amazon dominate the u.s. market. he said amazon remains committed to complying with all laws an regulations. he was also asked whether jeff bezos plans to sell any shares he said he didn't have anything to say back to you. >> that does it for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlooking new york city's time square, i'm melissa lee tonight on "fast," as you just heard, amazon volatile after hours despite an earnings beat moments ago. the tech giant's guidance coming in light which is putting some pressure on the stock. we're awaiting the conference call kicking off in 30 minutes' time our earnings team will get you all the headlines. gene munster is in minneapolis, deidre bosa is in san francisco. we'll check in with them later but we start with the markets. the s&p 500 having its best january since 1987

stocks snapped back from the december lows. we've got a market friendly fed, a trade deal potentially in the works. so is this next stop new highs do you trust this bounce, guy? >> i haven't trusted it for the last 170 or so s&p points. however -- no, i don't trust it. i know president trump just talked about his great relationship with president xi and how things will get done i get it let me say this quickly. all we've done in the month of january is basically recoup what we lost in december. we're basically even from november good, bad, doesn't matter, that's where we are. 2717 i mentioned because i was on your show, "power lunch," a while back when the market was going the other way and i said the 2710 level is critical and it proved to be correct. what was support on the way down should be resistance on the way up again, i've been wrong for quite some time. but you have to ask yourself the following question will the longest bull market in

history be followed by the shortest bear market in our history? i just find that hard to believe. >> but still, we do have president trump saying that he's going to meet with president xi. that there's no need for an extension of the march 1st deadline for tariffs, karen. that seems like the most positive step forward in the trade negotiations that we've seen. >> yes, i'm kind of surprised that he said that. we were talking about this before the show. he could always walk it back if they're making good progress and march 1st comes and they haven't wrapped it up. i've always felt that a trade deal was the most important thing for this market to get back on track. to me it's more important than the fed. so a lot of good things happened between yesterday and today. you had some good earnings as well still, i think that it reminds me when last year they had a tax deal, looked like they could never get it done. then they started to really make progress and the market rallied really hard into the tax deal and after the tax deal for a couple of months until woe hit that difficult market the beginning of last year i think there's room to run if

they get a trade deal. but some stocks have run too far already, right so if you had crappy earnings, even though your stock was -- if your earnings weren't good enough, your stock is not going to be supported here. >> a couple of different things to say first of all, it feels a little eerie. this is where we were a year ago. body a blow-up top on january 26 people said the first half of the year will be really choppy and pby the enof the year we'll go to all-time highs none of that happened. as we looked over the last few weeks, the real paying trade has been to the upside here, folks and i looked at the spiders and looked at them three weeks ago we hadn't seen the short covering that would have told you we were at that place. this has been a v-shaped recovery and the reason for it is simply the fed. the fed is arguably at least for the short run the reason why the markets have less volatility i don't think that earnings can support us getting to new highs.

i don't think stock markets are well set up for the second half of the year. but i do think with the fed basically now can they reverse course again boy, that would be disastrous. they have lost credibility by responding to financial conditions in the stock market they cannot do it again. for now i think markets stay where they are. >> we have the best january since when >> '87. >> last january was the best january since when '87. and i guess i think what's really important to remember, i think what guy just said, when the s&p 500 broke 2600 and went straight down to 2350, now we're here at 2700, 100 points above a level that the s&p had bounced off on numerous occasions last year and i've just got to tell you, you talk about a scenario where we have the 10-year treasury yield back at 2.64, 2.65, that is not bullish for me. i know a lot of people wanting to make the case for lower yields and dovish fed is great for equities i think when you consider where

we are in this cycle, you consider that the fed had to layoff, look at that chart right there. that's the 20-year chart of the 10-year. it really got rejected at the long-term downtrendi i feel like if you look at those past spots where it hit the downtrend, the stock market topped every single time and dropped 50%. the likelihood of new highs in 2019 i think are slim to none. >> so the fed basically stepping to the sidelines for now is a bad view. >> horrible. >> in your view it's a bad thing. >> i'm not happy that the fed stepped away i think for stock markets right now, what was bothering stock markets as the fed and mostly the fed. >> so that's to the side. >> it's not what i want, mel as a trader or as an investor, i think in the short term, medium term, one to two months, i think lack of fed means markets can be constructed. >> yes, lack of fed gives one less hurdle to jump over. >> so this week we've seen some pretty big changes, right?

