we can maintain this momentum. >> without a doubt. that's okay. in terms of the market as a whole the question remains how much of that was already figured out. you might have a problem with some complacency. but the market looks intact. >> you've had a long day. we'll let you go. that does it for "closing bell" and "fast money" begins now. >> "fast money" starts right now. live from the nasdaq market in new york city's times square. dow lives on. the dow jumping to new highs. s&p and nasdaq making new intraday highs. the we start off with the biggest story that would be earnings. alphabet, microsoft, intel, starbucks all reporting after the bell all on the move. we got full team coverage of all this action. deidra bossa, adit did i roy is

covering starbucks. jess getting under way and he's got his left hand on the other red phone or right hand. ready for that microsoft call which will start off in just about a half hour's time. out of washington, let's get to eamon javers. >> reporter: focused on those comments by sean spicer, board air force one today talking about a border tax. let me tell you whatson spicer said this afternoon. if you tax the $50 billion at 20% which is, by the way, a practiced that 160 other countries do by doing that we can do $10 billion a year in tax revenue and easily pay for the border wall just through that mechanism that is a 20% tax on imports. that comment got a lot of attention this afternoon just a few moments ago.

sean spicer invited a few of us in to his office to clarify those comments. he wanted to emphasize that his comments were not prescriptive. this is not saying what our plan is. he's saying this is just one of a number of options. and, in fact, the white house chief of staff reince priebus came into the room while we were talking and said, we should emphasize this is one of a buffet of options out there. so the white house saying they're not walking back those comments, they're just seeking to clarify them by adding additional detail. a couple of other points here. i asked sean spicer how ceos should react to the idea of a 20% border tax of imports coming in, won't that increase prices. what spicer said ultimately the president here is responsible for the american voters and he said the president's going to put american workers first. i also asked him how this would all work. there are dynamic effects in his term of what would happen with

the border tax that would create other benefits for american consumers and for american companies including lower cost they said of law enforcement and other things and the idea would be ultimately if wages were higher and more people were working in the u.s., net, net that would be a good thing for the u.s. economy. he explained his thinking on that 20% border tax from mexico but also clarified that they are not prescribing that. they're not announcing it or rolling it out but they're just discussing it and reince priebus's words the white house chief of staff that's just one of a buffet of options at this point. that's important news from the white house. >> thanks for that update and the collarification there. let's talk about this because already in the day we saw a pretty sharp reaction. we saw the action in the mexico etf, the peso of course was on the move. >> it's other countries as well. almost sounds like mexico's not being signalled out. this is not a mexico story, this is an everything story.

when you look at the peso, the peso is was up about 53 basis points, if you look at how the peso's traded it had already priced in 70% probability of a 20% tariff. ultimately you get to a place here where i thought the election was going to be the crescendo for the peso. it's 3% higher. look at names like ksu and constellation brands. really the unknown is enough to keep you away from those stocks. the growth comps over the last couple years is very difficult for them to achieve in a world even without this tariff. i get the selloff. probably remained somewhat no touch. you may be setting up for a great opportunity. kansas city southern to me is one of the highest growth company before this happens. >> we'll have much more on mexico and president trump later on.

let's get back to the earnings picture. alphabet, google is still down. the bank stocks they've been on fire so what do these results mean for the tech and the mega names in particular. >> alphabet in particular the stock has been literally up in a straight line 10%. i think the couple things to take a look at but the cost per paid click down 15%. in q3 was down 11% so that decline is accelerating a little bit. the flip side of that is their other bets, the whole alphabet here, they saw an increase in sales of 60% or so. that's their new digital assistant. good things going on there. in general i don't think there's any massive cause for alarm. so expectations were high. >> that second part that dan was

talking about, the other bets. their spending was up but that's because they have other products out there. you have to ask yourself is google going to get the same type of pass that amazon would get when they spend money they know they're going to make it at someplace else. i think they should. i would give them that bet. i think down 3% on this news barring anything crazy coming out of the conference call i think google's a buy right here. >> why doesn't it get that free pass. >> why doesn't it? historic alley they've had quarters where they crush and other quarters where they come out with something you didn't expect so i think -- i don't think they have the clarity in their business that a lot of other companies have or the clarity they should have. so i think they don't get the pass because of that. in terms of where you buy the stock, the stock was 760 in november. the 50% correction off that is 810. does it get there tomorrow. i'm not certain but i think there's enough in here. >> they get the benefit of the doubt you're getting high teens

