that's where the hope is built up. >> economics may be better long term for the smaller ones, but trading numbers- -- >> and volume numbers have been good. >> that does it for "closing bell." "fast money" begins now. drug industry has been disastrous. they are leaving left and right. they supply our drugs but they don't make them here. and they're getting away with murder. phrma has a lot of lobbyists and power and there is very little bidding. we're the largest buyer of drugs in the world and yet we don't bid properly. and we'll save billions of dollars over a period of time. ♪ money, money, money the words from president-elect donald trump at his news conference today that

shocked wall street initially taking the market lower. we're live for "fast money" special's ten year anniversary week. we could not have better guests. we'll talk about trumpt's exhibits. and he torched buzz feed for publishing what he called fake news. and tom freston and shane smith will tell us what it means to media coy companies. and banks kick off earnings on friday and howard lutnick will tell us why the run is just starting. we're close to the original fast gang. we start off with a wimd day in the markets. the dow like an ekg reacting to every word trump said in his first news conference as the president-elect. gou mentioning to end the day up nearly 100 while the nasdaq closed at another record. but it was those comments about the drug industry that really hit the markets.

pfizer, bristol-myers and johnson & johnson all falling. and biotech stocks taking it on the chin. the group falling 3%. until today, biotech are were the best performing groups. are they suddenly a no touch? and we were talking about trump stocks just yesterday. >> i still say i think the ibb will rally. to answer your question, is he a detriment? absolutely. but when you speak in platitude, there has to be something behind it. we don't bid anymore and we will save billions of dollars. i'd love to hear facts behind that. i'm not certain that is the case. some of these stocks are xheep. we talked about it last night. forget about valuation and the drugs they have. the science behind many of these companies actually works. there is value thp. you want a stock play, i'll give you one. johnson & johnson trades 16

times forward earnings. more brands business. so proctor and gamble probably shouldn't be there, but i think j and j goes higher. >> but speaking of platitudes, all anyone has done with the exception of a handful of things like epipen, it gets back to what we talked about with gilead. fact of the matter is a lot of these stocks have this priced in and most analysts price it on pure biotech. so they put in a discounts factor. you can't tell me that biopharma stocks don't trade with a discounts factor. >> can they have a bigger discounts today than yesterday? we had the exact same argument yesterday. to me this is a great issue for him because we got all these trade issues. this is america. we do to ourselves.

we're not allowed to negotiate. it's ridiculous. walmart, do you think they just pay whatever the supplier says to pay? it's ridiculous. so he has a great issue here and i really think that rye form never should have been in place at the time. it's an easy one for him to get rid of. i think this will overhang this sector for a while. >> and it will take a while to wade through this process. fr >> and what we're seeing is what we've seen throughout. he puts out tweets. he has some statements. but in all honest tu, i look back at all the previous tweets. some of the other statements that he's made. you look at those stock, they have recovered pretty well off of some of the hits that they took. they got hit and then they come back. i look at the pharmaceutical names. that will be a negotiation point. and when gets together with many of these various ceos, they cca

educate on what it takes to get the drugs to market. yes, i think some of the numbers will come down. but they won't come down so far that i think it impacts their earnings going forward. >> but the tactic be like with boeing and ford and he will deal individually with the company as opposed to a grander issue. the bigger risk, the government should negotiate. >> i will say could he do that? he could absolutely do that. to pete's point, though, the understanding the pharmaceutical industry, it's easy to say these drugs are overpriced, we're not bidding, we're getting fleeced. the reality is if you want new innovation and new drugs, there is a lot that go into these companies. the last thing any of us want is

for the foopharmaceutical compas to say see you later. >> you can't tell me that this overhang is any different than before the election. so you have to pick stocks. johnson and johnson, they get their growth and their multiple comes from volume growth. it didn't come from exotic biotech. 70% comes from volume. >> do you buy? >> johnson and johnson at its current multiple and there a broader alley al goley gory tru is doing which will tell you why the dollar weakening.gory trumps doing which will tell you why the dollar weakening. so phrma comes get very beingat. >> how about the fact ibb is at the moving day average. and the implied volatiles of the ibb, xbi, xlv, those dpidn't go

