advertisers care about and the shareholders care about and it's a very powerful combination and it's very different than what some of the other companies are dealing with right now. >> we'll signal the top when mike santolli signs up for facebook. mike, thanks for joining us. carol, appreciate it as always. this does it for us on "closing bell" today. "fast money" begins right now. thank you. "fast money" does start right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on fast we're all over facebook's earnings. the call just getting under way. the stock is surging in the after-hours session. we'll hear from ceo mark zuckerberg on what drove the quarter. plus, one of the oldest dow components is signalling major trouble ahead for the global economy. what it is and how you can protect yourself and there's one part of the market that correctly predicted the selloff and it's pointing to more pain ahead. why that is and why so many

investors are here. first, we start with another fierce selloff, most concentrated in big-cap technolo technology. check out shares of apple, in fact, having its worst day in two years closing below $94 a share, just a buck away from the flash crash lows and amazon feeling the pain, that stock falling 2.5% though it's rallying in the post-market and take a look at netflix, a seven-month low for the stock so the question is the nasdaq going to make new lows? are they ahead for tech, guy? >> talking in terms of the s&p. i'll answer your question. last tuesday, the s&p moved down to an 1812 rally and closed in the 1850s which set us up for a move in the s&p back to 1920. got close today actually. got 1915, thereabouts, obviously reversed. does it set us up for a more to new lows? 1780 is a level everybody talks about. 200-day moving average. big support line there. it feels given today's action we're headed there. the tech, you can sum it in up

two words basically today, ap e apple's quarter which was record on a number of accounts. >> sure. >> but not netstream was looking for. i think 1780 now is the bogey for the s&p. >> obviously apple will be the bogey for the s&p. i'm wondering, because we closed just off the session lows for apple. >> right. >> so the action intraday was not good. >> absolutely terrible throughout the entire session. you know, when you go through the numbers to guy's points, record numbers across different areas all over the placech look at the china numbers, very, very strong. look at the numbers they put up but didn't quite meet the expectations of the street and that's the problem and why it got punished the way it did. service is a strength, not enough of a factor right now. all about the iphone, what everybody is focused on and how about the next iphone and when is that actually going to come? when do we get the iannone 7? that's the only thing people can hang their hats hon in terms of what's the pipeline right now. >> that's the second half of the year. >> >> are you negative after a move like today? >> actually very bullish? >> bullish for tech or apple? >> apple itself. >> technology more broadly.

>> technology more broadly. i'm not as nervous. i think there are names out there i would like to see. microsoft is one of my favorites, right. if microsoft for whatever reason ends up having a terrible quarter then i start to get nervous. i think the apple quarter wasn't terrible. as a matter of fact, i think it's very good. free cash flow, absolutely extraordinary. 92 or 93 i said it the other day at the show i would start toible in. i didn't nibble yet today. nibbled in facebook and got a little lucky in the post-market and apple i haven't nibbled yet, not sure why. it's amazing. >> think what we had in the last 24 house, apple report and the fed meeting today was monumental in the fact that the market is very concerned that this economy is slowing dramatically. all of these nasdaq names are names that were -- the places where you got growth. an economy where there is no growth. apple looking as if maybe their best growth is behind them. the fed saying we're not really telling you what we're doing and we have a lot of anxiety where markets and volatility have gotten down to the low 20s after being in the mid-30s so put it all in perspective. to me it tells me you have to find single stocks.

it's interesting to see that the rest of tech is getting a halo from facebook, but you can't trade these guys as a group anymore. fang may have worked last year, but i'm telling you. i agree with pete, by the way. apple, that's a hardware company with upside services company. >> you're not sure there's going to be a tech wreck ahead? >> talked midday, the market action looked pretty good, nice bounce off the bottom. i like to see us decoupling from oil. that hasn't happened in a long time. i wish it were the other way around and the market would be up. >> right. >> to me it sold off on the fed, and i think the fed basically said we'll see. which, i mean -- >> which is more uncertainty. >> what should they have said? let's back ourselves into a corner? that's what we're going to do. weren't going to raise now so the reaction to the fed was just -- i don't understand it at all, and i think that's what took down the -- the nasdaq with it because the momentum market -- >> all about the fed. really truly about that. we've been running and we didn't decouple from oil until the fed.

