level, all at once amazing. >> robert, thank you >> when you have that much money, you have to bring you're allocation up to a certain%. >> reporter: 20%, you've got to work >> thank you michael santoli, thank you as always that does it for us at "closing bell." "fast money" starts right "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm memblissa lee. tonight on "fast," crypto fallout. there's one cryptocurrency that's surging we'll tell you what it is. plus stocks are at record highs and there is one name that's having an incredible start to the year. it could be just the beginning of an even bigger impacticome b. we'll explain. first, a record day for the market, the dow surging triple digits, adding a big jump-start

to 2018. are you tired of winning yet look no further than president trump's huge tax cut for corporate america, walmart the latest company to announce higher wages and bonuses thanks to the relief from the federal government, happening right before our eyes, s&p adding half a trillion dollars in market caps, raising the question, are these the greatest tax cuts ever, which stocks will benefit the most as there is more money in americans' pockets? >> this is the greatest tax cut. it depends on how you look at it if you look at the as the percentage of gdp, it's not the greatest ever, it's way down on the list of tax cuts in america. if you look at it from the corporate side, the greatest tax cuts we've ever seen the last time the corporate tax rate was at this level was in 1940 it's impossible for me to say tax cuts are in the market they can't be in the market.

do you know what else is not in the market infrastructure energy, materials, industrials >> wait a second we've had a reflation trade for 18 months. i actually agree with you, but you can't say it's not in the market the question is how much is there. >> how much is left. that's the key >> the other side of this, that really we need to think about, if you think about how much octane has been thrown on this market, when walmart starts handing out monopoly money, it tells you what corporate america got away with on this tax bill and i will express it, i don't think we needed to go from 38 to 21 overnight >> why do you say what corporate america got away with? why is it not -- 100 million people in this country own stock. >> because the effective tax rate for a lot of these corporates was already well below 38 it was probably significantly lower. >> not competitive globally, tim. >> that's the garbage. >> why do you say that you have companies going abroad.

>> i don't want to debate the validity of the tax cut, the tax cut is here. >> you can buy every sector, every space. they are not in the market we don't know how they're going to spend this money. >> but, you know, what i have to say is that we've had an enormous run consumer confidence is at 17-year highs. we've had a place here where everybody thinks nothing bad can happen, volatility is too low, and that scares me, i'm sorry. the places more representative of where you're going to get follow-through from this tax cut are the banks and retail these are places they were probably less than competitive and i think these guys were going from 38 to 21. >> there will be a positive impact on those sectors? >> it's obvious there has been but to say this is -- i think we're starting to see the types of moves in people and in behavior that comes before there's at least some -- >> so the entire portfolio, not

to be -- >> so i think probably what's not -- to me what's not necessarily in the market, what is a surprise to the market here, is the amount of wage increases that we've seen over the last couple of days. nobody expected that nobody predicted that you would get a thousand dollar bonus or walmart would increase their minimum wage that is something that's new for the market then you have to start thinking, okay, where are people going to spend that money you have to look at consumer discretionary. those types of things are the places that have not been priced in we can argue about how much the tax code has been priced in. i agree that we don't know what kind of infrastructure or how that money is going to spend there's some kind of multiplier. people do have more money in their pocket >> i don't think it's been completely priced in i do think -- i'm happy to own what i own, i love a day like this, i make money but like tim, i get a little nervous. we're seeing commodity pricing moving up, look at oil that gets me nervous about

inflation. when you think about what drives valuation, obviously it's "p" multiples. if we start to see inflation, if we see rates increase, that's the biggest, most likely fly in the ointment >> is that why you're concerned about it >> the wholesale index of prices, things like resins, rubber, asphalt, these things are going up they're about to break out to fresh highs. i've been long a lot of this stuff for 18 months. i'm not upset about it i'm telling you inflation is very real. i think the fed is behind the curve. i think people don't have four fed hikes priced in this year. the rest of the world, if europe is truly starting to normalize a little bit, that's going to have a big target >> they're not going for straight inflation targets they're price targets. a ballpark, in the area. i wouldn't worry about inflation. we're coming from such a low rate, that isn't a world of hurt >> if we're on this path they've laid out, that's fine. a surprise inflationary spike to

