president george h.w. bush, 41st president now inside the capitol building just coming up the rotunda building john harwood is with us as well. john, remind us what is taking place in the hour ahead and the days ahead on the celebration of the president's life.

>> well, before george h.w. bush was republican party chair, cia, ambassador, all those jobs that made him the most prepared to become vice president, and president, he will lie in state in the people's house where the nation can pay its respects, where members of congress can pay their respects and then of course we'll have that state funeral on wednesday attended by former presidents with a eulogy by his son, george w. bush, the 43rd president, and by president donald trump who will not speak but will be in attendance. it will be a week long of remembrance for george h.w. bush and it begins in the house of representatives where he started his career in 1967 as a congressman from houston >> it was an emotional moment to watch and to listen to the himalay

hymns. it was a patriotic moment. we'll hear remarks from senate majority leader mitch mcconnell, vice president, mike pence what sort of messages do you expect to hear >> i expect everyone to pay tribute to the personal qualities of george h.w. bush in the republican party many of his ideas are no longer fashionable, but the human qualities that he possessed are things that are appreciated across the political spectrum, love of country, love of family, personal kindness in his relationships with people high and not high on the social or economic ladders i think people are going to pay respects for what george bush as a man was, and that's something that we can all appreciate >> and, john, patriotic word sarah used, emotional there that last half an hour or so. we saw a number of family members and former colleagues wiping a tear from their eyes.

colin powell one of them and of course the president's son, the 43rd president himself, on camera a lot alongside his wife looking very emotional himself >> george w. bush, jeb bush, neil bush, dorothy, you can expect them all to be emotional. it was moving to me to see that procession a former cabinet member of george h.w. bush, colin powell, nick brady, boyden gray, people who are now older but are linked to a time that many people in the united states miss right now given the way our politics is and we can savor that for just a little while. >> as we see the vice president, mike pence, house speaker paul ryan, mitch mcconnell, the senate majority leader all expected to give remarks as i mentioned. tell us, john, a little bit about how this is changing the schedule for congress. no votes scheduled, right, until wednesday? we're not going to hear from, for instance, jaypowell of the

federal reserve who was set to testify on wednesday the market's going to be closed. what else is changing in washington as a result of the mourning and celebration of the death of president bush? >> well, most importantly, sara, the friday deadline forex tension of government funding is going to get kicked back a couple of weeks. it looks as if now the new deadline is going to be december the 21st rather than december 7th, this week of course, most of the government's funded but a big chunk is at risk of being shut down in that controversy over the border wall. i don't think it's finally been pushed through it will require unanimous consent in the senate, but it appears as if there's will on both sides to punt this for a couple of weeks, face a new deadline closer to christmas and see if that is enough to push them to the kind of deal that will avoid a government shutdown >> okay, john. thank you very much. we're just going to watch the casket being placed here in the capitol building

john was saying where he started his political career, the former 41st president of the united states. >> should know president trump has ordered flags at half staff for 30 days. also declared wednesday a national day of mourning which is the same day the memorial service is expected to be held at the national cathedral where he will be eulogized by his other son, george bush, the prime minister of canada, his biographer, jim meachem. >> expected to be attended widely by foreign leaders and domestic leaders wednesday morning at 11:00 a.m., that service. he will rest here in the capitol building until shortly before that for the next 24 to 36 hours. there is, of course, his eldest son, the former president 4rks 3rd president of the united states and his wife who has looked solemn and emotional,

understandably, in the last couple of hours. >> and just to recap what's going to happen. his body will remain here in the capitol until wednesday. it will open for public viewing tonight at 7:30 p.m. wednesday, before, of course, that funeral that we described cnbc will have this covered for you. it is historic it is emotional. as i mentioned, it is patriotic as we continue to look back and look forward at the legacy of president george h.w. bush. >> our thanks also to tim mcqueary and michael boskin. that does it for "closing bell." "fast money" picks up right now. we begin "fast money" tonight with another big story out of the white house today trade war relief this is what wall street had been waiting for the dow surging nearly 500 points at the highs ending up nearly 300 points as president trump and president xi agreed to a 90-day truce which technically starts on january 1st. that seemed to be enough for

wall street at least for now for more on what this all means let's get to ylan mui. >> reporter: the grand compromise coming out of the g20 is fewer tariffs and more talks. the u.s. has agreed to hold off on raising tariffs to 25% on $200 billion in chinese goods. those are going to stay at 10% while the two sides keep talking. now the chinese have 90 days to come up with major concessions on issues such as forced technology transfers, i.p. theft and other issues that countdown clock starts on january 1st. >> they put on the table an offer of over 1.2 trillion in additional commitments, but the details of that still need to be negotiated these are big numbers, but i want to emphasize, this isn't just about buying things, this is about opening up markets to u.s. companies and protecting u.s. technology. those are very important structural issues to the president.