>> sure. >> the second the fed comes out, suddenly everything is a sell from biotech on down. >> netflix was down 4% before the fed so leadership -- >> and boeing was down. just those names alone, the rest of the market was actually moving very well. select names that were actually down. >> yeah. >> i agree, it was a lot about the fed, but this is a momentum -- this is a reading on risk appetite post-fed meeting. i mean that's what we saw in technology and why we saw biotech as one of the weaker subsectors within the nasdaq here. >> as karen said, i think they have already painted themselves in ain core, unfortunately. that's what the market is somewhat reacting to, the fact that they painted themselves n.specific stocks talked about this after apple and downstream, how do you flay? one. names we did mention was texas instruments. we said to the extent that you sea weakness in texas and you buy the name, look at the texas report a minute ago, solid quarter, slight miss on revenue, slight, but you know what, that stock is trading up a percent and a half, 2% in the after market.

i think can you stay with that name. >> one quick check on facebook because it's surging in the after-hours session, facebook and paypal because that's also surging. are they outliers, or are they symptomatic of technology? i mean, are we in for better times ahead? >> no, no, doesn't change anything. think of the chip company and qualcomm's quarters and what they said in terms of shipment and guiding down and very conservative and guiding down 20% plus. you have to look at this stock by stock. facebook is a very good story. netflix to me is a story that absolutely should have been sold last week before we saw the others, even last year before we saw the numbers. we're in a place where the momentum names in the biotech is another case of that, there's a lot of momentum storld up in that. that trading action today is not good. >> again, more on facebook coming up. the conference call is six minute in. we're at the after-hours session, highs up 9 cans. other next guest says to buy the pullback in technology and let's

go to ari wald. >> for long-term investors we think the losses, like the weakness we've seen today, is a terrific recall opportunity to start legging into the market. here's what i'm seeing in the charts. let talk the nasdaq 100 here, and i think one of the great indicators really shows the internal participation in that index. when you look at the number of stocks above their 200-day moving average and to show how oversold we've become and how many stocks have already been sold off, that number is down to 22%. one of the lowest ruledings on record. numbers don't lie. let me show you what that -- what that's hinted at before. here is the average performance out nasdaq 100, next four weeks as well. when you're below 25% in that reading as we are right now. the average gain over the next quarter 5.5% versus 1.5% during any other period. so the tactical signals are indeed favorable right now.

let's trade it. here's the qqq. the number you've got to watch is $100. that's the key support line. if you line up the uptrend connecting the 2014 and 2015 lows, support there. prior peaks, prior lows. some lows from the past summer, we think this is where we're carving out a base. i think you play it in the range. on the upside though, a lot of resistance as you get back to 109, 200-day moving average and prior breakdown point and sell it up there. >> you're playing for that pount bounce to that level up there. are you saying that we've put in a bottom though? >> we're calling it a low. >> okay. >> but i think it's too soon to say it's the low. we think volatility continues through the remaineders of the first quarter and select areas in the market will continue to drag on the broad markets. won't be surprised if a bounce gets met with selling pressure. >> okay. ari, got to think it there. ari wald of oppenheimer which could be up 10% here. >> the thing to be careful, ari is talking about numbers and talking charts and specific

levels. a lot of other sentiment levels that people talked about, bull/bear, daily moving averages and how oversold stocks are and when they break down. stocks will be very oversold and can work some of that off pretty quickly and get oversold again so to say that stocks have gotten to a level where they are so blown out that they can't get more blown out i think is something you have to be really careful about saying. >> going back to the s&p. not saying anything dissimilar. 1780, as we've talked about. carter talked about that being a level last week. technically if you look since last tuesday, market has pretty much everything had should have done on a technical basis. today was obviously very interesting. the reversal today was powerful. oil seems to have stabilized though i think pete would agree with this. the fact that the ovx is still north of 65 or thereabouts leads me to believe there's still pain there. there's so many cross-currents, 1780 s&p, bounces from there. >> the two biggest issues i look at right now, look at the volatility index, look at 21, too high. has to get below 20. this thing has been trading in

the mid-y 20s for quite some time. sold above 23 and the ovx in the mid-60s. absolutely too high. that's why there's still pressure. energy is still under huge pressure and with the volatility where it is right now doesn't mean we can't go up here and there 200 points, but certainly means we can see the 200-point moves. >> one of the oldest dour components is sounding the alarm on global growth. what that means and the fed sent shock waves through one part of the market. what this means and how can you protect itself and facebook surging in after-hours. julia boorstin just spoke with ceo sheryl sanberg. more on that when "fast money" returns. pall can a business have a mind?

