>> that was interesting. >> it was. >> and they decided now to double down. >> yeah. they might be late to the game. we have a difference between amazon and google in the cloud. >> good stuff. straight over to you guys and have a great weekend. >> you too, kelly. "fast money" starts right now. overlooking times square, i'm melissa lee. our panel tonight. tonight on "fast," chipolte tanking after three new states were added. we have the details. and the force is with the box office. star wars advance ticket sales has disney shares back at all time highs. but there is a better way to play the craze. and something rare is happening in large cap stocks and it could have investors on the hunt for yield very excited. but we start off with the markets. the s&p with the biggest weekly gain of the year, ending higher by more than 3%.

so for any investors, what is left to buy. >> i think amazon is a buy. and i think it still goes higher. a think google, called alphabet, i think that is in great shape. i think that goes higherme. and i love the way netflix is performing. david is talking about that one. i think that is breaking out and will continue to go up. the performance of the market leaves me scratching my head but the resilience in those stocks is something to behold. >> so the theory is buy what has been working? >> that is one way. we talk about the narrow breath, the fang stocks and other stocks. let's take a ge or a boeing, those are the areas i would look toward. the others will do well. but the defense stocks an the industrial like a ge, where you get 2% or 3% dividend and they haven't quite made new highs. so that is where i like to look. i would go general electric and

i think that is left to buy. >> agree with guy. and the market is pricingism see you have to be in growth names. people are searching for growth and trying to find it. i agree with the amazons of the world, long-term, but i think short-term it may be a consensus trade. people are betting on the fact that the retail business is driving the stock when it is not. it is 100% about the cloud business. so i think you could see it come in a little bit. but ultimately long-term, amazon, google, netflix, facebook, these are names you want to stick with. >> nike, under armour. >> these are all expensive stocks. >> so i was on a week ago and i said people are fearful of nike because of the valuation so the stock came in 10% and so did under armour. there are reasons to stay there and buy under armour and the underperformers, american eagle and abercrombie.

stay with what works. facebook, netflix, all of the names we talk about, still worth buying here. >> what has had a nice week. a couple of names. >> what? >> apple and ibm. >> apple, i here. but let's not get crazy about ibm. >> it was up 5%. >> on a great tape. up to 129. good for them. but that is playing the stock market, which is fine. we've talked about for the last 16 months if you just did the math, ibm was $139 stock it. overshot and at where we thought it would go. i thought the multiple was too high. and could it rally another few bucks. yes. but that is a challed company which -- a challenged company which we'll discuss later in the show. >> 140 is a critical level. but one, they could be ripe for a new ceo. clearly there is something not going right there. that could give a boost to the stock. but they could come out with and show how they could monetize

watson that, will change this company. now they came out with an app this week using watson that predicts what the hot christmas gift will be for your kids. i bet that app is popular and gets people in the stock. >> i don't know how much is it t does really move it. that is the problem. >> that is the long-term play. >> that is the only reason to own the stock. long-term is the play. watson could be an unbelievable stock but i don't believe it will drive revenues at all. >> same with cisco. everything they want to migrate to and want to be, the margins are half of what they are margins are for what the bread and butter has been. so i don't know if it moves the needle on any of those. >> another big story. alphabet shares hitting an all-time high. after a high, tapping diane green, the co-founder and former employee of cloud efforts. >> my goal is for us to talk about google as a cloud company

in 2020. >> is the tech titan late to party at this point. jean muncer from piper jaffray joins us on the "fast" line. >> hello. >> it seems like google, or someone from vm ware wants to go after cloud and enterprise, which could be a very big business, could it gain share at this point? >> i don't think so. and i don't think you could pay me enough money to take the job to run that business. not that google would want to hire me, but i couldn't see how this will turnout as a market share winner. and the reason is aws has the development community behind it. they give a ton of features away to small businesses to get on aws. it is growing at a wicked rate at 80%. and i think while it is important that google is there, the reality is this is a place hold for them long-term. >> what kind of mode does web services have in terms of contracts with clients and how