>> reporter: that was treasury secretary steven mnuchin speaking on cnbc earlier today still a lot of questions though over exactly what was agreed to. president trump had tweeted that china would get rid of its tariffs on u.s. autos, however, the white house said that that could actually start today but china made no mention of getting rid of those tariffs on u.s. autos in its official statements meanwhile, the sleeper issue could wind up being the u.s.mca. on the plane back from argentina president trump said that he would withdraw from nafta in order to force a vote on the u.s.m.c.a. in congress melissa, trump needs to give written notice to both canada and mexico in order to pull out of the deal. he would have to give that notice six months in advance of any withdrawal we'll let you know if we see any sort of official statement back over to you. >> ylan, there's also confusion regarding the chinese statement and what the administration has

said and differences from the statement that was initially given and what larry kudlow said for instance, on the amount of goods china would purchase from the united states. in the chinese statement there's no mention of a dollar amount and larry kudlow said there was a ballpark trillion dollar figure with no time frame. it's interesting how some of these details really aren't details at all. >> reporter: there are certainly different interpretations then of what was agreed to. you heard also secretary mnuchin saying the $1.2 trillion number. also we heard from peter navarro that said that 142 separate points were brought by the u.s. and china agreed to many of them as we sort of sort out exactly what the particulars of this arrangement are, i think that's going to be what's critical going forward. all along it seems like china and the u.s. have been operating from different play books. we'll see if they are on the same page, if they can come to an agreement in the next 90 days

or if they keep talking past each other. >> ylan mui in washington. thank you. is santa claus coming to town >> what have we got? >> actually, i don't know. i lost count. >> don't go grinch on us >> happy day. >> early in the christmas season. >> what day is christmas this year on a tuesday. >> it is. >> 25th. >> so -- >> is the santa claus rally on last week we said, look, president trump is laser focused on the stock market going higher they will come out of this weekend with some sort of handshake, some sort of deal in principle to move forward. the market would rally on monday i belt you though if you put a lie detector on mr. kudlow or president trump and asked them what the market would do today, they probably thought it would be a multiple of what we had maybe a lot of the rally was done on thursday and friday, but to answer your question, short of something disastrous happening, the seasonality suggests the market will grind higher. >> i thought today was the base

case i didn't think the market should have rallied i thought this was base case coming out of it last week getting pop in the market should be sold. we failed right at the 100th day moving average we failed where we failed october and november i still think it's a sell i don't think anything has changed. >> i am encouraged that you didn't see a 2 to 3% move in th s&p. i'm very disappointed in the bond market. we went from 206 to 207 to finishing down at 297 and you actually had some inversion in the curve from three to five years. i don't want to get too crazy into yield curve dynamics, but the fact that we haven't done that in over a decade is concerning the market reacted today to me you take a trade war at least and push it out or take it off the table or give you encouragement that global growth could actually get a boost, you see this happen to the bond market it tells me that the market is telling you that we're already concerned about global growth. this is too little too late. >> i'm sorry, i think they sold

the shorter term maturities based on risk on. >> and the longer term because they based that off the fed moving closer to neutral >> right >> that's a problem from the overall market 2s, 10s, 3s, 5s. >> that chart we showed is pretty ugly. when you get to the point where it's 14. >> karen, it's not good for financials we saw that in today's action in terms of financials sitting out the rally and so didn't regional banks. that has to be a concern >> i don't know. that might be a little bit more of a technical thing than necessarily an indictment on the economy. i thought today the market opened much stronger obviously as it became clearer, i think you tweeted something very early this morning that there's a little bit of fuzziness around what the details are in fact, i didn't know that the 90 days started in january 1 until today. >> right. >> right we didn't know that over the weekend be so that doesn't give me a whole lot of confidence that they've

