tv Fast Money CNBC December 20, 2017 5:00pm-6:00pm EST
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market >> at&t was not on this list home depot, oracle, honeywell, those are the big programs we've seen we'll await more announcements coming >> the bull case is there's kind of enough money to be spread around multiple uses we'll see if that turns out to be the case next year. >> yes, we will. thank you, michael, as always. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," the dow is inching toward 25 k as tax cuts become the real deal we have a top technician with three stocks he says are screaming highs. plus coinbase adding bitcoin cash to its platform, sending the crypto world and twitter into a frenzy. it's bitcoin cash versus bitcoins what's the difference? we'll break it down. the man both hated and loved in the crypto community, roger
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ver, one-time bitcoin jesus. he's here to tell us why this is just the beginning of the rise of bitcoin cash. and we're going to switch the bug. switch it! from bitcoin to bitcoin cash the newly-added coin has been extremely volatile since being added to the platform. it's a crazy bitcoin world out there. we're going really large tonight here on "fast. first we start with the tax cut. what all of wall street has been waiting for, as both chambers of congress pass the bill and president trump took a victory lap at the white house ylan mui is in d.c. with the details. >> reporter: melissa, it was a washington love fest there at the white house, with many people thinking that republicans wouldn't actually get this done before christmas but the party rallied around this bill. they put aside some of the infighting that had plagued the gop earlier in this year to stand behind the president
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>> it's been an amazing experience i have to tell you hasn't been done in 34 years but actually really hasn't been done, because we broke every record it's the largest -- i always say the most massive, but it's the largest tax cut in the history of our country, and reform, but tax cut. >> reporter: now, it isn't quite the biggest tax cut ever but it is a very large reduction in the corporate rate. and there are also some sweeping changes on the international side republicans say this is all going to encourage companies to invest more money in the u.s. and also to raise worker wages there is some anecdotal evidence out today that theycan point t as signs of success, with wells fargo announcing they're going to raise workers' wages and at&t also announcing that it is going to invest $1 billion in the u.s. in 2018 and give 200,000 workers
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a $1,000 bonus there is a little catch to that. those workers only get that 1,000 if the president signs this bill before christmas that's the only way they get it before the holiday he didn't sign the bill today and it's unclear when he's going to do it but republican officials assure us he will put pen to paper soon >> ylan mui in washington, thank you. is there still time to buy this tax rally guy? >> i think the answer is yes it's not just at&t wells fargo gave a special bonus. on the margins, that's a really good thing nothing's changed in terms of the market stay the course. this is a benign day, financials traded off a little bit. maybe that's sort of sell the fat type of thing. i still think deep industrial stocks work. transports have been on fire
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federal express is still too cheap in terms of valuation, especially after what they said last night so the things that have been working, in my opinion, continue to work. >> something like dollar general when you take an effective tax rate from 36 to 21%. if you listen to the analysts on the street, what they're being able to do is not just price in corporate taxes but talk about the consumption impact and the demand side of this. they're playing around with those numbers, whether they're right or wrong part of the argument for domestic and consumption is because the consumption story is supposed to be better. energy is supposed to be a big place to be investing. they're u.s. dollar cash earners, where these guys ultimately get the huge benefit from the tax, where is the integrators in some of those names really don't because they're making their money offshore >> i think it's a sell the news kind of thing. but i don't want to realize gains. i like everything i own, i liked banks, i don't really care if they traded off a little bit today. i felt with the volatility index
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here, it touched south of nine today, i felt like i had to buy protection if i want to stay long this market i bought some spdr puts, i thought those were very attractive, allows me to stay long >> how much of your portfolio would you be hedging in other words, how big is that position >> it's probably going to work its way up to 4 or 5%. that's the max but you know exactly what you're going to lose. so i want to stay long stocks. that helps me sleep better at night. >> i would say that i'm in karen's camp i think it is going to be somewhat of a sell the news type of event there will be a rotation, i believe that will be the overarching theme. you could stay with retail stocks i think q1 and q2 are going to be easy comps for retail to tim's point, you could go into energy. i have not seen any bids into energy until today you'll have to wait a couple of days those two rotations, retail and energy, still have room.
