stocks in terms of people that allocate to them as opposed to this being a bearish sign for the likes of bank of america and wells fargo. >> they're also exposed globally. >> exactly fair point. that does it for "closing bell." thanks for watching. >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. tonight on "fast" stocks feeling the heat today, but don't worry, tony dwyer is here and says new highs are coming, but don't buy just yet he'll explain. plus twitter tanking nearly 10% as it changes the way it uses its user base we'll tell you what has wall street so worried about the social distortion. first, do you feel that? >> what was that >> trade tremors sweeping across wall street as president trump says that he will not meet with president xi ahead of the march 1st trade deadline the dow sinking nearly 400 points at the lows, the nasdaq

getting hit the hardest falling back into a correction this as the s&p battles against a key level, the 200 moving day average. is there trouble ahead >> i've been thinking the market would sell off for the last three weeks or so incorrectly. 2710 in the s&p, that's a big level for me yes, we traded through it to the upside by a couple of handles, not a big deal we're below it here. i think we roll over here. in terms of the trade deal, everybody seems to think when president trump is ready to make a deal, there's a deal to be made i'm not certain that's the case. again, i think the chinese have far more resolve, we'll see what happens. to answer your question, yes, i think there's more pain ahead. >> i agree with guy, i think there's more pain ahead. like guy, i've been calling f a row tra retracement. i thought we would rally 10% off that drastic low we saw before christmas. right now it still is about china, but i think they want to

make a deal, it's just not going to come in time for the market. >> look, we heard about europe we've heard from all the people that are looking at positioning in the market. guy, you're a billy joel fan. >> huge. >> he's got a terrible song "i don't know why i go to extremes." that's exactly what this market has been basically we are so oversold by the end of december and so overbought two days ago, it's not surprising we pull back. the good news is you had kaplan out saying we're going to let this economy run as hot as it wants to he was pouring water on any type of a hawkish fed i think the fed is the most important dynamic. it's amazing to me we wake up today and worry about europe, when i think we should have been worried about europe the last two years. >> when the trade headlines cross, we saw the market react you pointed out this on the conference call. in areas that do not have any exposure to china, this seemed like a risk off kind of move

entirely, not just the notion that these stocks are most exposed and therefore we're selling those stocks. >> we were talking about some of the maga names, microsoft, apple, google, but google and amazon, there was things not to like in their quarters but they didn't trade so badly. today when the market didn't have a good feel to it, they went down 3% in a straight line. that tells you that this move all the bottom was pretty extre extreme. there was a lot of bad news discounted in. this is the thing, we've been talking about it on the desk a couple of weeks now. there's stuff overshooting the upside but the stalling out in the bank stocks since they reported earnings, look at what crude oil has done the last couple of weeks. it stalled out to a level it broke down i just don't like the 10-year treasury yield it looks horrible. it looks to me like it's got another leg lower. when i see those exposed banks

and oil and then you see that, i just don't like it >> so the inverted yield curve that everyone was worried about, you're not getting a steepening, at least now you're not. not good for the banks what about the dollar if we have a trade deal it's going to rally. i would assume it would rally, that's bad for oil you have a lot of correlations that are on and off again. it seems to me that the market wants to go lower, but everyone is so underbought because of that sell-off that we had. you had a short covering rally. >> again, i just think all we're doing is correcting from overbought conditions. i'm not telling you that the world is a better place. an oversold place. the bottom line is, first of all, as it relates to banks, twos, tens, yield curve steepness or lack thereof, we've basically been in the same place since july in terms of oil, i actually would argue that oil is trading pretty well. i think it traded hard down to if you look at brent or wti,

whichever you follow, this level on crude to me somewhere around 61, 62, i think is decent. i think there's support for oil. i think energy stocks, which are basically the most shorted they have ever been in their history look kind of interesting here. so i think there's two sides to this to me i just think while the rest of the world differentials to the u.s. don't look great, the u.s. is not going into recession tomorrow it's very clear to me, despite the fact germany is telling you they may be and i think that's what the market did today. >> is the bottom line the u.s. is the best place to be, or is there a notion in the market, and you were not here for this so it will be interesting to get your fresh take on what joe zidel told us yesterday. we're seeing central banks around the world move towards easing steve liesman had a great chart to show this earlier today, basically where all the central banks stand and where they have changed in terms of their stance even just recently the rba, reserve bank of

