cinematic potential in carols ghosn's dramatic escape from imprisonment in japan. for a deal they need to go through michael ovitz, founder of the creative artist agency who ghosn has reportedly hired as an agent. he could make big bucks. i was going to say. >> carols ghosn, netflix and amazon are pretty hungry right now for creative content. that does it for us on "closing bell." >> "fast money" begins right now. live from the nasdaq market overlooking times square, this is "fast money." tim, karen, steve, and gaia. the nasdaq and s&p 500 marking record closes today and all three major indexes post gains there is a different story brewing in the bond markets. should you be worried? we will answers. plus wheeling and dealing in

the retail space l brands getting ready to offload victoria's secret maybe. what it means for those stocks. and pete joins us from the home of the minnesota twins for a fast pitch what's got him so excited about this name. it's a mystery chart you will have to stick around to find out what it is amid the coronavirus outbreak we will start with apple. the iphone could face big production troubles ahead even as manufacturer foxconn got the green light to reopen two of its chinese factories today. josh lipton is in san francisco to lay out what's next for the tech giant. >> so china is a key link in apple's supply chain and investors are focused on foxconn specifically and for good reason it is the largest manufacturer of apple devices its factory is reportedly back open for business. only 10% of workers are apparently back. still that is important because this plant is described as the most critical iphone production site

it's located about 300 miles from the epicenter of the outbreak in wuhan, and reuters now says that another foxconn plant in shenzhen is coming back online, too. set to resume partial production but will apple be able to make enough phones given the challenges to meet demand. some analysts think the company abo will ship 10% fewer phones in q1 could this disrupt plans of that low-cost phone expected next month. china is also a key consumer market for the company apple operates 42 stores there the company has extended store closures they say the online store remains open the situation is very fluid. that's why apple issued that wide and expected q2 guidance. back to you. >> i have a question for you, josh can you hear me? >> yep. >> so how much inventory do you think they have? how much cushion do they have for this production slowdown

>> that's a great question that's probably going to depend vendor by vendor i think it sort of gets to the broader question though. it's hard to gauge for analysts and investors because you are trying to decide the length and breadth of this, therefore, how much of an impact it has i think why it makes it cloudera for investors right now. >> josh, it's tim. i am hearing two weeks roughly of spare capacity. the question is ultimately pushing out demand is one thing. is there any sense that there is fear of actually rerouting demand in other words, this is a temporary hiatus this is going to effect february we can see what it means for eps sensitivities. does it do anything for demand >> first of all, that is certainly -- you heard bulls come on cnbc some of that argument as well, doesn't that push demand forward, you know, consumers wait to get their products that's interesting to talk

about. what if this goes on longer than people think, how would that affect china's economy, disposab disposable income for consumers. last time apple report had a chance to talk with tim cook, we talked in a different way about the airpods pro. i said are you afraid if keep can't get them, do they turn to rival products he was not concerned, said simply he makes such a materially better product that he is counting on costumnsumers waiting until they get their hands on it. >> when you are thinking about a name like apple, and josh brings up a good point, if you can't get your ear pods write away, maybe you wait we don't know how long temporary is, right? but it seems apple has done a better job of dealing with any disruption when it comes to china, trade war, now coronavirus. >> and to tim's question, thinking about rerouting around the supply chain, around china already. so i think a double whammy for them not --

they can't flip a switch nor can they do it with trade. i am one of those bulls who thinks that ultimately they still have demand. whether it's the demand now or whether it's a demand one month, two months from now, you have 46 billion in services ref knew. >> i think five or six years ago this is devastating. but the world has changed a lot, passive investing is now the norm i think money continues to flow in the concern for me for apple so none of this, it's just vags and 21 times next year's numbers, this is historically at the deep end of the pool for them the market doesn't seem to care whether it's the broader market or apple at some point it does and that would be my concern. >> karen, you were asking about how much inventory do they have, what's the cushion there what if they close the factories

