at the conference to bring coverage of that. >> some voices in private equity which is a pretty hot area people looking at that as dry powder but also as a source of risk down the road. >> absolutely. we're out of time here today that does it for "closing bell." >> "fast money" begins right now. live from the nasdaq market site overlooking new york's times square, this is fast money and i am brian sullivan in for melissa lee. your traders october desk are pete najarian, steve grass orks karen fineman and guy adami. tonight on "fast" shares of stitch fix and toll brothers are on the move after hours. both companies reporting their results. look at that stitch move up 12%. plus canopy growth soaring after the cannabis company names a new ceo. what it means heading into the new year. and coca-cola celebrating 100 years. >> stop. >> 100 years as a public

company. so that got us thinking. will any of this year's ipos be around in a century from now if so, which one should you buy? all that and more ahead. first, we begin with the countdown, the one that matters most to you and your money, december 15th. less than a week away. that is when the next rounding -- round of tariffs go into effect markets seem a bit skittish on the news will the race to new records resu resume, deal or no deal, which is a different show. >> you sound a little hoarse, are you okay >> i'm fine. spent some time on the airplane lately. >> a little hoarse >> i worry about you why are you glaring at me? >> i'm not glaring this is how i smile. >> you look great. i really mean that. >> i'm in the further downside camp i think that president trump will pull the trigger on saturday night at midnight and he's going to go forth

i think in his mind -- obviously i don't know anything, but in his mind he's got a lot of room in the equity market he sees the data out of china which has been miserable he's they thinking this is an opportunity to step on their neck and get a favorable deal for us early part of 2020. i believe if the tariffs go forth, the markets go down. >> i love the honesty because you said what everybody thinks i don't know anything. what they mean is no one knows unless you're one of the five or six men or women directly negotiating in that room, you don't know. >> or a couple guys on "halftime," they know. >> our viewers have to understand that everything is a guess. >> yes. >> it might not be known by anyone, including those involved >> the point is, karen, if we do not get a deal, what happens, if the tariffs go into effect >> i think the market has to go down for a few reasons the disruption, the uncertainty, that's never a good thing. but also look at where the

market is, right it's just levitated. so even if we go down, we're coming off a very, very high base i know steve thinks it will be fine regardless of what happens with the tariffs and ultimately that may be the case, but i think the market has to go down. i think some of the names that have really done well and sectors, like financials, for example, if that happens, i think you'll see financials come in because people will think, all right, slowing economy. >> so if we get a deal, steve grasso, or maybe more likely the president says, you know what, we're getting there, let's punt another 30, 60, 90 days, does the market go up >> the market goes up. and i believe if those tariffs go into effect, the market does knee-jerk sell off and then ends even higher than where it is right now. >> i thought tariffs were bad? >> we haven't really seen that, though we're at all-time highs or thereabouts in the overall market we haven't really seen that come home to roost. we've seen people broaden their supply chains around china

china is still getting hurt. the u.s. is still winning. 3140 in the s&p, probably end the year at 3200, 3250. >> i just have to say that i think you're exactly right, karen. from the standpoint of nobody really knows right now and this is all guesswork the reality is, brian, the vix isn't telling us people are overly panicked at this point in time the vix trading around 16 or a little less tells you you'll get a 1% move per day. we got down 108, that's not a 1% move so the vix is trading a little higher so there's a little premium built in right now. but the reality is there doesn't seem to be the fear factor that you would expect going into this. >> why not why not? >> because i think people are confident -- to your point, i think people are very confident that in my opinion we either kick this down the road or something positive will happen this weekend and if something positive happens this weekend, people will feel really, really comfortable that this market can