really made a great deal of progress >> right the auto tariffs, for one, there's a difference between the chinese will roll back entirely probably the auto tariffs to there is no agreement on auto tariffs. there couldn't be farther positions on that one issue. >> not only that, tariffs remain i realize that 10 is not 25 but 10% tariffs and the acrimony we have and the way this has led to at least a push back on trade around the world leads us to a place where, again, we've got a job number on friday and we've had a fed that's dialed back the rhetoric i would argue that that was the bigger part of this move we're up 10% on the lows semis have gone up almost 11%. you've had a very nice move in a short amount of time >> one more thing. uncertainty remains. certainty, even if it's bad. >> sure. >> can give you some floor. >> right >> we're still in a very uncertain point. >> if one of the concerns that we've gotten out is a slow down

in the cap ex do you think there will be anymore uncertainty saying i am going to spend on this plan, hire these people >> no. >> we're in the same position we were 48 hours ago. >> not for the next three months at least, right? >> that's true >> four. >> effectively, four, that's correct. it starts in january the short answer is none of us -- i don't think any of us thought last week there was going to be anything substantive come out of this we said the optics of this would get a market rally on monday and here we are. i thought the rally that we saw overnight and early this morning would hold it didn't. i don't know what it means maybe a lot of the rally was taken up thursday and friday ahead of this. with that said, now you have a fed that's probably backing off a little whether we're reading it rightly or wrongly doesn't matter. that's what the market's interpretation is. now you're giving yourself three months the seasonality december brings maybe some pitfalls but we probably close a month higher. our next guest says the rally is back on

let's bring in john staltis. great to see you in person. >> great to see you as well. >> how strong is the santa claus rally going to be, do you think? >> i think we can get 7% out of it. >> wow. >> you mean in the next month? >> big bag of goodies. >> from here to the end of the year it doesn't mean -- it's not a straight up motion but you remember october 2014? there was some kind of a dip that occurred. everybody thought everything was lost by the end of the -- by the end of october 2014 the market had made up where it had been, it was up around 7% to the end of the year it had a nice run i think we could get it. the reason why is the fundamentals are still good. people are plenty worried. that's a good sign and there's a real hot fire under the chairs of both president trump and president xi because they both recognize for xi it's 2025 he can't really risk hurting that image of made in china in

2025 and for president trump, he's got a 2020 goal with the election coming up and i think he wants to move on to other agenda points like infrastructure and health kcare so i think we have a good chance. >> help me think about the 7% rally that's going to happen in the next three weeks you said it's not going to happen a straight line up but it has to happen in a straight line up in order to get 7% by the end of the year. >> you know how this market is it can be very volatile on a day-to-day basis but it can be very quick to recoup perfect rate i think we've got a real shot at that >> what does that rally look like in terms of the sectors that get us up there >> i think we got an idea today who were the best performers i don't agree with energy but i like technology and consumer discretionary. that's benefitting from higher wages, people feel more confident they're going to keep their jobs and technology has

just been abused ridiculously since october if you consider that technology is probably at the point where the automobile was in the early 20th century when the car began replacing the horse. the changes are so dramatic in the way companies deal with other companies, the way they deal with their customers, the way customers deal with companies and now medicine is around the corner to be distributed, you know, by smart phones, things like that there's a lot of stuff happening and the market's not recognizing it. >> john, when you talk about higher highs, you have divided government so you don't get the pro growth you don't get regulatory relief. you have higher rates no matter how you slice it even if you think he's moving slower and you have slower growth so how do you get higher than what we've seen when the picture has changed dramatically >> well, that's -- i think you're projecting overly dramatically i don't think -- >> i didn't say 7% before the end of the year.

>> okay. i don't think we have a situation where the fundamentals have changed dramatically. what we have is things are uncertain and that things will remain as uncertain -- at least as uncertain as they are because the politicians won't get off a dime but i think they are going to get off a dime because china is not doing well it's slowing it's got a lot of challenges and in the u.s. we've seen some slowing come in but, you know, it's not drama zblik what happens after the 7% is reached by the end of the year is that your opportunity to sell or does the market keep going higher >> i think for traders it might be a time to take profits if we get that looking into the first quarter, just because that would be a fairly fast run up, but if you look at that situation, for investors it would probably be a good time to get in now, ride it and go into next year with an

