tv Fast Money CNBC November 9, 2020 5:00pm-6:00pm EST
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it's not like every day we'll get more detail a those things. >> some extraordinary divergences today, oil up, gold down we'll have to see if any reverse. we're out of time for today, though "fast money" starts right now. i'm melissa lee. this is "fast money. the nasdaq today sat out the rally. of z are the best days of the tech rally over? the traders make their picks, and has today's news breathed new life into the box office positive results from a covid vaccine trial, meg tirrell has all the details. meg?
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>> hey, melissa, these results were so much better, and if all went really well melissa, we have 90% of efficacy with this trial and this covid vaccine from pfizer. this is a 44,000-participant trial. the way they measure efficacy is how many cases of covid they see in the trial they want to see more cases in the placebo arm than the vaccine arm, to show that the vaccine is protective that's what they saw to the opportunity of 90% efficacy. they said they saw no serious safety concerns, and they will proceed to the end of the two-month safety follow-up window before they would seek emergency use authorization. that will happen next week after that we could see them proceeding for regulatory clearance. there are still questions remains. this was just top-line data, and
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it looks to be safe, but there's still questions how does it prevent severe disease does it prevent infection completely or just manifestation of the disease with symptoms other questions are how long did the protection last? we've seen polls of maybe half of americans are not willing to get the vaccine. and the other is supply. pfizer has said only 50 million will be available in 2020. up to 1.3 billion in 2021. that's around the globe, not just in the united states. we spoke with the ceo this morning about the historic news and what's to come next. here's what he said. >> this was very important, but only the first step.
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now we feel very, very confident about the efficacy, because it's overwhelming we feel good about safety, but we need to wait until next week when the safety data will be complete based on the guidelines of the fda and of course we need to make sure we can constantly manufacture in both continents, in europe and in the u.s., in the quantities we are saying we feel good about all of that >> so there's a lot to be worked out still, but still before 6:45, we didn't know if we were truly going to get a covid-19 vaccine. at least this one works. >> meg, a couple questions about the limited number of doses, not only has purchase order agreements effectively with the united states, but also the eu, the uk, japan. i'm wondering how do they prioritize the distribution of a limited amount of vaccine this year, as well as next year.
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>> we pressed the ceo about that he wasn't specific about how they'll be making those decisions. however, i'm talked with folks involved in this effort in the united states, who do expect that the united states, because it struck its supply agreement first, does have a claim on at least some of those doses. the way they structured this, alex azar spoke about this on fox news earlier today he said 20 million doses will come in per month in the united states, starting in november that's 40 million doses for the rest of the year pfizer has said 50 million will be available, so that's fourth fifths coming to the united states, if that's correct, but you know, it can't be a difficult ethical situation, trying to figure out which governments should get these doses. >> yeah, and then also the other question i had, meg, in order to actually claim that the trial
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has gone to completion, it would have to reach, what, 164 infe infected patients within the trial and right now they're about 70-misshor-ish short we don't know when the 164 will hit. what happens to that window, that two-month window? how does that affect approval? >> so two months is the window set from when half of the people in the trial have received their second shot. so pfizer has already vaccinated half of the people in the trial. they know that that's the third week of november that window doesn't change based on how many people have been infected in the trial. 94 infections so far is faster than people were modeling. the infection rate is so bad right now, it's not inconceivable to think they would reach of end of that trial fairly quickly
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at that point, they will unblind the trial, and switch them over to the vaccine that's sort of the award for being in the study, you get the vaccine after they unblind. >> meg tirrell, thank you. . the news sending stocks rallying today the dow hitting an intra-day record for the first time. the nasdaq notably negative, for its first loss in six sessions guy, what do you think maybe the tech trade is over >> i don't know if it's firmly on, but we're clearly on the way. we've seen fits and starts like this before. i don't think it's hyperbole for the united states. it's a great day. >> you look excited. >> there's a couple things --