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welcome back to "fast money." a very tough day for boeing, falling nearly 9%, trading below its flash crash lows, having its worst day in fact in more than 15 years. this plunge comes as boeing guy guidance for 2016 this fell well short of expectations saying it planned to deliver far fewer commercial jets than last year. guy? >> my problem with boeing is not

the quarter because the actual fourth quarter was actually outstanding. on the eps side forget about it and even the revenue side they beat but the guidance side was lousy. okay, that's nine. where were they last week? i believe it was thursday when they made a comment about their cargo planes being disappointed. never made any mention of this which i had to believe they knew last week. maybe it's not a big deal, maybe it is. benefit of the doubt. maybe they had to wait until today. boeing is now i think even with the guidance, it's gotten to levels where if you're a have investor i think have you to take a look my biggest problem with them is they didn't fess up to what they said today last week. >> seems weird. >> well, i don't think they actually have a duty to do that. they have a duty to not disseminate that information unevenly, but i don't think they have a duty to disseminate. i agree. if you're out there talking you might as well add in the bad news but i actually value investors, i don't find it attractive. >> why? >> because there may be -- we may be near a peak earnings and

multiple -- you know, is multiple has to come down, peak earnings and peak militariles. >> i thought the margin was fine though and these guys raised their backlog books, you know, $ $420 million in a place where they are buying back 14 billion shares. you've gone from 1455 down to 115 and you're as a major tech level in the stock and major support level. i think this is a stock that's way oversold. to me very, very attractive and very fundamental underpin pentagon and an order book that gives a lot of defense. >> the low toushd the flash crash low in case all of you are out with the flash crash notebook. the s&p bioteak etf, falling lower today by 5% after an already low week. a slow of stocks with a sleep loss and one name not mar tis

baiting in the selloff was biogen which soared on strong earnings. it had been up by as much as 9%. >> they put the an absolutely extraordinary quarter and total sales up 7.5% and the multiple sclerosis area, that's where they make all their other areas, hemophilia very strong and look at the alzheimer's expectations in the pipeline, that's something else so there's a lot of reasons to be very encouraged by biogen, but when you look at the ibb, xbi, any of the biotech indexes, the reason it's important is look at where gilad traded. traded the way it did down to the downside 3%, 4%. the reason it was heading south early, the attorney general, in massachusetts, all of this -- this is becoming a huge issue. the presidential candidates all weighing in on this. that's going to weigh in on these stocks for a while. i think it does create opportunity, but when that opportunity arises, i don't know because the problem is it seemed like it was just hillary and then bernie sanders, now you're even getting it from the

republican side and this could go on for months and months and you have to be very careful. >> pile-on effect. >> absolutely. for a long time those indices were just ripping on any kind of -- any kind of consolidation, but i totally agree with pete. we're not at the end of this bad, you know -- >> the bashing could continue. >> the bashing absolutely can continue. valueians and names like that makes you question the whole model of coming up with a drug and getting obscene pricing. you have to wonder how are they not ratcheting down the whole space more? >> this is where i think instead of having tech wreck i think it's biotech wreck. gilad has been cheap and cheap for a long time. this stock is dirt cheap relatively itself and peers and continues to go down. we're talking about levels in the market and guy started talking key levels for the s&p. i mean, 280, 285 on this thing. it had to hold that. i'm not saying it can't come back from this, but to me you're setting new lows in a stock where there's a lot of momentum. >> i don't want to pile on gilad because it's not pile on gilad

dad. but there are questions about what it has in the pipeline. going to come up on very tough comparisons with i don't know what. >> always been the issue. once they cure hepatitis what happens? that was years ago and they fought through. to pete's point, the attorney general of massachusetts making comments about if you don't lower the prices you're going to face legal action, think about that, where that came from, i don't know. doesn't matter though, because it's only going to get ratcheted up. when does it stop? pete said it's hard to say, but if you have the stomach to sort of put a gilad away and that's not where the show, is by the way, i think you'll be rewarded. >> it's an easy thing to pile in, from the political side it's very easy but i don't think any of them have advisers that really explain to them exactly how drug pricing works and some of the savings that go along despite incredible expense. people just don't really think through this whole process. all they look at this is a $100,000 drug. the reality is --

