you can have growth in at least the top two or three players i think with smart tvs and everybody views these as make your own bundle, there might be some running room for i think all of them to gather some. >> tomorrow minutes, powell. >> fed minutes, yeah. >> so back to the fed focus. >> if the rally continues. >> it's been a good day here on wall street. more discussion coming up. "fast money" begins right now. "fast money starts right now, live from the nasdaq market site overlooking times square. tonight on "fast" stocks higher once again today, but the wall street strategist who called the market sell-off says we are not in the clear yet. plus, bank stocks sitting out the rally today and a top technician says there is more pain to come for the group we will explain. first, we start off with apple the tech giant jumping, up with 2% today as ceo tim cook said the headwinds the company is dealing with are just temporary.

>> i'm never surprised bythe market, to be honest with you, because i think the market is quite emotional in the short term and we sort of look through all of that. we think about the long term and so when i look at the long term health of the company, it has never been better. the product pipeline has never been better. the ecosystem has never been stronger the services are on a tear >> apple has now cut its losses in half since the earnings warning heard round the world last week. the stock is down 35% from its 52-week highs. so in the words of taylor swift -- >> is that what this is? >> yeah. is the stock out of the woods yet? >> i'm listening was she singing that >> yes >> nice. >> it was. >> did you see the taylor swift thing at the golden globes it was very endearing. >> we can save that for later in

the show and discuss apple if that's all right with you. >> i don't think apple is out of the woods. i think apple got bailed out by a stock market that's rallied since christmas eve. if you look at skyworks, they just preannounced lower as well. so the fact that it's bounced is probably a good thing, but i do think it's destined to trade back at the levels that we topped out in in the middle of 2015, 128.5, 129 everything tim cook said is probably drew, but the bottom line is $1,000 phones. maybe they put themselves in a position where they actually didn't, like we talked about last night, maybe they don't have the pricing power that they thought they had. >> right >> i tell you what, listening to tim cook at some level gives me a lot of confidence. at another level when i hear him say the product pipeline has never been better, i wonder. in fact the pipeline has never been fuller. we've got more models, more skus than we ever had with apple which i think might be confusing consumers right now. i don't think investors are

terribly confused. i think investors believe this is a great company who's not facing kind of existential threats to their core business but that the iphone is still the major part of the story here and they're not going to grow the next couple of years i'm a shareholder. i'm not happy with this guidance i worry about the company's credibility with investors on giving that guide. >> i disagree. >> well, just to follow, haters are going to hate hate hate this one, right >> nice. >> save that for later in the show, though. >> i am long on apple, everything that tim has said is china as long as he said? given that he is long term and i absolutely belief that, why react to what the stock is doing in the very short term i don't know why he he feels the need to do that. >> he's saying we don't care about the short term, we only care about the long term. >> it will be interesting to see how much stock they are out

there buying we'll find that out next quarter. but i think at this price, though, it is not pricing in, wow, this is the best that apple has ever had it. >> no. >> so i think -- >> for a guy who says he doesn't care about the long term, he's been doing an awful lot of tv interviews the way that they handled changing their guidance, the way that they guided down, they have a credibility problem. it's going to take some time to work through that. i don't think you necessarily get hurt if you own apple here it's priced in a lot of stuff. but where's the growth going to come from? why is this a growth company and why should it get a growth multiple it shouldn't and it's going to take a couple of quarters to work through this. that's what it would take for this thing to really rally. >> let's stop beating up on apple. samsung came out and basically said the exact same thing as apple. they used to be the largest

smartphone company in the world. they guided down more than apple gave us. maybe we overfed ourselves not only on the holidays with whatever we might have but also with smartphones over the last couple of years. samsung to me is more concerning that's a cyclical call and a secular call. >> it could be a technology issue. we spoke to steve today on "power lunch" and he was saying these days people don't feel the need to upgrade. the technology is great. there are a lot of things that are great. when it comes to a.i., a.r., all these buzz words, it's not causing any consumers to rush out and buy new gadgets. people are holding on to their phones for longer. you spent $1,000 for a phone, you're going to hold on to it a little bit longer. this is happening across technology we're focusing on apple because they just recently guided. >> and maybe one of the reasons -- obviously the tape helped today, but maybe because of the reason apple is higher is because of samsung

