the ut u.s. economy. >> i feel like the theme of next week is we get the hard data >> that's right. >> start getting hard data not that ism but just -- and earnings that will confirm or krobt what the market has been telling us that there is a slowdown coming or not. >> we're still on the watch. all right that does it for "closing bell" for this week. >> "fast money" begins right now. have a great weekend >> "fast money" starts right now live from the nasdaq market site over looking times square i'm melissa lee. traders are tim seymour. karen finerman dan nathan and guy adami we start with the massive market rally. powell saying the magic words patient and flexible and stocks off to the races after the markets were up on a strong jobs number in hopes of a china deal the dow jumping 750. and the nasdaq up a whopping 4%. let's get to steve liesman in atlanta where he attended the fed panel earlier today.

hi, steve. >> hey, melissa when you said the words patient and flexible i thought of a runningback and a gymnast. that's what they think powell is now i guess. let's get to key take aways that powell said today here in atlanta. one, flexible on rates two, inflation is muted which allows him to be flexible on rates. three, the balance sheet is up for discussion in a way he hasn't perhaps said before as melissa said, very correctly there, maybe the most important thing was he said the fed can be patient. >> with the muted inflation readings that we have seen coming in, we will be patient as we watch to see how the economy evolves. but we are always prepared to shift the stance of policy and shift significantly if necessary in order to promote the statutory goals of maximum employment and stable prices >> of course, interesting to hear a dovish fed chairman on a day when jobs were 312,000 -- almost double the expectation.

let's take one more look at those jobs reports, because we can andshould. very strong numbers. especially those revisions plus 58,000. unemployment went up for all the right reasons because people came back into the workforce i want to show thu comment just because you think you may be out of the woods around the table look at what oxford economics says about rate hikes. the strong labor market picture sports the expectations that there is a tightening bias in 2018 and hike rates twice next year guys i don't know if powell was telling the markets what it wanted to hear for the current situation. but i think if the strong data continue we may be back talking about something else not rate cuts next year or maybe hikes. >> hiking twice this year. because oxford economic said next year. >> i'm sorry yeah i guess that's a mistake he made his -- exactly. >> we just -- it's still a greer. we get confused. but it wasn't -- what's

interesting, steve i listened to the panel didn't watch the panel. i didn't realize that powell was reading off a statement when he -- reading off a piece of paper. when he said those words it's almost as if he -- he wrote this statement to come to where the markets are. he did this very, very carefully. >> and deliberately. i think you are right, melissa i think that maybe the chairman has been a little bit off the cuff a little extemporaneous pb ad-lib, ad hoc pick the words, when it comes to the speaking to the markets. you remember the comment he made so controversial, the one about the fed being a long way from neutral was made when he was speaking to essentially a lay audience, not to markets and i think that powell may have learned his lesson here. maybe speaking with more precision. now it's funny, on the balance sheet for example, kind of met the market halfway here. he said, look, we don't think it's a problem now but if we do think it's a

problem then we would not hesitate to change it. previously, in other states remember he said it's on autopilot back in december then the fed's own policy statement, the fomc says they're not altering the balance sheet unless they begin to cut rates sizably. that is an change and important change but only if they judge that the balance sheet runoff as it stands now is a problem. >> you know, it's funny i don't think that powell met the markets in the middle. it seems like powell went all the way to where the markets were effectively putting everything on the table saying that everything is data dependent effectively. they're willing to change their policy stance as conditions warrant. that's data dependent on balance sheet and rates. i mean, that's what it sounds like to me >> right, but see i always thought melissa -- i guess it depends on where you think the fed was and what you heard the fed say previously i always thought rate hikes were data dependent before that the fed was not saying the balance

sheet was. that's when i say sort of halfway. >> right. >> they didn't change in my opinion on the rates part. but it looks like they are about to change. by the way, we are going to need to listen to the committee, whether or not the committee agrees with the new idea that the balance sheet is up for discussion here. >> all right steve, thank you very much steve liesman in atlanta for us. so the question is, now, is the powell put back in the market? is this the all-clear signal to buy stocks once again in guy >> i don't think the market is going up. >> which question both questions. >> i don't think it's the all clear sign and i don't think the fed put is back in place my opinion i didn't think thele s&p was going up 85 handles today. we alluded to the fact that given the turmoil maybe president trump would make a comment about the renewed interest in a deal with china. you sort of got that that was 20% of the rally. but to your point, i think the fed was speaking with the language that the market wanted to hear. that's interesting you talk about autopilot. i mean sometimes -- every plane

