i'll talk to you on twitter and on google plus. stay with cnbc. fast money begins right now. >> fast is following. the s&p 500 getting up close to another all time high but selling off before the close. should you bet with the bulls or brace for a triple? >> credit crunch from shipping to coal. we have got a hedge fund veteran who is focusing on credit. and the unfriendly skies. what do the faa cuts really mean for the airlines and you? we break down the sequester effect. we're tackle iing.

>> good to see you. the revenue numbers look pretty good. down a little bit lower than analyst expectations. the guidance about where analysts expect it. overall, you take a look at one of the key metrics that wall street looks at. that's good compared to a year ago. amazon is growing gang busters. bhu employees, just look at that line. considering the profitability. they have managed to maintain employee head count up 39%. and that's fte's run.

>> they really are growing. >> so technically i think the stock still has to prove it to get through that. >> why doesn't it matter? why does amazon seem to be immune from irrational evaluation. people go and shop at amazon. they have a global hold on it. you sit here and you press click on your computer and you have it the next day in the mail. als

also. >> you know, at some point valuation is going to matter. >> you have said that -- and i don't mean you. >> the less stuff that they sell at no profit, the better their profits are. okay? so the more they diversify the third party sales the better earnings are for this company. i am losing money on everything that i sell. >> it's great to have you on board. >> i thought it was still

melissa. >> can you imagine? about a foot and a half staller than her, by the way. >> this is a stock that has been rained down for the last few months here. these are two of the biggest nasdaq stocks. >> you mentioned the international nature.

>> hef knew a bit light. company warning third quarter earnings would be below what the street was looking for. lower and the after hours down about two and a half percent right now. >> here is a stock that is trading well beyond its peers. this is truly the next global brand. these guys are finding a place where they are part of the culture even in places like china. >> put this in your coffee.

13th consecutive quarter above 5%. they were not nearly as good as what the street was expecting. operating margins again. much better. >> they have done a great job turning people into coffee drinkers. kate kelly all over this story. kate, who is it? >> george. j.c. penney got unexpectedly good news. that places him just a couple of notches below square hedge fund manager who has been the stock's biggest champion and also victim of late. it's been a rough 2013 for jcp whose shares have plunged.

a month later, onjohnson was ousted. or whether akman has been a doubles tennis partner and counted him as a personal investor played a role to take the stake. but it's certainly giving much needed levity to the stock. >> wow. so it could give an outsider reaction. and i know you don't wear hats but let's put our conspiracy hat on. >> that's my favorite hat. abo

about. >> is there anything to that? maybe akman gave him an elevator pep talk? >> that's what makes it. >> if you don't believe they had to come in. bill says george, can you come in. >> i think that stands to reason. i think that j.c. penney and its backers absolutely on a pro j.c. penney road show right now trying to line up financing. afterall this f they're right and they're at the bottom, this is a cheap entry point. >> it is like why are you buying j.c. penney and he lays out the case.

he dropped down 15%. >> has a $9 price target now on j.c. penney. >> that's fair. that's fair. >> the s&p 500 merely points away from its record intraday high. >> i don't think any of them are necessarily justified. i also think that it flushed a lot of folks out. i think today's action lends

itself to belie t and i think gold will continue to go higher from here. >> one of my partners pointed out. if you look at esi and cliffs, all of these stocks have between 20 and 30%. >> all right. let's move on now to tim. >> with steve say iing we bougha group of mexico and met with a cement company. i met with the biggest cement

company. these guys tell me they're seeing demand and they have a mark for their products and that's what a lot of the guys are telling me as well. >> no. no. >> back on our very special valentine's show. >> these guys have about 20% revenue exposure to sam sung and apple here. so this could be one thing weighing on the stocks. the stock got nailed today. i bought the stock today. i think you're going to see a company here that is growing at 10% earnings and sales for the next few years that has got 30% or 28% of their market cap in cash. basically 2.25% dividend yield. >> there you go. the fantastic 2:00 p.m. eastern time show. street signed coined it the

energizer bunny rally. what risk factors could derail the rally. and should you look for clues in the credit market? you want to be a smarter investor? how one manager is reaping the rewards. and later on how the airlines are faring when it comes to the faa cuts. that guy, ceo of jet blue joins us. what the cuts mean for him and you. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody.

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>> welcome back to the men's wear house edition of fast money. bookings exceeded street estimates as well. >> i think it's actually a tad lower now but that's neither here nor there. it's not rich on valuation. i think they are taking this as an opportunity to sell the stock. >> coin star, now known as outer

wall -- they changed their name. true story. >> like you said. >> here is the stock going through the 50 day moving average. what can we take away from this? >> they are getting it is good news.

these guys are broken out to new high highs. >> and lack of revenue growth. here is the disconnect here. is that top line sales? you have got bottom line. how does this market keep going up? it's four and a half to one. four and a half companies issuing negative guidance.

