and how they are thinking as far as new stimulus, if there is more shutdowns and what it will take to unwind the stimulus. if the fed is as optimistic as some of the people we have talk to on cnbc >> we are out of time here on "closing bell. i am off until the other side of christmas. happy holidays stay safe. >> enjoy the vacation. i'm melissa lee and this is "fast money. tonight's lineup -- tonight the retail rush is on. just nine shopping days left until christmas. who is going to win this holiday season get ready because we are unwrapping a brand new game. stick around to find out more. it is said it is time to hit the settle button heading into the new year

check out these two new stocks deal talks after hours standout stock in today's rally, apple. it is reported they will ramp up iphone production 30%. if you caught the show last wednesday, we discussed the dueling calls out that day on apple. morgan stanley on a buy call and goldman a sell call. looks like round one goes to morgan stanley who wins, guy? >> mel, where were you on march 29th, 1987 i am sure pete knows where he was. >> i would have to look at my planner. >> wrestlemania iii and the

feature match was the hulkster against andre the giant and that's what you have going on here i think the first round has gone to andre the giant, in the form of morgan stanley. i am in the morgan stanley camp. pete does a good andre the giant camp, but morgan stanley comes out on top >> i will have to go to you, pete you are always a fan of katie, you have always liked apple. this report comes from nikkei, they do channel checks and they don't always pan out >> katie's coverage has been far more accurate. look at goldman sachs and what

they have done and by the way it's not andre the giant, i think katie is hulk hogan because she is the winner. it has been consistent she has made great calls and with the production numbers we were talking about with the phone. i don't think people should focus on the phone in this case they are. when you look at where is the margin growth, it's in services and wearables. if you go back to last quarter and look at the earnings report that's what i am talking about it's wonderful this is just another cherry on top for apple right now. i think katie is right and i think she has been right and continue to be >> that is an appropriate metaphor with where you are. for those who don't have the benefit of seeing this, pete is

at an ice cream store so cherry on top is something he has probably witnessed i want to get back to the trade on apple up 30% production continues the fly wheel for the purposes of those. james, there is a question, the allocation between iphone 11 and 12, it is not clear what it is it is up 30% but for both of the phones 12 would be the better for apple if it leaned to the 12 >> i love the wrestling analogy. could you imagine working hard to get there and being reduced to a greasy person in a ring the 5g rush will happen when the infrastructure is in place

the iphone seaales are more abo loyalty. it needs more hardware subscriptions to justify this valuation in my nonwrestling opinion. we think the 5g will mean more when it's in place apple may be ahead of the curve. verizon and at&t won't move any traffic over until it's done we want to see the infrastructure in place before the newest and latest phones come out and randy "macho man" savage could have beat any of those

guys >> elsewhere in the world the infrastructure is there. they are ahead of the u.s. in 5g deployment in asia there is no pandemic problem in terms of consumer spending things are rebounding as we speak. >> operators and hand held operators in a supine hold you have a dynamic where they continue to be a grand leader at a time when 5g is growing around the world. you don't own apple for that you own it for this increasing multiple i think one of katie huma's poi

that they went through a refreshed cycle. you have this installed base that continues to give for apple. they have figured out how to keep the cash flow going >> apple led the tech today. but how it has done since the october high huge diversion within the group. tim, you flagged this in our midday call in terms of percentages and gains and losses within the group are we witnessing the death of faang? >> that is an acronym through a lot of assumptions. but what bound them together was they were high capacity allocations and places where you have growth at reasonable price or maybe growth, in amazon's

case, at not a reasonable price. if you look at goggle, it has outperformed amazon by about 13%. arguably, amazon has been the best story and as he would come through covid, maybe some of the trends for e-commerce will be the best we love to apply jargon and acronym and maybe faang had its time >> if the faang trade is over, what could be the new leadership group for 2021 we ask for our leaders to think of their own jargon. the grouping p stocks that will lead us in 2021, guy >> before we get into this, my crack staff in d.c. was playing

ice cream man by van halen while pete was eating ice cream in florida. and, two it katie was the hulk hogan and andre the hulk will emerge victorious. and what springs eternal, melissa? >> hope springs eternal. >> and that's the buzzword for 2021 what are the stocks attributed with that? home depot it's trading cheap to itself over a five-year basis i think there was a 325 price target put on it i think it gets there early. oracle has broken to the upside. $72 price target oracle is starting to figure it