>> but doesn't january discount a whole heck of a lot? it's no different than the january setup with the taxes you mentioned last year. >> i don't agree let me finish. last year january was after a very, very strong year before, right? the market was up huge from election night through the ending of the year we're not coming off of that so we have had a real change, the tax rule, appeared the market that's flaft whet where earnings are much higher. >> they're not much higher. >> they're falling they are falling. >> the growth rate -- >> but if you look at the actual earnings, the earnings are higher they are significantly higher. >> i don't mean to give you that exasperated sound here, but you got the fed out of the way -- >> it's like breathing for you. >> and then maybe we get some deal on trade but it's not going to be that comprehensive deal, and maybe some other things kind of -- >> smoke screen. >> so then don't you think with

the s&p 500 up 8% on january 31st we kid nd of front loaded some stuff if you think the stock market is not going to be lower than where it is right now sometime this year, you're crazy it doesn't work that way. >> that's a ridiculous thing to say. what are the chances that it's lower on one day this year than it is today. >> considerably lower. >> high, high. that's possible. look -- >> look into the camera, karen. >> i'm speaking right to you, dan. i'd agree with you but then we'd both be wrong. i don't want to do that. if we look at fundamentals, which is what i really look at -- >> dan, look at the camera. >> companies are earning more. their multiples are in some cases actually even lower. not all cases. see, the problem with the market isn't a monolith you can have some things that go up and some that go down i'm going to point to the ones that go up and you'll point to the ones that go down. >> we've learned that markets can turn on a dime.

>> absolutely, absolutely. >> let me tell you what doesn't turn on a dime the economies don't. the global economy doesn't when you consider what we have facing us the balance of this year, i think there's a tremendous lag even if we get some of this sort of stimulus that you think is going to be positive for u.s. corporate earnings >> you don't think a trade deal is positive for corporate earnings >> i think it is, but i think that a lot of the enthusiasm, the overshot that we are seeing right now in the last couple weeks -- >> is because of an anticipation of a deal? no it's the fed. >> of course, guys but i mean like -- so it's just not going to have the punch, i think, when the deal finally comes. that's kind of my point. >> i can appreciate the fact -- >> at some point that may be as we get closer and closer i don't think currently that we're there. >> quickly, and karen's points are -- >> better than mine. >> no, no, not better. >> correct >> i think she would agree a

lion's shea are of those earnin beats are because of buybacks as well >> that's probably 40% of the s&p earnings growth projection is coming from buybacks. >> how is that different from past years buy backs has been a tremendous force in the market quite some time. >> earnings themselves have been better than 5%, which is where they're projected to now at this point of earnings season, we pulled back on s&p expectations by about 2% overall. so in other words we were at 7%. we're somewhere around 5%. in absolute terms we've pulled back 2%. so i think s&p earnings had a better delta of growth i think this is what your point was, karen maybe it's not as good this year but they're still growing. i would make an argument that at least the swiftness and the breadth of some of these revisions we've seen to the downside is not reason to run for the hills, but it's concerning and i do think that a lot of the quality of earnings was a function of either lower effective tax rates, which i think is a one-off event that

becomes priced in, and we did have a global recovery which is very much in question. i agree with that, dan right now u.s. stocks are not expected to. >> last word. >> every time that we've had a recession over the last 15 years, it's emanated from the u.s. strategist after strategist comes on and says that's the only way we'll see a recession in the u.s it has to start from here. we don't have those conditions i read this on bloomberg this morning. out of 2400 mainland listed china companies, almost 400 of them have preannounced or announced disappointing earnings, earnings declines. these are companies that were profitable in 2017 it's kind of my belief here that this is not going to emanate from the u.s., it's going to be a global growth slowdown that is in place and we have strategist after strategist tell us about europe they're worried about, asia they're worried about, china in particular so to me i think we're putting lipstick on a pig here if we get a deal on march 1st for trade. >> despite the january surge, the s&p 500 is down nearly 8%