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>> i have a stupid question. >> the rest of them are not. >> thank you, grasso when you say it's a sell the news event, when is that moment in time? because i would argue that the moment in time was yesterday or it was today >> there are a lot of considerations probably today, since it's 5:00 and the market is closed, maybe tomorrow you have the tax considerations that karen talked about. i was a little disappointed in the action today we argued about whether or not this was priced in so now we have the deal and you didn't get a rally it's only one day. so maybe we're starting to get to the point that it's priced in that being said, i think there's places to go i want to look at the next things that are going to happen. i want to look at infrastructure i want to be in cap tractor, in john deere >> caterpillar, it's going to the moon >> it's going to mars now. >> i hear you. to me, the infrastructure story is one that largely, first of all, we haven't had an announcement, we had a supply,
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sensed a lot of these companies were doing better. what we're seeing is certainly part of that look at what rates did today, you have 250 on the ten-year say what you want about eps for the s&p, whether it's 150, 160 if you do that with a ten-year that's at 275 or 3, you have a different argument for the stock market than at 250 >> this move in the ten-year, does that make the case for banks stronger >> it's fascinating, dwyer will tell you the sliding year curve is still bullish for a period of time people say steepening yield curve is bullish for the same or different reasons. effectively everything is bullish for the markets. i would suggest it should be -- a steepening yield curve by definition has to be good for the banks. when the yield curve was 53 basis points, banks were to the upside as well >> that was regulation too >> lack of regulation was a huge part of it i think when i say it's a sell
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the news type of event, it's a short news type of event once you get into 2018, people will start to see that earnings will rachet up and you'll start to see those triggers. >> are we expecting through the end of the year that that affects stroocks >> that large cap that's gone on for years and years will take a powder maybe the second quarter, they'll get back on those faang names again. our next guest says there are three names that you want to buy right now. hi, rich >> hi, melissa i've got three strong buys and it all starts with microsoft it really doesn't get any better than this. big 17-year base of support, okay and we break out on an absolute basis. you've seen that this is the most massive base, is the president might say more importantly, look at relative to the s&p.
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once again, a breakout relatively and absolutely to a 17-year high, that's compelling. you don't see that every day let's keep the big cap tech moving here into intel you know the name. it's similarly bullish you have this multiyear base of support into one of our favorite continuation patterns, the bullish flag we bought the dip in chips and we're going to buy the rip this stock can go to $60 microsoft and intel are at the top of your list from tech to texas, we'll take the other side of that trade as steve alluded to, this is chevron, up about 2 to 3% to date, that's a laggard, that's going to change next year. bullish cup and handle here. you have crude itself testing at $60. you'll get a breakout early next year chevron is a stock that's going to go from an underperformer in '17 to an outperformer in '18, a great way to play the burgeoning rally in the tech center three strong buys, great ways to
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play the dow at record highs >> come on over, rich. >> i don't know how we'll stuff you in here but we look forward to it. >> i think there's some room over there between brian and guy. >> the more the merrier. do these picks say anything about the sectors of which they are a part >> look, they say a lot. there's a big narrative in the market to steve's point that this sort of rise in interest rates, in value over growth, tech is going to be used as a source of funds. i go the other way, you know where i stand. it's guns and butter at the same time, growth and value, tech and banks, small and large, foreign and domestic this is a strong bull market like we haven't seen since '96 i'm not selling microsoft to sell chevron i'm buying the bull. >> those three charts had different characteristics. microsoft looks like a continuation intel has skyrocketed over the last couple of days. chevron maybe has not broken out of that pattern you mentioned.
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of those three, which do you prefer is there one that's a stronger pattern to you >> there's two schools of thought. i'm a classic trend follower in bull market, strength begets strength a stock like microsoft doesn't scare me off, it's my favorite microsoft, there's a roadmap to get there. that's 50% upside from current levels microsoft is compelling. energy, chevron, that's a sector, you saw a little preview today, crude is going to have a six handle pretty soon when the calendar turns you'll change the way you look at those energy stocks. >> we're having a little bit of a debate whether tax is a buy the rumor, sell the news event is there anything in the charts that suggests that a sell-the-news, even small and brief, is in the cards >> i don't think so. the key point for me is the backdrop is so compelling here that to think that to try to get too cute with a setup this strong will cost you more money than it's going to save.