growth and high teens multiple. everything's all time high so when i look at where valuations matter right here this is a company that has four maybe five unmonetized businesses north of a billion dollars that you just said are starting to produce. when you got a core that's very predictable -- they're paying more for clicks. some of those margins are less significantly than they used to be. that's a cash cow and the company that's giving you the best valuation within that fan group or within big fan tech for that matter. >> you don't have to buy stocks at all time highs. i know the market is at all time highs. i just want to reference something that bob peck a friend of the show, last year after they reported their q3 they have seven properties with a billion users. google has seven properties with a billion users. we obsessed over facebook's 1.7 daily active users. if they ever get the hardware right, i agree with you, it could take off. >> let's turn to microsoft.

>> we talked about it yesterday. one stock you're looking tomorrow in terms of where do you potentially see movement to the upside. we talked about microsoft. it's not as robust as i thought it would be in terms of the move in the after-hours. maybe it's been mitigated by some of the other names. microsoft and we talked about it, they seemed to have made the transition better than most of the other companies out there, valuation is still reasonable and i think you could still even with the stock up in after-hours you can still own the name. >> if you had to choose, aka, would you rather? >> would you rather? >> alphabet or -- >> so -- >> listen, i'm not as smart as dan pretends to be so you got to do those things with me. what i would say about those two and it's not a knock on microsoft since alphabet is down 3% and unjustifiably so i would go with alphabet because it's a better buy here. >> i'm going to try that sound smart here. you were talking about high teens growth and that sort of

thing. you're getting growths at reasonable price with google. microsoft you're really not. it's trading 22 times fiscal 2017. low single digits so i much prefer google than the microsoft. >> we've got one analysts covering two different calls in two different stocks for us, alphabet and microsoft. david gart is here. put down that red phone. what have you gleaned from the call so far, david? >> said for the fourth quarter they were firing on all cylinders. this is something we saw in terms of top line growth. after-hours was more reaction in what they're margins are doing but the company is basically making very strong indications relative to the growth of their cloud platform. they're now up to over 3 million paid business users of their q suite. this for us argues more toward

enterprise. they talked very strongly about their strength in mobile. how this was helping to drive store visits by traditional retailers from that standpoint we certainly see a move here being made by google, alphabet that obviously partner with more traditional businesses and try to find ways to leverage a digital offline model which we think at the end of the day probably drives people to use google more than perhaps other competitors. >> how concerning is the cost per click met trick considering in the last quarter was one of the worst in years? >> it's always been a difficult for them and certainly this transition over towards mobile, you know, driving more and more of the searches. the certainly is going to be something they have as a head wind. they haven't talked necessarily about the change in terms of their mobile ad formats but those are going to be rolling in during the first quarter, which certainly should serve to improve money tiesization. it play slow the rate.

obviously the q&a hasn't gotten to that yet. it may very well. >> ultimately on google what is the next corporate style action or forget the exciting things that are going on in the cloud and hardware, whether it's on the corporate suite or whether it's actually from a tax perspective what's the most exciting part of that in the google store that you like here? what's next driver for investors? >> i think in terms of for investors, it may be small but rightly named area for the company in terms of other bets, what might be coming out as far as driveless vehicles are concerned. certainly expectations in 2017 to see greater adoption. we will be getting to a situation where we're starting to see these business lines broken out separately as they're starting to scale. certainly as they scale they stop being a source of losses because of investment and potentially an area of growth not only top but also bottom line. >> we'll check in with you later on. microsoft call we'll get under

way in just about 20 minutes time. we're setting record highs across the indexes. how important is this google myth because it's down 3%. >> it doesn't get sloppy. when you think about how much it ran. look at microsoft on the flip side of that. these two companies are trillion dollars in market cap combined. microsoft's been consolidated for the last 6 weeks. up or down i don't think it changes anything in either one of these things. earlier in the week we started this conversation -- we started to see single stock volatility today. you start stocks southwest air was up 7%, we saw a lot of this moving around, around earnings. we're going to continue to see that. one of the views i had with volatility as low as it is if you wanted to stay in these names you could look at the qqq because they're really cheap. so i think as you get deeper into earning season you may want to avoid some of the single stock risk. >> when i heard the numbers

