these days to see what donald trump is going to say. >> ecb tomorrow. my ears are peeled for some kind of a potential surprise. >> you know, that might happen. but i'm with elon here, it's not about the ecb. it's not even about the fed. >> you should go to twitter. you're missing all of the action, kelly. >> i get it everywhere else. "fast money" begins right now. "fast money" starts right now. that is a picture of america getting rich as the trump rally has officially gone wild. a huge day on wall street with the three major indices near a record highway. the dow jumping 300 points. and it's not just the banks and materials. the trump trade is a standing, two of the best sectors and everything up 1% or more except for energy and health care. simple question tonight is this. what trump trades can you still get in on? pete najarian, kick it off. >> i don't think the industrial

metals yet. looking at some of the names like the metals of the world. a trade of mine for the last couple weeks. all there has been is paper. u.s. steel, i think if there is going to be $1 trillion dollars and different rationale, i think those names still have up side from here. >> i totally agree with what pete is saying. reflation trade was alive, still going on. i think the dollar is capped. i think the dollar actually may get some headwinds effectively from the ecb tomorrow. i don't know that they're going to taper. not going to talk about tapering. i think there is a message in there. reflation trades continue to work. financials, absurd move. in fact, the great rotation is on. if you think about where financials were, in 2006, 22.5% waiting in the s&p. right now about 15. so is there room for where people are very, very underweight? i have spoken to a couple wire houses today? people are nervous they have missed a lot of this rally. and i think there is more of

those people out there than people that feel satiated and say i'm ready to go. even though i think complacency is setting in. >> is that the way we should think about the financial trade? it should rise close to or toward that original weighting way back when? >> i don't know. i don't know that was the right number, this isn't the right number, but probably somewhere in between would make sense. i was just -- this rally was so surprising to me. i did speak to our saleswoman who explained there is some s&p reweighting that the gamma, so pete could talk about it, the options that expired this week. there is a -- the change is getting bigger bigger. so people to offset that need to buy more and more. and that is part of what was fueling this rally today. i hate the idea of buying into something that could go away this friday or next friday. i think it's late to jump into some of the things now. but many are probably in the position i'm in, which is i don't want to sell things that have a big gain and take a tax

hit, profits in this year. i want to wait until next year, even if it's going to cost me, and i might sell lower. >> right. because -- theoretically, the tax treatment -- >> right. >> favorable next year. >> i can't be the only one thinking like that. >> i think waiting is exactly the way to look. everyone caught offsides, as karen said, everyone. so they reach for financials, reach for energy, reach for materials. tim said 20%, is that what -- >> 22. >> so if you look back, what, tech weighting was, that has more room to fall. energy was probably 15%? or so? that could double, basically. so if you look at energy, materials, if you look at tech, i think tech can fall another 20% from here. problem is, everyone is reaching for everything. so i bought more home builders, i bought more pulte. i feel like forward-facing -- u.s.-facing, i should say, domestic facing. tax revenues has the most to gain.

because if he's going to cut taxes, it's those domiciled here that are going to benefit outside. >> i agree with you on the home industry. what do you do about the fact that affordability has been at an all-time low and a lot of people aren't in a position to get loans. this is what i'm hearing from a lot of people out there, and what i'm hearing from some bankers. >> also looking at growth and if you look at numbers, they don't talk to affordability being a problem. they talk about millennials coming out of their parents' basement. and they talk about existing -- home starts, historic, 1.7. historic interest rate, 7%. so everyone who is spooked and got out of that trade, because interest rates were rising, they got spooked out -- >> how about the fact that the inventory levels. there is all kinds of different things, improvement in the economy, all those things feed into that trade. it's been pretty much -- a stealth move, basically, out of these home builders. it's been pretty spectacular, even as much as like a week or two ago, people saying, well, the home builders -- they have just been carried along. i don't necessarily think that.

