are you guys ready? kids, are we ready? [ cheering ] christie, are you ready? >> i'm ready. >> christie rang the closing bell flawlessly today, including a very strong gavel, so i have high confidence. how about we count down from ten. ten, nine, eight, seven, six, five, four, three, two, one -- >> happy new year! [ cheers and applause ] >> great job, well done. thank you, ladies. thank you so much. it was nice talking to you, thank you so much. thank you. let's make it three years next year. >> we'll work on it. >> thank you so much. it was awesome.

"fast money starts right now. live from the nasdaq market site on new york's times square. i'm melissa lee. tonight on "fast," should the drug industry be more worried about a donald trump presidency? the ceo of allergan thinks so. he'll here to explain why in a fa"fast money" exclusive. plus donald trump sending a chill down corporate america today with this comment. >> companies are not going to leave the united states anymore without consequences. not going to happen. it's not going to happen. i'll tell you right now. >> so what will the consequences be and what could it mean for the trump rally? later, tech continues to tumble, now trading where it was before the election. that has traders hitting the buy button on some battered names. first, stunning news out of starbucks, howard schultz stepping down as chief

executive, he will be succeeded by the company's current president, kevin johnson. let's get to andrew sorkin in seattle for all the details. >> reporter: hey, melissa, i am in seattle. howard schultz, the iconic ceo and founder really of starbucks announcing plans to step down effective in april of 2017. he's going to remain at the company, we should say, as executive chairman and plans to leave what's considered the growth opportunity for this company in its premium roastery business, a big emporium in seattle that they've created as a model to take around the world. kevin johnson is howard schultz's hand-picked successor and will take the reigns of the company. he is a technology executive, long time experience working for microsoft under steve balmer, the former ceo of that company, then became the ceo of juniper

networks. he's been on the board of starbucks since 2009. he went into retirement in 2013 from juniper. howard schultz brought him back out of retirement to become the president and coo of the company as part of a succession plan. the stock has been down in the market, in the post-market this afternoon, after the announcement. it's unclear exactly why, in part because there had been a view at least among the biggest investors in starbucks, that they saw this succession plan coming. what you're going to be seeing from kevin, of course, lots of questions about how he is going to run the company, how he's going to run the company differently, whether he's going to run the company differently. having said that, howard schultz, as i said, still plans to remain at the company. also going to be involved in a lot of social impact work. his office is literally connected, right next door to kevin johnson. he plans to be a visible presence at the company. but of course all of this raises questions about where howard schultz is going to go next, if

he's laying the groundwork potentially for a political campaign. i asked him that question this afternoon, he said this is not about going into politics. he was asked that same question on the conference call today as well. that's the big news here. lots of questions, though, from investors about what the future of this company looks like, questions of course about its growth, about consumer foot traffic in its stores, and whether howard schultz -- without howard schultz. he'll still be here, about whether howard schultz is the steve jobs, if you will, of starbucks, guys. >> that certainly is a question. andrew, in addition to having kevin johnson around sort of waiting in the wings for this transition to happen, starbucks also recently named a ceo specifically for china. it seemed like they're preparing for a division in which there will be more division of labor in the company in a time when one founder/ceo wasn't going to be the head of the entire company. >> reporter: you know, they did this reorganization over the summer. a lot of investors started to think then that the day-to-day

operations, which had already been with kevin johnson for quite some time, that piece was already in place. as you've said, they've really tried to shift the management, if you will, of the company. again, it is a surprise. the timing of course is always a surprise when an iconic ceo like that comes on. we want to have you listen real quick to a bite from the conference call. this is howard schultz talking about kevin johnson. >> kevin's decades spent scaling global businesses will continue to help starbucks navigate this new period of worldwide growth and innovation. >> reporter: and we should tell you that howard and kevin are going to join us, we'll be able to ask them all the questions that investors have about this transition and what it means for starbucks. they'll join us on "squawk box" tomorrow morning at 7:30 a.m. eastern time. pretty early for those of us waking up on the west.