me has the potential to throw a wrench into things the other part that isn't fully in there is the worldwide global growth story >> think about what we had -- >> without infrastructure. but that's the fly in the ointment, that's the upside potential. >> it's a double edged sword, right? we have this global synchronized growth that everybody is talking about. now look what's happening to the u.s. dollar. it has weakened, it looks like it's going to take another leg lower. now i have international companies, u.s. companies that do business internationally, that will get a tailwind from the lower u.s. dollar, and i've got global growth. very good for the stock market the other side of that, the double edged sword of that, we're already seeing reflation the dollar is going lower. that will accelerate it. to karen's point, that could be the surprise inflationary -- >> so indulge me what do you buy, given all that >> you buy the ultimate consumer

stock, apple everybody wants a new shiny phone or ipad. you buy apple. >> we had the best gdp in six years out of germany this morning. you buy european banks again, the euro will be 130 before the end of the year and the bund will be over 1% the european banks are trading cheapest price to tangible book. this is obvious to me. this is the second phase of this trade. to be clear, global growth is a good thing emerging markets, if you hedge off whatever dollar risk you think you have there, they have to go higher i did more of that today next, someone says the tax cuts are already priced in we'll bring in mike wilson, chief u.s. equity strategist at morgan stanley what's holding you back, mike? >> we probably got a little bit excited last year, in anticipation of what's happening now, it's sell the news. everything we talk about, recovery, the fact that rates remain low, allowing multiples to expand, the tax cuts. these are things the market figured out last year. now we got a capitulation in the

last couple of months and we're seeing the euphoria we predicted at the beginning of 2017 that doesn't mean it's over. i'm kind of in tim's camp. the global reflation story started in 2016. reflationary trade has been in gear we're still there and we think it's going to continue i would be very surprised that if in 2018 we don't see a peak in the reflation trade, the opposite of what people are worried about. i don't think we get killed by rates. we get killed by the growth rate peaking out again. that doesn't mean a recession but back towards defensives at some point we're still geared toward cyclicals for now. of the cyclicals, energy is the best risk/reward because it really lagged and there's a fundamental story there between supply and demand and earnings revisions that turned up >> how did you have it priced in, when it really wasn't clear that it was actually going to happen until very, very, very late in the year, and it came

together very quickly at the end. how could that already be price income f ed in for last year? >> our price target assumed it was going to happen, which is why we had a 2,700 target last year now here we are at 2,750, it's hard for me to get excited about something that i think was somewhat priced. >> either it was priced last year by you or priced this year by people slower in the markets. this mechanical change in the tax rate, what is not being priced is sort of the ancillary effects of that, that is companies like walmart or fifth third, increasing the wage rates for their workers. >> absolutely. >> or -- >> increased consumption, which we're going to see >> capital expenditures. >> right >> has that been price income? -- priced in? >> first of all, the tax cuts came in sooner than we thought, we could overshoot that. we're not averse to the idea that we're going to overshoot

here but there's a speculative move, a much lower quality move. let's go back to the second order effects. the second order effects have not been priced in, melissa, i agree. higher energy prices as the economy overheats, that's the part where -- the beta trade is over now it's about the alpha trade it's going to be very interesting over the course of the next two quarters where you'll make a lot of money picking stocks or sectors were investors have overestimated or perhaps underestimated the benefits of tax. >> when we started off the show we said is the tax cut priced in so going through all of your mechanisms and your calculus you would say it's priced in for some sectors, not for all. but as a whole, does it market move higher, much higher, substantially higher from here >> i think the market is going to overshoot into the first half of the year. our bull case is 3,000, which we get in the first half.