to your secular call, i mean if everything is going that way, then it is an apple story as well so listen, the tape has helped without question the stock went basically in a straight line from 225 down to, what, 140ish or so and bounced the bounce was due i still think there's another leg lower. i think that takes us to 138. >> here's a plot twist skyworks, apple's supplier took down its guidance. the stock, what's it doing it's up 2%. >> yeah. so as a trader that's what they call a tell. in that you have bad news, good price action probably means most of it is priced into skyworks certainly, maybe the whole sector, so maybe apple. what else is going to come out we've priced the worst in. maybe there's going to be a rebound. that's why i don't think you get necessarily hurt in apple or skyworks at this point >> the night of the apple news we did a two-hour show skyworks was one of the first names we mentioned

we specifically said you're going to have to see some sort of preannouncement out of sky works. we had that conversation the stock was trading 68 or so at the time. if you look, it traded down to 61 within four or five trading days so this bounce doesn't even get us back to the level that we saw that night i think it's exactly that, a bounce i think this will roll over as well. >> everyone should preannounce who needs to. >> absolutely. get out the door now. >> absolutely. >> some of these guys actually, they front ran apple some of the suppliers. that's the whole story really on these guys the report after the bell tells you there's a bit of a cyber leave on a bunch of these players. i'd just point out, i think the market only goes as far as the semis can bounce off these lows. right now look at the smh. somewhere around 88, 89 is where you run into the top of what has been a downtrend since july. so they have not rallied as much as the rest of the market, even in a market that's shown tremendous breadth and i think we -- again, i think

we gorged on a lot of chips, a lot of semis and a lot of new tech in 2018. >> yeah. i agree with that. this market is going to be driven by the semis and by some of the larger tech names because that's the names that drove it forward. once you start losing those again, because you saw it at the last peak, losing those one by one, that's when you need to be worried about the market rolling over again. >> apple may seem like it's in the clear for now, but it's not time to give the all clear to the market just yet. let's bring in mike wilson, the chief strategist at morgan stanley. mike, great to have you back. >> one of the few strategists that doesn't have to come on our show and downgrade hismarket because we haven't done that. >> good for you. >> why not the all clear at this point? didn't powell give you exactly what you wanted to hear from the federal reserve? >> let's talk about the setup. we thought we'd get to 2400 this year we didn't think we'd do it all in december.

so the market did kind of get to our target more quickly than we thought. we thought the market would want to see the news come out, apple, skyworks, and there's going to be more of that coming so valuation, we met our goal. we also met our goal in terms of sentiment and positioning. it's really bearish, as bearish as we've seen. what we don't have yet is the fundamental picture is still messy. so all the things that we've been worried about all year are now starting to come to the fore while apple maybe isn't a surprise that they missed, the magnitude of it was a surprise while skyworks isn't a surprise, that's not necessarily good news we'll see how it trades tomorrow our view is that the rolling bear market that happened last year is now going to be a rolling bottom not everything will bottom at the same time. my guess is it's first in, first out. the stuff that led us in will probably lead us out apple is one of the ones that fell at the end. it's probably not going to lead us out skyworks, semi conductors, home

builders, maybe the banks, some of the early cycle stocks probably is what's going to lead an that's what's been working year to date early that's what we've got to be looking for is what's leading us out. i think it's going to be the early cycle stuff. >> when you talk about fund mentals, for you what are fundamentals is it fed, is it trade, is it growth >> ultimately it's earnings. are we going to have accelerated earnings growth. when is earnings growth going to bottom the two things i'm most focused on is earnings breadth in 2016 which was the last time we had an earnings recession without an economic one, it went to negative 20 tim and i were chatting before the show i don't see how the earnings revision trajectory will turn up any time soon. it's going to continue to be negative it's very difficult for the market t.o.o have a sustainable rally until that happens

last year financial conditions were tightening. powell gave us an all clear in terms that he's now paying attention to the balance sheet and things we've been talking about, but they haven't done anything so talking about it. talk is cheap. talking about it is one thing. actually changing the behavior is what needs to happen. they need to stop the balance sheet reduction and they need to probably stop hiking rates for us to have a sustainable round the further we move away from 2500 upwards, the chance of that happening goes down, not up. >> so i'm curious then, what you're talking about, slowing global growth. so if the fed does make those moves, let's say they cut like some people are talking about, does that change your view >> yeah, but they're not going to be cutting any time soon. our view is that they will pause this year on the rate hikes. i think they have to start tapering qt so it's a reversal of qe. i don't know what the timetable is on that that will give us some breathing room for sure and will be very constructive but we're still ending of cycl.

