tv Fast Money CNBC March 7, 2014 5:00pm-5:31pm EST
5:00 pm
which ended badly for him. >> thank you very much, it's an important story. we're going to watch that one. "fast money" is following this show. arabica prices are up 80% so far this season. we have ceo of dunkin brands. >> ask him if the price of my dunkin is going up. >> i sure will. "fast money" starts right now. live from the nasdaq marketsite in new york city, i'm melissa. we have a third after the mix. we start out with our top story. this time last week, traders
5:01 pm
were skittish about the russia. so, what do we make of the market action here? what is actually going on? this weak performance? >> if you look at the week's performance. the intraday reversible makes it tougher. when you look into this little bit more deeply, you start to see what's going on with the ukraine. ukraine, excuse me. sorry about that. i put the. we do call it the united states of america. but in any case, when you start to see that it starts to egg escalate. with the u.s. sanctions that becomes a bit of an issue. when you look at the financials, the way they traded over the past few weeks, you look at the regional banks and how well they're trading, when the financials are trading well and
5:02 pm
they're finally participating that sends the markets up. >> we're going into those stress test. a better event coming out of it. they're going to disperse more cash. people have bulled up on financials. it's a sigh of relief they're buying the -- they thought that the ukraine was going to be a bigger issue and russia. i think you should take something off the table here. >> you got basically, the russians flying planes. you got the turks scattering their jets. the u.s. is suddenly doing their own war games. we actually have a naval bomber in the sea. this is place where, i don't think we're in a different place we were last weekend. >> take a look at germany. take a look at the russian markets, they're reacting here.
5:03 pm
>> we were talking about how you hedge the risk in the region. what happened in germany, closed on the lows. if you look at the vdex, the euro 50 stocks, two totally different places. going into a long weekend, going into a place where you have had this great reversible, had solid numbers, closing on the highs in the united states. why not take chips off the market. why not anticipate more geo politicals. it won't be the exact same, you know, payout, but it could be a very similar script that we're following. >> it sure could. the jobs number wasn't something that i wanted to trade on. it meant nothing to me. the weather effect affected it dramatically.
5:04 pm
so, to see us pull back from 09-point rally to basically unchanged. big deal. we saw state street, bank of america, we saw key bank, all of these stocks were up 2% across the board. i like the way they're acting. you're smart to do some hedging. what i did, i bought the vix 15 call. i sold the 18 calls just because that three-point spread can blow up and make me a lot of money. >> reluctant to get out but cautious. >> yeah, i bought protection. i didn't want to get out because it cost me a lot to get in. >> all right, let's switch gears here, coffee prices adding to their run-up. 70% jump in 2014 having an
5:05 pm
impact on big coffee chains? joining me now is the dunkin ceo, nigel, good to have you with us. you have already locked in the coffee cost for 2014, should consumers be concerned about a price of a cup is going to go up? >> i don't think so. we have had coffee prices go higher very early in my tenure with dunkin. the coffee commodity tends to go up and down. we want to maintain that position. coffee, the actual coffee in a cup of coffee is a relatively small part of the whole and as a result of that, we don't expect that the cost will go up too much and our franchisees are very disciplined about managing
5:06 pm
their prices. >> some relief in terms of how much they're going to have to shell out in the morning. nigel, can you talk about the impact from the weather. >> everyone talks about the weather, but the way we look at it, we give guidance for the year, we're staying with our guidance. obviously, we look at our numbers every day, i'm absolutely fanatical about that. obviously, the days when people can't go out we don't have good numbers. but we're seeing good numbers when people can go out. going back to last year, we had terrible winter storms in march, i remain optimistic, i think we'll look back at the end of the year, do you remember those winter storms? >> we have at of those chains out there to diversify what they
5:07 pm
serve. you're now serving sandwiches, are you looking into the possibility of acquiring another brand? we got chipotle going into pizza, buffalo wild wings going into pizza, are you interested in. >> i am. i looked at 0 other companies in the last few years, the fact that we have done nothing probably means that we're cautious and that's quite right that we're cautious. at sam stage we may take on another brand. it's going to build on our core strengths. focus in on franchise exhibition and it will be a business that we really understand which is food and franchise zblg nigel, great to have you with us. >> thank you. all right, so a lot of analysts like the stock. >> at 38 times, look the franchise is very healthy, they have taken some interest
5:08 pm
