher standard. They are called cfa charterholders. Demand the best. Demand a cfa charterholder. Cfa institute. Welcome back to fast money. Stocks up. Bitcoin up stocks down, bitcoin down. Hmm. Has bitcoin become a market gauge . Lets go down to the New York Stock Exchange<\/a> a party has broken out there is a Party Every Day<\/a> down here. If they were just playing the cheers theme from the 80s here. The 80s never died down here. Is bitcoin and the s p 500 correlated it might seem that way if you look at what happened in the last week or so. Bitcoin has died as the s p 500 has died bounced on tuesday just as the market has bounced looks like there is a relationship but the longer term correlation is much weaker obviously, bitcoin was up 1300 . The s p was up perhaps 35 tup 2 as the number of people trading bitcoin increases its possible the correlation could go up. The vast majority of Crypto Trading<\/a> is done by retail. We know that now we have a massive sell of in the crypto market. The question is, what percentage of the crypto mark is also investing in stocks and did the sell off also cause them to sell their Stock Holding<\/a> . I tend to think it gets into a causation causes correlation but you could argue that cryptocurrencying were an uncorrelated asset now that said its possible it worked in the other direction this we are. The s p 500 impacted bitcoin and cryptos. The suddenness and the steepless of the plunge may have caused fear and selling generally, perhaps even in bitcoin. Maybe there is a relative correlation there. Back to you. Thank you very much bob pass ana. Correlation is not causation. Lets say it all together. Correlation is not causation. Thank you very much i want to see you after class. Did you need to reinforce that he said lets stay it together i stayed quiet. Whats up i have got to keeprise raising the chair up. Guy adami, do you think that bitcoin is in any way related to the equity markets personally i dont but the small history bitcoin has suggests maybe there is something toy. I said all along if you want to trade equities on the back of this is best way to go is cme. But as our guest will tell you maybe there is some causation. I definitely think there is, the migration you have a changing base of bitcoin owners now. And if i look at something much more narrow, bob started looking, november 30th bitcoin starteding to berserk in december like the market. And the s p and bitcoin from there are almost within 1 of each other when you get really volatile markets like we had in the last days everything correlates no request he. How about saying its at the extreme point is when bitcoin really defined that. You talk about november made its run from mid november and started losing it, whatever we want to call it, in mid january. That was defining the blow off top of this market lets bring in our guest. Your next guest called the correlation between cryptos and the mark on this very show listen i think it just becomes finance 101. What you have is a riskon situation. And today we had a riskoff situation. The risk on situation is equity is higher, crypto was higher, high yield was tighter today what did we have contribute sell off, the equity reverse, and high yield. To us its really that simple. There you g lets bring in that guy chris harvey is the head of equity strategy at wells fargo security seemed like a good you will ka i assume you still believe that to be the case. We still heave there is a correlation. What does that tell us about the future trex of either . We dont look at direction we look at the risk maybe on monday all risk products sell off. What it does, sometimes it adds fuel to the fire we think of it more as what we have to watch out for, what we have to quarterize, what we have to tell clients to be careful of we dont make a call whether it is going up or down but it is a risk, its far out on the risk spectrum and as risk gets sold it adds fuel to the fire. Do you think the next move in bitcoin is doing to be leading the market this is where we are trying to go with this discussion. Today we think equities going up 10 . From here from here. We are going 10 higher. This year, next three to six months what we looked at its all about earnings of earnings season has been fantastic. Guidance has been really good. When you look at when you layer aguess live fiscal policy on top of aggressive Monetary Policy<\/a> it works. Valuations is looking better because prices come down overall we think the next three to six months are going to be a very good period that we are trying to say with regard to the cryptocurrencies is if we are right and risk starts to be bid again it wouldnt spies us to see a bid in so of the crypto markets. You have got to be surprised about the way things have gone down in the equity, ma we had the least volume till year ever last year. Literally the least volatile i fell hike we are driving alone the road, hit a piece of ice, swerving, you are saying we are going to get right back on the road and go straight last year was an anomaly. The vix was shot over and shot right offer. What did we see early this year . More risk in the marketplace last year we had money chasing performance. Im going to sell vol. It works you have weaker in hand and when vol ticks up, then you pay the pipe we saw a massive demand for liquidity. I talked the all our desks, equity cash tesk, derivative desk outside of the deriff market everybody was saying orderly, but the derisk market was saying its not orderly. What are institutions saying about bitcoin . They want to know more about whats going on, want to know about the correlation, about