they have agreed to a loan of $5.5 billion from the treasury department you may remember they initially had an agreement on 4.7 billion to be borrowed they have up sized it to 5.5 billion. they have to take a draw of at least 10%. they've drawn down $550 million today. what does the treasury department get for this? 10% of american airlines if american borrows about $9 billion, the treasury department will get americ$900 million if you're keeping score, american is now sitting on more than $42 billion in debt

>> the stocking is moving higher in the after hours session >> it remains to be seen if they will need to borrow but the fact that they have said we may need to borrow another $2 billion in addition to that $5.5 billion, it's clear they realize they're in for a rough six months here you will not see a big increase in passengers. that means it's going to be tougher to get back to break even. >> a crazy low price target on this, it was $1 or $2 price target on american it is known as the weakest

balance sheet out of all the airlines this is the one to worry about if you want to go into the best balance sheet, it's delta or luv. i'm in southwest because i think that the domestic airlines are going to return quicker than international travel but we have seen a flurry of positive headlines coming out in the airlines as of late. >> grasso has a crackling mic. we'll work on that some of the airlines have better balance sheets delta, southwest, as well as spirit, they've all said they are not going to take out loans. bonawyn, would that be the better bet for an investor right now as opposed to ones that are taking out loans and just building up their debt levels? >> yes i mean, i really couldn't state it any better. when you look at the enterprise value and the debt balance these companies are taking on, this isn't because they see an investment on the horizon. this is literally in terms of

them managing their cash burn and giving themselves enough runway to get back to some type of normalcy when it comes to bookings in terms of wh s of you want t heading to the deltas, southwest, you know, literally anyone but american. they're in the worst situation so that when things do right size, you can look at ways help shareholders rather than using all that cash to pay down debt. >> james, i'm wondering if you would invest now for that other side scenario. >> we've got a crisis opportunity portfolio. we think that when we're talking about industries being rescued, obviously transportation is always going to get support from the government, anything that involves trade or economic stability. we like jets, the etf for this base it's so difficult to predict

what's happening in back room, board room conversations and government negotiations. so we buy the whole basket we like this sector as one that's going to recover when we get to this bottom of this market. >> i get that thresis that ther will always be a government back stock for certain ones >> what happened to bear stea s stearns. that's what you have to worry about in this scenario $42 billion of debt. for the folks at home playing the airlines as a trade, as a recovery trade, but remember if you own the equity, if that debt goes bad, you're wiped out i think you have a real tough time i would stay away from american, the ones with the highest debt levels frankly, i would just trade

these things at this point in time to bet on a recovery. i would stay to the domestic ones i love so forth.

it remains the case where it's just a few champions that pull things together. when they're down, the market's down when they try to recover, you put on a recovery like today it doesn't fix that. >> carter, thank you we'll see you on options action in a little bit. steve grasso, i want to go to you. we never got your take on this prediction for a big pullback

which will start next week what do you think? >> i love data james gets a thumbs up for that. i had felt as if we should back off 20% as well. that's why i threw out that number of 2850 i think we're heading there. when you look at generational bottoms, when we look at the covid bottom, it took 23 days to go from the highs we saw pre-covid to the covid low of 2191 then it took 99 days to get back to that level. so the question is, as we said the last time i was on the show, is it a dip and you have to pick your dips worth buying i think you could start to nibble once we break 3,000 in the s&p. to do it now, you're setting

yourself up for failure. >> to break 3,000, more specifically 2850 was the downside he felevel you actually cited. that's the level you would say that's my dip. >> that's my dip my dip is 2850 i want to be about 20% down from all-time highs i think carter had just mentioned, once you go down ten, the median is down 27% i think that's the time we can start buying >> james, what's your dip? >> we got 2890 as a key support level. we think 2890 is imminent. there we'll see where our central government comes in to offer support again. i think that is something we have to consider

either way, we're coming down. cruise lines hitting some rocky waters this year we'll break down the bold call that says these names soaring datoy. later, five stocks have been flying high all year long. that trade and more when "fast money" returns

a cold call on the cruise lines today making some big waves. shares of royal caribbean, carnival and norwegian cruise lines all surging on this news is it time to set sail on these

names? >> we've just sat here and spoke about the issues, particularly the debt balances that face the airlines the cruise lines are in this exact same situations. carnival has 25 and royal caribbean has about $20 billion of debt. same situation, debt laden they do have some bookings projecting out to 2021 and 2022.

>> the recent downgrade and now the upgrade, they're saying because the deadline is the end of this month and they're expecting the cdc will extend that, but will say positive things about the guidelines et cetera this sounds sort of like a tactical call because it's this near term upside from the cdc. grasso, what would you say >> i do believe in that tactical call when you look at it on royal caribbean up 50, current sale is around 64. they have the price target for 68 or so i do think you can start to dabble in these. they have this healthy sail panel. if they're going to be testing

people before you get on and taking less excursions and maybe testing people in the middle of the cruise as well, there's a lot of people who love to cruise so i think you can probably nibble you don't have to bite, but i think it's okay to start nibbling on this i agree with bonawyn none of us can predict what covid is going to look like six months from now, but what i can predict is we're closer to the end than we are to the beginning. >> i hope that's true. e lll break down what is driving thray and where it's headed for here later it's been a turbulent year for airline stocks

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this thing is going to double off the lows. it has been one of the strongest sectors in the market, primarily because of work from home, go to school from home companies are going to continue to spend on that i think it's right when you have a market up as much as it was today. it's not without risk because these things also got hit the hardest on the downside. i think it's interesting i'd buy a third of what you would want as your position. let's see what the next week brings.

>> zoom is up 22%. time for the final trade james? >> i am all in january 2021 calls. i think volatility is the only place to be here. >> steve grasso? >> international paper had a price tag today. it helped all the container board stocks it's west rock was up 8 or 9%. they are expected to follow next week buy. >> bonawyn eison

>> i don't think it bodes well for gm >> brian kelly >> i'm looking for things that are going to bottom here i'm looking at copper and gold the united states postal service is here to deliver your packages. and the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. every day, all across america, we'll keep delivering for you.

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happy friday i'm melissa lee. we have a jam packed show. airline stocks hitting some turbulence this week the chartmaster says buckle up, the etf is ready for takeoff he's got the charts to prove it. >> this is an important thing to say, there's a difference between investing and trading, right? it's not about how much debt they have. it's not about