anywhere today. you'd expect by the way we've reacted that they are getting slammed to the down side. >> when we get a bad tape and -- >> but you're arguing the wrong argument. yes, we're in a bull market. based on what we normally see, why wouldn't the volatility spike to the up side? why is it from 11st to over 12? we did not see that happen in those names. that tells me a lot. to over 12? we did not see that happen in those names. that tells me a lot.t to over 1? we did not see that happen in those names. that tells me a lot. >> you can't tell me weaks that are stocker, stocks in a might be potentially under more pressure won't sell off even more. nothing is moving right now. people are waiting for reallocation to get through. i think they're under pressure. >> what did you buy? >> i did buy health care name,

but i want to save it for later on. it's a tease. >> for more, let's break in mohammad el-erian to bring in him take. >> happy anniversary and thanks for ten yiears of insight. >> thank you so much. what is the biggest risk at this point. >> >> let me add to your discussion. step back, this has been a textbook rally. >> let me add t discussion. step back, this has been a textbook rally. >> let me add t discussion. step back, this has been a textbook rally.>> let me add to discussion. step back, this has been a textbook rally. it starts with a reaction at the asset class level to higher growth, higher inflation. so equity risk, credit risk does well. you get specific reactions to deregulation, to corporate tax reform. financials do extremely well. and then you get the rest of the world catching up in the advanced economies and tech catching up. so it's important when you talk about sector to recognize that we are having a classic feks

bo textbook rally going on. the next step and the big step is to take everything higher including emerging countries. and that is the can he question sustaining it which you mean pro growth announcement. you need the republican congress to work well with president-elect trump. and you need the rest of the world to stay out of trouble. so those are the three tlihings that you need. and if you do that, you will see a catch up among the lag ards. >> so to you see a third step after that as we go from the middle part of the rally to an overheated blow off top of the rally? >> yeah, i worry about that because we starting at such high valuations. i also worry about central banks will be stepping back. so my overall approach is at this point do you want to somewhat reduce your risk

overall, pay down your dollars at risk, but take advantage of some internal rotation. and be very careful and if and when we go higher, continue that strategy. >> so the rotation that we've seen since the return to the new calendar year, do you like those sorts of trades? >> when you had me before, i kept on saying tech cannot lag for that long. and it is catching up. i think the big question and where a lot of money can be made is in the emerging world. they have not shared in this rally. you're getting an eye-popping valuations on things like the mexico pay so that that we need only that much at the end of the day. so the big question now is whether you get the emerging world catching up with the advanced economies. europe has been catching up and

on the fixed income side, you've seen the differential between the treasuries and boons come down again. we're at 200 basis points. >> okay. we'll leave it there. thanks so much for joining us. emerging markets. >> so 36.25 on the eem is a very important level to get through. it's not the holily great dee h deal oig. so the dollar is saying i need more data, i need implementation is far down the road. i need border tax. it's great for emerging. remember, emerging has outperformed s&p by about 6.5% but destroyed by 15% under performance to the s&p after the election. stay in that trade. >> and what did you do? >> i didn't do anything. what i want to do is sell some up side airline calls. it's been a really nice run, you about i feel like i have to take

a little money off the table. >> and pete has been talking about these forever. but goldman sachs on the earnings on the 18th sets up really well because i think people are looking at banks on a price to book basis and they're saying at 1.35 times, it's cheap and i said think you can see is north of 300 bucks. >> and you've been more cautious on the market. if any sector is set up to trip and fall it's banks. >> and i agree. i've been wrong to be cautious. >> and i'm laughing because the banks are not going to trip. because you look back at last quarter and what is coming up in front of us, you can see what they did. they are looking ahead. and i'm telling you, jpmorgan,

morgan stanley, still going higher. coming up, the former ceo of viacom tom freston and shane smith will weigh in over the battle of fake news. and plus reporting earnings on friday morning before the bell. howard will you telutnick says room to run. and jim cramer will be here to give us the stock he's betting on for the next ten years. of more for a very special "fast money" right after this. take one.