australia, has changed india just changed you a eurozone outlook just got changed. >> it's a lousy -- actually there are very few good rodney dangerfield movies. >> the fact we're spending this much time on rodney dangerfield movies is disturbing >> he gets no respect. >> back to central banks easing around the world. >> that has been a catalyst for markets to go higher, no question not to get off track, but that's one of the reasons we should still be doing what we're doing. we should still be moving forward, because as everybody weakens their currency, we have an opportunity to strengthen our foundation and strengthen our currency i digress for a second i think at a certain point you're going to hit a point the minimum marginal returns in terms of central bank activity i think we're pretty close now you can only go to that well so many times before the market starts to call you and i think

we're about there. >> let's go to mega cap tech >> mega, not maga. >> a strengthening dollar versus also a global growth that's weakening is actually going to be very bad for mega cap tech. >> where do you think that the dollar is going, dan i think the dollar also has basically gone 1.5% in the last five sessions after also doing nothing for the last six months. >> you look at all the negative yields -- >> the fed's on hold people are saying the fed's going to cut do you think the dollar will rally into this? there's no way -- >> it could rally just in relationship to the rest -- >> to the other currencies around the world. >> and by the way, it's a big mistake to counting the fed out for 2019 i think that the market has overestimated the dovishness in the fed. they're still performing qt and there's still a chance there's a hike. >> how is growth so bad if we're underestimating the fed's

resolve to chase what could be inflationary dynamics in the economy which seems to be growing? you can't have it both ways. if the fed is in play the economy if anything is overheating. >> the fed is still performing qt so they're removing liquidity from the market by 400 billion per year so they're still at it. >> i don't know people are thinking the fed will do that. probably the last 200 s&p points was a view that powell was also no longer robotic on 50 billion coming off the balance sheet look, i think a fed in neutral, and this goes back to j.z. and what melissa brought up about global central banks, i think taking tightening out of central banks' arsenal in the short run means markets have a very good backstop. >> are you laughing? you've been off the show for a while. welcome back. >> i've been all over the place. i watch you on airplanes and stuff. >> you're not watching anything. >> "fast money" fans across the united states. yes, mel, ask me a question. >> you looked like you had a comment in you.

>> my comment is when we come to an impasse, usually it's good to bring somebody in that can bridge that divide a guy like tony dwyer would be perfect tonight. >> he might be able to bridge both sides by the introduction that you gave him before. >> it might be interesting to have a guest calling for new highs in 2019 because we're a little skeptical here at the desk in general. >> it's refreshing to have the host of the job be able to do her job, mel. >> let's bring in tony dwyer he does say that new highs are ahead for the year, but don't buy just yet why? >> you get a reflex rally off of a nonrecession crash, we got that it's typically 13% this one was 15% it's taken a little bit longer to get up to that 15%. i'm really torn. i was just talking to todd off air. i mean there's a good case to be made for a bigger drop and a greater case to be made for no retest i'm in this no man's land. if anybody comes on set and tells you this is going to happen, i think they're making

it up. there's too good of data on both sides. so where i fall out is i'm in tim's camp the fed made a change. the change was that they went neutral. as you guys know when we did the show at the end of last year, i think we're in a 1995 analog you had a president in turmoil, you had 100% tariffs threatened against japan. japan was as big as china is today to global gdp. you had the fed almost invert the curve at the end of december by bringing down the 2-10 to seven basis points the fed tightened on february 1st in 95 and eased in july and against in december. >> but they were easing. so you're assuming that they flipped it they're cutting now. i sdpr i disagree with you, they're not neutral and you still have qt. tim and i were just talking about it if they're still removing