>> those are garbage comments. >> i agree with you. >> take a look at this versus the ibb, much more the larger cap biotech stocks and the biogen. >> which should be safer. >> which is not -- the xbi which is baxalta and others. so it's very different. >> you want to be in the big caps here. >> you want the ibb. >> want one or the other. >> what's the rather. >> >> ibb over the xbi. i think that's a case, who is selling netflix, the same people selling the ibb. >> coming up, facebook shares surging after smashing earning expectations. we'll hear from ceo mark zuckerberg on the blowout quarter in his own words. and las vegas sands and is there a bottom in for macau?

here's what's coming up on "fast." ♪ oops i did it again >> that's what traders are saying about janet yellen and the fed and it's causing chaos in one crucial part of the market and something is happening to shares of tesla and it could spell trouble for investors. >> i couldn't live with my level. >> we'll tell you what it is when "fast money" returns.

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welcome back to "fast money." las vegas sand shares moving high, the call just wrapping up. cnbc's morgan brennan with the details. hey, morgan. >> reporter: hey, melissa, that's right. las vegas sand missing estimates but the casino operator announced it's increasing its quarterly dividend to 72 cents per share, why the stock is higher in after hours and on the conference call chairman and ceo sheldon adelson stressing the operator's commitment to, quote, his favorite subject, shareholder returns. >> now on to my favorite subjects, the return of capital to shareholders. re-remain committed to hayne tank our current dividend programs at both las vegas sands and sands china. and we remain committed to

increasing those recurring dividends in the future as our cash flows grow. >> so adelson also discussing macau at great length. that's the biggest business for the gaming operator, and, of course, as we've seen for quite some time now, gaming revenues in that region have been plunging, but adelson saying he does see, quote, stabilization in gaming revenue trends. vip rolling volumes actually increased 5% from the previous quarter, also despite the downturn in luxury in retailing in china, revenue in macau grew in 2014. he estimates one in every six operators in macau are actually seeing a bottom at this point. also interesting, talks about las vegas where he's very positive about growth, forecasting that over -- casinos there could pull in over $400 million a year annually but says that there is softness in the high end in las vegas right now as well, and he says that, too, is emanating from weakness in

china and asia. back over to you. >> morgan brennan, thanks so much. i think that in that clip he said yay dividends. >> he did. >> that's rare on a conference call. >> yay anything. that's rare. what do we make here? >> i'll tell you what for vegas sands. first of all, very free cash flow generative. indications are in macau it could be up 3%, that could be amazing. gaming revenue. a lot of people worry about all the pressure from the policy-makers in china on macau. 108 billion went out of china in terms of capital flows and only 2 billion in macau. not going through the gaming system which makes the policy-makers happy. i think the worst is over. be careful, they are objectically cheap. >> see that chart there, that side of tim, the side slab as we

call it in the broadcast with the quotes of the stocks which may tell the whole story because in the after-hours sessions we're seeing more reaction from mgm more levered to las vegas and towards macau and the most in the after hours on these comments versus wynn resorts which traded lower and empel. >> what stock can you get the most bang for your buck at these levels? >> wynn and lvs, both bottomed out in october and had huge bounces, subsequently traded down to the levels a week or so again. with the short interest in wynn, 23%, 24%, if you're looking for a trade i think wynn is actually interesting. i think wynn bounces in earnings. >> i've got a position on wynn. one of them is adelson talking about this turn potentially that maybe we've bottomed. >> one out of six operators have bottomed? >> in macau. >> we'll see how the whole thing works out.