so we can only go so far the reality is the market has been very good at pricing in a lot of the concerns that we've had. we're in a bear market everything is down 20%, 25%. typically when you have the damage that we've had, we have massive overhead resistance. so the fourth thing we're looking at is technicals the two-day moving average has turned down. my guess is we're going to play ping pong between the two. >> so in terms of investing in some of these first in sectors, is it too early to do that at this point are you sort of wait and see or go in on home builders, go in on semis >> we skew towards value, not that they're better companies but priced a lot more. it started out with a defensive rotation and now it's turning to cyclical parts of the market home builders, machinery, banks, some of the energy stocks for sure yeah, we're looking into those things now

from a price standpoint, we're close enough. >> mike, thanks. good to see you. mike wilson, morgan stanley. >> you said something interesting -- you always say something interesting. >> it is rare, but -- >> you listened to the powell interview on the radio so you didn't realize that he was reading from what appeared to be a script he was absolutely reading from something. >> he was reading from a piece of paper. >> in my opinion he made sure he didn't miss. but it's like you tell your parents, i'll never do it again and your parents believe you for a whole and you continue to do it i think they're going to continue to whittle down this balance sheet until the market calls them out again, at which time they'll talk about being not on auto pilot. i think that will continue for the foreseeable future. >> so that means the market has more room lower. >> i believe so, yeah. >> the thing the market has missed with last week's talk with bernanke, yellen and powell, they talked about this thing called price level

targeting. basically what it means is you run the economy hotter than you would normally expect to get your prices up now, they're going to have a conference in june i would expect in the minutes tomorrow, maybe there's more talk about that. but if that narrative picks up, then you get a steeper yield curve, then you get a market that rips. >> i may be a bad guy and i don't think guy agrees with this, but i think they do need to run it hotter we came from the worst credit crisis in history arguably and a cancer that needs to be cut out and arguably was not and takes some time. look at japan who is still struggling with all of this. deflation is really the devil right now, not inflation we'd like to have inflation. if your new year's resolution is to say the fed is my friend in 2019, i don't think so their balance sheet is only 11% less than where it started on qt so they haven't done all that much heavy lifting and there's a lot to go. >> of course you want to stick around with the full interview of tim cook and jim cramer, 6:00

p.m. on "mad money." out there somewhere, mark zuckerberg is smiling because facebook is soaring. is it finally safe to buy the stock again? it's been a bank blood bath. we'll hear the one name he thinks will be a disaster. much more "fast money" right after this otmetricy 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. facebook rallying today on a note from jpmorgan, calling for a monster 38% surge to $195 a share. the stock is now up 16% from the december lows. is it finally safe to buy this stock again, tim >> well, it doesn't surprise me. good for jpmorgan for getting out there and making a call and a best idea. there's a valuation argument for facebook if you believe their old numbers. but they talk about 40% op ex growth i think that's understating it the big problem with this company is they can't basically determine their cost of goods sold if their widget is data and they're producing this and can't tell you what it's going to cos to secure that data, help the people at home remain confident in that platform, they have big problems that's why this company trades at a multiple that's contracting. it doesn't mean revenue growth woe won't be mid-20%

but i think they suffer from perception risk, corporate government risk and that's a reason to keep a company under wraps. >> you think none of that -- you think there's no perception risk priced in, there's no regulation risk priced in, there's no expense risk priced in that seems impossible to me. >> i think a lot is priced in but we haven't seen the proper fallout from the platform. i get the fact instagram is growing. i think the jury is very much out on this. >> but the stock -- the stock has -- it's two different things look at skyworks, right? crappy numbers, stock is up. at some point i think you're going to see what you were going to call bad news as no longer being bad news anymore that people think, look, this is priced in. it's so washed out it's still an extraordinary cash generator. i mean the metrics here, especially if you back out the cash, the multiple is really on sale, very heavily discounted