opportunity to see this market continue to -- this is a market that has risen for the last 9 1/2 almost 10 years. it has climbed a wall of worry it has also -- it has paused at various times. we've seen the economy slow and people right away start projecting recessions and -- >> right. >> -- reduction of dramatic reduction of earnings not related to tax reform, just on a fundamental basis. it doesn't happen. what it is from a fundamental perspective, technology and what the fed has done have skewed the cycle so we're in a very wide mid cycle, maybe towards the end of that mid cycle, but that's good for the market. >> john, thanks. predicting that santa claus is in fact coming to town with a big bag. >> of all the rank and bass -- >> what's rank and bass. >> it's only for the deep

cultured folks out there >> in terms of the sectors that you ride to the end of the year, do you agree with john >> 7% after the 7% we've already had looks very ambitious i don't want to push back on john's fundamental thesis. >> but you are. >> the places that benefit most from uncertainty are the places that were most destroyed by the process of trade let's go to emerging markets they're through the 50 day a lot of technicals and it's not usually what i would choose to talk about but they've been weighting down some of these other parts of the world you were sitting at breakout before this trade news came so i would stay in those trades brazil continues to out perform and i like the big mega cap china news. >> karen, in terms of retail, they sort of got a stay in terms of the additional tariffs that were going to come in. >> right. >> does the back drop look better >> somewhat better

coors and at that poitapestry kors is trying to move its construction elsewhere and has been trying to do that for a while. i agree with john on the strength of the u.s. consumer. i think we'll have a good holiday. coming up, another trade war winner check out shares of nike surging the last week. citigroup is calling it the top kick of 2019 do the traders agree if you don't trust the bounce this week, there is one group of stocks that could beat the market in according to the chart master. big tobacco is targeting big pot. a top analyst will tell us if a flurry of deals is coming and who could be the big winners wee ve i'rlin times square in new york city. much more "fast money" right after this

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mom. ♪ welcome back to "fast money. shares of nike jumping up. enjoying trade war relief and citi naming the stock the best stock for 2019 continuing strength in nike's global growth story is a catalyst for big gains it believes the stock deserves a premium multiple shares are up 25% this year. that's a big gain so far, tim. >> it's a very big gain. it gave some back and it's regrouping the momentum in north america is there. innovation is now back into this brand. the fact that the macro in china and across europe that at least for now continues to be a tailwind should be here. i continue to like it over adidas and some of the other

names in the space i would stay long the trade. >> on a technical basis when you see the high from a couple of months ago to the low recently and you get this retracement bounce, you want to sell it at the 50 or the 618. that's right where it is right now. i'd be a seller purely on technical reasons. >> reports on december 20th, i understand what it's saying. it's going to rally in earnings. it's trading close to 25 times next year. that's a big multiple. however, given everything you can grow into that multiple. i do think though it might stall here it continues to rally into december 20th earnings release. >> foot locker has a cheaper way for sure they are both competitors and they work together the biggest supplier to foot locker foot locker at 12 times suny is interesting. >> 12 times versus 25 times. >> yeah. >> she's not saying this, but they're totally different businesses. >> well, they're not in totally different businesses >> we are talking about sneakers here, but again nike is the manufacturer they have direct to consumer or they can go through their normal

distribution outlets i agree with karen we thought foot locker was being priced as if they were going out of business. they're not. >> investors dive into dividends. the chart master will tell you which ones can take you higher. check out shares of cronos it could be a possible big target takeout for tobacco how likely is a deal and who could be the next target i'm melissa lee. you're watching cnbc, first in business worldwide much more "fast" after this.

welcome back to "fast money. as the markets grind higher high dividend stocks are coming back in vogue as a chase for yield is back on. dom chu is here to break it all down >> melissa, so far this quarter traders have been dealing with a lot more volatility than they used to. down side volatility has put many value oriented stocks, industries and sectors back into focus. those are the stocks that

haven't gotten a lot of love or attention for the past few years. and dividend payers have fallen into that discussion but as markets have fallen, at least some investors have turned towards these high jereltive dividend plays look at the spdr high dividends at ticker spyd it invests in high dividend paying stocks. it's gained just shy of a percent. modest but the bigger cousin spydr at spy is down 4% that trend has played out as they've gotten more defensive like those in tech and communication services you have utilities, tech and real estate and they've been the best on a quarter to date services while energy, tech, consumer discretionary have been the worst. that means the relative valuation of those dividend paying sectors has gotten more