i think there are a lot of different areas that are actually feeding into the idea that they are too cheap and there is still some up side. >> pulte homes has a defective tax rate. corporate tax rates to 20 or 15%. >> they actually pay 40%? >> they have one of the highest tax -- effective tax rates. >> i'm long pulte. here's one of the things to think about in the first quarter, where the comps are going to be really easy to beat, and in a quarter where we got somewhere in earnings. financials, the comps are fantastic. in other words, they're low. they're going to beat them in capital markets. the yield curve. the energy sector, where that was the biggest drag on s&p earnings. those things are more reenforcement for trades that i know have run a lot. >> as much as people were caught off guard by this rally, i'm sure the banks and a lot of analysts were not predicting the activity that we would have seen, right, post election. >> i have so much remorse right now for selling that xlf position, i can't believe it. >> come on, you're a great guy. >> i'm still angry about it. >> the question is, would you

get back in. doesn't matter what you did. >> with options, yes. still at bank of america, sold some credit suisse today. >> probably in the second inning of that xlf trade. feels like we're in the eighth. we're in the second. >> still cheap. and you look at some of these numbers, the potential this quarter, i saw john talking with you earlier today on the earlier show. and he's 100% right. if the trade in the previous quarter and we all know what the earnings were, what those numbers were, how were they this quarter? i would say pretty outstanding. going into january -- >> almost sounds like you guys are saying you could probably -- except for maybe karen, a little more cautious, buy almost anything that has been working. >> value. value is working and i think will continue to work. and you have to find places -- around the world, as well. so i look globally. europe is starting to break out. you can play the fez, the euro stock 50. the industrials and the financials in europe, if you think about the regulatory environment being oppressive for european banks here, deutsche bank got saddled with an attack in october.

these are things that probably get better for these guys, too. >> for me the problem child i have is facebook. >> underperforming still. >> under performing. to steve's point, i think -- i don't look at facebook in having 20% down side from a market standpoint. if their business changes. and, of course, business could have down side. that -- but very disappointing action today in that one. i mean -- i think google was much better. >> amazon, facebook, all underperforming. >> i do think amazon -- i do think he could turn on the spiths spigots whatever he wants. >> one group of stocks left out today, health care taking a hit as trump vowed to, quote, unquote, bring down drug prices. dragging the sector to a one-month low. giving up all the post election gains. are there any names worth playing in the health care space? let's get to oppenheimer's ari wald to find out. what are you looking at? >> for the overall sector, there

is some mixed evidence here in our take-aways. there is some better opportunities elsewhere in the market. with equities as a hole breaking higher. let's show what i'm talking about. first here's the health care spider, ticker xlv. and we can see after the industry strong run, taking on a much more sideways trend over the last year. in a range while the market is breaking higher. this is a relative source of funds. it's still below $64. now, a rising tide tends to lift all boats. we're bullish on the market. we think it's probably too late to sell the sector. but we think at the same time, it could underperform a rising equity market. and to make that point, here's a charity of pfizer, one of the largest stocks in the health care sector, relative to the s&p 500. here's underperformance of late. and we're approaching this very important support level. now my take is you want to trade

in the direction of trend. and what i see is a very long-term down trend. and i think this is at risk to break to new relative lows. that would be a 20-year relative low for pfizer. better opportunities elsewhere. let's look at some stock ideas. one sell, one buy. one sell that's really glaring on my screen right here is alumna in the health care sector. really major breakdown today, below a multiyear support level. here you can see the topping process. that completed it off that breakdown. resistance, that's the new ceiling, and i think you're vulnerable to additional down side here. now where is the opportunity? we actually think it's in some of these mid cap biotech names. one name in particular, united therapeutics. here, too, this stock has declined over the last year, but it's holding up much better. here it actually made a high or low, starting to break through its multiyear down trend. if you're a long-term investor, this is the type of name i would be looking at for the opportunity for the long run

that this sector makes a comeback, united therapeutics. >> quickly, ari, do biotechs overall look better than health care? i know it's a component of health care, but does xbi look any better chart-wise? >> the equal-weighted biotech spider, xbi looks better than the cap-weighted biotech, as well. so i think there is some strength that some of the smaller cap biotech names is where the opportunity is. >> ari wald of oppenheimer, thank you. you like some of the big cap names. >> it kind of shook me up. >> are you rethinking that trade? >> you're a great guy. >> it shook me up again today. pfizer was pulling back. merck -- those are my only two exposures, pfizer and merck. and i was very disappointed. and i understand what the president is doing, very populist. i think the one thing that we have to keep in mind is, how are they going to be able to implement what he's going after right now? i mean, is the republican -- the rest of government, are they going to go along with this right now? >> it's a bipartisan issue.