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we're clearly on a heater here into year end. we always see some volatility in january, some repositioning, false starts that being said, don't get fooled into a sell the news. you want to be a buyer >> what is the most likely thing that could derail this story >> i think while i am very optimistic on technology, 25% of the market, if tech is viewed as that source of funds, you've seen antitrust concerns over facebook, if tech is sold to buy sectors, it won't have the same lift that's just the risk >> rich, great to see you, merry christmas, happy holidays. >> he should stay there, now it's even. >> it's symmetrical. i know it bothers you that it wasn't symmetrical because you appreciate symmetry. >> he doesn't even have to talk, just say "what can i do for you. chevron is more expensive than exxonmobil they effectively had the same
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year i think if you want to play energy, exxon is the cheaper way to go. but i understand what rich is saying on the break on chevron >> what did you do today >> watching the homebuilders, existing home sales, 11-year high you watch these names like pulte and kb, i'm still long pulte, up 80% year to date they have a lot more room. housing recovery is still in the early innings. ahead, the so-called bitcoin jesus, roger ver, is here. he'll tell us what it means now that bitcoin cash is on coinbase right now it's moving higher where is the bug he'll tell us how high he sees it going plus td ameritrade offering bitcoin futures trading. how big does the online broker think the cryptocurrency could get? later check out shares of bed bath & beyond surging after hours, now falling into negative territory.
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comparison to perhaps the most contention of them all, the bitcoin civil war. that's right, the bitcoin civil war. first there was bitcoin. then there was a split and that's where bitcoin cash comes in since then there's been a battle between the two. to be clear, on the desk we don't care which does better we thought it's the perfect time to break down the differences between the two. bk is at the plasma. >> absolutely. let's go through these two i'll try to explain it very simply what the split is about the split between bitcoin and bitcoin cash is ultimately about how you scale this the bitcoin network was so popular, you needed to make it bigger it came down to the size of the blocks you might want to think of the size of the blocks as the memory on your computer, in a sense it also comes down to the immediate transaction speed going on today those two also feed into what
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you might pay on the network so you do have to pay something to the miners to send one dollar from bk to guy you have to pay different amounts. and those fees are dependent on how full the blocks are, how fast it is, how many miners are out there, how big the network effect is. then there is the network effect notoriety is somewhat interesting in this case, because there is a bit of a controversy over this. it is a bit of a civil war let's dig down a little bit more into this and see what the difference is between bitcoin and bitcoin cash so the block size or let's call at it memory size. bitcoin today is at 2 megabytes. bitcoin cash moved it up to 8 megabytes. that means you can do more transactions every ten minutes on the system as it is today so we look at transactions right now, bitcoin is about 3 to 7 transactions per second. bitcoin cash is 24 per second. just to be clear, this isn't even close to what visa does
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there needs to be another solution to scale this that's what bitcoin has. let's look at the prices i did a transaction today, cost me 10 bucks on bitcoin, cost me a dollar on bitcoin cash that's the difference you see immediately. bitcoin has a much bigger network. it's accepted many other places. there is a massive development team on top of it. and they're building stuff like the lightning network, which is actually the scaling solution for bitcoin. bitcoin cash has a much smaller network. it has a ways to go in developing that. and that takes some time that's the basic two differences between these. so the other thing i want to say is that i don't care which one wins i don't have a dog in this fight. i own both of them i think there's place for both of them. anyone who thinks i'm trying to say one or the other, it is not true, i like 'em both. >> karen has a question. >> is there some number of market cap, some critical mass
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bitcoin cash would have to reach for the networking effect to move over to bitcoin cash? >> i personally view a world where they can both serve two different functions. bitcoin serves as a settlement layer. and bitcoin cash serves as a transactional currency i would like to see them get along. you don't have to have this rivalry and it doesn't have to be a market cap that one wins versus the other >> thanks, bk, very eloquent now the man who called the rise in bitcoin cash, otherwise known as bitcoin jesus, aka roger ver. he'll be here right after this break. i'm melissa lee. you're watchings cnbc, first in business worldwide vegas, baby, vegas >> that's right, baby. sin city stocks are heating up and there's one stop that traders want to double down on we'll explain. plus -- in the beginning
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he was one of the first investors in bitcoin itself. roger ver joins us on the phone, thanks for coming back on "fast money. >> thanks for having me. >> does the addition of bitcoin cash to coinbase accelerate your doomsday calls for bitcoin itself >> of course it accelerates the adoption of bitcoin cash bitcoin cash has all the characteristics that attracted me to bitcoin in the very first place in 2011 and what led me to become the first person in the world to start investing in cryptocurrency startups. it's cheap to use, fast, and reliable bitcoin and their development team have intentionally made their product slow and expensive to use and unreliable. you don't have to be a rocket scientist to figure out which will be more usable.