i love the fact that steve wynn has been putting his money where his mouth is, buying twice in the last month and a half. huge sums which is why i'm back into the stock and i believe in steve wynn and he's been right in the past. >> he's bought 1.1 million shares in the last month and his total holdings are only 11 milli million, bought 10% additional hold. >> that's commitment. >> he's a fan of the show, by the way, steve wynn. i'm telling you. >> why wouldn't he be? >> who isn't, that's the question. >> the list is long. >> right after the break, the latest from mark zuckerberg on facebook's competition and the quarter and much more as the stock is spiking in the after hours, up more than 8% and another round of big tech on deck. microsoft's, guy's favorite stock out with earnings after the bell. why traders are expecting more than a 6% move in the stock and the back of the report. much more "fast money" right after this.

tomorrow, two tech titans and two ways to play. facebook and alibaba.

welcome pack to "fast money," the dow selling off sharply following the fed's

minutes ending the day down more than 200 points, s&p down 1% and nasdaq for than 2%. apple fell 6% after its earnings report last night. here's what's coming up in the second half of "fast money." the man who called the train wreck in high yield is back with us with an even bolder call. bank of america's head of high yield is here with us on set. plus, we've got some big tech earnings ahead, google, microsoft, amazon an gopro still yet to report. which named traders are getting bullish on later this hour. but, first, let's start off with facebook soaring in the after-hours special. are julia boorstin is monitoring the conference call from l.a. what's the lateest? >> reporter: mark zuckerberg talking at the top of the call about facebook's growth all around the globe and the potential ahead. even dropped a hint about the new bigger role video is playing and could continue to play for facebook. >> now 100 million hours of video are watched daily on facebook. we've opinion testing new experiences like suggested videos which enables people to

discover more videos they might be interested in. we're also exploring ways to give people a dedicated place on facebook for when they just want to watch videos. >> reporter: we have to wonder if that could be a threat to youtube. before the conference call i spoke with ceo sheryl sandberg said the upside surprise was shifting more money into advertising an american rabble result and the ability to buy across facebook and instagram and also talked about the value of growing video views. >> consumer viewing of video on facebook continues to be really strong in our platform. 500 million people are watching videos every day. and in terms of our business that creates real opportunity for us because we want the ad formats to match the format of what consumers are doing so consumers consume video we have an ability for marketers to use that format. >> reporter: the cfo was just on the call saying the price per added facebook has increased 21% and a number of ad impressions has grown 29%.

he did warn though that the company is expecting some more tough foreign exchange rates, and he also said they are coming up against tough comparisons ahead simply because the company has been growing so fast. returning to the call, the q&a session started just seconds ago. >> julia, thanks so much and the after-hours is that right, you saw right, up 8% in the after-hours session, remarkable for the company. let's bring bob humphrey who is manage the red phone for us. what's sending the stock to its after session highs? >> a great report across the bore. users grew in all region. average revenues up across all regions and engagement is strong, 15% of mobile users. ad revenues accelerated so they are growing 66% now up from 57% so that's fantastic to see and mobile you heard was up 80%, and all this being done on margins that are higher.

60% margins or incremental margins, almost 66%. the reason why the stock is up though since the call is everyone was waiting for the op ex guide that came in at 45% to 55%, exactly what the street was looking for, almost a bit of a relief rally based on the number coming in where people wanted it. >> sounds like you're so bullish, bob, would you be inclined -- i'm guessing you're telling clients to buy the stock but change your price target, your rating, revisit it at least? >> recommending it to clients ahead of time. we'll go back and revisit it and throw all the numbers through and see how they come out but it sounds like a very strong koran across all regions as well. seems like they are really executing extraordinarily. >> obviously ads are terrific. at the same time a lot of people are waiting for any sort of hints on monetization of instagram or the what's app? >> they were saying they were

monetarily ecreative and we'll see this throughout the year. a big focus because it's all incremental or new revenue, a new greenfield for them to talk into. >> you've got an estimate of more than $2 billion in revenue from instagram to roll it out to all its users. what time frame for its users are you looking for? >> that was to '017. >> bob, check back in on the call, bob peck of sunstrust manage the red phone. twitter is seeing a halo effect in the after-hours session. >> as is google which i think would be a direct comp here. obviously you talk about -- we'll see youtube on monday to get a sense of that. i think it's up $17 maybe in the after mark as it should. that was impressive though. i do think facebook has earned some goodwill the next time they go out and spend a lot of money, right? >> true. >> investors get upset -- >> shocked at what's happened.

