managers. this year may be another real awakening that people should put their money in indexes. >> a lot of people looking at the pensions and small investors at potentially baling them out and coming in late. >> mike, evan. thank you. that does it to be cloeg "closing bell." "fast money" starts now. >> and a lot of people in nebraska. a lot of good, wealthy people fighting us, right? that didn't work. those wealthy people aren't so unhappy now because the stock market has gone up so much because of us. that those wealthy people just got wealthier, right? ♪ money money money money >> and friends, donald trump is right. america is getting richer. how about $1 trillion? that's how much market cap the s&p p s&p 500 has gained since the election. the dow, nasdaq, s&p and russell closing at record highs. the dow just a mere 250 points away from the huge dow. 20,000 milestones.

will it come next week? what will take us there, and what could you still buy? guy, what do you say? >> well, what was that a percent and a half away now? again, i'm not pretending i'm a raging bull. it's somewhat disin general would you say of president-elect. it's been rallying the last eight years. the banks are probably going to continue to go higher, not because i necessarily believe it. but i think what is happening here, people are saying, what's price to book in niece banks, where were they in 2007? they're not going to get to those levels. goldman sachs at two-and-a-half times price to book. goldman sachs at 1.8 times makes it a 308 five $5 stock. >> it feels like everything is priced to perfection. we're -- >> would you set that -- would you have said that last week? >> i would have said it last week. but here's what i'll say. talking about drifting higher. we're drifting higher for one reason and one reason only. maybe a few reasons. this repositioning trade is

massive. it can go a lot further than you expect. i do believe it's a sell at the beginning of the year. i just can't see us sustaining these levels. >> what's going to sell the market off? going to 5%? >> you know -- the fed -- no one cares about the fed. no one cares about the fed. when was the last time the market absolutely cares. >> doesn't care. doesn't care. >> >> we've got the fed next week. >> hold it, you guys! all at the same time. tim, talk. >>. >> the fed has been clearly a sideshow to elections and obviously to a story where business confidence -- look at the confidence numbers out today. consumer confidence, tenth of a point off the high since 2004. so, yes. we know that the market is very euphoric as david is saying. except if businesses continue to spend and very smart economists have gone from being very cautious to being very optimistic on next year, based

upon fundamental fiscal change in our economy. so what do you buy? you buy the reflation trades and the things that have been working all along. ag is starting to rip. if you look at what we have here in the commodities space and what we have in the mining space and what we have in the autos, look at gm. that's where you get valuation and you also get industrial. >> this is 100% because of trump. without question. there's no way the market did nothing. it grinded sideways basically for an extended period of time. this is because this is the first time we're looking at pro growth policies, the first time we're looking at gdp increasing global with the effects of united states. this is a huge boon for business. >> let me make a point. it's going to take 12 to 18 months for any of these policies or any of these -- >> not the tax policies. >> but to hit earnings. really show the bottom lines. what if the fed becomes more hawkish? much more hawkish? like -- >> rates rose -- the fed has to -- >> it doesn't matter. >> when was the last time --

when was the last time on this desk this fed has snuck up on us? nobody cares any more. >> how quiet has the fed been? >> rates without the fed! the only thing -- i'll give you this. company buybacks. i think the cost of capital, that will be a big event. >> but the market is factoring in growth. >> inflation expectations at 12-year highs. >> probably pretty well behind the curve on inflation. and to say the fed doesn't matter here to me, i don't think you're saying that, steve, because if you are saying it, it's an absurd thing to say that is the most important thing. the most -- >> not right now. >> for this -- >> it was. it was two months ago. >> let me ask you, what if the fed comes out in the news conference and says something to the effect of, we are open and we have to be open to multiple rate increases. we're behind the curve. actually were behind the curve. >> multiple raises. now you're talking about multiple raises versus the 25 bips we have been talking about? >> but doesn't --

>> you're not going to come out and say that. >> doesn't the rate rise? >> what happens if trump goes after -- >> he's already done that. >> so you think the market is immune to that. >> i think the market -- i think the market -- this is about a chase right now. this is about an allocation. we all know that. this is not about valuation. this is about allocation. the market was caught way offsides. >> yes. but the risk here with the fed is that the fed is behind the curve now. >> i think tim -- and it's interesting what he brings up. i've tried to bring it up, maybe i haven't done it correctly. but if they do raise, which i think we're pretty much all in agreement they will. i think you're going to see some sort of tweak storm from president-elect trump saying, see this -- this -- >> weighted. >> rigged system, they waited for me to be named president before they -- look at the way this whatever ack adjective you want to throw in. i do think that the fed matters. the reason we're not talking about it is, because maybe they are passing the baton from monetary policy to fiscal policy, at exactly the right

