"fast money" starts right now. live from the nasdaq market site overlooking the famous times square i'm brian sullivan for melissa lee. your traders tonight pete najarian, tim seymour, brian kelly, guy adami this show brought to you by joseph a. bank tonight on fast trouble in the transports, the dune underperforming the broader market and could spell trouble ahead. we explain plus where is the apple bounce the stock ending the day flat despite the broader rally but gene munster says it's a double. he will be here to explain and defend the call. why is he so bullish we start with the market that can't seem to hold onto a rally. the dow surging more than 450 points at the highs, a trade deal seemingly within reach. but stop us if you heard in one before stocks cutting the gains midday. and then selling off hard into the close. we did end higher. but 300 points less than we were at the top so guy adami. >> yes, sir. >> why -- this market is a like

a high school prom. >> right. >> right >> brian. >> my problem was very different by the way. >> you can't hold on, right. >> right there is no long termism in the market at all can't hold a rally maybe ishld have said something -- move on. >> changing metaphors. >> i'm on camera all the things being said, it's guilt by association now. by the way, i had a pair of joseph a. bank boxer shorts in college for the longest time i thought i had somebody else's. >> just stop why can't the market hold a rally. >> in october something changed. for nine years any selloff you buy and are rewarded something changed in october a number of things changed pofbly the obvious one is the central banks. but i think it's more than that. europe is slowing. i think a lot of companies in the united states are slowing down probably for all the right reasons. i mean we're at the end of a cycle, a long cycle. i think now instead of buy the

dips it's become sell the rallies. i will say this as well. today the market should have held gains off all the china news i understand something came out about president trump but the fact it gave up 300 dow points lead me to believe the pain trade continues downside. >> we talked about yesterday extensively, pete, the political headline it's not a political show or network but the political headlines do seem to have the impact on equities. >> and we are trading off the key words. by the way -- and if this gets misthe interpreted all the time we talk about algos pushing down they push up just as much. >> we hate them never mention them on the way up. >> i'm mentioning them the big move this morning was off recycled news of what what's going on in the china world and everything then the reality slaps everybody in the face about, okay, we still have things going on in the white house, still have powell, all these various issues we have to deal with each day.

when you look at where the volatility remains in the 21 spot -- yesterday we were talking about volatility tobias had a paper out about three or four years ago about 20 to 25 is almost uninvestable in terms of volatility in the market and that's because it's so difficult right now, brian because we are getting incredible movements in the marketplace but look at where we end up each day. the ups, downs. >> tobias said there was a 90 peppers chance the s&p fiefd is higher a year from now than today. >> one of the things tying both views together is 21 the probably the long average on the vix when you remove central banks. central banks are not your friend, not necessarily a predator we think the fed is less spreader to than two months ago. but back to china i agree with pete on the recycled news. the fact of the matter is maybe there are concessions on auto tariffs and the senz china works on the tariffs side. the biggest issue was china with

intellectual properties, state subsidies. when china mess was that it's messing with their industrial policy which they will not. >> b.k. bring it back -- hold on bring it back to the subject at hand why can't the market hold the rally. >> uncertainty uncertainty of everything. uncertainty around politics. the news today let not forget the uncertainty around britain theresa may barely survived the no confidence. >> what does that have to do with the got. >> why. >> i don't know need to know why. >> she barely won. >> the marlanaen of error. >> smefs going to fail two days ago. >> i don't understand why the british prime minister matters for the dow jones. >> it may or may not with you it does move the dow. that's my point. all the things add up. you pick what you want, the choice, whether the english prime minister, whether it's interest rates, whether china all of those things have shifted the narrative and to guy's point when things rally you sell it

because you don't know what's going to happen. i don't know what's happening with trade i don't know what happens with the political situation in the u.s. i don't nope what's happening with the economy let me take it off the table maybe it's slowing. >> the move from 729 to the as the 50 in crude oil. although we could say it's great for the consumer there is something troubling i don't know the reasons why, supply thing, doesn't matter brey be knows because that's your balancely bailiwick. >> there is things happening markets go up and down we are in the an environment where bad news is bad news. >> i don't want to bring it back to my bailey wick. if we didn't have the opec cut oil would be in the low 40s right now. as mike kelly told us on set last night, break even for a lot of the defendant heavy permean companies, not the old big line but newer ones is probably 45 to 5 a dollars a barrel.