out. palantir is tim's because it is the next oil and expedia, people want to travel people have traded well lately i think it will trade as high as next october there is your hope trade, mel. >> tim, do you have a comment on the hope trade >> i love the fact you are so optimistic and hopeful, but i am trying to understand other than oracle is the "o" in hope -- >> since you ask, i will give you the answer everybody thinks home depot is benefiting from the stay at home world. that's maybe true. but people will flocked back to home depot after this is over. they have embraced it.

oracle, the last quarter was excellent. palantir people have talked about for years before going public that's hopeful and expedia speaks for itself. people want to get out and travel folks are pent up. so despite what you say, tim, it makes sense. >> to you it makes sense it is a good grouping. >> james, what is your acronym >> i have to take everybody back to school. you make money, buy low and buy high vvu. we are looking at records never set before like the record of 104-yard interception for touchdown return done by guy hastings, we need protection going into 2021.

the vix, volq, volatility looks like it will explode in 2021 this is where i want people to put their money. go back to school. >> tim, you want to criticize james's -- >> i am next so i will get it. what does vvu spell? >> his criticism is that it's not a word, not like faang or hope -- >> it could be a cloolloqialism. >> tim >> what we do when you enter the

room, mel. let's all rise riseincludes rio tint kanstintol caps and schlumberger and emerging markets these are all trades that have underperformed largely for the last three or four or five years. rio is break out after a multiyear basing process i think we are seeing that even in the oil sector. in small caps, trade along with the trades >> pete, what's your acronym you are the only one who has actually accepted a member of

faang into your new group. >> it is the new faang i turn it into a battle royal. facebook is thrown out i am replacing them with freeport there are a couple of different qualities about the companies i have got when i put in this acronym. that one, materials, i'm bullish on the materials face. apple, we talked about that. amazon i look at amazon and everybody wants to call this the big e-commerce company which they are, but their real story is aws. it is a tech company that has done extremely well. i think they will continue to even in a hybrid environment when you have some people going to work and staying at home. and i don't have netflix in there. i have nvidia.

they did an unbelievable job in acquisition. lastly financials, goldman sachs, when you look at the last quarter and what they were able to put up, i think that's something we will be able to see quarter after quarter after quarter in 2021. we threw out a few of the hold names. i like the new faang like that won't be confusing next year when we talk about it. it may be time to hit the sell button let's bring you in we have been outlining stocks.

which sorts of baskets would you lean towards >> i think there is always money to be made by investing in equities, i think the best bang for your buck in this type of market is a cyclical recovery rather than stock market recovery and looking for gdp stocks in the s&p 500. even energy i think could work we are emerging from our co-koons my highest conviction for you is value, value, value. it may be as simple as looking at the 50 chiefest stocks in the s&p 500.

>> in 14 of the last recessions we have had recovery with a value cycle of about 12 months we had small cap comebacks from the dead, a lot of cheap, beaten down areas of the market starting to outperform people are like this is done i disagree i like the new faang i just heard about in the last segment because i think it makes sense to growth stocks to value stocks what is interesting is if you look at the value benchmark it is slated to grow earnings faster in the next three years than this so-called growth stocks this is a weird world we are living in but i think it's

typical coming out of a recession. >> when you talk about value and this is more of a tactical question is it value on a growing basis or trailing basis? there are a lot of companies people don't expect to normalize until 2022 do you have a thought on that? >> i do. i have a lot of thoughts on that value is really more about -- less about a snapshot multiple and more of a dcf way to think about the work if you think about stocks on a discounted cash flow analysis and i can send you the numbers and back story, we found that value stocks are now finally cheaper than growth stocks it's interesting i think the growth companies did really well for a really long time because interest rates were falling, falling, falling to zero and that low cost of

capital helps. but we are now at a point where even factoring in this ultimately interest environment, growth stocks are starting to overprice that discount rate i think we are at a point where if anything happens at a discount rate, if rates rise a little bit, if we see any sort of inflationary pressure in the economy, that's really going to hit a lot of these growth companies from a discounted cash flow basis your question is hard taken. how do you value companies in today's low interest rate environment. i think this kind of cash flow analysis is the only way to factor that in if it makes sense. >> i appreciate you like my new faang category