long-term is that. how easy would it be for an enterprise to say we're going to give google a shot because they are going to cut their prices to gain share. >> you are exactly right. that is how they will approach it. but we've seen price is less relevant. and to answer your question, typically the businesses could pay month to month with aws. some of the bigger customers have long-term contracts. it is not one click away to switch from one provider to another. these are developer platforms and as more and more developers learn to build on aws and go to other businesses you have get an army gaining aws market share. and this is not a pricing game. there are players out there cutting prices by 60% and 70% and not able to gain share. this is about functionality and time to market and aws has that advantage. >> it doesn't have to beat aws to win for google. how does this move the needle,

if at all, for google itself. >> to put it in perspective, aws will go $8 million this year. if google did a third of that business, that would be a $2 billion or $3 billion business. and google will do $68 billion for next year. so this is kind of call it side percent of revenue. even though that is small, there could be optimism for investors. small business is profitable and growing fast, could garner multiple expansion. but i think that will probably happen. i think people will be optimistic about it. but the reality is there is probably five other things more important to investors than cloud. >> all right, gene, great to get your perspective. thank you. of piper jaffray. people like this move, obviously, today. >> i think it is insane the stock up on this move. it will take a mountain for google to penetrate in this space. amazon has such a lead. aws has ten times the capacity as everybody else combined.

so they are way ahead of the game from that perspective. and the commentary about the revenues an the cloud business in 2020 actually outpacing the revenues in their ad business is an absolutely insane comment. they are roughly a billion in the web services and they're going to get to maybe $8 billion. >> you looking at it as a staticent rstatic entity. they could make a acquisition. >> and they've made a lot of comments that are off the grid as well. but it is a 5% business for them when you look at these total aggregate numbers. amazon is still the place to be. >> the place i would look that would be challenged by this space. is rax space. trading 25 times earnings. it will hurt them at most. do you want to go up against google and amazon as your competitor. b.k. doesn't. >> a year ago, if they made the announcement, i would say not a great idea.

because ruth porat wasn't there. she came in in march of this year. the stock traded sideways and then off to the races ever since. finally there is an adult in the room. google trades at 22 times forward earnings and 8% eps growth and i still think it is dirt cheap, with her there the stock continues to go higher. still ahead, tesla recalling every single model s car it has ever sold. a total of 90,000 vehicles. but could the fears be overblown. and four weeks to go before the new star wars hits the theater and already the behemoth is seeing record breaking numbers. julia boorstin has a report that could make disney shareholders excited. >> and what do conico and caterpillar and conico have in common. they are making bond investors down-right jealous. we'll explain after that. much more "fast money" right after this. (vo) what does the world run on?

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welcome back to "fast money." chipolte a major buzz kill in today's session. stock falling more than 12% as the cdc reports more incidents. they respond by saying we take this incident very seriously

because the safety and well being of our customers is our highest priority. the stock got dinged. >> i got that wrong. i thought it was a buy. i thought you could buy it there and it was an opportunity to buy stock cheap. but this adds another level to it. i again back off that trade and say i wouldn't touch it until something breaks. >> we still don't know what is causing the e coil, whether it is the ingredients or how many stores have to be closed and how long to be cleaned. >> and when you look at cmg, it looks like a good trade to rush in right now. when you pull that back and go back multiple years, it has another 70 points to the downside to run into any type of support. and with a name like mcdonald's or yum showing signs of life, there is better places. >> and they are all cheaper. >> cheaper, with no uncertainty. we still don't know what is causing this. this is actually -- i was with dave on this, where you say, 600, this is probably a buy. but now people are going to

start saying, you know what, i'm going to skip chipolte until they figure this out. that is a problem. i think grasso is right. 485 is where i take another peak at it. >> and this is up your -- >> which is jax in box. which is kud owna. but i have a previous engagement. >> a hair cut. >> exactly. and listen, the comps were compromised in the last couple of quarters but they are back on track. given the choice, absolutely, jack with an eight handle or lower, you buy it. >> moving on, abercrombie and fitch surging 25% and kicking off the top trades. the retailer surging after beating the top and bottom lines, same-store sales falling less than expected. they benefited from fewer discounts. that can't be all, can it, guy? >> this is a remarkable quarter.