200 billion outstanding in debt. it's not an oil story. it's a debt story. that's why the market cares. >> it's not just debt in energy space, a global debt story right now corporate debt to gdp is almost 50% consumer debt to gdp is north of 50%. nobody cares and make it don't make a big deal but when people care is when markets have the sell the rally. >> i think what's largely equity cmo we are talking about credit. because the bond market is smarter. the u.s. leverages loan back pat 2016 levels. high yield at 2.5 years lows yes there is debt in the high yield markets. the buddies in the energy market they say little liquidity in the markets right now. back to the companies. and this is going to take us back to a better place for the market we need data pout of companies more optistic in terms of macroenvironment look at staples, a best of your knowledge of companies squeezed on both sides. i see a lot of data points saying margins are awful in the

retail world especially in staples, distribution. i'm hearing argument we're at 20 year lows in terms of margins. >> a quick one though, if we are talking about a trudying show it's difficult and you have to be nimble. if you go one year out you called me on tobia if i go a year out i see opportunities yesterday talking about home depot. still buy that can you still buy microsoft. apple i added to there are names that have been punished it doesn't mean it's the bottom none of. >> you li i love what you are doing. let's do this. let's do this. >> let's go a restaurant. >> captain d. >> plets flip it why can't the market hold a rally how about this china trade fight within brexit, slowing economy. inverted yield curve all this isn't that when every bock says you're supposed to start buying. >> yes. >> when the pount of maximum petitionsism make the. >> we're not there. >> we're not there. >> uncertainty not maximum

petitionsism. >> tim. >> we get different readings from the market one is the institutional investors, the i bull/bears survey. we are around 45 in the bull/bear survey higher than two weeks ago but no where near telling you people are exhausted here i think the retail community is in buy the dip mentality i talk to iras all day and they believed they should nibl when in fact maybe this is an environment where actually will you materially take a step down in terms of credit and other things we talk about i don't think the market is that concerned yet. >> if we were at maximum petitionsism news like we saw this morning would not rally the market the markets optimistic that something might change when we are at maximum petitionsism well get a new story that's real news and the market goes down nonit's maxi m maximums pesism. >> it might be the algos are boying and selling.

>> what fw the companies. >> hold on we still have -- >> it's not fundamental is what i'm saying. >> one big bull case i'm not trying to make a bullish argument but if i had to how about this there are hundreds of billions of dollars in tax -- corporate tax money that is being reoffshored or on shored that is not been put to work what about the buyback side of the -- >> i think that's a great point exceptfare the data happen repatriation data is falling buybacks are dunn county normzly in the last three months that was a major underpinning of the market i think with the exception of companies like apple who we talk about later in the show can continue to do that. i don't think every company in position he put it cap x and buy backs that will not go forever. >> you are optimistic. i'll give you one answer to make the bullish case for the equity market right now. >> mueller investigation goes no where. china skirmish resolved

sometimes in early january and then market stakes off. >> that's three you went to georgetown clearly not a math oriented institution. >> you asked me optimistic thing. >> i said one thing. >> what else you want you want to win the lottery too. >> it's tang o in and cash night that's what we are. >> turner and hooch. >> you're not letting me live that down. >> no. >> thank god bark is worse than the bite. >> tim said we are talking about apple. and later is right now one stock that can't rally is apple. since going public on this day 38 years ago happy 38th public market the stock soared more than 33,000%. now down 27% from the all-time high in october. however, the next guest says despite the apple getting cored a bit apple is set to double from here.