stretched. take a look at the consumer staples which trades around 18.5 times expected next year's earnings compare that to the tech sector which trades at around 16.5 times forward earnings and the overall s&p which trades at 15.8 times forward p.e. melissa, it's not to say that dividend traders are a crowded trade but they've been a magnet for investor money back over to you guys. >> thank you, dom. dom chu in the newsroom. there are a few high dividend names that could help you pump up your name carter breaks it all down. >> hey, thanks look at some sort of really long-term charts and fee cuss on two names, one quite good, one bad but staying away from utilities as picks because it's obvious, yes i like them both so this is since the 1990 recession. 28-year chart. we all know the importance of compounding. you've got the s&p here.

and you've got the total return with dividends reinvested, basically a double now what if i add the following, now take a look? you've got here the s&p 500 dividend aristocrats index well established, old line companies that have paid quarterly dividends and make every attempt to raise those dividends. this really speaks to the power of total return and yield. with that, let's look at a few things that are sort of obvious here top chart is the utilities over the past two years and the bottom chart is relative performance. obviously in a bullish phase a defensive heir will do this. what's happened as of late, everybody knows this, utilities for the first time have moved above the down trend line that's been in effect the past two years. that's a very important development. you also have what i would call a well defined head and shoulders bottom and the bet here is that this is going to continue to outperform

finally when the market and utilities were coming off in october, we know that the relative performance, with i is opportunity be at this costs, goes straight up ideal. so it's the same for reets we can do the same chart putting it in line but the principle is in effect. as this is selling off, that's the important thing, it sells off with the market. in general it's all but -- it is going straight up relative and also, again, we are above the down trend line and that's key all right. two stocks cisco, i might have three on here we'll see. cisco, you know, big tech is over done. this is sleepy tech. old tech what i think you've got here is a fairly well-defined set of tops and this stock is toying with the prospects of breaking out above those highs. i like this a lot. i think it's both offensive and defensive. pepsi, you can draw the lines many ways. some people like to call it head and shoulders. some people like to call it cup

and handle again, you have the circumstance of well-defined tops at a common level and the bet is we'll exceed those tops, break out, relative performance is tremendous and so forth. one that's got the highest yield of this basket, 4.5% but it's not tempting at all. something is very, very wrong. some people think they're ultimately going to cut the dividend and that this is a classic break in trend it has all the look of a top and if they cut the dividend, listen, not good, very, very bad. >> carter, come on over. >> thank you. >> i think maybe in 2019 we can get back to when you -- >> you're a champ. >> not you >> it's whether i'm going to ask whether you're going to come over. >> for carter it's a slam dunk that he comes over carter, does it say anything about the broader markets if you're predicting real estate and utilities, those are the sectors that are going to

outdo -- >> what we have, as something ages you first get bifurcation in the u.s. market, financials never improved we know industrials. as the market went higher crowding into isrgs doing work in the operating room and taking those out. the final part of that is people acting very defensively. people are crowding into coke, pepsi, clorox in addition to utilities and reets. these are companies that are not good valuation and don't offer great growth potential it's simply i have no other choice posture often it's not that unwise to do >> broader market cbw, today's price action obviously something could happen tomorrow but did today's price action give you pause at all should we have held the earlier gains? did today tell you anything? >> i think it was very sloppy. at one point we know the russell was negative, the bkx was

negative at one point. there's something that's awfully impetuous about the gap. that's exseatingly rare. something that trades 24/7, that's hard to get there's also this. remember the monday october 29th, we ricochetted 26.03 to 28.15 then we gave it all back this ricochet looks awfully similar to that prior ricochet i just don't think it's got legs. >> carter, thank you carter -- >> that's right where we stopped at the 100 day moving average which is 28 point be point 15. that's where we stopped on october 17th and on november 7th or 8th -- 7th and 8th, that's where you're running into resistance i think better risk/reward is to take profits, sell pops. this semi stock is up a whopping 40% here. guy here says this could be the start of a bigger breakout he will give us his fast pitch. plus, a crazy day for

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welcome back to "fast money. we have a market flash of cirrus logic. >> melissa, stocks are down as much as 10%. now it's down 5% or so the company saying it is reducing its expected revenue from 300 million to 340 million

that's down from 360 to 400 million due to weakness in the smartphone market. the stock is down 11% in the last four weeks. last week, corvo slashed their fourth quarter guidance. this is another smartphone supplier cutting the guidance because of the weakness in the smartphone market. >> guy, you're pointing out this is not the first time cirrus cut. >> no, they cut november 1st they took revenue guidance of 420 million down down to 3 of60 down to 340, 300 i'm surprised the stock is not down more than it is maybe the fact that it's been going basically lower for the last couple of months is buffering some of this people will say is apple going to be on the back of that? >> yes. >> the question is did app already get hit.

