them in the eyes of the law net win zbreers how can you be a winner when you know everything you worked so hard for has been taken away from you. >> net winners are subject to claw backs where some of the $76 cents on the dollar is coming from one of the issues we cover in the american greed madoff, ten years later. you can subscribe wherever you get pad costs. >> that does it for "closing bell." "fast money" begins now. thank you, scott and courtney and "fast money" begins right now live from the nasdaq market sited i'm brian sullivan in for melissa lee. traders are pete najarian. tim seymour. dan nathan, guy adami. tonight on fast. city's top equity strategist saying don't fear the bears. he explains why he is betting on the bulls. plus with two weeks down to christmas are we looking at pain for retailers or holley jolly

christmas? former home depot ceo will be here for much to do with the markets and your money but first we begin with president trump's now two-front war. of course the ongoing trade fight with china and now an escalating war of words with the democrats. our own eamon javers breaking down a wild day at the white house. eem sfwloon that's right beginning in morning with the president tweeting out that negotiations were going well with the chinese and that people should be on the lookout for significant announcements. we haven't seen those announcements through the course of the day no indication that anything is coming necessarily any time soon from this negotiation. but the other negotiation that was going on here at the white house was the one between democrats and republicans in terms of keeping the government open beyond december 21st. remember there is a funding battle right now the president wants $5 billion in funding for his waum. theth democrats don't want to give it to him, don't think the wall is necessary don't want to

give the president a political win. leading to the meeting in the oval office between incoming speaker of the house nancy pelosi, chuck schumer, the democrat beingic leader in the senate, the president and vice president. and things didn't go well. here a snippet from that feisty exchange in the oval today >> yes, if we don't get what we want, one way or the other whether it's through you, through a military, through anything you want to call, i will shut down the government. >> fair enough which committees west disagree. >> i am proud to shut down the government for border security, chuck because the people of in country don't want criminals and people that have lots of problems and drugs pouring into our country. so i will take the mantle. i will be the one to shut down i'm in the blaming the last time you shut it down it didn't work i will take the mantle of shut going down i'm shutting it down for border security. >> we believe you shouldn't shut it down. >> that gives you a sense of the tenor of the meeting after that on camera session the

leaders had an off camera session at the white house and nancy pelosi is telling reporters up on capitol hill that she and the president had what she calls a constructive phone call late this afternoon in fact just a few minutes ago according to reporters now on the hill there were negotiations behind the scenes here. what we saw in public, brian was very feisty and gave us no indication that the two sides were coming to any agreement any time soon. >> a little feisty there on camera both sides want to put on the best face. hopefully talking more civil behind the camera. thank you eamon. >> you bet. >> a special shout out to fends. big view erps in kansas city kansas city tonight we got a whole company. digital evolution wchg don't screw it up, adami. >> stop singing. now chargers 31 backup chiefs 24 thursday night stocks attempting to rally cht s&p bounced off the 2018 lows but as the chaos picked up rally lost steam

both dow and s&p 500 closing in the red. the questions guys and guy. >> yes. >> is there too much turmoil in d.c. does the d.c. turmoil, mueller's investigation heating up, now this kind of back and forth? does that impact the market. >> mueller investigation absolutely to me the market is not pricing it in. if there is anything behind the mueller investigation. cht vix should be closer to 30 i don't think the market cares process the mueller investigation. but the situation in china, the way the market traded is concerning six months ago you have a positive headline like that off of selloff that we have seen the market would have opened higher and built steam the rest of the day. opened higher today and gave it back i think there is reasons to continue to think lower. the fact that we aren't talking about europe except for tim is an issue i think the china thing drags on which is an issue. and frngly maybe the economies