i have a little bit of concern, and curious. we have a lot of names that have high valuations. does that concern you at all about the new faang? >> valuations are a little screwy when you are at a peak or trough in a cycle, the worst is a pit on price you don't want to look at that because that will guide you to the wrong stuff. so looking at companies and thinking about how much are you paying today for the future of their cash over the cycle at current discount rates when i look at financials which i think you named as the f in faang, it looked attractive on a gps perspective, inflationary pressure, beneficiary of

recovery, quality balance sheets that's a sector where it's easier to say it's cheap, but cheap for good reasons rather than bad reasons in other cases when you look at the market, there is a lot of areas already extensive on trailing earnings, but i think trailing earnings are way too low if you think about what we are moving into in 2021. an unprecedented shutdown in global activity. >> happy holidays if we don't see you again. >> thank you you, too >> you still are predicting a pullback you like vvu for those reasons, but i though there are things in the market you are invested in, so where do you find value >> first, we want to understand

things are going to depend on how this vaccine works if the vaccine works, we want to talk about casinos, we think they stand to benefit the most from a vaccine rollout if the fear comes off, people will rush back into those things they rushed out of we are talking about hospitality, casinos, things that saw the immediate shock these are areas we think we can buy cheap and make money on going forward depending on the efficacy which we are about find out. >> coming up, the countdown to christmas is on, fewer than ten days until christmas two key players going up after hours. details after we return.

this holiday, get iphone 12 on the 5g america's been waiting for. this new iphone plus verizon 5g is incredible. switch now and get iphone 12 pro max on us. unlimited plans start at just $35. this is 5g from america's most reliable network.

breaking news in the pot

world. merger news. the deal could be announced by in the morning tim, does this make sense? >> it does aphria is arguably the best producer in canada a friend of the show has been running that company and understands brands these two entities are more powerful together both through the strategic partnerships that tilray has and with the balance sheet of aphria. they just made a purchase of sweetwater in the u.s. that's what is going on. a lot of the canadian operators have been trying to find a way to the u.s. market which is the market to be in. these two together makes sense i think aphria is a very good operator >> pete where are you on the

trade. >> i was in there for a long time, but i didn't find it compelling enough. i am no longer exposed at all in the pot world -- or cannabis world i should say it intrigues me, but i haven't jumped into it >> we have lots more ahead on "fast money. here is what is coming up next >> santa is making his list and checking it twice and so are our traders when it comes to retail stocks which ones you should wrap or scrap this holiday season. and some see cckras in the foundation of this trade that and more when "fast money" returns.

♪ welcome back there are fewer than ten days left until christmas and predicted more than $760 billion up for sale. which retailer will come up as king we are unboxing a new game called wrap it or scrap it it's new first up, macy's are you wrapping or scrapping

it >> kudos to guy adame on the game i am going to wrap macy's. there could be increase in big cities 7 million new digital customers. they have switched to more of an ecommerce play still improved balance sheet not a company that's yesterday's company, but it is not going down >> i do like the fact that this game is more straightforward in that wrap is a good thing and scrap is you want to get rid of it it's clearer of our things of the past for pete, it should be easy to play alibaba, up 20%. wrap it or scrap it? >> i think this is a wrap it we talk about cloud.

look at the growth in the past quarter. we compare it to amazon and all of the rest, but i think baba is underappreciated and i think there is plenty of upside so i am wrapping it >> i am going to scrap it. i hate to disagree with pete it is a significant risk the chinese government is taking a hands on approach to regulatories they just fined these guys on the 14th of the month. and the delisting issue is real. this is something we think biden will continue. i would scrap alibaba. >> next up, nike, the stock is up 37% this year guy, what do you say >> how do you play this game again, mel >> you created the game. it's your game you play it right.

