week? >> i think they will try to resist that. does the fed go next week? >> don't want to surprise the markets at that rate. >> thanks for joining that. >> that does it for us on "closing bell" today. "fast money" begins right now. "fast money" does start right now. live from the nasdaq market site, take a seat, guy. >> i'm sitting. >> overlooking "new york times" times square. traders tim seymour, steve grasso, dan naptan and guy adami. bad news for apple from a new hack to a new fine and does all the noise make the stock untouchable? the details and are the f. a n.g. stocks on the brink of collapse and why the biggest momentum names could soon be out of steam and when she sauks, wall street listens. one of the best minds on wall street, abby joseph cohen is here with a major market call. the fifth straight day of gains to the dow and s&p thanks to energy.

oil selling at its highest level all year taking a number of organize stocks along with t.chevron and exxon leading the dow higher while murphy oil led the s&p and a huge spike in the metals and mining names, vale, rio tinto and can that be the fuel for what has been so far, at least in february, an unstoppable market rally, guy? >> if the energy market continues to go then the answer is absolutely. the materials raggi, there's a number of different reasons and tim can speak to some of the chatter we're hearing out of china. the energy move has clearly lasted longer than i thought it would. the one interesting thing was, and dan can speak to the other side of this, but ovx was higher on a day that crude was up significantly. now we saw this on the other side a few weeks ago when the ovx got crushed on a day that crude was lower, so maybe it's pointing to at least in the short term a bit on the top. the energy market is absolutely

lasted longer than i thought, but this movement in some of the mining stocks for me is a little accelerated. >> both the moves in energy and materials. i think they defied a lot of people's expectations. >> wasn't that accelerated on the way down? i don't know how you can say things are even crazy here if you think about where these things went. you have to assume there's some fundamental underpinning and on valuation i have to say a lot of mining stocks aren't cheap and take a look at what china did. they are rolling back major capacity. metric tons of steel and iron ore they are pulling off line, exactly what you need. i know china is not growing what they were doing before but much of the last i would argue nine to 12 months has really been about excess supply. no more supplieses excess supply than iron ore and that's why such a rally. think about cleveland cliffs and balance sheets hanging on for a dear life. i'm not saying go to 180 on iron ore, go to 50 or 60 bucks where we are and that's the reason. >> enough that has changed in the story now to make it

investable? >> i don't think enough has changed in the story and i do still think you're seeing the unwind of covering the shorts and from what i heard from speaking to accounts today is that they can't get the liquidity in the underlying names. they are actually reaching for the commodity. >> if you're bike oil, if you're buying copper, if you're buying iron ore or all these different things or the underlying stocks, you just don't have enough liquidity in the names and now you start to reach for the commodity which just becomes a cyclical thing. you buy both and buy the stocks and the commodity and the whole space and how long can it last? until these guys cover their shorts and look what tim said, look what they come from. we had wti cut in half. >> and i guess i'm really confused and our rec viewers would know i'm confused a lot and what's going on with china an over the weekend. last week we started this week with the capacity cut and china said they are going to take 1.8 billion commodity-related jobs

offline here so a reduced capacity and the message out of the five-year plan this weekend was talking about fiscal stimulus and it will be debt-fueled fiscal stimulus. seems like a big round and around here and they are just kicking the can down the road. to to me it doesn't make a whole heck of a lot of sense. sounds like a big mumbo-jumbo out of the chinese. to tim's point, up 100%, 50% or 100-ins last month or so, why is it different? it's different because the stocks are down 80%, 80% over four years, know what i mean, and as growth was slowing chinese gdp was in double digits when stocks were at at all-time highs and in a lot of ways when you consider the fact they are growing at 6.5% or lower for the next few years, five years, maybe it's about equilibrium. i think we've gone way too far too fast. >> went way too far in one direction and came back too far the other. what's going on? i get back to the simple question. for people short hag market or playing for a black swan event in credit, can you outwait the chinese government and central