with all that bad news. >> i can't argue there's not a lot of bad news priced in here that's why the stock has done what it's done before this company was perceived to be as bad, i think the bad news was -- i think the stock was pricing it in before then. >> i think maybe the point you're getting at is a lot of bad news is priced in the stock but how do you have a handle on the degree of magnitude of that bad news in terms of how much facebook will have to spend for regulation and are you comfortable with that unknown in terms of pricing something in. >> i am comfortable with it. it hasn't been right but i am a long-term holder here. i don't know that it will be this quarter they fully get their arms around it, but i think the street is way too negative on them. >> what do you think, gentlemen? >> well, for me, i think -- it's an interesting call. they're talking about having the user base being stickier than the street thinks about but 195 price target is a bridge too far

for bk i can see this getting to 160 on some rebound that all the bad news is priced in, but i don't think it gets as high as they say. >> i think the rebound gets you to where and when in march when zuckerberg testified, i think the stock traded at 152 or so so maybe that's your upside tim has been on this for a while. we talked a few weeks ago when the stock was 136. i don't see any compelling reason to get ahead of thi ahead of earnings on the 30th. it's been two quarters in a row where they have thrown the market a curveball you have to believe they'll come out swinging this time i just don't believe that. >> for more on facebook, head on over to cnbc.com i'm melissa lee. you're watching "fast money" on cnbc here's what's coming up on the show. >> guys, relax this is just the calm before the storm. >> the earnings storm is coming. and the banks could be the first bolt to strike a top technician will be here to

explain just how ugly things could get. plus, housing starts have been getting crushed traders are betting it might be about to get even worse. we will exaipln. there's much more "fast money" right after this , aturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

welcome back to "fast money. goldman cutting its forecast for the 10-year yield saying we may have already seen peak rates in the cycle. bob pisani is town at the nyse with all the details. >> hello, melissa. goldman had a report out revising down. they said a poor risk sentiment and tighter financial conditions, all that has led markets to reconsider how far farther central banks can raise rates globally you put it altogether and goldman believes 10-year yields have peaked. they have revised their yield forecast downward right across

the globe. so the most important revision is right here in the united states where they have downgraded their outlook in general. the forecast is now 3% yield for the 10-year by the fourth quarter. that's 50 basis points lower than the old forecast of 3.5%. they dropped in canada 2.4% lower by 50, 60 basis points than the old 3% forecast there's more modest revisions elsewhere. germany, the uk, in japan. germany's case, the downward revision is only 15 basis points lower to 0.65% why the modest downward revisions in europe? the ample supply of bonds and end of bond purchases by the european central bank all limit how far yields can move down while goldman continues to expect the yield curve to fla t flatten, they do not expect the 530 curve to fully flatten so some very interesting

comments from goldman. back to you. >> thank you, bob. financials will face the music next week as earnings kick off and our next guest says it's going to get ugly out there. let's bring in todd gordon who has more. >> first this setup, the current environment where financials are a major headwind to any recovery let's look at the 10-year yield and xlf in blue. traditional global macro relationships would say bonds or bond yields relieve stocks xlf in blue you see bottom to first. then move up same thing up here at the top, we had xlf topping and then yields beginning to top, moving lower. personally, i think yields continue to push down in a risk off safe haven kind of trade i think this underperformance in the financials continues as we look at the xlf in isolation here, we can see that we have a serious period of

underperformance here. financials continue to be a major weight on this market. we have a huge 2017-18 shelf here we've got a line here, a line here there's a lot of wood to chop from all lows, which were formally support, now acting resistance on top of it, that purple line is the 50-period m.a when you get a confluence of technical levels coming together, it adds extra conviction to the trade. i think 25 will be very significant heading into earnings starting on the 14th. jp arguably the strongest financial out there. that same kind of concept of a broken shelf of support that should have held, didn't, broke, now offers resistance is right around hereat about the 103, 104 level. again, one of the strongest financials out there, but again, 50 m.a. matches up with this old support. anybody who's got long here would be happy to get out at break even creating that