we have heard grassley talk from the right side of the aisle. we have heard rumors from the left side of the aisle. very rarely do you find a bipartisan issue, when you talk to constituents, people say drug pricing is too high. who is going to disagree with you except for a pfizer representative? nobody. so when you say who is going to go along with that? it doesn't even have to go along. all you have to have is that perception, that are there so many other issues you go after first that this gets cast to the back of the line? >> what if it's not even -- doesn't take congressional action? what if it's just self-policing the drug industry? we spoke to saunders, social contract. so they are preemptively saying we're not going to increase prices as much as in the past. >> what he's also saying is, regulate ourselves quickly. otherwise -- before they allow us -- >> regulating ourselves, that changes their economics, correct? >> yes, but do you -- honestly, does the public trust a drug

pricing structure that's -- that's self-regulating? >> but the point i'm making is that compared to either way, it changes the economics of their business. and yes, one is worse than the other. but it still changes it, right? >> it doesn't change -- is it does, but j & j is a company that doesn't really kill them. these guys have a very diversified business. one of the big names sold off, and i think if you look at that one in 19 times, that is a place, actually, i don't think they're going to attack this company. because frankly, their core health care business is very diversified. >> you love their baby powder, don't you? >> actually -- >> wasn't going to go there. coming on up -- investors are feeling bullish and pouring money into the market, so is the retail trader back? tim hockey is here in an exclusive interview. and mark cuban sounding off on one of the biggest deals in the street, at&t and time warner. and we'll bring the comments. and is it a match made in heaven? trump praising twitter on the "today" show.

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restrained. and i talk about important things. i talk about, you know, as you know, recently china and the fact that we talked about their devaluation. we talked about their building this massive military fortress in the middle of the south china sea and other things. and frankly, it's a modern day form of communication. rnls . >> even when you're picking fights? >> facebook between and twitter, i have more than 40 million people. and that's a modern day form of communication. i get it out much faster than a press release. >> that was president-elect donald trump on the "today" show this morning, talking about his heavy use of twitter. the stock jumping 7% today. twitter ceo jack dorsey at the code commerce conference yesterday, talking about what it was like having trump use its service. >> it's an important time for the company, and the service. and having -- having the president-elect on our service, using it as a direct line of

communication allows everyone to see what's on his mind in the moment. and i think that's interesting. i think it's -- i think it's fascinating. i haven't seen that before. >> and that kicks off our top trade. so does twitter need donald trump more than donald trump needs twitter? grasso. >> well, i think right now twitter needs donald trump more. because it's keeping eyeballs on it. but having said that, when you want to talk about real-time analysis, sometimes we have all these paid services we all use on wall street. when i can't find an answer, i go to twitter. and there's some rumbling someplace. they have had a lack of an ability to monetize it. but i definitely think that right now they have more to gain by donald trump using it on a daily basis. i started following him. i had to cut someone out -- >> you're already on twitter. you're not a new user to twitter. you're not -- >> there's going to be a lot more people. in my firm, people who don't

even like donald trump are following him. for me, i dropped somebody so i can keep my count to 386, because that's my badge number. superstitious. but i think people are using twitter -- new users of twitter are getting on there. >> 386 eggs following him. the other player to the story in terms of twitter's move is this rumor out there, we're saying this because it helped move the stock today, that soft bank may buy twitter or may buy a stake in twitter. >> if you're holding twitter for an m & a takeout, we have done some of the parts on this. and i don't think you get more than 25 bucks. i think the reason to hold twitter, for me is this is a company that's going to finally execute on a model that, yes, is becoming i thinkitery california to the media space. i still hold twitter. meanwhile -- >> it's a 25% premium. >> if you're trading -- of course. if i thought it was going to go there tomorrow, blah, blah, blah. but that's not the reason to hold the stock for me. we have proven, if anything, there have been people on this desk that said, hey, six people lined up to buy this thing and

nobody wanted it. i don't agree with that. the execution, live-streaming of "star wars" is development of the service and positive. >> lululemon. courtney reagan on the big stock. >> hi, melissa. lululemon margins are really strong. 51.1% compared to 46.9%, the same time last year. that's really what's driving this stock here on some pretty heavy volume, too. supply chain i aments are a big part of why we saw those margins increase. third quarter was really strong for lulu. lulu beat across the board with much stronger than expected for total comparable sales up 7% compared to the 5.2% the street was expecting. the ceo did say the current quarter started out mixed but has strengthened. the retailer also on track with its five-year plan to double revenue and earnings. showing particular strength up 20% and there will be, quote,

