far down that if it can't rally off of what comes out of the fed you have to pay is by passed another decent excuse as cattle zblieft what is the market seeing >> that's the very question. >> with five seconds left. >> i leave everyone to ponder it all night. >> and the "fast money" guys answer it for us. >> that does it for "closing bell." >> "fast money" begins right now. >> "fast money" starts right now. live from the nasdaq market site over looking times square. melissa lee. traders are tim seymour. brian kelly absteve grasso and guy adami. two big names reporting earnings microen and fedex both getting crushed after hours. the conference calls getting under way. we bring you the details and the biggest bull on wall street just backed down slashing the 2009 price target. what changed to make this bull run scared he joins us. we start with another wild day for markets. dow initially rallying 300 but snapping back from the losses but the volatility kicked in this afternoon and a whip saw

into the close ending up 807 points s&p barely in the green and cue the bay watch because the bulls are drowning headlines heading like waves as trade turmoil and oil krarng weigh on stocks. as investors wait to see what the fed will do tomorrow will it be the fed to rescue what if not we turn to the birthday boy. >> big four o. >> bay watch pod come on. >> you mean there is no sin saert saying that. >> i'm just saying >> i've been trying to lose weight it's hard at the advanced age. >> you're fading away to a tub. >> kuchlt. dos to steve grasso. i think the low on the s&p was 2530 bounced from there. that's good for the bulls. the other good news is the market had every opportunity giving up the 300 point gain to roll over and have a miserable

day but got it back day and closed up whatever it did, the s&p is flat. will the fed save the market i think the fed should move. i think it should move in '19. but i get the funny feeling they move tomorrow, dovish commentary in their prepared remarks. i think the market will like that i think we're in for one of those late year rallies. by the way, i don't think the problems are just the fed. i think 2019 is the year that this goes significantly lower. >> the fed is the sell event tomorrow i'll take the other side sell event tomorrow. we will break down technically will break down further. i don't feel like it was capitulatroy. >> i haven't, no. >> technical as i see 2,500 and i 2375 -- i know it's ugly, grim reaper but that's what i would say capitulation at that level i don't see it yet

so more to go on the downside. >> earlier today i thought the fed might have influence because the dollar hadn't reacted to everything else it is the one market that didn't price in the fed but the problem is the horrible earnings after the close here. and that's going to cloud the economic picture so even if the fed does a dovish hike, it comes down to the global economy and based on the numbers we are getting it doesn't look great. >> horrible earnings from cyclical companies indicators of economic strength or weakness. >> right by the way, steve obviously a seller of raiser. >> i was working the a a soup kitchen until the wee hours of the morning. >> don't hassle the hawk if you think about fedex and microen you could say they're cyclical maybe less so microen but semis were defensive i would highlight what brian talked about german efo we want to know when what's going on in the rest of the world. fedex told us about the rest of

the world. germany continues to get worse if they are at two-year lows housing starts are terrible. multiflam starts continue to be great which means people are renting not buying telling you something. and how about oil? how about a 7% move in fwrent? you have to talk about this. i have often said and have said price is not truth guess what we have a supply issue. clearly the market is pricing in demand right now i'm not sure opec can get it together. >> you can't start from the back end of that. you can't get out of the way with the u.s. production at historic volumes eclipsing saudis and russia. when you look at tomorrow when powell speaks. when he speaks even if he doesn't raise only but once in 2019, what are they doing? they are burning $50 billion per month. it's a raise every time they meet. >> that's what the president referred to in his trump to the

effect of let go of the 50 bs. i want the qt aspect of the thing. what do you think the market reaction would be if we did in fact get a dovish hike. >> i think the knee jerk -- the me jerk will be higher i will take the other side. >> why doesn't the market know that. >> we talk about it all the time. >> i know. and we have conversations like i guess it wasn't priced in so i could see coming on the set tomorrow that happening and saying guess what it wasn't priced in. i'm not suggesting i'm right but that could be sort of the back drop especially after the fedex numbers. which is disaster. the fed has air cover to be dovish i don't think they should be they should move in '19. i'm not an economist i it doesn't matter what i think. >> the fed can't win. >> they can't. >> they are hiking into recession or not do enough let's face it whether the stock market that's only 13% off the highs, a housing market at all-time highs you have asset prices that i think are really

