headwinds for the consumer and continued layoffs and economic uncertainty and the lack of additional stimulus from congress so can this consumer remain resilient. pete, throw anything at the consumer and it seems like he or she will continue to spend >> it does seem that way it's amazing mel by the way, it's good to see you. >> when you break it down it's about a couple of different things and stimulus is out there and by the time they get into two or just after the elections i think we'll start toy so more stimulus if we don't see it sooner than that, that will help, but anybody that's got e-commerce exposure and they have it on the positive side like target, like walmart and home depot, lowe's and so many others and they have the digital side and retail is doing very, very well. if they don't, then many of those are definitely struggling and i don't know how many of those will survive and you have to have the e-commerce arm if you want to compete in this environment. >> curbside pickup doesn't cut it for the long run, but who is spending, steve grasso, in terms of this consumer that seems so resilient because the last stimulus check and the enhanced unemployment check went out in july it's been a long time. >> just think about it people's savings rate has gone through the roof since march think of everything you're not doing. you're not renting a hotel room. you're not jumping on a plane. so there's a combination of things people are still waiting for the next round of stimulus, but they're still cash rich. think about that, though think about how unemployment has recovered quicker than we thought it would recover cash balances higher than we thought they would be. so what shocked the market the most is what pete just said. the retail, the apparel side of the market people thought it would be dead and buried forever and people invested in the digital markets and the online markets so for them, you know the way i'm playing it, capri holdings and then throw another one in there, pvh all of these companies guided much lower because they thought the second round of covid was going to be much worse the hospitalization rates are better death rates are better so we have a bunch of tailwinds where people didn't expect it to come from. >> previously, people were apt to spend on experiences and that's not possible anymore, b.k. they'll spend on sweaters like grasso has for this evening. he's got a new sweater on. so if that is the backdrop, brian kelly, then what sort of retailers do you like? >> just first of all, i -- people don't know, but i can't see grasso i just wish i can see that sweater that you're talking about. >> i look the best i've ever looked >> my mind is going crazy. >> so what's interesting about retail sales is a lot of people might say okay, this was kind of people stocking up on stuff and you might say auto sales were up and people had to buy cars because they're living in the suburbs and they don't want to take public transportation and even autos are quite good. now the question is is that as good as it gets for retail sales. that's probably true i agree with pete and grasso that, yeah, if you have e-commerce and you have curbside that will do well even if the virus gets worse because i don't think we'll have the type of full-scale lockdown shutdown that we had before i still think we're going have another wave of virus, but i just don't think the u.s. is -- has the -- has the wherewithal to go through another lockdown so you want to look at target. you want to look at walmart. those type of names especially, especially if we get stimulus after the election. >> is there a difference, though, in terms of what people spend, where they spend it from now until christmas? there are, by the way, for all you procrastinators 69 shopping days left until christmas. mark that down on your calendars, and you can't get a deadline extension on this prior, it was the home depots, the lowe's, the walmarts and the targets and the home improvement trade, but do you shift gears and go where people are buying their presents >> well, thank you for reminding people about the holiday season. i'm sure my family will be happy to hear all about that so i think it's a mix. you will continue to see spending in the williams sewn onlias and the home depots and particularly with target and walmart, there are so many goods and services that you can pick up there, but in terms of a bifurcation that people are spending money on, i'll carry that over into services versus goods and whether it's autos or whether it's sweaters or crock pots or home improvement goods, what you're seeing is people spending money on physical things, and to me that's slightly different than services because services you'll spend them and you'll have to spend that money again to reenact that experience for these durable goods i think there is a spending here because you've seen a savings rate as grasso alluded to, and these are one-off items as opposed it a full, repetitive type of expenditure. >> when you go to williams sonoma and buy a cast-iron, dutch oven there are only so many you will have in your kitchen cabinet. there's only so many of one type of thing that you'll stock up on. >> i try to limit my dutch ovens to just one at all times >> i would agree -- that's the issue is -- is this as good as it gets? did we stock up on all of that stuff? did we buy that car and are we going to hunker down yeah, savings rates are up so we know there's cash there and that's the unknown there and then the question you have to ask yourself, as much as i said you look at walmart and look at target, let's take the bear side of it and do you want to buy target at all-time highs here? with the potential that we have some kind of a slowdown on the other side of the year maybe you take 30% of your position off the table here. >> well, if you're trying to get your holiday shopping done early, looking for the perfect portfolio stocking stuffer, the chart master has two this season carter braxton worth, take it away >> well, what i thought we'd look at is the concept of strength to embrace versus strength to fade let's start with the latter. so two charts. the first is bed, bath & beyond. you see i've drawn on the low. this stock has moved from 3.5 to 25 that's impressive, but the real question is has anything changed? this is a stock that peaked at $80 in 2015 which used to say the weakness of the pandemic was just accentuating what has been an ongoing problem and this huge move, three to 25 breaking above the downtrend is overdone and it would strength to fade i would short. take a look at a second example. this is l.b. l. brands and it's the same, exact chart and this stock went from 98 to 8 that's a 