>> that's the question for them to come out and cut guidance just after a month, right, after cutting guidance, it tells you that maybe the smartphone market got materially weaker in that time frame, which is what i would be concerned if i were an apple shareholder. >> right. >> somehow the latest data points are indicating there's continuing weakness in this market. >> it really hasn't moved much in the after market, apple has maybe to guy's point, pessimism definitely there was a cloud over apple. >> it sold down to 170 and popped to 184 on the euphoria with trade and the fed. >> down from 230. >> totally get it. you could have that risk if the market doesn't hold in you wind up selling tech again tomorrow you could revisit the lows again in apple. >> let's go to fast pitch. i think guy has a fast pitch speaking of which. >> i'm going to stroll on over. >> saun ter. >> you know, a lot of companies start with the letter a and obviously you get to the end of the alphabet and what are you

left with? tim, what are you left with? >> z. >> since i can't think of anything good in the z world, i'm going to do the x world, xilinx wait a second, guy this stock has gone from 70 to 95 in a straight line from the middle of november that's correct a lot of chip stocks were getting bludgeoned over that period of time, here's a stock that actually went higher. that in my world is a bit of a tell ai all the rage in 2019. i think it will be field programmable gate array. don't ask me what it means, but it basically means instead of the chips being programmed at the manufacturing plant, they get programmed on site internet of things, ai, that's all anybody should be talking about in 20189 and xilinx is at the top of the food chain. it is a possible takeover

candidate. remember broadcom/qualcomm i wouldn't be surprised with a 23, $24 billion market cap that xilinx becomes attractive. the smart question will be, somebody is going to ask, valuation is ridiculous. it is. at 26 times forward earnings it's expensive the real issue is are they going to grow into that multiple sort of like nvidia did i think they're in the right space at the right time. >> guy, aren't we finding ai to be priced in like every other part of the semi and chip space. >> that's been the range, internet of things, ai the question really comes down to, again, they're the first movers in this space and if they have the advantage of being there, and i think they do i think, listen, 26 times forward earnings you could easily make the argument that all of the good news in ai is

priced in. i would push back and say i think there's more good news ahead. that's what makes markets. >> no more questions it is time to vote are you buying guy's pitch on xilinx >> i say buy it. match it up against the s&p. yes, it moved within but to guy's point, when you had the rest of the space getting demolished and this one hung in there. that should tell you something buy. >> karen >> yes, no deal for me too expensive. even to itself >> i'm throwing a scrooge at guy. ba, humbug >> grinch, scrooge. >> the desk has spoken you at home have an opportunity to buy or sell guy's pitch head over to twitte twitter @cnbcfastmoney check out shares of cronos what does it mean for the cannabis crave a top analyst will weigh in. stay tuned

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cigarette maker altria they're in early stage talks according to a person familiar with the matter. cronos has not agreed to any deal and there's no certainty it will do so the company's stock was at first halted upon the initial report before resuming trading. then till ratios also spiking upon a financial times report that the cannabis company is also in talks with altria. tilray declined to talk. altria is in talks with ecigarette company juul. meantime, shares of aphria plummeting 23% in the regular session after quintessential management and hindenburg research called the company a black hole it opened a short position on the stock alleging a network of

insiders at the company diverts money away from shareholders into investments aphria calls those allegations false and defamatory you may remember that aphria was reported to have been in talks with altria earlier this year. back to you. >> thank you very much, aditi roy. for more on what an altri altria cronos deal, let's bring in chris growey. thank you for joining us. >> thank you thanks for having me. >> what's your view of an altria acquisition of these companies i ask you this, the size of the companies is different tilray is closer to 10 billion when it comes into making a foray into cannabis, these are very different size bets. >> no doubt, and while the company can afford it with that balance sheet they have with plenty of capacity to buy the business, i think that altria