liquidity, that's not a done deal yet. >> i would disagree with you that they're removing liquidity. if excess balances are coming down on the balance sheet at the fed by banks, who are removing excess reserves at the same pace that the fed is bringing down the balance sheet, there's no -- i have not talked to a bank ceo or investor who has had a liquidity problem. so if you're removing liquidity, it has to affect the liquidity so i get to the qt is taking money out, but it's money that's not used and it's coming off the free reserve. >> tony, isn't it fair to say in late november and december there was a lot of concerns about liquidity. why would our treasury secretary be calling around financial institutions >> because he didn't get it. i was talking to a couple of bank ceos, dan, because i didn't get it it's above my brain scale. like this whole thing is above my brain scale so i went to guys interacting in the inner bank market and they didn't get it either. like they literally don't understand so it became a market event. that's where i was really torn

at the end of the year. >> we're going to have a forced merger of deutsche bank with some other german entity. >> that's good news. >> is it good news i just don't know. >> because that's been a problem. that's been a problem. >> it keeps the ecb off -- >> nobody backedup lehman. >> when bear stearns was put together with jpmorgan, that was an amazing thing and rallied a lot. >> you cannot say at the beginning of 2018 that all the data globally is so good we're in a global synchronized recovery and it can't get better then you can't come in this year and say the pmis are so horrifi that you've got to sell takes. >> so what's the case -- >> i think you've always done that in a nonrecession crash and you've up straight 15% i don't think it will retest the low. i think it will pull back a little bit -- >> you said 3% downside? >> 3% to 5% downside

and you could do that tomorrow so my whole case is if you think you're going to get a new high -- >> that's like no downside that's nothing, right? >> here's why you do it. down 3%, guys like me are famous for coming on tv, all corrections are natural, normal and healthy. i'll buy it when it happens. you get down 5% and -- >> that's what guy was saying, by the way. >> exempt for the "fast money" team but we're full of it we think we'll say we'll buy the weakness how much were really buying thinking we're not going into recession. i am highly convicted as you guys know we're not going into recession. you don't have an inversion of the yield curve and it's typically three or four years from the date you peak the ism and small business optimism index until you get into a recession. >> is the risk to the market the fed raising rates in your view or is the fed raising rates in the back half of the year really a signal the economy is fine >> i think you've got to have a

fed rate cut. >> a rate cut? >> yeah, i think you've got to have a fed rate cut. you're getting weak data in germany, weak data in china. >> so you think we're going to bring in weakness from elsewhere. >> we're in it we don't even know because we don't have the government data it was close, right? some of the data we've had is starten to weak en up. >> so is the call for new highs based on easy money in the united states? >> it's easy money globally. >> so you're in that camp, you're in that j.z. camp, joe zidel in case you guys are wondering. joe zidel. >> we're not talking about a rodney dangerfield movie. >> it doesn't mean you go into a bear market if you don't cut. >> i don't want to say a bull market because we're not going to flip the switch like that, but in an environment if you believe that easy money is the key to a stock rally of some sort, it will bring the s&p 500 to new highs, does the same apply to markets around the world? >> it does

>> so global synchronized weakening -- >> it's already -- >> -- is a buy signal for global stocks >> what's the data to support that if you look at the global pmis, they're actually where they were -- they're below where they were in 2016 at the low and near where they were in 2011. the citigroup economic surprise index for the g-10 or major economies is inflecting and starting to turn higher. >> okay. so we're having early signs of that in the u.s. because the 2-10 spread is so flat, you need to bring the 2 down you need to resteepen the curve maybe back to 30, 40, 50 basis points that can kick start a little bit of a refi activity. >> tony dwyer, good to see you good thing we had tony ready to go just when we needed him

grasso, what do you make of tony's call? >> i don't know, i love tony >> but. >> i think if we sell off a little bit -- >> that sounds like you're covered. >> you're saying that he's just cya. >> god bless his soul. >> and i'm saying it pretty much right to his face, but i think that he definitely covered all his bases. i'm looking for -- >> he's running out of here. >> i'm looking for weakening of the markets. for everything that tony said, put it up to the mirror and i think that's the right answer. >> that's a pretty harsh assessment of the guest that's still in the house. >> i thought you couldn't buy the guest but now he's coming back. >> i didn't hit anybody. i'm sitting minding my own business. >> you did say it was going to pull back a little bit, it's going to hit highs. >> if you don't expect to pull back -- >> i've never done this. i love this. >> we come out and say we're going to correct it's not a hedge if you don't expect that the market can correct, you get