from its september highs our next guest says the bottom is near. let's go off the charts with rob. what are you looking at? >> the traders just highlighted the dilemma everybody is looking at the market has rallied all the way back into this massive resistance level it's a 50% to 60% retracement of the decline we had in the back half of the year but i think the setup is very different from what we saw in the beginning of 2018. think about this, when we came into the beginning of 2018, the market was at a high and as karen pointed out had a pretty good run into those highs. sentiment was really high. the dollar was high -- the dollar was starting to bottom. so we look at the setup now, we have the dollar relatively high and beginning to roll over we have the s&p pulling right back to the 200 week while that's a purple line on the chart, it's really important from a technical standpoint. the december 24th lows it was around 2346, 2348, that was exactly the 200 week, not

dissimilar to what we saw in the 2016 lows and similar to the 2011 lows. more importantly if you look back at the bull markets in the 1980s and '90s, and the bull market of the 1950s and '60s, that 200-week provided long-term structural support for the cyclical pullbacks when you start peeling the onion and looking at stocks, we saw a cyclical -- every three or four years we have a major low. to be honest, i thought this would happen in the back half of 2019 i got it wrong it's now responding to a level i think is really important. let's take a look at a couple of stocks we've talked about these before. the semi conductors to me are really critical because they began to peak at the end of '17, beginning of '18 we saw this strength beginning to erode in '18.

once again, like we saw in 2016, we're getting this rebound off that 200-week. more importantly when you look terrell afternoat the relative s made marginal new price lows but the relative strength didn't the stock is up about 30%. it's probably not the most timely fast trade, but i do think what we're seeing and we'll see this in stock after stock are these cyclical stocks discounting something quite horrible, bottoming at their long-term structural uptrend i think that's a cyclical low. we could say the same thing about the home builders. it's not perfect but there's a lot of concern about the home builders rolling over. it's come all the way back, this huge level of support. and this relative strength is beginning to improve so i think it's just another example. we could go through industrials, materials, even the financials,

while they're weak, they have pulled back to their 200-week moving average we think that's support. so what's the pattern out of this it wouldn't surprise me if we see something similar to 2016. it's going to take some time for the financials to get going. relative strength is still weak. if you look through the majority of cyclical stocks, many of them have bottomed at the 200-week. any near term weakness we want to be buying. >> so let's be clear about this, rob. if i'm sitting at home and i'm a buyer, i would participate through an s&p 500 etf. >> correct. >> you would recommend buying right now? >> i think if you have an investment horizon beyond the next two or three or four weeks, i think there is a -- whatever weakness we see is going to be very short term. again, i think the dollar is set up, i think the market is set up, the sentiment set up is very different from the beginning of

2018 i think investors should be adding some cyclicality to their portfolio. >> rob, thanks very much >> i think rbc just upgraded the stock and put a $45 price target on it. it's been in a pretty significant downtrend since april but right now on the verge of breaking out. i think the report on february 13th, i think for a shot for a trade it's pretty interesting. >> we're talking about key levels i have to agree. what dan is talking about, you can make an argument that 2750 is really the level on the s&p you can make an argument 98 on the sma. semis have recovered 20% off the lows i will talk about emerging markets because they started this the eem is now above the 200-day on the upside for the first time trading through to the upside, the first time since december of 2016 so a lot has changed in that part of the world that was nasty despite those stories in china. we've got a news alert on apple. let's get to josh lipton in san francisco for the details. josh. >> mel, we have drama here in