fantastic innovation in the bra category in 2017. men's delivering mid teens comps too. lululemon is opening three stores in china this month. melissa? >> thank you, courtney reagan. we've got to go to pete on this. >> lulu men's line. >> i do. and i'll tell you what, children's, men's and internationally should talk about china. gross margins i think is what shocked everybody. and everybody wanted to keep putting them in the category of, well, nike is not doing that well. under armour has some struggles. those guys are struggling because it's competition within them right now and mostly in the shoe area. these guys are killing it, and you look at the direct to consumer that was really good numbers, again. double digits, showing growth, doing everything they need to do. and a big short interest, which actually is probably helping this move to the up side. >> karen? >> it's clearly positive. and guy i think has been surprisingly a big lululemon fan. >> he probably wears -- >> definitely wears the yoga

pants. >> my exposure is through foot locker. i hope there is a continuation of the ath/leisure trend. this one is expensive but wasn't expensive today, before 4:00. so maybe i -- you know, need to rethink about what's expensive. >> a nice bounce in dick's. if you look at under armour and lulu, the charts really are very, very interesting. 54, 55 on lulu seems to be a nice base. >> starbucks making a big bet on millennials and its high-end coffee shop. will it live up to the high price tag. details later this hour. i'm melissa lee. you're watching "fast money" on cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." >> that's what stocks are doing. but with down 20 k in sight, will retail get back in the game? the ceo of td ameritrade will explain. plus, mark cuban just dissed tv. >> the idea that tv is the dominant con trent delivery

mechanism no longer is valid. >> so why are media stocks surging? the answer, when "fast money" returns.

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welcome back to "fast money." the trump rally rages on. all the major indices at record highs and even the transports hitting an all-time high for the first time in two years. here's what's coming up. would you pay ten bucks for a cup of coffee, the answer could make starbucks a must-own stock again. and think millennials aren't investing? think again and you might be surprised at what they are buying. tim hockey is here to explain. first we start off with what could be one of the biggest mergers this year. time warner and at&t in the spotlight on capitol hill. eamon javers in d.c. with the very latest from the hearing. eamon. >> hi, melissa. you have to say these two

companies got the kid glove treatment today on capitol hill. there were some skeptical questions, mostly from the democrats going into this hearing. you saw some questions, particularly about how they would handle news coverage at cnn, which, of course, is owned by time warner once they're dealing with the trump administration and trying to get approval for this deal next year. i talked to randall stephenson in the hallway, the ceo of at&t, just before the hearing, and just after the hearing. here's one of the things he told me. >> the purpose in a news agency is to provide objective coverage of the news, period. why would that change, regardless of who is president or who owns cnn. objective news coverage is the objective. >> they will continue to be objective, moving forward. no matter what the trump administration says, no matter what donald trump himself may tweet. the other interesting one here was mark cuban. he ended up being sort of a surprise witness at the hearing today. arguing that, in fact, even though this is an $85 billion

deal, at the end of the day, at&t and time warner, even combined, are the underdogs competing with the likes of facebook and google. i had a chance to button hole mark cuban, as well. and here's what he told me. >> regardless of the size, just in terms of content, opportunity, disruption, these guys are at a disadvantage. i don't see this as being a negative consumer. i think it's going to be a big positive. >> so melissa, you have to say that overall here, no red flags today at the senate in terms of this deal. of course, now it will be up to the department of justice and very much donald trump's department of justice to see whether or not this deal goes through in washington. >> all right, eamon javers in d.c., thank you. julia boorstin joins us onset with more. and you were watching the hearings as well, all day long. and i think what was so interesting was the sort of redrawing of the competitive land escape. >> yes. absolutely. randall stephenson, ceo of at&t said this is not about consolidation. because you're not getting rid of the competitor. they stress this is about