kind of in trouble if the fed doesn't continue to move for all the people beating up the fed and saying they haven't been moving. >> the market doesn't like -- i'm just saying people have to be consistent. >> this is the main focus of the market since october 3rd yes there is trade headlines about four other headlines that have been headwinds but the main focus have been higher rates. >> and the markets don't respond trade headlines at all we had secretary mnuchin come on saying they were working on u.s. china talks in january exactly no response whatsoever one month ago that was probably, what 10 points on the s&p 500. >> of course, yeah and we talked about in ridiculous strategy of every time the market was down you come out and say we had talks with the chinese again and the market rips. eventually you lose all credibility and it appears that's what they've done now we look at what the economic impact is around the world the thing i've been concerned about and others as well, is saying how long is the trade war going to last?

we have a fed know they're tightening the trade war, temporary trade war and get food are good free frau trade that's good good. but it's if lasting long and economic impact and fedex and microen and europe show. then you have a problem. i don't think the fed has anything they can do tomorrow. >> let's put aside the trade war. on the data points we have gotten do we already know -- do the markets already know that there is global -- a global slowdown under way to the point where u.s. equities will be affected >> european markets know the asian markets know. >> china markets. >> u.s. market given the fact it's only down 12% from the high. >> commodity markets know. >> commodity michiganty markets. >> it's the last market to know. but it's the last market to feel the collateral damage and it does feel the collateral damage. you can't rise in a vacuum. >> i'm not saying the time to buy emerging markets although

there have been head fakes and i was head faked 10, 15 days ago. but emerging markets and other asset classes are outperforming the u.s. now finally. on a relative basis. you look at em bottomed against the s&p in early october that's telling you -- remember we asked the questions about the rest of the world. i think the u.s. is catching up. it's not gnat rest is getting that much better. >> let's aa dovish hike tomorrow moving the dollar lower. >> the dollar goes lower -- that was my trading plan into tomorrow until i heard this news after the close. but i think you can use that as a trading plan you see the dollar fall apart. buy em pch by multinationals all the things killed because the strong dollar. >> how much can it fall apart. >> i'm no not saying falling apart, goes lower. for a rebound rally. >> all right >> all right as the bull struggled to survive the biggest wall bull is slashing down. slashed slaing his s&p 500 accurate target to 29259 from

3350 after a brutal month. let's bring in jonathan golub chief strategist for credit suisse. >> is it fair to say you backed down. >> i hate lowering the target because i am not seeing fundamentals deteriorating and i just want to say, there is no yes we are seeing the economy slowdown 's not even a question i think that's well understood but if you look at -- i think that's baked into the earnings next year we're going to see 6 to 7% eps growth, not fantastic but god enough and if we have the fed done, which i think is what we find out either soon or -- either very soon or somewhat soon -- that plus 6 or 7%% eps growth is enough to get the accurate market back on better footing. as long as nothing goes wrong. so am i still bullish, but i have taken it down. >> can i ask you to pull the

curtain back in terms of how you strategists come up with the year end targets i assume -- i always thought growing up you had modelled and you plugged in earnings for next year et cetera. >> right. >> has that changed? or that is been the market pulled back in the month of december and said we are going to return x percent. therefore have to rerate the price targets. >> 13-year-old melissa probably was thinking about economic models it's a compliment i think. >> let's start with earnings with we are not changing the numbers at all we model them based on what the expectation for the kpee is and it's slower. we model that lower oil already was taking a a little bit about pat 19.5% off the earnings because that's negative. buybacks continue to be strong you know, 1.5% from buybacks we get something that's like, like i said 6 to 7% which is not brilliant. but it's probably okay

and valuations, if you look at the cost of capital, 10-year bond yield is down, which offsets the spread widowening we had. the cost of the capital is cheap. recessionary risk we talk about weakness, the ism is printing close to 60. we're not going into recession i have -- service i lowered the number, 15% upside and a number which is lower than what i thought it would be or wanted. >> jonathan when you talk about you see fedex, which is i would say a a bellwether and microen perhaps. >> right. >> how do you think about that in terms of earnings forecast? because tomkowiak the market is rating everybody lower because of fedex. >> i look at a couple of things. one is i look at where i think the earnings would be based on like i said economic drivers and separately we take all the analysts across walds not just credit suisse but all the analysts and what are they doing, revising numbers?