the risk people dont really understand what is happening in that market it has been a growing market they are not sure if at this point how much they should Pay Attention<\/a> to it. Whether it is a systematic risk. Had he you talk about risk on, risk off gold doesnt serve its purpose. Gold i know nothing about other than its shiny and malleable. You know the argument, bitcoin should be worth some percentage of gold gold in inflation, volatility, its not working. Of all the things in the marketplace, gold is the only thing i cant talk about gold is the only thing i never karen, i love your point, though, because gold hasnt moved up. Right. Apparently there is all this fear and terror in the market but no one has been buying any gold. How about the fact that the krel correlation between the idea that people have been trying to diversify their portfolios in some way or another. Right. Bitcoin, as we talked about on this dsk you dont want it to be 50 of our portfolio but maybe 3 or 5 . As that continues to grow that in turn puts bitcoin that much closer to moving with the krelg of the market itself. Right and when people ask is there a lot of speculation in the equity market we said no. However we saw a lot of speculation in the cryptocurrency market. If you want to speculate thats where you went now as it gets more regulation, more liquidity, less volatility, but its still very far out on the risk spectrum. Bitcoin we have got it on the price chart. Thats what we do here. Its above 7,000. Thats what we do here. We put the price there, because people care. We care. Money does move fast. Chris, thank you very much i appreciate that. I appreciate it as well what is your price target on gold. No price target it is a joke. Poor guy. Still ahead, does all this volatility have your head this is where melissa goes on vacation so much does this volatility have your head spinning . Dont worry because Pete Najarian<\/a>, sit up straight, has three simple tips for trading in a volatile market. He will break it down. After Hours Movement<\/a> there we go, tesla now up fractionally, the earnings webcast is about to get underway phil lebeau, what is the one thing investors need to hear from the always colorful elon musk it is all about the model 3 n. Fact, elon musk has just started talking just mentioned the model 3. Im sure there will be a lot of questions regarding not only the forecastorhe f t first and the Second Quarter<\/a>, but beyond well have more when fast money returns you might take something for your heart. Or joints. But do you take something for your brain. With an ingredient originally found in jellyfish, prevagen is the number one selling brainhealth supplement in drug stores nationwide. Prevagen. The name to remember. Wake up early, o. Slap on some cologne im 85 and i wanna go home just got a job as a lifeguard in savannah im 85 and i wanna go home dropping sick beats, they call me dj nana 85 and i wanna go dont get mad. Get e trade, kiddo. We have one to two fires a day and when you respond together and you put your lives on the line, you do have to surround yourself with experts. And for us the expert in gas and electric is pg e. We run about 2,500 2,800 fire calls a year and on almost every one of those calls pg e is responding to that call as well. And so when we show up to a fire and pg e shows up with us it makes a tremendous team during a moment of crisis. I rely on them, the firefighters in this department rely on them, and so we have to practice safety everyday. Utilizing pg es talent and expertise in that area trains our firefighters on the gas or electric aspect of a fire and when we have an emergency situation we are going to be much more skilled and prepared to mitigate that emergency for all concerned. The things we do every single day that puts ourselves in harms way, and to have a partner that is so skilled at what they do is indispensable, and i couldnt ask for a better partner. Wynn resortss steve wynn resigning. Contessa brewer. Reporter in resigning, steve wynn said in a statement basically he was dealt a bad hand he kplaints complains about the rush to judgment even though, even with his resignation the state regulators here in nevada are investigating. Regulators in massachusetts are still conducting their investigation the board is still on the hook in these investigations even though, nomura has raised its price target from 211 up from 175 and from gnaw tral to buy. They see two big options here. One is that the former president who will now step into the ceo role will run the company and perhaps change out some of the directors on the board and run the company as his boss did or the company gets sold and split off into other assets. Would be acquirers, look at Las Vegas Sands<\/a>, which has the finances to purchase a company like wynn. Mgm is a possibility caesars always wanted a presence in mcgou. Beijing may want more chinese ownership on mccow several analysts think the Company Without<\/a> steve wynn simply doesnt have the same value. If the companies are looking to acquire at least a piece of the action they may be looking to to so at a bargain. Contessa its karen let me ask you a question. You touched a little bit that the brand is tarnished coit be polished back up again they have Extraordinary Properties<\/a> do you think the tarnish will put biers off . Reporter to a trader, to an analyst, to an insider they all say there is nobody else in the gaming world that can match the kind of unparalleled services and luxury that wynn provides. But the wynn name itself will be associated to steve wynn i talked to conference meetinggoers here last week