thereof tuesday. "fast money" is coming up in just a few moments with melissa lee. >> the big question tonight is will apple and yahoo! hold their gains and mapping to turn around market sentiment. we're trading the conference calls. >> and i want to hear about the kid who turned down an internship with tim cook. >> we have him on. "fast money" starts right now. overlooking a snowy new york times square, i'm melissa lee. big selloff, but could apple earnings change sentiment. shares up 5% after hours. blowing past expectations. the company selling 74.5 million iphones. well above estimates. yahoo! also popping on news it will be spinning off its stake in ali baba. we'll be bringing the details to you as we get them. we also have the latest earnings news on at and t, u.s. steal,

electronic starts. we'll tell how to play all those stocks.and t, u.s. steal, electronic starts. we'll tell how to play all those stocks. but a big move in apple. you can't pick apart the numbers. >> you can try. tim said it, thought the guidance was flattish. but this company also said they will give more realistic guidance going forward. if you went into this quarter thinking this wasn't going to be a huge blowout on the iphone number, you were mistaken. you just missed the whole thing. and we also know apple a lot of great things going on. so you said the stock is up 5% after market. implieded movement in the options market was about 6. let's see what the big hone dmo does here. i don't think there is a rush to sell it. but the prior high last month, you see some resistance. >> you you look at what the quarter data tells you that the refresh cycle is much bigger, deeper, faster, stronger. which means fiscal q2 also important.

and what i'll say is i think the bar has gone from being measured to very high. and i think the bar will be very high for fiscal third quarter. and i think we have time to stay in the stock. i don't say you run for the door. you don't trade apple, you invest in it. i agree with that thesis. but at some points, you have to start worry. the good news is china sales were up 7%. china offers an opportunity to take this higher. but i watched the 119 level. i love these numbers. i think fiscal 2 will be good, but you get to a place where sentiment on apple is now going to start to become a little silly again. >> it is almost genius the way they handled the second quarter guidance in terms of making it flat to a little bit lower and the stockstill trading up. >> and i agree, this was a great quarter. yesterday the stock was $113 and now it's $115? so if i told you yesterday you're looking at 71 or -- i

forget what the exact number was. >> 74 1/2. >> 74 1/2. you would have thought, wow, it would be a lot higher. so i agree with timmy, it's expectations have moved up. >> $178 billion in cash now which is probably a third of their market cap. but to your point, yesterday the high in the stock was 114.36, which is effectively exactly where we're trading right now. so to karen's question, if i had told you you they would come out with a quarter like this, where is the stock going to be trading, should be higher than it is. maybe it will trade tomorrow, maybe it will blow right through the 120 level. but tim who has been a steadfast bull in this stock for a long time now basically said here and now the bar is set much higher. so i think the stock should be hire given this quarter. i'm surprised it's not. >> it also raises the bar for a lot of companies. microsoft said there a problem with the pc cycle. we heard from caterpillar and a host from other companies there

is an fx problem. apple just looks like super man compared to the rest the s&p 500. >> and here is kind of an up loved part of the story. macs are taking share. so microsoft doesn't sell into the mac. but so to me, these guys are doing a lot of things right. i want to actually make one point. there is the iphone company. there is a huge number, 687. that was the asps on iphones. and they have larger capacity and we have larger screen phones. i'm not certain that's the one thing, if you want to pick this apart, i'm not certain in an environment that we are in going forward where they will be a lot of the growth, which will is geographically whether that is an asp that will stand none a world where android really dominates market share. >> i'll get back on my horse now. gross margins were 39.9%. they beat by 140 bips over what the street was and this is a the a time where i think this refreshment, people are willing

to pay this. apple should be defended here for their ability to defend their margins and their asps. i don't think some of the other players that we know are fantastic companies stealing market share, i think there is a place for everybody here and apple is winning. >> let's bring in brian blair. he has a buy rating on the stock. great to have you with us. got to be honest, when we heard that you were saying that the numbers for the imt phone sales could be in the mid 70 million, we thought you were nuts. and here we are. now what? because now all of a sudden the bar is raised so high. with it defend this level shall. >> i think it can question through that. and the reason for that is just like most of the street was absolutely wrong on december quarter, everybody will be wrong again on march. the biggest thing that we'll be listening for that is critical on this conference call is what this momentum in iphone looks like in the current quarter for the next three months. one of the things i'll be