today i heard that these are two companies that have very exciting ambitions and in some cases truly executing. if you want to get excited about microsoft, people are giving amazon a multiple to the moon because that have growth. with pc shipments improving you could make an argument that this is feeding microsoft. but you can make some arguments that that might be -- >> soggy? >> i don't even know where to go with that. >> when you referred to microsoft valuation's earlier compared to google, what did you say? >> it was lofty. >> she actually listens to us. >> sometimes i do. >> i heard soggy. >> still ahead we're covering all of the major earnings report throughout the hour including starbucks. we'll hear from outgoing howard schultz for the final time. the, inc. isn't even dry but another huge media deal could be around the corner.

tensions rising between the u.s. and mexico as president trump announce a's major meeting between the two allies has been cancelled. this could mean trouble ahead for the markets. much more "fast money" after this. runs on intel? that ride share? you actually rode here on the cloud. did not feel like a cloud... that driverless car? i have seen it all. intel's driving...the future! traffic lights, street lamps. business runs on the cloud... and the cloud runs on intel. ♪ i wonder what the other 2% runs on...(car horn) hey steve check out this guys leg. yeah looks like a real nasty moving back in with his parents. what? no. i just broke my leg. no, this is a full blown move in to the basement, you're gonna be out of work without that money from... aflac! you might miss your rent. aww i just moved out.

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. money." check out shares of charter communications soaring more than 7%. verizon dipping 1%. this all on a "the wall street journal" of a potential merger between the two. julia? >> that's right. the "the wall street journal" report that verizon is exploring a combination with charter communications sending both stocks moving. charter up and verizon down. the journal saying that verizon ceo made a preliminary approach to officials close to charter. this as there's growing except six about whether verizon will close it's deal with yahoo in light of yahoo's data breech. those in favor reported there's no significant talks taking place between verizon and charter. those stocks held on to their moves. and dish which was considered an acquisition target for verizon, rising on that speculation over the past few days plummeted today. its stock down about 7%.

analysts have been weighing in. writing about two big hurdles to this potential verizon charter deal saying, quote the first is financial. can verizon afford it, we suspect not. the second is regulatory. could a verizon/charter deal clear antitrust hurdles? we're not sure. the near term likelihood of a deal is less than 10% with the chances growing to 25% over the next 18 months. hair gan says the transaction does make since strategically would pass -- surpass 59 million homes as 3 million more than comcast has. one thing's for sure, this is just the beginning of major speculation but all possible combinations of telecom, cable and media companies. >> it's a new world. thank you for that. let's talk about this and what exactly -- if verizon's going after the number two cable number in the united states, when it has five g coming down

the pike what does it say about their aspirations in terms of the success of a 5 g will offer cable like speed over wireless. >> they want to offer all content over all devices and what happens if this deal does happen whether it gets confirmed or not or the feds let it go through then comcast is going to buy t-mobile or sprint or maybe t-mobile and sprint have to combine again first. it's going to be this whole vertical integration thing again. ten years from now they're all going to split up again because it's going to be -- we've seen this before. it's happened again and again over the last 15 years with these sorts of companies so it's likely happening. >> it's at&t has a head start, a 3 year head start. i think it was the spring of 2014 and that's actually worked out rather well for them. i think that's the reason why i favor at&t over verizon and the reason why -- >> even if it's a verizon/charter tie-up? if you compare at&t versus a

verizon charter tie up. >> which one do you like? i don't know the answer to that question. it's a would you rather -- >> exactly. >> looking into the future would you rather. >> we need a crystal ball. >> it's very difficult. >> right now i would rather at&t over verizon. >> really? >> you know what i would take verizon and it's the way they stock traded today. it sold off on a what people are saying a 10% chance that this deal goes through. so what happens if there is no deal? the stock rises. what happens if there is a deal? one it's already into the stock, number two depending on how the deal is structured you may have our players coming in having to buy verizon selling charter to capture that spread. verizon seems like the best bet no matter what happens here. >> doesn't it underscore what dan is saying. they're scrambling to do a deal and they're caught behind. the other thing about these types of deals, what is the valuation -- you formally bought these stocks for as an investor,