scared when it does. >> if the united states is so strong and your whole thesis is weighing on the fact that the fed is going to be cutting rates, i don't think that's -- >> i didn't say so strong. i said the u.s. -- >> you said wee nowhere near recession. you have to have -- >> we're not. >> so the data points are not weakening. >> that's not right. they are weakening. >> but not to the point of recession. >> 1995 you went to 0.5% gdp growth in the first and second quarter of 1995. you were putting 100% tariffs on the 13 top selling japanese cars 100% they were as big as china is today, mark it up 35%. why? fed eased in july and then they eased again in december and it kickstarted a lending psych sglel because the market rallied 15% after falling 14%. we've had extreme moves. the u.s. economy is not falling apart overnight. we went from 13.5 on forward earnings and we're back up to 16 which is where we started all this the earnings have been fine. >> on a forward-looking basis if

we're paying 17 times that, that's a little too aggressive for zero earnings growth. >> 2016 you paid 18.5 times with negative earnings growth. >> good times. >> i'm going to say good-bye for real now. >> get out of here. >> i've had enough of you. >> somebody take his mike off, by the way >> that's a "fast money" first. >> i love that walk into the crowd and then come back. coming up, check out shares of expedia you will not believe what dan is saying about the travel stock now. plus, more metrics, more problems twitter is tanking after changing how it measures its user base. we'll explain how it could be losing the social showdown. democrats are descending on wall street. the latest proposal coming out of capitol hill could have you paying up to make money in the market we've got the details. we're live from times square in new york city. much more "fast money" right after this k. k. capital one is anything but typical. that's why we designed capital one cafes.

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welcome back to "fast money. check out shares of twitter down about 10% after reporting earnings this morning. the social stock feeling the heat as it switches up the way it reports some of its key user metrics. the move follows apple no longer reporting iphone unit sales and facebook wihich will report use activity across all the platforms as an aggregate. even netflix changed how it counts subscribers twitter will focus on its daily active users while they claim it isn't comparable to other social media

platforms, it comes in dead last facebook the undisputed champ, 1.5 billion a day. is this really a problem >> i don't think it's a problem. i think jack has a certain clarity of mind the way he's talking about their business i think that's a metric that i think will help advertisers get comfortable around the fact that they are one-tenth the size of facebook's audience. that number is growing so they should focus on that the big thing with the stock right here is very similar to what we saw in these other -- we see decelerating revenue growth an costs going up, expenses going up that's what hit the stock. i listened to that conference call and jack said a couple of things i thought were interesting. he used the word "local" a little bit i was thinking back to spotify they paid $200 million for a small business and it's growing really fast. when you have a decelerating top line, you look for businesses growing fast i'm thinking what is twitter going to buy remember his old cfo from

square, he went to run next door he said local. sara fry is talking about the power of local these are things that i think we'll see some of these social companies expand out and make some acquisitions, some tuck-ins like that to get some faster growing businesses we may see that this year. >> by the way, you don't even have to be logged in to show up on the radar with twitter. so you could be looking at them, you could google anything and you see someone's tweet pop up you're not logged into your account. you're not logged into google when you're doing a google search so i think the maus were always wrong. i like the uptick in daily active users, i like that. i don't disagree with dan, he was on a roll there, that was tremendous i'm still an owner of twitter, but it's disturbing how they are -- in your intro, they are dead last when you look at this. that's not the way to gauge them. >> but the way they're moving towards as opposed to just daily active users, they're focusing specifically on monetizable