listening for is tim cook talking about a supply demand imwall. what that means is an he will is still unable to meet demand for this phone globally. you mentioned china numbers. significant 70% growth in china. there is a big pocket of the world that was not buying iphones a year ago, they are lining up for the 6 and 6 plus particularly the 6 plus and that will be the big story from here is iphone units will be very strong again in the march quarter. >> so i'm surprised and think you are, as well, that the stock is not significantly higher than it is now. where does the stock go? what do they do with $180 billion? >> so the first is i have $130 price target on the stock and i do think it works its way in that direction during this quarter. and i think that will be largely driven by expectations going up. so tomorrow everyone has to raise their numbers tomorrow. so that's where it starts. as numbers go up, as the bottom line number goes up for this full calendar year, the stock will follow it. but what will happen is as we move through the quarter, analysts will move from i think

they're at 49 million units for march, they move into the 50s oor 60s. and we'll see the stock move again. i think it moved 10% up this last quarter. i think we can easily see that again. and even though there is a lot of naysayers around the watch, if the watch is well received, and i have a sense for the protection, that could be worth another $5 or $10 in the stock. >> do you pay attention to the guidance that they have given for the next quarter? >> a little bit. but conservatively. and this current quarter -- between iphone 6 and iphone of plus, it shifted toward the of plus. we believe about 50% of production hid way through the

quarter. that's what drove that higher asp. outside of the u.s., people really want the 6 plus. that drives significant revenue because each side is $100 more. so i do pay attention to apple's guidance, but there are a lot of things that can change mid quarter. >> and just quickly, what is the margin differential between the 6 and 6 plus? >> they don't break it out, but this is exactly why they're kissing 40% again on gross margins. the beat is 90% because of the 6 plus mix shift. and we've highlighted that really, really critical. it's a great question. >> brian, great to have you with us. thanks to your time. let's talk about this. what do you think now? >> the one thing i will acknowledge a bit what dan said about some of the headwinds on the currency is this is a case where you have a company who really has people that are possibly stretching every last dollar to buy this especially in a place like china. having said that, i stick with what i said. i think there is plenty of room

for this company to continue to outperform for fiscal second quarter. but i think people will start to price that in already. i think you have to watch that and somewhere north of 120, you need to be careful. >> are we heading in to no man's land? if nobody thinks anything of the watch, a couple quarters where there is really not too much going on. >> actually i do think that watch is a catalyst. i think the watch will be a very big disappointment this year. i don't think it will do the sales. but then you have to think about april again and people will really start to focus on capital return. that cash number keeps going up and the company can continue to buy the stock. last year back in january and february, they did the accelerated buy back. they will buy back stock aggressively. >> let's get to today's big selloff, concerns over earnings and head winds at microsoft, caterpillar and procter & gamble. caterpillar ceo telling "squawk box" he's worried about the fed raising rates too soon.

>> i would put it off definitely. i earn courage tencourage the fe to raise them sooner than they have to. >> does that concern you you? >> i feel like caterpillar is a little bit of its own animal.to. >> does that concern you you? >> i feel like caterpillar is a little bit of its own animal. to make a bad joke. but i feel like time and time again they seem to disappoint, guide and disappoint. why is it that they have so little visibility into their business? i understand energy that was energy related from the beginning of the fourth quarter to the end, we saw dramatic macro shift. that i get. but across many of their businesses, they still don't -- i don't get it. i don't get why they're not able to tell how they're -- >> because things got a lot worse. if you look at global resources, multiyears low. >> he's saying it's more of a

baromet barometer. >> this is the reason why there was so much fearmongering which was overdone. companies like caterpillar, they have identified the fact that the global growth story isn't as good for them. so a lot of the key parts they compete in was down 21%. construction down 9%. so is this a tell on the u.s. economy? i don't think so. i think this stuff is in the price. i think at this point caterpillar looks interesting. i thought 83 would hold. it didn't. i was wrong. >> it surprises in terms of what the stock did. this is a stock that has underperformed for the last going on three years now. and a broader market that has been unbelievable. so how do you trade the stock? it held the levels timmy talked about. this is the level we bounced off back of half of 2012 and awful 2013. basically 79 1/2. and you did yyo you did it on a