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>> i consider myself a neophyte compared to you and brian kelly here on the desk and so many others out there but what caught me off guard, the polarized community when it comes to bitcoin cash and bitcoin. is there not a world, roger, where both can exist >> there should be but it's really, really, really dangerous for bitcoin core holders because of the way the mining difficulty algorithm adjusts for bitcoin core if bitcoin cash becomes popular enough and siphons away enough from bitcoin core in a short enough period of time, bitcoin core is really in danger of coming to a screeching halt altogether i've been telling people to hold your bitcoins and cryptocurrency on your own device where you're in control right now may be the only time that's bad advice. you may want to consider holding your bitcoin on an exchange so if there's this mad exodus of
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people rushing to the door, your money will already be on the exchange, you'll still be able to get something for them where is if they're stuck on your own phone or computer and everybody is running for the door because the rate is disappearing from bitcoin core and moving to bitcoin cash, it will be too late to move them from your wallet to the exchange >> basically it sounds like it's almost -- i don't want to say a run on the bank, it's not quite equivalent, but this notion that there could be something that happens almost instantaneously and you'll want out of bitcoin like that. that's what you're predicting? >> i'm predicting that that may happen and if you look at it right now, the average fee on bitcoin is more than $30 today. and there's more than a quarter of a million bitcoin transactions waiting to be included in block. that means you have somewhere around a quarter million and you're an unhappy bitcoin core user if they're getting a bad experience, they're likely to switch to something else
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if they switch to bitcoin cash, that would siphon away from bitcoin core and make the doomsday scenario possible what a terrifying thing if you're holding a lot of bitcoin core >> roger, it's brian kelly i just did a comparison between the two coins. it struck me in that that both of the coins still have a long way to go before we can scale to the level of visa or mastercard. bitcoin itself, the core developers are some of the best in the world, are going toward the lightning network. can you tell me what the plan is for bitcoin cash in scaleability, if it gets as possible as it may, will it end up like bitcoin today? >> i would like to take exception to your comment that bitcoin developers are some of the best in the world. that's absolutely not true they took bitcoin which used to have fast, reliable, cheap transactions on chain, and turned it into an incredibly
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congested network that provide a horrible user experience bitcoin's market share went down to way less than 50% by those standards, i think they're probably one of the worst development teams in the entire crypto coin ecosystem with regards to lightning network and their plans for future scaling, all those things they want to do in regards to lightning network and layer two will work better, faster, and cheaper on top of bitcoin cash because there's more room in the blocks for everything to happen more reliably. all these things they're working on can work better on bitcoin cash bitcoin cash is a better solution all the way around and is much more in tune with what was originally laid out in the roadmap of bitcoin to begin with, which was fast, cheap, reliable transactions. that's what bitcoin cash provides and bitcoin core is providing the exact opposite of that >> in terms of scaling and greater acceptance, roger, i understand the addition of cash to bitcoin is very important,
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but now bitcoin cash is investigating possible insider trading. is it your take that perhaps there needs to be regulation in these online trading platforms is it enough for coinbase to say we're going to launch our own investigation into this and that should be sufficient for you retail traders who are now trading in bitcoin and bitcoin cash i ask because maybe this sours investors out there from crypto. and that in the end would be bad for your thesis, wouldn't it >> i think insider trading is a non-crime. let's say a bunch of people had traded in advance, the price would already much more closely reflect the price after the news became public. no, i don't think that should be an excuse for additional regulation on the bitcoin exchanges. they're already being regulated pretty heavily at the end of the day, buyers need to beware of whatever service they're using, whether it's a bitcoin exchange or a coffee shop making your coffee be careful, take a look at what you're doing, don't depend on
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the government to keep you safe from everything out there in the world. >> and so, roger, going forward, what is the plan here for the acceptance again, when i went through that, i said there's a smaller network effect here for bitcoin cash, what's the plan from your point of view for growing that network effect >> the plan is what works for bitcoin in the early stages. providing a wonderful user experience where anyone can invest any amount of money basically for free and nobody can stop it. now we have all these businesses that used to be bitcoin only businesses once the bitcoin core team succeeded in making bitcoin less usable, they started integrating the likes of blockchain.info, ethereum, now bitcoin cash wallet, where previously they were only a bitcoin wallet we've seen the same thing happen with coinbase, with bitpay, and