which was primarily dividend yield they're going to spend more money, they're going to be investing in businesses where it's somewhat and we're hoping the industry changes in their favor. vertical integration, there's a lot of reasons why company's are broken up and that's one of the reasons. i own at&t. i actually feel this stock can increase the multiple over the next couple years i stay there. >> alphabet, microsoft, intel, starbucks all on the move after hours. you're watching "fast money" first in business worldwide. here what else is coming up on fa "fast". >> the president of mexico and myself have agreed to cancel our meeting for next weeking. >> the tension between trump and mexico is heating up and that could spell trouble for a number of stocks. plus it's the one dow stock that traders see surging nechlgt week and we'll give you the name when "fast money" returns.

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and while some may say the desert is desolate... we prefer secluded. what is the desert? it's absolutely what you need right now. absolutely scottsdale. welcome back to "fast money." we are live at the nasdaq market on another record day on wall street. hitting new highs in today's session. the s&p 2,300 level while the dow closed at a record. crazy night for earnings. alphabet, microsoft, intel, star bach all moving around in the afterhour sessions. we've got full team coverage of those calls.

we're going to get those earnings reports in just a few moments but we start off with the other big story of the day and that is the mounting tensions between the u.s./mexico president trump and mexican president pena nieto cancelling a planned meeting next week. trump addressed the issue in a news conference earlier. >> the president of mexico and myself have agreed to cancel our planned meeting scheduled for next week, unless mexico is going to treat the united states fairly, with respect, such a meeting would be fruitless and i want to go a different route. we have no choice. >> later .white house press secretary sean spicer that the trump administration would look to impose a 20% border tax on imports for mexico to pay for the wall. he later clarified those comments saying that 20% tax was just a proposal and trump's chief-of-staff said it's one of

many options. for more let's bring in dom chu. >> it's a pleasure to be here for "fast money" but let's talk about the currency pair dollar/mexican peso. and is candidacy before that than the mexican peso. these record kind of highs that we seen for the dollar against the peso, record lows forts peso have been exacerbated by trump recently. you can see the trend over the last couple years has been one of dollar strength. one that's not at all unfamiliar with many traders out there. if you take -- again this is an etf that tracks it. you can see it's been a bumpy ride for one of these particular etfs and you can see here, this huge drop down, i'm going to give you two guesses for what happened there. that was the election sending these mexican stocks traded in

the u.s. for this etf lower and that's a big deal because if you take a look overall the mexico etf today traded -- we had 10 earlier it's now closer to around 12 million shares that traded today. on average over the past 90 days it only trades 5 million shares a day. but remember when it comes to these etfs, something you guys no very well the currency moves do matter in this case here guys. it really did matter for the peso against the u.s. dollar and how it treated this particular etf. >> should we invite dom over? >> no. no. >> the guy came all the way here. >> we've been asking for this for a long time. >> bring him in. >> thank you. >> we got the themes and everything. it's fachk. >> i love the fact -- >> welcome buddy. in terms of i'm going to go to in terms of what is in that

ishares cap what is in it? a weak peso is. >> you have wall max, you have groupa mexico in addition to a few minor. remember a depreciations currency if you're an exporter of something in dollars does very well. there's certain parts of this for mexico that are actually not bad and i would make an argument that the move from 13.5 to 19 was not only a dollar em cross currency move and declining oil production in mexico. they've got a big problem with that. i actually look at the eww at 42 bucks which is the low and say that's your bottom to trade from and i actually think, 70% of this move, 20% tariffs is in that currency right now. you push lower. >> so could this growing tension between the u.s. and mexico trigger a trade war? let's bring in tony dwyer.

i don't know how you would quantitify it, tony but what do you think the impact would be? >> i agree with what tim said. a lot of it is discounted. also when you look at what happened after brexit and the currency collapsed, it was a boom for manufacturing sector out of england so their economy and all of europe's economy has done great with the brexit so we'll see what actually -- the problem with investing and trading on stuff like this, it's not legislated yet and i don't want to bet other people's money on a guess. we guess enough. >> wasn't the bigger guess though the trade that happened right after the election all the way through this rally so why is this a big guess at all? i would think this is a much more defined guess compared to the bigger guess we had to make after the election? >> let's back up and it's not just the election. as you know we upgraded the market before the election.