take off. >> or do the tariffs not matter that much? they matter to come companies, but not to the macro market. >> before we answer that question, we all keep saying we have no idea what's going to happen, but we know what's already happened we've seen tariffs and seen record high markets. why wouldn't it be the same? >> the one side of tariffs which a lot of people don't talk about, i've spoken to people on both sides, both continents about this the tariffs go up and are paid for by us, yes but we're hammering the chinese suppliers to lower their prices. so it's not as if the entire effect is going -- guy adami, out there in morristown, new jersey, go to a target, walmart, kohl's, are you saying the price of socks has tripled you're not stopping your buying because of that. >> and pete tweeted if you go to parking lots, places are filled. you look at some of these numbers and the consumer still spends never underestimate, i've said this a hundred times, u.s. consumers wanting to spending. they will always spending as long as they feel good

why do they feel good? because the job numbers are ridiculously strong and the stock market is high if something happens contrary, that's when it ratchets back if you need proof positive go back to last october, november, when the market went down 20% in a month and a half and see how quickly people stop spending that's my concern. with that said, i'm not looking for some catastrophic fall in the market but i think a retest of a july high, which is like 3030ish, 100 s&p points from here, i don't think that's a ridiculous think to think in this environment. >> let's bring in a guest here, of course. so one of wall street's, i guess fair to say, biggest bulls is getting even more bullish. tony dwyer just upped his 2020 forecast he now expects the s&p 500 to reach 3400 his prior target is about 90 points lower tony joining us now. welcome, tony. how dare you raise your target in the face of a trade war and tariffs that are going to increase in a week >> i thought that was the perfect lead-in based on people

aren't -- meaning the part about people aren't not shopping because of the increased cost of socks. you know what they got, was a huge windfall from being able to refinance their debt both companies have extended maturities -- brian, you get a recession when you need money and don't have any access to it, either from a business or a household. when that happens to businesses, they have to cut production, it hurts their suppliers, lay people off, hurts the households the opposite is happening today. when you get a little bit of weirdness in the corporate bond market, it's because companies are like, hold on a second, i'm scared, i don't want to take it. when you go into a recession, companies need the money and can't get it the guy printing the money keeps telling us he's not going to raise rates maybe for the rest of my career. >> you're talking about buying socks, i'm talking about buying stocks >> i see what you did there. wow. >> tell us why you raised your price target. >> because the trending of the multiple is higher

so when you're when a sub-3% market -- when people say the market can't go higher, it's inaccurate when inflation is below 3% look at q3 of '16 through q3 of '18, the last time we emerged from a mini recession, the 10-year yield made its low, started to trend higher. and the consumer was pretty good you ended up with a 22 multiple. so i don't have to go back to the 1950s or all the way back through every cycle to find it all i've got to do is the two-year period that ended in the third quarter of '18. >> what about adding in the corporate tax rate he prepaid that on the personal tax rate cut a lot of corporations complaining about not having money for x, y and z already got something that's a lower corporate tax rate on top of that, what about the fed expanding the balance sheet. that's the same as cutting.

>> you know, it's interesting. when the fed chairman says at a press conference when asked what would make him raise rates and he says you're going to need inflation to be meaningfully above our 2% level it's at 1.6% that's a long way from 2%. they're not raising rates for a long time so they'll handle all these repo situations with qe or not qe i couldn't care less they're adding liquidity to the system and that's the message. >> and what about the possibility of their cutting what would make them cut >> i don't think that would be great, but i think it would be, again, weakness in economic activity that's not showing up or some kind of sign of systemic stress if you remember, most of this year we've talked about how we're replicating 1995 where the fed went from tightening february 1st to easing in july and then in december, up 34%

it was because of the greenspan put. powell just made that look like nothing. he literally said it he said we're not going to raise rates for the foreseeable future, and i think that really is what it comes down to. >> tony, with the multiple you're talking about here, it makes me curious, is that telling you exactly less macro, a little bit more into my world, where do you go? are you buying multiples well below 22, something in the 15s, 16s, much more attractive? >> valuations are funny. this whole game of targets is stupid it's a guess of a point in time where it should be it could be 21, 20, it could be higher so rather than look at cheap stocks, let's look at the history of what happens when the economy is recovering from those money recessions that we've had this cycle it's offense, it's industrials, it's information technology and it's financials. and just to be crystal clear, last time i was on the show, i thought the market could go for a pause on the upside.