time. >> which the fed welcomes. >> if the fed raises it behind the curve, does that make people buy more financials or less financials? they have been underweight financials. a large portion of the market ripping higher was financials and energy. >> why is it that higher rates now when for the first nine months of this year people were parading around saying that the banks were under credit pressure and oh, my goodness, the banks actual balance sheets. >> >> i totally get it. >> you can't have it both ways. >> you're looking at it in a very perfect 20 to focus. this is about allocation. this is underweight. george brett, me and you. the only three guys. if you look right now, guys were grossly underweight. energy and financials and they have not caught up yet. >> but we look at earnings decelerating. earnings have decelerated. if top-line growth doesn't pick up enough to offset the risks of stock buybacks slowing down, it's a big problem. so that's -- that's the -- i think the fed is the biggest risk right now to the stock market. i think the fed is the biggest risk to the stock market.

period. there is really nothing else. it overhangs it and the fed getting more hawkish. >> why is the market ripped higher until now? >> you know what is fascinating to me, you guys have having a very spirited debate. how many times have i had to step in and say, everybody shut up. not too often. not too often. but the bottom line here is all you guys think the market is going to drift higher. we see, the point is -- the point is, it doesn't matter. what -- hold on, hold on. hold on. yes. what do you buy now? you drift higher, that's the market we have. >> the financials drift higher. >> you answered my question. tim. >> first of all, the best week in the markets this week was in europe. and in fact, they had their best week in four years. and if you think about what's going on right now, the rest of the world is probably the one that gets the benefit of the u.s. economy. who cares what's going on with trade. if you believe steve, if you believe a lot of people, trade will be reworked in a way that's constructive on every front. that's a fair thing to suppose at this point. if you think about saying, so what did i buy today?

more mosaic, ago agree yum, names that to me i think have not only lagged the rally but if we have the kind of inflation good for these guys, they're going a lot higher. >> i bought more spdrs, more macro. that's what spdrs are. i bought home builders. you want to look at what's the next domino in the trade. when you look at names that have revenue, domestically facing, those are the ones outsized advantage over lower corporate tax. >> a name like honeywell, for example. gotten back that loss it had a couple monthsing with when they gave lousy guidance. lagged the industrials, which it hasn't done in the last ten years. if you're looking for a name that -- generally don't like doing the catchup trade, but i think in this case you can with hon. >> it's been a while since steve has sauntered over to the smart board. please do that. and we'll play a little "west side story" as you walk over there.

♪ so let's look at it here. let's look at the -- this feels like it was eons ago in the s&p, 1991. so let's -- let's take it from here. this is the recent high. this is the recent low. and now when you do -- everyone knows i like the fibonacci replacemen replacements. from that point to that point, overshoot levels. that's how you have to look at this. everyone knows if you're a fbi guy, you look for your 50 and 618, the biggest overshoot levels you want to focus in on. that's the sell zone when you trade up higher. it's this level right here. 22, 48. all the way up to 22.61. we spent most of the day right here in the middle. do you sell the market or does it have really a lot of torque, the word i like to use. and it does feel like it does have a lot of torque. maybe you bet a little bit of a reversion. i don't think you could see you get a lot of it, but i think you go to those round numbers. everyone talks about dow 20,000.

you talk about s&p 2,300. that's the next area. if we blow through that area, 22.6 22.61, the next one is 23.00. >> a couple point away from that level. should we invite him over? >> don't ask tim! >> let him stay up there with his espresso. >> oh! >> ata boy, come own over, my man. >> how long does it have to be above $22.61, because we're two points away. >> everyone knows i talk about the three-day rule. i would go with the same type of thing. three-day rule. every time you wait for any type of a respite, going into year-end. funds are grossly offsides on their allocation. i don't think you're going to see much of a replacement if you get it. >> yeah. seabrook? >> i think the risk/reward here from me from a trading perspective, you're right. higher. no question about it. i don't believe in chasing

stocks for the sake of chasing stocks. i think you'll be selective in this tape and careful what you're buying within these different subsectors. it's very stock-specific now. if you go out and just chase for the sake of chasing, i think you can run into serious trouble. >> the one i look at it, actually been a pretty decent indicator is the russell, iwm. to me, as long as that stays, and it's pretty significantly above that now, as long as it stays above 131, i think the s&p is just sort of in this levitate mode and the transports appear low and i say that, appear as though they broke through potentially a double top on the upside. >> we almost didn't invite you over. >> oh, could have started the weekend right now. >> coming up, the polar vortex is back. and what may be bad news for your weekend plans, it could be good news for a number of stocks. we have those names after the break. plus, tech is finally joining in on the trump rally. one name traders think could break out to flush eyes. we have the stock and the best way to play it. plus the chart master is here and he says goldman sachs is priced to perfection. what should you do now?