95% decline same as bed bath & beyond and it's jumped from 8 to 34 strength that's overdone, strength to fade in something that has nothing to do with the pandemic, the weakness preceded the pandemic just to make that point and look at the third chart and it's a comparative chart of those two stocks they look like railroad tracks, they're virtually identical and huk moves bounces recoveries in stocks that are impaired and in longer term downtrends, take a look at the final chart and b.k., you just referenced these two stocks exactly, this is a comparative chart of target and walmart. so the concept, target and walmart, bed bath & beyond is l.b. and one is a dead-cat bounce, in my mind, the other is a perpetuating what is a strong business getting stronger. target and walmart on the long side, l.b. and bed bath & beyond on the short >> carter, how do the home depots and lowe's of the world look >> these are businesses that are good and their charts are good or they're reciprocal. momentum is growth growth is a good chart, et cetera and so forth. >> all right carter, thank you. we'll see you in o.a., options action pete nah najarian, do you agree with the chart master on these four >> agree with him on a couple of those. it's no longer about just the essentials and this is exactly what brian cornell was outlining and when they go to the rest of the store that's when we are getting into the margin jir of our business so that's true i think of walmart, as well and both have great e-commerce and the one difference where i would push back on carter a little bit, when you look at bed bath & beyond and he's only been there a year, mel and he changed everything about how their business model works it's not about discounts anymore. it's about digital and how they're going to grow in the digital side of things which they grew 89% year over year in this last quarter and i think they've changed and morphed into something different and this is a 30-year veteran. he was at nike and he understands the process. tack a look at the cash flow last quarter >> it's extraordinary that i think he's made a huge fine for the the company to simplify it and go harder. >> and selling off the non-core asset ands and keeping the bed and bath and upon droing the beyond part of the reason. wouldn't you be apt as carter said fade this bounce and even if you're a believer in the long run believe that there's another entry point? >> i'm sure you can sit back and wait for something like that, mel, but you might be waiting for a long time. i'm not really sure. quite honestly, all we've seen from the options standpoint and the derivative world, we've seen them all of the way up to the levels that we've seen right now and continue to buy higher strikes and i'll continue to roll along with them and full disclosure, i own in bed bath & beyond for that reason >> grasso? >> bed bath & beyond has a 57% short interest all things being equal, when you look at the rsi, a relative index above 70 indicates overbought and this is at 95 and yes, it should be overbought is with a short interest of 57%, a lot of people have to cover quickly in order for that run to be over. i don't think it's over yet. i'm in agreement with pete, as well i'll throw in another name on top of target. costco jefferies just raised their price target from $321 all of the way up to $435 last sale, 380 and that one we can make a couple of%able points to the down side >> bonawyn, you get the last word >> i would add yes, the shortage has been between 50% and 60% and some of the call buying is for people defining their risk and covering via options and nike is a couple of they're looking at in terms of an international exposure and what that might mean for taxes and having a growth margin business might be something you want to look at. >> coming up 737 mablt getting a european regulator and could it be about the skies at and the name pouncing higher on the call. we'll reveal the name when "fast money" returns congratulations! welcome to the aflac program. aflac! now tell me, what does aflac do? aflac pays you money directly to help with unexpected medical bills. and is aflac health insurance? no, but it can help with expenses health insurance doesn't cover! that's right. are there any questions? -coach! -yes? can i get one of those cool blue blazers? you know i can't play favorites. alright let's talk coverage. it's go time! get help with expenses health insurance doesn't cover. mmm hmm! get to know us at aflac.com welcome back to "fast money" check out shares of boeing 737 max will fly, and boeing up nearly 2% today on the news. brian kelly, is this something that tempts you? no, it does not. getting on boeing itself, i'm old enough to remember when it was only three months before this thing was going to fly again. so for me, boeing is just an absolute no touch. people are canceling orders. it's going to be a long time before you get international travel again and i don't think this plane ever flies again. the defense side, maybe there's something to it and there's old type of defense and the new defense is cyber, so i don't even want to come close to it. >> it has not just the 737 max, pete and it has the problem that air travel might not come back and it is 2024 until a return to normalcy and that's a long ways off. >> i think that would be the biggest concern, mel, because i like what we're hearing. this news is obviously, solid news for boeing and i think we saw that reaction today and the reality is exactly what you said, when will they be able to start up with airlines actually coming back. commercial airlines coming back to any kind of the levels that we've known in the past, 2019, and that seems like that's pretty far out and that's being told to us by the people directly in the industry so under those circumstances, i don't know that i'd say it's a no touch, but i think it's something where you better be trading this thing and not in there for the long haul because you can get burned pretty bad if we get any more bad news down the pipeline of anything going on with boeing so right now, i haven't touched in in quite a long time and it's been two years since i've been in boeing and i don't know when i'll be courageous enough to be there. >> are you in with the guys, bonawyn, on this one >> there's not a lot of meat on the bones. at 167, you saw it pop at 167 headline grabbing seeps like a pittance to me i wouldn't buy into it here. >> grasso? >> yeah. i'm going to buck the trend. i agree with most of what has been said, but if you look at the price action what's the old saying? it's been playing around with the same $30 in the stock since june, so if it was something that was tragic to me, where it was tragic in the