you et on the guys and gals in the cockpit flip on autopilot and hang out sometimes there is a little turbless i think there are they're on autopilot in terms of reducing the balance sheet and they should be. in terms of the rates. >> i want to you know we are counting on. >> you you see tim got that. i appreciate that. >> so, look, to me -- today i watched the fed, watched the market reaction and it's impossible for me to believe that this fed is any different today than they were two weeks ago. i totally agree with my friend guy. >> sending a different message. >> they're talking about the balance sheet and the word flexible is important. but if you think the fed put is back in play and it's central bank mania all over again you're getting crushed. because the bottom line is the market needs to understand. >> what do you understand as a fed put before we proceed with the situation that's an important part is the fed put the notion that the fed is watching the markets and economic conditions and will change its stance according to the conditions or is the fed put easy monetary

policy. >> great question to clarify the fed put to me is a fed that is market responsive and market duress and will jump in independent of the call on the economy which is a call based on a couple of things, including labor. and we are highest labor wage gains in over a decade since the crisis it's never been hotter than right now. i realize the labor market is maybe coincident at best but this is what the fed looks at. everybody thinking fed the fed didn't give them what they wanted and frequented out are the same people freaking out today. i think it's somewhere in the middle i do. >> to me, i think he gave a very different message today. >> i think so too. >> the fed, the balance sheet was off the table two weeks ago. i think he was pretty clear. the balance sheet is off the table. i don't think that's the case anymore. however, i wonder how bad does it need to get before any actually stop qt

might be bad it's not' money put. we need downside before the put would kick in. i mean just the action today, you get a lot of things go right, maybe oversold conditions but then you had the data out this morning that was really good but to have the two-day action, have the market essentially be flat, i hate that kind of market i absolutely hate that kind of market it's a riskier market. and i'd rather that -- normally i love to buy when things are down a lot but in this market i wouldn't the want to buy on a day like today. that's scarey to me. to me, though, the number one issue is trade. >> yeah, so the price action over the last few days i think it's disastrous for the bulls. i'm not saying we are seeing a sell i don't have from these points any time soon the byington today was panic if you think about the last few weeks you might have said from december 17th to the lows around christmas or something that that

was panic selling. but when you think about most of 2018 when we had selloffs they were orderly you just don't like to see in panic buying it's not sustainable, right. at the end of the day we know that the earnings will be the most important thing for at least our stock market in the near-term. obviously there is nothing we're getting on trade i agree there is a good conversation about the fed it's a little different from october 3rd. it's different than a few weeks ago. but marginally different the fact that he showed up with prepared remarks and want to be tighter on the messaging i think the tighter they get the better it's going to be but that said, we talked about this last night with the 10-year going the way it has gone with equities over the last few weeks, it's just showing you how fragile the recovery is and showing you how fragile the stock market is. and a dovish fed at this point tells you that they're just not that confident when -- even when they see the jobs data part of the dual mandate this morning. david rosen rk of a lot of

people think he is a perma bear. a lot of things he space is the last few weeks is the it's not good it's backward looking especially when you gain the multiple job workers. it's just not good it's not not good. >> he does take cover with inflation. there is no sign of inflation getting out of control here. given that that's half the dual mandate i think there is flexibility. >> i'm not sure which is the dale taylor the dog. let's be clear lower energy prices are putting deflagsary forces the at least on the headline inflation maybe not the core the european -- euro zone printed minus.4 on the ppi i realize there is volatility in the numbers. but the good news for the market is that, look with, for the better part of the last decade we've been waiting for inflation to appear. on some level we'd like that to be clear i'd like an inflation rather than growth skarp. the markets would as well. we want to see some inflation.

at some level you want the fed to be front footed not back footed but you want the fed not to overreact if today gets the market to a place where i think they were psychologically of the view that this fed was going to be robotic and autopilot and whatever you want to call it and not thoughtful, and not truly data dependent. then that's an important part of what happened today. >> i think the other acknowledgement that came very clear was that powell said that he would monitor the markets the markets were an input in this thing. >> no you're right he said. >> as we enter warning season we got it with apple as we enter earnings season you want to know they're looking at conference calls, talking to people, they're listening to what the markets are saying at least that they -- they hear it it is part of the data of being data dependent. >> i agree and my pushback would be we've conditioned corporate marc -- dan my disagree with me over the last eight or nine years so used to rates being where they're any move in rates they can't cope.