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welcome back. in case you didn't get the memo, it's cold outside as a polar vortex sweeps the nation. just how old? let's go to guy adami, at the smart board. >> mel, take a look at my map. i've always wanted to do this. we're talking about vortexes, polar stuff. we've got some clipper systems coming down. look at bismarck, north dakota, tim. i know you're a fan. min minus 4, man. check out tomorrow. 5 degrees. that's cold, folks. i encourage you to wear hats and scarves. we have a lot of things going on on the national map, as well. here we have in the east coast, when you get this clipper system coming down from the great lakes, a lot of lake-effect snow for you folks in the northeast here in the syracuse area. be careful. burlington, a great coat factory there, i encourage you to bundle up, as well. but tallahassee, florida, in the 30s, man. that is crazy. that's college football season. i don't know what's going on. but look at duluth. you've seen the commercials. they make great underwear.

0 degrees in duluth, man! it's nuts! wear hats, wear gloves, wear your scarves, man. cold weekend. bundle up. i've the trade for you, but i'm throwing it back to the desk, mel. >> wow. >> lonnie quinn, you better watch out. guy adami is gunning for you. >> i don't know. i don't think al roker has anything to worry about now. here's one thing we can agree on. the cold weather outside could be a major catalyst. kicks of off our top trades. seaburg, you mentioned the aforementioned burlington coat factory last night. >> cold weather, we talked about it last night. if you look back, usually means they're going to hit the top end of the comp. range. gap store is great to own. walmart is another really strong name to own. and cold stores. these are stocks i would look at buying to really benefit from the cold weather out there. mall-based stores. >> i agree with that, and as you pointed out, and you did a great job last night.

korchs are easy. but people staying inside. polar vortex, you're staying inside and staying away from guys like guy adami. ultimately, an amston trade. the holiday shopping trades. if it's so cold in -- what was it -- truth? where is the underwear capital of the world? >> duluth. >> those people in duluth are hunkered in and staying in the skivvies and means you're actually on amazon and ordering a bunch of christmas presents. amazon runs away from this. >> hold on. other side of the desk. other side of the desk. >> guy had skivvies in college, right? >> what do you mean, had? >> i would go to the retail space but the automotive. i go o'reilly automotive after you get plows, spreaders. things like that. >> spreaders. >> advanced auto parts, auto zone. and a name i always like talking about, deckers up 31%. they should actually kill it, you would think, on paper in a world like this. >> that's what you wear, right? the uggs. >> and the uggs.

what is that? think about what you're going to do. steve talks about this one. you know, it's not a pizza company. it's technology company. >> domino's. order in? >> i won't, but other people will. but also, you said it before. netflix. >> netflix. >> look at that at 123. >> i mean, that's -- ultimately, it has to come back to a trade you actually stand beside. >> i'll stand right beside it there, party boy! >> you like netflix right here. >> let it get to your head. >> the clipper effect. >> like my hat? >> it's mine, by the way. so is the scarf. >> so is the scarf. next up, ceo coca-cola stepping down after an eight-year run. will he be replaced? he will be replaced, i should say, by the president and chief operating officer quincy since he took over in 2008. the stock up 60%. but it struggled in the last few years as soda sales have continued to drop. it's been a decades-long drop, tim. you owned coke? >> i do. by the way, as maligned as coca-cola is, look at the five

year and ten-year chart. it's been sideways. the company and mr. quincy, i think, have been slowly preparing this company to get out of the core reliance on the carbonated soft drink industry and get to monster brands. they have another of other channels they continue to grow. they have gotten through refranchising the bottomlers. this is a very important time. this change has been in the books for two years. >> 70% of its sales still from soda. and isn't the core of the problem that 70% of the sales is from soda and that's a declining area? >>ty cli declining. one of the reasons why pepsi changed to coca-cola. one of the reasons they deserve a multiple. i'm not trying to put words in your mouth. >> would you rather. >> pepsi over coke because of the reasons you just mentioned. i do think this comes up coke. a choice between the two pep. >> consumer staple name? >> pepsi over coke. coke has challenges. >> i think you go coke.