in the second half, the market realizes this is a lower quality earnings increase. i think it's very hard to argue -- >> because of the tax rate >> absolutely. a tax increase on earnings is a very different type of increase on earnings than what we got the last two years, which was revenue growth and market expansion. i believe the operating margins, incremental operating margins are likely to peak this year you'll see earnings go up but operating margins come down. that's lower quality i don't think the market will figure it out right away it will take time. >> it sounds like you think this was a terrible tax cut, throwing gas on a fire that was lit, and we'll get to a place where ephel >> let's separate the timing versus the idea. corporate tax cuts are a good idea for structural growth it makes my secular case stronger, okay timing was horrendous, okay?

actually the senate originally discussed moving this, not doing this until 2018, that would have been smart of course politics got in the way and we accelerated to 2018 and i agree with you, tim, 100%, it's like throwing gas on a burning fire, all it does is truncate the cycle that's not the end of the world. but let's not kid ourselves in what we're actually doing here we're accelerating an economy that's already below full unemployme employment we're already seeing tightness in other supply chains >> we were caught in a gdp that we couldn't get out of our own way. who is to say this was what was supposed to get us over the hump, when the last eight years we couldn't get over 3%? >> the secular stagnation theme is absolutely correct. we made a call on this in '16, that secular stagnation ended. the cheap money will get us into a full secular bull. great idea, it will still work in that regard but in the very short term, from

a cyclical standpoint, i'm not sure this is the right policy at this time. we'll see, we'll see how it plays out. right now the market loves it. at some point in 2018, we'll get a transfer karen brought up a great point about rates. we always said 275 is where the equity premium starts to wobble a little bit we're getting close to 275 if you get to 3, i believe you'll see a money move back from stocks towards bonds. there is no alternative becomes, no, there actually is an alternative, it's bonds at 3%. >> mike wilson, thanks what did you do today? >> for me, actually -- and tim was talking about emerging markets. last week i bought some brazil this week i added to that position, today i added to that position ewz is where the play is as you see a lower dollar, that's your lower dollar emerging markets play. >> 275 isn't too far from here >> no, it's not. >> it's around the corner. >> it could be days away passing 240 and then 250, it

sort of gets easier, right that's why tbt didn't work i feel like i need some protection against it. >> why do i thread the needle, then >> you don't >> if i really do believe 275 is where things start to wobble and we're not that far away and i had pretty good gains from last year to date, what's the risk/reward here >> i think what karen talked about, a lot of people talked about it, throw nets underneath positions that are reflective of that emerging markets for sure, a portfolio my portfolio i traded acti actively i'm playing for expiration next friday we're in a week to ten days of craziness. i would as soon product for now. i threw some more pedal to the metal once i was protected underneath the stuff that was cheap, airlines, autos, those will be places were the consumption effect is front loaded, if anywhere consumption, those are multiples i still feel comfortable owning.

breaking news out of the white house, let's get to eamon javers on the ground there >> reporter: the white house is now responding to a "washington post" report which reported that the president used a crude epithet when talking about immigrants from certain countries at a meeting at the oval office in the white house earlier today, reporting the president grew frustrated with lawmakers when they floated ideas for restoring protections for immigrantsfrom haiti and african countries. "the washington post" quoted as saying, why are we having these people from shithole countries, we should have more people from countries like norway. the white house now issuing a statement, raj shah, the white house spokesman, the statement does not deny that the president made that comment, raj shah saying certain washington politicians choose to fight for foreign countries but president

trump will always fight for the american people. the president will only accept an immigration deal that adequately addresses the visa lottery system and chain migrati migration, two programs that hurt our country and allow terrorists into the country. the important part of the statement is they're not denying that the president made the crude comment. that is going to probably drive some media coverage here over the next little while. back over to you >> wow a eamon, thank you eamon javers in front of the white house this evening does this impact the trump agenda, grasso >> no, this is actually what everyone expects from the trump agenda >> it's right up there on the trump agenda >> this is his personality like him, hate him, or indifferent, this is what you know that you get already. i don't think it's shocking to anybody. >> although we were shocked on the desk coming up, it's crypto carnage on wall street there's a coin you may never have heard of that's taking off. bk says it's a screaming buy plus score one for intel