again? they could say, never mind, never mind. >> 10% have come back. i don't know how much production they can do. they are lucky on timing this quarter and next kwuquarter areh lowest earning quarters of apple. that's a little luckin coffee. so it's oney so it's one stretched. >> the stock has done nothing. think about the earnings they had. think about the opportunity to run into weakness regardless carter going to talk about megacap. apple leader of the pack we have done the numbers w up 90% from june and yet you throw coronavirus at it, it's sideways so they had a two-week buffer going into the lunar new year for suppliers and beyond that is where you start to wonder what it means for demand. i don't know why demand changes based upon a delay. >> what i think is important is the conversation around multiple

and multiple expansion you are having the same story with regard to disney. when you look at a company that used to be hardware dependent and now you have the services arm of it, i think analysts are having a tough time trying to figure out what that multiple should be. and i think that's why it's gone sideways i think that's why it's up 10% year to date. >> what do you think about some of the suppliers let's say apple is back online, even if it's 10%, what about everybody else they can't make the phones without the parts. >> that's the problem. if you want to play the 5g, that's what's embedded in this apple bull story, under pressure considerably, i would rather buy that looking for the rebound in that name than place these other tech stocks that are parabolic to the upside, like micron or amd or texas instruments for that. >> the semis as a group, that's a chart that looks a little more vulnerable remember when we were talking trade war and talking all the things that should have

re-day-old semis last year, they significantly outperformed i think that's a case where seasonality could be something putting a little bit more fear on the chips and, in fact, i think the chart looks a little bit different here at least in the short run. it's hard to say that anything looks too bad all things considered. >> karen, you said you were a little nervous about your current position are you sitting, not making any moves? >> i am sitting. probably look to sell some upside calls, but i am not going to sell because my general view on coronavirus is that most investors will look through and a lot of companies will get a free pass on a weak first quarter and maybe even a weak second quarter those are the lowest quarters for apple. it is the 5g story, so we won't see that until later in the year anyway i am hanging on. >> good point about the free pass maybe you should toss some other things in there. a little harder to figure out. the charts could signal a battle brewing in big tech. carter is at the plaza and he is going to break it down.

>> thanks. so the subject here is concentration of capital and the risks or the benefits associated therewith. the first chart is simply that, the top two stocks in the s&p 500. it's apple and microsoft they have just now reached 10% of the weighting of the entire market the last time we were that high, in fact we are higher now, 9.9 it was the actual peak in 2000 actually microsoft was one of the two. it was g.e. at the time. g.e. and microsoft then. this time apple and microsoft. but it gives to mind whether we are having any pause or dip even here we dipped, we dipped, we dipped. it's literally straight up no fear at all, complacency, and that is an issue now, i wanted to look at apple soft, meaning those two stocks versus amazon zugel. this is like out of dr. seuss, right? a beginning of the year report six weeks old and we are sticking with it the bet is that amazoogle is

better than apple soft this is right off a computer screen i want to show it to you further back the two baskets a little further back and what we have is a circumstance where one has broken out and one is just now breaking out here is apple soft coiled. look what it did fantastic. why not find something that is about to do what something else has done look at amazoogle, it's sitting right here this is a better play if you are in super cap names dominating the market. >> what do you think >> it's interesting. the first thing -- i know tim thought of this as well. i thought of pork chops and applesauce. >> that was peter brady. i will tell you, i mean, wow

>> my mother made the worst pork chops of all time. getting back to carter - >> sorry to hear that. >> with that said, i am with carter on this one it appears as amazoogle is -- i would be taking profits in the former, applesauce. >> what's so ironic, each of them are bigger as a sector, amazon and google, amazoogle and applesauce are bigger than utilities, bigger than energy, bigger than materials. their their opponent tease and they were quite correlated until the breakout amazon is just now breaking out. it's a better bet. >> can i call it amazoogle >> yeah. >> it's a lot for me if you think about the rotation, look at the amazon by itself outperforming the triple qs by