do it. >> the safe bet would be to scrap it, but i am wrapping this sucker ahead of earnings i understand valuation is expensive. i think it is trading all time highs today, but the quarters have been remarkable the home run tremendous growth opportunity, so wrap it, mel! >> i am going to jump in and say scrap it hate to agree with you on this we agree on so many things, but it has run so far. it has had an unbelievable run i can't believe an 381 pe and even forward in the 50s. i would rather be in lulu lemon with similar numbers >> the sound effects are maurice's children they are adorable. james, are you wrapping or

scrapping best buy >> this is modernized. they are optimizing their close range delivery if you talk to the guys in the delivery room, it's close range delivery zone. best buy has this nailed bike amazon even though they closed their story between march and may, i think they will come out strong. >> i have to scrap that, not because i disagree with most of what you said. i love maurice's kids chiming in there. they are not happy i am scrapping it, but i think the sales trends will come nowhere near where they were in octob september, october, november >> wait, there is a christmas

miracle for all of those who thought the game was over. we have a bonus round. last minute stocking stuffer from the dollar stores done lar general -- dollar general. wrapping it or scrapping it? >> i am wrapping it. they have competed with walmart but scaled downsize. these guys are amazing in terms of execution they have been an amazing story. 16,700 stores, i think they have room to grow this is a company you have to wrap it. >> with all due respect to my line backing brother, it has to be scrapped. too much competition sales are up 220% in 2020. that will go away.

they have competition from costco, dollar tree. we have to scrap it. >> guy, how did it feel to see your idea come to life >> how long have i been doing this show? 36 years finally you did something i wanted to do i am a buyer >> and after hours downgrade and second placeilr sveis soaring. what is behind that? we have details after this stay tuned

flexshares may look simple on the outside. but inside every etf... there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential.

and strengthen confidence in you. flexshares. powered by over a century of investment expertise before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

welcome back the pfizer vaccine rollout continuing at this hour. and we got other big news. the moderna's vaccine was ruled to be safe and effective moderna closed deep in the red and it was given a downgrade

let's bring in michael you have been a big believer in the stock before in part part of this was this platform proven through the vaccine, but it sounds like you think the market has already appreciated that >> absolutely. it has been a phenomenal run stocks hit 60 billion in market cap. i think it's number three in terms of the biggest biotech on wall street. i think expectations have gotten ahead of itself. with the launch of competitors, i think it is time >> competition is increasing and we are in the execution phase which is fraught with unknown risks, michael but i wonder if the best days for moderna's stock may behind it in so much as for vaccines

there is always pricing pressures. they don't stay at $20 or $40 a dose it always comes down and that is moderna's business, vaccines, things that come down in price >> that's a huge part of the concern and also expectations are high with the launch probably starting monday i think they will put up big numbers and there is a lot of expectation. as we go through the year pricing concerns are on the minds of investors, particularly as other vaccines come out they have benefited because some of the other vaccines like astrazeneca are good i think investors are nervous about that >> mike, i respect the downgrade. good for you being in front of something. i think your price target is $90. that suggests a significant downside if i'm correct.

is it a best case risk scenario, its it wouldn't be a meet orric rise >> the downgrade, but we upped the target to 150. the big case i think people are waiting around the corner is if you see pfizer has a big manufacturing slipup and seeing some of the media reports out maybe they didn't make enough for the united states or that as zen ka coming in the first quarter, maybe january, if those aren't very good, then they will say everything that is left is moderna. we think it will be positive, but pay attention to that.

>> is there a name in biotech you think is underappreciated? >> there are far ma names scooping up other companies. is there an area that you say i think there are a few names not being appreciated the right way because they have a great pipeline or whatever the case? >> yeah, one is ticker beam. a lot of gene therapy and editing, that has the next wave of gene editing. another one is morf. they have new oral pill for ulcerative colitis and they have knew data around the corner another mna takeout of another gene company i know 2021 is going to be very good for these companies, but a

break for moderna. >> for those wanting to invest in curing or vaccinating against covid, is there a trade at this point or is that pretty much over >> i think there will be waxing and weaning around the group together alt. novavax has their data coming. these stocks have risen over the last 6 or 12 months. it's hard to pick the winners amongst these and i think a lot of them have already been appreciated. >> thanks, michael tim, where do you go in health

care >> beiechoing the praise for identifying a stock and then putting the brakes on, i think you stay with ibb. multiyear breakout is a way you get exposure to a bunch of these names where there is decent exposure i like idb here. >> sticking with health care -- coming up, silver getting a shine on, but can it stay up there above other metal. >> andone investor thing that lennar is on shaky ground. how he's playing it when we come back we're excited to do business with you

but before we sign i gotta ask... sure, anything. we searched you online and maybe you can explain this? i can't believe that garbage is still coming in. that is so false! frustrated with your online search results? call reputation defender today to join tens of thousands who've improved their online reputation. get your free reputation report card at reputationdefender.com or call 1-877-866-8555.