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no, look at me i'm think. i know you're a big jimmy cliff fan, and he wrote a song, "many rivers to cross. that's the way i feel today. there's many rivers to cross to get us to the summer, and we're coming up on the worst possible time for the covid virus the market is pricing in a lot of good things the one thing i take away from this is, pfizer, which obviously made this announcement closed exactly where it was on the 29th that's interesting ibb closed unchanged on the day. and oh, by the way, the vix closed significantly higher on the day. i've said a number of times you'll see a market top when you have a huge day, which you obviously saw in the dow jones and the s&p and the investment x closes higher. it's just something to keep in mind i'm 23409 trying to throw cold water. >> dan, you're nodding your
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head >> well, jimmy cliff also wrote a song that said "i can see clearly now. i can see clearly now that the machines are in charge here, man. that gap on the opening was absolutely ridiculous. what you just went through with meg, all the things that have to happen for this vaccine to be widely commercially available and really get in recoveries at the trade or reflation, i think the market has gotten way, way ahead of itself. the s&p 500, the way it sold off was kind of incorporating that and probably some other funny business that will go on here politically over the next few weeks. to your point about the nasdaq, i don't think that trade is over i think they will come back to the maga complex for a heartbeat. that's microsoft, apple, google,
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amaz amazon they were not able to make -- clearly just topped out before the october high, so we are in a bit of a downtrend i think you'll have an opportunity to buy those stocks against, probably at the breakout levels from late summer. >> i mean, if one of the playbooks for this m.a.g.a. trade, if you want to call it that, is the economy will exhibit slow growth, so you want to be in the names that have organic growth, maybe that's off the table, karen, in a world in which a vaccine prevails >> i think so. we always talk about the market as a forward-looking mechanism, but just a couple things to talk about today that i think are important. first, thank you to pfizer i'm sure they have worked tirelessly since this began. this is a citizen of the world, so thank you to pfizer one thing we always talk about is how to play the vaccine, and
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i think we're unanimous don't play it through the biotechs, place it through the airlines, the cruises, the hotels, those names, because those went kind of crazy today the most sort of covid/vaccine stock that i own is livenation, and you can imagine festivals with people standing together, breathing on each overt, yelling and screaming, aren't the right place to be, except this was a fantastic day for them i sold some stock, just thought it goat way ahead of itself, and the enterprise value was bigger than the beginning of the year they have lost a ton of money, they have raised debt, so that doesn't make sense to me, but fedex down 25 bucks, that wasn't such a covid winner, in that the multiple doesn't reflect that. the other thing about fedex is they do a lot of business to business, which is very
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profitable for them. that will improve it if the vaccine becomes widespread the xlf i don't think has been up this much since '08 when you weren't allowed to short financial stocks this was a crazy day >> this is like for a zoom, which moved in the opposite direction today. >> since this is the jimmy classify block, i would say the stuff that moved lower today, the harder they come, the harder they fall. but so let's pick up with the banks. j.p. morrison was up, but jpmorgan is up 30% in the last 30 sessions and outperformed
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since the third or fourth week of september the argument that we were making all along, if the economy is at least stronger than expected and main street, that the banks -- there's summoning error or the banks are wrong. they rolled back significant provisions today i think that's the most important trade, because the banks have really been the ones whose earnings were absolutely fine, but it's impossible to know what the credit exposure was. when you layer in what's going on with ten-year yields and where rates have moved it's a fantastic environment for banks. a lot of that because of earnings -- excuse me -- of loan revisions that have rolled off,
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but nonetheless a very good day. >> it's an extraordinary day when the ten-year yield is within a shot of one percentage point in a matter of days. let's bring in our own jeff mills, the general, who's not only a "fast money" trader, but the cio of brinmore trust. >> sorry i can't see everything. i do believe it, but i agree with dan that this isn't going to be a straight line. any inclination that there's trouble with the vaccine, you will see people but if you look back between now and the end of the year, i do think that this piece of news removes one of the primary governors on the breadth of the market we've been so desperately missing. so it's the efficacy rate, i think that's the big surprise.