banks? this is a very painful time for people that suddenly said oh, my god, i think everything is coming to an end or i've got to get out of the names or i've got to push down on mining companies that i don't know a lot about. >> what does this mean in terms of your positioning with mineing? >> i've done a little bit and faded a couple of names. are i want to get in lower. names like bhp billiton, rio tinto, best in breed, best in cash, free cash flow againtive here and these are companies you want to own. iron ore should not have gone to 36 bucks a ton, 50 this morning, even if it sells at 60, at those prices you own these games. >> the gold market, gdx continues to real. it's getting caught up with the rest of the space, absolutely, but the gold market continues to rally to. me it defies some of the logic. we can talk about maybe weakness in the dollar is part of it, but i think there's more to it right now. the gold market should have sold off with the equity rally and the s&p 51810 to 2000. it hasn't done it. wasn't to go higher.

>> gld, a lot of things seem to be overextended. ecb this week, i think you see a selloff after that. >> oil equities, while we've seen a 10% move in the energy sector overall, we've soon some much bigger moves when you slice the sector up a little bit. for instance, the osx is up like 17% in the past month or so. i mean, we're seeing real pockets of strength within not just the integrateds but the services companies. >> i think tim's point is a correct one. sentiment got so poor. people were pricing in bankruptcies and the a lot of really bad stuff. i'm not sure that's off the table. seen a lot of huge moves in industrial commodities in the last year or so. if crude goes back and tests 30 again, you may have high-yield credit going nuts and all those things that got people panicked into early february happening again so if you're looking what i need to do, the xlb, the etf that takes the materials, i think hyg has had a massive run off of 75 back to about 81. i think you probably short that. they are all still in pretty

nice downtrends and unless you think we're out of the woods in everything that you're freaked out about a month and a half ago has abatd i think there's another short trade. >> the question here is could the rally in oil actually be bad for stocks overall. dennis gartman of "the gartman letter" joins us now. dennis, didn't really help us or the markets when oil went down in terms of the positive -- potential positive impact. will it hurt us when it goes up? >> well, it will, might and probably should. if you take a look at longer term perspectives, take a look at longer term relationships, crude and stock prices move in contravention, not in correlation one to another. over the course of the last three points we've tend to seen them move in absolute correlation but that's just something that's atypical, so if you continue to see crude oil get a good deal stronger, and i don't believe it's going to happen, i doubt we'll be able to push wti much above 40. there's a lot of crude oil that can come to the market,

especially with the cotango as wide as it is, one-year oil at $45, $46, $47, and i can't imagine it would move much more than where it was now but it does go to $40 i think it would be detrimental to share prices. >> why would it be detrimental to share values, i think it would ease concerns about the energy market and paying off their debt. it would provide more fuel for the energy stocks and the markets would like it, no? >> no. if you take a look over broader periods, other one and two-year periods rather than two and three-month periods, the correlation between oil prices and stock prices is in contravention to one to another. that's what history has shown us over the course of the last 20 something years. last two or three months, been a different story. do i really think we'll get crude oil to continue to sustain a rally and get spot above $40?

no, i'm not really concerned about that happening. i think with spots rates -- with wti at 37, with brent at 38 or 39, i think everybody is happy at these prices. the contango is wide enough to make it profitable enough to hedge in the forwards. e & p people will be happy to sell one-year crude oil at $had a. the public will be happy because they will probably have a regular gasoline well under $2 for a long period of time. $37 wti is a nice price for everybody. that would be beneficial. $40 or $45 wti i think becomes detrimental to share prices. >> but dennis, hey, it's tim. the broader conversation we're having on desk is about the entire commodity space, and i'm going to make an argument that the entire commodity space has bottomed. guy even scratched his head on gold and people are doing that, too. i look at gold from a miner's perspective and the same reason why iron ore is going up, the reason gold is going up and so much capacity has come offline.