so kaern and i and everybody else is on the same page there's a difference between chasing a euphoric market and being negative i wouldn't chase the next tick until we get a little bit of that overbought hit. >> aggressive there. i know you're called the biggest bull but we've got tone eat tiger. >> i hope to be said that i have the best process versus the biggest bull. >> that's the best you can come up with? by the way, when i was a young man, frosted flakes flying out of our kitchen i'm sure you were a frosted flake guy as well, no? >> lucky charms. >> next you'll call me bald guy. >> on this set you're in good company. you're fine. tony dwyer -- >> what's that supposed to mean? >> thank you very much >> all right, guys so let's trade it. tony should leave because now is when we slam you guy, what do you think, a little

overly aggressive by tony? >> no. tony has been spot-on the last two years he's been coming on this show. so i'm not going to cast any aspersions to what he's saying when i'm saying it's going to trade down to 3030, it's based on a couple of things. without getting too wonky, he mentioned the repo market. there's clearly something awry in the repo market for the fed to step in the way they have maybe it means nothing or maybe it means something. >> guys referring to, the smartest in the business, these overnight lends that the fed has been helping out not that it needs help but they're going to help out and, by the way, don't call it qe they spiked in september the fed came out and said we're going to put a band-aid over it in october to me it's easing. if they're easing, then you want to be in risk assets i do believe you can get that sell-off to that number guy is talking about. the 50 days around 3050 in the s&p cash but ultimately it's

still a buy. >> you've got the brexit vote, you've got the valuations priced to perfection, you've got all these oil issues we've talked about about the debt story i just wonder if people are pricing in the risks as much as they should be. >> even though the vix was up a lot today, i think there's still room to go. >> okay. so if you think that markets are marching back to some new all-time highs, you weather watch where you step because the chart master says there could be a giant trap out there carter worth is over at the plasma to break it all down. >> there are new traps they have been trapping and trapping and trapping. the industrials are a trap that keep on trapping the sector as you know is 9.2% of the s&p, 70 stocks, $2.5 trillion more importantly is what have they done? and the next chart after this table will tell us that. but on a 10-year basis, industrials have outperformed the market in three of 11 years. that's pretty shabby

and they have underperformed the market in totality or cumulatively so what we know is a higher beta area of the market that's giving you a very low hit rate and has not kept up with the market. this is highly cyclical area of the market take a look at the chart and this will really make the case this line that i've got here, that is the presidential election what you've had is the trump bump wall street, in its infinite wisdom promoted industrials and cyclicals as the way to prosperity and what we know is exactly the opposite this has been underperforming the entire way so, yes, they're up, but the choice of picking that versus the market has been an unmitigated disaster in fact, we are flirting with new 52-week relative lows and 9-year relative lows that's not a good setup. moving on, so here's the industrial chart itself. i mean it wants to break out

in fact look at this line. it has tried to break out. just recently it in fact pushed above that ever so slightly. yet it was rejected. now, the real risk of course is that it ends up being something like this. no one can know that on its most recent attempt to break out, it has failed finally, let's look at the xli, the etf that you can use to trade this now, this is a very precise sequence an uptrend and a break, down 8.9. an uptrend and a break, down 8.7. an uptrend and a break, down 7.8. and that's just what happened here we've got a nice zoom. we have just broken again. does it have to go down 7 or 8 or 9 no, but it's a pattern and the sequence calls for lower i think you sell industrials and they haven't been working anyway. >> ge is a big part of that of course carter worth, why don't you come on over, guys. >> will is bringing carter his