10% in the last 12 days. that's massive rotation. i think people were underweight amazon going into the earnings numbers. overall something to be concerned about. this reminds me of what we were doing, the conversation we were having in much of 2015 when we saw that the market breadth, first of all the lack thereof, was only in megacap tech stocks. because we were seeing global growth concerns, a lot of concern on earnings overall. you saw amazon outperform the triple qs or s&p 500 i should say by 40% it's the same trade and it's a trade because megacap tech is defendable on valuation and in an environment where we don't have growth these are names that i think will continue to outperform. >> karen, what do you think? amazoogle or applesoft >> well -- >> neither one >> well, alphabet is my biggest position i have to be in the amazoogle. >> you are in the amazoogle. >> fine. i said it. i'm amazoogle. that's the first step.

>> so google was up -- i don't know why it was up today i didn't see anything -- >> i mean, $29 - >> it sort of -- if you look at the super cap names, it lagged microsoft and apple. apple is a little money coming out. but the big play is, of course, amazon just having been sideways almost two years and just breaking out. >> what do you think about -- have you factored in any of the valuation back then? does that come into it at all? you are technically based. >> the valuation is much different. the multiple, the microsoft trading now -- microsoft is trading 35 times trailing, right and then more like 60. g.e. was incredibly expensive at 40, 45 times now, valuations are much different. rates are much different there is no comp in that sense there is something known as moral hazard and you have a lot of people counting on a handful of names that if it goes wrong the market sustain there is no amount of money you can take out you have amazoogle

and put it into -- what? foot locker? >> retail is down 12% this year. the disparity between the trip-qs, it's not even close. >> this was fun. amazoogle and applesoft. i am going to have to think that through. >> pork chops and applesauce. >> flip it around. switching gears, let's look at shares of slack after ending the day with the biggest gain since going public in june it popped during the day after reports that ibm moved the entire work force of 350,000 employees to the slack platform. in a filing about a half an hour ago slack clarified that ibm has been its biggest customer for several years. and that it's not updating its financial guidance so now you see shares down about 7% after hours after reopening so a clarification, yes, ibm is an important customer, but it has been an important customer. >> yeah. you know, it's interesting they put out an 8k, which they probably didn't need to do

they don't need to comment on a business insider story i appreciate that they did because it moved the market. however, now does it create the precedence for them that anytime there is a rumor that moves the market do they then have to comment on it or clarify it. i don't know. >> or people think there is a conspiracy the gentleman to my left probably thinks when that stuff is out there that maybe all of a sudden you start to see something. and i don't want to -- you don't make up rumors, but m&a is always out there with a name like this. the idea of ibm is doth he protest too much >> a case-by-case basis going forward. >> coming up, we are bringing you not one, but two big calls of the day what's got analystists so pumped up on invidia and fedex? >> he may be one of the biggest bulls on wall street but tony dwyer thinks there are risks out there. we will find out what is keeping him up at night. listen to us on the cnbc app

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money. we have breaking news on cbs sports latest move

julie boresen has the details for us. >> that's right. cbs sports making a big move into sports betting. it won't accept bets itself, rather it announced it's partnering with william hill, the data partner across all cbs sports platforms they plan a rollout during the fantasy football season. the partnership gives cbs sports access to william hill's odds experts and 140 sports books the source tells me william hill will be compensating cbs to get access to its viewership william hill benefiting from the ability to promote wagers to all of those cbs sports viewers. this is just the latest move and a wave of sports gambling deals since the supreme court ruled in state banquet that states could legalize gambling. some 20 states have legalized sports gambling since that supreme court ruling. >> do you care about this if you are looking at viacom, you want them to dip their toe into