i mean, you know you have to get a point. >> it may be china, though i mean what was apple? apple wasn't rates apple. >> you mentioned that corporates can't deal with the rate increases. you know, the talk about this corporate debt bond, the refinancing, over $1 trillion in corporate debt next year we haven't gotten to see how corporate deals with that because they had the huge borrowing binge. we haven't seen that yet that's coming in 2019. >> that's the lazy part. when money is cheap and all you do instead of focuseding on the business and trying to have a five-year plan you just buy back stock and increasing the dividend that's not doing anybody good that's maybe great for the stock market but in my opinion one of the many unintended consequences of the past fed has made corporate america lazy. >> funnily enough apple encapsulates both the problems, the laziness of the financial engineering buying back stocks

spending 63 billion buying back stock. >> in a leveraged situation. >> not at all. but they could have invested elsewhere. >> they had enough to do both. >> they could have tahoe. >> they did and they could have. they have enough to do both. but guy makes an interesting point often. >> only. >> rarely but often. >> do you want to hear it or are you excited. >> i'd love to. >> of course he is. >> enough to know it's a good point. >> that markets cause a recession or recession cause markets to sell off? to the extent that the fed looks at markets how they react, maybe they believe there is some element of markets causing a recession. i believe there is something to that ceos are human, get scared they sort of want to pull back spending >> yes coming up, new year, new market, stocks up 8% from the december lows you won't believe which names lead the charge. plus this semi stock has been hanging tough amid the market selloff in wall street is warming up to the name and so is one of the traders and later housing stocks have

been demolished nearly cut in half since the 52-week highs a year ago and could be worse for the names. we will explain. live from the nasdaq market tesi in times square. much for "fast money" right after this with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. (sounds of race cars) the same iot technology on the ibm cloud that helps race teams improve performance and safety. bye. girls, don't wave at strangers. can now be built into everything we drive. when you apply expertise across an industry, bye! you can put smart to work.

when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

fidelity. xfinity mobile is a designed to save you money. even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that automatically connects you to the most wifi hotspots in millions of places and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $200 back when you when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. welcome back to fast we have a market flash on germ electric the stock up 4%. apollo considering a bid for the jet leasing unit could be worth $40 billion. the stock making a comeback.

up 18% since the market lows in december tim you are in it what do you think. >> the expediency or urgency with which they seem to move the balance sheet is important this is a company we thought it can't happen quickly now maybe with this restructuring program in place -- and maybe more than we expected for the assets, then technical factors i think a lot of people believe for the tax loss selling for all that people talk about this, if there is one story where you could attach that it probably is ge if you look at where the selling pressure was and really positioning is right now, it's very, very flat in this name >> would you be looking around ge. >> i have some leaps out of the money now. i like the story in that the risk reward is interesting you buy the leaps you know what you can risk or lose but if they're able to get the leverage under control and the equity gets value.

the stock is high. good for them moving with haste. >> speaking of come bangors markets in rally mode with all tlie indices, going parabolic as a number of big names stocks lead the charge higher shares of netflix and newfield exploration both up more than 20%. while the aforementioned ge and mgm up 18% and chipotle and kohls up. time to play trade it or fade it you know how it works. >> please start with tim. >> we start with guy and netflix. guy, trade it or fade it. >> you know, i'm going right out of the chute and say trade it. they're going to yell at mimi. i hear where it's coming but i tell tu feels like the short-term at least put in a bottom you had a decent volume capitulation about a week and a half two weeks ago although in a significant downtrend there is still 8 to