chair, and this is will's last week >> you look good, will. >> what state are you from >> the great state of minnesota. >> so minnesota mining and manufacturing was a $270 stock in january, up 2018. it's down 35% since then but now the s&p effectively trading an all-time high. in my opinion it closed to 18 times so i'm sort of in the carter camp. yes, triple m has bounced a little bit but the trajectory has been lower for most if not all of these names. >> and i think china is hurting them as much as anything, right? >> dover looks great, some people like the rails, i don't some people will try to bottom fish and maybe find a ge, there's nothing wrong with that. in aggregate, i think the irony is this has literally been a drum beat year after year. in january of this year, they will promote this area of the market because pmis are up

every january it's the darling and every year it's a dud. >> to the tariff point, we always talk about retail getting hit by the tariffs these companies have massive industrial inputs. this might be the group that no one talks about because it's not sexy talking about ethylene and things like that, but this matters when it comes to the tariffs. >> it does matter, but to the bigger message, i think i got from carter there, do i just buy the tech names, do i want to just buy the consumer discretionary names? and what happens to those names? because longer term i think you're better suited just overweight in there instead of energy, instead of industrials but the question is what happens to those top sectors in january when the industrials are getting hit? do they get hit less >> the point is, one, you've got to pick your right stocks. while this is popular, it's been not right to do. you see it in materials and energy does that mean you crowd into

tech that's the market's risk game of musical chairs being played and fewer and fewer chairs are the right place to be until those give away as well. >> the industrials, the way the s&p groups them, american airlines is in there, fedex. hardly industrials co-part up 84%, top industrial. coming up, wow, could be a good day for investors for shares in stitch fix also made an executive change. we'll tell you about that and talk what's ahead. plus the biotech boom. two big deals in the space and surging stock prices we'll break down whether there's still good opportunities there we are aalysivoms wa le fr new york city's times square much more "fast money" after this it' man nature to hate problems. but why is that? problems inspire us to re-write the rule books. the history books and future books. that's why so many people work with ibm on everything from city traffic to ocean plastic.

from flight delays to food safety. problems even got us to the moon and back on one tank of gas. and who knows where they'll take us next.

welcome back to "fast money. toll brothers and stitch fix are both on the move after reporting their numbers. we've got full team coverage kate rogers digging in on toll brothers rahel, kick it off. >> stitch fix had warned that this would be a softer quarter but results were better than expectations and investors like what they see, shares are up

last i checked, about 10%, almost 11% they saw its revenue jump 22% and announced a new president. her name is elizabeth spaulding. she comes from bane and company's digital practice stitch fix uses thousands of stylists who curate shopping suggestions for its clients so not a surprising move there. stitch fix also announcing that its cfo is leaving the company a permanent replacement has not been named the conference call is happening right now. they have been growing out their kids business and growing out their men's business also saying they're devoting more engineering resources to expanding and keeping up with the demand for some of those initiatives and talking about some of those personnel moves. so we'll jump back on the call and get a lot more detail about the quarter and the company's future tomorrow morning when we hear from the stitch fix ceo

katrina lake appearing exclusively on "squawk alley." brian, back to you. >> rahel solomon, thank you very much karen, let's trade in. the revenue number was in line, slightly better, eps pretty good, customer ads pretty good nobody seems to mind that the cfo, the second most important executive, decided to quit. >> i don't know if it was decided to quit. i don't know if it has anything to do with the other move that they have made i'm not sure what to make of that. >> he's pursuing other opportunities. >> i don't know what that means actually, whether that's a graceful we fired you or he's quitting, i don't know so i think that there was a lot to like. the thing that's most interesting is stitch fix's short interest is enormous a whiff of a beat, which they did, they raised their guidance also and you've got this enormous short, 47% of the stock. that's painful. >> so you think this move that we're seeing overnight, probably tomorrow, could be a nice pop, short covering you've got to buy the stock.