>> and they -- they should get credit for doing some things even though it looks expenseive. >> what's your take? karen mentioned google. does this mean it's good for their ad revenue or does it mean facebook is taking away from google, maybe somebody else? >> from what i can tell those two move in tandem. somebody else might be letting the wayside, not google or facebook. i've been wrong about a lot. netflix the biggest one and facebook we've been pretty steadfast. you said it's a big move in the after markets. i would submit it should never have been below in the first place. given this quarter i don't think seven times earnings is too expenseive. >> sentiment-wise, i think guy's been bullish on this. i'm not even going after anybody on this desk, a lot of people that have been saying in the market the sky is falling and this should have been the number one target. just to be clear, real stocks are actually trade, and i think this desk has gone out of their way to talk about the stock in a

positive light. when you look at facebook, what they are doing from an advertisers' perspective they are getting realtime awareness of how their ads are having an impact and getting transaction data which sets them apart. the scale that goes on, don't even know the size of digital ad and from a stocks trading perspective, a lot of people are buying facebook as a media play, guys that are not necessarily dedicated to this space or crossover and i think it's giving the stock a lot more life and a lot of reason to actually trade higher. >> the emphasis in the conference call on video is more like a media play. facebook is up almost 13%. what do you do with the position that you entered in just prior to earnings? >> out by friday. >> by friday. >> just because the market that we're in, the volatility of the market we're in. take this out. >> when would you get out? >> three minutes before the close. >> wow, that's "fast money," people. >> but when you look at the video, that's the thing that really does stand out. look at what's going on and the price power they are talking about as well. bob was obviously talking about the ad pricing and how they were

able to jump the 21%. when you look at what this company has done and they stole instagram for $1 billion and paid 2 billion for oculus which everyone questioned. that in 2014, not that long ago. how are they going to be able to deal with that in the pipeline and i keep bring up those words, guidance, how is the pipeline looking, everything from instagram to oculus, what's up? and messenger and when you look at 900 million, 100 million at messenger, it's unbelievable what they have been able to do and everybody was so skeptical about zuckerberg, but he is executing. >> okay. and if you're just tuning in once again facebook shares in the after hours session close to after session highs up 13% and we continue to monitor the conference call. federal reserve chair janet yellen failing to calm investors. a top bank of america strategist telling us why the comments could be a tipping point for the market. that's next. plus, shares of tesla taking a hit, down about 35% from highs.

is it more pain to come to the stock and the traders telling you whether it's time to j ump in or take off? much more "fast money" still ahead.

welcome back to "fast money." since the fed raised rates in

december the market for riskier bonds has gone down, way down and the head of high yield strategy with bank of america is back with us. it says in the prompter and with a beard though he had had a beard the last time he was here. >> really, he's got a beard. >> good insight by f-fun. >> so you say there's more pain to come. in what fashion? how deep? how bad. >> have you heard the vuca before, volatility, uncertainty. >> did you make up that word? >> no, but it's an uncertainty and the market treat it had as a statement, think about it. for those who thought we would be dovish i think she sounded a bit hawkish and left more on table and for those who thought she was hawkish she sounded a bit dovish by acknowledging global concerns and the impact would have on employment and inflation and consumer, and i

think these sort of uncertainties will add to the volatility and more ambiguity and i think that's going to continue to hurt markets at least until march. >> where in the markets will we see the most pain? >> as we sort of look ahead and think about, we have to define whether or not the next few months or next few weeks or next year plus, right. i think if you look across risk assets in general, and that includes all risk assets, i think it's going to be hard to overcome a lot of volatility, both domestically with the fed as well as, you know, globally with china and commodities and so on and so forth. >> let me ask you something. i attribute the same to alan greenspan, don't know if he said it but liquidity is not at financial term but a psychological term but if we're in a state of psychological uncertainty or fear. >> yeah. >> do you see the hyg or the markets underlying the hyg getting a lot less liquid and therefore seeing a lot more downside? >> liquidity is a big issue in the market and will continue to be a big issue, dealer balance