sports betting >> sure, it's a huge business in that area. viacom, if you look at the chart, is the chart is horrendous you have a series of lower lows, lower highs, it's down 20% roughly year to date so if you are looking to place a bet on it -- >> ha ha. >> got it. >> literally, maybe you take a flyer out on the price level for me the technicals don't imply i should be putting real capital at work. moving on here shares of nvidia surging over 4% after rbc raised the target on the semi stock the chipmaker will hit $301 a share. that's a street high for that name and it is our call of the day. guy, what do you make here what about nvidia specifically >> i don't mind it i think they are late. i definitely think they are late valuation is always a concern. people say the growth is there, but now we get towards levels we last saw in the fall of 2018 and if you recall that november, they reported a quarter that was

horrendous and the stock was cut in half. not suggesting that's happening here but this is towards the tail end of the stock move. maybe you have 10 to 12% upside in the stock to get back to that level. i would be more inclined to take profits than buy the stock as a new long >> i think with nvidia the fact that they have enormous exposure to gaming and some of these again leading edge technologies that i think are competitive, but they have at least an early mover advantage. nvidia got ahead of itself there was a lot of garbage in a bit kwoin. i think that cost the stock for six months there was a little too much fluff in the game. end of the day, the valuation has been trading between 40 and 60 times and you can't really get that upset about it in this market. so, again, at times we have seen nvidia be an albatros to own in a market that was punishing high multiple stocks. it will again. in the market we have with liquidity is running wild, it's hard to see why nvidia is not

going to continue to run. >> interesting up 70% in six months that's incredible to think about that. well, in case one wasn't enough for you, we have another call of the day. two for the price of one fedex getting a boost after analysts upgrade today buy saying the bar is low for this stock after fedex popped on friday as it laid out plans to increase delivery efficiency and lower costs. fedex up over 5% since then. what do you think of this one? >> you i think delivery, efficiency is going to attract people everyone was betting against this name. i think the ability to have lower expectations going forward, i would rather, mm-hmm, fedex over u.p.s. if i was forced to choose i think the bar is so low on fedex, you could probably walk over it. >> even though u.p.s. has been the winner over fedex because the bar a low, more room to run? >> i like fedex. i have been i guess early wrong, something, kind of in the stock for the last six months, and it's largely sideways.

if you think about the starts and stops the stock has had, the fact that they are losing ground, they have been loathe to do this, taking advantage of the ground efficiencies is good news for the stock. it's been challenging the 200 day. this is the third time i like what happened with this stock. the outperforms relative to u.p.s. in the next three to six months is a given base where these stocks came from a lot of bad news in the stock fred smith is back to prove it to them mode and i think he will have to. >> i was a long-time fedex holder and threw in the towel and i think that this is the opposite of the nvidia call. this is so bad, the risk/reward is so compelling, expectations are so low, that the risk/reward sets up -- and that may be true. i feel like with the slowdown, i feel like a u.p.s. will be able to handle it better. fedex is having trouble -- without any coronavirus, without any disruption, just on their own. so that's where i chose. so i'm on the other side of

u.p.s. over fedex. >> we actually have more numbers out of china on the coronavirus outbreak let's get to meg. >> we are getting numbers out of hubei province, the epicenter of the coronavirus. the new case counts are lower than we have seen in previous days 2097 new confirmed cases however, the number of confirmed deaths is a higher number than we have seen recently, 103 that brings the total count of deaths in the coronavirus outbreak to 1,000 total. we will get more numbers out of china thchl is just for hubei province later tonight and public health officials are careful to say just from one or two days they can't tell what the trajectory actually means and they are saying right now they are keeping their eye on pockets of activity in other countries where they are starting to see some limited spread from people who hadn't traveled to china and that they have a window right now of potentially stopping potential sparks there back to you. >> got it. thank you very much for that

update. we have got a lot nor "fast money" coming up here is what else we have later in the show after the break. >> u.s. stocks seem to be shrugging off coronavirus fears, but bond investors are seeing a different story. who has got it right and what's that mean for your portfolios? and later looking for some retail therapy how about a couple of big shopping deals that could change the landscape for the sector we've got those stories and a whole lot more when "fast money" continues. find the best instructors in the world, and tie it all together with a world-class software experience. we ended up creating, as you all know, so much more. peloton is truly a category of one and we're just getting started. now, let's do this. together, we are going further than we ever thought possible.