>> absolutely. i will see you then, andrew. >> reporter: i will see you then on "squawk box," it will be a lot of fun. >> as andrew said, the after hours session starbucks is down to the tune of 4%. look at this chart here, starbucks' chart was up 1,000% his first go-round as ceo. he stepped down in 2000, came back in 2007. when he was gone, the stock doubled. when he came back in 2008, he managed to jump-start the stock again. under his most recent reign, the stock posted a return of 500 pers500%. the question is now do you own starbucks without howard schultz? >> i own it now. i love howard schultz for his idealism. he's created a global consumer products company. they're not going to grow in the same way they are, but they have multiple channels of growth that

includes asia, they'll be double the amount of stores in china by 2020, '21. this change has been going on for a long time. it's a sad day for the company in that this guy is one of the great ceos in this country. as an investor, i don't run out the door. 15 to 18 times is what you're getting from these guys, you'll continue to get that aps growth. i'll stay here next year. >> karen? >> i agree with tim. one of the things that a great ceo does is create a great ceo successor or a plan, if they get hit by a bus or step down. it seems like he's done that. so to his credit, i mean, a lot of ceos love being ceo, and he's not that old, he's what, 62, 3. i think it's great that he can do it. down 4%, that's nothing. >> some might say this could be a good time to hand the reins over. if one believes everything about this trump rally and that growth

will be jump started here in the united states, maybe that is the time to hand over to the next generation of leadership. >> maybe. but the growth is really going to probably come from outside the united states. to me, howard schultz is still going to be there. i don't think you still starbucks because of this. it's down 4%. probably a buy down 4% if that's the only thing that you're concerned about, because this is very similar to having tim cooke with steve jobs there, right? it's the same type of thing. you have a leader that's, as tim said, one of the greatest ceos of our time at the very least who will still be the visionary, still driving the company forward, and the growth aspect. and then you have a seasoned operator running the business. i don't think that that's bad. >> i'm glad you brought up the apple comparison. that's a mixed comparison, because right after jobs died, apple's stock hit an all-time

high. now there's a period, is the innovation gone, has apple lost its way, stagnation? >> i'll take the other side, mostly just to be difficult. the stock year to date is flat to down a couple of percentage points. right before the election, both coffee brands started to bottom. starbucks is up 15%, 10% from the election. i do think there is a schultz premium. no matter how you slice it, i think that is a big insurmountable -- >> it shouldn't trade where it trades right now? >> i think that there's a reason. tim said it, andrew said it, i'm sure karen knew about it, the market knew this was in the works. i do believe that once people, 100% of the marketplace, die jesti digests it, i don't think people

are buying it right now. >> he's still there. >> when it's worthy of a news headline -- >> it's worthy of a news headline because it's howard schultz. he's a super star ceo. >> even if it was charles schulz, that would be worse. >> will it be a softer patch going forward? >> innovation in coffee, how many ways can we grind it? >> coffee was weak before this. >> at some point costs are rising, margins are under pressure, they're not going to grow the same way. americans are the dominant part of their growth. >> he's an owner. >> you just sounded negative. i would have said you were a bear right there. >> there's nothing about this guy stepping away from a global business with multiple channels of growth that obviously have challenges with margins and rising labor costs. to say that this guy is leaving is akin to a leave jobs leaving

apple, to me is preposterous. >> i think it underperformed for a reason. when you see this stock that's down 2% against dunkin' brands -- >> this is a much different size of company, apples and oranges, but it's still coffee. it underperformed grossly. it was weak. >> this isn't going to make it any stronger. >> what companies deserve that multiple? >> maybe you should have sold it. >> i'm not just long and strong. bottom line here is this is not a company you run out the door on. and when it was trading at 35 times earnings -- >> are you saying it would be a better buy in the after hours session if they said, we've got a new guy coming in completely? it almost sounds like you're saying you don't like what they've done about that. >> there was something bad about coffee in general. >> the coffee business? >> in general. what they talked about was there wasn't really consumer

confidence. maybe that was a big part of it. i don't know. but it's been weak. this is not going to make it any stronger. >> any a buyer on this in the after hours session or is there not enough of a dip to buy? >> i don't think so. we'll hear more about the price. they're still way ahead of targets. >> i would buy it for a trade, down 4%. they'll be on cnbc tomorrow morning, 7:30. do you think they're going to say real bad things? i think they'll say great things. the call will go well. howard schultz is still there. >> i don't think you can rely on that, though. i think that kind of dynamic of a very visionary ceo who steps away but not really, doesn't work. i think he's going to be more sort of, you know, visionary in sort of going forward from here, not in the day to day. i don't think that really works. >> isn't that a good thing, though? >> yeah, if you're going to step away, that's what you have to do. >> he's used to counting paper clips and widgets, and now he's in charge of a global business.