and right now the revisions are normal it's not like they're splashing numbers. if they are it's because they see the market going down and feel no different than me, i got to cut something here, maybe i'm too optimistic but we are not seating analysts wholesale cutting numbers. >> you cut 4 and 25 s&p finds relative to 25. >> 12% something like that which is basically. >> because of volatility largely. >> yeah and here is i think -- here is i think happens. i think the vix will be in the three, four, five months now will be below 15 i think that that causes equities to rerate i think the fed is going to tell you they are done. i think that causes things to rerate i think you have an okay but good enough earnings back drop and i think that that gives you a double digit -- double digit number. >> when you look at the -- the cost of capital is going up. talked about at the top of the

show burning 52 billion per month no matter you slice it the cost of capital. >> let me start on that. companies termed out debt. you have the amount of short--term debt on corporate balance sheets is the lowest it's been in history compared to long-term debt because they realized they were never getting better and termed it out the fed can move the short rate up it may help -- >> so taking the corporations out of it when you look at what the banks tell us with the story, we have portions of yield curves that have inverted, threes, 5s, 2s, 10s be close to it. >> right. >> don't that give you the head up when you look at sellside banks that are sort of late -- i'm trying not to make this insult but every dip is worth buying it just seems like every sellside bank they will say every dip is worth buying. >> there is a whole bunch of things that can go wrong and if i see them going badly i'll -- i'll take a bearish view

let's talkabout the bear case. i think donald trump is in in trade thing for way longer than we think as much as i'm optimistic people were talking about three weeks ago getting a deal at the g20? sfwloot no if the chinese gave him something early he would say that's a starting negotiation let's do better. but what's he is saying is europe is piling on they want to get in on a better deal with china. i think we are lichaj this for a while. how much gdp does it take off be, 20 basis points, 10, 30? right now the economy is fine and i think it is noise. is it a problem? maybe. but right now just noise that's number one. number two we have a tight labor market there is a chance as much as the fed wants to be out of this that inflation can pull them in if that happens i'm going to come on mere saying i'm slashing number but now i mean it and am negative on things that's the two bigds things. am i concerned about the removal

of liquidity from the fed? i don't think it's a problem by don't know we've never had -- give me a case to look at looking like this. i don't think it is. but that could be a problem as well so there is a bunch of things. overall, i think the back drop with the fed out, no recession, a little bit slower growth, i'm okay >> jonathan, thank you. >> jonathan golub, credit suisse. >> i like -- >> i do not wall street straegtist some saying they are not publishing a year end target it's treacherous to publish these targets these days >> take a view nothing wrong with having a view and defending it they applaud you for taking a view and making a cogent argument. >> directionally i like to know where somebody stands. >> the 50 billion coming off the fed balance sheet every month, tim talked about this talking about $60 oh billion more the

year, the easiest thing to do when trading or putting on the prop trade is getting in the trade. the hardest is getting out that's what the fed is trying to do in an elegant fashion to not disrupt the markets. it can't happen. almost by definition to jonathan's point quickly will the vix getting to 15, a lot of things better happen for it to get to 15. because when the dow was up sfiftly, the vix was up and it's telling a different story. >> the latest company to join the buyback boop they try to take advantage of the falling stock prices is it a sign the market is closer than you think? check out fedex and microen. both getting crushed we have a technician waiting in the wings to give us the instant reaction and tilray striking a deal with the pharma giant and why investors are so excited. live from times square in new

york city. much more "fast money" coming right up there's brushing...and there's oral-b power brushing. oral-b just cleans better. even my hygienist said going electric could lead to way cleaner teeth. and unlike sonicare, oral-b is the first electric toothbrush brand accepted by the ada. oral-b. brush like a pro.

♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ welcome back to "fast money. chip maker microen slammed after hours following the ermgs report after the bell josh lipton with all the details and what wall street is saying about the details. >> i checked in with analysts on print i'll bring you those comments rosenblatt hans mosesman, the top line at lower end of range

non-gap eps at slight beat at kevin cassidy staying results in line with expectations. 1.8 billion out of 10 billion share repurchase shows a good start. importantly though melissa i checked if with these guys before the call which is when we got the guidance which under shot the street. q 2 saying to expect eps about $19.75 the street at 2.44 and revenue looking for 5.7 billion at 3.6 billion really the executives on the call here talking about a near-term outlook they call challenging, weaker demand, specifically just for example data center. they say they are seeing reduce the revenue, expected that headwind to persist a couple of quarters, seeing cloud customers going through digesten in their words. graphics new headwinds they

think continue for a couple of quarters here. check out the smh, smellsa it's not just microen the chip etf even at the close down about 20% from recently highs. you can see it lower in the after hours. it was interesting because i had a recent chat with susquehanna who had gone to agea recent and really the assemblers. distributors, manufacturers and saying he expected there-term pressure because of the weakness from microen in the markets. pcs, smartphones, cloud infrastructure when i talked to him he thought you had 10% downside risk to the sector before the bad news in my opinion was priced in back to you. >> thank you, josh josh mentioned the action in the after hours on the smh and look at wdc, western dij down about 2% in the same area but nvidia, texas instruments.

>> tim has been correct the last week or two. semis has been trading well giving you some hope and on theism for the quarter it's a disaster now. in the spring microen announced the $10 billion buyback. that's them telling us they are no longer cyclical and getting away from being a commodityized businesses for a month and a half it looked like we were geniuses guidance is -- people have been buying on valuation. guess what they just got more expensive on the way down which is interesting. >> you know what's weird, quickly, if we make it more difficult -- i do than it is if you look at d rim. >> i wasn't sure what you were talking about. >> everything. >> just fill in the blank. you put. the chart with d ram and microen. from march prices of d rachael down 40 peppers micron down 43%. >> commodity producer basically. >> that's the defense against

maybe this isn't the ultimate cyclical tell. because on some level i think the software part of in is something to be concerned about. businesses use software to lower prices and become more efficient. one way to lower cap x and soft x is stop buying software. it's been an incredible cycle for software. >> nothing good about earnings report we have todd talk about the technicals but 33.5, big level for microen. breaking through that. i have deteriorating fundamentals and technical break, no place that b.k. wants to be. >> see what todd says about the technical break. for more analysis to microen earnings and the chip space let's go off the charts with todd gordon, trading analysis.com at the plasma todd. >> melissa, b.k. i got lower levels but first talking about the earnings microen, nothing good. down 7.84% trading 31.56 after hours. the loss of 33 from a technical point of view is no good i see lower levels

options markets expect the move down to $31 heading into earnings for tomorrow. if we exceed the 31 level look for additional selling as we get off the intraday earnings reaction chart let's get into it. you were talking about how commodotized the pace is the monthly charts we can put it in context just how rhythmical and patterns these are this is microen oh the monthly chart. you see two significant declines in mu. 72% with, 74%. average 70%. if we are in a 70% decline happening twice before in the past we have further to go right now as of the close of business today we are down 49% obviously another 20% on the downside let's go from this chart down to -- actually it's a monthly again. but he put a little bit more detail behind this okay a -- a 70% decline like we have seen here and here puts you

b.b.k. at about $20. i say to say but it corresponds perfectly with the uptrend support. you can't make it up when there is such a pattern and technical level i feel the market attracts do it. it's a drop but certain within the realm expectations >> back to the smh you see theright manicle decline and what we have seen in the two declines are 29%, 27%. so far smh has done 24%. it's within reason another 3% lower will get you to about $83. we just broke that 90 level after hours on the back of microen. so, again, that's about 75 to $$83 i was going back and forth with dane nathan on this. i was bullish semis. he was right we need to hold the 83 and 75 is the uptrend support. if you break this you