directv now. stream all your entertainment! anywhere!

anytime! can we lose the 'all'. there's no cbs and we don't have a ton of sports. anywhere, any... let's lose the 'anywhere, anytime' too. you can't download on-the-go, there's no dvr, yada yada yada. stream some stuff! somewhere! sometimes! you totally nailed that buddy. simple. don't let directv now limit your entertainment. only xfinity gives you more to stream to any screen. welcome back. before there was "fast money," there was "mad money." and one guy that paved the way for this show and that is our friend jim cramer. so great to have you on. thank you. >> i'm so proud of you. i love your show. it's difficult for me to be on your show, but i'm honored to appear on your tenth anniversary. >> thanks, jim. so we have to get your pick for

the next ten years. >> i will pick a company that is in a sector that i like and it's a house old name. general electric. which i think is really finally after so many years set to be able to participate correctly in the aerospace market. it has a ten year road map. many more people traveling. general electric. >> trump risk to ge? >> we always have china risk because of the belief that i think that trump thinks that we've been in the trade war and we've been losing, i know they have addressed it. i don't want to be in just a pure domestic because i do like the long term secular growth of a boeing, of honeywell. i'm picking ge because i like the deal where they're getting out so to speak of oil and gas. i do positi think that a large l

is a great place to be. >> what is coming up on "mad money"? >> i'm picking a stock that i think is -- found one health care stock that i'm not worried about and i will talk about that. and i also have a company called pegasus that does cloud based let's say that does all the paperwork but does it on a compute computer. and i'm excited about seeing you after some show when do you your anniversary party. >> we'll look forward to that. the one and only jim cramer. of course top of the other "mad money." so what do we think, guy? >> ge is getting back to where they were 10, 15 years ago. they lost their way for good reasons and for bad reasons. but i think they're being becoming more and more an aerospace company like honeywell is and they deserve the same

valuation. a stock that has language inqui languished is poised to take over. >> and i can give you a shout out to jimmy? he's the best. i have a household name, too. facebook. you always want to pick something going forward not just if what they have got but for the management team. and if they can think that team together, zuckk mark zuckerberg has a plan. he has growth, a very, very sticky group of people that want to be there. 1.7 billion of them and the acquisitions have all continued to work out if them. it's a ichlai, vr. there a growth in facebook and it will only get cheaper. >> karen. >> for me, it's google. alphabet which i'll never get

used to. i love it, but similar to facebook, i love that they're always try doing neat things. we've seen some of the same letters ai, ml, machine learning, vr probably in there, as well. and i think that the balance sheet is pristine. hopefully they will do financial engineering because they generate aridiculous amount of cash. but always pushing so i will be long that. >> "mad money" is nice lead-in for us. i'm going with an index because i'm uncomfortable buying a stock for ten years. turkey obviously blown up on the back the politics. some of the best corporates in emerging mar tkets is devalued three times. you stay in this trade for ten years, this is a world class

country, great demographics. >> without jc, there is no "mad money." and amazon is the play for me. valuation is ridiculous and it's am sop woerld that we're living in. and coming up, the good times are just start. howard lit knick will tell us why he had him so bullish. it's a disgrace that information that was fault and fake got released to the public as far as buzz feed which is a failing pile of garbage, writing it, i think they will suffer the consequenc consequences. >> but according to the heads of vice, the battle over fake news is just heating up. tom freston and shane smith will tell us what it 3450e7s.

and plus pete pitches what he says could an hot stock for your portfolio. the name when fath money returns. respect espect ct

♪ many birthday to you ♪ happy birthday to you

. welcome back to fast money. our ten year anniversary week continues. welcome back to f. our ten year anniversary week continues. he still ahead, shane smith and tom freston with an important message for the president-elect and his war on fake news.