globally are slowing down. >> listen plenty of political shows can do the political side. bup i want to talk about the political side as it pertains to markets. tim seymour. >> you got a taste a retroactive of what bipartisan washington can look like and it's never great for the markets. but it's never been awful for the markets. think about it, granted to remind why i think trump has been so good for the market is you essentially had a clean sweep of all branchs of government and really they were able to push through whatever they wanted. we already know the win back on the senate is something that changed the mood a little bit. i agree with guy on the folly or theater. bottom line is i think the biggest issue is the global economy, the trade war, the reality is i think every time we hear a statement out of one side or the other it means almost nothing when we consider how significant this impasse will be >> i think the most interesting thing today was this actually started before we heard about what was going on in the white house today. because if you look we are up 350 points

but apple all of a sudden went from positive into the red followed by nvidia and facebook and other names that were coming down. >> apple has nothing to do with the white house spat we heard. >> no. but you know you bring up trade war, that's obviously front and center i think the conversations out of the white house were of huge influence on the direction of the markets because the second we started to get some of the clips and the anger between the two or the three but between mr. trump our president and the other two, that really is when we suddenly watched the market drop a couple hundred. next thing we know we are down 150. volatility it is still too cheap in my opinion. trading at 22, 23, i think you were right we should be higher given the back drop of everything we've got. >> it's interesting the networks are running proposal os for the 10-year anniversary of madoff. think back to february 2008. the ponzi scheme wasn't driving the markets. it was bank stocks, how concerned investors were about a

contagion coming out of this stuff daily headlines. i think back to today it's interesting. the opening felt like we were putting the near term bottom in and then banks red and the can't rally. you look at prior leadership goes red all of a sudden you say this feels bad except for the fact the s&p 500 is only down 1.4% on the year which is weird because it feels worse. >> here is the thing what i'm asking, are we one big mueller headline away. >> yes, listen. >> -- >> and if so you believe that. >> yeah. >> from a serious market event and how do we protect? i know it's not "options action." >> just don't know how it's going to trade what's clear is we have increasingly compromised president. that's just very clear we know he is a pujleist he likes to fight back are we seeing this stuff on a daily basis when they should come to a continuing resolution on the budget? but it turns into a mess.

>> but what's the bigger issue for the market washington or the world? it's the world and there is no question -- you've been talking about the banks a long time and been largely right in terms of price action 2008 the banks in a significant credit overhang. they don't have that today they have the earnings overhang. there is a big difference to look at systemic risk dpiet the fact any underperformed. they aren't in a bear market as a group. the xlf down 9%. >> selloff, dude, 13% of the. >> did you dude. >> i did. >> what -- >> tim most of the large components are down 20%. sit it i group down 30% from the high >> hold on >> i just -- i want you to intellectually honest to the view zbleers oh, stop. please i'm not being dishonest at all you're trying to imply the banks are looking at a 2008 moment, no. >> banks were reacting to the idea the fed may not raise rates

as much as possible. and that's why we see concerns over the net interest margin. >> you seem a little matter of fact the chinese banks have been acting poorlily. doichl bank makes new lows >> that that's a different story. >> deutsche bank is its own thing. >> you know what sully. >> where were you in '07 and '08. everything was idiosyncratic until it all came together in a market meldown everything was written off as individual story we are seeing ge pcht deutsche bank, a lot of this stuff. you can put it in nice little package however you want brother. >> guy adami. >> dude, dude. >> we raise our hand how are you. >> i disagree i think pete agrees i think deutsche bank is deutsche bank specific there are bigger fish to fry and citi bank's tangible book is $67.5. why is it 57 and a half now? to me the banks with huge

european exposure which citi bank is telling you maybe deutsche bank is not deutsche bank specific and maybe there is systemic risk. >> deutsche bank is systemic it's european i think europe has problems we're a headline away interest. >> the stock is down 50% i don't want to make this a deutsche bank discussion but deutsche bank guy is down already 507%. >> we're waiting for a headline. >> what headline the biggest bank in. >> are people people- are they merge with commerce bank cnbc.com, god op-eds it's not going down until there is a headline, until there is an event. same with ge. >> okay. but. >> ge continuing by the way. >> we need to get back to where we started this question ultimately is gets back to is the market on an even more difficult path because of what washington is doing? my answer to that is no. obviously that's -- to it that's notwithstanding a mueller