operating margins much better than expected. they beat on eps and revenue. this is so abercrombie -- this came out of nowhere. because if you look at the last two years of their quarters, they have been horrendousch i have to see it one more time. today was absolutely a short covering rally that i think everybody is waiting for it. but to buy it up 20%, i think it is a one-off for them. >> the bar is set so low. and guy and i talked about this being a private equity takeout story and that never happened. and american eagle, it got back up and bounced back. >> would be in avo versus amf. >> and diocese shares moving higher. four week as head of the anticipated star wars: the force awakens. setting new records by the day. julia boorstin has more on this. >> melissa, star wars: the force awakens has already sold more than $50 million worth of

tickets alone with four weeks to go. the presale record is on fandango. and last month they sold eight times as many tickets as the previous record-holder. imax said it has sold $20 million in the u.s. more than double the previous record. the imax ceo saying this is notable considering the tv ad campaign has yet to start in earnest. the film was on track to set a new record opening weekend and it could be the biggest movie of all-time. currently held by avatar which grossed $2.7 billion worldwide. working in its favor is timing with 16 days between star war's release and when people return to work in the new year. and the fact that disney is requiring theaters to keep it on fi film screens for a number of weeks. and ticket demands could be for toys and driving disney shares higher over the past three

months. there is no question that disney $4 billion acquisition of lucas film will pay off in droves. melissa, we'll see over the next four weeks exactly how much. back over to you. >> julia, thank you. julia boorstin for us on the west coast. what do you think? >> i laugh because she -- i thought she said pay off in drones. i think the stock -- the momentum will continue with disney. i mean, look, it definitely is priced in that star war will be an absolute hit. they will money in theme parks, licensing agreements, et cetera. i think this trade will last for a period of time, but i caution you. we'll get to the point where it runs out of steam and it is time to take the money off the table and that is closer to the 140, 145 level. >> i'm in disney. i bought it. i was lucky enough to pick off a spot below 100 and bought it again at 110 on momentum. you could play it with electronic arts. they have the rights to star wars battlefield or whatever it

is called, battle front. someone will correct me on twitter. you could play that one. it is up 55% year-to-date. i agree with david. >> think i have 20% to the upside. >> so i was wrong to say to sell disney around $109 or $110. i did not think the momentum would continue. the way i trade, the way i trade star wars is i look to has bro. they just got some business, the toy business, from mattel. my doll guy tells me -- >> your doll guy? >> you don't have a doll guy. my doll guy tells me that -- you have to have all of the ins in these different areas. nevertheless, has bro doing very good with disney's "frozen". >> did you say doll or dog. >> my doll guy. how do you do this job without having a doll guy. >> does drew berry moore rep

rise her role in this show. >> was she in star wars? >> that is right. the original star wars. >> i think you are thinking e. t. >> that is right. >> that is great. >> like outer spacey kind of movie. >> she was still in diapers. >> steve did a great job. he said it would fill the gap down at 96 and a half and it did. but the problems disney have, they still have. espn and cable, that did not go away. we said before the past quarter that no way they would have two quarters lousy in a row. that came to fruition. but as we get back to 122, i would say take it back. >> a lot could happen. i'm say, if you have enjoyed the ride, not a bad place to take profits. >> especially if they do e. t. again, withdrew berry more. >> and one stock breaking out and we'll tell you the name and how to trade it. i'm melissa lee and you're

watching "fast money." here is what is coming up this hour. >> talk about an electric shock. tesla announces a recall on every single model s. sedan it has ever made. but it is giving some traders a bright idea. plus, large cap stocks are doing something very rare. and it is providing a wind fall for yield-hungry investors. we'll explain when "fast money" returns. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday.