it's commodities, and doesn't that tell you people were more concerned about supply disruption and imputing that on the global economy and saying huh and now that these things are back people can look at valuations and say let me make a call on a company. >> timmy, your comments earlier about steel prices and iron ore prices having gotten to an overextended, a comically silly level a month and a half ago and now all we're doing is getting back to some sort of rationality is spot on, i think the commodity markets in general have all turned for the better. i've been bullish of gold in yen terms and gold in euro terms and dollar terms for quite a period of time and had a good year because i'm up like 13% because i'm happy as a lark and i do think that the commodity markets generally, whether it's the grain market, the steel market or whether it's iron ore or whether it's gold or copper have all turned for the better. i'm with you on that side. question. i think that's what's happening and i think we've seen a marked turn, because the monetary

authorities in the world continue, other than the fed, continue to be expansionary. i think the ecb will be that way and the bank of japan has no choice but to follow through on the same side. >> dennis, great to see you. thank you. >> good to be back. thanks very much. >> dennis gartman of "the gartman left. request "who buys what dennis is saying? the worst is over for the commodity complex in. >> tim spoke to that. i don't think gold is a commodity. i know that sounds ridiculous but the reason gold has gone up it's a bet against fiat currencies and got going in earnest when the japanese went to a negative interest rate policy. that's my view and why i think gold is rallying. the other stuff, i understand what's going on. i think it's a bounce within a structural bear market. >> come up, apple's mac computer facing a major hack attack. another reason to stay away from the stock? plus, are the f.a.n.g. stocks failing? why four of the biggest momentum names could be stopped in their tracks, and one of the wisest minds on wall street's abby

joseph cohen joins us with a call you've got to hear to believe. that's later this hour. you're an at&t small business expert? sure am. my staff could use your help staying in touch with customers. at&t can help you stay connected. am i seeing double? no ma'am. our at&t 'buy one get one free' makes it easier for your staff to send appointment reminders to your customers... ...and share promotions on social media? you know it! now i'm seeing dollar signs. you should probably get your eyes checked. good one babe. optometry humor. right now get up to $650 in credits to help you switch to at&t.

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let's get to john haar withdraw. >> melissa former new york city mayor michael bloomberg has announced he won't run for president as a third-party candidate. there was a lot of speculation about that. he explored the idea but when he said in an op-ed pose said he concluded he could not win enough states to get the 270 electoral votes needed to win the presidency and he said he thought the campaign with would only have the effect of making it possible for donald trump or ted cruz to get elected. he attacked donald trump of running a campaign that he said was the most divisive and demogogic that we've seen, that appeals to our worst impulses and this reflects the idea that if hillary clinton is the democratic nominee, mike bloomberg would only take votes -- on balance take votes from hillary clinton rather than the other side. mike bloomberg would be comfortable with her if she wins the democratic nomination. no third-party candidacy for

mike bloomberg and that's good news for hillary. >> apple sales appear to be come in at the low end of guidance, that economics off our top trade. cutting the iphone sales estimate and slicing its target to $27 billion and there was news on the mac attack. >> everybody wants to take their numbers down. annie hargrave who has been on the show does great work and it's 27% higher, right, and you have to ask yourself if this is in his estimation worst case scenario and it is, and you have a price target that's 30% higher, what are you really leaning against to the downside and i'm not saying you should race on by it and stock is going effectively sideways for quite some time and you have to keep it in perspective. downgrades the stock to a price

target. >> where is this stock? it's basically treading water. >> it's recovered somewhat. 98-75 and if you're going to put new money to work and i think let me be short-term because the overall market goes down and no one is immune to apple so you use that as a short stop. >> and i think you're going the analysts too many credit. i can count them on one hand who have holds on the stocks so everyone is going to have a buy on the stock. 25% to 30% higher hand that's just how it goes. >> the stock had a really surprising run and it bounced off, i know you've talked about it, guy, 22.5, the low, march 24th and acts really well in the low 90s and made a run. the problem that i have right now is i think these product announcements are really disappointment and i hate to use this expression, second half