and plus howard lutnick will tell us what we can expect. but first we start off with a report regarding president-elect donald trump and his ties to russia. putting buzz feed in the news spotlight. julia boorstin has the details. >> donald trump attacking buzz feed. >> i think it's a disgrace in a information that was false and fake and never happened got released to the public. as far as buzz feed which is a failing pile of garbage, writing it, i think they will suffer the consequences. they already are. >> buzz feed tappi istanding by decision to americans can make up their own minds. this post which has drawn 3.7

million views shines a spotlight on the digital media platform's standard. traditional outlets would not publish it, but this and other fast growing digital media platforms have drawn the interests of traditional media giants. for instance cnbc's parent nbc universal own as stake in buzz feed. and disney on its own, as well. vice media operates everything from news apsports to food, gaming and music drawing morning 200 million people globally each month. it also produce as daily and weekly show for hbo along with special documentaries. this is hbo looks to type into vice's appeal to millennials in

particular back to you. >> for more, joining us is tom fr freston and shane smith. thanks for joining us. beautiful backdrop. shane, do you think buzz feed made a mistake in publishing thes the docier? >> i would work for advice and we have our own protocols for our newsroom. but the fake news thing is getting worries. frg buzz feed has some of best prorters in the business and i won't say what protocols we would have done but i think calling them fake news does a disservice. >> and you chose not publish the

unfiltered report which buzz feed says are allegations which really are unsan bernardiubstan claims. >> and how sfraenlg is to go after policy, so i think one thing that people are overlooking is you have sessions and tillerson in their senate confirmation hearings which are highly it disturning and a lot foregoing in there. and have the media virus storm. our strategy is to go after the policy. things like the till eer man or sessions confirmation. so we go after logic.

>> tom, you're an early backer and believer in vice. what sort of opportunity sg this fake news war bring to advice specifically? >> well, i don't know that fake news bring great opportunity, but in this charged political environment, what we found is the millennial audience is very much interested in news. i think that is true probably for more demographics. so vice and its news operation stands to benefit from this additional interest. >> i think if you look at cnn and you have the gulf war sort of building cnn, what is happening politically with brix and in france and italy, it's actually the right praight plac right time for us. because millennials became the largest demographic cohort and are feeling left out and still

this political power is by and large held byerboomers. >> tom, what is your take on what sort of possible damage networks could damage if labeled face news? donald trump declineded a question from cnn because he said fake news. and shares went lower. could this be damaging longer term for these networks? >> you look at cnn, they have a long great layer damaheritage a thing won't resident nature with its viewers. it would be hard to understand how that woulden the case. but no -- it certainly is you been press departmented what is happening here. >> and i think if you see- -- i

trump bashes somebody, for example van iity fair their shas went up about. >> and i think there is new bad management. i'm not close to it, and they know they have their work cut out for about about fp i think they can rebound, but a cloud has lifted. >> and shane, do you still foresee a blood bath in media. >> i think you're seeing a blood bath and the the eit's just beginning. you will see a consolidation. you're seeing unicorns going out of business an people laying off

30%, 40% of their staff. i think there will be a real call in the digital world and that's why we moved to multiscreen, mulgity pl tmultip when we did. >> does the trump era throw a lifeline? you have this great wealth of information and disinformation to report on. >> you can't argue against that. i think that not only mainstream media outlets have sort of ridden the trump wave. so have we. and there koopcouldn't be a timd our growth has been stratosphere rick because there is so much stuff to write about. and it's sad.stratosphererick b is so much stuff to write about. and it's sad. that is this what we're fixated

upon, but we can't look away. if you were to say there are allegations of hacking and spying and blackmailing, that is crazy. like a movie script. and all of a sudden people are reporting on it and it bob beco reality. we were saying can you believe this is happening. not just america, but the world is saying that. and if you have a news organization, you will reap the benefits of that. >> i can't believe that as news organizations we can actually say those things in regular reports these days. along the lines though of shake saying that there will be a blood path, consolidation, do you see more tie ups happening? will it be maybe a network buying a wireless company? >> you can repeat the last part? i think in terms of the blood