funding ment fundamentally long term are you -- >> it's really expensive >> 214 times forward earnings? >> they're not the only ones that do it they back out compensation expense. everyone does it, it's not just them. >> and if there was ever a business, it could be amazon everyone thought this was the business that could have been the most susceptible to having amazon take their cake but revenues as you started off the conversation, revenues look good the users look good. but i think karen's point, 52% short interest, that's crushing a lot of people. but that is not a long-term strategy for growing your stock and having the stock move hig r er consistently. >> have you used it, guy adami. >> somebody purchased something for me from stitch fix. >> i hope it wasn't that tie >> i like this tie a lot. >> if you don't buy anything, they sending you a box, they

have to eat that cost of inventory. >> they do quickly. clients are up 17% year over year and average profit or average cost per person was up 9.5% in terms of what they're spending the numbers are real the short interest is there, which means i think the stock could go up 10% or 15% from these levels >> by the way, guy adami, i love the tie. >> i think it's a nice tie. switching gears, let's take a look at toll brothers. kate rogers has more on the home builder. >> i want to see guy's stitch fix order but more on that later. still, toll brothers out with beats on the top and bottom lines. home deliveries came in at more than 2600. that's a big beat. in a statement douglas early jr. said housing starts were at the highest level since july of 2007 consumer confidence is healthy,

household formations are strong. we are excited by our prospects for fiscal 2020. he added the company is positioning itself for growth as it expands into new price points, product lines and geographies and said the company is in demand the stock is actually lower, it had been up more than 3.5% year to date up more than 25%. the conference calm is tomorrow morning at 11:00 a.m we'll bring you any headlines tomorrow once we get them. back over to you. >> anybody want to trade -- pete najarian >> john and you, steve, have been all over this housing market for a very long period of time it's amazing the numbers that these guys continue to put out there. do we all think interest rates -- we were talking with tony about interest rates and where are they going are they going higher? probably not they're going to different geographies, different price point and the rest of it when you really look at this business, maybe it's pulling

back because a little too much enthusiasm right out of the gate but i think the longer term for toll right now is still high. >> the stock is up 26% year to date, that's a pretty good return but it's one of the worst performing home builders of the year see, they're shifting their model a little bit so the average selling price, the asp should start to move down because they're moving out of cities. >> they have a connotation as being a higher ending buyer, not a first-time buyer so those names are up over 80% year to date you don't get that bang for your buck when you're talking about millenials and household formation growing. you've got to get first-time home buyers and moving up home buyers and toem toll is not the place to be for both of those. >> it had a good year but a disastrous year last year so it's still well off its high i like the space, though i know those guys like it a lot too. >> for more on this afternoon's big earnings movers, head over

to cnbc.com. we've got much more coming your way on the television. here's what's up next. happy birthday, coca-cola. the soft drink giant celebrating its centennial on the new york stock exchange will any of this year's big ipos stand the same test of time? and later, it's a bird, it's a plane. no, it's the cyber truck tesla's divisive pickup making an appearance on the roads of los angeles. what people are saying about the new vehicle. we've gotht ose stories and more when "fast money" returns. - at southern new hampshire university,

we believe in education built for all people. - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is. - you will march from this arena and say to the world.. i did it. - [woman] you did it. i love you. - [graduate] i love you too. welcome back this is a cool story coca-cola ringing the opening bell at the new york stock exchange that's not even the cool part.

because it's now been 100 years since coca-cola has gone public. wow. congrats to them that got us thinking if coke can do it, who else can? check out some of the big-name ipos this year we've got winners and losers it's names like uber and levi's and others so our traders are looking into their chrrystal balls to predic which might stand the test of time and last a full century or maybe there's nobody. pete najarian kick it off. >> oh, there actually is tea and alcohol have been around 5,000 years. coffee about a thousand years. so i'm going to china. >> have a safe trip. >> who's taking on starbucks over there >> luckin. >> boy, you are on top of this thing. these guys are going so fast they already got themselves up to 2,000 stores. they're moving toward 4,000 stores they're talking about 6,000

stores by 2020 luckin coffee is going to be around a hundred years because they will take over china, steam roll over starbucks and that's going to position them for a long, long, long run. >> they have a lot of gains. >> listen, the price of wholesale coffee beans up 36% in six weeks. >> the beauty about coffeeis, prices go lower and you can still raise your price. >> for me it had to be a tech company and it had to be a company that was over $5 billion in market cap. it's dynatrace for me. they had to be a leader in application performance monitoring, which is where they are. nobody knows what that is it's so techie right now. so for me it's dt. got to stay with tech and stay with something that can be around for the next 100 years. >> this one is actually not going public until i think tomorrow you would know better. >> it's priced i just happened to encounter the guy that helps run it.