10% on the upside you trade it into earnings release. >> it traded well yesterday then goldman put it on the conviction buy list which accounts for the gain. >> a note from sun trust questioning what subadds may loobl and then obviously focused on the content spend going to be $16 billion. it's difficult story as we talk about credit they are very dependent right on the credit markets high-yield credit markets to fund the expansion i'm fading it here. >> oh. >> i think you got to be careful taking the controversial names into earnings. >> this is t>> next up is karen. kohls. trade it or fade t, karin. >> i'm going to trade it i just think it's over -- cheap to itself. it's cheap to the market

i -- >> wow what an reaction. >> it's kohls. >> as a risk reward it's compelling you like at things like the data today. that's good for kohls, the american consumer is out there and employed and getting more -- higher in wages. i don't know, i think put that altogether it's better than fade it i would trade it. >> you know, alling the grunts and growns were all about fading it i think the entire sector is under so much pressure they have labor costs. they have competitive forces they are all killing each other every day. you fade this thing not because of the global kme. you fade it because of the seccer >> dan is up next and chipotle is the name. cmg. >> i thought i had no opinion on this at this point i don't find some of the rallies that impressive when you look at chipotlele rally off the low. again this is a controversial name it's been a very volatile name i just don't see it. i'm fade going here, yeah.

>> never got supercheap. >> you're right. >> you would fade it too how about you guy. >> i like qdob as you no zblee extra chicken. >> no beans. >> medium salsa. >> how does your system handle that. >> not particularly well but i -- i do what i have to do. >> trade the burrito. >> since everybody fades it i'll say look can you still see another 5% or 6% on the upside but i'm in their camp. but it's still expensive rather fade. >> mgm, tim, trade or fade. >> this is controversial for me i'm trading this i think the pressure coming from the gamers when whether they deserve that mgm has the exposure i think the worst is over on this and we are seeing it turn but the valuations make it interesting. >> coming up apple getting smashed this week but if you owned it don't worry we tell you how to get the money back

without spending a dime. >> on this show. >> no. shh. i'm membersa lee watching "fast money" on cnbc worldwide. >> there is no place like home there is no place like home. >> well, actually, dorothy, home builders have been getting demolished this year and it could be about to get worse for two names. plus ♪ you ain't nothing but a hound dog. >> the dogs of the dow left in the dust but the chart master says the classic theory is about to make a comeback he will explain. much more "fast money" right after this is number one in the nation? sure, they probably know what they're talking about. or the one that j.d. power says is highest in network quality by people who use it every day? this is a tough one. well, not really, because verizon won both. so you don't even have to choose. why didn't you just lead with that? it's like a fun thing. (vo) chosen by experts. chosen by you. get six months apple music on us.

it's the unlimited plan you need on the network you deserve. now buy the latest galaxy phones, get galaxy s9 free.

welcome back to "fast money. housing stocks getting demolished the xhp home builders etf down almost 30% in the past year. kb home and lennar down more than 40% off the 52-week highs hit in january last year home home builds report earnings

next week are these names a no touch, tim. >> i'll tell what you happening right now for the housing sector before rates with -- before today people were excited with about refinancing and mortgage rates that is something the sector could use structurally the home builders have issues. not related to 2008. not balance sheet issues it's the housing afford ability complex and still issues for people. >> seasonally we are going into a strong period. i know tom lee a friend of the show fund saturate had data about home builders about a month ago from late october to mid-to late april. the sector over the last 20 years averaged rallies about 20% or so. they haven't anticipated participated thp they haven't made new 52-week lows deep ner the year and settle on the rate front in group starts to work. >> you have hope. >> i'm trying to be contrarian. >> it was one of the first sectors that went bust last

year. >> great when dan has hope. >> it's so rare. it's so rare that it's really noteworthy when it happens. >> it's like -- remember we used to talk about green shoots >> new beginnings. >> that was in 2011 and 2011. >> it was "fast money" classic guy. >> i don't have as much hope poly homes has gone to 22.5 in the last couple weeks. maybe you saw the move there dan. >> tim final trade. >> the xrt outperformed since the skrm lows in i think the retailers are gichgt you strong christmas eve numbers. go there. >> chairwoman. >> i think this cbs rate is throw low and i would not be surprised to see a deal here. >> intel interesting upgrade from merrill lynch. >> that's a tease. >> tease your snow. >> l.a. is my favorite. >> it comes in a few minutes. >> you might want to spin my

graphic. i'm a huge oa. i love. >> anadarko. >> back here monday at 5:00. for more fast, don't move, "options action" starts right after this always wants to hang . and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

gsz haley live at the nasdaq market site on the first show of the glory. the guys getting ready behind me and while they're doing that here is what's coming up. >> as we look as what's going on in china, it's clear the economy began to slow. >> it was the words to spoke to apple investors this week. but if you lost money, relax because mike khouw has a way to make it back for free. he will explain. plus. >> give me one good piece of intel and it ain't right here. >> chill out