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bitcoin.com. they aren't stupid, they realize this is more than $30, they have to wait days or weeks or maybe never for your transaction to go through. bitcoin core is going to start using something else, and that clearly needs to be bitcoin cash >> i want to ask you about charlie lee, the creator of lightcoin, selling his cash. does it make sense he wants to get rid of this because of a conflict of interest >> i have no idea. charlie lee should be free to do what he wants, they're his it doesn't affect me one bit i don't really see litecoin as being nearly as interesting. it's a competitor of bitcoin core, i suppose. bitcoin cash is an even better version. one really interesting point that charlie lee did make previously, bitcoin shouldn't raise the block size kudos for him to saying do as i say, not as i do, and lightpoint
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is trying to utilize the market share as well. if i had a competing currency to bitcoin core, maybe i would give them bad advice too. that seems to be what charlie lee did, give bitcoin core bass individual that crippled it and litecoin is in a position to pick up the slack that he created. >> roger, thanks for phoning in, roger ver of bitcoin.com i'll go to you, bk do you think the two can co-exist why are people on twitter so polarized about this >> so a lot of this has a lot less to do about the technical specifications and more about the decision process in how a community comes together and forms consensus. that's really what, to me, has been happening over the last several years. there's been a dispute about how a community comes together and says this is how we're going to move forward the solution in this case was to split the community into two different coins. i'm not qualified to say which
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one is technically better. i'll leave that up to the developers >> let me ask you, bk, could it be something more mundane like there's so much more money at risk in bitcoin because the market cap is so much bigger than bitcoin cash, and it's purely an issue of, you know -- >> diversification >> or for the community wanting to keep the value in bitcoin >> economics are a big driver of this entire thing. the whole idea of having a token like bitcoin is to change the economic system. so a lot of people that got into this early, you know, are in it because they want to change the economic system. they want to change the inequalities they're now at this point, where they're trying to protect what they got into a long time ago. yes, i think economics plays a big role in it ahead, the bitcoin boom doesn't stop we'll talk to a ceo of chor"ft ne, tim hockey mu me asmoy" after this
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companies announcing things after the tax reform package passage. the ceo announced the company would award special $1,000 bonuses to more than 100,000 front line and non-executive employees. the company expects to spend well in excess of $50 billion over the next five years investing in infrastructure to extend our broadband plant and capacity as well as television, film, and theme park offerings, so an announcement from our parent company comcast >> what was that number on how much additional they will spend? >> reporter: well in excess of $50 billion over the next five years. >> thanks, meg terrell the immediate expensing the capital expenditures plays a role, we heard at&t earlier today announce they are going to spend an additional $1 billion in capital expenditures. >> sounds like you're getting your infrastructure plan whether
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you get an infrastructure plan or not they'll kiss the ring, they've got the money, they'll get the corporate tax cut, and going forward their business opportunities, they're going to make sure they're in lockstep or they have the approval of the white house. >> corporate america is drooling right now, giving thousand-dollar checks, i don't think this is that big a deal. a lot of companies you've heard about, the guys that jump to the front of the line are the guys having the biggest war with the government steve makes a great point, infrastructure in the telecom sector follow the flows there that's copper, that's materials. and i think that's what you should be investing in now look at the breakout in freeport, in u.s. steel, these are related to that. >> for all the, you know, scut the companies are going to get because they won't spend money hiring workers, effectively you are hiring works, you're creating jobs. >> you're giving them a raise. >> but when at&t is spending a
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billion dollars extra to lay cable or whatever they're going to do. >> fiber >> right somebody's got to make it, somebody's got to lay it, right? >> to tim's point, it's 2 1/2 weeks ago, copper, the commodity, was getting obliterated. xes was up 3.5%. since then the stock has run from 14 handle towards currently trading. sometimes the market gives you a gift freeport is probably still cheap right here >> i actually think this might have an impact on the fed. this will sound a little crazy, but comcast, if this is a trend, the wage pressures will start to go up. and the fed might be behind the curve. >> they might have to hike more. ahead, professional sports teams are hitting the strip in las vegas. it's giving casino stocks a boost. are traders rolling the dice on any of these names plus the ceo of td ameritrade is here for his first interview since bitcoin futures started trading on his platform.