silicon valley it looks like apple has now revoked google's enterprise developer certificates in retaliation for an app that violated its policy. what does that mean? it would mean that google will be prevented -- google employees would be prevented from testing iphone apps. it would also prevent them from using certain internal apps. google spokesperson telling cnbc we're working with apple to fix a temporary disruption to some of our corporate ios apps which we expect will be resolved soon. you recall apple killed the same thing to facebook after it was revealed, of course you guys talked about this, the company had been secretly distributing this facebook search app to collect data now, google was operating a similar program, and the company actually apologized. remember yesterday they called that action a mistake but that apparently is not good enough for apple which is bringing down the hammer here. i did reach out to apple for comment and i'll bring you that statement if and when i get it,

mel. >> you mentioned that this is drama, josh. do you think that this is fueled by rivalry >> well, it's a couple of things that's interesting is you would think for these companies it would potentially create headaches. you can also see how it would create more important disruption you would see how it could limit access to early builds of apps, different beta versions they may be working on. so potentially not just a headache here. >> josh, thank you keep us updated. josh lipton in san francisco i believe we want to check in with gene munster, our "fast money" friend who's in minneapolis today, unfortunately not here at the nasdaq as he was the past two days. what do you make of this move, gene >> well, apple is showing that they clearly have the upper hand, mel. at the end of the day that's what facebook -- they did that to facebook like josh said i think this shows who really has the strength in tech,

whether it's the developers or the hardware this emphasizes apple's strong point, so i'd say score one for tim cook. >> we'll see you a little bit later, gene, on amazon in the meantime, dan, what's your take? >> it was revealed last year that google paid apple $9 billion to keep google as the default search engine on safari, right? so it just kind of shows you the power, and they're going to maybe pay $12 billion. apple can do what they want on this sort of stuff because google really needs to be there on the ios platform. coming up, amazon lower after failing to deliver on its earnings report. the conference call kicking off in the next 20 minutes we'll tell you the most important thing to watch for. check out shares of general electric the stock going parabolic today. and canopy growth is on fire it has nearly doubled in the month of january ceo bruce linton will tell us

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welcome back to "fast money. general electric topping the tape shares surging after being expectations it was up as much as 18% breaking above the $10 mark for the first time since halloween shareholders giddy as the company settled with the justice department plus the ceo says it will sell

more than half of its health unit tim, in the clear? >> i tellyou what, the most important thing is probably the cash generation in the quarter people wanti to see this company is able to support itself. if ge said we're going to raise $5 billion or $10 billion at the most, the market will reward that the doj settlement is nice organic growth on the industrial side was 8%, the street was expecting 5% the balance sheet may not be as imperative as we thought if they can generate cash flow, they can be valued on the sum of the parts. we need clarity. i think the sellers are gone largely out of this game good news is good news. >> value there, karen? >> yeah, i think potentially it's really hard to know i think there was a lack of any bombshells, which is seen as a huge positive now. that's how far ge has come the doj settlement was great i think we didn't see any more enormous long-term care write-offs that would have been bad so they're doing the right thing. i played it through leaps of

2020 i just want to give it time to work i think it will but i'm not certain so only the leaps lets me know how much i can risk. but this is a positive to tim's point if they do need to issue -- obviously the higher the equity goes, the better it is for them. also they're seen as a better credit but they're able to issue equity higher which i don't think is happening. >> they also said on the conference call they'll provide an outlook sometime soon not today. which would make me a little nervous. >> it's been extraordinary. >> you've been on it and steve grasso has been on it. they want to shore up the power business i want to win powerball tonight but probably won't that's kay steve tusa i believe made comments on the 29th i would anticipate him making comments again in the wake of this quarter my sense is he will reiterate his negative stance. so i think if you enjoyed this

to the upside, you might have a little more but it's headed back down. one trader is not betting the hype betting a million dollars ge will fall. >> options volume was off the charts today obviously the stock had a huge, huge gap higher after this recent consolidation four times average daily volume, the largest trade on the day shortly before noon when the stock was trading near 1050 was an opening by of the 9/8 put spreads. that breaks even down 15% at $8.91 on march expiration here here's the thing look at that chart these guys talked about this gap. there's a lot of overhead resistan resistance the stock did close 6% offits highs. it had a good morning and closed off its highs. when i see trades like this where someone is trying to pick a spot to the downside after a big run, maybe it's a hedge