gene munster is the founder of lup ventures gene, i love i be like the optimism but a double from here that is optimistic, my friend. >> yeah, it's another trillion dollar to market cap but i want to put the market cap our goal is to look through the noise we have had the past six weeks and think about what the true arc of in slope is that apple is on. and backing out all of the headwinds that apple had the last month and a half is that the company is on a path to be a services company we talked about that but that narrative has far from been captured by investors and we expect over the next year as they anniversary this new reporting methodology that investors will progressively understand that this business is not one that you need to sweat every quarter and that in fact that there is some predict ability and depend ability into the earnings growth. and companies that have predict ability and earnings visibility

get high multiples we think about clorox at 19 times. apple at 13 times you can build a case over the next three years that as investors understand the visibility in this business -- this is a big debate is there visibility or not did you -- but i think there is that you can assume a 23 multiple oncall it $15 number and you can get to $3509 stock and i understand that that may be hard for some people to believe. but ultimately i think that that's the trajectory this company is on. >> hey, gene, it's tim i tend to grow i think they have derisked the relief cycle and i think the higher multiple is part of the blended approach how about the folks that say that if shipments are down that the installed base is no where near as profitable to build the services business on i don't agree but i'd like to hear your pushback. >> so i think that the hardware

piece -- you talk about the services segment, the 15% what we think about is the entire business, the hardware pieces included are office operating like a subscription type of business if there is we canness to answer your question, if there is weakness in deasy pb trade in discounting there is a case there could be slow down in emerging markets if there is slowdown, yes, we will be wrong in the near term on our prediction. i think the stock will trade lower. but i think ultimately the 18% base of global smartphone owners committed to apple will stay committed despite economic slowdown and they will return and upgrade and buy additional services so this is one where it really takes an investing mentality to pull through this. and it's not to make an excuse about any sort of near-term weakness it's simply to state that companies like this that are staplings of our lives apple is one -- >> gene do we have any idea what the margin on the services side are?

we kind of know the margins on the phone are. but if you -- songs used to be 99 cents now $19.29. we buy an app for as the 2.29. what is apple making on that >> so they're going to break that out the first time. they've given indications in the past this is our best estimate and see the services margins are probably close to 70% gross margin and the hardware margins are probably around 30%. they're going to be breaking that out in this new reporting methodology. >> wow, 70% margin and the growth there seems steady to you? >> yeah it's a 20% grower. but again the bigger picture. >> any sign of slowdown in the 70%. >>ible i think it stable but the idea i just want to paint the picture is more products that apple is going to offer -- i think they make it easier to buy those on a coined of a yearly basis. i think that there is an opportunity for that to fundamentally change how people buy apple products.

>> gene, pete najarian real quick question on wearables, where do you stand on that. >> it's a big segment and plays into the idea of apple is the company where we get our tech, whether a dpurt are computer, smartphone or wearable it's a small part of the business the watch is 4% of revenue growing fast, about 50% last quarter but so small it don't change the overall needle. but it does give an example of a key product as part of the ecosystem. >> gene munster very bullish sees another trillion dollars coming thank you very much. >> thank you. cut kwen off so he can't respond. what do you think? can apple double in the next few years. >> absolutely why i'm buying now because i think people are short sighted in the short term can it go lower i'm not calling a bottom for apple where do you want to see the growth and gross margins that are the highest you want them in areas like we see in fs ises when you look at 330 million

subscribers to the services side of it that's up 50% year over year i mean this is a company that shows incredible growth. but 2022, 2023 services will be about $100 billion business. right now look at wearable 4 billion per quarter. that's going to grow when you look at growth drivers, the hardware side everybody is focused on the wrong thing it reminds me of microsoft people are looking at the wrong thing. they are not looking at growth. >> if you look at the chart can it could go to 1459. i don't need it to go to 350 we you will always say are you trader or investor in you want to be comfortable to invest it's one with $150 billion in free cash enclose and trading 12 times next year numbers. you want to own that even with a decline in shipments. >> you want to hear something incredible everybody out there driving home i'm blowing your mind right now. in 1980 when apple went public