charles schulz is not walking away -- >> howard schultz. >> not the creator of "peanuts." we are going to be speaking to howard schultz and the incoming new ceo of starbucks, kevin johnson, tomorrow on "squawk box" 7:30 a.m. eastern time. that will be a great interview, and i'm pleased to join them tomorrow morning. coming up, the ceo of allergan has a big warning for other drug companies. president-elect trump could be a thorn in the industry's side. we'll explain why. donald trump arrived in indianapolis today to take a victory lap for saving jobs at the carrier factory. is what's good for workers good for stocks? and it is the penny stock that's burning you want ticker at the bottom of your screen. we're talking about dry ships. is the stock worth all that hype? much more "fast money" after this.

we don't negotiate the price of the drugs. we're spending 300 to $350 billion more for drugs buying from our drug companies. people say how is that possible? it's possible because the drug

companies have probably the second or third most powerful lobby in this country. they get the politicians, and every one of them is getting money from the drug companies, every single one. you know who's not? me. i'm getting money from nobody except for the small donor. >> that was donald trump speaking about drug prices on the campaign trail back in february. while his rhetoric was stuff, there was almost no mention of battling high drug prices in trump's transition brian. the ceo of allergan brent saunders is warning drug makers not to relax just yet. he joins us with an exclusive interview with our own meg terrell. meg? >> thanks for joining us. you said people shouldn't rest on their laurels here, we shouldn't be out of pressure just yet. >> let me start by saying, i am so optimistic. we have such an exciting

opportunity right in front of us. we saw news this morning, gene therapy is coming into its own. we have a government that appears to be pro-growth and friendly. we have an age that appears to be less focused on bureaucracy and regulation. and so we as an industry need to avail ourselves of all these wonderful things that are coming and have a golden age of the biopharmaceutical industry. the only thing i think that could disrupt that is shooting ourselves in the foot by continuing to do egregious, outrageous pricing actions. we at allergan passed a social contract and said we're not going to do it. today we announced the second phase of that, to expand patient assistance programs so many of our medicine now will be available to anyone who is at four times the federal poverty level. even our most expensive medicine, at five times the federal poverty level. we're really trying to do our part to make our medicine not only affordable but accessible

to those who need them. >> we saw drug stocks rally tremendously, companies like pfizer up 9% after the election, a lot of people saying because there was this potential alleviation of pricing pressure. do you think that was overblown? >> you do think there is an alleviation of pricing pressure. i don't think you'll see some of the things the clinton campaign was threatening, which is government negotiation of drug prices and things like that. but the flip side is, we're in an era of populism. and the drug industry is unpopular. and there are lots of reasons for it. i think it's unfair. i think it's a great industry, we do good things. we have to recognize the reality of the situation. and the only way to overcome that is to self-regulate and self-discipline. let our friends in control of government today have all the ammunition they need to put pro-growth, low regulation policies in place, because they trust us to do the right thing. that's the point i was trying to make today. >> you are in kind of a tough

spot, as the drug industry is unpopular with consumers and patients, at the same time you make the social contract not to raise prices more than 10% per year, your investors ask, is that good for business? >> i think it's great for business. first of all, i think it's right thing to do. allergan i think has one of the best in class biopharmaceutical businesses in the world. we have a large stable of young, durable products for unmet medical need. we have a pipeline of even stronger innovation for unmet medical need. and we can grow through volume. what business, what industry can raise their prices 20, 30% every year, year over year? that's just laziness in my view. we need to focus on execution and innovation. that's how you run a strung company. >> mel? >> brent, a lot of things could change under the trump administration. one thing could be the m&a environment. i'm wondering what your outlook

is in terms of tax inversion deals and whether a possible deal again with pfizer could be back on the table. >> i think tax inversions are dead, i think for a good reason. you heard president-elect trump today at the carrier plant saying he's really going to make it difficult to ship jobs overseas. he's right, the only reason companies do inversion, it's not to lower their tax rate. it's to gain access to their money that's offshore. if we look at the blueprint that speaker ryan has, we look at some of the campaign promises made by president-elect trump, we should have a very competitive tax system in the united states, making inversions not necessary. so i do think m&a will pick up. but it won't be about inversions. it will be about industrial and strategic logic, about innovation, about growth, all the things you want to see deals for. >> let me ask you the flip side. if the trump administration really lowers the corporate tax rate to 15%, could that create