againsting aexisti ing an existn the options market is saying there's only about a 10% probability of that happening so it's dollar cheap protection or a dollar cheap directional bet without a high probability. >> all right for more options action, check out the full show tomorrow at 5:30 p.m. amazon is sitting close to session lows we'll bring you the very latest from the quarter i'm melissa lee, you're watching "fast money" here on cnbc, first in business worldwide. in the meantime, here's what else is coming up on "fast." the deep freeze putting most of america on ice, but the traders think the cold weather could heat up a number of stocks they will tell you the names and speaking of heating up, it's been a hot month for the pot stocks one of the leaders has nearly doubled in january the ceo of canopy growth will be here to talk about the reignited

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welcome back to "fast money. we're watching amazon, whose earnings call starts in just a few minutes. let's get to deidre with what to expect. >> expect questions on what was behind the light guidance. i did hear from the cfo and he pointed to india he said that guidance incorporates new regulations there that would hurt its e-commerce sales remember, amazon has put a lot of money into the country so

analysts will wanting to know if these numbers change its strategy there growth was lower sequentially. lastly, don't be surprised if there's a question on jeff bezos' ownership and whether he plans to sell any shares of course in reference to his divorce. but don't expect much of a response someone already tried and he answered by saying that there was nothing to share analysts may still ask is an uncertainty hanging over the company. >> all right, droed eidre, thanu let's bring in gene munster in minneapolis. gene, what are you listening for? the commentary is interesting but this doesn't account for i would potentially $4 billion in shortfall between the lowest end of the range for first quarter revenue guidance and what analysts were expecting. >> it might. >> really? >> that was a pain point for a lot of companies so it's really 1.5%, because

they typically do the high end of the range so i think that probably does account for it. >> so it could be all india in that $4 billion potential miss, depending on how you want to look at the guidance. >> exactly. >> what are you going to be listening for in the call then >> profitability prime growth is going to slow. that accounts for 50% of their profitability, so we're going to be focusing on that. the second is what they're going to do in retail stores that's a big push for the company. i know it was down 3% but the overall retail opportunity is huge for amazon. we look for pieces on that the last piece just in terms of how they're going to compete with facebook. that's obviously a growing concern based on the facebook call last night. >> in terms of the same-store sales, the slight decline that we saw, is that all whole foods or does it also include their efforts and their own retail footprint? >> probably all whole foods. they have 550 whole foods stores there's only 100 other stores, which really include the gold

stores, there's just a handful of those they have these four-star stores and also these pop-up stores so, melissa, those are really too small to impact the overall number the key is that whole foods was clearly a problem in the quarter. i think that that doesn't change the bigger picture here which is pretty simple. traditional brick and mortar is critical to the amazon store i think that largely gets lost for them to continue to grow at this 14% pace, they need to actually do more in traditional brick and mortar, so i think that's going to be a key focus most analysts might not pick up on the call tonight, but i think as we move forward, we'll hear more about that. >> gene, we'll let you jump on the call and check in with you a little later on. gene munster so facebook and netflix surge after the earnings report. the nasdaq just had its best month since 2011, so where is amazon, down 0.8 of a percent.

>> they have guided their sales down a couple percent. i thought if there was any commensurate downshift or deceleration in operating margin, evening ti think the st be down alot but they're down from 31% last year so maybe expectations for revenue deceleration are worked into the stock here. >> and it's had a big bounce if they had announced this the day after facebook puts up huge numbers, i think makes it a lot harder. >> what do people wanting with amazon do you want growth or profitability? a couple of years ago or a year ago, you say i want them to become more profitable third record profit quarter. i think that's impressive. i like to see that they can make this more praofitable it's good to see that aws -- it's probably 25% to 28% of their profitability. i think that remains so. so i'm actually -- i think