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money. stocks rallying again today with the s&p 500 and the nasdaq closing at record highs as investors shrug off coronavirus fears. but the bond market could be

telling the real truth about the market sentiment and it's not all that pretty. steve liesman is back at headquarters with the details. steve. >> gdp estimates averaging just 1.2%, and that's down nearly a point from the fourth quarter. and with just a modest bounceback expected at 2% in the second quarter, the downgrades come mostly because of the coronavirus and the shutdown of production of the boeing 737 max. bonds seem far more concerned about this than stocks the ten-year yield is off almost 40 basis points since the beginning of the year. the s&p 500 though remains up almost 100 points. jp morgan writes in a piece rigged market are sending

warning signs creating renewed diskelkt between rate and equity markets. what we find complacent is the idea among -- equities might be sustaining their levels because of belief the fed will step in later this year. the rate cut is built into markets by the summer. we will learn how realistic that is in testimony this week from fed chairman jay powell. back to you guys. >> thanks, steve 1.2% the spike is high. our guest says the market is in a waiting game they will tell us what he is worried about now. are you worried about the bond market >> yes. >> okay. >> i'm worried about the fact that i have no idea what to do tactically right here. it's one of those rare times where we can come on and be confident. i am not confident in either direction. what's interesting, courtney, when you think about the markets telling us something because it's a new high, i felt stupid for downgrading january 20th for

neutral, i did it on the show, the bkx, the stocks, the emerging index, basically everything is down from that point outside of big tech. so with technology being 25% of the s&p weighting, i'm okay to bring it down if you are overexposed to that to a neutral territory. i think we sit and feel out when the rest of the market starts to lift up. >> so you are worried about everything but tech? >> no, no, other way around. i think everything else is correct. >> everything else is correct -- >> it's correcting like the bond market is telling you. with the bonds at 155, commodities relative performance is horrible. small cap relative performance is horrible. the bond market is telling you, the treasury market is telling you that the cyclical trade has gotten pushed out a little bit but i want to be super careful i have said this every show.

the last thing you want to do is be negative when you have an easy fed, corporate credit, the moody's bwa index at the lowest yield. the lowest level of investment grade raising it as much as they want >> sorry, i'm confused i agree with what you are saying and those have been death. about you are you saying they are interesting now that they pulled back? >> they are getting more interesting, yes they are getting more interesting as you work off some of that condition that sat there and as the market is discounting a lack of growth sorry to cut you off. >> no, no, because it goes back to my analogy to late 2015 if you think about what was underperforming, everything that has been underperforming this year, throw in industrials, steel companies, throw in, you know, brazil, ewm, other parts of the world, is there anything fundamental behind that? >> i think it is this expectation that you are in a

global slowdown and you don't know where the end is going to be i wanted to make sure it's not that the s&p is just up so much because of cap tech that everything else is underperforming because of the -- that was great what carter did, whatever the heck he called it. >> amazoogle. >> amazoogle right. whatever he called them, they are ripping, right so i used the equal weight s&p against those other areas and they are still underperforming it's not just the two biggest names making it happen everything else is underperforming, which is telling me that, you know, we are just kind of in a digestion mode. >> how confident are you in a convergence of the out of favor with the in favor versus the out of favor just continuing on the path that it is leaving the -- i mean the in favor continuing out of favor leaving the -- those names in the dust? >> we are all too familiar with algorithms and all the fun stuff that works off of momentum you are going to have to shift that to turn it. you are going to -- like you have earnings momentum, you have