investors hungry for the yield look to bonds but with the 10 year yield at 2.5%, maybe they are better off in stocks. seema mody has a look. >> they looked at 30 large cap stocks versus long-term bond yields there are large cap stocks that offer better dividend yields than the long-term debt. take a look at the five names. conoco-phillips, 5.5% and bond yields yield 3.3%. philip morris, the current yield on the ten year bond is only 3%. and then industrial giant caterpillar. yielding 4.5% but the bond yield 3%. proctor and gamble, the stock yields 3.5%. bond yield only 2.3%.

and ibm, whose shares have fallen, yielding 3.8 and bond yield 3.2%. so choosing between the two might be a tough choice, melissa. >> seema, thank you. so let's play what we are calling the ultimate game. ultimate game of would you rather. these five stocks versus bond. so would you rather conoco-phillips stock at 5.5% or the bond at 3.3%? grasso? >> i'm going with c.o.p. stock. i'm going there. only because you paid to wait at this point. so now -- but here is the problem with it. this is why it is a little bit bearish on my assessment. because there is an inverse relationship to price and what the stock yields. that is a good thing. so you are paid more to wait. but you do have that capital depreciation and it is based on crude. i think crude has a bill more room -- a little more room to fall but i would be waiting versus the bond.

>> and next up is seaberg, would you rather philip morris stock at 4.8 or -- >> proct or and gamble. i'm proctor and gamble. come on. would you much prefer the stock over the bond. if i'm going to buy the bond at 2.3%, i might as well buy the ten-year. in a rising rate environment, stocks underperform. but we're talking about 25 basis points it. will remain that for a period of time. the pace is what important. i would rather own the equity. >> cater pillar 4.5 or bonds at 3? >> bond. and here is the thing. i will do that every day and twice on sunday because the one thing this -- the 4.5% stock yield doesn't account for is volatility. the bonds are going to be half as volatile as the stock u. need to know you could lose your money buying caterpillar stock. it is not apple to apples. i would much rather be in the

bonds. >> maybe this same thinking could apply to guy's choice. ibm stock or bond, yields are the same. >> i did a little dissertation here. but ibm bonds and i wrote a hashtag on the bottom. but my explanation is similar to b.k. just because you have 3.8% yield, if the stock goes sideways, it ain't going sideways. you might get a rally. but ibm you come back five years from now it might have a $100 handle. so forget about the dividend, i think ibm goes south so you are better off in bonds. >> this is an educational would you rather. time now for the final trade. around the horn, steve, what do you say? >> yum is my final trade. you have to believe that china is not dead on arrival. if you believe that, yum trades up 20% from here. >> seaberg? >> on a massive selloff, macy's, i think you buy it here. we get one snap of cold spell and the stock is going up 5%. >> beakers?

>> i'm not sure i want to be in the, let's call it the retail space. but the one space i want to be in is microsoft. we just talked about bond yield. microsoft has a good yield and momentum so buy it. >> gee. >> great job by dan nathan identifying a buying opportunity unh against 110. options action next, unh, final trade. >> i'm melissa lee, thanks for watching. and don't go anywhere, because as brian said, options action is coming up. understands the life . for those who've served and the families who've supported them, we offer our best service in return. ♪ usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life. ♪

hi there. we're coming to you live from the nasdaq market site on a beautiful night in new york city. the guys behind me are getting ready. while they're doing that, here is what is coming up. ♪ it's the most wonderful time of the year. >> because one major big box retailer showing signs of breaking out. we'll give you the name and how to profit. plus -- talk about a shocker. tesla shares falling after the company announced a big recall. but that could make for a great trade. we'll explain. and -- >> you lock it up. >> that is what investors want to do with profits in their portfolio and we'll show you how for under