story and people need a story that's new an exciting, not just the size of the screen anymore and china, guys, it really has to happen here. we saw what happened here last quarter, you know. i mean, this is a huge part, 25% of their sales and they need china to keep growing. >> next up, huge weekend for disney's new film "zootopia" beating the "frozen" record. >> that's no small feat to beat ""frozen."" >> you saw it four times? >> "zootopia" or "frozen." >> i think people who were worried about the cord cutting have sold the stock. i do believe movies can move the needle for them. it's about parks. >> yeah. >> the whole thing is a self-fulfilling cycle, see it in

the movie theater and then in the park. it all feeds the beast. disney is viable. i'm still long. >> piper jaffrey call, 24 new titles in the next three years. that's a big pipeline. >> tell you what, you have a lot more long-term visibility than with the branded content strategy that disney has. lucas is a long-term thing for them and "jungle book" one of guy's favorites, you model yourself a little after mogley. >> i dig him, yeah. >> if it's back to where was this thing trading on multiple at 22 times 2006 it's fair. >> it's funny. we had julia boorstin on the other day. we were talking about "rogue one" and the new "star wars" movie and i think there's a chance that things get saturated. >> you're the one who saw the most recent "star wars" how many

times? >> three times. >> you're afraid it's getting saturated. >> they have been home runs and what i'm saying is the idea of having a new "star wars" movie out every year or new "avengers" movie out every year, i think there's a potential it gets saturated. right now it's so fresh and they are doing so well off the two $4 billion acquisitions individually, at some point it's just going to be -- it's not going to be as exciting. think about the anticipation. >> this is like the first time anyone ever saw "star wars," a whole new generation so i do believe it will get saturated. i don't think it's even close. >> they control all of the distribution for these things. again, it's a branded strategy. they are delivering content. this is where the new media actually works for these guys and own it all the way through the chain. you've got relatively young kids. aren't they consuming more and more. >> 20 years ago super hero movies were a thing and didn't give a crap about them. and at some point we are again. they have a massive huge bet on this. they have it on the parks and apparel. >> you don't like disney.

is that the bottom line. >> got to love superheros. >> it has to go back. my view on disney has been very simple. the stuff that started taking it down in late august and the way people are accessing the t.dcontent networks, i don't think it can turn on a "v" and you'll see lower lows. went down to 86 and i took heat about that. >> the bottom line, lower lows on disney? >> i think we agree given the new world it's probably getting towards an expensive area, i don't know if it's getting back into the 80s but i do think it's getting back into the low 80s. >> still ahead, the f. a in. g. stock. >> what is in a? >> i know. >> facebook and netflix sitting out in the google rally. could there be more pain for these names? i'm melissa list. you're watching "fast money" first in business worldwide. here's what else is coming up on fast. >> confused about the markets! >> aghhhh! >> don't worry, one of wall street's wisest and most

respected minds abby joseph cohen is here with a bold call and exclusive and rare interview. plus, where are really people spending? >> that's as good as money, sir. those are ious. >> from fast food to retail, a deep dive into where consumers are putting their cash to work, later this hour.

welcome back to "fast mon " money." the tech darlings getting hammered, the f. a n.g. stocks all underperforming and our next guest says there's much more pain ahead. let's go off the charts with carter worth. carter? >> not a big day, all four names down and visa and names like it, and what we know is the following. two-year chart, sort of line, no line, yeah. line, no line. and what we know is that we have clearly broken trent. that part is known, and we also know that we have attempted to get back on trend to throw back. now, that recovery, here's the same chart looking at this recovery. it's -- even as it's recovered on an absolute basis it's been a relative loser meaning the