upside surprises and price momentum in these big cap stocks the kwaup the quants are all over that it's really -- i am not a buyer of value versus growth anymore, karen, because i think there is so much passive investing that value stocks have become event stocks like they could have great fundamentals, but the only thing that gets them to rip is a money manager like you that sits six, 12, 24 months and have that catalyst that makes it rip look at amazon even amazon sat there for a while waiting for the quarter, it got the event, and now it's ripping. so i think it's more catalyst based than style based. >> thanks for being with us here today, being honest how you are feeling or not sure how you are feeling about what's going on right now. >> thanks. >> thanks for being here. tonight 7:00 p.m. eastern time catch our cnbc special outbreak coronavirus where we will give you the latest

developments on the virus tonight 7:00 p.m. eastern time coming up, we may still be a couple months away from spring training, but steve is ready for baseball with his fast pitch and if his idea is a home run. >> couing ntdown to earnings from hilton. options traders are trying to protect themselves from coronavirus. back-to-back no. uh uh. is it homeowner's insurance? no... uhuhuhuh! is it duck insurance? nope. ahhh! do they pay me money directly when i get sick or injured? yeah. aflac! you got it. you know aflac! boom! get help with expenses health insurance doesn't cover. get to know us at... aflac dot com. high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes

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welcome back to "fast money. time for fast pitch. and this one's coming all the way from minnesota joining us from minneapolis with the one name he says is a total home run what do you got, pete? >> well, courtney, i got united technologies it's an interesting pick because of the fact this is a stock that literally came off the 52 week highs. greg hayes, i love the ceo i start with the management. greg hayes came in and said we are going to be bold and we are going to be big and make acquisitions they did exactly that. they also have sold off some pieces scoreski gone. the huge acquisition of rockwell collins was massive. then all of a sudden the next thing they do is go with raytheon to create the biggest behemoetf outside of boeing outside the industry i love how aggressive this gentleman is he has been with united

technologies since he started off in the business world after he got out of purdue university. he started off, they have been bought, they have been bought, they got bought by united technologies, he has been there ever since, done an unbelievable job as a ceo and has been very, very aggressive. that's important in the markets we are in. he has an exact idea of where this company is going. the next check i'd like to put out is on the fundamental side, when you look at this company, it's trading at about 17, 18 times its earnings if you look at the forward, it's even less. as a matter of fact, when you look at about a nearly a 2% dividend yield as well as free cash flow, this is a company, especially with the raytheon deal, by 2021 they expect to have a free cash flow of somewhere about 8 to almost $8 billion so fundamentally i like it i love the management. and then their growth. well, they grew last quarter with the earnings per share up 8.5% the revenues is up 8.5%.

this is a company that they are dead focused on the aerospace world. now they are going to be bringing in defense. so that combination i think is going to be something that's going to be able to grow together and they will get rid of a few more companies in the hvac world that will give them more money a little bit's gonna come off fairly decent size debt they put themselves in. the cash flows are incredible. for those reasons i think this is a stock that right now -- call it about 16 times is way too cheap and i think there is plenty of upside from here. >> pete, how much of this is really about around those strategic initiatives that they are making where they are acquire, they spin something off, and they are really just creating some free cash flow for themselves is it more about that, because the chart looks amazing to me, but how much of that is just the strategic initiatives that you are seeing and i'm seeing? >> well, i think it's a combination, steve

and you know as well as i, we heard from trump, where is the spending going to be going, right? defense. they are positioning themselves, i think, to be in a perfect spot right now. and i think when you look at what greg hayes has done, very strategic. they are trying to become a company a little bit different than what they were which is getting rid of a few things, otis elevators, all the rest of that, and push themselves right into where the money is being spent and where i think -- by the way, they are growing their margins right now, steve so the bin salman combination oe growth they have got, this is a company that very easily could go up another -- i am not saying 200, but i think 175, 180 is not out of the picture. >> very interesting. we don't have time for more questions. but y'all have to vote tim, with you, buying this fast pitch or not >> yeah, glad we are playing ball one day, six hours to pitchers and catchers i am buying it, pete the cost savings is about the