vertical integration. so not really changing the competitive landscape, and if anything, really necessary to strengthen these media companies and mark cuban was a really interesting voice to hear from. you don't think of him as being involved in this. remember, he invented broadcast.com years and years ago and talked a lot about how to give these chances, these traditional media companies any chance to compete in this new digital landscape, they're going to have to merge. take a listen to what he said. >> the idea that tv is the dominant content delivery mechanism no longer is valid. instead, we feel our time by consuming content from facebook, instagram, snapchat, messenger, what's app and slowly from virtual reality companies like oculus rift. combining, these apps reach 1.5 billion users a month. they can deliver any content in any manner the consumer would like to receive, be it message, video, vr, post, ad, you name it, to populations around the world in a manner that dwarfs

television. facebook is without question in a dominant position, if not the dominant position for content delivery. >> so what they really are talking about here is creating a new rival to the two behemoths to advertising space, facebook and google. the idea they're actually going to make things better. >> the underside to his comments, though, is basically saying traditional tv is dead, right? that if you're a traditional media company, you really have to think of new ways, new transmission ways. and that in turn, if you extrapolate that, could mean consolidation of, you know, a comcast with a wireless company. things we don't necessarily right off the bat think. >> i think if this deal is approved, which most analysts expect it to be, we'll see more consolidation and more vertical consolidation. once at&t -- directv, time warner, who is going to be next? obviously people expect t-mobile to be snapped up. what's next? >> how did it play? what was your sense of -- >> you know, i think there was a

lot of skepticism and a lot of criticism, especially from the republican senators. and i think there has been a lot of talk about this populism in the wake of the election and this criticism of big business. so i think there were a lot of concerns raised, but i don't think that means it will be rejected. >> how much is this also ultimately going to be who controls the pipe and who gets that content to you? so the last -- the last leg? because it ultimately seems if at&t and verizon and comcast can really control whether you can get to your facebook. or your, you know -- whatever new form of media? >> well, that's the whole premise of net neutrality. regulations put in over the last couple years mandating that all content on these pipes be treated equally. and randall stephenson talked yesterday about how donald trump's administration is expected to roll back all that net neutrality regulation which is a great thing for at&t. not a great thing for the netflix of the world because they have to pay more. >> netflix very reluctantly went along with it.

>> well, i think there are different elements of net neutrality. the idea that everything is going to be treated equally -- the internet pretty universally want net neutrality. they don't want to have to pay -- at&t would like to do tiered pricing. the way that net neutrality was enacted was kind of a simplified, less harsh version but donald trump is expected to get rid of all of those rules. >> julia, great to see you in person again here at the nasdaq. let's trade this, because in today's session, it was interesting to see, again, another gain by sprint, another gain by t-mobile. and it wasn't just -- yesterday was sort of, oh, you know, maybe soft bank is talking to the president-elect and maybe -- maybe -- you think -- >> i did. >> as opposed to -- now be a target by a broader audience? potential -- >> i think it's a -- a little more length in the story from yesterday. but i think the tradeable event is where pete opened up the show and talked about where the rubber meets the road.

rhetoric versus reality. does congress get behind donald trump? who didn't want this deal to go through? >> it's not -- >> he's also got to appoint people that leave the s.e.c. and doj. so are they going to be more accommodative, yes, the people he puts in place. will this deal get done? i think it will get done. twx trading at 194. >> some parts, twx is the thing to own. it's interesting that at&t is trading higher when it dropped 10% on the announcement of the deal in a couple days. so now the deal looks like it's back on, it's rallying. so i think this is kind of confusing. because the assumption here is the debt load at at&t is going to be monstrous. and the 6% -- i realize, it's partly a yield play and that was another reason why it sold off. it sold off on this deal, and yet it's rallying now. >> and something has to give, right? something has to give, when you've got the dividend yield they've got. when you're paying out the dividend, they want to pay that, and you've got this debt load

that's continuing to build -- >> more expensive now than three months ago. >> i don't understand how come, to your point, why was that stock going up today? it just shows you something about the market we're in right now. >> so you would get on that at&t train. >> i would stick with and i have been in and not in right now, it's moved. but t-mobile, very interesting company and i think that's one of those -- there is a for sale sign on that thing and i think it's going higher. new life to the retail investor sending many online brokerage firms soaring. the ceo of td ameritrade here with what are the biggest trends in the market right now. and starbucks with the reserve coffee bars. will the prices help or hurt the stock? we will explain when "fast money" returns. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests

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yum welcome back to "fast money." the retail investor returning to the market with a vengeance. bob sanny at the new york stock exchange with more. >> there's a few tells that indicate the retail trader is becoming more active. so first, while volume in general was up in november, trading from retail sources were up about 25% in the weeks after the election compared to the period just prior to the election, while institutional

volume was only up about 10%. good sign there. second, retail investors traded more. darts or daily average revenue trades, that's how many trades are done on a daily basis, were up 34% at schwab. 24% of e-trade. 22% at interactive brokers. big moves. finally, trading in odd lots. that's less than 100 shares, also notably increased. you add it all up and the retail investor is clearly more involved in the past month. that spurred a rally in brokerage and financial management firms, beyond the overall market rally. so we had double digit gains, td ameritrade, many others. so why are we getting this rally? first a broad stock market rally that helps brokers, that makes sense. when markets go up, the firms go up more. second, when volume goes up, they benefit because they charge for trades. they get an earnings boost. and third, higher rates are also a benefit. so brokerages like td ameritrade, schwab, they own banks. they take the cash in trading accounts, invest it along the yield curve.

asset managers like leg mason and wadell reed up for similar reasons. there is another reason that the much-hat much-hated fiduciary -- we all know the number of households that own stocks has declined. only the top 10% of households own the majority of stock. the investment community would really like to change that and boy, would that be a nice trump effect for 2017. melissa, back to you. >> all right, thank you, bob pisani from the nyse. td ameritrade is the biggest in terms of client trading volume and tim hockey joins us. welcome to the show. >> thanks for having me. >> bob gave us the rundown in terms of industry. what have you seen at td ameritra ameritrade? >> essentially what we see, as well. there was a little bit of a pause in trading activity in october. essentially waiting for the election. and then, of course, we saw everything take off on the night of the election, literally overnight in the after hours markets. and then ever since then, it's

been on a bit of a tear. >> what do you think is the reason for it? is it just uncertainty or is there a real enthusiasm specifically tied to president-elect trump? >> well, there's a few of those factors all tied in together. the first one is -- as i like to say it, investors tend to like certainty. and once you have a decision on who the president is, that's a certainty. traders, on the other hand, like some volatility, and you certainly got that as a result of some of the trump effect you're talking about. >> okay. so records -- round numbers matter? if we're talking about dow 20,000, which is basically a 3% move or so from here, does that help get the retail investor back in? >> well, certainly helps, because it gets people talking. and they want to participate in that rally. but we have seen this sort of trend over the last number of presidential rallies. usually a honeymoon period in the time period right after an election of a new president. that may or may not hold. honeymoons don't last forever. 20,000 might certainly be within reach.

>> give us the makeup of the investor coming back. i'm just curious if younger people are investing as well. for some younger people, their only experience has really been post financial crisis. and it's not really been a good one. >> right. but we are, however, seeing millennials making up about a third of our new accounts every given quarter and obviously a great opportunity to highlight exactly how young people are enjoying learning about the markets and investing. >> tim, do you -- when you talk about the growth in the retail investor, how big is the retail investor, relative to the rest of -- institutional investors or -- passive -- >> well, in terms of absolute dollars from our point of view, mostly our bread and butter, well our retail investor in total, scott trade will end up having a trillion in assets. and we are actually the largest of the platforms for the retail investor. we also have an institutional business, but that's for rias that are covering our retail investor. so we're strictly retail in terms of coverage.

>> it seems like it's also a really exciting time at the company, because there is innovation going on, you had a management reorganize, and it seems like from what i'm hearing as technology is really something you guys can -- while fees go down, technology allows you to have a much bigger addressable market than you've ever had. and that's pretty cool. nchds. >> that's where we think there will be some real interesting upside for the retail investor and trader. right now it is difficult for people to enter into a trading market. there is two reasons why investors and traders don't enter. they might have an interest but there are two reasons. time and, frankly, it's a little scary. so technology, we think, will actually reduce the amount of time, make things more convenient, better interfaces. and certainly technology will reduce the fear factor as those same interfaces you use, whether it be speaking to a device, we're about to launch our alexa skill, literally for the amazon echo next week, so you can talk back and forth about what td ameritrade does.