bounce has underperformed the bounce in equities generally, and that of the s&p so that's a fatal kind of thing which is to say not only are you still below your trend line but you're actually underperforming, even as you try to muster gains and then again down today relative to the market, so how to play this. this is a nice etf, it's the same exact chart. now while this has other names in addition take liesa and home depot and so forth, nike, starbucks, it's the same principal. high-priced and high-growth names that are breaking trend and have attempted to recover, but the recovery is feeble on a relative basis and of all the things that have ever been tested, relative performance is one of the highest and most effective. not good. >> carter, i'm curious because there are fund managers out there, even managers like karen who are invested in alphabet,

for instance, but do facebook and google act differently? >> if you were to look at the action from the january 20th low to the february 11th low it's poor on a relative basis and that's the setup and the problem for the market. we have junk names, if you will, whether you believe they are junk or not, spun up 40%, 50% and at the strong end of the market all starting to falter. not a good setup. >> carter, thank you. carterworth, cornerstone macro. >> on netflix you take the fundamental story and the domestic is getting saturated and doesn't meet the metric. there's so much competition in streaming to me. carter's charts make a ton of sense but i have to attack it from the fact that this company to me cannot fight off the competition. international won't be as strong for them. it's been so far but culturally it won't. >> anybody like netflix on the

other side of tim's trade? >> looks like it finally got its flooding underneath and traded over 100 and was looking great and gave it all back today. tim has been right. 95 has been a pivot point and gave you a major head fake and i will say google alphabet has not traded well since earnings. can't get out of its own way and that seems to be stock specific. >> they act well on a relative basis to the mark. i mean, most of them are unchanged on the year but carter's point is really clear that they are below the trend and lost momentum and i see so many charts that look like the ones and had a huge move higher and have come below the low-term uptrends and can't get to it and that's where the whole market probably peaks out at some point, especially if we can't get another leg going and i don't think it's the material trade. i don't think it's out of f.

a n.g. >> they are using that whole space as an atm, go back to the old school, short covering rally is over, they are going to run in and buy a stock like facebook. facebook will be the only one in the whole group that i look to buy. >> coming up, shake shack reporting earnings moments ago. that stock seeking on its report. we'll hear from the ceo about what wall street missed this quarter. plus, traders rushing into vale after they said they would uphold investors. is it time to get in on this much beaten down name? more f-money ahead.

welcome back to "fast money." the dow and s&p with the longest winning streak since october. the dow finished up 60 points. crude oil surged more than 5% settling at its highest level this year and that rally making energy the best performing s&p sector. here's what's coming up in the second half of the show. has wall street lost its apposite for shake shack.

earnings tanking after hours. what worked and didn't this quarter. plus, it's the one asian market that traders are betting is poised to break out. what it is and how high it could go and first throughout the week we'll be talking to some of the most influential voices on wall street. today we're kicking it off with abby joseph cohen. abby began her career as an economist with the fed before joining goldman nearly three decades ago. great to have you on the show. >> thanks very much. happy to be here. what do you make of the markets these days? if you had to pick out one thing that the markets are, is that anticipation of fed policy or the price of oil in. >> what we're seeing i think in this recent rally is that investors are realizing that the economic data for the united states are actually reasonably good. we've gotten good data reports, for example, on employment. we see, for example, as well that industrial production has been rising and durable goods

orders are all up and the internal dynamic of the u.s. domestic economy looking good, and i think that many investors are responding to that. >> why are we trading so choppily then? if what you say is actually true, that things are looking pretty rosy for us here in the united states, why have we had such a tumultuous 2016? >> 2016 isn't very old thus far, but there have already been multiple phases. you're absolutely right. volatility has been high and investors have been nervous about any number of things. one is as you suggested the likelihood of fed policy as it goes through the rest of the year. the second thing is that in the global economy things are not quite as rosy as they are in the united states and the third thing that i point to as an uncertainty which is always something that markets are not terribly happy with is the political prospects and what these various candidates might mean for the economy and also