sheets and inventories shown tremendously post the financial crisis the buffer no longer exists, if you look at bid asks, the number of bonds trading, they have slunk so liquidity will continue to be a big concern. as you get outflows from mutual funds, from retail accounts including the etfs you'll see gap year and gap year price movement going for both on the downside and upside. when do you have bounces because you will have bounces. i agree 100. you'll see a lot of liquidity. >> more accessible to viewers at home, but is this a no-touch market because of the gaps up and down, sore this a short in your view given this vuca view of the market? >> vuca world. for the next 12 months or so i would straight out say that i would not want to be long high yield at this moment. as credit tightens and we expect credit to continue to tighten and banks are tightening lending standards that's not good and the economy runs on credit. >> that's the key question. let's talk about financials and put this into context because a

lot of people think financials are selling off because of credit concerns and something else you said which is important wall street has shifted the risk from the street over to the buy side. >> that's right. >> so ultimately i think the street is much better insulated from big dawedowns and downdrafts in all of this paper but i think they are making less money because the business is changed. they are not lending and tightening standards on good companies who were probably getting loans last year. >> i think you've hit the nail on the head. i'm not worried about an '08 financial crisis, bank balance sheets are in good shape and consumer balance sheets and corporate balance sheets are in great shape. my yield, we're at an all-high high. debt to ebitda. so i agree. there's been a risk transfer to the corporate sector and to the buy side out of the banks, and i think that's very concerning. >> all right. michael. we've got to leave it there. thanks so much for coming by. >> nice beard. >> you and your beard are

welcome back any time. >> guy? >> let's go to -- got a jim carey thing going there, but better looking. >> right. >> look, i think energy, we didn't talk about that as a component of this whole thing, as long as energy stays under pressure the thesis you have a high yield it plays into it as well so i agree with everything he just said. >> when we say high yield is it energy high yield or everything high yield and that's the differentiator because it's not everything in my opinion high yield. it's the energy specific that's the most concerning. >> other parts of high yield. >> because there are other parts that are still getting 6% and 7% that aren't energy that probably aren't something that you're concerned about to the same level you would be in the energy space. >> high yield is going lower. i think simply -- again, i'm not someone saying the sky is falling, i think prices and high yield have to go lower. >> i think this is '08 in energy. >> with no fed to help. >> okay. still ahead, traders are getting bullish ahead of microsoft's

report tomorrow. all the details straight ahead. plus, tons of after-hours action from vags, las vegas sands, paypal and ebay. we'll have the latest right after the break. you're watching "fast money" on cnbc, first in business worldwide.

welcome back to "fast money." time for a little businesskill. tesla's shares closed at its lowest level since april 2015, decisively below 190. its low, 52-week low is 181 and change. >> right, and we talked about that way back in april. we said, you know, if it can hold 180 level it should get a decent bounce and you subsequently saw. it made all-time highs after that within a dollar or two. how do you trade it now? we've talked on this show about 225 being the pivot point for this stock. that's actually held true. pete will talk how to play it with options. if you want to play individual stock, into earnings, i think they rub on feb 10th and own it against the low you just cited, 180. >> aren't they expense sniff. >> incredibly expensive, and it makes sense. the volatility in the market is generally high. a stock that's been absolutely slaughtered and that will drive volume tilts high. one of the stocks where i think you've got to be very, very conscious of where volatility is

and apply volatility when you're buying. if you owned the stock in the 200s and you were buying protection to the downside you've saved yourself because volatility was low. right now it's extremely high. >> i think this is such a no touch in the context. if apple is a hardware company, this is not an auto company. >> it's a car company. >> what is it? what do you have it at? >> what do you think it should be, more like a gm or ford? >> talking about deliveries. they are not making. talking about pushing out the time line, yes. ultimately this is a stock multiple does not fit what the underlying business is. >> quickly, if it does go through 180, then it gets messy very quickly i think. >> yeah. >> if it holds 180 you can have a similar move. again, it's knowing your parameters and what you're trading against. >> meanwhile, let's get some other earnings movers. seema mody at headquarters with the details. seema? >> take a look at shares of paypal up 5% after hours, the company posting better than extent pected quarterly results, the second time the company has reported as a stand-alone