synthetic resistance level so earnings better be pretty strong if we're going to continue to squeeze on up. me, i'm personally short the market, nervously short and financials are helping that trade on the downside. >> you're short the overall s&p 500? >> i'm short the overall s&p if we start to get any more strength, i'll cut that. i'm long the market longer term but my shorter term trading accounts, i'm short with the options market, nervously short. technology is moving up, faang is moving up is that a recovery story i don't know but i think that's a major story. >> todd, good to see you, thanks an interesting call in terms of jpmorgan, we had jeffries downgrading the stock to a hold rating basically saying it's going to be an outperformer in its group because the earnings revisions for its peers will be worse. it's not a ringing endorsement for jp's outperformance of the group, karen. >> yeah.

i love jpmorgan, it clear low has be -- clearly has been a great place to be. the yield is north of 3. think about that, the premiere name, pristine balance sheet, extraordinary business, right. to be able to buy it at this price, i think the risk/reward is very compelling here. >> jpmorgan was my compelling stock yesterday. i say this about financials. easy to attack them, they have underperformed the s&p from last february to the lows by about 11.5%. during this period where yields have been plummeting and they have rallied back the last couple of day, but the banks outperformed the s&p from mid-december to this point that tells you something about where they could outperform now. >> i love the banks there. >> you're not joking >> no, i really love the banks. >> what does bk think? >> he loves them too he'll buy them twice

but i think we're at the early stages fed changing monetary policy they do not want a flat yield curve. so they're going to change their policy so the yield curve steepens and that's going to be fantastic for banks. i like them, especially the ones trading below book value. >> one of them is significantly below tangible book is citi. tangible book was $61.91 now it's trading with a $55 handle the banks are trying to tell you something. we're not at financial crisis levels, but citi trading where it is, goldman sachs trading where it is, it's telling you things aren't as rosy as they seem at what point does it price so out of sync with the rest of the space. that's the question to me. >> i'm not as focused on price to tangible book as i am to earnings so to me, citi at one point i thought had more upside.

>> in a global economy, that kind of a thing? >> just there was price cheaper. now the yield is about the same to have jpmorgan at 10 times and citi at 8.5 times isn't quite enough -- that discount isn't enough to overcome the premium valuation that jpm deserves. coming up, this stock is soaring off its recent lows but one of the traders says not to trust the rally. we'll give you the name and tell you what has them so worried. plus, we're 18 days into the government shutdown as america waits for the president to address the nation tonight would the shutdown showdown about to wreak havoc on the 'lrk wel have a special report when "fast money" returns more teched out than silicon valley? with a cockpit fit for aspaceship. hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary?

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welcome back the u.s. government is mired in the middle of its second longest shut downin history and the fallout could be about to wreak havoc on the markets steve liesman is back at headquarters with the lowdown. hey, steve. >> trying to figure out what it means for the u.s. economy the 800,000 workers are unlikely to get a paycheck this week. let's scale up from small to large here it's potentially devastating for individuals and their families who can't afford sometimes basic stuff. troubling for the businesses and communities that rely on the spending of the furloughed workers. but small at at least for a time manageable for the u.s. economy. it's as if the entire city of milwaukee didn't get a paycheck for at least two weeks but the effects of that,unlike say the effects of a natural

disaster there, spread out they hit d.c. area the hardest and other places less so more so there's no actual disaster and people might eventually get paid. economists estimate the shutdown costs the u.s. economy around 0.1% percentage points of gdp each week it goes on in the current quarter. some of the spending is lost forever. but the income comes back and so will some of that spending the economy should recoup most of the losses in the following quarter. that's if the shutdown ends. mark zandy writes anything beyond march likely mean the political dysfunction in washington is intensified and likely undermining businesses and consumer confidence. just how much economic damage it is doing will depend on the circumstances. and that's really the problem, guys, with these numerical exercises of economists. the numbers don't often add up to much initially. when you consider the x factors like the affect on confidence, the cost of the shutdown rises