expense, 3% to 4% comps. how do you do a whole lot better than that? this is a classic trade. i would be long starbucks, short dunkin. they both have the same issues. i like starbucks >> i disagree. the reason why, i like their growth strategy, they're going to open up about 400. the innovation is there. these guys continue to figure out how to get themselves -- oh, a doughnut, oh, thank you. >> a shamrock, st. patrick's day theme. >> the earnings are all strong. yes, there are a little bit pric pricey. the growth right now is in dunkin. news breaking that boeing will be giving careful inspection to undelivered dreamliners as the chinese film business
5:09 pm
takes off, disney is looking to get a piece of it. that's next. we miss out on the things that matter today. ♪ at axa, we offer advice and help you break down your insurance goals into small, manageable steps. because when you plan for tomorrow, it helps you live for today. can we help you take a small step? for advice, retirement, and life insurance, connect with axa. for advice, retirement, and life insurance, honestly? i wanted a smartphone that shoots great video. so i got the new nokia lumia icon. it's got 1080p video, three times zoom, and a twenty-megapixel sensor. it's got the brightest display, so i can see what i'm shooting -- even outdoors, and 4 mics that capture incredible sound. plus, it has apps like vine -- and free cloud storage. my new lumia icon is so great, even our wipeouts look amazing. ♪ honestly, i want to see you be brave ♪ ♪
5:10 pm
5:11 pm
5:12 pm
hey, phil. >> boeing shares are under pressure following word that the company is now doing inspections of some 787 dreamliner wings, they're looking for hairline cracks. it's inspecting 42 787 dreamliners that are in the production process. it was alerted to this problem by miss bishi heavy industry. it alerted boeing last month, that as it has changed its manufacturing process there are some hairline cracks that may have developed with some of these wings. so, boeing is going through the process of inspecting all of the wings in question on these 42 planes. it takes one to two weeks to fix it. where a hairline crack is found. boeing says of the wings that are in question, and it has had to replace or fix some of these
5:13 pm
wings, it hasn't had to do a wholesale replacement of the wings. the company said it's not changing its full-year delivery schedule for the dreamliner. overall for the year, the company says it will continue to meet its guidance in terms of how many dreamliners it expects to deliver this year. melissa. >> phil, thanks for the latest there. boeing, when the problems first came out that was a buying opportunity. >> holding 130 hasn't done a lot in the last couple of days. at this valuation it's not a scream. >> 188.77. that's from february. every other issue that this stock has had it's shrugged off.
5:14 pm
>> much lower levels. >> true. all right, let's get to today's top trades. disney back in the news again after striking a deal with the shanghai media group, to co-develop disney-branded movies released in china and other international markets. is this a reason for the stock to go higher? >> yes. >> it is? >> when you look at the chinese markets, chinese entertainment, 2015, $148 billion industry, disney's going in and attacking that. the stock's going higher. market flash here checking in with dom chu, some news involving facebook. carl icahn announces stuff on twitter. but now, he's going to turn to facebook to start disclosing
5:15 pm
some of that information as well, in addition to his website. so, in essence, the bottom line, guys, carl icahn wants you to follow him on twitter, like him on facebook and logon to his website. >> are you guys connected on li linkedin? >> no. >> are you going to write on his wall? are you going to poke him? all right, dom chu, thank you, what do you make all of these disclosures? >> nobody has used the media, social media better than carl. the media, us included. carl wants to break news, he comes on here and he tells what he's already done, and then the stock reacts to it. it's the same with social media.
5:16 pm
>> tim, you had this look like when mentioned media. he takes advantage of the media. >> i tell you what, i think carl's strategy with apple, people have been frustrated with, and essentially, he's broken out social media. i don't think this is -- it's an early days. i think people are more vulnerable about how they're getting information on twitter. that's the bigger issue here, that's how people are getting their information. coming up next -- our final day of our trader week. we're asking a third najarian to the mix. trysten najarian joins us live after this break. for tapping into a wealth of experience. ♪ for access to one of the top wealth management
5:17 pm
firms in the country. ♪ for a team of financial professionals who provide customized solutions. for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more. easy-to-use platform. no, thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you. just set your start and end price. and let it do its thing. wow, more fan mail. my uncle wanted to say thanks for idea hub. he loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. [ male announcer ] open an account and get a $150 amazon.com gift card. call 1-888-330-3136 now. optionsxpress by charles schwab.