massachusetts the state barred any citizen of the state from buying apple's ipo because they viewed it as too risky and didn't have a solid earnings foundation. >> right and if you bought one share at $22 it's worth $95,000 right now. >> blou my mind. >> news alert on the growing tension was china. deidre bosa in san francisco. >> canada's prime minister is holtding talks with a china. she said a second canadian citizen may be under detention by the chinese a canadian citizen has in the been able to be contacted since. she confirmed the detention of a former canadian diplomat and said they have raised the case directly with chinese officials. identifying potentially a second canadian remember, the china threatened

grave sequences process huawei was not released meng wang z was released yesterday but canada remains in the middle that is really about the u.s. appear china. >> big story there deidre bosa. tim you're the emerge being market guy this is heating up >> china is a chess player they're not getting in the volleyball china has levers to pull appear china is offended by this. no question. but back to the places where some people say this is separate from trade policy. the reality is it could be in the short run. the bigger issues are non-trade related anyway they're structural issues, issues that go at how china -- one belt one oad. >> is it at way to the deal with chinese stocks hammered this year. >> not here now it's easier to say after the 30% draw down in emerging markets you see the i think there is value in the megacap from the

chinese tech names. >> sfaeg of chinese equities ten cent music rallying and we let you know what the that might mean unicorns waiting the transports a leading indicator. let's hope not stalled out. a red december and more trouble ahead for the entire market. we explain why and pot stocks up in smoke today but congress just passed a bill that could send the group soaring. we will explain as always live from the times square. new york city, a lot more fast congp. mi u ♪ there's no place like home ♪

argh! i'm trying... ♪

yippiekiyay. ♪ mom. ♪ all right. welcome back to "fast money. after initially delays the public offering. ten cent music going public with a strong debut bob missfy at the new york stock exchange they have to be happy that the stock did as well as it did. i'm guessing. >> one of the guys involved said we feel like we should go and declare a victory and go home the rest of the year disaster averted ten cent at the nyse, $13. that was the low end but opened

at 14.10 stay there closing at $14. the big story the deal got done. it was foesed come in october as brian told you but the company postponed citing the glebl market selloff the it's continuing weak market conditions along with signs china is slowing but this time they chose to go ahead with the deal regardless given all the volatility, even pricing at the low end of the range and closing higher would have been considered a successful first day of trading. but the company has taken a haircut. they priced at the low end instead of valuing in the 25 to $30 billion range as was talked about, it came in closer to $21 billion. now skeptics say this is the shot across the bow to the tech unicorns floating out there to go public in 2019 appear we may see lower valuations than some companies want you know this list of unicorns is looking to go public in 2019 getting longer including right sharing apps

uber and lyft that have filed and other hopefuls like data analytic palintir. photo sharing app the pin interest and many others out there. despite the turmoil 2018 has been good for ipa. 189 have raised in $459 billion. that's 20% higher than this time last year on both counts so according to recognizance capitol the numbers are the billion-dollar club with the unicorn featuring drop box, dock u sign and event bright. what hasn't worked is the after market pricing t renaissance capitol hill it's down 10% for the year for the moments in a big win for a worried ip oh market. back to you. >> you know, idon't dislike th idea of calling it a success and going home the rest of the year bob. no nothing wrong with that. >> believe me, the sigh of relief down here when this

opened at 14.10 and closed to date at $14 there were people concerned. i was concerned it opened at 12 given the market situation today. but didn't happen. we never got close to 12. >> good, bob, thank you very much see you tomorrow. >> all right. >> tim what do you make of the debut. >> forget that they got this off on a good market the point has been made. 800 million users. spotify hasn't made money any time recently last time i collected. they make most of the money in social media type entertainment services where i could sell a birthday greeting or something done by guy doing karaoke with barry manuel o this is arguably one of the most interesting parent company in ten cent, the parent this isn't about ten cent. it's a profitable company in a monstersous market environment i would own it. >> what's interesting is on the debut today we had the big selloff. we had trade headlines and yet it held up