>> the reason we're going up is we can dream. we're dreaming the second half is bet skpr liquidity is going to be better. the kind of stocks that are working on a totally consistent with that. >> you have been generally pretty bearish. what has surprised you. >> we finally said look, the fed and the qe are dominating.

it's health care and stable utilities. so the themes have done well. i think it's really coming down to what could cause a big market correction? either earnings collapsing, which i don't see happening. they're not great but they're not going to collapse. or something about qe. >> yeah. >> and so what are you going to learn in the next couple of months that will change your mind? you're not going to learn anything any time soon. >> i'm not much of a dreamer. >> no? >> nice job by you. >> if i told you a year ago that the market is going to be up,

you would have underperformed big time. >> you have seen it here a couple times. i think it matters. we are focused on health care stocks. i know from our network, we want -- people want bond-like equities and income and why would they change their mind.

>> any time. >> time now for pops and drops. some of the big movers of the day. >> a marketplace where there is a buyer for the market share and international business. again, as adam talked about, this is a 4% dividend yield. this is a global trading player. >> fears of a terrible quarter unfounded? that's a pop. >> it's killing the shorts. it's a 12% shortage. i think it was 17% move in this stock on four or five times normal volume. i don't think this quarter dictates the stock to be up that much. i would say take profits.

>> over the last year, they idled plants they pop so aggressively. >> a drop by 5%. >> we just talked about this one. here is one that come back to a technical level. it's a good valuation level. >> just having a cup of coffee. so far, 54 bidders have jacked up the price to $190,000 for the 30 to 60 minute espresso

encounter. the aux is open for another 19 days. i don't know what you're expecting to get out of tim cook. it's not like he's going to tell you something over the cup of coffee. >> think that's what it is? >> how one is managing to make moneys with battered stocks. and shares of jet blue. the ceo of jet blue is here in yet another fact exclusive.

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>> their stocks get beaten down and sometimes there is still time to make money in the names. hedge funds that invested in distressed situations return 10% in 2012. returned just 17%. >> keech us about the -- >> often they are a harbinger of what is happening in the equities. it

it's. >> it's burning cash. >> we're shorting the bonds. they're trading at .

>> they are artificially high. it makes it very attractive to us to expressive through the bonds. >> real quick in terms of walter. then we talk about it. this was a take over target or speculation about a take overfor $100 or so a share a few years ago. what happens if somebody comes in. what happens to that bond position. >> however, if it's leveraged acquirer, then it's -- the bond might trade down. so it's difficult to say. depends on the balance sheet of the acquirer. but we think risk reward it's a much safer bet.

a lot has changed in the world since walter energy was a potential take overtarget. it's our view that the super cycle is fading. over the last five years from 2008 through 2012, china amerges as the largest importer of sea borner th thermal cole in the w. >> you're negative across the board? you're negative across the board? we still have an epa battle. they have made it impossible for new plants to come online as well as old plants to meet up to regulation. you're negative on coal across

the board. even at the levels where they're at? there is sea born thermal coal. we think some of the . we think it is a real survivor. >> we're going to leave it there. it's a hybrid company that has met coal in australia and in the u.s.

>> we think that the commodity super cycle is fading. we think that the market for certain types of shipping vessels is turning now. for example, chemical tankers and product tankers, we think those. >> we have got breaking news on yahoo! >> thank you very much. the chairman of yahoo! has just resigned. so again this is a company that has faced a lot of executive turnover. we know the new ceo has fasted

her supporters and critics. she has held tough and held firm. we don't know why fred amoroso is resigning. it's a company that has had a lot of executive changes over the last ten years. really over the last five. >> here is a guy that is not running the company and is expected to be someone in the first place. >> to me, at least this is not major news. >> he's not her guy. >> nuts and bolts on the long haul. and how the faa cuts are really going to affect him and you. but first, squaring off over the company behind scotch tape.

whose case will stick out? stick out. >> tough to keep a straight face. >> we're going to post that up. next.

>> yet another change on the board. the board will stand at ten members once this is complete. >> the fact that kindle is selling there.

>> guys, back to you. >> just on a pure technicallel. the stocks have been trading between 260 ask 280 all year. >> the stock is closing lower after -- that news sparking a street fight. you both have a total of 90 seconds to state your cases. >> not going to need 90 seconds. sales were up 2% year-over-year.