5:18 pm
call 1-888-330-3136 now. so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close! new at&t mobile share value plans our best value plans ever for business.
5:19 pm
5:20 pm
mostly since november when we saw unusual activity. yesterday, it ran to 29. we talked about the july 40 calls which was enormous, it was more than three months' worth of volume than in the previous months. it popped very nicely today. we took it off today, melissa. >> time for the big movers of the day. >> fireeye >> it was holding above that for a decent portion of the day, then it broke down to 81. >> all right, foot locker up. >> same-store sales were fantastic. this company is selling nike and adidas, they have been doing very well. foot locker is going higher. >> drop for natural resources, down 12%, tim. >> tough space in commodities. >> down 2% verifone.
5:21 pm
>> i bought it actually today for myself based on the rollout of more technology, united states, global, wherever i'm long. >> we got a pop here for springing forward. it has been very cold, dark winter. there's finally light at the end of the tunnel. this weekend it's day light saving time. make sure you set your clocks ahead one hour. all right, let's move on. the grand finale, confessions of a teenage traders week. time to reveal my picture unfortunately. so, here's my photo.
5:22 pm
this is my high school yearbook photo. >> are you 9 years old? >> i was 16 years old in that photo. >> very angelic in that photo. >> i was angelic. i still am, tim. >> you're still angelic. >> thanks, pete. >> oh, this is another photo that lisa our executive producer insisted that i showed you guys. a photo they sent to a local news anchor. she invited me on set. i had a perm. i had a perm. all right, let's get to our youngest teen trader so far, dr.
5:23 pm
j.'s daughter brings here. tristen, how did you get started and. >> well, it's kind of a family thing, i guess, my uncle and my dad do it. >> what was your first trade. >> i my first trade was apple. it was paper trade. >> what do you think of the stock now? >> apple? i don't think i would trade now, i think it's kind of pass its prime a little bit. >> okay, you have your uncle and your dad in the business, who would you value in terms of advice more? >> a loaded question. >> probably my dad. >> smart answer. >> thank you. all right, what's your top
5:24 pm
position at this point? >> right now, it's probably in disney or lululemon. >> why lulu lemon? are these stocks that you have experience with them? >> yeah, i'm really familiar with lululemon, we have a shop near us. i like to put it -- i like to buy that kind of clothing. i see that in the stocks i guess. >> tristen, pause you come from from a family of options people, do you talk about stocks versus options? >> i mainly just trade stocks. i dabbled in options. i haven't had -- i'm more about stocks. yeah. >> what do you advice to give to your niece? >> i love the way you're approaching it right now quite frankly, i think it's the right way to do it.
5:25 pm
the options world is different. you're in school still, you're not in front of computer. continue to research and try to find every aspect of it. it's about everything and combine everything. >> when you make money, tristen, what do you do with it? >> when i make money, i usually keep some of it in the account and i take it out and i put some of it in spending, saving and charity. >> put some away for herself and give some away to charity. >> so the money for yourself is that for lululemon clothing or for college? >> i usually spend it on clothes, but i'm more frugal with it, because i made it. >> all right. all right, let's hit the final trade here for the week. let's go around the hour. tristen, your final trade. >> disney.
5:26 pm
>> john. >> smg. >> grasso. >> verifone. >> know kia. i think the stock is going higher. >> tim? >> i have been on the china internet name, the moral of the story, the valuation it's an ali baba story getting dragged up. this is something that i think you have to play. thank you so much for watching. coming up next on "options action" the stock that's poised to double. stay tuned to find out what it is. ♪
5:27 pm
[ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. with investment information, risks, fees and expenses save you fifteen percent or more on car insurance.ould yep, everybody knows that.
5:28 pm
well, did you know the ancient pyramids were actually a mistake? uh-oh. geico. fifteen minutes could save you fifteen percent or more on car insurance. predicting the future is a prettin the united states do. g means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done.
5:30 pm
♪ this is "options action." tonight -- >> we have cars, cars, cars. >> i bet you do, because with jobs coming back to america, auto sales could be next. we'll tell you how to profit. plus, it's a question every trader is asking -- >> what little richard song was the title of a 1950's movie starring james mansfield? >> no, not that. what $5 stock is poised to double. we got answer. and is fancy losing favor? the rich are getting richer, but
109 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on