investigation that frankly i'm not going to try to end cap. >> i think that there is much more to this whole story because obviously if more comes out, tim, that is absolutely going a direct effect on the market. >> i can't handicap that. >> do not want -- it's -- ienl going to say something i may regret i'm not making the watergate comparisons. but there are people making the comparison and if you are on that side of the political spectrum. >> toughdy for the market. >> the market fell 50% over two years. a slow grind down. of course inflation and a lot of other issues in the 70s. but the problem is if we get -- the market rallied on optimism that trump's agenda would be pushed through on deregulation infrastructure nobody saying the mueller investigation is ending in anything but my question is, with the volatility where it is, are we one headline away from bigger problem sns. >> yes. >> that's it. >> and the answer to that

question i think we all grow, tim said mueller notwithstanding. -- it's not political. i'm not on any side of the aisle. but in terms of the market there is no way the vix should be at 2 it based on that that alone it should be higher the potential for more in the next month and a half, thes vix should have appear 3 handle. >> we have trade war going on obviously or skirmish however you frame it but either way dealing with that and then through in what's going on in washington and the mueller investigation. we are too cheap in volatility we are too low. >> quickly we get into how do we protect yourself if you believe that are worried about any kind of headline what can you do to protect your portfolio right now. >> well, first of all you should have listened when we talked about volatility being low. >> in the s&p. >> yes in the s&p 500 if that's where the expose you are or the

nasdaq depends on the exposure levels but you could do that through the s&p put. >>s zpoit the turmoil our next guest says do not fear the bears the bulls come out on top. citi u.s. equities strategist. to bias. who says there is a chance the markets are 90% higher than today why so optimistic. >> let's step back for a minute. back in september everybody was on the treat bullish the single metric signalled going down 70% but everybody talking about the 2,900, 2,200 2,300. that was the voice going there when you worried about trade not with worry because everybody was buying tech in the cross hairs of the ip kind of forced transfer debate around trade it was fascinating to me today we are in an environment where the model is in almost

panic territory not there yet. but still 90% probability of the markets higher at the same time similar vaflgs modding with generating similar things oil provides tripled on a war in the middle east with massive inflation, crushed the economy in the 73 and 74 it's not the same environment. it could happen but you're betting on a scenario that may or may not happen. and we got to move away from that you want to go back to '08 and '08, last point. the '07 and '08 banks and all that credit come apart at the seams. we're no where close to that. >> are they cracking at all? i'm the oil and gas guy. $240 billion in oil and gas debt maturing globally the next five years. we are seeing any cracks in high-yield at all? >> so in high-yield you see it moved 100 basis points on credit spread widening, heavily influenced by the credits in

energy remember energy is about 17,% of the high-yoeld market. 5 or 6% of the s&p fiefd let's keep them separate go to ig, investment grade moved 50 basis points. and keep in mind the 10-year yield moved 40 basis points. the actual cost up 10 basis points that's not cracking credit it just zbloont i got a quick question for you if i could. back in january, 2015 you put out a piece talking about the volatility index, you said it isn't a buy actually between the levels of 20 and 25. do you stick with that right now because i know you did back in 50u do you believe that now as well >> i do believe it but it's got to stay there for more than a few days that's the key issue where we have volatility stuffs moved moves around if if do you correlation i i know poem don't like math. about you if you do correlation on the vix the correlation is particularly poor.