check out shares of amd sinking after hours. we'll bring you latest details on the chip wars after this break. it doesn't matter what kind of weather. it doesn't matter what time of day or night. when mother nature's done her worst, the only thing that matters to us is keeping the lights on for you. the hard working men and women of the international brotherhood of electrical workers, dedicated to keeping the power on in communities across the country. because when bad weather strikes, we know what matters most. the ibew. the power professionals.

welcome back to "fast money. we've got a news alert on amd. the stock is sinking after hours. let's get to josh lipton with all the details. josh >> reporter: melissa, amd giving more details about its exposure to those two massive security vulnerabilities dubbed meltdown and spectre. researchers disclosing those two flaws last week that have the tech industry on high alert here amd saying that meltdown is not applicable to amd processors, saying that amd processors are not susceptible. then there's also spectre. the company says spectre is applicable to amd professors they say its architecture makes it tough to exploit. but they are working now with the industry with a combination of updates and operating system patches which will be available to customers and partners. initially amd said it had near zero risk to these threats now the company is trying to further clarify its exposure

intel's ceo was on cnbc initially, and melissa, remember, he said many companies would be exposed, that it wasn't just intel take a listen. >> i can't tell you exactly on the other guys, the other products, exactly which ones are affected but definitely most of the modern high performance processors you're seeing in your leading edge products across that array you talked about, phones, pcs, everything, are going to have some impact. >> reporter: and melissa, a final point here microsoft was distributing patches for the majority of amd systems. amd saying they're trying to correct this issue that paused the distribution of those patches for at least some of those older amd processors amd saying they expect this issue to be corrected shortly, and microsoft should resume updates for these older processors they say by next week melissa, back to you >> is there any word as to why amd didn't just come out initially and say we've got these vulnerabilities as well, we're studying the issue as to

how widespread this is >> reporter: you know, melissa, i know they never said they didn't have any vulnerability, they were careful in the language they said they had near zero risk, perhaps studying it more they're now trying to clarify what that risk would be, at least to spectre on that issue >> thank you, josh, josh lipton from san francisco with the details there. we did see intel shares at least underperformance pretty much year to date because of the news that there is this vulnerability out there. >> and we questioned, one, how true could this be, first of all, if everyone's known about it, and now it's coming out. but also the real question was, we know we don't know with intel, but we think this is going to help amd. that's really the trade. that's why i think the price action is the way it is, simple as that. people tried to play this through amd. obviously intel suffered until we get more clarity, i still think intel -- >> i wonder if now, amd traded

up, intel traded down 10%. now if there's some grayness in the environment now where it's not a flat win for amd over intel, i wonder if you start to see people say, let me go back to intel if there's no difference, period so you could see that reverse happen as well it just happened in the last week or so time for some stock jeopardy the answer, this dow stock is surging. here are the clues it's got a market cap of $166 billion. so far this year it's the second best dow performer and it's up 9% last year it was the worst performing dow stock, down 45% do you know what it is what is general electric that's right cue the cheesy '80s music, it's making a comeback. is 2018 the year of ge tim hopes so, he's been long >> i think we have to answer,

who was that cheesy vocal? >> i'm going to go with -- >> it was a ge commercial. >> they overpaid for that one too, then. look, the reality is, when you cut eps by 50%, when you cut free cash flow expectations by 50%, and you leave a nice -- tom jones, i don't know. >> terrible. >> "what's new pussycat? i believe the sentiment on ge got washed out in 2017, and that what this is with baker hughes worth more than it was even two months ago. the fact that if you think that financials do better here and that this is not a bad environment to have exposure to the economy, ge capital still has $140 billion in assets