an environment in which allergan becomes back to the united states instead of being domiciled in ireland? >> we don't know the answer to that. >> it's on the table? >> anything could be on the table. look, we like ireland. we have a big base of employees in ireland. we also have a big base of employees in the united states. we have just in new jersey almost 2,000 people. we have almost 2,000 people in california. we manufacture many of our drugs in texas, where we have several hundred employees. so we're a very strong employer in the united states. we pay taxes in the united states. but we are a global company operating in about 100 countries around the world. so we'll do what's in the best interests of our shareholders at all times. but i think it's good for our company, it's good for america, to have a more competitive tax system in the united states. >> brent, thank you so much for joining us, we'll have to leave it there. mel? >> great to have you guys, thank you. brent saunders, ceo of allergan. there's a lot to unpack here.

in terms of the biotech environment, do you think it will improve under a trump administration or no? >> in terms of tax? >> i meant in drug pricing in general. >> it's part of the business, though. >> sure. >> i think what brent was talking about, we need to regulate ourselves before the government regulates us. i still think we don't negotiate, and that's ridiculous. i mean, i'm wondering if that horse has left the barn already and it's just too popular to not negotiate. >> i think it's interesting that he thinks there are guys who have broken the social contract, we don't need to ask him who are those guys. it's true that bad apples can make it difficult for other people. allergan's issues have largely been about risks around generics coming into their pipeline. it's a phenomenal company. the message is there are great companies doing great things for people and there is a social part of this business that i think they're paying attention

to. >> he recently bought 5200 shares for $1 million. >> putting his money where his mouth is. listen, i think in the way that these stocks are trading, they are not trading, i'm talking health care and biotech, they're not trading like next year is going to be a good year for them. let's look at what could happen. one, their pricing power maybe diminished, likely will be diminished. number two, you're going to have rising health care costs, rising insurance premiums for people. when people get that sticker shock, i can't imagine in this populist era that they'll be real excited to have drug companies raising their prices 20 and 30%. there's too many cross occurrence. donald trump saving jobs in indiana today, but will his policies be good for workers and good for stocks too? we'll debate that. here's what else is coming up on "fast." >> announcer: it is the one penny stock that every retail investor is obsessed with.

dry ships. but it could also very well be the most dangerous stock in the world. we'll explain why. plus espn subscribers continue to dry up at a larn alarming ra. but investors don't seem to care. when "fast money" returns.

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welcome back to "fast money." it is the story of the hour. starbucks' shares sinking almost 4% after howard schultz announced he will step down at ceo this spring although he will remain at the company as chairman. schultz and new ceo kevin johnson will be on "squawk box" tomorrow morning at 7:30 a.m. eastern time. one trader is betting millions that gold is about to

surge. we'll take you behind the commodity. espn loses more than a million subscribers in the past two months. what will it mean for disney's stock? first, donald trump is sending a warning to corporate america. let's get to phil lebeau in indianapolis. >> reporter: melissa, when donald trump walked around the carrier plant and talked with employees, he brought the old carrot and stick approach. the carrot, his basic message, we'll work hard to keep companies to stay in the u.s., keep their facilities in the u.s., by lowering the corporate tax rate, by freeing up the companies so they don't have as many regulations to deal with, costly regulations, as he said. as for carrier, this specific deal comes down to two plants here in the indianapolis area. one of those two will stay open, it's the one behind me, 1100 workers will keep their jobs. a nearby plant in huntington,

indiana with 700 jobs, that's still closing as planned. those jobs are still headed to mexico. by the way, carrier's corporate parents, united technology, getting $7 million in state tax breaks over the next ten years. as for the old stick, donald trump was very clear about why he thinks he can keep companies from thinking about taking their plants overseas. >> companies are not going to leave the united states anymore without consequences. not going to happen. it's not going to happen. >> reporter: blunt language from president-elect donald trump. we'll see what happens over the next year, because guys, as we've talked about for some time, there's been a pretty steady rate of companies closing facilities in the united states, primarily in the midwest, then moving some of those facilities to either mexico or to other places overseas. by the way, don't want to miss this interview coming up monday night on "mad money," greg