outbalance -- overbalance the prior corrections. that's when the correction turns into something more. we have a little bit lower to go but if it copies going that's a problem. >> all right so more pain ahead especially for microen. i want to talk about the amazon call you made last week. i mean it dropped jaws here. you said that amazon could sink what to 80 oh or something where do we stand now that we are practically at february lows on the s&p 500 >> again there was a huge asterisk on that call. i'm not saying they break 1,000. if the market doesn't hold up some of the symmetry in the chips, different sectors breaking down. if 2450 goes in the s&p brings 21 if the overall market melts down here is support at amazon. i made this point at another segment on cnbc. if you try to draw a trend line, okay, fine, there. what happens if this traditional trend line doesn't hold? where does support -- where do

you derive support you if you calculate you don't have anything on the downside take the angle of ascent on up side drop below and project up this is a massive rally, from $35 in amazon to about $2050 guys that's a 5,800% rally in amazon what would you say if we did a 25% retracement of a $2,800% rally. that's not out of the question that's lower channel support here and depending on the angle of attack how fast we get there, that's possibly 900. if we just lango railroad the slow melt downcontinuing 800, 700 depends on the angle but if this is down to lower support those are the levels we look at. trying to be objective not senation alistic.

>> too late. >> trying to trade what i see not what i think. >> to be clear was the aasterisk is if the market melts down. what is your definition. >> 2150 is the equivalent uptrend channel in the s&p at that point in 1850 is the 2050 breakout as the way fang is going if we include amazon that looks within reason here. >> okay, todd, thank you todd gordon of trading analysis.com mr. sunshine today >> what was that control alt. >> c scan stands for copy. >> that's where i dialed out todd wasn't calling for amazon let's be clear that wasn't his call he tried to make it clear. i thought it was clear last time getting back to microen quickly, it's interesting if you listen to what they said high end smartphones a problem what does that mean for apple? apple is probably lower in the

after market if apple can turn positive tomorrow maybe that's at least a tell for apple all this news we see now in the microens of the world is in the stock. >> you know what's interesting about amazon, if we erase the s&p gain trump had from election night 2,100 back in s&p. that's where you get amazon. unfortunately i think we are going to erase it. >> you think we get to 2,100 on the s&p. >> this is not a month downcall. but it's steeped in irony if we erase the entire trump rally. >> what's great about technical is it takes the evenings out of trading. where you make the mistakes is you get too emotional and caught up whether you like it or not that's where support it. but i think as todd's point and to your point, steve, it's going to be a while. a lot of things have to happen and i would suggest you probably have to have a recession type of economic environment for that to happen >> 400 points lower on the s&p

500, bier or seller. >> i'd be a buyer. buyer of that. what i know now i'd be a buyer >> for more on todd gordon's big amazon call head to cnbc.com here is what else is coming up >> always go for the throat process buy low, sell high fear that's the other guy's problem. >> yup and that's exactly what corporate america is doing as the buyback boom heats up and the traders will tell you which names they are buying back to plus. >> this is like the apex of the vortex of joint engineering. >> okay. not exactly. but tilray did just make a major deal with pharmaceutical giant novartis and we will tell you why that has pot investors feeling well, high there is much more "fast money" there is much more "fast money" right after this

there are doers of good and bringers of glee. 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 $1,250 credit on select models now during the season of audi sales event. ♪

welcome back to "fast money. correspondent buybacks booming this year as companies buy back

a record $1 trillion of their own stock. bob pisani has more on this. bob. >> you know it's official. this is the all-time record year tor bye backs. 1.1 trillion worth and they are using the authorizations about 800 billion has been bought back leaving about 30 oh billion in unused buybacks. we have seen them from lowes, pfizer and facebook. but as stocks moved lows companies are picking up the pace of activity the buybacks from boeing, johnson & johnson. shoe carnival. replia hotels appear several announcing skrermted buyback processes. y'all state bought back $1.0 billion using an existing buyback program. it's a sign many cfos believe it's under valued. will the buybacks continue into 2019 that's what we are trying to figure out and the answer is yes.