for financial markets going forward. >> your s&p 500 s&p price target is 2100. i'm curious, when you think about the 2100 level and the elections, what sort of candidate, which candidate, do you think would be best for the markets? >> well, we have not been talking about which candidate is best in part because we're still a little bit early in the cycle. we've not seen full proposals made by all of the candidates. what i do find interesting, however, is that many publications and some investors are now turning their attention to that and so we'll be looking, of course, for who is proposing the policies that address the underlying issues in the u.s. economy, including the disappointing movement in median family income, the need for more robust jobs creation and also the improvement ongoing in u.s. innovation and competitiveness. it's interesting to me that

there are now some think tanks out there that have goinging begun to score the specific tax proposals and, of course, your viewers can check their websites to look at those numbers. >> sure. >> bottom line, mrs. clinton seems to have the most fullsome proposal that's been made thus far. >> in terms of investing this year, abby, you say u.s. stocks are the place to be. do you recommend that investors be -- i mean, what sort of allocations are we taking a look at because if you look at how the asset classes have performed this year, a strong allegation to gold would have been a great play so far. >> i'm not enthusiastic about gold. it's usually an asset that does well when everything else is doing poorly and with the likelihood that the u.s. economy will continue to grow, i think exposure to economic growth is the place to be, and the u.s. economy in particular because it's performing better than most other economies. within the u.s. domestic exposure, we'd be looking at

things, for example, consumer discretionary spending, including post-housing spending. once you buy the house, what do you spend the money on in terms of nesting and preparing that house to live in, also some collected retailers, and we also see that many families are increasing the money they are spending on things like travel and entertainment. i'd also point out that energy stocks have been very hard hit and with our expectation that nor prices, that is the crude prices will be moving higher during the course of 2016, that might be another place to be looking. >> you know, abby, last question here, some of the bears, anybody who has watched financial news they know you and you have a reputation on the street as being permeable. has there been a period of time when you've not been endorsing investing in u.s. stocks? >> absolutely. i think one of the interesting points was end of 1999, early

2000 your colleagues hat that time at cnbc referred to me as the bearish strategist on the street basically saying i thought that the valuations were stretched and then in 2005 and 2006 we raised red flags about consumer balance sheets and what that could mean for the housing market and the bond market. >> okay. abby, a pleasure to have you on the program. thank you. abby joseph cohen of goldman sachs. well -- >> i'll tell you what. what's interesting to hear her assess where the global economy and the u.s. economy go together and where people are not running from stocks. travel stocks, expedia, growing earnings and some have very high multiples. you're in housing, right? >> yes, i'm in kb homes, those stocks got obliterated and are

now on the way back. on the re tail side, if you have housing recovery, invest in home depot and we're probably heading into a recession so please keep those dividend payers really warm powder for yourself. >> a little psa from steve over there. >> you know, one of the things that's really interesting, warned their customers a decade ago. central bank has not declever growing its balance sheet since the financial crisis and my interest is globally. when you think about it, europe has not taken the pain and we know asia, tim said waiting out the wboc and sooner or later all of this has to come home to roost. know how this had to end here in the u.s. and had to end with a massive de-leveraging and really happening so far in your operation, just that simple and i don't know why you think that we should be able to decouple from that the way the rest of the world was not able to decouple from our credit crisis.