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our bob pisani is at the nyse with details >> reporter: hi, melissa the retail investor appears to be waking up bitcoin can claim part of the credit e-brokers have been rallying especially since tax cuts got real at the end of november. and with good reason first, there's more trading activity all the brokers are reporting daily avenue regular trades have been up in november over october, up 15% for e-trade, 12% for ameritrade, 14% for interactive brokers, 8% for schwab second, new assets are increasing investors are putting more money in their accounts. schwab has record levels of net new assets third, higher interest rates big help clients keep cash in these trading accounts and as interest rates rise, brokers make more money, they're stingy, keeping the higher interest rates from your cash. fourth, tax cuts
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broker will see 18 to 20% increase in earnings under this tax-friendly scenario. finally, i think it's fair to give bitcoin some credit bitcoin futures have slowly rolled out the ecosystem around bitcoin, particularly any stocks associated with bitcoin, have seen very, very heavy trading activity the bitcoin news keeps coming. the parent company of the new york stock exchange has filed for a bitcoin etf with the sec put it all together, it means profits are higher the big analyst in this space recently increased his 2018 and 2019 earnings estimates for e*trade and schwab and td ameritrade >> thank you very much, bob pisani the world's largest online futures brokerage went live with bitcoin earlier this week. let's bring in tim hockney, great to have you with us, ceo of ameritrade. >> remember, this is only day three for us but having said that, we saw the
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interest fairly early. and we got prepared and started trading on monday. what we've seen is a serious increase in the number of inquiries that we're getting from all of our clients. and they do skew a little younger, as you were discussing on your show but just to put some numbers around it, we've seen probably a three-fold increase in activity and interest vis-à-vis futures trading. and that's just an account opening. and about a five-fold increase on the futures themselves. so lots of activity. >> you mentioned these clients tend to be younger can you give us any more detail on who these people are? are they people who have equity trading accounts who are lured into bitcoin are they people who are only interested in trading bitcoin futures? is there some notion that you can sort of attract bitcoin people into the equity world or attract equity people into the bitcoin futures world? >> there isn't anybody on the planet who hasn't heard of it,
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there's a euphoria about it. there's that factor first. then, in fact we've limited our trading to date to those clients who are actually already -- futures traders are very liquid. they understand their risks. we will expand that out over time but there is very much interest from people who have never traded an equity certainly never trade a cryptocurrency, because they couldn't they're saying there's this fear of missing out issue that everybody is talking about, because they're going to holiday c cocktail parties and hearing all about it and saying how do i get in >> the market is high, people are employed, there's a bitcoin interest, rates are moving higher of all of those things, what's the most important to your business to drive profitability? >> generally i would say the short term answer is interest rates. the longer term answer of course is clients who are interested in
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taking interest in their own financial future, either trading or investing, to be better off in the future. that's what we're focused on in the long term. interest rates, clearly, whether it be fed fund rates or the yield curve generally, it goes up and we do better on client cash, as we mentioned earlier. >> at this moment in time, what's the biggest driver of interest in trade? is it something like bitcoin, everybody on the street is talking about bitcoin, or is it dow 25k? >> it's clearly bitcoin. >> really? >> sure. dow 25k is something that, honestly, it feels like it's sort of taken for granted, because we've had this inexorable, how many daily closes at records. so that's not fun and interesting. everyone wants to talk about bitcoin. it doesn't mean everybody is actually trading it, of course they can't yet, that's why there's a pent-up demand in terms of the buzz, look at how much time you're spending talking about it
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we're talking here about the difference between bitcoin and bitcoin cash, that shows you how much buzz there is around it >> there have been so many surveys saying millenials aren't interested in stocks, but they are interested in bitcoin. why do you think that is, and is that important for your business otherwise these are people who you might not necessarily get on your platform. >> as i said earlier, i don't think that it is what it is. 42% of our clients, for the last number of years, are millenials. >> 42? >> 42% of our new clients are millenials but they like to trade what they know and so what do they know they know tech stocks. why do we see all the activity we did around whether it be facebook or this past year, snap we see a flurry of activity. bitcoin, same thing, technology, as a result there's a high degree of interest it is an entry point into markets and trading generally. and from that, with the right education, with the right help, then it will probably expand into investing more generally.