if you look at the citigroup economic surprise index for the emerging markets, it is off the charts higher. it is really -- it's at a multi-year high. the global economy is accelerating and part of the cause of a correction might be in this entire discussion we haven't talked about the fed. you have accelerating inflation expectation. you have global events that haven't mattered. they're meeting next week and these are not head winds to inflation they're tailwinds. you're going to hear a more hawkish fed overcoming months and you're going to get more rate hikes than people thing and acknowledging that just might be the reason for a correction. >> 2340, so 40 points from where we are right now. what sectors are the best to be in. >> hence our neutral rating. i'm too conservative but i'm not going to go and throw out a big

number. you can get $130 in earnings. >> the sectors you like, these are the same sectors if somebody came on with a 2,400 s&p target for 2017 they would probably say they liked these same sectors. >> to be clear, i am neutral market, neutral sector. so if you're overweight those sectors i would go back to a neutral weight until we get the correction. we're famous for coming on tv calling for a correction and doing nothing. what i've been advising our institutional accounts if you're a hedge funder maybe cut back some of your exposure. neutralize your overweight positions. don't get defensive. it's a good time to not get hurt and that just means neutralizing your position. >> is there anything that could exacerbate that 4 to 7% move to the downside? >> i think this anticipation -- nobody's talking about the fed. it's stunning. a week before the fed when

they're going to be more hawkish than people expected it's not even fodder in the background. so i think -- i don't want to trial and find excuses for a correction. we're 147 days into since you've had your last 5% correction. 157 has been the longest duration without a 5% correction so you're bumping up against the time that you're going to get it and again, and markets like this, you guys know, you can't predict why it's going to correct. it comes out of nowhere. if you could predict it, it would be discounted. >> i think the -- the other thing we're not talking about enough is the beard. he looks great. >> any way -- >> it's my -- hold on. >> he said nobody's talking about the fed. we've been talking about the fed. >> until next week -- >> that's the point -- >> and then so at the end of the

day if they were to increase the likelihood of maybe three to four that's something that would hit -- >> she said that in california. >> he said nobody's talking about it. >> she said it. >> inflation expectations i thought that was pretty key what you said there. if you look at where yields are. ten year tips are being bid and so those yields are falling so the inflation expectation that is that gap between the two is expanding -- >> 12 year highs. >> people are already expecting that there's growth that's going to be here and maybe that does lead to higher prices. that's another unknown but the problem is it's not in the headlines in the papers so that's why we're not talking about it. >> and a lot of those are inflation hedges. so they're not necessarily saying inflation's coming. i actually do think it's coming. we're going to get more hikes than possible. but when somebody buys a tip, a treasury inflation protected security, it's a hedge that's

something that could go wrong not necessarily a directional bet. >> so this is why we invite dom chu over. >> i love you guys. >> he's the man. >> you need to come out here more often. >> better looking in-person. i just got to say. we got to go. >> i always aspire to be more like you. >> awe. >> all of you guys. >> thanks, dom. >> still ahead on this very busy night for "fast money" apple, microsoft, intel, starbucks all volatile in the afterhour sections. reporters are monitoring this conference calls. bring you all the headlines that are moving this stock. >> it's the one dow stock that traders could say could surge surgeon -- we'll tell you what it is.

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i like the sound of that. geico. because saving fifteen percent or more on car insurance is always a great answer. >> on a packed day of earnings, alphabet, microsoft, intel, starbucks all volatile after hours. we've got complete team coverage of earnings. but first let's whip it over to deidra on alphabet. >> a dollar still alphabet's main bread and butter but perhaps a little bit less so as

google pushes into new hours. google's other revenue line which includes cloud computing as well as it's new suite of hardware offerings like the pixel, google home, that jumped 62% to $3.4 billion. the takeaway is that google continues to make lots of money from online advertising but it's investing in future businesses as well and that was part of the drag on the bottom line this quarter. to that point, google chief described a major shift in the focus of the company on the earnings call. have a listen. >> computing is moving from a mobile first to ai first with more universal am yent computing that you can attract naturally all made smarter by the progress we're making with machine lining. 2016 was the year that this became central to who we are as a company -- >> so a shift to a.i. i wouldn't be surprised if you heard that on other tech earning calls. let me throw it across josh