right, held up well today. to tim's point i think there is something more to this than market conditions. >> for more on the ten cent music ipo go to cnbc.com in the meantime here is what's coming up on "fast money." >> may day may day. >> announcer: yup that's what the transports have looked like this month and it could be about to get where is. we'll explain. plus despite the market turmoil there is one stock that is having the best year ever. you won't believe your ears when we tell ithue is and who is buying the name. much more "fast money" after this at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside...

...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react...

welcome back to "fast money. it has been a dreadful december for the transports one big etf that you may own, the iyt is down now nearly 8% this month every stock in the transport index is also down this month. now, fedex is the biggest looser of the group down a whopping 18% in december

alone. alaska and american airlines both down about 15% and ups bringing up the rear, down 12% despite the turmoil we heard from the ceo of ups earlier today on "squawk alley" about how optimistic he is about the holiday shopping season. >> when our groundwork we added 400,000 packages this year you can think about that it's amazing. 350,000 in the u.s what we have added aircraft, we have added for this peak season 100,000 employees from thanksgiving to christmas. so if any of you know college students that need to do something weld like to have them. >> all right given all we just talked about, we thought this would be the perfect time to play. >> trade it or fade it >> yeah that's right trade it or fade it. transport style. i'm new around here. so i'll explain the rules for

me here is how we play. i name a transport stock use ups as an example. and if trader is buying that stock you will see and hear this >> boom. >> or if they would not be a buyer here. >> fade. >> you'll hear that. >> of course what's weird about this is wouldn't you think if you were trading something you would be selling it would be red. sorry let's keep going. >> you're ruining the show you're literally ruining the cmo. >> can question get on with it guy. >> let's start with ups. pete najarian. >> all right >> trade it or fade it. >> i trade it right now. i like what they do. i like what the ceo was talking about today. there you go there is the -- they have fwroegt internationally that i think is going to be big when you talk about et next growth area for them right now they continue to expand internationally talking about 14 new countries adding on and with all the logistics they have i like ups here. i got to tell you though it has been painful i own this name. >> but if they're looking at international growth, we're

looking a a slowing economy globally the u.s. is the place to be if anything. for me i fade this on the idea that those growth names may not be what other people are looking at. >> all right you understand the game now brian. >> i do i prefer the alpine buy grie from the price is right baier he goes over different issue. >> the it's a gnome i don't think's gnome. >> gnomes live in gardens not game shows fedex, guy adami trade it or fade fedex. >> if you like ups as peter najarian why you making a face. >> you got to love fed zbleek thank you, pete. >> i would say trade it brian sullivan a and stof making faces other people can see you do that it's mine spirited i have feelings too if you like ups trading close to 13 times next year you got to light fedex at 9.5 in december with a stock that went from 270

this time last year to 180 something now. the you have to say it's due for a bounce post earnings. >> serious question. >> that's what we do. >> can you like one of the fedex and not ups or not like the other. >> like lowes and home depot. >> fedex a trade it ups is a fid it bottom line guy talked about the the number multiple this is at a modify putnam for he had exit smub fading 15, 16 times guy said nine times but i think it's ten times. trade company. >> trade it like checking into the comfort in at 3:00 a.m. with a bell i go to the north dakota american airlines trade it or fade it. >> not surprisingly fade for me. i look at the only thing the company has going for it for my view is lower oil prices but year over year growth growth, negative. >> yes. >> it's not as negative as it