i don't think earnings turn around too quickly i bet buck is on the lower side. >> the energy part is interesting. but just look at the stock the thing it has going for it is it's so levered. we're a great environment, and they can start to really move things, that valuation all falls to the stock price, then it -- >> sounds like you're interested >> kind of interested. more in the baker hughes >> i've been in and out of ge, i'm a scorned lover. i have not liked it for a while. i've been rethinking my thoughts on this. here is what -- i agree with you guys in that you have to believe that there's going to be a turnaround and there's going to be surprises in this, right if all the bad news is out, then presumably all there is are surprises. and those could be the catalyst for the stock. so i don't think you get hurt. i would start to nibble at it here >> if we enter into a normal reality, back to 2017 where the true leaders in tech really

start to gain again, we've seen this nirvana where you have everything rallying at the same time this is definitely, to our point, a laggard if you get that back, which i think you will in the first quarter, this is going to be a sell once again. >> so it's only rallying because everything is rallying >> yes rising tide lifts all boats. >> what does that mean, i don't understand that. >> if you go back to tech outperforming, if you go back to faang, if you go back to s.t.a.b. >> gotcha. n noncyclical and nonvalue plays >> this is definitely a dog showing some sorts of life to it if we don't get everything lifting at once, this will be the first to be let go coming up, bitcoin cinchisi. there's another coin that bk here says could be your ticket to crypto paradise he'll reveal that name

i'm melissa lee. you're watching cnbc, first in business worldwide meantime here is what else is coming up on "fast." missed the move in energy? don't worry. another group of stocks closely tied to oil's fate is also surging and our traders see more room to run. plus the last time karen pitched a stock, it surged 12% in a month now she's got a new name that's hit a 52-week high today you won't believe how high she sees it going, the name when "fast money" returns

cryptocurrency is getting crushed as one of the largest markets is getting ready to crack down on it

bob pisani is live at the nyse hi, bob. >> reporter: hi, melissa south korea's justice ministry is preparing a bill to ban cryptocurrency trading it's one of the marriage markets for bitcoin and ethereum as well ripple "the wall street journal" is reporting that china is ordering the closure of bitcoin mining operations they've already shut down exchanges that trade cryptocurrency this is ramping things up a little bit a u.s. senate panel is holding a hearing next month with top market regulators on the risks cryptocurrencies pose to the u.s. financial system. elsewhere, for all this ruckus around bitcoin, have you noticed that bitcoin has been fairly quiet since bitcoin futures started trading on december 10th on the cboe? it traded in a wild range going into that. other than that brief blip up, it's been between 13 and 16,000 since then pretty quiet compared to the wild rides of ripple and ethereum, for example. there may be something to the argument that introduction of futures has made bitcoin less

volatile or maybe, melissa, your show is the reason volatility is lower. you introduced the bitcoin bug that was around december 17th, as i recall. that's right as the cme bitcoin future started maybe it was you, who knows? notice ripple is the only big cryptocurrency that's up today for good reason, they inked a deal with money gram who will test the ripple infrastructure for use in transferring funds around that's a big piece of news, because that's the purpose of ripple transferring money between financial institutions back to you, melissa >> all right, thank you very much, bob pisani we were talking about that with one of the creators of ethereum, the use case >> right and this is how you value a coin could also include what the use case is for the platform, right? >> yeah, and i think people are looking for the most interesting use cases to derive the highest multiple for their coin. but again, i think valuations right now are really

challenging. that doesn't mean, you know -- >> across the board. >> that doesn't mean the reason for being and the proof case is t not being proven right now i think people are buying because it's going higher. >> the china mining thing is great news for all the miners in the world. >> yes so about 70, 75% of the mining is in china right now. so the question is, a lot of those chinese miners are moving out. the question is how quickly can they ramp up in other parts of the world. michelle had a great report today from washington state, big bitcoin mine there it's very positive in the sense that you don't want to have all your mining concentrated in one country, that's a centralized type of thing. if we can get this dispersed across the world, it will be a