>> timing and equity credit, black swan event has proven to be possible and recession, steve, at a place where you better start the meter running because we're not even -- don't even have a quarter. last quarter was much stronger and people revised it up in hindsight and it had been the weak spot of the u.s. economy for the last three years, negative. looks like it's going to print significant. >> i'm stiller in vows about an inverted yield curve and stiller in vows about 2017. by the way, recessions happen. they don't -- they don't not happen because people don't want them to happen. they happen, it's a cyclical. it's going to happen and what i say, we're due for a recession and we're due for a recession. it's not if it's going to happen but when. >> 2100 on the s&p, if $120 and the question is does this lend itself to an 18 multiple and i would say no. more like 15.5, 16 and that's

where i get concerned and i'm assuming 120. if that's get ratcheted down obviously the whole number gets ratcheted down. >> the company said it would host the conference call next week to discuss fourth quarter earnings and 2016 guidance but is that enough to save the beaten down stock? two big earnings report and two big after hours reports. shake shack shares are tanking and we'll hear from both companies on what drove the quarter right after this. 4000 a. in less than a second. (speaking japanese) i can understand euphemisms, idiosyncrasy and complex metaphors. i know every detail of every public quarterly report in the last 20 years. and i'm just getting warmed up. hello. my name is watson. together we can outthink the limits of what's possible. welcome to the cognitive era.

. welcome back to f-money. two big after-hours movers. urban outfitters and shake shack. courtney, kick it off. >> urban outfitters, shares of urban outfitters higher in after hours trade, i think up by about 10%. look at that, more than 10% after ending the session up 1.8% ahead of those results. earnings of 61 cents per share beat consensus by five centsch the specialty retailer pre-announced fourth quarter sales which are just over $1 bill crop. comparable sales down 2%. the full quarter sales were about in line with the holiday results from november and december.

there was some extended weakness into january compared to the year prior because of the lower level of clearance inventory that was available. urban outfitters direct to consumer sales which includes the internet continue to outpace store results which have suffered from weak traffic and on the conference call weak apparel sales were blamed in 2015 on macro pressures. they are not taking on much responsibility for a lack of excitement in urban outfitters brand. now over to kate rodgers who is covering shake shack. >> same shack sales increased 11% in the fourth quarter with domestic changes averaging $89,000 in sales per week. the company reaffirmed its full year outlook with revenues between $237 million and $242 million and same shack sales are between 2.5% and 3% and same

shack sales were estimated at 3.1%. the growth miss is what's pressuring stocks. the company still plans to open up 13 domestic and company operated shacks this year and eight international licensed stocks and the stock continues to trade at two times its stock price and good news for chicken shack laughers. the successful sandwich is here to stay. >> we're excited to highlight the changes taking place. we launched the chicken shack at all domestic operated shacks and likely the most important menu addition we've made since shake shack began and while it's too early to know what it will mean for us system wide we are hopeful that it will prove accretive to sales, traffic, average checks and food costs. it's important to note that the chicken shack requires a little more labor so we do expect to see an uptick in labor due to this item. >> and moving forward due to hiked minimum wages at its store

the ceo says the company expects higher labor costs in the future. >> we believe that paying our team well will drive more sales, help us attract and retain the best people and reduce turnover and provide the opportunity to advance our leaders to even stronger places in their careers. >> back over to you, melissa. >> all right. thank you so much, kate rogers. this is something we've been hearing from a lot of different stores, whether it be retailers or restaurants, the higher cost of labor filtering. >> it's going to be a big deal. >> if you think about the places they have been most successful they are certainly in high labor cost environments like new york and big cities so we'll see what happens. i'm never going to say same shack sales in my life. any company that's making me do that you're out, and also interesting to hear how chicken is supposed to be the most important thing ever and we don't know what it's going to mean but it's going to be great, so anyway. i wouldn't touch this stock on valuation. >> a chicken shack skeptic.