given the fact that this is a new category for them and one where they bring a certain amount of expertise obviously in the u.s., not so much in canada, i believe you're looking at a smaller investment or looking at the smaller company, cronos, that they can learn and utilize in the future if this gets legalized in the u.s. >> in terms of how you view a potential deal like this, do you think altria has got the regulatory aspect of this cover in terms of getting approval for various things in various states so it could sort of lend its expertise and help facilitate the legalization of cannabis in the u.s. and therefore it's a better investment or could this work even if cannabis in the u.s. is not federally legal? >> yeah, i'm not an expert on cronos but i know enough to say there he is a global opportunity with that company. the problem here, of course, altria being a u.s. only company does not have that global scale or expertise to, you know,

assist cronos in any kind of global development there i do think it would be more of an opportunity around the potential future development in the u.s. market. if it would ever be legalized, whatever is the method of legalization, i believe that would be ultimately altria's reason for taking a stake in the company and learning about any potential future legalization. >> does this tell us that altria could be in talks to buy a large stake in ecigarette maker juul and that they're looking at a way to hedge what may be a declining, sharply declining core business in tobacco in the united states? >> yes so there's -- that's a good question and i would just say there's been -- you know, obviously fda has regulated the tobacco industry since 2009. while they've done some self-regulation before that, it's a regulatory framework.

that's one of the things altria could bring to the party here if they were to invest in cronos or any other company in canada. their ability to handle the regulatory side of this and help steer the regulatory process would be very important for altria i do think that the regulatory side of it is the piece that would make it very difficult for us to see any real near-term opportunity here this is more of a longer term. i think the same goes with the potential investment in jewel. this is a category that's fast developing. >> right. >> i would note for you that altria has an incredible amount of technology and i think some of that would apply to cannabis as well. some of it would apply to juul they have an ability to aide these investments if they were to make them and utilize some of their own technology and expertise that they could bring to both companies. >> chris, thanks for your time

we do appreciate it. chris growe. we have to go to tim seymour for all of the disclosures go to fast.cnbc.com. what do you make of this sort of talk >> i agree the regulatory competence that altrui brings is great they were sniffing around fria earlier in the year. what's interesting in the cannabis space is the public/private arbitrage means you almost wonder why you have to go after one of the big publicly traded guys when they're trading at twice the size of the public market. i think they're not going to do anything until it's formally legal. i think the farm bill and hemp being fully national is something that gives a lot of people a chance to jump in here. someone like altria with a national footprint. coming up, auto stocks revving their engines on the trade truce. they bet there is one going

higher we'll tell you the name and the trade. we're live at the nasdaq more "fast money" straight ahead.

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♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ welcome back american and european auto stocks flying high the options market is feeling pretty bullish on one auto stock. let's bring in mike khouw to break it down. >> we did see double the average call volume in gm, general

motors in january one of the larger trades we saw was somebody rolling a previously bullish bet from the december 37 calls to the january 30 9 calls. they spent 1.40 for that they're hoping up above $40.40 by january expiration. that would be 5.5% higher than where the stock closed today this is a stock that's already been up 26%. for people who are thinking about pressing a bullish bet after that bounce on their last earnings, buying calls in january might seem like a good way to play it and that's where we saw most of the activity. >> michael in san francisco. for more "options action", that's friday 5:30 p.m. eastern tile up next, your vote on guy's fast pitch. >> here comes sell lecelene. >> big time. read earnings reports, looked at chart patterns. i've even built my own historic trading model.

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hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track. and closer to home. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do. you know what song gia dam my on the 22 days until christmas, all by myself by celene dion. apparently guy is all by himself. almost no one, no one on twitter thinks his pitch is much of a gift no one means 27%. >> you get such joy -- i mean, you get tremendous joy. >> i'm just stating fact here. final trade time, tim. >> this breakout on emerging markets here, less fed and also some china delays. stay in this trade >> karen

>> markets run up and volatility down, time to start buying puts. >> grasso? >> a stock that's usually down, ge was up today. maybe peak pessimism buy. >> guy >> this is your favorite part of the song, the instruments? >> that'whs y i'm letting song >> xylinx, suckers >> i'm back here tomorrow at 5:00 >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere. i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. people want to make friends, i'm trying to make money my job is to educate and teach you. day two, here come the hard part today's session made a ton of sense after the big china news from the g-20. even if stocks open far too high