times normal volume. at least risk/reward, i think against 79, you be long. >> you can't ignore the fact that dupont, bristol-myers, procter & gamble, all companies citing head winds of currency markets. so many things going on. btu. >> procter, they were not offset by the head winds. they get more than 50% of their sales from overseas. and they also have a massive emerging market exposure. this stock was trading at 21 times for low single digits growth. remember what you're paying for. that's the point. so this should not have been a surprise to your point earlier. >> it's a company that is in transition. so i think they're spinning up brands. i don't think you need to chase it. >> we'll be follow be apple and yahoo! after announcing it will

spin off to a separate the company. plus at and t, u.s. steel, electronic arts all moving.

welcome back. i'm john harwood in washington. i just got off the phone with a white house official who confirmed that the bobama administration is dropping its plan to tax the capital gains. 529 college savings accounts that so many families have turned to. the administration announced as an effort to -- as part of the effort to pay for its middle class economics program to provide tax benefits for people lower on the income ladder. the problem was that many people who consider themselves middle class who make more money who benefit from 529s believe that was unfair. there were complaints from democrats and complains alike. the obama administration is responding and they are not going to include that proposal which raised $1 billion over ten years in their budget which is to be released next week. >> i'm sure a lot of parts are

giving him a high five. yahoo! announcing a spinoff of its remaining stake in ali baba. bob, this seems like good news. stock up sharply. but why do you think the core business would stick with the japan stake. >> shareholders got what they wanted. it's a huge deal for them. i think there are different tax consequences. they're trying to be very efficient. they talked a little bit on the call about working with softbank and trying to usher that through, as well. but they are very open to monetizing that but doing it in a very tax efficient way. >> help investors understand why yahoo! only seems to rally after news that we already knew was in the price. marissa mayer told us they had to do something. it was all but expected. no big deal. so what is next for this company? there is really -- at that time

ta catalysts seem few. >> there was speculation that they weren't going to make the announcement. they have $7 billion obligations. will it be more share buy back, any m and a. and one of the big questions is on the cost guidance for next quarter a little bit like what people are looking for. so will there been any cost moves. people are looking for that. and lastly, yj. any disclosures or progress on yj during the year. >> the stock reaction i think is worth touching on again because yahoo! has been an underperformer basically so far this year. so arguably this gain that we're seeing in the after hours session really makes it flat or in line with what its peers have been doing. so at some point, what would you like yahoo! to do with that cash in order for it to break out of

where it's trading right now? >> i think shareholders want to see a good portion coming back. but i'd like to see them also make strategic investments. people point to various video companies or even e-commerce advertising companies, making some sort of strategic investments that they can point to for growth going forward. i think it's a combination of those two things. >> do you buy on this pop? >> you do. i think you'll see more catalysts coming here. the core will get better. any sort of cost cutting announcements, i think y year. >> would you buy it here on this pop? >> i wouldn't only because it's a long time between now and when it actually happens. >> september. >> and investors have very short time frames. since this is a very big significant chunk of the overall value here, i think you could see people say i'll come back to it. it's dead money for a while. i'll come back to it.

>> is it dead money? >> i don't think it's dead money, but what this announcement did, it masks what continues to be a declining business. she walked into a basically a declining business, has doning in to improve it, but had the trump card in ali baba and thki. might have been the last lever she could pull. but at $51, you probably are getting yahoo! core business for next to nothing. >> i'll say this, though. spinco with no tax ramg if i indications means a lot of people said this company is worth a whole lot more than 51 bucks. so again if they're successful at this, every analysis ez if they get this off without any tax hit, yahoo! is worth a lot more and it goes back to the sum of the parts. what i was saying before. suddenly people can recognize it. so maybe you want to recognize it. >> the ali baba trade, stock was trading down into that ipo if you recall. that huge move from it looks