hayes, chairman and ceo of united technologies, he's going to sit down with jim cramer and talk about not only this deal but also where united technologies goes from here. guys, it was quite a day here in indianapolis. >> and phil, of the companies that are now moving plants to mexico or jobs to mexico, a lot of them fall within your beat. the auto sector is one that i would think would be a little worried right now. >> reporter: and that's because the industry is down there. let me give you this scenario, guys. let's say you are a parts supplier, and maybe you're not even a huge parts supplier, maybe you're tier 2 or tier 3. but the rest of the industry is down there. it's not just gm and ford. it's all automakers from around the world have plants down there. you need to be where the business is. so what happens if you decide to set up an operation down there and it's more efficient, more cost effective, then an operation that you have here, let's say in michigan or indiana or ohio? will they get a call from the trump administration at some point? donald trump seems to be making it very clear that they are

going to stop companies or make it very tough for companies to go south of the border. >> all right, phil, thank you. phil lebeau joins us from indianapolis. let's trade this. is what's good for workers also good for the stocks? >> i think believe it's good for the stocks. when president obama game into power, there was a public outcry about compensation, about pay, about risk. he came in and warned those ceos, if you google it. now there's a public outcry about business moving across borders. president-elect trump is coming in and doing the same thing. i do think it's good for business. >> why is it good for business? he basically said american companies are not going to let their jobs go overseas. we don't know the details of that, and every situation could be different. to say that's good for business i think is absurd. >> did he make a deal with them? he didn't just warn them and

gulf an ultimatum and say we're not going to give you anything. they're big boys, sitting at the table, they came to an agreement, it worked for them and works for american workers. >> no question, between tax incentives and the government working with companies. i do think there's an opportunity. but why do companies move across the border? was it because the tax environment being so onerous here? i don't think so. >> that was a big reason why companies have done, melissa, we're talking about inversions, we're talking about moving across boundaries for countries, talking about getting to a 15% -- >> i think, do you want as a shareholder for a company, for the u.s. government to effectively insert themselves into a decision made by the board of directors and say, you know what, we think what you -- >> you don't think this has been going on in the financial sector for the last eight years? >> now, and now with a snip of deregulation, look what the sector did.

so what's the opposite effect? >> i think that was a rhetorical question, mel. >> when you say what's in it for them, something was in it for them. this was a tiny little part, 50, $60 billion business. what happened here for this one little plant is a pr stunt. >> more tax incentives to stay here. >> that is good. a better tax structure is better. >> why do you think jamie diamond kissed the ring for eight years or four years and then he got a whiff of it and said, you know what, i'm not going to do it anymore. that's what these guys are doing. >> meanwhile, gm up 5% today. if the auto sector is that concerned, not so much. maybe even banks, when you consider just what the sentiment was on the auto sector before elections, up 21% since the elections. that to me is impressive. >> it's hard to extrapolate because this is such a tiny little deal, right? if i just were to take this and say, what consequences did carrier get, there were no

consequences. they didn't get penalized. they got $7 million. >> we don't know what they would have been penalized, though. i'm playing devil's -- we don't know if they would have lost federal contracts on the defense side of the business. >> perhaps. >> we don't know what sort of repercussions there could have been. >> listen. they spent $12 billion on buybacks and we're worried about $7 million over ten years? i don't think either way is good for business. i think for business and for the stockholders, as a shareholder i would much rather have the ceo run the company in the most cost efficient, competitive way that they can. >> so without government intenti intervention. >> without government intervention. >> you're assuming this is a bad deal. >> it's a slippery slope, just like the banks. >> we're not saying it's a bad deal. we're saying it's the prospect of the government forcing themselves -- >> you said it yourself.