lipton. >> dreet dra microsoft's conference call just starting here. characterizing this quarter as in his words solid. microsoft continues to grow. touched in that linked in acquisition which they completed in december. he tells that microsoft will diligently execute on that linked in opportunity. also of course touching on the company's cloud business. microsoft saying that commercial cloud annualized now exceeds 14 billion that is a jump from the last time they reported of course. investors also interested in the profitability of that business. gross margins for commercial cloud, 48% q2 now that is just a slight deacceleration from q1 when they clocked in at 49%. over to you. >> thank you, josh. intel we did actually get the guidance for 2017 ahead of the nauflt we expect next month and it's flat on the top line. gross margins also expected to

be pretty much flat heading in to next quarter but quite a bit of talk on the call about intel's focus shifting away from the pc market toward markets that are growing. despite the fact that intel did just fine with pcs in q. 4. here's ceo talking about one particular area where intel is investing in growth. >> aton mus cars, for example, will generate about 4,000 gigabytes of data each day. the resulting explosion of data is creating tremendous opportunity. intel will play a central role in those depths because our product are key into turn raw data into high value insight and information. >> so exactly straight ahead. artificial inintelligence like google was talking about. intel really seeing it's chips as being at the core of the intelligence that a car needs to operate autonomously. though the pc market did do better, they're expecting it to be weaker in q1 average selling

prices were strong during the holiday season. they also talked more about the data center and the weakness in the enterprise overall. cloud strong, enterprise not as strong because of the shift toward people renting, computing from these mega cloud providers instead of buying it out jiegt. intel expect to see the data center grow in 2017 high single digits because it would otherwise be stronger. >> and john, just to clarify in the pc pricing strong, this is just a quick question, average selling price forz this quarter didn't they roll up the mobile with the pc chips so therefore the asp for there's quarters aren't necessarily apples to apples or am i melding two different issues. >> intel doesn't have a ton that's on the high end. the real explanation was the core i 7 had a strong year throughout 2016 particularly in the holiday season in developed markets. they did well with those higher

end systems gaming systems as well. that's really what drove the higher pricing. >> all right. thank you john and of course our thanks as well to the other members of the deidra and josh. let's talk about intel because we haven't gotten a chance to talk about them yet. is this an optimistic quarter in your view? >> it's in line. it's data centered, to me the biggest problem with the stocks are where it sits in the valuation. 38 bucks on intel is a level that's going to pull back from and a probably a chance you want to buy it. if you want to trade and own intel on the long-term this valuation is fine. this company is doing everything they're supposed to do and they continue to do it. i own it. >> the stat on the car and how an autonomous vehicle were generate per day is staggering. >> we've known and there's been plenty of companies that traded very well because they're autonomous car plays and intel could very well trade on that. now if people pick up on that and start to bite investors go oh, this is the autonomous car

play. this is where the growth's going to come then you could see a breakout above 38. the way i would trade it, if we stay here i would wait for that breakout. i'd wait for the momentum to continue to market to prove it to me before i got into it. >> we did microsoft versus alphabet. >> are you playing another game? >> would you rather, rather. >> aka. >> say it for me because. >> would you rather alphabet, microsoft or intel? >> microsoft. the reason why is because intel's -- if you look at their guide for 2u7 on the revenue front, they came in flat eps flat. i don't know if they see something or they're being conservative but you got to take them for their word. tim's point about valuation. i think you can pull back to here where microsoft makes more sense. >> i'd say intel in the mid-30s. the guidance is probably a bit

conservative. last year they bought altera. diversifying away from pcs. i think you're going to see them continue to make m&a in moves -- they bought this company nirvana last year and that's what they're going to come at in video with a.i. chips. this company intel trading about 12 times in the mid-30s is a good buy. >> coming up it's the one dow stock that could see big moves on earnings next week. plus starbucks shares sinking. we'll tale you why when "fast money" returns. a basketball co. 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,

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comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. welcome back to "fast money" and this busy night for earnings. let's get a check on starbucks. >> the after-hours stock is down a little more than 3% after the company missed on the top line and on comp store sales. revenues coming in at $5.73 billion. analysts were looking for 5.85 million. the kind was in line with expectations with eps of $0.52.