provided the companies throw off free cash flow if there is a economic slowdown the cash flow will diminish and the pace of buybacks will diminish second companies need to continue to believe that reducing share count and boosting earnings per share is more valuable use of cash than making investments elsewhere like actually investing in the businesses well, all this buyback activityulate unfortunately plays into the hands of critics who argue it's a form of financial engineering that doesn't really do anything to improve business operations or the fundamentals it also plays into the hands of the people critical of the tax cuts, arguing that obsessing over ways to boost stock prices helps the investing class but not the average american unfortunately, the corporate -- corporations as you see, melissa have become addicted to the buybacks back to you. >> bob, thank you. so should you be betting on the companies betting on themselves in sounds like the perfect time

to play trade it or fade it. and since guy is here is one year older he might have a hard time remembering things i'll explain how it works. >> please. >> i'll name a stock using boeing as an example the trader is buying the stock you they say trade it and you see and hear this. if they are not buying the stock they say fade it and will you see and hear this. got it. >> can tim start first. >> starting with the birthday boy. use boeing. >> you gave me the answer. you gave me the answer. >> i said trade tan fade it. i didn't give you answer. >> i'm not a year older today. >> yesterday you were 61 and today our 62. >> a older than yesterday. >> ha ha ha. when i retire you'll be ubts and you'll say i made him trade it or fade it. >> yes. >> trade that sucker and i want the green light to go. this is why. last night we much bayley whoed

johnson & johnson. i pointed out as the 330 billion-dollar market cap company. boeing at $20 billion-dollar buyback on pennsylvania market cap. that's significant they traded in 189 the number in a company basically growing 20 times earningsish. i say you trade this sucker. i understand the china tariffs and get that but boeing a a name to stay with. >> the dividend raise is more powerful in terms of them being confident about the future than about the buyback. >> right exactly. and we priced in a lot of in stuff. so i'm with guy on this. i'm a trade it and i would actually double trade it can you do it. >> does that mean fade it. >> i would only trade it if the dollar fades >> i don't know what that means. i feel like guy adami. i don't understand this game anymore. i know we are looking for fade it but if there is a company out there to trade it's this.

they have down to 16 billion in free cash flow it's at oh blue-chip as they come for companies buying back stock. >> grasso. facebook, trade it or fade it? >> oddly enough i was a fader of boeing but i think i want to be trader of facebook. i think. >> where -- we got three people trading boeing we needed a fade it. >> these things -- first of all whenever they authorize in verse what is they buyback they always buyback less than the forcing. >> boeing bought back $9 billion. >> and doubled up on whatever it is but they buyback less. and that's taking place in january. you get a couple of weeks. >> talking about facebook now. >> facebook technically has been so beaten up i think shorter term you could see the actual corporate repurchase act as if put your money where your mouth is. i think people probably see this as a positive event. ultimately i think facebook is lower. short-term higher. >> i see now --

>> trade it or fade it. >> the show is called "fast money" so i think the next couple of months, you are able to trade it by facebook. i think ultimately it is a fade. >> look at that chart. it's been good in the face of the market melt down. >> do you have up there where the corporate repurchase was announced? that was really the near-term low. >> trade it or fade it. >> i had tra it. >> you people are so exas per eighting b.k., lowes. >> fade it no, wait wrong one. lowes -- i'm actually -- i'm going to trade this. the reason why you look at the free cash flow, bob pisani mentioned it's about free cash flow 23% growth in 2019 wsh as long as they maintain that you trade lowes. >> trade lowes if it was a hotel chain it's a fade. >> probably. >> if you ask me i can't give you fade

i trade as well. i think this company trades three turns cheap to home depot. home depot does better in downhousing mechanic as well because people fix up. they have reinvested nicely and it's cheap. >> back to tim but this time with pfizer or trade. >> so i'm not leaning in one direction. i fade pfizer. not alitteration a company that did nothing for four years and rerated 46% the last six months is reralted valuationwise. it's as simple as that great company and balance sheet. i understand why they did this it's already rerated fade it. >> let's settle with the score with "options action" and look who makes a special appearance today. i believe it's in honor of guy's birthday dan nathan we are discussing pfizer as you heard. what is the options market telling but whether to trade or fade. >> on a downday for the stock and space getting roughed up, call volume is two times that of