i want coincident indicator it's not a future predictor of great value. it's not consistent over times if do you things more intriguing like premiums paid for puts versus calls look at both debt and short interest and cash positions people have. build more rebust models you get the 90% probability ohs or back in september 70% chance of losing money you have to get something a little bit more -- i don't know if the right word is rebust in terms of structure single correlations single factor correlations can break down at any point in time. >> tobia of citi thank you for being out there. we appreciate your time here guy adami bullish and. >> and he is a stud. one if there was sort of a pantheon he is at the zine igt of the pantheon. in my opinion something changed in october

it we went from buy every jovial to every rally sold. that's a fundamental change in the market that's a fundamental change. >> on deck, the average retail stock down about 15% just this quarter. ouch but the former ceo of home dpo says the group is making a comeback the ceo of google testifying fierce of regulation over big cook what he said and what it could mean and guy adami stepping up with the name he says will soar in this volatile market this isn't stallo the ene. mf we are turner and hooch. (toni vo) 'twas the night before christmas,

and all thro' the house. not a creature was stirring, but everywhere else... there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,000 credit on select models now during the season of audi sales event. i still can't believe how incredible the screen is on the new iphone xs. and our unlimited plan really takes things to the next level with your choice of the best in tv, movies, or music. it's the perfect holiday upgrade. i know what i'm asking santa for this year. you still write letters to santa? no. please. i send him emails.

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mom. ♪ money. gol tobagole ceo sundar pichai on the congressional hot seat. lawmakering grilling on everything from regulation to privacy, user data and more. ylan muy joining us from washington with a hot day from the hill uale >> you can call it pichai's political baptism, his first time before congress and lawmakers made the most of it they wanted to know how google handles data privacy, exactly the type of data google collects and what it does with the information. >> we recognize that important role of governments including this committee in setting rules for the development and use of technology to that end we support federal

privacy legislation and propose a legislate a framework for privacy. >> there are several bills in the works that would let consumerer opt in to share data. and google says it gives users plenty of control over data. it is a said 160 million people access the the privacy settings last month there are tough questions on china the plans to operate there. pichai said that's on hold right now. >> right now we have no plans to launch in china. we don't have a search product there. our core mission is to provide users access to information and getting access to information is an important human right so we are always compelled cross the world to try hard to provide that information and but right now there are no plans to launch search in china. >> and pichai tried to frame google as an american company, upholding american values, even brought in his personal story an

indian immigrant turned ceo, saying he is grateful for freedom. clearly learning washington lingo. >> yes, he was me thinks he may have had media training. >> a little bit of coaching. >> a random guess. ylan thank you guys, here is the trillion dollar question is big tech about to be regulated big league in if so what does it mean. >> bigly, i would say probably something in that category but regardless i look for names in a market like we are in right now, i look for names absolutely slammed. you look for low pe names sold off to the point of ridiculous apple is one of those. it's literally off in the 230 highs down there towards 164 just yesterday there was monstrous call byes coming in. that creates opportunity when you i look at apple it's oversold i look the valuation abcash everything people talk about it's sold off too far? >> in this environment it's easy

to see by o why the big dogs are going after these bigly. the google could earn almost $640 a share next year you're tokyo a ratio inside 20 times earnings for a company seeing more regulation, gdpr is come to the soil and companies it's less about regulations, how they internally handle privacy for their use zbleers what if. >> the market will decide. >> what if they are broken up? do you think there is a risk of that. >> as it relates to fw google that's what we are talking about on the hill today. we haven't spent a lot of time as we did with facebook. facebook has seen a dramatic downshift in earnings because of their spend and inability to monetize the way they did prior before they made changes this is happening with google next year. we've been talking about it and you'll be writing an op-ed. >> i have. >> not gogel you've been defending goog zblool i've been talking about regulation how the companies handle privacy. >> my point is -- google could

be earnings upward of $60 a share that's just. >> $56 bucks is the consensus i think it's closer. >> for 2019, you know, somewhere around 58 to me is consensus but that's only roughly 6% earnings growth. >> can you by it at 56 not 60. >> you can buy it if you don't think there is a mountain of regulatory tough or another headline that they have to deal with and drag management become to the hill and face a facebook situation. >> more on google trip to the hill and what it means for technology head over to cnbc.com in the meantime here is what else is coming up on fast ♪ you're a mean one, mr. grinch >> announcer: he really is but the former ceo of jcpenney says even the grinch can't stop retailers from making a comeback this holiday season. he explains why. plus guy adamy stepping up to the plate to tell us the one

stock he says will soar in this volatile market. he gives us his fast pitch much more "fast money" still ahead.