like the mid-30s up to 50 or whatever, all came into the ipo and then afterwards. but to me, a company trading on the sum of the parts should trade at a discount to those ports. and here is the other issue. for the last six years, the company has basicallied a between 4.2 and 4.6 billion in sales and they don't appear to go higher. we have breaking news. josh lipton. >> on the conference call, apple ceo tim cook just making some news. remember apple had teased that a apple watch would be available 2015. tim cook saying it will ship in april. a wide range of opinions about how immediately successful that product will be. morgan stanley think apple will ship 30 million. others are more around 10 million. we'll bring you more headlines as they cross. >> thanks so much, josh. that sort of impacts what

the estimates could be for the second quarter. if the watch ships later in the quarter, then the n numbers cou be lower. >> its website today said watch early 2015. i don't think april is early. they were gearing for q1. and morgan stanley, if you go back and look at five years ago, when they introduced the ipad, people did not have high expectations. i think they ended up selling maybe 3.5 million units or right out of the gate. and thing at tthey did 3 bpt $5 billi 3.5 build in sales. >> you don't like watch. >> i don't think it will be a big impact. >> apple shares still holding on to the 5% gains. still ahead, major moves after hours from a slew of companies reporting including u.s. steal and electronic arts. we'll break down the earnings playbook.

welcome back. blow outquarter overall for what is happening with at&t. interesting to see those particular did post a slight e beat. also a rev through beenue beat,. 55 creents a share on earnings. revenues beat 33.4. at&t added about 2 million new wireless customers, so big moves. a 2% move nearly in the after hours. back to you. they added a lot of wireless

customers during the quarter in that apple had record iphone sales. >> i'm not surprised by the flex nextel purchase and what they're doing in mexico. >> this is a good quarter.flex nextel purchase and what they're doing in mexico. >> this is a good quarter.lex nextel purchase and what they're doing in mexico. >> this is a good quarter.ex nextel purchase and what they're doing in mexico. >> this is a good quarter.x nextel purchase and what they're doing in mexico. >> this is a good quarter. nextel purchase and what they're doing in mexico. >> this is a good quarter. beat on revenue. so the stock is not ridiculous expensive. i don't think it's one of the stocks that is up 10% over two days, but i don't think you'll get hurt on an at&t. >> a bunch of other companies out with earnings. let's go around the horn. we start it off with u.s. steel rallying after hours. >> bar so low and we really have to find out what they think about their due ytubular busine. is th this is a big part of the growth. took the stock down 55% from highs in july. we bottomed around 20 and

change. so i think the bar was very low going in to the newspapers. t numbers. i think you've seen a bottoming of some of the prices in the capex world. but we'll wait and see. a lot of bad news priced in. take a shot. >> quarter was good enough. 23 and change in the arrestfter market. they talk about the progress they're having and that's paying dividends. we talked about it two years ago. so i'm surprised the stock got as low as it has, but you can only talk about today. i think the stock at 23 in the after hours will go higher. >> electronic arts with a solid beat on earnings popping in the after hours session. >> it was quite a sizable beat and the magnitude of the beat was actually bigger than the somewhat disappointing guidance that they had for the upcoming quarter. they dragon age maddon who is i

think is a fan of the show. you know he doesn't drifly. >> sort of like you. >> get in your bus and come see us. but this is not so expensive. and they have done a tremendous job. they have great franchises. it ends up being a lumpy business, but not all that business. >> you you were saying you you thought it could have been -- >> i thought for ablges microso should have bought it. a $20 billion deal. today that's not a big deal. so i think the quarter is fine. i'm surprised the stock isn't higher. does it get back ck to 2005 lev some maybe not. >> and juniper. >> they had low expectations. some activist pushing for some stuff. but again, the company is trading pretty well since cisco had reported not too long ago.