past you would have seen the stock still collapsing you have a declining 200-day moving average and it will stream as a bullish signal i would be a bare of it, once it breaks out further from here and there are options guys on the desk tonight two things we're heading toward, a vaccine and the recertification. whether or not they come in the next month, two months or three months they're getting closer and i think you have time to buy boeing and the fact it's flattened out, melissa, this thing looks right to bounce back to 200. >> it has held in there since about mid-summer, pete and grasso makes good points what would you say back to him since you are one of those options guys he's referring to >> the one thing i would be interested here in, steve and everybody is the idea of using the implied volatility and we talked about the vix earlier we talk about the vix all of the time and yeah, it's in the 26, 27 range now and that doesn't mean that implied volatilities are still high in the many names including the s&p including names like boeing that gives you implied volatility and owning the stock does make some sense to me. it's something that i do all of the time already and boeing could be a candidate for something like, that but i would not be married in that position. >> it's like an '08 preview. >> analysts downgrading this stock to overweight getting real positive on the name that's a hint. that's next. later on options action you're snapping back into earnings season getting ready for the social stock to report this one snap. "fast money" is getting back after this the unprecedented performance of ultra wideband. the fastest 5g in the world. it will change your phone and how businesses do everything. i'm proud, because we didn't build it the easy way, we built it right. this is the 5g america's been waiting for. only from verizon. and sweetie can coloryou just be... gentle with the pens. okey. okey. i know. gentle..gentle new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database so you can start hiring right away. claim your seventy five dollar credit, when you post your first job at indeed.com/home. welcome back to "fast money. investors pouncing on shares of cat after a bullish call from wells fargo. raising their price target to $220 from 160 and they're expecting it to improve in the beginning of the year and it was calling a rebound, recovery basically in key markets like oil and gas as well as north american construction which make up more than 50% of revenues last year. what do you think of this call >> yeah, i like the call and this is the reopening trade and this is the bounceback trade and this is the rotation from growth into value we've touched on a handful of reasons and then some of why you should be a seller of tech and why you should be a seller of growth going into year in and i think you will have the opportunity to buy all of these in shameless plug, oln, wrk and tse and those are three of my names. oln is up 42% in ten days and wrk up 27, trinseo, and caterpillar still fits in. i continue buying them >> are you sticking with the names that have had massive runs in ten days? >> i think all three of those names are going to double and triple from here yes. i'm not -- i'm not exaggerating when i say that. i think that the value of these names are exponentially higher now, just now the trades are actually starting to work, but the fundamentals are in place. i'm sticking with all of them and i'm long just as much as i was before >> both pete and b.k. looked incredulous when grasso said he believes the stocks will double or triple. >> maybe it's still the sweater. maybe it's still the sweater. >> i wish they could see the sweater. it is something to behold. pete, what would you say to grasso >> well, you know, i'm impressed that steve thinks that some of the names can double and triple. that's really awesome. i have to look at those more closely. i have to go back to caterpillar for just a moment. when you have good cash flows and it seems like everything has done and what we were seeing as far as the economy and mel, you mentioned it and what we're going to be seeing in the u.s. with 50% of the revenue coming with a lot of the different areas where caterpillar lives right now, it makes a lot of sense to me that there is upside even though it seems like the p-e level feels rich, i think there's plenty of room to the upside i agree with the analysts and there is room to the upside. a 30 multiple seems to me that that would be awfully high and make me start to jump. right now it's trading around 22 >> b, onawyn, last word on cat. >> it is a leading indicator before we see fundamentals pull through on economic rebounds and so oil and gas and construction, i think we've seen a bottoming there. it's giving you a chance and i like this call much more than i do energy or some of the other spaces that will perform. >> it's that time, time for the final trade. let's go around the horn steve grasso >> chewy and it's had an incredible run jefferies upped their price target from 59 to 100. i actually bought it, new position and bought it today and i think it goes much higher. >> bonawyn, isin. >> not getting off the train yet. >> pete najarian, vista outdoors, there is more upside to come. >> b.k.? >> besides trying to get a sweater like grasso's i'll be looking at a couple of other things in thiss environment i have to see this thing v-neck with a fur collar >> close >> i think you look further out into the future and you bay space, spce, and then you won't have to worry about this pandemic and by the time that gets going there will be no covid. >> don't forget there is a bonus hour of fast at 6:00 meantime, "options action" is up next wow, i wish i could get a deal on a smartphone, but i'm not a new customer. well, actually now, new and existing customers can get our best smartphone deal. it's historic. that is historic. which means... i'm making history, right? yea, i don't know if i'd exactly sa- wow. me, dave brown. existing customer who got the greatest deal in history. just like every other customer gets... oh that's cool too. it's not complicated. at&t is making history. everyone gets our best smartphone deals, including the lates pre-orders. ♪ welcome to friday and "options action. here's what's coming up on thing about show tonight. >> you've got to know when to fold them. that was from kenny rogers' "the gambler," but carter worth explains why it can also work for the stock of procter & gamble then lil' john also once had a song entitled ♪ snap your fingers ♪, and that's what tony zhang i singing about today. and our last song pun of the evening, you down with tlt or

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