that's different than sitting in front of a screen and being intimidated. >> all right. we're talking about millennials. so tim is also here to share exciting news from td ameritrade. just completed the third sink or swim challenge. tell us what this is, exactly. >> we have had a program for a while now with 500 different schools across the nation. it's called ameritrade u, where we support programs that teach investing and trading to schools through the faculty. for the last three years, we've had a program called the think or swim challenge where we invite teams of students to participate in a three-week challenge for trading. and we have a winner to announce. and it's a great story. >> you do. we're joined now by the winners, team all for tony. tony for all. graham taylor, alexander brian, and they join us now from umc chapel hill. congratulations, that's one big check you're holding. congratulations. graham, what was the winning strategy? >> thanks for having us. the winning strategy was

basically we stuck to what we knew. so alex is really interested in macro economic research, on a global scale. i learned about the health care industry, the tech industry, and the others are economics and computer science majors, respectively. so we traded mostly gold, oil, volatility and then equities within the health care, bio phrma and tech sectors. we would sort of look around through various news sources, social media, and also google trends for investment opportunities. and then we would get together and sort of within the context of macro trends, the political situation at the time, as well as both technical and fundamental research, sort of come to a directional consensus and then use alex's options in trade execution expertise to give us the best possible exposure to whatever price movement we were anticipating. and so we were pretty directnally accurate. but really the secret weapon was the leverage. >> you guys actually traded things that most professionals

in the market got wrong this year. alex, what are you guys looking at right now in the markets? >> from a macro point of view, i'm long u.s. equities in general. i think as we move closer to the inauguration, the market is going to continue to price in those inflation exceptions from the new administration. whether that's fiscal stimulus or protections policies that will benefit stocks, small caps in particular. if i had to pick a specific sector, i would say u.s. banks. i think the fed will hike next week and unlike last year, this rate hike will be accompanied so u.s. banks will benefit from the spread. >> tim -- >> wow. >> got to give you hope for your business. >> there you go. >> trading for "fast money" right there. >> somebody asked me earlier whether these kids, or these young adults obviously stay on our platform. and i said, i'm not sure but i know we have hired a few of them in the past. they're trading up perfectly for being associates of ours. >> team, congratulations. >> well done, guys. >> thank you. >> our thanks, of course, to

you, tim. tim hockey, td ameritrade. what ape great program. >> pete, you liked the online brokers, a number of wins at their backs. >> this being one of them. e-trade, and schwab. attracting the millennial world is absolutely something. far more transactional. i think that obviously is something that's been missing in a lot of the various companies, and especially when you look at the yield curve and interest rates and all of the concerns people have had. i think the fact that you're seeing more and more transactions, it's why they bought the think or swink platform and why they continue to grow in scott trade and so forth. that is a great sector. >> hooking up with things like alexa removes the friction. if you can just say alexa, buy 50 shares of coca-cola. >> 386 on that -- >> what? >> right. >> can you imagine a story about a parrot literally -- alexa, buy, whatever. i don't know -- >> warning. >> these stocks have had a

massive move. the stock up 60%. and the cool thing about what's going on here, while it's the race to the bottom on fees, they growing the market. and the self-directed investor never had more tools to do this and making it easier. still ahead, starbucks revealing new details about reserve coffee bars at an investor meeting today. is it worth the hype? we'll let you know. you're watching "fast money" on cnbc, first in business worldwide.. generosity is its own form of power.

you can handle being a mom for half an hour. i'm in all the way. is that understood? i don't know what she's up to, but it's not good. can't the world be my noodles and butter? get your mind out of the gutter. mornings are for coffee and contemplation. that was a really profound observation.

you got a mean case of the detox blues. don't start a war you know you're going to lose. finally you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. it's no different than i think what bmw has been able to do in creating the 3 series all the way up to the 7 series. what air jordan represents to nike. this is an example of an innovation inside the company, and it's taking advantage of what we know best, coffee and creating a super premium brand inside the company. >> that was outgoing starbucks ceo howard schultz. that's tonight top of the hour on "mad money." so you won't want to miss that. meantime, will consumers cough up the dough for some expensive joe? i know that rhymes. susan lee joins us from a starbucks reserve with more on this story. hey, susan. >> reporter: hey, melissa. yeah, that was one of the main thrusts today of invests today.