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i think this probably gives us a clearer timeline and come out with a vaccine of similar effectiveness. if you go back to last wednesday, as an example post election, the market was up quite a bit, 57% was actually down on that day i think the more conviction investors can get that we aren't going to backslide, i think that typical rotation that we would have expected off the bottom can start to materialize, and i think we can start to begin to anticipate the beginning of a new economic cycle as as we move into 2021. it won't be a smooth ride, but i think that gap starts to close over the next 12 months. >> obviously a lot of institutional investors, professional investors have been so heavily invested in the tech trade, so make got caught offsides a bit as to what happened on the market today, and i wonder if you think this
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is a re-sizing their positions as we go into year end, you don't want to be too heavily in tech when you have this cyclical trade on. >> yeah, no question people were a bit offsides the moves we say today i think were extreme we will have fits and starts at the height of the tech bubble, just to put it in context, they had about 14% that traded at greater than -- obviously large-cap tech has done better, but signs of excess in that side of the market, and when you think about the calculation here now, i think we still get some sort of fiscal stimulus it means the vaccine is a bit more clear you have a fed that's probably not going anywhere, and you have pretty decent earnings growth. companies beating are beating by 20%.
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the average is 3% or 4%. you think about expectations out to 2021, 2022, it is industrials, materials, consumer discretionary, and obviously energy coming off a low bar, but those are the sectors that will ea earn >> hey, general, it's tim. i think what you're saying around the eps dynamic is we were giving companies a pass on '21, normalize on '22. are you saying the bar needs to be raised before '22 i think you get sometimes bad news is good news. >> i'm saluting you, tim >> i feel you. [ laughter ] >> not a people start to move in a clear direction toward the cyclicals, obviously more optimism will be priced into those names. you won't be able to look to
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normalize earnings, people will have to effect earnings will materialize more quickly than that -- i also think, to the point there's a lot more wood to chop here, i think stimulus has to be part of this equation. i actually tweeted this out earlier, to varying degrees of skepticism, but i think that the vaccine news today may be counter-intuitive be impetus for another round of stimulus. if you have a government that knows it's billing a specific bridge from today to when activity can return to normal, i think the digitsal spending may be more palatable, and less of a fear of throwing good money after bad, because the end game is clearer i think you may have a better chance, and you have that stimulus at least in some form, i think it helps the rotation. >> jeff, love your work.
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i was going to ask about your teeth, so you answered that before i can't ask, but a huge move in the banks, does this make sense put your trader hat on, and say you fate a 15% move in some of these big-cap names. >> if i'm trading the bank, i probably will fade the move. we've been talking about -- i've been skeptical as it relates to the banks. whether it should be or not, that's how they trade. i'm skeptical that you're going to be a massive steepening of the real curve, so in financials, i would still rather by in diversified financials like goldman or morgan stanley or payments like visa or mastercard i was looking at the chart of schwab today, it looks like it's picking up momentum, so the banks specifically, i think they can participate once the rotation picks up steam, but this kind of move today, i think
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you can probably buy them a bit lower again. >> jeff, great to see you, in true "fast money" fashion, i'm wonder, karen, if you took this opportunity to trim anything else, seeing the outsized moves across a lot of the value sectors, which you own this move before today was up big, so 30-plus percent, for jpmorgan at 91 or 92, so i probably would sell some out-of-the-money calls this move is really gargantuan coming up, the stay-at-home stocks in a slump today. is this the end of the road for some of this year's high flyers?