and asked them if there was any awkwardness and they said no we can separate it out. But regulators are going to have to weigh do they want a wynn brand to continue in that state . Contessa, its tim. Is there any sense there is a small feeding frenzy from competitors . In other words is this the time when other players in the industry starting to think maybe this is time to make a run for them reporter you know, i havent heard that on the record i mean, i have talked to some people at Las Vegas Sands<\/a>. And i think that the sense is, well we already own properties in those locations and why would this be attractive to us look at mohigan sun which made a huge play for the casino license in boston. Look at that property. It is in a huge metropolitan area a Big International<\/a> airport, easy to get in and out when you are looking at the value you have to think mohigan sun might make a play for that again. Contressa brewer thank you so much. Compared to other casino giants wynn resorts is looking cheap. The market cap 18 billion mgm 20 billion. Las vegas sands run by steve wynns good friend, 60 billion, what would a potential deal for wynn be worth . Guy, i worry about calling it cheap. Because what nobody knows is whether these, the scandal, the allegatio allegations, which are incredibly serious and widespread, are going to make somebody say you know what, im going to the im not going to wynn yeah. Is it going to damage their business where their earnings fall and it doesnt look cheap anymore. When the story broke, brian kelly wason the ask and that was his concern. My point was this, allegations are awful. I think we all agree but i also think, and i said that day, that wynn is at a point now that they are mature enough as a company that they can survive this frankly, do i think they are attractive tim pointed this out as well it traded at 165. We talked about it on valuing a. Its cheaper than its pierce i think they will survive this mr. Wynn is gone the allegation are there there is headline risk, absolutely but these properties are worth a great deal more in my opinion than 175 a share. I think it is a great buy i bought it at 166. Part of it was we saw options this was in the milled of january. Huge options players were come in there despite this news many of the pieces are in place. Tim knows more about the mccal world, but vshlly its in place multiple years las vegas itself, and the lagoon he talked about something on the Conference Call<\/a> many people didnt Pay Attention<\/a> to he addressed how well the lagoon is with Las Vegas Sands<\/a> companies. I think they are already setting something up because of that fact already thats going on there. This is my view, i think international mccow is unbelievable after this rally back. You have a stock thats trading effectively where it zooms up after the last round of earnings and there is still a lot of risk out there. I dont under it its absolutely cheap. 2. 5 independent could of turns cheap the lbs. Right now, just because of this news to say its all clear, i dont think you need to do it. I dont think it is a all clear. I dont think its all clear buff maybe additional downside but you also have a realistic opportunity for a a i abouter. A big even. A sale adelson, his companys worth five or six times more, you wonder if he will come in and quote rescue the company the punitive side of this is people going after a company because its at the center of the same stuff that a lot of people are very upset about. Alleged. I think i may be wrong, i dont go to vegas much but i think wynn has the only golf course downtown. The property has a lot of value. Pete i think inned wynn options lets get more on the take with mike khouw who is out in texas we did see double the daily options volume in wynn thats a name that trades a lot. We saw a lot of activity in the march 1, 5. 25 a piece. 4500 of those. Bullish bets thats its going to be above 190 or up another 8 in five weeks. To tims point, it doubled revenues from 15th to expected 19th it could change the name from wynn to encore these new, mike has a future in marketing as well as dining in chinese restaurants. Ive eaten at some wynn restaurants. They are good. Nd braingers sp. That could be used for encore. For for options action, check out the show on friday at 5 30 snim tesla shares are revving higher afterhours elon musk is speaking on the call right now plus, how should you navigate between all the crazy price swing we have seen Pete Najarian<\/a> has three tips for yi ia volatile market and breaks it down for you when fast money returns well, its earnings season once again. Yeah. Lot of Tech Companies<\/a> are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. At holiday inn express, we cant guarantee that youll be able to contain yourself at our breakfast bar. Morning, egg white omelet. Sup lady bacon fruit, there it is but we can guarantee that youll get the best price when you book with us. Holiday inn express. Be the readiest. On the only bed that adjusts on both sides to your ideal comfort, your sleep number setting. Does your bed do that . Right now, our queen c2 mattress is only 699, save 200. Ends soon. Visit sleepnumber. Com for a store near you. All right. Welcome back another day, another series of wild swings for the equity market but i guess that kind of seems to be the norm nowadays. Since the beginning of 2018, there have been already five days where the s p has moved more than 1 three of them have taken place since the beginning of this month alone. And we are not that far into february compare this to 2017 when the s p had just eight total 1 move days