path, i don't think that you will see any great blood bath where you have a lot of companies that are reliant primarily onbath, i don't think will see any great blood bath where you have a lot of companies that are reliant primarily onath, i don't think will see any great blood bath where you have a lot of companies that are reliant primarily onath, i don't think l see any great blood bath where you have a lot of companies that are reliant primarily onbath, i will see any great blood bath where you have a lot of companies that are reliant primarily on on advertising revenue. so unless you're a digital company with additional revenue streams along the model advice oig has been able to build, you're heading into precarious times. so there will have to be a lot of adaptation. >> all right. we'll leave it there. thank you both so many. tom freston and shane smith. >> so let's discuss. >> excellent timing. just the crazy press conference today. interesting to me i look at something like a disney, i'm afraid for a disney because we talked about espn for a long time. now disney has rebounded.

probably 90 to 107. but of a frac i'm afraid of the changing land escape. >> they have embraced the multiplatform. yes, some of the numbers are down. and i think the political season was really something that was very telling in terms of espn. i think those newspapers do come back. but that is priced in. i think when you look at the rest of model respectpers do co back. but that is priced in. i think when you look at the rest of model respect respect, that? the right direction. >> to me viacom, they have had a turnaround, they have given some revisions to the numbers. and if anyone has tie to the millennialses it is probably these guys. but we forget viacom is the place to go because it's valuation on a turn. >> you know what shanoe whknown

about the could you ntry divide. can't be great in terms of the deal getting done. >> but it matter for time waernr the stock. still ahead, financials are in focus as wells fargo, jpmorgan and bank of america kicks off earnings. howard lutnick will be here to weigh in. and plus the stock pete says could be your prescription for profits. he'll give us his fast pitch. ffrs arm ol

. time for the past pitch where a trade are pitches a stock that they being is worth the stock. what is your pitch? >> i'm looking at hugh plan in a. man humana.

medicare advantage, when looking for growth, we're seeing growth in membership. so that is something i think that feeds in very strong. fundamentals, it's always about fundamentals for matter what company we talk about. when you go back to q3, beat on earnings, beat on the revenue, $55 billion in revenue. full year forecast looks strong. 950. talking about 55 wld $55 wl5 $5 revenues and sthey bought back 10% of their shares. i think as a share toholder you will like that. they came into february buying the 220 strike calls. and they sold down side puts. it tells that you somebody is extremely bullish on this stock. they think it is going higher. and there is still a bid somewhere floating away from aetna for 230 buck s a share.

i think it's going higher. >> do you have any questions? >> and i have question. obamacare, repeal of obamacare, how does that play in? >> that will be extremely bullish for them. that is something that is one more feather in their cap going forward would be repeal of obamacare. >> okay. we'll vote. >> love the votes. what does that say? i know people say valuation is too rich. i say the stock languished. and i think '17 is the year it gets its mojo back. >> i'm buying it. and i think it deserves a premium. buyer. >> two for two. >> and let's make it three for free. >> i'm a buyer, too. wouldn't be terrible to have some additional.

>> almost unprecedented. >> appreciate it, guys. coming up, financials. can the rally continue as many of the big banks get ready to release earning the later this week. howard lutnick will weigh in. owe di b..rohacontonul th vaunsumpart. sh

welcome back. just one more trading day before earnings season begins. it starts with jpmorgan, wells fargo and bank of america. financials have surged 18%. can the run kin continue? who better to ask than howard lutnick. the last time you were on, we were asking if this would be a quick rally and here we are, we're still going sdrtrong. >> this is love, not like. financials will do better and better. a year from now, we will talk about how financials continue to

power forward pop t. the world has changed. the banks will be able to be themselves again and that you haven't seen in years. these are great companies. >> the world hasn't changed quite yet though. so if there is a base case scenario factor in what is going on fundamentally which could be a steepening yield curve? >> let's talk about dodd-frank. chris dodd was a democrat. bernie frank was a democrat. the president was a democrat. how many republicans did they ask? none. how many democrats are they going to ask when i they rip it up? none. so the volcker rule says the the bank can't trade unless you have a client on the other side pup let the banks go back to doing what they go back, they will just make more money.