daily active users i was confused when the twitter earnings came across and this was being reported i said why monetizable, and i didn't know this if you use tweet deck, you're not going to see the ads so they're really -- >> they're spoon feeding it to advertisers. this is what you can go to the bank on. >> this is good. >> so they're growing 9% and down a little bit from the numbers we've been getting, which have been low double digits revenues top line grew 24% people think these are bad numbers. these numbers are fine to think and even compare twitter and facebook anywhere near in terms of the size and scale of these platforms, they're totally different. >> sales grew 25% this year. they're expecting 13% this year. that dau number is smaller than snap's >> on percentage terms or absolute terms >> in absolute terms. >> that doesn't mean anything to me. >> well, it does mean something to advertisers when they're looking for an engaged audience. we're talking about why the

stock is down 10%. it's down 10% -- >> we knew yesterday that snap's audience was bigger. the bottom line is how are they relative to themselves. >> and twitter was 10% higher. >> obviously, dan. and they also were talking about a metric change and that really is what's disturbing people. the bigger question is why are social media companies and tech companies doing this twitter thinks they're delivering a more relevant appropriate metric to advertisers who i think have to be feeling pretty good about advertising on twitter. >> i'm in agreement with you i don't think that's why the stock is down. i think it's operating expenses have gone up. >> such anger considering how much you agree actually. no matter what you guys say, you're going to argue about it. >> plus we're going to get the split screen. >> ad engagement is up 33%, margins 43.5%. i thought twitter made a huge mistake. google doesn't talk about monthly average users.

i never thought twitter should as well. i think it was painful but they'll reap the rewards having done that. i think the reason the stock is down as much as it is because first quarter guidance wasn't great and the stock has banged up against $35.50 three times the last 12 months i think you buy it again. >> this is a company that has $6 billion in cash, three net of debt i think they should be making small tuck-in acquisitions and not spending the whole nut on something big. those are the incremental things that you can see revenue growth accelerate again. >> for more on twitter head over to cnbc.com. i'm melissa lee, you're watching "fast money. here's what else is coming up on "fast. big bank, small bank, i like to make money. >> yeah, so do we. one technician will tell you exact exactly which names to buy in the financial sector to make sure you're bringing home the big bucks.

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welcome back to "fast money. regional banks on the rise following the $66 merger of bbmt and suntrust bob pisani is at the nyse with all the details. hi, bob. >> hello, melissa. m & a may be picking up in the banks. here's the bad news, the premium offered for this merger is pretty small and there's a good reason for that. growth is really tough to come by in the crowded banking industry so we have low rates, they're making it difficult to grow interest income. we have loan growth that's also been very modest even with a strong economy here's the final problem the banks have been struggling for deposit growth partly

because the fed has been shrinking its balance sheet. these banks are on the other side of that balance sheet equation, so the banks are also facing costs of going digital. the cost is enormous but once you make the investment, the good news is it's all scaleable. so those who can get bigger and offer more differentiated products are going to win out. those who are not will offer generic products with very little competitive advantage they're going to be takeover targets. that's why m & a makes sense for these banks. you have to spend to scale up the technology to go digital once you have scale you can be more efficient and cut costs in the case of bb&t and suntrust, it helps that there's a significant footprint overlap. both are heavily concentrated in the mid-atlantic and southeast regions. the hope for m & a activity is one reason the largest regional banks have outperformed this year

the regional bank etf is up 17% but the financial etf is up half of that. the financial etf includes broker dealers and asset managers they're all engaged in massive fee wars insurance companies are also underperforming this year. >> bob pisani at the nyse. so let's trade this. we did see as bob had mentioned a big ramp in these banks n today's session there are some banks that really stood out, comerica -- >> i think the market is saying, maybe i'm off base, but i think the market is saying this is the first of many deals has to happen there are a number of banks that maybe get forced to make a move maybe they don't want to make. this is the largest bank deal since '07-'08. that was an interesting time if you recall a year and a half after. my question would be do deal

like this happen at the beginning of something big -- >> or the late cycle when there's nothing left to wring out except efficiencies. >> it's no secret that net interest margins have been getting squeezed tight, so squal matte scale matters. to imply that this is a -- i don't think you're doing this, guy, it's an interesting question to ask. i do think that banks are going thank y through a painful period you're seeing major inefficiencies from the overall market taken away from them. in other words, technology means they can't take the same amount of people. so bottom line, citizens financial, i think those are ones that are going higher. >> plus it has a lot to do with that $250 billion asset cap of these two banks would have been there in three years on their own with the growth that they have now so people wanting to or banks want to stay below the fed's radar because you have that 250 wide berth on assets that's why they merge, because