company since parting ways with ebay. the company's 2016 guidance coming in line with estimates and they unveiled a $1 billion stock repurchasing program. still down about 6% since splitting from ebay in july. now, let's take a look at discovery financial, down after hours. the company missing fourth quarter estimates. the company blaming soft growth in its credit card business. discover says it saw strong student and personal loan original nations in the quarter, but credit card loan growth was at the low end of its target. the stock down 5% after hours. melissa. >> okay. seema, thank you. >> karen, which do you trade? >> oh, you know, can i say american express? >> sure. >> absolutely. >> i mean. >> off the board for 100, chuck. >> for paypal as well as discover. >> it's gotten absolutely crushed. i think of it as high quality name. clearly had some issues and the costco thing is huge, but the valuation there i think is just getting ridiculous. >> yeah. >> how about paypal? big, big move in the after hour session. that's not one you got into three minutes before the close.

>> i would have loved to have been involved. not involved in that name at all. impress whaf some of these companies have been able to do after some of the splits. watching it time and time again. huge year last year for splits and carl icahn is shaking everybody's tree around aig as well. >> when i think of paypal i think about why i don't want to own ebay. what is ebay? >> what's left? >> that's the first thing. >> it's a marketplace. >> it is a marketplace. >> and when we talk about paypal we're talking about the ability for a company to operate in places where credit isn't as strong. that's why the people have emerging marks, has much as you want to think the consumer is imploding, they are actually consuming and the bigger point is leapfrog technology, paypal can do that and they continue to grow around the world. i think that's a stock you own. >> guy? >> if you look at the end of septemberish, paypal traded under 30 bucks and bounced. saw a similar move over the last couple of weeks. seeing the bounce now. much like the stocks giving you something to trade against like tesla we just mentioned, against $30, i think you trade it long side. >> microsoft set to report hours

after the bell and the options action is expecting a big move. mike with all the action, mike? >> looking at a move that's 5.6% in the one-day average and that's above the average 46.3. bearish ones, the most active options were the february 56 calls, nearly 5,000 of those traded for about 43 cents. those would be bushel bets that the stock could be more than 10.5% to the upside by february expiration, about 1 days away. bear in mine, this stock was above 56, less than 20 trading days ago at the end of december. i would say options kind of expensive so i might actually favor something using a spread if i was going to make a bushel bet here. >> tim, where do you stand on microsoft, nice dividend? >> great dividend. i don't think i need to own, it around 48 bucks. in this market the stock should ultimately be very defensive. talked ad nauseum about the cloud starting to move the needle, a company very

predictable cash flows and free cash flow generation. like it but not here. >> thank you, mike. friday is a full show of "options action." 5:30 eastern. >> you're back. >> i'm obviously back signature right here. >> i'm just asking, haven't done it in a while, holidays and stuff. because i love the "options action." it's a great show. >> we love "mad money" as well. want to know what's on tonight? >> where oil could go next and the ppg coach your portfolio with more green, find out next on "mad money." coming up, we check in with bob peck once again on facebook and we get the final trade. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart

plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade.

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messenger and what's app and 30 times earning and growth around 16% a good buy. >> in terms of twitter seeing the rise in the after hours. quickly, bob, does it change your view on twitter? >> it doesn't. we think this quarter will be a challenging quarter. >> all right. our thanks to bob peck, the bob peck of sun trust. let's go around the horn here for the final trade. tim? >> talked about boeing, 2.5 billion, guidance was weak but the order book 432 billion, million before, boeing don't have to buy tomorrow. a good level. >> pete? >> like the farmer names, going right back to merck, we saw activity, activity for weeks and i think this name goes higher. >> karen. >> bank of america, i think it's as ridiculous levels here. i like it. >> guy? >> love pete's georgetown tie. a lot of people don't realize, want to get a close-up on that. hoyas, that's a nice tie right there. >> texas instruments. >> oh, my gosh. >> talked about it last night and said don't fade the move

lower. got to buy that stock. look at the quarter. goes higher from here. texan, gets you on. >> that will do it. >> i'm melissa lee. thanks for watching. see you back here tomorrow at my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you a little money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. it's the checklist, stupid. the one that refuses to let us sound the all-clear. the one that doesn't allow for mistakes like the feds