used to be but still. >> wti in the low 50s. the jet fuel costs are coming that's a big deal. >> it's part of it you also have to have customers, a growing economy. a spike. >> every plane is full. >> i'm bringing up something you brought up i say you don't have to buy all airlines or love all airlines but united and delta are spirit. >> that's not the name play the game. >> you want to play the game. >> you're into the game. >> better than anybody else we trade this name. this is the -- the horse left the barn in terms of the downside. >> why is it off 34%. >> let you like airlines, delta with a big investor guy tomorrow. >> you can't like american because in the same exact -- >> can i pick please. >> in the same market look at what american does versus delta and united >> where did horses and barns coming. >> he has a horse, a barn. >> gnomes in gardens not game shows last but not least tim

seymour. we haven't heard from him. >> i realize the transports is a complicated and with the rails i think you fade most of them look at the bonds down in november about two to three% some of the lowest levels in nine months process opinion i think the rail carloadings and freight amounts are lower. i want to stay out this sector more downside. >> i disagree. noefrlg southern is a buy at this point it continues to impress beat on earnings >> stick to the game, pete. >> i'm fading the csx but buying -- you said the whole industry i think you can guy norfolk southern. >> i want to fade tim and buy csx and i want the growth in the economy appear csx gets that i faded you. >> you faded it. >> as much as he would like that. >> i faded you. >> a derivative trade. >> it's a lonely place. >> you went a dollar above. >> i'm okay though. >> check out this stock. it's up more than 11% this week. that's right

some things are up now on track for the best year ever do you know what that stock is in look at the chart >> i know. >> of course you know you read the script plus congress pass add key bill. that could greenlight marijuana legalization everywhere down the road we tell what you it is and what skoks could benefit the most upon a day when the pot stocks got smoked stick around

the road to pot legalization

may be a lot smoother following congress's vote to pass the farm bill which among other things legalizes hemp didi roy in san francisco with plor on this story didi. >> industry experts say the 2018 farm bill could be a game changing moment for the cbd industry in fact the ceo of canopy growth which recently purchased colorado-based researcher ebu tells cnbc tells us the passage of the bill is a big deal saying it's not a finish line saying it sparks what's next questions hemp based cbd is close but unlike thc the active ingredient in cannabis cbd is non-cycle active and can't get you high. the be cbd industry expect to reach 600 billion in sales but expected to rise past the 19 billion mark next year you can expect the the big box

retailers to carry the products on shechls including wal-mart, costco, kroeger, pharmacy chains and cvs appear wahl greens more stroms, sacs. and companies making the products could win big many say they are speaking with mass retailers to bring products to household across the country. a number of of these krbld start-ups in the beauty and wellness space but the biggest company in the industry are charlotte he is web or cw hemp abcb sciences and medical marijuana, inc if hemp is legalized cw hemp current listed in canada says it will pursue a listing on a major u.s. exchange. and the ceo of cb sciences says it hopes hemp legalization will help push through the legalization to the nasdaq and brian we want to add that cpg companies, consumer package goods with closely watching it

they could be behind the mass retailners coming out with products. >> big story there adidi thank you. have a great night tim you are in the space who do you think the biggest winners could be from the hemp legalization. >> the large u.s. companies with a retail property. cbd light. cannabis lefrp hemp. 12 or 15 states could have a national platform and be ready for when cbd is totally available. why is this important? because it means the federal government is now discerning looking below the surface in terms of understanding of differences between the variability in some of the products and the science and not labeling all as a schedule i very railroad positive i don't think by the way this is a sell the fact. this is not a canada nationalization announcement, not a u.s. nationalization announcement i don't think this is in the price. because i don't think a lot of the companies know the market for the otc wellness and pain. it's very exciting in fact this is big news. >> it is big news might be big

news for a couple hundred thousand people in jail serving sentencing by the way you ever thought about that. >> absolutely. >> good point. >> anybody else got a view on the pot names? they had a huff rough day today. >> tim will tell but the individual stocks but the which i look at it this is such a massive growth industry that if you rp looking at any negative news you want to buy on the negative news close your eyes and watch this grow. because there are so many opportunities. tim talked about a bunch of different opportunities i've never heard of but i know they are out there. you buy them all close your eyes go home that's the plan. >> that is the plan. still ahead under armour shares getting slammed today. the company failed to impress at the annual investor day. we tell what you had traders hitting the sell button on ua. all right this stock on track for the best year ever >> guy knows which one. >> still down more than 20% from the june high. rabustnge t true that name when the "fast money" rolls on.