together they would have gotten there in a short amount of time as well. our next guest says there are two buying opportunities in the bank sector. let's go off the charts with todd gordon. hey, todd. >> hey, melissa. let's take a look at the regional banks versus the larger financials there is outperformance, as he mentioned. you can see that right here, relative you can see regionals outperforming financial the. financials are underperforming the broader market we are seeing the 2-10 yield spread up around 18, 19 basis point. it double topped up around 22, 23, so we're seeing a flattening of that 2-10 spread which is going to continue to pressure the financials that being said, as we take a look at the kre, this purple line is the 200-day ma the different sectors are testing the 200-day so we have underperformance in the banks. that being said, we might trace

a little bit of an inverse head an shoulders here. if we do push up that would be great up around the 52, 53 mark in kre would be constructive but there's a lot of wood to chop above. that being said, i do own a bank in my portfolio. i own bank of america. it's best in breed in xlf. same with bank of america to xlf. bank divided into xlf, this line is going up. bank is outperforming the financials same thing, 200-day. we've been hanging around there for a while. we backed off a little bit and bank of america if we can hold some support and chop through the 200-day, constructive. i own bank of america. if we don't hold lower levels, which i'll show you on this next chart, right around the 26, 27 mark there's a gap of bank of america. if we close that gap and don't find a bid, i'm going to bail. a regional bank that's showing really, really good relative strength is zion

same idea here with the ratio of kre via zion it's outperforming the regionals. we're coming up on that 200 day. if we can break through the 52 park, i think you might get a momentum play up in zion that's best in breed >> todd, in bob pisani's outline of the financial sector overall, he mentioned insurance companies underperforming. all the different components adding to this underperformance. which subsector do you see as the weakest? >> within the financials >> yeah, within xlf overall. >> broker dealers, goldman is weighing on them significantly as a whole, financials really are underperforming. i'd certainly look if the market does roll over on a short-term trade. i'd look to some of those weaker sectors if we do get that roll-off back below 2700 in the s&p, i would look to be short some of those asset managers,

some of the investment banks, morgan, goldman, insurance as you mentioned. regionals are strong, so i'd stay away from the short side there. >> todd gordon, thanks todd mentioned bank of america i looked over to dan. >> i think he makes a great point about the investment banks, goldman sachs and morgan stanley. this is the day that uber, all these guys are going public. this is their bread and butter supposedly these stocks underperform the broad market i do not like the bounce off the lows in those names. i suspect you'll see something similar to 2018. they really led to the downside. they were the tell for the good part of the year. >> banks have totally outperformed citibank outperformed the s&p by almost 1400 basis points that's not a reason to buy citibank right now i would buy jpmorgan relative to citibank they have vastly underperformed the major city banks and is best of breed by far. jpmorgan will outperform it's up 6% year to sdat with a

balance sheet to me that is far and away best in breed. >> you mentioned zion and let's talk about that quickly. it has gone from 38 to 50 in a straight line over the last two weeks, two and a half weeks. so i'm more inclined to fade that move than try to buy the breakout i think the opportunity will be lower. >> do you think i thizion willi will be playing for the knicks next year? >> do you guys just say anything that comes into your head? you're on live tv. >> you guys are children. still ahead, check out shares of expedia soaring off its earnings report. we will tell you what was just said on the call that has the stock flying. plus from the attack on the buyback to new trade tax proposals, the democrats have taken aim at wall restet how could it impact your money we'll have a special report when "fast money" returns

welcome back to "fast money. the democrats are descending on wall street as they push a more populist agenda heading into the 2020 election. in the latest proposal from capitol hill, it could target trade directly, meaning trading directly let's go to ylan mui in washington, d.c., with more on this. >> reporter: there are a lot of trial balloons get floated in washington the latest comes from brian