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they posted a loss saying the pandemic weakened the demand for its product. sort of an interesting tale during the regular session here we are in the after-hours session, and basically they want during the pandemic consumers were loading up their freezers and the result is very, very weak sales. >> i think we saw that in a lot of consumer staples, you know, in the last seven or eight other nine months. >> could you see a restocking in i'm not so sure if we are going to have the sort of spike that a lot of people are expecting or that looks apparent right now, we may not go back to kind of
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being more at home this one is down a whole heck of a lot right now, but you may see a restocking trade again. >> we should note that the short interesting is guys, if you were a believer in the future of alternative meats, which i know you are, is this your opportunity? >> see you're leading me down this road because -- >> no, let me just stock only the stock. >> think about the stock traded almost $200. it went of basically $75 in a straight line. so you have to ask yourself, where is the reentry point i think it comes in the form of $98 or so. in terms of the quarter, absolutely disaster. i didn't realize that you had to refrigerate these things and put them in your freezer
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i thought they were more like twinkies the reentry point look like $98. tim, where you do you stand on this stock? >> i'm glad we didn't get into guy's constitution i think you've always had a competitive dynamic. that's why i couldn't hold the valuation, even in the pandemic, if you just think about momentum around the stock, today's news was great for food service if anything, restaurants can see the future somewhere, and even if it's not tomorrow, we get some sense we're close to that that should have been great for a company that has been certainly getting you the headwinds attach to that part of the business i don't think this has ever been worth own at the valuation it's an exciting area to be in, but is this the multiple you still want to pay for? >> by the way, the ceo will be
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on "mad money" tomorrow, so you don't want to miss that. we are just getting started here here's what's coming up next. >> announcer: peloton hitting resistance, zoom getting dinged, but which of these stay-at-home stocks has staying power we'll have those details, next later, buckle up options traders are betting on lyft shares to move higher the trade is ahead we've got that and a lot more, when "fast money" returns. hi, my name is sam davis and i'm going to tell you about exciting plans available to anyone with medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you're covered for hospital stays and doctor office visits, but you have to meet a deductible for each and then, you're still responsible for 20 percent of
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not all stocks went along for the ride check out some of the big stay-at-home winners that missed out today. we thought it would be a good time to ask the question -- ♪ should i stay or should i go >> that's right, should you stay in these stocks or go? karen, what do you say >> i would say go. this was a great company, and zoom is now part of our nomenclature now, but on a valuation basis, at this price, i don't know, wherever it went out, the only reason people will hold on to it i think in the short term is they saw it trade with a 500-plus handle, but that's an irrelevant piece of information now, so trading it at, whatever, 100 times cash flow and revenue multiple, i would sell >> even in a post-pandemic
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world, i would imagine some business travel never comes back can you imagine if we did our midday call by zoom in. >> no, because i don't want to see what tim seymour is wearing. you have to ask yourself what percentage of the business are they going to retain in a post-pandemic work this time next year in 30% or 65% or 70% karen makes a great appoint in terms of where the stock was irrelevant, but that doesn't mean the company is going away, and she's not suggesting that. you have to figure out in your pin what percentage will be maintained my instipgts is somewhere between 70% and 75%. peloton, dan, what do you say about this >> listen, about valuation and
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outperformance to this name. this one i think is different from zoom. i think it has competition from megacap tech companies lowly fitbit, if they buy that, they will want to buy this company, the massive screen that gives undivided attention there, right? people don't always want to do classes. i think this is a company that will be part of a much bigger platform company in a bigger regulatory environment i know that the behavior that has been createdly their offering is not going to change any time soon, even if gyms open up again if it trades as high as 140 this month, if it was back in the mid
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60s, you buy it, you put it away this one will be a meaningful brand for years to come. docusign, guy, stay or go? >> i didn't realize -- so i'll play the game correctly. you stay, because i don't think it's like the others i think this is a complete sea change in the way things have been done. whether or not we get back to normal or not, docusign is here to stay. willpower just outperformed a price target they report i think on december 3rd. if you look, since july, has been a line in the sand. i stye though the classes miserable -- >> i thought tim liked this, you don't like the clash >> yes. >> that's what i thought take two, tim. >> look, i love the clash.
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it's unfortunately they're memorialized by maybe one of their worst songs. guy doesn't understand the angst behind the clash, but that's for another show take two was a tech similar story with gaming and everything that we're doing with some of the consoles, the online gaming, it's all been part of a two to three-year trend so yes, covid trends were important for nba 2k yeah, there was some moments where it seemed like that was the sweet spot, but 29 times earnings, not expensive. the fact their recurring subscription retch was up 20% and growing from there, this is a story that didn't come about because of covid i think a lot of these companies are media companies that a lot of other media companies are
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keeping their eye on. coming up, where are all the good movies? hopefully back in the theaters soon, as a vaccine is near we'll by joined by the lionsgate cochairman, and taking it on the -- much more ahead congratulations! welcome to the aflac program. aflac! now tell me, what does aflac do? aflac pays you money directly to help with unexpected medical bills. and is aflac health insurance? no, but it can help with expenses health insurance doesn't cover! that's right. are there any questions? -coach! -yes? can i get one of those cool blue blazers? you know i can't play favorites. alright let's talk coverage. it's go time! get help with expenses health insurance doesn't cover. mmm hmm!