♪ here comes santa clause. >> well back to "fast money. we're two weeks from christmas day. well 13 days, 6 hours 33 minutes and 4 seconds. but who is counting? the home stretch for consumers in the throngs of holiday shopping some outside the window but retail stocks strug. the group back to the lowest levels of the year bob pisani mr. christmas down at the nyc to break it down. >> not so ho ho ho for the retailers. plenty sitting at or near 52-week lows list is long including tiffanys kor as tiffany, best buy la-z-boy boutique retailers now the main retail etf, the symbol is xrt basket of all retailers in the s&p 500 just

off the 52-woke low. what's the problem here? there is the usual macroconcerns this may be as good as it gets you heard that before with comp store sales this time which improved this year, by the way and even broader concerns we could be in the later stages of upswing in consumer spending, in other words peak consumer spending there is a biggerway i to think of this. the retailers are transitioning from in store sales to online sales. online sales are growing faster. and companies need to the invest in both stores and in online and that is a very expensive proposition. that's a problem you add in high labor costs. you add in transportation costs increasing and it means not a lot of earnings growth, and margins getting hurt that's probably the prime story. for many the key is differ ensheaiation you need to own a space like a lulu lemon they can grow. but third party retailers like department stores selling other

people's stuff that's puf tough. look at a former darling like alta beauty. they sell other stuff so they have to discount to attract customers. they increased revenues it's been great but the operating margins don't go up much too much competition. is there any good news the wrlt is colder that's good news and there are companies like macies and home depot. i could go on. well managed and good balance sheets but the cost of serving of the customer is going up and harder to charge for it that's the bottom line back to you brian. >> that's the bottom line. bob great to see you as well as always thank you. well despite the uncertainty surrounding the strength of the retailers and the consumer is a come barker in the works bob nardle y you know him the former ceo of home depot, the former ceo of chrysler your business card has six sides. thanks for joining us we talked about this. >> i think bob made a lot of

good points. if you look at it there is a disconnect between the market price and performance. >> yes. >> a lot of the retailers are up two, 3% comps that's good. ecommerce in the high teens. the omni channel part is kicking in i think that you guys talked about it with a great deal of energy. >> as we do. >> about the external events crushing the market. look at home depot, ned a great third quarter and get crushed. right. >> why >> because i think of the external events. if you think about housing maybe getting soft, see home depot has two cycles, investment cycle and maintenance cycle. housing up, people investing, bathrooms, kitchens, flipping. housing is down, they are in maintenance cycle. i'm not saying they're teflon but they have a great mod zblool one a better cycle for home depot. >> a better. >> a is the investment better than maintenance cycle. >> investment cycle is a big are

average ticket that's a good sign to it. >> we talked about the broader market last time you were here you voiced some concerns a lot of those coming to fruition but we have sold off since then is the market getting towards levels where it's interesting or the worst is yet to come >> there are so many external events mayhew vote of no confidence, france on fire you got the tariff issue the issue in saudi arabia. banks and interest rates not going up banks getting crushed. i think we are in for a frothy period to be honest. >> is gmo a villain. you sat in the same seat at some level. a company that needs to run as lean and mean as possible. your thoughts. >> no, i give mary barra credit for standing tall. not the traditional the executive holding on just in case she made a bold move they are not buying sedans she

has to get out to weather the slight downturn next year. if we go from 40% down to a reasonable lift we get a lift out of china you think about crieser letter, mike manly couldn't have timed it better for opening a jeep plant. but 80% of the operating profits at sow jeep come from jeep and the ram 150 oh i think the auto industry in a froth right now. ford will have the same announcementment wait and see we will see it about sedaning gasoline prices. the question is when does it turn right now people like trucks, suvs fuel prices are down that's helping the consumer. that's discretionary money that's going in their pocket that's why i think you have a good holiday. >> bob back to retail for a he could process. retail down 34% in the past few