and ends up being costlier than it first appears >> karen has a question for you, steve. >> can you describe a little more fully how much of that you get back let's say they come to a deal in the next few days of that 0.1. >> the initial idea is it's one for one. i don't actually believe that because i think about the idea that, for example, this is a bad one for me but let's say i needed a haircut, which i don't often do, right? and i missed my haircut because i didn't have money for it i probably wouldn't do two hair cuts i'd do one say a trip to the nail salon or discretionary items. a mortgage that's not paid will eventually get paid. a doctor's visit, some of that is discretionary so if you were going to go out to the mall on the weekend and spend a little money, well, if you didn't have that money that weekend, you may not go out to the mall who's to say whether next month you go out and spend that money.

so i think some of it is lost forever because you don't ever get back the time that you had the money in that pocket. >> there are so many examples beyond haircut although that's vivid in your case. >> thank you for underlining that, melissa, and highlighting that and spotlighting that. >> out to dinner -- >> i could have used that. >> you can borrow it all you want, steve. >> the market seems to be sang win, okay right now but i think if it drags on, it undermines -- the economists yoz that same figure for trade and tariffs i think people think it's worse because of the tensions and some of the issues that are out there. >> steve, thank you. >> pleasure. >> steve liesman back at he headquarte headquarters there's also a staggering stat from zillow $435 million in mortgage payments and rents that will be owed by unfade fpaid federal wos this month. >> those are the type of things that make you think this won't go on that long. i think we have a window of

opportunity where this shutdown could be over this week. i think that trump's speech tonight about the border sets up calling it an emergency, a national emergency, he gets his money, shutdown is over. i think that's very positive >> here's what i take away from steve's comments people obviously don't have the money to spend if this lasts a long time, people say i don't really miss spending that money and maybe tha they'll change their spending habits maybe you realize maybe i don't need that starbucks. >> you need that windfall check that is bigger than you've seen in a while i think you'll probably spending it. >> i'm just tossing it up. >> i think the exercise was to point out where confidence in the business community has been shattered. we went from record consumer confidence we certainly went from record small business confidence to a place where actually it's contracting aggressively you have a dynamic where in other parts of the world even

it's happening >> because of the shutdown or because of the prolonged -- >> because of the trade tariff to be clear. you almost get the sense they feel like they can stuff this shutdown in the middle of all this other shutdown in terms of business confidence because otherwise it would be very difficult to explain even though both sides can line up very evenly on this one and say we're totally right. but this is -- i am surprised that this shutdown has gone this long with more people not screaming outrage on either side of the aisle right up the middle, which is that this is absurd this is actually to me pretty arrogant. >> the fact that the government is going to issue irs tax refund checks in a timely fashion, that certainly removes some of the pressure at least the congress people will feel people will still get their refund checks and still get their money to spend on a latte or a haircut and all is fine but when congress gets phone calls, they start getting phone calls from the district, that's when it's going to start to really intensify

>> you help steve out a lot with the out to dinner. >> steve, use that example all you want forget about the haircut. still ahead, housing stocks have been on a tear to start the year, but some traders are betting one name in the ac ulgewrecked. we've got all the details. much more "fast" after this. ans. dealing with millions of customers a year, like this one. no, i'm pretty sure i didn't order a squirrel playing a guitar. that's why you work with watson. it works with your systems to resolve calls faster and improve customer satisfaction. i detected fraud and helped reassign a new credit card. honey, they're overnighting us a new card. woooo!!! woooo!!! for ai that works with tools you already use, choose watson. hello! the best ai for the job.

