We will name names and later a prediction so wild and bold that honestly we question if we would even talk about it and bring it to you we debated it. But we are bringing it to you and you will hear it coming up true story all that ahead in the next 60 minutes. But nike bouncing back a bit after the steep post earnings drop lets get the numbers, talk about china with seema modi. Talking about her hometown heroes, nike, seema. Thats right, brian sthars of nike turning around after slipping as much as 2 in extended trading a solid beat on the bottom line. But the company said margins were negatively impacted by higher input costs primarily due to incremental tariffs in north america. Sfratly nike reported Greater China sales of 1. 85 billion up 23 this quarter but a slower pace of quarter than last quarter when sales grew 27 . Still, nike has been able to steadily grow revenue in the country over the past five years. Targeting the Chinese Consumer using platforms like alibaba to sell shoes and apparel and in the Earnings Release outgoing Ceo Mark Parker really emphasized growth in digital those comments come as nike severed ties with amazon back in november which was seen by wall street as a sign that nike is doubling down on the ekmerps initiatives and direct to consumer model the stock has been trading in record high territory all this we can its worth noting its underperforming a rival adidas which is up 65 . The Earnings Call has begun. Portland finest seema modi. Thank you very much. What a run on neek ee this year any reason to own it or buy it here. I would wait for a pull back. Part of that is i think its stretched looking at the valuation and the growth right now. You compare to some of the others in the at Leisure World its 30 in terms of the pe right now. This is something where youd rather wait. Id like a pullback. We might not get it but id expect to see other if its working i think there are other names working better if you look at the Growth Prospect of lui lulu lemon and i think lulu is better buy nike i feel is too expense i have. Im onboard with will you lieu nike nothing wrong with florida. Did you call pete a lulu. I did call him a lulu onboard with lulu. Not the first time its said. Nike doing quite well however have margin issues some to do with tariffs tariff but otto priced with nike now they have the Digital Transformation going well process but it has to continue to go well and almost as if everybody priced in the good news for the name when it comes to nike you wait for the pullback it doesnt mean one day. This could take a couple weeks to get the froth out then back in. The thing is the froth in the stock doesnt seem to abate. If you think about the strength china was maybe a mild disappointment. I think the street was looking for 24 . But strength across all geographers. And oom not sure we know where it could go. You look a at a brand with total control of the destiny im not saying theyre going without traditional distribution because Everybody Needs that but nike is such a powerful global brand you are talking about at leisure. Im not sure we know the multiple the historical multiple i dont think applies. You are throwsing at dtc be direct to consumer its important but this stock has been a double in the last two years. But revenues have not doubled. Right. Is anything there out of whack. High single digit eps growth which is what these guys deliver comfortable with u. S. Comps. Look like they are back in control of north america that gives me reason to stay the course long the stock. Yeah, its a midteens eps grower and a high single digit revenue groier when you think about 23 growth in a region like china given all the headwinds weve had the last few months with china and there is National Issues think about this arsenals game was not played in china the other day because of something a player said. This company is right in the cross hairs of this behavior we saw what happened with the nba. When you think about it, i mean to do 23 in china its great and only gravy from here on out. Another point pb seema mentioned the amazon deal, the notion that they are doing well enough in their own d did tc consumer direct to consumer they made the acquisition of Russell Wilson startup trace me a couple months ago, a Technology Platform that connects influencers, athletes i think they are doing a lot well. So tour point, this stock broke out in late september after that last Earnings Announcement and at 90 bucks and went straight to a hundred. 90 is the target id like for on the pullback. When john donna hoe takes over in january, thats a whole different thing. Because now we are talking about a new ceo who has full his arms totally around that world dtc, the whole thing that i think is something positive but when does it kick in. Takes a couple of quarter skbls im looking at Balance Sheet and income statement ebidta increase friday 5. 4 to 5. 7 billion on annual basis. Revenues gone up by 5 billion. Growing to dans point midSingle Digits. Yeah agreeing with you because were waiting for the pullback we think what you imply is maybe its expensive, right were looking for the pullback. Well you think the growing. There are other places grow growing faster im just saying hold on or the growth is going to one of the two things has to happen. I think you have to question whether or not the going to skrermt given the environment were in i think they are doing a lot of good things. But is growth going to accelerate is there something incrementally they can do that not priced in today. At leisure again. Go to sneakers innovation its a word you apply to technology but it applies here nike is the innovator. You look at at leisure you see what lulu lemon does athletica is could go. These are places where nike is competing and arguably in a pole position because they are closely assigned