if you look at it as the other two have had activists at some point in their names, and this one, when you read anything about it, what's the thing that stands in the way of an activist? buffett. 9%. if buffett somehow gets out of the way, you start to see maybe an activist run into coke or start rattling the cage of coke and there is your catchup trade. >> that's a lot of ifs, though. >> a very difficult time for the stock. owns 9% of the company. >> depends on how he gets out of the way. maybe if he starts to rattle cages. maybe if he starts talking about it. we have never seen him in an activist roles. but at a certain point if your stock is a poo-poo name, you start to rattle the cage. this is a family show. >> poo-poo name. i thought you were talking about something else. coming up, year-end bonuses on the rise and four stocks you should be buying. i'm melissa lee, and you're watching "fast money" on cnbc, first in business worldwide..

here's what else is coming up on "fast." >> i'm really rich. >> and so too are investors as the trump rally rages on. if you missed the move, relax. we've got the names you can still buy. plus -- ♪ ♪ up up and away >> goldman shares continue to rocket higher. there is something that suggests now might be the time to sell. we'll tell you what that is when "fast money" returns. a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley i'ts your tv, take it with you. with directv and at&t, stream live tv anywhere data-free. join directv today starting at $35/month.

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welcome back to "fast money." a restoration hardware plunging after reporting weaker than expected earnings after the bell. the luxury furniture giant blaming a number of things from delayed catalog to the presidential election for a rough quarter. time, this was your final trade a couple days ago. >> i have a position in it.

it's one that's going to kill me. i don't think anything has changed. i'm not surprised this is a company that went from 90 bucks down to 26, because it had problems. i think it's on the mend. a lot of it is inventory issues, a lot of it is getting their own specialty buyer program off the ground. i am a big believer in the thematic home improvement trade. these guys at this multiple, i think makes some sense. and this is a price to sales. the earnings multiple not that attractive. again, this is not a data throw this thing out the window. >> isn't it concerning when things are rocking the stock market, they said that the volatility in the stock market actually caused people to delay purchases? and then they're giving weak guidance for the fourth quarter already. we've had a rip in the stock market. >> sounds like they're lowering the bar, though. >> when do you start believing this management team? >> you have to believe the management team. one thing you can look at, you have a monster volume day today, at one point over 20% closed down 18%. talking about a stock with a short interest, probably either side of 50%. so the question now is, how much

room is left on the down side? maybe a little bit more. but any semblance of good news in the form of -- i don't know if they do month over month comp. sales. but anything positive and a 50% short interest, the stock goes up significantly. >> look, no question they got it down. the streets lowered numbers. definitely being conservative on fro front. i look and say, it's a story that takes time to fix. >> opening for a year-end bonus? more likely to happen this year. a new report out finds three quarters of companies plan to give a cash bonus, up from 67% last year. in lieu of final trades, we asked traders what stocks they would buy in extra cash. >> a bonus i would be conservative on. i don't want to blow it. maybe dave treats his bonus differently. but unilever. u.n., when i think about a company that's not going to hurt me. and top line not growing. except for the fact after being

a darling stock, pulled all the way back to below its 15-year historical to the s&p, bottom of a range tested multiple times in the last five years, it's unilever. it's no the going to run away from the pack but cheap relative to itself. >> how do you treat your bonus, david? >> make a lot of money with it. oled, which is universal displays, a stocked we talked about a lot in this show. the key ingredients with these oleg screens. iphone is going to be launching that new screen in their phone in '17. it's going to be a big upgrade because of the install basic so old. this is going to be a stock that works out. i think it could drift up to 100 bucks. >> steve? >> square. i'm a dorsey guy. i'm losing on twitter. down 50% year-to-date. square is up 6% year-to-date. i've brought it -- brought it to position. i love the angle of square financial. i think it's very interesting going forward. >> my bonus is getting to spend time with you good people here like leonardo dicaprio and

"titan "titanic." master card. you spend your money, spend it with plastic, sister! >> that does it for us here on "fast." see you back here monday at 5:00. meantime, "options action" starts right after the break. stay tuned. i'ts your tv, take it with you. with directv and at&t, stream live tv anywhere data-free. join directv today starting at $35/month. no extra monthly fees. ♪

hey, live at the nasdaq market site in this historic day at wall street. how you can profit from this amazing rally, getting ready for the show. while doing that, here's what's coming up. >> stock's going to pluto, man. >> that's what people are saying about the shares of goldman sachs. but there is something in the charts that suggests now might be the time to sell. we'll explain. plus, one stock is about to join the trump rally. and here's a hint. we'll break it down. and a number of stocks are at 52-week highs, and guess what? they could be going higher. high enough to get you rich we'll give you the names. the action begins right now.