months put up good numbers and comps. >> yes. >> the question i have for you is we know they compete with amazon azmodan got hundreds of billions of dollars in incentives from local governments. how do the best buys of the world compete on another leg now? because it's not just amazon being dominant they have the omni channel but now they have incentives they are subsidized by the governments. >>ment that's a challenge because you talk about winners and losers best buy was in the ditch. and they remodel and reprofiled. they have on the electronics side those are all you know put there on consignment, able to change, not getting suck with a lot of inventory best buy has done a great job the last 18, 24 months i think the incentives and subsidies that amazon has gotten does create a competitive disadvantage for a lot of the other retailers. >> i don't want to pick on target because brian cornell the

ceo came on squawk box a o about a month ago and said it's the greatest consumer environment of his 30-wafer-year retail career. then the market peaked i'm not picking on target again. but what's happened, bob is the question -- best buy down 30% in two and a half months. tiffany down 30% in 90 days. the business is not off 30%. >> stand out in front of tiffanys >> there is a line. >> there is a line so again there is a disconnect i believe between what's happening on the stock provides and what's really happening on the noor of the retail stores. >> the disconnect you think is a boying opportunity. >> could be a buying opportunity. i'm still a little -- i'm still a little cautious. >> let's -- bob thank you. let's trade this, pete first off you are a hometown homer you like best buy and tarring. >> i just bought them last week. home depot is a $2915 stock. they have just produced the.

the numbers great. look at ecommerce that's great yet it sold off. i think those are opportunities, brian. now in a market like this where computer generated selling is there. dough deent care about of fundamentals that's hitting stocks during knows moments you have to look at home depot, target, target was trading in the 80s and it's old off not for any other reason than computer zbleelg the ceo is superbullish, the numbers are god. you believe it's the algos. >> we and the kbhee is good zbloom emirates home depot does not have competition from everybody. they are running better margin buying back stock. that's defense nef this stock. >> you've nef been to menards in the upper midwest. >> turner and hooch both shop there. >> bob nadaly in the commercial break said i don't know what br brian is talking about not only was stallone not in turner and

hooch he wouldn't watch it. >> i meant to say tang o and cash i said turner and hooch. wasn't calling guy adami a mastiff he is more like a lovable lab ray doodle. >> doberman. >> rottweiler actually. >> crude oil catching -- a little bit of a bid but the opec premium wiped out. oil down 30% from october high we got mike kelly putting out a big report where the opportunity is he is on some of in live to talk about energy and guy is stepping up to the plate. all four paws ready to go, getting ready to pitch the stock ndut ts could be the best bet. fi ohe name and why they are wearing leis when "fast money" returns

well the music is appropriate. because it certainly has been a wild couple of months for the market the s&p closing in on correction, down 10% off the high with nearly half the index in what they call bear mechanic, maybe down 20% guy adami says he has a way to take advantage of the volatility all right. let's be your huckle berry go to the plasma. >> i do brian. >> give us the fast pitch. >> you do that worldwide exchange great job by the way pete, dan, tim know about power

pitch. >> fast pitch. >> thank you pete. we know what we power pitch, the chicago mercantile exchange, comes out cme. you say guy, why a huge valuation 26 times forward earnings, stocks o rocket ship higher you are correct. however, as pete said in the top of the show and i agree, volatility is not only here to stay it's going higher you can take advantage of volatility synthetically owning stock. trading volumes are rising if you look back at october numbers, i believe, trading volume was up 37% year over year that's significant the last one -- i know pete najarian loves this. he focuses on it, management is great, terry duffy running the place a genius, has been on the show a number of times he steered them through rocky times. i believe right now they're in their soweto spot. although the stock is rich, it has rallied i think the chicago