the $10 cup of coffee. you'll find these high-end drinks at these upscale reserve stores and roast res in the future. howard schultz says expect to see 1,000 of the stores around the world over the next five years. 30 roasterees worldwide. and people are willing to pay up. the romance and theatre he calls it. we have seen comparable sales up 24% in the second year of existence for these roast res. also something else we found quite interesting that was announced today here at the investor day was the fact that when you think of starbucks, you think of hot tea, maybe hot coffee. actually, cold beverages will make up 50% of sales in the next five years. so when i talk about cold drinks, think of cold brew and the nitro brand and also iced tea in the future. also we had financials confirmed, pretty much what the market was looking for. eps growth 15 to 20% in the next five years, also a net addition

of 12,000 stores and takes a global count to 37,000 by the year 2021. 50% of stores in the biggest markets of the u.s. and china, where they are building a new store every 15 hours. we also got a little bit on the leadership transition. i mean, a little bit. howard schultz pretty much saying he's still sticking around, will still be there, but the final say and the final word will go to kevin johnston who takes over as ceo in april next year. back to you. >> all right, susan lee, thank you. a new store in china every 15 hours. we go to pete, because he's the copa aficionado. >> you guys are looking at me and thinking $10 for coffee, who would do that. ten years ago, what would you say about $5 for a latte now. you have to look at this and put it in perspective. the fact that howard schultz is the guy running it. i think they're going to follow through with. so i think it's a really interesting, unique way to get

out there with the premium beverage world. and we all probably look at this and think, no way. i actually look at this like the wine bars, and it's one of those kind of things, where it could be a destination kind of a thing for people to go to on the coffee side of the world. >> a little too much. i think you have jumped the shark, so to speak in this one. i do think that starbucks is going to have that -- a little bit of a pullback on him leaving or being there, not in the same capacity he once was. it's down or flat. year-to-date, duncan brands up 27%. year-to-date, i would much rather buy the outperformer versus starbucks. >> but the stock is above the schultz resignation day. the fact that is it is -- >> the market -- >> this company has four or five channels that are crushing it. cold, teavana, china. >> why has it lagged duncan? >> first of all, i think -- >> they all have that. >> i think it got very expensive. we talked about that day. ultimately, it does come down to valuation. but these guys who have 15% of

the market aren't going to dominate and be able to do what they want. no management is going to be probably better than old management in the sense this guy is all about globally growing and scaling a brand. howard schultz indicated maybe this guy is better at that than me. it's time for this company to be a big company. >> why spend the money on that sort of leg of growth and is that kind of growth the way you want to achieve it? or is that effort? >> i don't know what you -- i think they try different things and this is more of them trying different things. i don't know, is teavana a big success? i don't know. but this is part of their -- >> there's no question. >> try different things. i could see how this -- the scale seems hard. >> no question. these guys have so many different products, i think, to deal from. and, in fact, they're winning. and i think they can. >> up next, karen gives us the one take out target she is looking to buy. more "fast money," straight ahead.

this car is traveling over 200 miles per hour.

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just about an hour from my garage, where it's 80 degrees, and now i'm up to my wheels in snow. actually, i would be up to my wheels in snow if this thing had wheels. but it doesn't. it's pretty cool.

you can go anywhere in this thing. >> that's a clip from jay leno's garage which airs here on cnbc tonight, 10:00 p.m. eastern and pacific time. he'll explore how outer space has influenced car design and technology in tonight's episode. really, really cool stuff. so in light of -- in lieu of tonight's "final trade," and in reference to jay leno, which stocks would you like to take out for a spin? pete, kick it off. >> well, my wheels in snow, to quote him. i like amazon and i would like to take this thing out for a ride. i've never -- rarely been in it. i would like to take this for a little spin. >> that's the worst song on the face of the planet. tim. >> and into my car. it's worked sometimes. i would do under armour. i haven't laced these up in a long time. always been negative on under armour. i look at the valuation at this point. i think the growth expectations are under control. 26 bucks. look at the bounce today. stock looks like it's consolidating. >> karen? >> i love the product, pandora. i think you've got 78 million active users. it's worth a spin.

>> la la la. grasso. >> i've been in under armour, as well. i would be, as well. take that out for ale spin. reap the benefits of a lower corporate tax rate. 15% domestic versus international. >> boom. >> i'm melissa lee. thank you for watching. see 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 cramerica. call me at 1-800. trump have the trump rally made one more magnificent move. the