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>> last quick question tim, for 2018, are we going to get to a point next year where you're going to revise higher, you'll say bitcoin futures is a higher impact than we thought and tax is higher impact than we thought? >> i don't, sitting here today, think bitcoin is going to move the needle for us. it is certainly hype and euphoria it just won't -- remember, we generate about three-quarters of a million trades a day that's a very large number relative to the current volumes that are coming out of bitcoin and i don't think even with this euphoria we're seeing, as the markets open up and additional products come to market, that we'll see that number move much. relative to other reasons for changing our own guidance, if we were going to do that, i wouldn't talk about it here. >> it's public, this will be public disclosure. >> of course i would say, look, you mentioned it earlier, there are some great tail winds
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we have rising interest rates. remember, in our case, it's idiosyncratic to us. we have this deal with scottrade we just closed and we're planning to do an integration in the first quarter. that's going well from our point of view. there's all these things we're quite happy about in terms of our future, and we see bright roads ahead. >> tim, good to see you, tim hockey, ceo and president of td ameritrade >> priced at 20 million shares, secondary to ameritrade, the stock traded well off the back of that. tim can speak to that. valuation-wise, it's a cheap stock. they're in the right space what does it mean for the stock? it goes higher, in my opinion. >> if you look at the online traders, ameritrade has underperformed i like the catch-up trade, especially when you look at bob pisani said, what the entry point was. check out shares of pg&e, tanking in after hours session, the company suspending its ldredend, citing the california wifis. we'll have the details next.
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welcome back to "fast money. we've got a market flash here on pg&e, the stock is sinking in the after hours session. the company cutting its dividends citing uncertainty relating to causes and potential liability associated with the northern california wildfires. this obviously could have a snowball effect, there are a lot of etfs, dividend etfs, dividend mutual funds, who might have to
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sell because of this suspension of the dividend. >> these are not necessarily companies that can make big adjustments in their earnings profile, especially for these types of events. they're due to pay 53 cents in the fourth quarter this was an announcement that certainly caught people by surprise the stock had been selling off going into this number almost on the expectation that this was about to happen. >> and the preferred also is suspending the dividend as well, which you don't see too often. >> all for cash conservation, according to the company switching gears, since turning into sports city, there's been a surge of professional teams coming into las vegas. let's get to contessa brewer ou in sin city with much more contessa >> reporter: melissa, already the majority of the revenue in this town comes from nongaming sources. we're talking about major league football, women's basketball is coming to town, and also hockey.
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last night here at the arena, a packed crowd, standing room only they went up against the tampa lightning in their first season, the golden knights are having a gangbusters, now tied for first place in their division, number one in merchandise sales, their ticket prices are above the nhl average. it's not just hockey that is getting this town so excited the ceo at mgm which owns a stake in the t-mobile arena says he's ready to ante up on sports. >> if we learned anything about bringing the golden knights here, people travel. they'll come from new york, boston, they'll come from the west coast to go to of lalas veo see their team play against the home team. it's had a big impact on this neighborhood here and a big impact on mandalay >> reporter: mandalay bay is owned by mgm the aces, the wnba team, is
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coming to town here and he thinks it will make a big difference to his bottom line, guys >> contessa, thank you, contessa brewer in las vegas. casino stocks doing quite well today. >> wynn has outperformed, it's up 95% year to date. it is overbought on our rsi relative strength index right now. but it's been running overbought, it's been performing well i would stay with that one mgm is more domestic facing. you could see that catch up a little bit i like wynn. >> reason to buy casino stocks, the golden knights >> you don't watch hockey. >> i know the vegas golden knights. >> that's one of the many reasons. we were in vegas with mr. wynn, the stock was a 90 handle, now it's 150 something and still going higher from here the valuation is still compelling i still like wynn. up next, final trade
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it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. tim? >> oil services, oih is to be bought >> i think you've got to buy some protection when they're giving it away as cheap. there is some inherent volume title, as bitcoin starts to move the wrong way. >> we've got an extra trader tonight. we're running out of time. >> disney/fox deal, people will start sniffing around the other properties as well cbs. >> i pitch litecoin as my next big trade. >> that's weird.
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>> right part of that thesis is you have an engaged founder i sold it today. >> name one hockey player. you don't have time, sorry >> wayne gretzky i'm melissa lee. "mad money" starts right now. g. "mad money" starts right 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 in summer and i am going to help you find it. welcome to "mad money. well creme to cramerica. call me at 1-800
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