>> so that's saudi aramco. they're only selling a teeny portion of it. i wouldn't buy the stock because as the owner of a tiny, tiny percentage of it they'll do whatever they want however, with the resources they have, that valuation, they will evolve i don't know into what they will evolve i think they stand the best chance of being here a hundred years from now. >> the energy minister told me at the press conference, i asked him a question and he said it's the proudest day of his life and it will be worth more than $2 trillion he was talking up the ipo and we ran those comments on friday guy adami, who is your 100-year trade? >> well, you know, i'm a big social media question. if you can look at the tv screen, that is my pinterest page i encourage most of you to come and check it out pinterest. and you're like you're out of his fricking mind, guy yes, i am but they keep adding users. their clients are very engaged

advertisers are making their way there. i think pinterest will evolve and 100 years from now when i'm 185, you're going to be talking about the pins despite the horrible quarter they just came off of. >> i hope that was some style. >> audrey help burn with a hat. >> today's mystery chart shares of this company nearly tripling today on news of a multi billion dollar takeover deal who could it be? plus get your motor running or at least change the spark plugs. autozone reporting the results before tomorrow and one trader says there is one strategy that has been profitable more than 90% of the time heading into -- that's almost all the percent mid we're going to get that cong up on autozone when "fast money" returns what i love most about being a scientist at 3m is that

i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. we are solving problems that improve lives.

welcome back to "fast money. another week, more big biotech buyouts. merck acquiring argule both deals are valued at $2 billion and both get access to cancer treatments.

investors in both companies have gained in a year more than 430%. obviously including the buyout premium. but they were on fire before it. news of the deal set the xbi rallying back to its highest levels in more than a year with all this wheeling and dealing, can the biotech breakout continue? >> 100%. and this is not speaking in a vacuum i know pete has been talking about this we've been talking about this space now literally the last couple of years and mentioned names. amgen continues to make all-time highs, reasonable valuation, tremendous pipeline. just some good news on the fda front. i think amgen can go higher fro here there are deals taking place and i think the stocks relatively speaking, the ones with the pipelines, are still very inexpensive. to answer your original question, absolutely, yes. >> i think we're back to those days where people are starting to look for their -- they say it

would have cost us at least that much if not more to get to this point. talking about a billion and a half, $2 billion to get to some of these the area everybody wants to go, roche made a deal, novartis made a deal there's all kinds of deals anywhere around $9 billion and below. there are companies out in the biotech space that will stand alone. i think it's the amgens of the world. >> they're huge. >> biogen still trades at a ten multiple this is a biotech and they're still involved and hoping for good results for alzheimer's. >> i've got this big old screen here, steve grasso, that has 100 plus biotechs. about half are up and half are down some are down 60% and 70%. if you're going to invest in individual stocks in biotech you better, a, know what the heck you're doing and, b, you're going to be taking a bit of a risk because if that drug does not work at any -- >> it's binary this is exactly the way i feel about investing in this group.

if you buy the ibb, the etf, the number one holding is amgen, then vertex and biogen you're not going to get the days where you walk in and your fund is up 80% but you also won't get the days where you walk in and your fund is down 80%. the top ten stocks, and i think there's 204 stocks in it, are 54% of the etf so you're just like faanging it. you've got google and these big stocks, if it moves, they move but if they don't, you don't get that big upside. >> you could do xpi which is more -- >> why not pick a couple of good names. >> by the way, there was monstrous call buying in arqule a couple of days ago giddy up. >> ahead of a big deal >> it's amazing, isn't it? >> how hucky. santa fe just has a new plan

under its new ceo. we'll hear more tomorrow morning at 8:15 eastern time. a new ceo for canopy growth. our very own tim seymour will weigh in on the new hot head from vegas where he's at one of the biggest cannabis conferences in the country. plus autozone reporting earnings tomorrow. you may think autozone is boring it's not one options trader has a strategy that has worked 90% of the time mike khouw will join us coming up on "fast money.