puts in phaser i'm trading this this is interesting near-term. obviously fwlaes been optimism about drugs, valuation support, kind of defensive in this space. but today there was a trade just short-term in pfizer where traders were buying the december 28th weekly 44 calls paying 30 cents for those. the larges largest block of those, 5,000 traded on the day this is a short-term play to goat to the upper end of the range. i have a couple of charts. quickly here you see the one year, the consolidation on here. at the low end of the range. looks like decent support. this is 44 this is what the trader is playing over the next seven or so days. i want to go quickly to the five-year chart. this breakout and tim talked about the rerating that is an epic breakout after a long consolidation. i suspect you see continued the consolidation to the upside range and lastly we know that

volatility is increased all over the market this is implied volatilitying with, the price ofpfizer options you see shot up dramatically the last couple months where the market gets back to prior levels what does it that tell new short-dated option prices are expensive. if you are making long calls, puts and calls understand the price of the options are expensive. you may get the direction right but the magnitude wrong and you lose money be careful in environments like this picking directions using long premium trades. >> thanks, dan. >> great to have him around. >> you're the smartest one by far. >> thank you. >> does do the i o alit ration. >> why you calling me. >> i'm not calling you out i asked mel a question. >> for more ogss action check outen the full show ds friday 5:30 p.m. >> for more upon the recent boom tune in to "mad money" tonight you can see jim talking to the

boeing cfo the fedex getting crushed, the conference call kicking off now. the tilray soaring after a striking a deal with novartis. the stock has gotten smoked. but the christmas miracle the pot buyers have been waiting for. more "fast money" still ahead. >> announcer: "options action" is sponsored by think or swim by is sponsored by think or swim by td ameritrade. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you?

welcome back to "fast

money. the cannabis space has been wheeling and dealing a major partnership in the industry today. check out tilray soaring 16% after a deal with novartis, the first partnership with tilray and a pharma when i started in in industry eight years ago there were 15 countries in the world legalized medical cannabis today more than 35 it's clear to me we go from 35 to 40 to 5060 countries around the world in the next 36 to 40 months this enables to us us the sandoz supply chain and salesforce distribution network to enter new markets globally as a faster sfas. >> sandos a unit of novartis tim is on the advisory board for

a number of stocks meantime what does that mean and it's interesting that the other ones we're making deals with cpg or skmurm product companies and tilray going after skmeld. >> when people talk about the convert calcium that cannabis is disrupting massively certainly pharma is one. novartis through sandosz a noble player this is using distribution, cobranding possibly developing new products if there is an international company it's a drug company. they have to operate in different jurisdictions, having to have the compliance and regulatory framework down. and certainly this is the right kind of a partner for a company -- if tilray has been differentiating themselves in any particular way it's a global footprint and a company focused a little bit less on this. by the way this deals goes straight into ktd helping them get a leadership at least with the direct to market consumer and the online good for them. >> by the way when i talked to brenden he was talking about the

markets still yet to come online in terms of legalization they recently put on an advisory board, the former dnc chair and rnc chair and a couple of ministers of australia and europe. >> i think the future is bright. i'm long can't typy. long cronos. i do think you go into the ability for a longer term trade. but if you look back to the legalization date in canada all the stocks peaked. i think they are fluffed with a lot of the energy. you sort of need a little bit of reality to set in before. >> coincides with the market downtourn to be fair. >> to a certain extent i think you can matchup the bitcoin buyer. i know you disagree. i think the bitcoin is versus cannabis investment. it's snult. >> fedex crushed after hours the ceo speaking right now on the conference call. we tell what you has investors

running scared right after this break. duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates.

duncan's wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford.

welcome back to fmz. shares of darden jumping up. raising the 2019 outlook is this a sign cracks in the consumer are fading? steve. >> this is a good restaurant operator in the space. i don't know if you can overlay this on the market opinion pretty solid numbers good comps and labor less of an issue as for the rest of the space.