amazon is growing into a valuation that for a guy like me is difficult, but relative to themselves, bravo. >> the fact the stock has grown from 1350 to 1725 or so, effectively in a straight line the last month or so and the stock is not down more than it is, to dan's point, is encouraging. the number i come away with, operating margins are 5.3% the street was looking for 5.1%. they continue to move up the ladder on operating margins. that's very encouraging. the retail stores, i think they missed by $300 million or so there was an offset to that in online stores so it zeros itself out. i don't look at that as that big of a deal. >> it's interesting gene spent so much time talking about bricks and mortars and geo graphic. if they can explain away that shortfall they're calling for is a short-term hiccup, these are

investments in a market, a billion and three people, in emerging -- it's the china story 15 years ago. >> for gene to say that potential shortfall, if you look at the bottom end of the range, could be all india, i would imagine the stock would turn around in the after-hours session. >> we're not trading amazon for india. we're trading amazon for the investments they make in their business for the future which have been proven to pay off. so you do the math, skboe indiao something that bothers me. the pot stocks blazing this year the ceo of one of the best performing names, canopy growth, will be here to tell us what is next for his industry. chor"ft ne still ahead. something that requires effort, like an obstacle we have to overcome every single night? with tempur-pedic, it doesn't. and now is the best time to experience the most advanced pressure-relieving material we've ever created. so you get the deepest sleep you've had in your entire life. this presidents day, save up to $500

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welcome back to "fast money. pot stocks on fire to start out the year what reignited the cannabis craze? one thing might be the farm bill which would give cbd a boost let's bring in canopy founder bruce linton, who joins us from a meeting for ultra high net worth individuals. bruce, good to see you again. >> hey, nice to be in florida. >> i know. we wish we were in florida as well it's been a while, bruce, since i spoke to you in smith falls. since then a lot has happened. the farm bill has passed

you also got a legal hemp license in new york. so in terms of this new market that's opened up here in the united states, how do you -- how do you assess the opportunity here what sort of total addressable market are you looking at? >> yeah, so it's a big deal. the reason it's a big deal is now we can actually operate with a federally controlled program, which means we don't jeopardize, say, working with bank of america, all the things we've been able to enjoy by being on the new york stock exchange. so what we're doing, and i think you'll see a few states want it, is create a hemp park so you can take the cbd, take the fiber, take the protein and use all of the pieces so you have this very low-cost ingredient. what we focus on how to turn this into outcomes that people wanting. perhaps your dog has anxiety or your sports recovery drink is better, or, or, or

that's science we've been working on for a few years. >> how do you think about the opportunity in cbd versus thc products, whether medicinal or recreational >> yeah, just so everybody is on the same page, cbd will be associated with -- think of it as anti-spasmodic, no shaking, diminished anxiety thc should be thought of as the psycho active, could be a competitor to opioids or alcohol. so cbd is a great first step much of the equipment and science will lead to capacities that will include thc. it's one of those things that i think you need to have a scale and a start and cbd from hemp does that. overall if it's permissible to change the feed stock to marijuana, it's a pretty rapid transition into the full spectrum of cannabinoids. >> when you think five years

down the line and where your company is getting revenue from, is it from the thc or the pharmaceutical side of things? >> on a global basis i think you'll see thc is an active ingredient and probably 85% of our total global revenues ex-u.s u.s. it's going to be a function of when and if state rights occur. so 100% of our opportunity right now is cbd i think in the u.s. it's a many tens of billion dollar opportunity and it's going to be coming down to great products with great brands. we think what we do with constellation and science we have a pretty good shot at that. >> is there any risk, i understand that the farm bill now that it's passed, the farm act, has really opened the doors. at the same time, is there any regulatory risk when it comes to the fda which has been a little fuzzy in its stance when it comes to cbd as a supplement or as an ingredient, any sort of

health supplement? >> yeah, i think actually the fda is going to be very active and useful, right, because there are all kinds of claims out there that are things you can make up and nobody validated so because it became federally re legal, that invokes an fda perspective. so i suspect we'll see as a sector and industry that cloneas up that means the consumer gets what they pay for. overall i suspect that's a much better outcome for companies like canopy and the patients or customers. >> hey, bruce, it's tim seymour. to move away from hemp and just can you about your core business and to oversimplify the investment buckets, are you more focused now on the bricks and mortar, whether that's cultivation, more licenses, more retail locations in your global footprint or is it more on the high value added, the science, the technology, the infrastructure that's at least related to logistics and the sophistication in your business? because that's what i see