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welcome back to "fast money. shares of lionsgate soaring today, since earnings last week. joining us is the vice-chairman michael burns. >> i wish i could see you. i think this is the first time i spoke with you since you are a mom, so congratulations. >> thank you, michael. i wonder if this changes your view of how you see the massive changes already until way in the movie production and distribution business acceler e accelerated by covid does this give you hope? >> i think that -- obviously it's hurt the theater business dramatically, but i believe it will be coming back, and will
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come back when covid is behind us i think the vaccine helps, but the nice thing they're doing is making an awful lot of content and we're able to monetize that in ways we haven't in the past that's working for us. >> will it be back in the same way? will it be back in the same force? you recently did a layoff in the film business, in your film group, 15% could you see that group sort of grow back to its original size once we're post-pandemic >> when you make cuts and streamline a particular division like we have on the motion picture business, i don't see bodies being added back. i think we have a very efficient operation, and i think it will stay at that level >> michael, it's tim thanks for joining us. >> hi, jim
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>> you have as much as great content, but you also have flexibility on your distribution i notice in mid-september you released"antebellum". >> it's a pretty good combination, a good one-two punch. adding to that the library, i think that's been overlooked for a long time. it's hard to overlook the fact that the last 12 months you're talking about $738 million of record library revenue it's creating enormous value we could make a case pretty straightforward in a very straightforward fashion that our library is now approaching the enterprise value of the company.
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>> mike, it's karen. thanks for being on. back to the model about the traditional model, do you think it will change in terms of when theaters will -- when movies will open? how long theaters will have them will that change significantly >> i think a lot of windows will be moved around. i think that we all believe that those that make content for the theatrical experience, we all believe that that is a valuable window now, when it's going to happen -- somebody sent me this. when somebody asks me that question, just shake this. it's hard to know exactly when the theaters are going to open, but they will open and we're encouraged by what we're seeing in some of the international marketplaces. michael, always a pleasure to see you i know you can't see us. >> melissa, you didn't ask me
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one question about starz, but we are excited about the way all these businesses are working together. >> guy was asking to ask you about starzz one last question that you think has been pulled forward? >> i think it's helped, but if you look at all the numbers, you talk about, you know, we're 10x, the number of o.t.t. subscribers. ten times. you're talking about global o.t.t. subs up 20%, domestic for the quarter up 24% those are big numbers. i think the trend was going our way with the jeff hirsch and what the team at starzz are doing. it's been accelerated or super charged. >> i have producers that will yell at me, michael. thank you. >> thank you, guys, for giving me that question. >> michael burns, vice-chair of
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lionsgate. guy, to you. we have known michael for a long time. >> he was coming on the show when we used to have to ask people to come on. i'm a huge michael burns fan i'm clearly biased, but i was going to ask about starzz. this is about how much it's grown. i don't think the market is pricing in the success i'm a huj fan of "power," the series and this new "power." you talk about a dark show it's the best. if you want to watch something cool, watch that i don't think the stock is given enough credit for the starzz, and i think the stock should go higher for here. expecting the rideshare giant tomorrow will lift off on the results. plus the home stocks getting messy, as investors pull out what has wall street so bearish on these spts?ymom much more "fast money," right after this investing is hard.