innovation, higher margin is the reason you pay more for the stock brian. Nike were watching that. Obviously more tonight of course tomorrow morning and well talk about lulu lemon later on in the show. Huh. Of course you know folks, we are in the home stretch for who will dau shopping. December 19th por feets sakes but not maybe a merry christmas. We breakdown the naughty list. But iac is breaking up with match. But no tears here. That got us thinking what other companies my benefit investors if they were broken up with, became single in the Parent Company we are naming some names as always live from times square, back tethis do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Step up, please. Empty your pockets. Looks like youre all set for that business trip. Youve got your smartphone, laptop, your other smartphone. Woman is this all the devices you have . Your tablet. Seriously . Smartwatch, your backup tablet, and. Woman anything else in your bag . Whatever that is. beeping this isnt working. Introducing Samsung Mobile workspace solutions. With the galaxy note10 with dex software, you can run your entire business on the one device that does it all. Samsung business solutions. On the one device that does it all. When it comes to using data, which is why Xfinity Mobile is a different kind of Wireless Network that lets you design your own data. Choose unlimited, shared data, or mix lines of each and switch any line, anytime. Giving you more choice and control compared to other top wireless carriers. Save up to 400 a year when you switch. Plus, unwrap 250 off a new samsung phone. Click, call or visit a store today. Neil sadaka. Breaking up hard to do. Breaking up can be hard to do sometimes its for the best. Because thats what happened between match group and iac interactive both going separate ways at iac spins off the dating website. But when this did it match shares soared process because we are tv types that got us thinking what other companies could benefit from a big time breakup in splitsville tim seymour kick it off with the name. We talk about google and the argue whether the regulatory stuff could the company be split up i think when people look at the parts in google there is a core business youtube is something that i think is extremely intrinsically valued and part of the problem for investors is they dont really breakout youtube testify new its tough to know based upon what we know they did last year somewhere around 14 billion in net reef revenue if you look to it multiple they could be implying this is a 150 billion company on a stand alone if you want to put the 1500 target on google which some other people may not want to do. Its about 10 higher. Injury its interesting. May not happen in the short to medium team term because youtube is valuable to goog and fits in with what they are doing. Bus but since we are playing it makes sense. When think about the parent that has a trillion dollar market cap or so, that value for youtube is very much a big part of that. So im not sure spinning out one of the billionplus User Properties does the parent a lot of good. Ill make one other point, when you think about google they dont have a social property amongst all the different properties. That is it. This is about it. And they need to keep this thing. Its an important point and meshes together a lot of the other services the social aspect is very important. All the names, facebook, google its all about network effect. Where can they sell ads, get revenue and what levers they can pull talk about it all the time they have a lot of levers to pull if you break out Something Like yub, youtube itself my do well terrible for goog. Because they wouldnt have the levers and the did see the highest paid youtuber, came out 26 million a year 8yearold kid reviewing toys. 26 million bucks. Ive done something wrong. You didnt review toys. What have we done right is a better question. Breaking up hard to do. Dan nathan do you have a name might benefit from breakup. This is a faber report. Going to be great. Yeah great. Elliott took a stake in at t earlier in the year and pushing for divestiture of direct tv this is one this Company Brought direct tv about 20 million subs at the time. About four years ago paid 50 million for it. When i think about this at t has been very inquisitive have the vertical strategy they are trying to employ they have a ton of debt and 190 billion in debt and they have to pay that down and that direct tv base is shrinking and may not be as valuable id be with elliott and this should go. I like what you are doing there. Because i think elliott is forcing for change they are forcing change in the c sweet might avoid the next bad purchase like direct tv. Whats it worth here you are selling this asset near the bottom that to me im not sure it the right time to do it even though it makes sense. But its an anchor. I think thats the point. What didnt make sense was the god father music. Or was that young frankenants. I would saythis is the exac opposite situation that google and youtube have where youtube is very valuable dish to me is an anchor on whats going on at at t and you need to cut it loose okay. Now give us your pick. Now its my turn. My turn time to shine fast money its kraft heinz this is a merger that would just was horrible from the get go. I got it. You want these two to split apart. You have Warren Buffett in there already told you this has been a bad deal the problem the companies have is theyre just this massive conglomeration of brands that nobody wants they have some good brands but cant pivot, shift, cant address the activates of america today. And if they made a acquisition and shift add bit they are so big its not moving the needle for me i split them apart. Kraft one way, heinz the other Warren Buffett in themyle saying. Is that what youre saying they