all right. canopy growth providing a little medicine for bruised investors today. the group tapping david kline to become its new ceo and investors liked it shares up 14%. the move strengthens constellation's influence over canopy they're the biggest shareholder. despite all the hemp hype, it's been a tough few months for investors. canopy down 49% in the past six months on the toronto exchange joining us now from las vegas,

tim seymour. tim is long a number of names. he's the portfolio of a cannabis etf and sits on the advisory board for cannabis companies you can read all of tim's disclosures and after that we have no time for the interview sorry about that, tim. this is a guy coming from a major corporation adding a little bit of sort of, i hate to say it, adult heft to the industry. >> david kline has presided over one of the most profitable spirits companies from the cfo's chair. if you think about constellation's brands, this has been an emerging company in terms of where they found growth their foray was clearly very aggressive you can make an argument they like many folks overbuilt capacity, went after assets. there was a bit of a land grab i think you've seen in the stock where this has been a painful reality check to not only the company may or may not have bought assets that made a lot of sense and 1 plus 1 doesn't

always equal 3 but the gross margins have been some of the worst in canada. for some of the biggest players, it's not surprising investors have been very frustrated. but this appointment of truly a consumer product ceo, someone who knows the cpg world very well and someone who knows this company very well is very exciting i think he's the right man for this job. >> what does it tell you about the traditional companies involved in booze and spirits? will they come together and be enveloped in that same supply chain, keep the costs down, keep the distribution up? >> exactly, you're getting to branding, distribution, packaging. these are things that have made some of the most successful companies in the world in that space. it's what's defined their difference really if you think about the cannabis space, it's a consumer product. it's a cpg story and that's very much what i think they're trying to do at constellation brands. david kline has been very involved in this transition.

in fact he was named chairman back in november he was someone that certainly has been part of bringing other members of his team onboard. the current cfo, mike lee, is also a constellation veteran so for continuity sake this is an exciting time and i think people were waiting for this moment. >> tim seymour joining us live from las vegas, tim, thank you very much. up next, the boeing whistle-blower says that he raised the flag about the 737 max jet months before the two deadly crashes that have roiled the company. we'll get those details after the break. big boeing story, next (vo) the moth without hope, struggles in the spider's web. with every attempt to free itself, it only becomes more entangled. unaware that an exhilarating escape is just within reach. defy the laws of human nature. at the season of audi sales event.

welcome back to "fast money. we have got a news alert on boeing a former manager speaking out on the 737 max planes this all happening in the last few minutes. phil lebeau is joining us with more on this developing story. >> brian, these comments come from a whistle-blower who is a former boeing manager at the 737 plant in renton, washington. he will be testifying at a congressional hearing on wednesday about his concerns regarding 737 production, concerns that he says he brought to management regarding the

craftsmanship, the workmanship in the facility in rention however, we should point out none of the concerns that he brings up in terms of rushed production, employees being tired, none of them have to do with the mcas flight control software which is at the heart of the two crashes for the 737 max and that's really what the focus is in terms of the grounding of these aircraft and ultimately if they're going to be recertified having mcas be improved so as you see shares under pressure right now, publicly this is a bad black eye. there's an article in "the new york times." his comments about what he's going to testify to on wednesday will be getting a lot of play over the next day. he'll be at nbc nightly news tonight with more of his comments but again, none of his concern that he brought to the company were regarding mcas and the flight control software. more about what he considered to be rushed and shoddy production at the 737 plant by the way, in the article in