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is it over let's brent in anthony chukumba. which ones were sold off rightfully, and which ones are to be kept >> when we talk about the home furnishings, bed bath & beyond was down 13% rh down 4% williams sonoma down 10%, and then at home was down 19%. in terms of bed bad, williams-sonoma and at home, i don't really have a major problem with the sell-off. i do think they were major covid-19 beneficiaries, and i then when we get back to normal, it would take the bloom off the rose the rh, i'm okay with that >> how do you think about post-pandemic? do we go back to the way they were, and people aren't nesting,
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and not buying cast iron skillets and new sofas >> that's a great question i'm not a epidemiologist, and i don't play one on tv, but i do see a return to more normalcy, people spenlding more time out of the home, sporting events, movie theaters, traveling more first that will divert the discretionary spend currently being spent in the home. also, if you're not spending as much time in the home, you don't necessarily notice, we probably should redo the floors or replace or furniture it remains to be seen how long it will take to play out, but certainly a return to normalcy, i think to some extend there's a any fife for these no question about that >> anthony, thanks for joining us you understand the correlations from your sector for lower interest rates today you had a big move in higher rates what do you think that is?
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home equity loans allow you to go to restoration hardware there's also a move out of the cities to the urban centers, so speak to the rates issue >> sure. absolutely i'm not an economist, but i did have an undergraduate -- minor in economics, so i think i can speak to that more than advisoriology aadvisory olo virology, and epidemiology yes, they're going to move in relative lockstep, and the housing market has been so strong these last few months yeah, if mortgage rates go up, maybe you don't have as many people sort of moving out of the urban areas, moving to the suburbs, you know, we'll still see. the one thing to remember, too, like, this is covid-19, and on the one hand you say it's a once in a generation type of thing, but on the other hand there could be a covid-20, or 21, right? so i think it will have at least
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a bit of a lasting impact on the consumer psyche. >> got, i hope you're wrong on that front, anthony. thank you for joining us we appreciate it karen, how do you think about this trade i think about all these people who moved from the citiesto th suburbs and what they may be thinking in and out, or if they're in a large contract for a seven-bedroom home with two offices, if they're regretting it >> right are they guess to buy those pretty expensive restoration hardware sofas i don't know i can't help but think this pullback wasn't really enough given the big picture dynamic.
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under 10%. that's slightly higher than approximately 9% that it's averaged in its history. the most actively traded contracts were the november 40 strike weekly options, the ones that expire this coming friday ultimately over 15,000 of those were trading buyers of those call options are betting that lyft will exceed that surprise by the end of the week it appears they're probably targeting the highs back in june after the investment-shaped bottom. >> dan, what an extraordinary week it was for lyft with prop 22, and then earnings coming up and the reopening trade/reignition. >> up 80% since october 28th truly outstanding. we had this debate last week, would you rather, uber versus lyft and we were saying this is a reopening trade focused on
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north america, but i think the way pike described it, people looking for a play to move back to the june highs or above makes a lot of sense after a move like this, this thing is likely to move 15%, 20% in either direction. you just better get the direction right or those calls week worthless quickly. >> mike, thanks for the action more options action tune into friday, 5:30 eastern time. coming up next, we have your final trades turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim.
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welcome back be sure to tune in tonight for "the news with shepard smith." he'll have news about the ethical debate on who might get the vaccine and when it will bless widely available that news sent markets rallies today. let's take a check off the session highs across the board, but the dow did add 834 points, a gain of almost 3%. the nasdaq the loser here, down
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1.5% as tech in today's value cyclical rotation lost out guy, tomorrow morning, what's the first thing ear looking at to see if this rally sticks? >> yeah, no particular order, the technicians out there will talk about the potential for an island reversal in the s&p 500 you add a gap higher open today. if we were to see a gap lower open tomorrow, that puts it in the investment ix today tell us we might see that. the fact that the vix rallied strong is suggestive of that tlt, 154.5 was a june low, we seemingly held it today. the third is -- >> time now for the final trade. around the horng tim? ♪ should i stay or should i go >> it's a high bar, a crowded trade, but i think the home
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improvement trade is alive and well lowe's was oversold today. i will be buying it after earnings playing the clash just to irk guy. karen, what do you say >> thank to you pfizer, and shoutout to my nece, a producer on "power. so guy, next time she's in town and we're together, we maybe be able to get together and you have to sell -- they move has been gargantuan i think it could cool down >> american express, a crazy gap. i think you want to buy it on the way back in. >> guy >> cme, mel. thanks for wchating fast see there is always a bull
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