positive for bitcoin in the short run, you could see hiccups. >> i don't know what valuation you could be looking at. i traded around the peripheral i traded with overstock, because then you deal with -- >> you're buying that on valuation? >> no. there's no valuation >> just making sure. >> you just said you were afraid of valuation in bitcoin. what's the valuation you said it. >> i think we're on a different show we can't be on two different shows right now. >> did you not say people are not buying bitcoin because they're nervous about valuation? >> hello the point is you're buying overstock. can you get a handle on valuation there? >> blockchain. i'm buying blockchain. whether or not bitcoin is successful or not, blockchain will be successful in the longer term i'm buying that based on t-zero which is their ico despite the regulation talk, bk says there's one coin that

should be the next shiny addition bk, head over to the plasma. >> i'll try to walk and talk the interesting thing about the regulatory talk coming out of south korea, i wouldn't be surprised if they go the japan route where they are really good regulation, similar to what we have here in the u.s but let's take a look at one coin that was interesting to me that i bought today off of that ripple news. so i think that ripple news was very big ripple had the use case for it, to send stuff around the world now you'll be able to actually use the currency or money gram will start doing that why don't we look at another one. stellar. stellar is one that is very similar to ripple. it's created by one of the creators of ripple effectively the company split, and they went out and created stellar. they're already working with ibm. they inked a deal with of them to do cross border payments. ibm has a payment system similar to kind of what money gram wants

to do. it's faster and cheaper than bitcoin. you can move stuff around faster and it will cost you less than bitcoin at this point in time. those are the things i like about stellar. let's go to the next slide all right. money gram deal with ripple. i actually think this is a watershed event for the industry the biggest problem that people have had is, okay, why do i use these coins? well, you use it if you're money gram so you don't have to hold a lot of foreign currency. other people will start looking to see, okay, how do i compete against money gram they'll get their margins lower. i have to go out there and look. who do i look for now? somebody that's very similar to ripple that has a deal with ibm. and i can get bigger margins or at least i can make more money like moneygram wants to do and the partnership with ibm, that's very important here we talked about how ibm doesn't get enough credit for what they're doing. now let's look at the chart. let's look at what's going on here okay so stellar, here you go. you have this big, big run

that's all on the ibm news boom, we're down here. it's trading at about 55 to 60 cents or so. i think you get another jump up there as more news starts to come out and more people start to look to use this technology >> hi, bk. >> hi. >> question for you. how big is the market cap of stellar right now relative, and where do you think those would potentially converge or what do you think the future upside could be >> yeah, well, so the market cap on all of these things are somewhat outrageous. and by that i mean outrageous when it comes to stock parameters we're talking about currencies here so they can grow to the size that they need to grow ripple in a sense, or where do i think it can go on the upside, trading at 55 cents, would not be surprised to see this thing at over a dollar, so double, especially if they announce some kind of news or somebody comes out and says we'll start using this like money. >> play sales trader for me. on a week like we've had where things are pulling back, what

are you seeing in terms of the momentum, are there scared sellers out there? think about the hands holding this, not a lot of strong hands, so to speak. >> what you're seeing is u.s. investors buying, asian investors selling, which is creating this dynamic where bitcoin is trading in this very large range. >> what exchange can you buy stellar on >> the polonius exchange is one i've used. ahead, a major boost to one group of stocks. we'll reveal what. plus karen has made her way over to the plasma, she's bumped out bk can she convince the other traders? find out when she delivers her fast pitch much more "fast money" right after this and big plans. so how do i make the efforts of 8 employees... feel like 50? how can i share new plans virtually? how can i download an e-file? virtual tours? zip-file? really big files? in seconds, not minutes...