and again, at 22 bucks, i think it's trading a little higher in the after market. i think you probably have down side to 20. i'm not saying you buy it, but one other point. 40% of their sale comes from overseas. and they may use the mulligan next quarter. so expect to see more of that in the first half of this year. >> we talked about three earnings beats. we talked about apple and u yahoo!. how does it set up for tomorrow? >> a market that is very sideways. we've said earnings season would have a dollar headwind and also a global growth component to it that was very uncertain. i think it reaffirms why you want to have your allocations in europe because it highlights where we are in earnings momentum. >> coming up, we have theg up wt from both top earning calls. we hear from tim cook and marissa mayer. plus it was a record quarter for the app store. we get a look inside with a 20-year-old who has been

creating apps since he was 13.

still ahead, apple up 5%. tim cook just announcing the apple watch will be out in april. we'll have much more from the call. plus yahoo! revealing plans for its ali baba stake.

find out what marissa mayer has to say about the quarter. and is to be stocks falling as the dollar gets stronger. but first, the call well under way. josh lipton is listening in. >> highest ever revenue and earnings for apple. so ceo tim cook took the time to give his perspective on the quarter. here is his take. take a listen. >> today we're reporting a historic quarter and imi'm incredibly proud of everyone. demand for iphone has shattered our highest expectations with sales of over 74 million units driven by the unprecedented popularity of iphone 6 and 6 plus. this volume is hard to comprehend. >> now, cook talking about iphone as a standout in the quarter. and really talking about the

strength from the flagship product around the world. so u.s. up 26%, emerging markets up 58%. mainly in china up 100%. back to you. >> thanks so much, josh. what does the line item about main land china tell you? we've talked a lot about it on the show. >> they have caught a lot of hype in china, but i don't think the u.s. press has known what to make of it. this upgrade cycle will be big. they're waiting for the big phones. but again, i want to go back to the fight that the price points will be much lower going forward. once every chinese person who can afford an iphone has one, at some point you may see a reversion back to these lower priced competitors. and that will happen at the second half of the year. it won't happen at the rollout. and let me make one other point. when we get the upgrade in september, it's not going to be gang busters anymore. everybody who wanted a 4.7 or 5.5 inch iphone 6 has one. so this is how you have to think about it.

>> i don't. the nature of devices and ganlg either friday is such that we've had an appetite every year and a half. so maybe september is too soon, but the rest of the emerging world is a place they haven't even tapped yet. >> asp was $687. >> and gross margins grew 120 bips. >> but you had this massive thing where they raised the capacity of the phone. they got rid of the 32 and went straight to the 64. they're capturing $92 going right to the gross margin. and one other point. >> and then we have to move on. >> ipad is dying. they missed the number by 1 million units. so at some point -- >> you you sound really negative. would you short the stock? >> i would short it at 120. >> all right. let's get a developer's take. we brought in john meyer who has been developing apps since age 13 including one of the first flashlight apps for the iphone. he also turned down an

internship with apple but maintains close ties with people at the company. so you started at the 13. you're 20 now. so you have seven years of experience developing apps. the question at this point now, because a lot of people are looking forward to this into product the watch. are you thinking about how will we develop apps for the watch? >> it's been a really large topic of interest for the past few months for myself and many of the other developers in the community. and what we soo is that there are actually a few issues going on. the biggest is that if you don't know this, but the way apple handles product introductions is they don't give developer as model to test before launch. so us as a developer, we can only use what they call a watch simulator on the computer. so what we see is that a lot of developers are trying, but until it really comes out, there can't be much developed at a high level until a final release date about that.

>> so what does the watch simulator look like? obviously they won't release the actual thing because then it will leak. not that it doesn't because it eventually does. but what are you seeing in the watch simulator? >> the problem is there is really absolutely nothing ultimate out of the ordinary. eats everything we've seen in apple's key notes, the product pages. just the standard bare bones os. and the problem is in addition to that, we also have quite a bit of time where the watch will be released and we'll have to test our devices with the apps on it and still wrait for approval. >> so you're saying it will come out later than expected, april versus early in 2015. so what is the lag time? a lot of people won't buy it unless they know what it can do for them. >> with every apple product, they release things as not