"the new york times" which has just been posted, boeing says that they took all of his concerns and complaints seriously. we're going to hear more from boeing and obviously from this whistle-blower, ed pearson, on wednesday on capitol hill. >> phil lebeau with an article there from "the new york times." guys, let's trade this it's another hit for boeing. apparently somebody else came out inspe out in "the new york times" and a whistle-blower says i've got concerns about this, this, this and this management now, oh, yeah, we took them seriously. >> and it seems like the reaction we're seeing right now based on that looks like it's teflon, right? once again, it's amazing all that's been thrown at boeing throughout this entire process and yet look at where the stock continues to trade guy, you say it all the time, but price is true and here's where the price is and it's down a little over a buck, a buck and a half right now you'd think that this news would hit the stock far harder. >> i think one of the things --

pete is right, i do say it all the time and it has hung in rather well. remember, the market is at an all-time high. boeing has gotten bailed out one of the things i've said it's going to trade up to 375 i think it fails when it gets there. i could easily see this, especially if the market were to make a move to the downside, trading back to those august lows, which is roughly 327 or so. >> steve grasso, does the ceo need to go i know he lost his chairmanship. >> i think he does have to go. from listening to phil with great coverage on this, i know he'd disagree with me on this, but if that 325 level that guy is talking about doesn't hold, we're talking about a stock that's back below 300. so i know it's already fed off of all of this bad news, but it seems like it's never ending i would not be a buyer here. switching gears, autozone is gearing up to report its results

before tomorrow's open now, the stock is up a whopping 40% this year. one trader in the options market founding a way to trade autozone using a strategy that he says has been profitable more than 90% of the time. that gentleman is mike khouw he is smiling. if you're right 90% of the time, mike, you deserve to smile he's in san francisco with the options action welcome. >> sure. so yeah, we saw about two times the average daily options volume in autozone this morning going into earnings. this is a name that typically moves a little less than 6%. the options market is implying a move of a little over 5% by the ending of the week the trade that i saw go on the markets today was something called an iron condor. somebody sold the 10 87.5 and the 12.85-12.90 call spread. both are expiring at the end of the week here's the thing, this is a

trade that is betting that the stock will stay above the 10.875 put strike and below the call strike if you look back the last 11 years, 44 quarters, only twice have we seen moves of greater than that magnitude which means this trade has been profitable 95% of the time somebody has put it on. so sometimes betting on nothing can really be worth something. >> wow i'd say 95 is betting on something, mike khouw. we love those odds great stuff there. pete, what do you think of autozone and earnings? and mike's options trade >> it seems like they have been doing everything right a lot of different industries where we don't talk about them nearly as often as we should. >> they sell wind shield wipers and batteries. >> and they seem to be doing pretty well and making money i like what mike is pointing out here remember, this would have worked in all those past times, but it

doesn't necessarily mean this has been put on in the past so we'll see how this really does play out. >> 11.70 they had trouble with in july, august it failed, traileded down so i can understand why people would use this as a level to sort of put on a position like this it makes sense i think it's probably in for another fail here as well. so i think there's a chance it trades down to that 1100 dollar level. >> for more options action catch the whole show friday's at 5:30 p.m. up next, your final tresad i was told they'll be the best of the week. >> bad information ♪ ♪ ♪

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all right. welcome back to "fast money. bob pisani is sitting down with the s.e.c. chairman, jay clayton. catch that tomorrow at 2:00 p.m. eastern time on "power lunch." time for your final trades pete, kick us off. >> jay clayton is a great golfer getting out of exxon and getting into chevron. >> apple, buy it on weakness.

>> yes, xlf short a little off of this huge bank run. >> guy. >> bad news, good price action what happened today, pete? macy's >> all right that does it for us. we'll see you ckba here tomorrow at . >> 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 i'm just trying to save you money. my job isn't just to entertain but to teach you call me at 1-800-743-cnbc. or tweet me at jim cramer. >> how in the world is it possible that the s&p 500 is