look what happened to the banks. you said it yourself. the banks were handcuffed. >> rates are going higher. there's a stronger dollar. there's more confidence. there's lot in that soup bowl. did i want regulation? no. but when you sit here, i think it's good to have american jobs in america. >> on top of something that there may be no growth whatsoever. >> he's offering them a deal to stay here. what's so bad about keeping american jobs in america? >> there's nothing wrong with that. >> nobody is against that. >> he didn't say you can't move. he didn't say you can't move. he offered them a deal to stay. >> it's wider than that. he did say we're going to make it very difficult. >> very difficult. >> what has the obama administration done with inversions? why was there not the same outcry? >> the drug companies did trade down when they handcuffed inversions. so what i thought you were trying to say -- >> he's offering incentives, tax incentives, to stay here. it sounds like ego but don't kid

yourself, this is a good deal for carrier. >> we're not saying it's not a good deal. it's the principle of the u.s. government making a phone call to a ceo saying, don't do that, we don't like that. >> meanwhile, pence negotiated the deal. this is the ex-governor of the state now negotiating with an important company in the state. >> wake up, guys, this is not disney land, this happens every day. sorry. >> i'm sure it does. >> that's not the question. >> it's a good deal. or else they wouldn't have taken it. >> all right. coming up, it's the one penny stock that's captivated america, dry ships. is it a no touch for investors? all the details. later, disney's flap ship franchise espn lost another half million subsubscribers next month. is the sports network in more trouble? more "fast money" after this.

disney's espn is in the spotlight once again.

julia boorstin will break it all down. >> reporter: espn lost over half a million subscribers last month. but that doesn't tell the whole story. it isn't entirely accurate. nielsen estimates in total cable tv subscribers declined by 1.6% last month. using that number, it extrapolates that espn lost 555,000 of those subscribers, which would be espn's second worst month after october when nielsen estimated that it lost about 620,000 subscribers. disney disputed the 621,000 number, noting that it didn't include new digital tv platforms such as playstation sony view where it is seeing growth. disney tells us, quote, we remain at the forefront of the industry and no one is navigating change better than disney and espn. moffett nathanson said they've long discouraged their clients

and the press from placing too much weight on these estimates. bruce leightman said the number is disconnected over the overall pay tv numbers which are overall flat. espn doesn't typically comment on subscriber losses. last week disney revealed in an sec filing that espn lost roughly 2 million customers in its fiscal 2016, ending that fiscal year with about 90 million subscribers, which is the fewest since 2005. it's also a far slower decline than nielsen is estimating in these numbers. we'll get official numbers from disney when they report their next earnings in february. melissa? >> all right, thank you, julia boorstin. steve grasso, are you worried about the espn declines? >> i am. but it seems like it's such a known intent right now that the stock is sort of meandering between 90 bucks and $100.

the 50, the 100, and the 200 average are clustered there. it has to break down or buy out. i like the idea of buying it at the $90 support and looking for higher prices. once it breaks through par which is $100, you'll see better things for them. >> what concerns me about disney in general is it can't get to 100. down at 90, i like that support there. but now we have this whole thing. we know what's going on in this media space, right? it can't get through 100, that concerns me a bit. i guess i would go with grasso and say range trade this thing. >> i still want to own value in the sector. for me, that's cbs and viacom. there's so much uncertainty, why would you expect something to go back to its historical

valuation? the once left for dead dry ship surging more than 2,000 in november only to give back all those gains. breaking down the move is a man who captivates our attention every day, cnbc's dominic chu. >> i do try my best. that roller coaster of emotion, wild swings between massive profits and massive losses, is back at it again. dry ships has managed to get back to a $6 million valuation after a 25% run in just the last a couple of days. a $4 stock a couple of days ago, it's five bucks today. trading volumes are surging, traders are left wondering why so much traffic in a stock that saw a rise from $4.50 to $100 mid-month only to see shares collapse back to four bucks and change. this interest in a stock with such tiny market value and a

recent history of generating outsize losses has been ramping up among retail traders. for better or worse, the stock was active last week during the kickoff to the holiday shopping season as shoppers turned out in force for deals. the stock was one of the most actively traded on its platform, both for the half market day on black friday and the full market day on sunday, dryships was among the most traded, joining bank of america, and amazon, among others, all of them with much, much bigger market caps than dryships. still, whether people remember just how vicious trading in dryships got last month, up and down, it remains to be seen. back over to you guys. >> dom chu, thank you. >> this is ridiculous. this is absolutely ridiculous.