i think this might be stand alone. i would be a buyer. >> coming up, fedex sinking after lowering guidance moments ago. getting crushed. check out the movement down 6% we tell what you the company is saying cautious comments about the global economy more "fast money" next your digestive system has billions of bacteria, but life can throw them off balance. re-align yourself, with align probiotic. and try align gummies, with prebiotics and probiotics to help support digestive health

♪ there's no place likargh!e ♪ i'm trying... ♪ yippiekiyay. ♪ mom. ♪ welcome back to"fast money. wove gotten an earnings alert on fedex. the stock tanking after hours. let's get to eric chemy for the details. >> despite top beats on the top

and bottom lines dropping a quick 5% on earnings because they significantly reduce fiscal year eps guidance. the company saying that's because of weakness in international markets, especially europe. here is what the ceo had to say a few minutes ago on the call. >> fedex is experiencing strong growth in the u.s. where the economy remains solid. however our international business, especially in europe weakened significantly since we last talked with you during our earnings call in september in addition, china's economy has weakened due in part to trade disputes >> as a result, fedex is laying out a series of cost cutting measuring, including voluntary employee buy the youts limits in hiring reducing network capacity and cutting back on discretionary spending the company already expecting to take a half billion-dollar charge for u.s. based employees on those buyouts on top of any

international employees that get bought out as well. >> eric, thank you i think this is -- these are dramatic statements coming out of fedex compared to what they said in zbleept 90 days ago. >> right. >> not only that, fred smith, first of all is one of the best in the business. he is a very non-irrational dude but the bottom line is this is a company trading at a the rainfall multiple. when i hear about staff cuts and things sounding like restructuring this doesn't sound like europe has gone down quickly which it has and which should concern you regardless. >> these are permanent things. or maybe not permanent but longer term type of things cutting staff, reducing spending, doing a lot of things to reduce the footprint here they not only see it in the last 90 days, think about the dramatic slowdown that had to occur over the last 90 days when they raised estimate for them now to say wait a second things are slowing down and so much that we have to make cuts. >> it's the degree of

deterioration that is happening in just tree months. is this a data point that jerome powell should be looking at. >> he has to. >> has to be >> not in terms of the stock performance in terms zbloof what he is saying >> exactly what they are saying. you can take -- i guess there is sort of a silver lining to this tomorrow the fed has to take it into account i think. it gives them air cover to be dovish heim in a different camp but the fact that fedex is going from 270 to 170 in a year. that's startling. >> i think it priced -- i think they priced in europe and china. whether it needs to reprice in more it's done that after the bell i talked about fedex in a few times. i look the company here. >> slowing domestic growth, that's the story, e ththeme, sell the mechanic sell fedex. sell the mechanic sell fedex. >> up next, final trades

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. can i get his email address? oh... i don't feel comfortable sharing it. get the iphone 10 s and our unlimited plan with your choice of the best in tv, movies, or music. more for your thing. that's our thing.

tap one little bumper and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪ most kids today will have jobs that don't exist yet. the engine management systems coordinate with autonomous vehicles. financial data, so now we can predict the future. our new flexible propeller design. by collaborating with public schools on a program called p-tech, ibm is helping students build the skills they'll need for tomorrow. revolutionizing. aerospace industry. it's an entirely sustainable approach. any questions? when you rethink education, everyone can put smart to work.

final trade time tim seymour. >> i like home improvement pmt i like lowes and this valuation. take a look. >> b.k. >> well in a low-rate environment in which we find our plt altria making a pivot towards cannabis. >> xlus, the utility stick there if you don't know the direction of the market. >> happy birthday guy. >> i appreciate that. >> happy birthday. >> so nice. >> we got some people from the university of north carolina, wilmington, they are floating around in the back

unc wilmington i'm not 62 >> we know. >> and karen power pitched target she got me thinking tgt. >> see you back here tomorrow at 5:00 "mad money" starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" now. hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want the make friends. i'm just trying to make you some money. my job is not just to entertain, but to educate, teach you, put it in context. so call me at 1-800-743-cnbc or tweet me @jimcramer. hey, this market, at least it can bounce, even if it's only temporary. the averages opened strongly this morning and then rolled