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it has been a hot start for the year for the home builders option traders think earnings results might put a halt to the

rally. mike has the action in san francisco. mike. >> yeah, so we did see basically much higher than usual implied moves going into earnings for lennar and kb homes. they are a 6% move, kb home is implying about a 9% move, also about double what it typically sees, about 5% both of them saw well above average put volume lennar traded 4 times the average put volume, kb homes double the average put volume. the january 20 puts we saw buyers paying 60 cents they are making bearish bets that it's going to fall below that strike price. that would be down 8.5% just to break even given the 9% implied move one can assume they are expecting it to be to the downside also in lennar homes, we did see some hedging trades, thousand

lot put spread risk reversal somebody is protecting 100,000 shares of lennar but giving themselves up to 50 if that should in fact go a little bit higher than earnings. >> what do you think of the home builders, karen? >> i like the backdrop that you have a lot of people employed and rates coming down, but there's so many idiosyncratic issues trying to find good labor to build the homes appearnd some oe tariff issues. >> and supply. >> and i want to be where there's retail and home, so home depot and lowe's actually i several months ago liked lowe's better, but now i think home depot is the way to go at the same p.e., i think it's a superior company and it's come in a very long way. >> home depot reports february 23rd i agree. people will point to the home builders and say on valuation they're cheap. that is true but a lot of these have negative earnings growth. a lot of them had significant moves from the bottom.

so, yeah, maybe you'll get a spike after earnings i don't think you will i inclination is to fade these things instead of trade them see what i did there i sorta played the game. >> i'm a fader too, by the way i fade these i happen to think rates are going high are so it's not good for the home builders. plus all the issues that they have with supply, with labor, all of that. i'm a seller. >> lowe's up 16% against the s&p as rates are coming down and i think a slower economy is very good for home improvement. >> mike, thanks for that check out the full show friday 5:30 p.m. eastern time. coming up, julia boorstin will silt down with sir martin sorrell to talk facebook to the changing ad landscape right after this break we're live at the nasdaq in times square much more "fast" still ahead so lionel, what does being able to trade 24/5 mean to you? well, it means i can trade after the market closes. it's true. so all...

evening long. ooh, so close. 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?

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amazon prime video so when you say words like... show me best of prime video into this... you'll see awesome stuff like this. discover prime originals like the emmy-winning the marvelous mrs. maisel... tom clancy's jack ryan... and the man in the high castle. all in the same place as your live tv. its all included with your amazon prime membership. that's how xfinity makes tv... simple. easy. awesome. welcome back the world's biggest annual tech show, ces, under way at the las vegas convention center featuring the next big developments taking place in the tech industry and that includes how many of these technologies could impact the ad space going forward. julia boorstin is on site with sir martin sorrell for her first

on cnbc interview. take it away. >> i appreciate it sir martin, thank you for joining us here today. >> good to be here. >> this is your first interview on cnbc. >> the first invitation. >> since you were pushed out as ceo. >> or resigned technically. >> technically resigned or pushed out it came in the wake of an internal probe of misuse of corporate funds as well as personal misconduct. how do you address those allegations. >> do you remember what happened, julia? >> apparently -- >> there was an investigation and nothing was found. and i resigned as a, what, a good leader. >> but there have been no reports saying that nothing was found. where does it say nothing was found? >> the company said that the release by the company at the end said that. nothing material was found. >> nothing material. but this has still been a period of great scandal and controversy. >> there's been great change, let's put it like that we've started s-4 capital in may

of last year we made two acquisitions in identifying three areas that we thought were important first party data, driving -- the development of digital content and media content and programat programatic. we're in 12 countries, 1200 employees. small. i compared it to a peanut or coconut. small in relation, say, to the big six in the advertising industry but in three of the fastest growing areas. >> you've raised nearly $500 million. >> right. >> was it a challenge to regain the trust of investors in the wake of those scandals >> i think the two fund raisings went well. we had an initial fund-raising where we got together a group of investors in the uk and funded one immediately after that then we closed mighty hive on christmas eve. we've got a very good offer in

the digital area that's about $200 billion of the trillion in our industry $500 billion in old stuff and $500 billion in new stuff, so i think we're very well positioned here at ces we've seen a lot of interest from clients who are involved on serious change and experimentation. >> but this is a very crowded space and many people have asked, especially when you look at the fact that wpp's stock price is down 50% in the past two years why you would get back into this business and try to take on your old company >> it's not a question of taking on our old company we're $150 million of revenue and they're $20 billion, so that's why i can make the comparison to a peanut or coconut or david and goliath or whatever analogy you want. what we're interested in is the high growth areas. i remember a study by mckenzie many years ago the reasons for success are companies not so much focused on constant cost reduction, which is highly relevant in today's