mercantile exchange has more room to the upside. >> guy, pete here and i agree with all three points. very good as a matter of fact terry duffy as good as it gets here is the question does the valuation level of name i know you mention to do but does it bother you but do you say i look past because of the three factors. >> that's one thing. 26 times is expensive. you look at other exchanges it's the most expensive exchange out there. and in my opinion -- i know we are tenants of the nasdaq which is also a great company abgreat stock. it might be in this environment the most valuable exchange out there. so i think in the times that we find ourselves in, 26 times can you justify it you don't have to be comfortable with it but can you justify it. >> all right no more questions. it's time to vote. are you buying guy's pitch and i mean you, us and also the audience on the cme group? pete najarian. >> chicago, guy i got to go with guy. this is a full buy

i think the 26 pe is not that high given the fact that volume and volatility are as high as they are. giddyup. >> giddyup. >> love you guy, don't love this pick map major run sell bottom line there we go look at that. sell even the way i held it tells you all you need to know. >> i'm with tim here a sell. >> of course. >> things were getting volatile in 2007. the stock had a breakout like it broke out in this volatility the stock down 78% from the early 2008 highs to the 2009 loies thp process this stock is not immunicipal. >> why is he hiding. >> i'm upset i got feelings too. >> comen oh out. we are all friends. >> one buy, two sells on the desk guy, listen we don't care about these guys we care about the audience. >> the audience. >> are you at home buying guy's pitch to buy the chicago mercantile exchange? vote in the twitter poll on cnbc "fast money. we'll have lots of times to left to vote.

that's just tim's family plus opec turning into nopecp back to preproduction cut levels the bottom may be near nas b rhtowig n "fast money" still ahead who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.

all right. let talk oil now the opec meeting last week cutting production 1.2 million barrels per day. oil rallied about had% but it's give tennessee back but the next guestis says the crude crush is ending. but there are a few names to play in the area for a bounce. we are joined by mike from sea port global securities oil is all over the place. you've been digging into the stocks you like. are there names you cover? you put out a big report last night or this morning. >> yes. >> that can do well even if oil goes to 40 are there names to do it. >> even at 40 is pressed and things change at 42, cost to drill, fracture oil comes down that benefits. with you today we put out a report said hurt what can guys down in the $50 environment? and there is only of the names we cover there are 7 that really generate free cash flow and give decent growth. i think if you -- >> at $50 there are 7 mid-size

permean basin primarily. >> primarily, yes. you do yourself a world of good if you buy coverage o diamondback and gas exposure with cab on the oil and gas. you buy. >> coverage o diamondback, the original fang and cab on the oil, p what are are the break even costs. >> they'll tell you it's down in the 20s they could make money. nobody wants it there. a good corporate return. but you know, you're actually at 40 they'll make it work. >> all right mike -- what's the biggest misperception with oil prices lower? is it oil services or big integrated in other words people may be going too far to be integrated on bullish because the free cash flow yields are nice where. >> we prefer the emp stock walks, the guy was the acreage and the properties i've been going around seeing accounts the last day and a half it's almost at hopefully the

point of capitulation. the sentiment is so bad around the space. it's disastrous. we have names trading now close to below downvalues if you fired everybody at the company and let the wells pay out. that's never been something ha that happened. >> mouch of a buyout premium is in sochl these in what we have seen is chevron, exon, they want the acreage? we have seen some deals. >> yes. >> is there going to be some kind of a floor on some of these names just from if they keep falling there is a deal premium baked in >> this is basically -- i don't know if you were in my last meeting, broien. but a lot of chatter on a big name, endeavor in the permean out there it's a $15 billion transaction coming down the pipe it would be around 40,000 an acre priced in you got names traded half that hon a per acre basis thp that should slap you around if exon is here and is going to pay that we should value some of the companies, diamondback, a