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back in july, karen said gm was going to rev up. >> i got a lot of reasons why you should buy it. the first one, for me, always, valuation. at a "p" multiple of six, ridiculously low, one of the lowest in the s&p, and a dividend yield of almost 4.25%, on a valuation basis this is ridiculously low >> karen was right since that call, the stock is up more than 23%. so what are you doing now? >> i'm doing a new one now

another pitch. >> you're still in ge. >> i thought you meant right now. gm, i'm still in it, i think it's cheap all the things true then are true now the market is a lot higher, we do have a tax cut, that's good for them still in it. >> karen's on a roll now why don't you pitch us your next stock >> i'm going to walk to the plasma and pitch my next stock all right. this stock today is delta. a lot of action in the stock today. it's been up but i still think there's a great value here that's always what i turn to first, valuation so they up their guidance today. they think the average or the midpoint was 652 on a p/e basis, it is very attractive it's a cyclical, and p/e's are not going to be the same for cyclicals as for the market at large, but there's a lot of room to run here. at the conference call today,

they talked about seeing growth around the world they'll have revenue growth from trans-atlantic, latin america growth, domestic growth, and pacific growth they talked about all cylinders hitting, which is really what you want to hear after having a little bit of a difficult time in the second half of last year. so this is economic momentum is really important if we look at the stock versus not just the s&p, where is this here there we go. not just the s&p, but also look at the euro stock index. delta is far behind. there's a lot of room to be made up there that is underperformance relative to where it could be. that's the second point. there's a few other points i want to get to i don't have time to get to all of them because there were so many good things that happened on the conference call cost per average seat mile, they talked about zero to 2% and closer to zero that's really important. that's what's going to help their margin that's what's going to help them earn more. one more thing they said, that

the business traveler was not included in the projections they made last year which did include the tax cut. but business travel is going up. all that having been said, delta airlines, even though it was up, i still own it, i still like it right here >> hi, karen, it's tim >> hi, tim >> i am a delta holder, i like the company. but i was worried on this call, they talked about fuel prices being higher yet they're keep their top line four to six bucks in growth. that doesn't make sense to me. also very noisy, changing conventions in terms of ebitda some of this stuff was funky for me >> they get a little benefit on the fuel costs they also raised the specter of being able to add fuel tax surcharges this administration may be open to it. that gave me a little bit of comfort. >> are you buying or selling

karen's pitch for delta? steve grasso >> sure. whatever karen says. delta has tremendous upside from here and if the transports continue to perform, delta probably has an outsize gain. >> bk? >> yeah, for bk, it's not a flier, it's a buyer. i like the breakout on this one. anybody who can pitch a frozen rope in those heels gets my vote >> tim >> big buy never ceases to amaze me how sentiment in the airlines can be all over the place on the same news, which is what it's been for the last six months. stay in this name. >> clean sweep on the desk did karen's pitch for delta make you want to get on board the stock? vote @cnbcfastmoney. we'll have the results later in the show solar etf hitting a two-year 'lte yoday wel llou what's behind the mo move much more "fast money" right after this

welcome back to "fast money. while everyone is focused on the energy rally, quietly a group of stocks closely tied to the group have been shining and hitting a multiyear high today breaking it down is seema mody from the newsroom. >> reporter: melissa, traditional oil and energy stocks aren't the only things heating up take a look at how hot solar stocks are one proxy is the guggenheim

solar, shares have hit their highest level since early 2016 it's up 6% year to date and up 50% over the course of the past 12 months. this is an exchange traded fund that has around $475 million in assets and some of the top holdings include more well-known names in solar energy sun power is among those names, up 13% just since the beginning of the year. canadian solar gaining 3% in that span. and first solar, the biggest weighted of the fund, up 13% year to date a lot of the gains in some of these stocks is the result of trading today, helped look by positive analyst commentary by vertical group about first solar. a big caveat here is that many of these solar stocks are still a long way from hitting their multiyear highs. it's pretty cool compared to where they were three or four years ago. >> thank you, seema mody in the