>> maybe you should be clear. >> let me just be clear. this is ridiculous. this is a company that has defaulted on their debt, okay? so you're looking for the equity while this is well under water, no pun intended, for this shipping company. this is insane. also i don't think you can get a borrow. if you're going to buy this, you have to be certain there are many fools, greater foolishness than you, out there who are going to bail you out. otherwise this is -- i mean, how can you possibly do this? >> what's interesting, i will say, about this is it hearkens back to the days when people were staring at the baltic dry index and it tells you what was going on, people moving shipping. we're in a commodity boom. i do think you talk about cliffs and some of these iron ore names. there is a rationale for looking at companies that have balance sheets that can survive, and that's the key. cliffs has tons of debt.

to be clear, i don't think this is a name that you can put away and say, fiscal policy, it's great. >> let's say you like the idea of what dryships represents, but it's ridiculous, what's the alternative to invest in a commodity boom or inflation trade? >> you can do something like dbc, which is a commodity etf that gets you not only oil but also aluminum, copper in there. those type of things. that's the much better play, rather than going with some crazy type of dryships that was up 100 bucks and now is at five, that's insane. gold getting hit in the last month. traders are making big bets on the rally ahead. mike coe coe joins us with the action. >> ultimately over 30,000 of those traded for an average of 70 cents, that's a bed that it will be up 12.5% by march

expiration. they're risking $2 million to get net long over $300 million of gold. i'm not looking at gold as an investment, but given that it was right at those levels a month ago, this seems an inexpensive way to make that bet that it could get back there. >> options action is tomorrow, 5:30 p.m. eastern time. ahead, will a good jobs report number be the final nail in the coffin for bond investors? you're watching "fast money" on sentenc cnbc, first in business worldwide. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim,

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the move of the day would be shares of tdld, the bloodbath continuing in the month of november. will tomorrow's job reports accelerate the bleed? we're joined by brendan ross, pretty of direct lending investments which manages over $800 million in loans for small businesses. brendan, great to have you with us. will there be more reason for investors to flee bonds tomorrow? >> i think there's going to be tears. the jobs report will be an indication of the overall level of confidence that big and small businesses have. from my vantage point, looking at small businesses and their borrowings, we're seeing excitement, we're seeing a lot of borrowing for the right reasons. >> you're expecting a better

than expected job report or a strong job report. will that freak investors out? they'll start thinking that at the press conference the fed will have, they might indicate the trajectory of rate hike increases would be steeper or faster than what we expect. >> it's a what's up is down. what could be better for the economy than a good jobs report? but it's not what investors are looking for. i think the underlying trend is going to be people coming back to work. i think over time we're going to see people entering the job force. that's going to be a bit of a surprise. that's a trump phenomenon. >> brendan, we'll leave it there, thanks for joining us, appreciate it. brendan ross, direct lending investments president. what do you think of the report? >> jobs are a lagging indicator. like brendan said, it will take time to get better. we're already at full employment. it depends on what you put in, garbage in, garbage out.

jobs will get better going forward. you do think he is right. >> is the bar really low? does it almost not matter, it just has to be in line, with this environment, this rally going on? >> it might be a chance to buy tlt tomorrow. we've priced in some pretty strong economic news here, right? if you're just right in line, you could see a buy the news, sell the news types of thing. >> i think it's the first number we've had in a while where we're going from bad news to good news. we don't want to see this thing that strong because we've had strong data over the last couple of weeks. as he pointed out, if it's a lagging indicator, coincident and forward looking are confidence levels. we're seeing consumer confidence going up. we haven't seen official measures yet. i think the market wants to see a softer tone to the economy right now. yields going lower right now would give a boost to the broader market. >> that's a short run story.

similar to what these guys are saying, the bond market has had a major move. what has changed in the last a couple of weeks? coming up, karen takes a look at one bank stock she says could be a buy on the pullback. more "fast money," up next.

starbucks is down on news that howard schultz is stepping down at ceo. "squawk box" tomorrow will have an interview with the two, schultz and the incoming ceo. time for the final trade. >> csx has had a great run, i think you take profits at two-year highs. >> after the huge rotation, i want to own more google, facebook too, i want more of both. i'm used to being in something that's out of fashion. i'm happy to sit and wait. >> and dryships is ridiculous. >> it's ridiculous. i want to be clear if there's any confusion. >> buy it? sell it, sell it! it's part of the commodity

complex, looks like it's breaking out. >> gdx, been waiting to buy this stock, $20 stop. >> i'm melissa lee. thanks for watching. see you back tomorrow at 5:00 for "fast money." 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, and 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 save you some money. my job is not just to entertain but to entertain, put is in context. so call me at 1-800-743-cnbc or tweet me @jimcramer. talk about a tale of two markets. today we had the winners, mos