>> stock jeopardy. i love that. or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

all right well back to "fast money. talk about a buzz kill under armour shares off a cliff today. the company holding the annual investor day stock down more than 10% analysts cutting sales growth forecasts on doubts that the at

leisure brand can compete with lulu lemon and nike. stock trying to stanl a comeback earlier. the question is this, on under armour's best days behind it it was a fast growth still a great company. kevin plank doing work in baltimore, trying to build up the parts that have been ignored but is it a good stock. >> no because of the fact that they are slowing count and you look at the multiple of under armour you have to say okay well then what should be the multiple of some of the competition because you can't say. especially the fact that they are losing right now or the at least weakening in north america. that's a huge problem. it's different with nic eye ee because nef the bigger the competition with adidas. >> but the i think lulu lemon someone put them on the upgrade today on lulu. the reason they did made sense they have growth, growth, growth cross the board. including margins particularly in men's wear. there is a reason that stock pulled back and creates opportunity.

i think this name had a great run but because of what they said it's too high. >> 42 times trailing earnings lulu lemm isn't not cheap either. >> but they are growing at 20% in every category. there is a huge difference. >> he said run, adidas fill in the blancs run dmc my adidas. look the bottom line the best days are not only behind it for under armour but the dynamic is this they have had massive turnover in the executive ranks and they are looking for their way despite the fact that kevin plank is a constant and dedicated of a ceo as out there. stocks not cheap >> yeah, i mean the. is it's a growth story and the only constant as tim says is kevin plank. what's the growth plan or what's the turn around plan you are not seeing growth. you can't have a turn around plan stay away. if you want to be in the space, maybe gou with the lulu lemon but it's a bit expense disbelieve stock topped out recently, the same level in june pete as you know a maximista.

>> max marshals. >> what do you see. >> i see. >> >> kevin plank upon squawk on the street tomorrow. 10:00 a.m. eastern time if you care about the stock care about what kevin plank has to say 10:00 a.m. on cnbc costco reporting earnings after the bell the options market complying hefty moves. mike kmo in san francisco to break down what he sees in octavia o ongss. >> costco options imply at 4% move after earnings when they report tomorrow after the close. larger than the 2% they historically average and it's also a big are move than the name typically implies going into earnings. one of the things i saw today was a buy of about $1,000 of the december 205 puts paying 50

cents for that buyers of the puts betting the stock will be below the 205 strike price by expiration a week from friday. representing a 10% being decline where from where any closed today. thaltd be a infect outcome for costco also. because the largest one-day decline for costco was a decline of about 6%. so given its very hue valuation, 28 times forward earnings it looks like at least one trader betting it could be a disappointing earnings tomorrow. >> okay mike khouw in sand fibrin see you friday night. >> frustrate show. >> check out the full show pgs ohs action 5:30 p.m. eastern time friday. 2:00 p.m. mounte >> they don't have you on anymore guy. >> it's not 2:00 p.m. mounten. >> it was meant to be funny but tim had a comment that wasn't funny for the second time tonight he ruined -- ruined the showpy. >> mountain time very funny. mountain time. funny stuff folks. >> nearly 11% this woke.

trading the highest level in years. do you know what the stock is? mystery chart. find out what's coming up. tonight on "mad money" jim breaks down why today's market action could mark a turning point for stocks you want to hear what jim has to say. at the top of the hour aayweilsee nasdaq market site aslws wl e you back after this i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪

mom. ♪ welcome back to "fast money. time to play stock jeopardy. the category is this tech stock soaring here are clues up 11% just this week. >> okay. >> up 51% this year. >> wow >> which makes it the stock's best year ever >> huh. >> do you know what it is. >> what is general electric, brian? >> incorrect. >> what is. >> i know the name of the stock. >> it's in the camp. >> i can't play. >> it's twitter. >> oh, yeah. >> the stock up more than 5% today. despite selling off with the rest of tech earlier it's up double digits wow.