and last thing, the controller of the currency under obama would say you can't lend to energy companies because i rate them high risk. they made all energy companies in america high risk so the big money center banks koopts lend to energy. you let though banks go back to lending, they will have deep rich earning. dodd-frank is going away. >> but with the changes, withal mo the banks will go back to what they had done before the regulations took place. the banks will go back to what they had done before the regulations took place. to assume that they can close the gap in valuation is a tall order. so is your expectation that the banks will actually embrace some

of the riskier behaviors that were -- >> the law of land will remain that you have to have the capital to take your risk. that is never going away. you have to put up the money to take your risk which we all agree that makes sense. so the u.s. banks are in great shape compared to the rest of the world. so if you just let them do their business compared to where they were, you will see great numbers. like my public company bgc, the more volume they do, it's great. so bgc's numbers are doing great because the banks are able to now trade. i really think the banks are going to do secretapectacularly. and when covolcker goes away, wt

you will hear is a cheer that you have never heard. a cheer saying we get to be ourselves again. >> some are in secular decline. so there are reasons why it's not as profitable as it used to be. which of your businesses is the most exciting. banking, ib, where are you? >> why is it in secular dwee klein? >> because transparency of pricing means no one is making as much money.>> because transp pricing means no one is making as much money. >> thuchl onumber one business income and i think what has happened is we've spent five full years with this elizabeth

warren's foot on the neck of these banks. and now guess what, she's on the wrong side of aisle. they're not talking to her. banks will stretch out and they will become great lenders and great players. so my view is we are not in secular decline in fixed income. these banks will do beautifully, and these are great companies that are fink and he will going to get to stand up, take a deep breath about th breath. you have not seen what they are kanl capable for five year. we hate the volcker rule. and it's going bye-bye. and that is great stuff. >> howard, thank you. are you a buyer? >> pete has been on this, but i'll say this, i don't think banks are going to the valuation

in terms of price to book, but i think they will get close. so assuming tangible book doesn't mean, a $305 stock. >> i do think that we're in the middle of a repricing of banks. i think the valuations they get will improve, as well. >> if you have profits, how can you protect them? dan nathan is at the smart board with today's options action. >> i do not share the same entuesday yacentu entuesde ennews yam en th ennews enthusiasm as howard does. let's talk about using sector etfs to hedge a portfolio stocks. some are up good 20% and 20%. why would you use a sector e

stch to hedge? you can use them in a tactical faction. we have earnings starting this week. and they will be cheaper to trade. so here is the ramp. it spent the last month consolidating. to me it looks like there is a big air pocket there. one thing about deregulation, we don't know. maybe that comes with higher leverage ratios. it means low er return on capital. this is the chart dating back to 2017. if you open the stoyou own the to april. you could buy the april 23 put

playing 75 crepts for that and breaks even. pretty good protection. >> what is going to happen ha t hasn't happened yet. so we have the reality of the situation. would you look to protect? >> i would. and also if you do xlf puts, you can continue to hold your specific bank stocks. so tax-wise as well. >> and howard brought up the fact it was up 45% for jpmorgan just last quarter. unreal. and before any dereg. >> so information, check out 5:30 eastern on fridays. up next, pete seeing huge activity. now the time to buy.

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time for the final trade. pete. >> aks, it's going higher. options are active.

>> and if it's good enough for the ten year trade, good enough for tonight. google. >> and i would take el-erian's trade. >> and thanks for more "fast mo" "mad money" starts now. 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 make you some money. my job is not just to entertain but to educate you. so call me at 1-800-743-cnbc or tweet me @jimcramer. did someone forget to tell trump about the trump rally? didn't any of these business advisers let him kno