never managedny efficiencies. Pushingback. Has there been a food deal that we point tout out to that says thats worked great. Rjr nabistico. Its i was around for that. Kraft heinz would be the name anybody there believe that kraft heinz could, would. As these guys talked about that was about financial engineering. Squeezing as much as you could out of assets that frankly the Food Companies traded at a premium. The problem again splitting up at a time when Food Companies saw a peak multiple 18 months ago. I dont know how you get the value back. Okay. Pete your pick. I give you something just totally off the wall that makes a lot of sense however which is delta with the credit card company. Go back and look at target when they spun off theirs 2012, got 6 billion from td for that entity when you look at American Express right now, the global billing is 8 of those comes from the delta American Express card so that is something not being priced in at all i dont think right now. And by the way, when you spin it off, you hold on to 51 put out 49 still have a piece of that and thats a business they say is a six, 7, 8 billiondollar business by 2023 and still a piece of it. I think you have learned that lesson from your hometown favorite target. When they. Darn tooth sfwloon when they spun out the credit card they spun out the business. I would like delta to model after target. A lot of people are looking at what target does many other things they mirror that this is one more. Good stuff there. Interesting names and interesting thing there. We have the god father music as well. Young frankenstein. And much more fast money ahead. Here is whats coming up. Announcer what a difference four months makes. Back in august bond markets were flashing Warning Signals but what are they saying about whats to come in the new year plus star wars fans gearing up for the final installment. But will the box office be a boon or bust we have more when fast money returns. You and i both know we need term limits, that congress shouldnt be a lifetime appointment. But members of congress, and the corporations whove bought our democracy hate term limits. Too bad. Im tom steyer and i approve this message because the only way we get universal healthcare, address Climate Change and make our economy more fair is to change business as usual in washington. vo than just the business theryou came for. More whether thats getting a taste of where you are, or bringing some of that flavor back home. Thats room for possibility. Lets get to living all right welcome back to fast money. You knew that stocks hitting highs again today. But there is Something Big happening in the bond world thats a total 180 from what happened just a short time ago so let us fire up the oltd fast money time machine for a trip back all the way to late summer when this was playing out on our air. A brutal day on wall street stocks plunges as the yield curve inverted since the occupy. The dow dropping more than 800 points yeah, remember that, late summer panic of the yield curve inversion. Imminent recession imminent doom today the spread between the two and 10year treasury hitting the highest level of the year. Dan nathan is the bond market sending the all clear. Of course not when was the last time we had a yield curve inversion. 2006, the stop market didnt top out for 12 to 18 months which is what everybody was saying last summer chill out the market is not crashing here. But we have a year, 18 months. Thats the average i the dont find that particularly useful one way or another. I dont think anybody was saying on august 6th, 2019 the market is crashing here because of the 2 10 spread inverted it sounded like melissa said that we were down 800 points. Was i the only one that heard that. The commentary shows the yield curve gets a lot steeper right before a recession whats interesting, if you watch that yield curve along with jobless claims, jobless claims tick up, yield curve gets steeper then you have the recession. But thats 12 months from now. Were looking q42020 at the earliyiest. Is the yield curve steepening from the short end or long end what do you want to see . I would make the argument that the fed cutting rates and sending out the vibe you saw a bull steepening from the short end. The rix bank in sweden said no mas to negative Interest Rates we heard with the boj. Were hearing with this the fed who started this globally. Zero Interest Rates are not working. And we hear Central Banks making this plea ner trying something ultimately that pushes yields higher. I want to make one point. Your point is when the fed cut Interest Rates july 31st 25 basis points they fixed the inverted yield curve and did it two more times who the heck knows what was going to happen there on out the market was getting killed that day because of the new tariffs. That combination was a weird situation. The point was 12 to 18 months when you get the recession on average in the post world war blah blah whatever who knows what the market does between inversion and inception. Well wrap it up. Number one a good lesson to viewers and listeners that one indicator dos not a market make. The swedish rix bank said no more in swedish. Lets bring in tom lee coed founder and head of research at fund saturate global advisers. Released more 2020 outlook, this morning bullish, tom. Yeah, i think 2020 will be a continuation of the market we saw this year. But its a lot more about the fact that earnings could beat invitely on the upside we have a pmi recovery an inventory build easing financial conditions plus potential for fiscal stimulus. All this means earnings could grow more than 10 . The majority of the guests on outlooks and predictions optimistic but not wildly so 7, 8, 9 gains high Single Digits for the s p 500 where do you stand. I think the minimum is plus ten. Minimum thats just in