>> you know what? he will be here all week. >> this is a huge company. operating income. that's terrible. and at 14 times forward earnings, that makes this company rich by those metrics. this is a company with obvious exposure. we know what's going on. >> we have already seen that. we know. tell me something i don't know. the chart is on fire. this is the place you want to

be. we're going to find out. that's a horrible tie, steve. >> i'm where you mentioned this earlier in the show but a lot of the multinationals doing 65% of the business outside of the united states. >> it's so high liquor lated with the s&p. >> look at that. >> these are the yield trades there. the momentum could be breaking. a lot of the reasons that tim

just said. >> there you go. >> tell us who you think won our street fight. tweet us using either hash tag bull or hash tag bear and we will have the results. facebook due to report earnings next wednesday. down 30% since ipo last may. one options trader thinks that stock is due for a reversal. what was the trade, scott? lots of people think that facebook might head higher. they brought just over 4200. they bought the $28 call and got their long exposure that way. they sold to reduce the cost of the whole trade. that also caps their upside and that's fine.

that's a really important level. it has been like a brick wall for the stock since they announced in january. this trader is bullish. >> scott, thank you very much. >> up next on fast money, dave, ceo of jet blue goes on the record about his company's corridor ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars.

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transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox

for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. . >> welcome back to fast money live at the nasdaq market site. melissa lee will be back tomorrow. >> sure. >> jet blue reporting first quarter earnings today. joining us now, first off before the numbers. the sequester is scaring the pants off of everybody.

people are talking about how it's not on jet blue but delta. >> this is needles. there is no reason for that. we see the senators, faa administrator, i'm hopeful that we will see cloe sure to this before there is a recess that takes place. >> if we go on recess. i agree with that. >> this is crazy. >> it is part nobody wants to make the investment in infrastructure so we can get up to the 20th century.

they are the people being forced to really take pay cuts. >> they had nothing to do with this. and next gen, talking about this is high end lubricating the economy. invest in next general. airplanes? that's what drives the economy. >> you're totally right. >> while you're worried about that, what are you worried about on the back end? >> i'll tell you. there has been so much bankruptcy and consolidation. 14 new airplanes on a base of 180. so when we talk about what's happening with fuel, some level of hedging but it's really to flatten the volatility. we're going to grow boston and latin america. i look at the first quarter as a lot of hurricane sandy and some

pretty specific maintenance costs. >> the maintenance is something that pushed the quarter up. is this something that you see that is structural? is this something that you guys are worried about? >> in. we are very pleased. we have 54 going into the year. at the end of the day, we see the pains before anybody else. let's get 12 motors into the shops in the first quarter. it's going the flattenover the course of the year. >> that's great. it's a world class company. >> we wouldn't have the position

in boston without that airplane today. doing the same thing down the caribbean as well. >> real quick the important ones, passenger revenue, operating revenue. you're all doing better. i think that's what is important in the business. looking much more like an industry. where investors will want to invest long term. what's happening with oil. and if the government would let us run our airlines, i think this is a really good time to be in airlines. >> got to let you go. say nothing until the bathrooms get a little better.

>> anybody trading jet blue? >> i have loved it for a while. it's had a great run now. and the has been on fire. and people are taking profits. >> 660 is the key level. >> thank you. thank you. coming up in the next hour, jim cramer down in philadelphia. we will assume he drove. he is on the campus of villanova for the back-to-school tour. don't move. mad money starting at the top of the hour. stick with us. ♪

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>> welcome back to fast money. i'm josh lipton. we are watching pfizer right now lower in the afterhours. here is the headline. an advisory committee

recommending against green lining its new rheumatoid arthritis drug. down about 2.5%. >> trade if we can. that could be a blow for them. >> we have seen amgen and pfizer. this trade is very crowded here. >> they go flat when the market rallies and sells off. they take off. >> it's a key level. i have to say i agree with dan on this one. >> i can't remember who makes

it. >> all right. on a serious note this is the most popular iphone in america. it is not just men driving up sales. women are being driven into it as well. it is a trend that cnbc's new documentary is following. >> we have them for sporting. we have them for hunting and we have them for just in case. >> i think there is a small bit of status for a gal that says she owns an ar 15. especially right now. >> when a girl can say oh i got my new baby today or i got my new rifle and the girls ooh and

aah over it. >> the documentary, the rise of the ar-15 premiers tonight. we interview a victim, a survivor of the aurora, colorado shooting. we interview people who are far right second amendment voeks. let me give you a few stats. 800,000 ar-15s sold in america last year. there are about 4 million of them out there. we talk about the culture and the business of this. if you backed out guns and ammo, sales were up only 9%. your first move tomorrow when we return.

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