i'm with tim on same shack sales. that's a big gimmick and we cannot cave in. >> are you giving in. >> i'm not a caver. >> i'd like to talk to urban, may i. sales growth 23% year over year and the inventories were down 8% year over year. why does that matter? it means their margins held up. with this stock not a big valuation 15 times forward earnings, i think this stock is actually a good quarter and actually goes higher from here. >> heard good things from am crombie, a private equity, maybe a takeout play, aeo, flat on year and sold up 15%. i think a lot of the moves are overdone at this point, and i think they were so beaten up in this segment and now it's time to add up. i'm still on that one. still overbought. i think the whole retail space. >> no, no, no. >> i'm down. i'm down and it's overbought now. >> i think you guys are wrong on the same shack sales. i think it's how they are

branding this company when you think about it. >> so they should call it same shack sales. >> i think it's about this brand. >> think about 75 stores. they have a massive runway here and they have 1.5 billion market cap that's 1.5% of mcdonald's. they had 1% last year, 1% of mcdonald's total sales so i think if you can get it at the right price it makes total total sense. >> is this the right price? >> you'll never know. the low what is 30, the all time low and the problem is they are 60% short interest and as soon as it goes down gets bought right back up. >> if you don't know does it make it uninvestable or does that make it a buy it and hold your nose and hope that it works out. >> down the road, this is a company that has 11,000 stores. >> when it's bought right back up. go back to the middle of 2015 at $90 something. the implied mark, the average over the last quarter has been 3% and down more in each one of those events.

gets bought back up when shorts have no other -- >> when you hear that it gets

welcome back to "fast money." valeant shares soaring 7% today as the company says it will announce its fourth quarter results and give guidance on a conference call next week and on our show friday a verrettias investment said stay clear of the stock so take a listen. >> i think right now the stock

is not investable because there's enormous concerns with vale ant's reporting so i think at this time there's too many unknowns. there are substantial risks. >> but soon there will be fewer enknowns with the earnings out next week so can we start thinking about investing in this? >> maybe there will be more unknowns. listen, had a nice move today. seen moves like this in the stocks since this started i think in august so i -- i would tend to say this is an opportunity to sell it if you were fortunate enough to be long it on friday. >> i agree. >> this is a name that a lot of people in it are saying get me back to 86 bucks and i'm out. i have to stay with this today. their core business model has been more than priced in. it's if you cannot trust any of the accounting that you obviously have massive, massive problems. take their core business and i think the increased discount rate has been priced in and at 67 to 80 bucks with good accounting i'd own it. >> for me i know what i don't

know and i have no clue on this stock so to me it's a crap shoot. >> now to one of the beaten markets. jap, shares of the ewj, shares down 6% in 2016 and some betters are banking on a big rally. dan in. >> the boj meeting is come next week on march 15th. one of the largest trades and predominantly in one trade in calls, april expiration when the etf was trading at 1140 there was a buy of 55,000 of the april 12 calls paying nine cents, about $500,000 in premium and it breaks even up at 12.09 on april expiration and i think it's important to know, like mel said, the nikkei, the largest equity market in japan is down 11% on the year and had a really nice bounce off of the lows but i'll put my carter worth hat on, five-year chart of the nikkei, we did flat line a little bit

and had another leg of all that have stimulus, the monetary and reform and the fiscal and since then, i mean, since they have really instituted negative rates we've seen the stock market decline and still down like said 11% on the year and it's approaching a very key support level. as we think about the ewj it does not track the nikkei perfectly and has had a really nice rally. this will also be the break even on those calls. here's the things, when you're buying out of the money calls you're thinking about a lottery ticket and it's had a big run and not how i would play further gains. i suspect this is a long holder of the ewj leveraging up in an existing long position. >> for more "options action" check out the full show, 5:30 on friday. coming up, the final trade, stay tuned. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop.

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final trade time, tim? >> actively trade the iwm. time to throw it back out there. short, small caps. too farrelltive to the s&p. >> grasso? >> restoration hardware down 50% year to date. keep an eye on this wlun. if it trades above 41 and closes there, keep an eye on it, three-day rule, buy it.

>> xlb, very wrong a couple weeks ago. i think you can sign it here. >> urban outfitters, see some upgrades and this thing goes higher from the levels we're seeing in the after market. >> i'm melissa 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 some money. my job isn't just to entertain but to coach and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. the equity markets can cure