environment, but really focused on revenue and revenue growth. that's where the key is. it's not cutting cost and cutting back, it's positioning the portfolio or the operation which you're running in the high growth areas. >> in terms of the landscape right now, do you think that facebook will suffer from the year of negative headlines >> i haven't seen it there's a lot of press commentary, media commentary facebook, the loss on the facebook swing is the gape on the instagram roundabout what we've seen is clients switching some spending from facebook to instagram. they also have whatsapp and messenger as well. but essentially i think facebook actually has done quite well in a very difficult environment as you well know, there are really only three alternatives, amazon, facebook and google. >> so do you think there is a good alternative to facebook right now? is it amazon >> the pressure from amazon will come on the advertising area and search area. that's very much focused on google and facebook.

google on search and google and facebook on social so there will be a big battle. the ad revenues of google in '17 were $17 facebook, maybe 50, 55 last year amazon is $10 billion but it's move up very quickly the amazon people are very focused and very didn't. google and facebook are well aware of this. facebook has all the issues around safety and brand and privacy. but to give them credit and they employ 30,000 people now to monitor editorial comments they have almost a media company now. >> so giving facebook credit as a media company and amazon is the one to watch in the ad space. >> google will remain strong along with alibaba and tencent. up next, we're digging deep, very deep into the archives and aseaking out one of our classic "ft money" games right after

this break stay tuned duncan just protected his family

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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. it's throwback tuesday here on "fast" with one of our classic "fast money" games, pops an drops do you remember that an oldie but goody a pop for boeing at the mover for 4%. >> i think too far too fast on the upside i'll sell it here. >> i don't know why, it was up yesterday for no great reach pop and a drop. >> mattel popping 5%

tim. >> boy, this stock needed some pop. i tell you what, this stock is probably short covering, i don't think you chase it. >> last up, applied materials down 4% on the day. bk. >> you should drop it like it's hot. i don't like it at all. >> you might be wondering why woe brought back one of our favorite classic "fast money" segments and that is because it is our 12-year anniversary today. that's right 12 years of laughter, tears and a few big interviews take a look. >> we are joined now in an exclusive interview with steve wozniak. >> tom preston. >> carl icahn. >> howard. >> john madden, the legend, joins us here on "fast money." >> how long have you been back >> this would be the perfect time to play the dating game

>> jamie dimon, i'm here so happy birthday. >> thank you, jamie. >> here it is meandering around 35 >> why i don't know you've got to tell me! >> what in the world >> mmm, bang ♪ >> i'm melissa lee, thanks for watching 12 years, guy, and you're the original. >> that's amazing. when we started this thing, i gave it 12 days. 12 years later my favorite, you had some big -- >> big hair. big hair was all the rage then

ten years ago. >> what a long, strange trip it's been. think about those shows during the crisis when we come on and didn't know what was going to happen pie the end of the show. >> who was going to collapse during the 5:00 hour. >> or the first round of stress tests. all of that within the past 12 years. >> crazy ride. learned a lot. >> thank you all out there for watching and being with us. time for the final trade let's go around the horn tim. >> a company that's been around 12 years and then some is macy's which really hasn't participated i think they had a great holiday season that's what they say stay in this name. >> karen. >> along the retail lines, foot locker, time to lighten up a little it's had a huge run. >> b.k. >> i think you buy letter x, u.s. steel apparently steel walls are in vogue these days. >> did you watch that alabama game last night? >> i watched some of it. >> you wonder if the coach is watching that show. >> saban >> that was a miserable performance. i'm going to tweak tim and say i think netflix continues to

rally. >> you tweak me, buddy tweak away >> have you read his articles on cnbc.com that does it for us. thanks for watching. see you back here tomorrow at 5:00 meantime don't go in iwhere. full ierewntvi with tim cook of apple ceo of apple wit jim when "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" starts now ♪ hey, i'm kramer, welcome to "mad money," welcome to one market in san francisco and welcome to cramer i'm just trying to make you some money. my job is to entertain you and educate and teach you. so call me or tweet me fine i