margi margin -- that's the new york met pop tins the mets >> i am a buyer as well. buy it before the otis elevator leave. >> nice. >> clever. >> i see i am know, i am not very good at art. i am a buyer, pete. >> cre christmas tree. >> that was one of the best remote pitches i have seen out there. buyer. >> and i'll round out, i say mo-mo is your friend 4 for 4. i don't know if that's good or bad. you never had a 4 for 4? >> sorry to hear that. >> good point, good point by you. always - >> what a good guest pitch 4 for 4. thank you so much, pete. you heard from the traders - >> thanks. >> now it is your turn vote in our twitter poll cnbc "fast money." tell us if you love pete's pitch on united technologies still ahead, two retail deals shaking up the space today we will break down what they mean for the group plus, travel stocks hit by the

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emerson. consider it solved. welcome back to "fast money. two big headlines hitting our retail radar

l brands getting a little bit of a boost after a cnbc.com reported they are close to selling the embattled victoria's secret franchise to private equity firm sycamore partners. up nearly 33% this year, but down 76% from the all-time highs. so could this potential deal be enough to turn things around for the stock? karen, if they sell off victoria's secret, they have bath and body works, had a nice trajectory that's kind of what they have left. >> the problem is these mall-based stores, right, and traffic. i don't know i have been -- i have sort of missed this evolution of the business and which i don't regret, really, and i wouldn't be inclined to jump in here. >> yeah, i think this is a tricky one i often wonder what happens to victoria's secret because we talk a lot about how they have obviously honed this very sexy image, which is not in vogue right now. if you change the brand's dna, then what is victoria's secret that's my worry. what is sycamore going to do with it?

>> l brands is a great example the time to make the money is when things are awful to terrible to bad. that's what's happened here. you have a couple of rounds of earnings numbers and the stocks move from 18 to 27 it's now at a level i think there needs to be a fundamental turn you can measure the sum of the parts, but i don't think there is much to do with the stock after this move. i could be wrong on this, but we've seen these moments in the last two years where l brands had an opportunity to turn that part of their business around and i don't think it's going to happen. >> i always think that you see in technicals, it's always in the chart. so all the fundamentals, it's always that bet, who has it right. is it the fundamental player, fundamentalist, or is it the technician and usually in the chart everything's in there. tim just mentioned since november the stock is up 60% it's bouncing around overbought on relative strength index could it go higher of course, these things canboro up to enter it now up 60%, you have

to know the story really well. if you are one of those people -- i am not one of those people that knows the story well enough. >> it was limited, they owned a lot of companies, and now it's publicly traded. too much to get into now mall owner simon property group talking about malls announcing more than $3.5 billion acquisition of talk man centers. could this be a sign of more retail m&a to come what do you think? is this two players that are in a sector going through a lot of change, they are stronger together than they would be apart? >> that's my sense i think that's exactly what is going on sometimes two bad things doesn't mean it's going to make a good thing. so maybe there is synergies here, maybe not. i think you take profits in both if you are lucky enough to be in

on this move. >> these are the cream of the crop when you think of simon property group and taubman i mean, i didn't think taubman would be necessarily sellers if you look at what a giant premium they had to pay, simon had to pay to get it, simon was even up on that news so i think there is something for them to do to get -- simon is not expensive here even with this acquisition i think you are looking at the best of the best there are malls that will survive as opposed to some of the other lesser malls, something like a wpg or other ones we have seen just whittling away this is the cream of the crop in the space. >> interesting deals, whether it's retail or a bankruptcy. kno we have a news alert on uber and postmate's fight against california's -- what's going on here >> we have news. reports suggesting now that a federal judge has denied their

go to halt enforcement of ab 5 california's new gig work law which would require most companies to reclassify contract workers as employees the judge here, the balance of equities and the public interest weighs in favor of permitting the state so enforce this led legislation. postmates tells cnbc there is a procedure and they look forward to presenting their full case on the merits we reached out to uber we will bring you that response when we get it. >> i have a feeling this is not over. coming up, "mad money's" jim cramer sitting down with straws zelnick tonight 6:00 p.m. eastern time then we will have the latest on the coronavirus outbreak in our cnbc special report. st tig a7: p. .m eaern time (upbeat music)

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welcome back to "fast money. a big week for the travel stocks with hilton kicking off earnings in the space tomorrow morning. investors will be paying close attention to any comments on the coronavirus of course. so for more what to expect we will get overer ov to seem a.