welcome back to "fast money. our move of the day. silver, how are you trading this >> precious metals are a crisis

hedge. the complex is currently benefiting from negative bond yields the question in everyone's minds is inflationary liquidity on overdrive? no crypto is also taking the spotlight away from precious metals we think this is a stoking of the asset price. we don't think it is likely to benefit going forward, so the run is just about over for silver >> pete? >> it may be over, but the month of december they started coming back again remember you heard me talking about it throughout the spring and summer that it was

outrageous along with gold and so forth but slv we are seeing the call again. they were right back in the spring i think they may be right again. but we will see. coming up, is the housing meine on shaky ground? sothg that could consider a sellers market in this one name. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like... like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge,

24/7 support when you need it the most plus $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

people are saving hundreds donon the most reliableade in a land not so far away, network with xfinity mobile. they can choose from the latest phones or bring their own. and choose the data option that's right for them. they even get nationwide 5g at no extra cost. and since they are on the carrier rated #1 in customer satisfation, they live happily ever after. again, again! xfinity mobile. your wireless. your rules. your way to stay closer together. click, call, or visit an xfinity store today.

welcome back to "fast money. lennar shares dropping let's bring in mike who spotted unusual activity >> lennar saw 2 1/2 times as many puts trades the options market is implying 6.4% higher or lower after they report earnings. this is considerably higher than the company has averaged over the last eight quarters. and these are the puts that expire friday. they traded for about $2.25 on

average. it was trading above that price but fell below it by the end of the day. what could be going on is it hasn't performed as well and perhaps they are hedging their bets despite the fact the housing market has a lot of things going for it. >> guy, what do you think of the housing trade? i know you like it since home depot was the h in hope. >> i appreciate that william sonoma, you mentioned your affinity for the dutch oven trade. but if you go back and look in february, that's where it topped out in february and where it needs to hold. i think lennar holds with 71 but i would hold >> i like the cast iron in cooking. tim?

>> how he traced lennar to a du dutch oven and then his trade, he should be put in time-out >> he will be in six minutes >> carrier, hvac, they continue to be part of this fix up your home home depot and lows -- lowe's. >> he we the home builder etf has been underperforming after a paradoxacally strong showing we like it, but only after lennar pulls back. >> i like a lot of these builders i own it and dr horton and others and i also like the materials

that feed into the homes there are a lot of things, i think will continue to move to the upside demand is there. we heard it throughout earnings season the numbers were extraordinary, but there are certain aspects is why the numbers have pulled of now. >> putune in friday for our options action up next, our final trade ♪ ♪ (vo) i'm a verizon engineer, part of the team that built 5g right.

we started with america's most reliable network, added 5g nationwide for millions of americans and the unprecedented performance of ultra wideband in more and more places where people need massive capacity and ultra-low lag. i'm proud ultra wideband was named the fastest 5g in the world. but i'm even more proud, all that work is gonna make a real difference for you. this is the 5g america's been waiting for. only from verizon.

>> time for final trade. let's go around the horn tim? >> getting back to october, i think you break through and i think you stay high on twitter >> pete? getting pressure, but i think this is a stock that is ready to go higher. >> james >> you have to be safe the highest class is ubxy. >> guy >> i think we should use wrap it

or scrap it on boxing day and maybe spord atcally throughout the year maybe you think the same, mel. ont a monster has been black ste. look my mission is simple to make you money. i am board to level the plain field for all investors there is always a bull market some where and i promise to help you find it. "mad money" starts now hey, i am cramer, welcome to "mad money," i want to make friends and trying to make you some money my job not only to entertain but to educate and teach and put in context, call me, 1-800-743-cnbc or tweet me @jim cramer. we used to call it the santa ma