products, but as platforms. and they only get mainstream once the apps are developing after months. so i think the lag time will at least be a series of months before we really start to see some of the innovative apps on the watch. and obviously we'll have a good set of apps on day one, but they will be very basic because we can't test them on the device until it's released. >> so you sound cynical, but if you base this upon the other guys that they have released in the past, they have caught up and exceeded when guys like you who have this brilliance in developing apps can get to the hold. so is the watch something that can be powerful and ultimately if you compare to the success of the other devices, which the out of the gates had issues and were platforms, we'll be in a very good place for this company. >> i think it will be an immense challenge for apple, probably the biggest one yet. but we have to remember that apple's specialty is maybe things mainstream. what they have to do is somehow figure out a way to make the

watch be something that is cool. >> so are you going buy this thing? >> i'll definitely buy it because i'll buy it personally because i want to -- i have to. but the thing is, if i ask one of my friends that is this nont they won't buy it as of now. we have to wait and see what happens with the developers. what software is out on it. and the same that happened with the ipad. >> john, thank you for stopping by. appreciate it. is the apple watch a big deal for you? as an investor. >> i care. i think it's somewhat of a free or not so expensive option that is built into the situation right now. >> they only have up side. there is no so the at me ever buying an apple watch. >> you're the man who is on the original ipad.so the at me ever buying an apple watch. >> you're the man who is on the original ipad. >> for good reason. there are such low expects that they are only surprise to the up side. >> turning back to yahoo! their

webcast well under way. jul jul julie boorstin has the highlights. >> marissa mayer calling it a big win. >> after an exhaustive review, we're pursuing this transaction that we believe it optimizes transaction efficiency and certainty. >> as for what is left of yahoo! she focused not the on display ad, but on what she calls the mavens. mobile video and social ads. saying it was a good year for mobile in particular. she said that all together these new businesses would be one of the fastest growing startups in the world. >> we have created more than a billion dollars of new revenue annually basically from nothing in just two years. in 2015, we expect mavens will contribute over a billion and a half for our business. >> and she also called out

search revenue noting a new deal with mozilla, but she acknowledged traditional display ads are declining. she ended saying she only pursued an acquisition of the size of a tumblr or larger if it fits with her focus on mobile native video or social. to me, that says she's not that interested in aol, but she was very specific to say they are open to acquisitions if they fit in knows categories. >> julia, ha thanks. so what do we do with yahoo! >> we hear her saying you get the core business for free. >> i'd say you're still at a place where you don't worry about it. take the sum of the part, take the core of business. they tell us the aol merger is exactly what they should be doing. but either way, they are catalysts. i think the spinco is really what you wanted. p. >> i don't think there are that many more levers to push, but i

do think here you're getting the core business for effectively nothing. so the down side, although you will see it again, is limited. takes h has it has been for a couple years. coming up, a strong u.s. dollar might be derailing the mar get, but is there a way to profit. we needed 30 new hires for our call center.

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time for big mover of the day. >> 1 million subscribers. that's a big deal. >> you said it like an announcer. >> genius. still a big short. i think it goes higher from here. >> pop for amd. >> a stock with a very low bar, speculation coming out of china there could be optimism but not a reason to buy the stock. twitter down. i don't think it's a big disaster. recently just above 40. i think a lot of techs like that

action. they report next week. today they announced video and group messages and stuff. these are the sort of functionality i think a lot of years want. it's drawing people to what's app oig. when they report, you have to be care. i'm long. >> pop for oshkosh. >> yeah, on a day that for heavy industrial companies, wasn't great. but this was surprisingly good. they have a little bit different -- not a little bit. not such a huge overlap. fire equipment, ladders. very good business these days. i like it. >> you wear oshkosh. >> a lot of it. the overalls. >> could have worn a onesie. it was great. >> anyway, moving on. concerns over the

policy sending the u.s. dollar lower. >> i continue to prefer u.s. stocks. i think clearly european stocks have gotten a rally with the quantity at a time of it easing and the like, but i think the dollar is getting stronger.at a and the like, but i think the dollar is getting stronger. >> we're taking a look at ways to play the u.s. dollar using etfs. joining us is dennis gartman. great to see you. >> good to be seen. huge conference. this thing has grown from several hundred to 1900 people in the course off ethe last sixr seven years. >> and i'm sure the dollar is a hot topic. which currency crosses would you look at most closely and which etfs correspond. >> >> i think what we have here, yesterday the euro made a new low for the year at 110.95. after the greek news on the election. but within an hour, we were trading back over 111.50. then 112.