600 question wasn't too hard not too eds. the twitter guy adami have more room to run. >> one of the analysts put at 39 price target on it the answer is yes. it got caught up in the facebookismen netflix google selling. look at the last quarters they've been decent. i think there is continued room to run i think we had it as a final trade four or $5 ago as a matter of fact. >> there is no way you can separate twitter from the regulatory environment that fischer is going through very negative there but injury the trust factor for twitter is different i'm not saying people believe everything out there is not ---er person on twitter every account is real. but i think people go to twitter for a reason they go there for news it's a media company. facebook is not a community of sharing. >> despite twitter flying high this week the stocks -- >> i mean, you can't pause like that. >> despite twitter flying hoot high, the stock is in bear market territory with half of the stocks in the s&p 500. here is the question

how do you know -- how do they know. >> how do you know. >> if a stock rally breaking out or if it's just a fakeout? guy adami with the more you know at the plasma. >> after school special. >> i have three -- up some call this am trilogy. it's not really. >> are you walking up a hill. >> my back hurts all the time pete you can't make fun of me. how do you know if it's a breakout or fakeout? that's what we are talking about. twitter is a good example. but is the fundamental story intact in other words has anything change in the fundamental story? if the answer is no then that's actually good. number one number two have we seen c capitulation price action. 52-week low and 13 one this is a biggy. good reaction to bad news. you always see obviously stocks

selloff on bad news stocks go higher and good news but if a stock goes up on bad news that's a good sign. if you see the all three of these things unison maybe instead of a fakeout it's actually, tim, brian, b.k. it's a breakout. >> a new game. >> the this is the more you know like the nbc thing and this is cnbc we are allowed to have it. >> i thought it was a game. >> guy i got a quick question. we talked about fedex and ups earlier, right do either of the names fall in the category of what you laid out or are you waiting for number three question three to be answered. >> i think in both cases, the fundamental story is intact. unfortunately in my opinion you haven't seen the capitulatroy price action both hammered but down on

monsters volume. you haven't seen that. but coming up december 18th in terms of fedex if they say something that -- if they give guidance that's squishy but the stock goes higher that's a good reaction to bad news in the case of federal express at least i think you have could potentially see two out of three. at meet loaf said two out of three. >> two out of three. >> cuts like a knife and feels so right. >> stop there before we go any further do you love me hold on. up next. o owig n. kn rhtow >> final trades. next luck. luck. she believes in research. it can take more than 10 years to develop a single medication. and only 1 in 10,000 ever make it to market. but what if ai could find connections faster. to help this researcher discover new treatments. that's why she's working with watson. it's a smart way to find new hope, which really can't wait.

♪ ♪

time for finaltrades pete najarian kick it off. >> everybody is afraid of the financials don't be. morgan stanley baby giddyup >> downgraded today. >> a lot of headwinds for this name for american airlines price to do np and i like airlines. aal. >> b.k. >> a tremendous run in the dollar maybe we verse check out gld looks like a breakout. >> guy adami, i got to say this show starts at 5:00 p.m. you were on the air at 5:00 a.m.

think about that. >> you don't have to tell me. >> it's amazing. thing for filling in brian honest to god. jw nordstrom bottomed out brian. back to you. >> you like the jwn. >> i won't be on ♪ 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 put it in context. call me at 1-800-743-cnbc. >> announcer: don't miss a or tweet me @jimcramer. finally, a day made sense. this morning we learned that the chinese government may be