>> with china in lockdown investors are concerned about the impact of the coronavirus on the travel industry. in fact, lodging data from sdr already shows hotel occupancy declined 75% in mainland china from the 14th to the 26th of january. key question now is how hilton's properties have been impacted. they have four hotels in wuhan, 220 in china while china business was likely impacted by the travel restrictions, analysts point out asia-pacific makes up a smaller portion of hilton's sales compared to the u.s. where they derive over 50% of its revenue the focus on tomorrow's earnings call will likely be on bookings and occupancy levels here in the u.s. if there are any preliminary signs of the consumer pulling back on travel and vacations due to fear of infection we have hilton's report tomorrow and then tripadvisor on wednesday and expedia on thursday a big week for travel. >> thank you very much. let's trade this one i have to say i was pretty

shocked a lot of these hotel stocks have not sold off more than they have really on the coronavirus fears. the point is the u.s. is the big focus. >> it's important. for marriott and hilton, only% 13% of their rooms from that area we said before, are they going to kitchen sink it or get a pass on it. the hotels can try to get a pass, but they are not really dependent on that area so you could see them beat and then guide aggressively high, or not guide aggressively high and people will say, all right, it's the coronavirus. it's not really the case. >> we have to do our homework and understand where that revenue is coming from. one trader is betting there could be trouble in paradise when hilton reports tomorrow let's get into the "options action." mike is out in san francisco hi, mike. >> hi there. we saw above average, two times the average daily options value in hilton. the options market is implying a

larger than average move we look at it, it's well over 5%, which is considerably higher than the 4.5% it averaged the last eight quarters. the most active options were the february 105 puts. you might think that's very bearish, but the trade i was looking at that we saw today was a purchase of the one ton 105 one by two put spread. the buyer is buy ig the 110 puts and telling two of the 105 puts. this makes the most money if hilton drops to 105, which would represent a 5% decline or so from where the stock closed the day. by doing this trade you are taking on a willingness to purchase the stock at that lower strike price and effectively buying it at $100 a share which is a decline of about 10%. it is bearish but its modestly so so they are expecting after a huge increase in the share price maybe the stock could give back a little bit they are not expecting basically all of that to come out.

>> we will see what happens. mike, thank you for joining us. for more "options action" tune into the full show this friday at 5:30 p.m. eastern. up next, wvee' got your final trades ♪ ♪ ♪ ♪ ♪ (vo) than just the business theryou came for.more whether that's getting a taste of where you are, or bringing some of that flavor back home. that's room for possibility. ♪ let's get to living

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final trade is sponsored by ente interactive brokers. welcome back to "fast money. time to find out if you at home bought pete's fast pitch on united technologies. hey, pete, looks like you made a convincing argument. twitter is buying your pitch any final comment? >> no, i appreciate that i want you to have a great night. i would have guessed a little too high on the time remaining in the show. so, sorry. >> you heard it. all right. thank you for being here with us, pete time for the final trade we will go around the horn tim. >> in megacap tech companies, intel is there they came out of the earnings season with upgrades on the basis of the fact that they have gotten a lot of their house in order. >> all right karen? >> yeah, i like pete's pitch united technologies. he made all the points for us. >> there you go.

utx. >> i am along with this name it's up 60%, six days, staying long. >> courtney, we love having you here cmg continues to break out to the upside. >> making me hungry. thank you for bein>> my missione 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" and welcome to cramerica other people want to make friends, i'm trying to make yo money. my job is not just to entertain but to educate and teach so call me at 800-743-cnbc or tweet me @jim cramer when the global economy is slowing. what do yo