schatz, a democratic senator from hawaii. he's floating a financial transaction tax. there is not a lot of detail on exactly how this would work or what rate he would charge but this isn't really a new idea both bernie sanders and hillary clinton actually proposed this during the 2016 presidential election what i think is different this time is this actually sounds a little bit tame compared to what some other prominent democrats are talking about. of course there is the buyback bill that was introduced by bernie sanders and chuck schumer. that would prohibit companies from buying back stock unless they provided seven days of paid sick leave, a $15 minimum wage and health and retirement benefits also today alexandria ocasio-cortez, the freshman congresswoman, aoc, she launched her green new deal that would provide a guaranteed job for every american, health care for all, higher education for all. she says she wants to help pay for this with that 70% marginal tax rate on the wealthy. today i asked her if that was enough to cover the cost of her

proposals and she said it doesn't have to. >> this is about making smart investments, and this is about making investments that actually generate returns and not lying about the fact that they generate returns they actually generate returns. >> reporter: melissa, the estimated price tag of her proposals before she laid them out was between $2 trillion and $6 trillion. back over to. >> between $2 and $6 trillion -- all right, ylan, thank you so is wall street really under attack it is the view a lot of these proposals do not have a chance but this tells you the temperature of washington when it comes to the populist agenda here and the war on our capitalist -- our way of life. capitalism and free markets. >> the democrats that are going to be running for presidential -- for the presidency are outlefting each other. i think they're doing themselves a disservice so i don't think that any of

these things have a chance at passing. these are all for them to get ready for 2020 that's the only thing that's going on here. they'll talk about the environment, they'll talk about guns, they'll talk about -- but the only thing that does have a chance, drug pricing bipartisan the president mentioned it in the state of the union the other night. that's one thing that both republicans and democrats will combine on but the rest of the stuff, i truly believe is just campaign slogans and everything else. >> the financial transaction tax is interesting because when i saw that proposal, or the report of the proposal, i immediately thought about china and how they usually levy this financial transaction tax in order to stop turnover of shares to prevent people from trading. >> yep. >> and that's going to be the side effect of that. >> look, this is all to me devastating legislation potentially for markets and certainly for the stock market the buyback bill, i can actually appreciate the fact that if companies are not able to fund

their own retirement programs, why should they be buying back stock. or companies that are effectively being handed a tax cut which is supposed to be doing something for their workers and not really doing anything for them. but much of what i just heard there, and this is not a political show, i will just say is market unfriendly the reason the financials have rallied whatever they have is largely because i think the target was taken off their backs from the regulatory environment. so that to me is the most important fallout of this. >> it's interesting, ten minutes ago bank of america just announced a $2.5 billion increase to their repurchase program. so boc is saying take that, aoc. i understand what tim is saying. but i'll say this. if you limit companies' ability to buy back their stock, when does that end? you have to allow companies to act. now, you can say they shouldn't be buying back stock, but isn't that what we're all about? that's what capitalism is. if that's the way they think is the best way to use their money or spend their money --

>> i'm just saying the market has gotten a major benefit it's all going to be coming from buybacks. >> the i think you framed the conversation pretty well there was a trillion and a half dollar tax cut borrowed from the future and given to corporations there should have been some quid pro quo. we heard jamie dimon talking about the sorts of endeavors -- >> but can you after the fact pass legislation to force them to use it -- >> this is a lot of political stuff gearing up for a presidential election. if it starts the conversation about some really important issues, about family paid leave, about education, health care -- >> let's hope there's discussion, though. >> we can all agree we don't think it should be charged off on financial transactions or take you down a slippery slope about what you can do in a capitalist society.