parsley, a pioneer, at something higher. >> there have been a few analysts taking down the rankings in cabot oil and gas. the price target 27, 28. is that what you look for? i think the suffolk is at 23 round. >> news flash gas is at like 4.50 that's a gas company they are generating 600 million in free cash flee in q 1 insane for pennsylvania the company with a enterprise value where it is we love it. >> some of these have both things when you drill for oil you get gas out as well. is the street undervaluing any of the gas assets of the companies in. >> i don't know if i'd go that far. and cabot is the best of freed the product testify is 2 x everybody else in the permean -- gas is the bi prd. two weeks ago gas selling at zero guys would pay you to take it away. >> if you can get it out you're

good mike kelly sea port global securities thanks very much. >> thanks. >> this is a space to mike's point. investors have been burned they've given up. >> listen to helm say this is the lowest in 12 thundershowers. what we went through in 2014, 150 e15 is extraordinary the free cash flow yields are impressive mlps have interesting. the yields are interesting a lot of these are funded and the production growth is there i like mlps. >> we play a lot of games. >> would you rather. >> no the duck where you shoot it if you want it. remember that game and they. >> field hunting. >> melissa looked at me. i said you let that fly away >> ory. >> i think exxon i understand all the stories but i think there is a good chance this retests a low back in march. 7 239 5, $73 np in terms of big cap integrated i would void them. >> the oldest producer in the permean is chevron

they've been a long time zbloongs the free cash flow yields are tough to deny. >> oil and gas a debt story as much as anything. >> if you can't get enough to of the oil trade jim does is breakdown on the crude charts at the top of the hour. can't wait to watch that one trader made a more than $3 million bet this dow stock could plunge more than 20% over the next yee $3 million bet a dow stock drops 20%. we tell you the name more "fast money" right after this

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yippiekiyay. ♪ mom. ♪ all right. welcome back to "fast money. consumer stocks feeling the heat as worries over the economic slowdown take investors for a wild ride. the ceo of coca-cola addressing global fears with an interview with sarah eisen earlier today. >> 2019, i think is uncertain. you've got lots of forecasts out there, whether the u.s. or globally saying there is growth next year, maybe not as much as 2018 a little bit slower. but still growth still growth in u.s., still growth in the global economy we think the consumers will have the money. and so we are bullish on our plan. >> all right

but his bullish outlook didn't doctors impress one who made a $3 million bet against coca-cola stock today. dan is at the plasma with the action. >> all right sully hold with the tease. who knows what this is against it could be protection but volume ran hot in coca-cola. about five times average daily vom. the one trade sully is talking about, the buy of 35,000 of the january 2020 over a year from now 40 strike puts breaking even at $39. down 21% in january of 2020. and why do i say this? the options market is only saying there's about a 15% probability that those options knows puts will be in the money on january expiration 2020 so a good way to get risk manager off your back is maybe buy a way out of the money puts or find risk the next year or so let's go to the charts the stock is obvious lip outperformed the broad markets

up 5% versus the s&p down about 1.5% a lot of sideways action here. just broke out it's konlting here looks pretty good. i want to make another point let's look at the five-year chart. this is a nice uptrend the series of higher highs and higher lows. here is one problem. every time it's broken to a new high, okay over the last five years it's had a 10% plunge in the couple months after. to me this one may not one to kmas at 52-week highs. >> don't chase it got it for "options action" check out the full show fridays 5:30 p.m. eastern time eastern time up next, your final trades (indistinguishable muttering) >> announcer: "options action" is sponsored by think or swim by td ameritrade. . really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade,

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do you know what guy has been listening to every morning gearing up tor a day before it opens. tony braxton because the twitter verse is voting against his pitch for cme. only 31% of viewers voted for the pitch. >> i thought he was getting celine he was close to deon tonight ride to victory. >> time for final trade. pete. >> i go with target oversold, a great opportunity. giddyup. >> tim. >> it was not a warwick it was a dion home depot gets done. >> you like what bob had to say. >> i'm in the chasing defensive

names like coke. >> not chasing guy. >> one less bell to answer, deon warwick. go with me >> way to go, brian. on worldwide exchange tomorrow morninatg 5:0 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 but to teach you and put it in context. call me at 1-800-743-cnbc. or tweet me @jimcramer what the heck happened today