comp store sales. both global and u.s. comp store sales increased by 3% year over year missing analysts expectations on both counts. membership grew 16% year over year and operating chief kevin johnson attributed the sales miss in the u.s. to its stores becoming congested with people picking up those mobile orders. design today reduce lines at the cash register but now johnson's saying those lines have switched over to the pickup counter. the company also says it opened 649 net new stores in the quarter. they're plan it s to bring thousands of higher end starbuck reserve stores to market with the first store opening in chicago. those stores will be serving beer and wine and this was howard schultz's last earnings call. back to you guys. >> thanks so much. afterhour session lows 3.7%, the

decline at this point. it's not a terrible problem to have if the -- the demand is still there and the congestion happens in the pick-up line. >> this is some of the stuff that kevin johnson -- this is his stuff. he's an operations specialist and i think it is one of the reasons why they're going to get this right. what they have in terms of their payout and all their ability to actually take this very ploil client base and take it to the next level. those comps are stuff. 59 bucks say tough level for the stock. outlooks intact. i wouldn't run away. >> to me i actually think they have an issue here. they basically got amazon. they talked about how online sales or online shopping has taken away from people actually going to the stores. so i think there's a little concern there to make starbucks at least for me a no touch until we figure out is that just a short-term trend or is that something else that's going to be going on? >> were you hanging out in starbucks?

>> no i shop online. >> for the past -- what's interesting there's congestion now. >> that's great. >> nobody's doubting what starbucks is saying. last quarter, it's uncertainty about the u.s. election. the previous quarter, it seems that starbucks has -- >> it takes this guy forever to get a soy latte. >> don't go there. >> it's been disappointing investors time and time again. >> it's not been a growth stock there since the fall of 2015 in terms of their comps and in terms of what the stocks has done. it's just been a slow drip to the downside. it has that great bounce -- i didn't mean to do that. >> it's a grind. >> these are my bean. >> strange brew here. >> i don't know if it gets back down but it can trade down to $55. >> sticking with earnings.

exxon mobile reporting earnings next week. so dan, what do you see? >> what i see is actually not so big. implied move in the option market is 1.5%. they report tuesday before the opening but i do think it's going to be an impactful report. here's a company. massive s&p component. earnings are expected to decline for 2016 45%. so investors are going to want to see what they have to say so the implied move is only about 1.5% in either direction. that's been the average over the last four quarters. i'll bring you to the chart of exxon here if i can find it. it's sitting on important supported 5i68 bucks. if you were inclined to be at this resistance at 90. by the february -- >> for more options action check

out the full show tomorrow. still ahead we got a final check in the big tech earnings tonight. and the traders will tell you what they're watching tomorrow. more "fast money" after this. [pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.

welcome back to "fast money." alphabet and microsoft remain volatile. let's check in with david garrity for grades on both names. so david, what do you give alphabet and microsoft? >> we basically would take microsoft over google or alphabet and both companies still very open position for 2017. artificial intelligence is going to drive monetization at both companies. they're going to start getting more legs in 2017. this is an area the street hasn't looked at. people are going to have to see how well a.i. drives the cash register. >> is this a pullback to say to buy? is that an opportunity at all? >> both of them are very strong and i would say alphabet on the pullback here is the attractive if we had to differentiate between the two, microsoft is stronger of the two. >> got it.

david, thanks so much for manning the red phones. we asked you viewers out there on twitter would you rather. >> we love that. >> so 36% of you said microsoft, 64% said alphabet. >> and they're playing would you rather. >> good night for them. >> yeah. >> fantastic. time for the final trade. >> lot of talk on mexico. i think the eww, 5% down to 42 you protect yourself. that's a line in the sand on this stock. >> for me it's take profits in tesla. i still like the name long-term. nothing wrong with taking money to the bank. >> on that verizon/charter chatter dish was down a lot. if this goes down more that ones a buy. >> we got special guests here. we got special guests here. brian kelly's mom and dad, first time they've seen us on the show. very proud as they should be of

their son who completed a half marathon this past sunday. >> there they are. where are they? >> they're some where. >> at&t, at&t. that's my final trade. go. >> spit it out. see you back 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 you but also to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. when warren buffett talks about how you should invest in america for the long term, what he's really say