expedia is soaring plus auto talks spinning out one traileder just bet nearly $2 million one tse sofhotocks is going to race higher we will break it down. much more "fast money" still ahead. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

welcome back we've got an earnings alert for you. expedia soaring in the after-hours trading. let's get to seema mody with the

details. >> two big factors behind expedia's rise one its bullish outlook for 2019 10% to 15% is much higher than what the street was calling for, 11% to 12% second the growth in its home away vacation rental platform. 2018 revenue up about 29%. the company spoke about how it continues to add to its inventory of properties, so it can cater to a wider audience. however, the ceo on the conference call was cautious about growth in europe and the impact of brexit listen in. >> we have seen a dropoff in uk flight bookings, both outbound as well as inbound we expect uncertainty around brexit and just overall uncertainty in europe. so i think we're -- you know, we are cautious on europe >> okerstrom said people do

travel in an economic downturn, they just adjust their travel to shorter, make budget friendly trips. shares of expedia up about 8% in extended trade. >> seema, thank you. dan, you've been following this space. >> yeah, so i got this one very wrong on friday's options action for now. i proposed looking out a couple months i did not see this company having the visibility they supposed toe have with the guidance they just gave. that being said, homeaway, which i think airbnb is taking a big chunk of, it had its slowest year-over-year growth. it's decelerating pretty good. you just heard the ceo talk about europe i'm just hard pressed to think if brexit keeps going this way, we still have trade issues, we still have the weak data in europe, that this company has the visibility that they say they do. >> so every time a company -- i would have agreed with you i think airbnb and these resort rentals are going to take away from expedia or the traditional hotels that we see

but you really don't see it. wyndham destinations, that's a little bit of a play oint. you get marriott vacations, vac. but a lot of these still have tail winds behind them but i would use short stops behind them tie yourself to whatever the closest moving average wyndham i believe is close to its 200-day moving average use that as a way to exit. if we start to look at recessions and slowing growth, these are the names that will get hit first. >> i like bookings in this space, formerly priceline.com. they're growing top line and nightly growth around 15%. 22 times forward earnings. bookings. >> i think dan might have just been early in our business early, as you know, is late. but that doesn't mean he's going to be wrong. if you go back and look at august, the stock topped out at 138. why are we trading in the after-hours? 138. trading at 45 times trailing, 20 times forward. probably a little bit expensive. i actually think you fade it

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welcome back to "fast money. auto stocks hit the skids after fiat chrysler spooked the street with weak guidance dan is breaking down the options

action. >> real quickly. gm had a really nice rally off of its december lows, up 15% on the year today call volume is four times that of puts there was one large trade that caught my eye with a march expiration a trader bought 25,000 of the march 40 calls to open for 67 cents when the stock was around $39. that breaks even up at 40.67 a little more than 4% from the trading level. in about six weeks or so, you're risking 1.7% of the stock price to bet the stock is over 40. that seems dollar cheap. when you look at the chart of implied volatility, the price of options, you see they're trading very near the lower levels of the last six months here, so vol cheap, dollar cheap. one quick point, look at the two-year chart it's trading right about the midpoint of the two-year range, around 38.50 if you think we get some sort of deal on trade, gm should be back above 40 that's a good way to play it. >> bottom line for gm, this is a

company whose bread is buttered right here we got fresh data and they pushed guidance up to 675 which makes them 5.8 times forward earnings it's ridiculously cheap. >> i think you know where i stand, melissa lee i'm a nonbeliever. if you recall the monkey song daydream believer. >> how does it go? >> do you want me to sing it >> yeah. ♪ good good -- >> stop, stop. please >> i know, i asked. >> check out the full show tomorrow at 5:30 p.m. eastern time. up next, final trades. you can't unhear it. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritradade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect.

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fallout from guy's singing continues. dogs were howling across the country, guys sweating it's amazing final trade, tim. >> i talked about jpmorgan against citibank i would be long jpmorgan against city panic. >> grasso. >> guy is a great singer but he had a poor performance so a bad day today. wes rock. >> tim said something really smart. he wants to buy jpmorgan against citi i think you sell citi and have a ball. >> do you want to give it another -- >> no. when i feel better >> you're fighting a bad voice. >> body a "fast money" karaoke

night years ago and i crushed it do you remember that >> what's your final trade >> twitter twtr that 10% move to the downside, melissa lee, is too much. >> we'll see you back here tomorrow at 5:00% in the meantime "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 is always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain, but now educate and teach you. so call me at no. or tweet me @jimcramer. whatever you do, i don't want you to try to be a hero here after today'