newsroom what do you think of solar >> i have one position in the space, solar edge, in the inverter business. potentially a little bit of pricing pressure there a couple of years ago, oil fell out of bed, the solar trade completely died. i'm surprised they weren't as hurt by the tax bill as they could have been, it could have been worse options traders are betting on a golden rally for one solar stock. let's get to mike khouw in austin, texas, where things are looking pretty hot >> dude. >> looking to harness the power of options, four times average daily volume today acquirers of the january 75 calls, buyers of those are making bullish bets that the rally will continue and first solar can top $77 by the end of next week. possibly some of that related to

news that trump might put on protectionist policies >> mike, are those blue blockers >> these bad boys are oakley right here >> of course they are. that must be a black light poster from your bedroom behind you. >> he's doing the cannabis trade. >> mike, thanks. looking pretty cool in that hot studio for more "options action," check out the full show, tomorrow at 5:30 p.m. eastern time are you with karen do you see delta stocks soaring past the 52-week high? or is there turbulence ahead for the airline? results later on in the show well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point.

that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.

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welcome back to "fast money," breaking news on fiat chrysler phil lebeau is on the fast line. >> reporter: phil, this is a big announcement from fiat chrysler all in relationship to the savings the company will be receiving from the new tax law it will be investing $1 billion in the warren heavy duty truck plant. as part of this, it will be moving its ram heavy duty production from a plant in mexico to michigan as part of that move it will add 2,500 jobs finally, the company is saying it will give its 60,000 hourly

and salaried workers in the united states a bonus of $2,000, in addition to the normal profit-sharing the company does every single year. again, fiat chrysler making a big statement, saying because of the changes in the tax law, it's time to invest in its footprint in the united states it's moving the ram heavy duty truck production from mexico to michigan, adding 2,500 jobs, and investing a billion dollars at the warren truck plant in michigan melissa, back to you >> thanks a lot, phil lebeau, with the latest on fcau. first of all, this hits at the impact, the positive impact from corporate tax. it gets at the immediate depreciation of capital expenditures >> bringing them back home >> exactly and it front runs any changes to nafta. it's really a stroke of genius on the part of fiat chrysler >> you're also seeing toyota announce more plants and jobs.

the big challenge will be building more cars in the united states this is a manufacturing hub again. and the move, by the way, by fiat chrysler has been ast astronomical since late december >> this is a big deal for the country. we've seen some of these moves prior to the tax cut, we'll have three jobs in this county here or there this is moving a plant this is a billion dollar investment to grasso's point at the top of the show, this is not priced in. >> how can prices not go up for cars >> the argument for staying in nafta is the auto parts makers are in mexico, there's a whole supply chain built around the fact that factories are in mexico if these plants are going to the united states, there has to be a revamp of the supply chain >> for people who think it was just a corporate tax cut, there's going to be more money in workers' paychecks, more

money in their wallets, more money to spend it is a great tax cut that we don't even see >> more inflation. >> yes >> more inflation rang in my ears >> it's not just for corporations this will have domino effects through your trickle down, they use it in a derogatory way, i think it will be a great tax cut for the country. did karen's pitch for delta make you want to buy the stock head to twitter right now and keouvoe ard. the answer after this. ♪ [speaking french] ♪

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welcome back you know what's good to listen to on long flights >> yes, that song. >> toni braxton's "unbreak my heart. america is not buying karen's fast pitch >> it's okay i get it, though here's the thing hard to buy a stock up a lot if i went home long, it's the same as i bought it on the close. >> final trade >> i'm happy with her airline call, i'll go with united airlines >> i kind of got to do it for my final trade, delta airlines. >> more money in people's pockets, they buy apple. >> here is a trait on that climb, avis budget started talking about that at 35, now trading at 48, making the climb to 70.

tim gets a chance to be wrong on this trade as well >> something you know well, steve. >> fighting words. i'm memblissa lee. thanks for watching. "mad money" with jim cramer 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 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 isn't just to entertain you but to educate and teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. oil and airlines, they don't mix. jet fuel is number one cost for the airlines, so