for the entire year. If you are looking n how do you buy in such a volatile market. Lets get over to pete at the mass ma, he is breaking it down for the segment called the more you know. The more you know i fine this fairly simplistic. If we look at the chart. When you buying in a volatile market you are looking for list of names that you dont own presently. But you would love to own those but you are waiting for the great opportunity. They have the fundamentals story but maybe they are trading at too high of a p e. Whatever the case. You have been watching and waiting. You are also waiting for a pullback that seems like its extreme or doesnt seem to be have any it thub valued that it shouldnt be going down that low. If it guess down 10 thats a great opportunity. You are looking for that opportunity. Lastly, i love when i get options coming in as well. If they start coming in to buy the pg tos im looking at stock thats down 10 pz. Fundamentals thor to is there i want to be part of that chart. Go back to november. This is target you look at this chart not all that bad its down significantly from where we started off the year at 65. Here we have heavy option activity of the it give us a great unt too of im looking at target i see the if you know story. Looks like byron at holiday inn express, we cant guarantee that youll be able to contain yourself at our breakfast bar. Morning, egg white omelet. Sup lady bacon fruit, there it is but we can guarantee that youll get the best price when you book with us. Holiday inn express. Be the readiest. This is major tom to ground control. Sweet stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders<\/a> connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Wow record time. S. At cognizant, were helping todays leading Life Sciences<\/a> companies go beyond developing prescriptions to offering subscriptions with personalized, realtime advice for lifelong, healthy living. Honey . You almost done . Nope. Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back to fast money. Tesla shares higher after its earnings report. The Conference Call<\/a> is now underway phil lebeau has been monitoring it and joins us now. One reason the stock is moving higher is elon musk made comments regarding profitability. Lets talk about the model 3 this is what so many people are focused on tesla reaffirming itsed by thence for model 3 production. 2,500 per week by the end of the first quarter. 5,000 per week by the end of the Second Quarter<\/a> one of the constraints being battery production, getting things so that they can move forward at a higher rate in the Second Quarter<\/a> elon musk talking about that they believe that they can overcome some of those constraints. With regard to profitability, here is the predixie lon musk made three or four minutes ago. I am optimistic that we will be gap profitable. Its not certain, but its im cautiously optimistic that we will actually be gap profitable with no asterisk. We should point out they were gap profitable for one quarter back in 2016 they said will it continue from here clearly that has not been the case as you look at sales last year, a little over 100,000 vehicles were sold. Those were primarily almost exclusively model s and model x. By the way they are expected to have flat sales this year. About 100,000 for those vehicles this year. When you take a look at the rest of the year when you add in the model 3 you are probably looking at sales topping 200,000. With regard to cash burn, it came in much better than expected 236 million was the cash burn rate in the Fourth Quarter<\/a> most people were expecting 900 million to 1 billion in terms of cash burn we will hop back on the call obviously more highlights tomorrow morning starting on squawk box back to you. Phil lebeau, thank you very much guys lets trade this very quickly. Tesla, anybody impressed, disappointed. Im shocked the stock is only up 1. 8 . It was that good . Maybe people are starting not the believe these proclamations that never come true but this was about as good as he could have said. First of all getting back to where they were supposed to be before the last time when they told us they werent 2500 at q 1. And 5,000 at q 2, and the gap profit is better surprised. I would be surprised if we saw positive gap earnings with no asterisk. The Biggest Surprise<\/a> for me is it didnt get hit with the rest of the market maybe thats part of it. But that cash burn, that is impressive for investors, do quarterly mbs matter more or the production numbers. Is it a car company or a Computer Company<\/a> sought wear. You are supposed to give answers not the question. They have a pass as long as they are producing cars. Interesting stuff all right. Its time now for hard to believe, already time for the final trade. Lets go around the horn Pete Najarian<\/a>. Gilead. Last night earnings the stock as down then moved up huge options today i think its guying higher. Karen. Big rotation out of fang today. I think its time for apple. Right here. Time for apple. I like that good stuff today. Letter x, starting to move again. U. S. Steel . Yes binary. Cme, with volatility, about, the Chicago Mercantile Exchange<\/a> llould do we 23 degree my mission is simple, to make you money im here to level the Playing Field<\/a> for all investors. Theres always a bull market somewhere, and 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 just trying to make you some money. My job is not just to entertain but to educate and teach talking about a crazy day like today. So call me at 1800743cnbc or tweet me jimcramer. 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