you have a huge component of the market now heavily short of the euro as the euro had chanced. and i think a year from now, six months from now, euro trades under parity. but they're such a large short position established that i wouldn't be surprised if you you trade dollar euro back to 116, 117, maybe 118. if you're bullish of the euro, if you were playing for a short term bounce, which i think you can get, look at the fxe. plenty of volatility, plenty of liquidity. the rules of arbitrage make sure that that keeps it lined very kroe wi close with the spot rate. i think eventually, however, if we get to 118, and take the euro from being aggressively oversold to aggressively overbought and i think that's the better trade, we'll be eventually to sell the euro again at 118 selling short the fxe. but for the public, you have good etfs to trade. people have to take advantage. >> the fed meeting started

today. we get at least some announcements tomorrow. do you think any of this is coming into play right here and now? is this bounce you're talking about somewhat predicated by we have a fed if you listen to caterpillar, it has to pull back? >> i think the fed has told us, i think dr. yellen told us a couple weeks ago that she was going to do nothing until after at least the second meeting. i think they will do nothing until after this meeting. i don't think the fed does anything until later in the year at best. the problem that you have is that all of the other central banks have been easing monetary policy aggressively, even surprisingly having the bank of canada doing the same. that was the support for the dollar. but at some point, i think it's nothing but a short covering rally in the euro having gotten far too aggressively oversold and i think if we try to give too much credence or take into consideration too much what the fed is doing, i think you're doing yourself a disservice. i think you're making it far too complex. sometimes markets just bounce and the euro is just bouncing. >> which correlated trade to the

dollar are you most excited about? would it be for instance gold or in the oil sector? >> i guess if you had to pick one, i'd rather be bullish of gold. everybody knows that i've been bullish of gold in euro terms and yen terms. and gold and euro terms were still stronger. i guess that's still honestly the better trade being long of the gold market relative to the other currencies. but for just a couple of days, maybe for a week or two, the euro gets a bounce again if you wanted to punt, if you like to trade that sort of thing, maybe for two or three more euros, you buy the fxe. i'd rather be a seller to 118, however. that's the better trade. that's the big trade, has greater fundamentals. that's the trade i think the technicals are even stronger in favor of. >> dennis, enjoy florida. >> thanks. yahoo! releasing its revenue

guidance. julia boorstin has the details. >> the company plans to continue -- still listening to the report there. cfo kevin goldman says that the company expects to continue to make progress in its core business, expects to continue to be good stewards of capital as you can see guidance is a little bit below estimates. but that's not hurting the stock as the stock is now at 7% after hours. it's really driven not by guidance that was a little late, but rather by the news of the ali baba tax free spinoff. coming up, facebook reports earnings toll. we'll tell you why one trader is mashing mark zuckerberg might find himself in trouble. [ male announcer ] approaching medicare eligibility?

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some traders think it do get worse for the stock after tomorrow's earnings release. dan has the action. >> facebook reports tomorrow after the close. implied move is about 6.5%. that is the average over the last four quarters. but one trade stuck out.

wasn't particularly large. bought 1500 of the february 69 puts for 93 cents to open. that breaks even at 68.07. town abo down about 10%. this was the october low at 72. break even is down here. and just think what 1 going on here. maybe some traders are reaching way out. you just got a big bump in miles.

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it's a blizzard. i got the c oechlt chlt pleo. plus a biotech up. "mad money" is next. i think you buy bab after the. i'm long. >> talked about procter. consumer staples, etfs. i think you sell xlt. >> going he will sort of stopped its run. which actually turned out to be right. but i like google into earnings. i'd do a call spread. >> and blackstone, very quietly all-time high. earnings on thursday i believe. i like bx still. >> thanks so much for watching. see you back here tomorrow.

don't go anywhere, "mad money" starts right now. my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money," welcome to america. my job is not just to entertain you but to teach you and educate you and put things like this today in context, so call me or of course tweet me @jimcramer. all right, look, i'm sick and tired, sick and tired of all the whining. just done with