happening very fast in this space with big, sophisticated companies like yours. >> yes what you meant to be able to do is transmit around the planet all your intellectual property what you need is a supply chain in each of those countries so what you intellectually property have defined you can actually deliver. you take these great ideas, protect them, codify them and in a bunch ofgrap geographies you to produce it. you can see where you sort of juggle back and forth between great idea, great invention, great protection and now we've got to go grow some plants that program repeats country by country because of the u.n. and a bunch of conditions. when it comes to canada, we're at the stage where we think we can begin to isolate and so what a good business looks like in that kind of country, and then

back out all of the extra spends you do to globalize. i think investors will say keep going, don't give us a difficvid give us growth. >> bruce, great to see you bruce linton joining us from boca that's a better trade than ottawa i asked that question about the fda because that was mentioned specifically in a note on the space that hemp is a great opportunity but the fact the fda is fairly silent on it raises some concerns. the minute, tim, that you have to slap any sort of warning labels or things or that companies have to do much more testing to prove claims, i would imagine that depresses the valuation of a stock, at least initially. >> it definitely does. look, canopy got about a 10% boost in the market cap on that announcement of the new york industrial hemp facility they're going to create and the processing attached to it. good for them. it gives them a federal national footprint to have a space in the united states of america

i think if you want to look at the market overall, you're going to see more hemp plays rushing ahead to the nasdaq and new york stock exchange because of this it's become a very interesting part of the approach to the industry without question. >> does the warning really matter i get the delay. >> does the warning matter why? >> did a warning impact sales of cigarettes >> yes. >> yes absolutely people knew about the effects of cigarettes andcancer. >> right. >> putting that warning label and federally mandating that warning label put a dent in the sales. that was the beginning of a decline in volumes. >> the bigger issue is the fda doesn't know how to handle the product. it's legal, you can transport is everywhere, but the product itself in a bottle with whatever warning -- >> doesn't alcohol have warning labels on it pregnant women shouldn't drink, things like that i don't know that it's made any difference. >> yeah, that's true

>> you mentioned the market for pets, i believe, were trying to get to that. >> you don't want to give flip any. >> no, i don't puff the magic dragon nor should your pets, but our crack staff at engelwood cliffs if you want to check that out. look what they did. >> oh, that's my pup. >> oh, wow >> that's karen. >> the first one >> that's me and the flipster there. >> so are the dogs experiencing -- >> no. >> are you telling me that dog is high when he was playing basketball >> if they're anxious, cbd has an impact. >> they seem very calm and happy. amazon lower despite the earnings, the conference call is under way right now. plus bone-chilling weather slamming the country this week but a number of cold weather stocks are heating up. we'lte y wchl llouhi ones you can buy when "fast money" returns.

welcome back to "fast money. " check out those windchill temperatures around the country today. this is the kind of deep freeze you dread waking up to if you get to get to work but it's not all doom and gloom, if you're invested in a cold weather stock, your investment could be about to heat up. tim is sporting his vest. >> yeah, it's chilly out, folks. we like to wear vests, that's what we do home depot, i'm going there for weather strippingand that stuf my wife makes me put on the

windows and the plastic and the hair drier it's great it's really nice bottom line is home depot, whether it's a hurricane or spring cleaning, you're out there, you're at home depot, there's four seasons to be there. but duraflame log, i'm there. >> karen. >> i don't want to leave the apartment like millions of others grubhub. i can't get that comfortable with the valuation, it's really expensive, but that is a great asset light business that they're going to be raking it in in new york city, no question. all over. >> let me tell you what i can get comfortable with, the high west whiskey, the constellation brands. >> you're comfortable with that in any weather. >> not when it's hot, then i go to modelo. >> remember a few years ago you and i went to the short hills mall. >> oh, yeah, we drove a tesla,

cheesecake factory >> you know what's there now a canada goose shop. i went out goose hunting a while back but i will tell you there are people lining up to get those suckers. >> isn't that called canadian goose? >> no, no, it's not. you want to say canadian gos it's canada goose. valuation is ridiculous but their margins continue to improve. stock wentfrom 70 to 40 in a straight line. they're going to get a bounce here. coming up, look at amazon down almost 3% right now we'll tell you what was just said on the conference call that sent the stock lower. plus, let's get a check on our cramer cam there's jim talking to senator rgizabeth warren about wells fao. much more "fast money" still ahead. to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact

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welcome back to "fast. amazon's cfo is speaking on the company's earnings call moments ago. the stock is lower after hours let's get to deidre bosa >> amazon's india business says new challenges there were forecast used at the start of the call, new government regulations that would curb practices like steep discounts that have helped amazon dominate the u.s. market. the cfo pointed to that uncertainty as the reason guidance was below expectations and says they're evaluating the situation. >> we remain committed to complying with all laws and regulations and we will, but

we're evaluating the situation our main issue and our main concern is trying to minimize the impact to our customers and sellers in india we built our business around price selection and convenience. we don't think the changes help in those dimensions for both the customers in india and also the sellers. >> now, over the last few minutes the focus has really been on growth margins and that could be what's bringing shares down further, now down about 3%. he acknowledged that growth margins were not up as much as prior quarters he first identified positive tailwinds like aws and said advertising dollars continue to grow headwinds include outbound shipping costs, the greater use of amazon logistics. for the year ahead it could be hard to grow margins because he says the 2018 margins they benefited from investments in warehouse expansion in 2016 and 2017 >> all right, deidre bosa in san francisco. let's get back to gene

gene, howdo you grade the quarter? >> you know, melissa, i'm going to lower my grade from a "b" to a b minus. deidre really hit at the end there, her last comment. specifically, keep in mind for 2016 and '17, amazon was growing investments in their warehouses by 30% year over year, sales only growing at 20%. 2018 they benefited because they basically built this infrastructure that had a positive impact on margins this comment that caused the lowering of the grade is more muted margin expansion this year that's a key part of the story i would say the scoreboard is broke when it comes to amazon. amazon has 3 billion in operating income that's one-sixth of what apple is yet amazon has a bigger market cap. so i had to factor that into my grade. >> all right, gene, thank you as always for your analysis

gene munster >> can i ask gene a question. >> go ahead. >> i know we've got to go. last time we established a b -- >> b plus i thought. >> what would a b minus -- >> you're not eating you're not going out of the house. you're doing nothing but studying anyway, with amazon, what do we make of it, dan? >> sentiment has been so positive if you want to talk about that 35% peak to trough move that it had over the last four months, you had a reset of sentiment so the fact that the stock had some issues in the quarter and the guidance and it's only down a few percent, i think that's okay i'm not saying buy it here, but it's fine. >> look, i think the gross margin is something that people should worry about again, this is a company that's never been worried about that. >> it's down.2 35% and dropping as we speak. up next, final trades. to full-blown production.

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the powerful backing of american express. hey, how ya doing? uh, phil. are you guys good with brakes? we're ok.

just ok? we got a saying here. if the brakes don't stop it, something will. that's not a real saying. it is around here. i wrote it. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network, according to america's biggest test. now with 5g e. more for your thing. that's our thing. this will be one of the biggest stories in the session tomorrow shares of amazon now down by 3.8% in the after-hours session. i believe the conference call is still going on so you can get some updates on cnbc.com but it is down 4% right now final trade time, tim. >> my cold weather stock is an all season stock their investment into the professional services is why home depot remains well ahead of their peers. home depot. >> i like fedex on the heels of u.p.s. today i think they'll see good things in march. >> dan.

>> i like guy's canada goose. >> canadian. >> it's canada goose gw pharma into next week's earnings release, melissa. >> that does it for us on "fast. we'll see you back here tomorrow "mad money" with jim cramer starts right now my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" snow hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you money, because my job is not just to entertain, but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. you know what most of the stocks that have exploded higher this earnings season have in common they had already