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tv   Fast Money  CNBC  November 11, 2021 5:00pm-6:01pm EST

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watching >> what happens with bonds until we gete■ to those, i think it's still interesting even though we areqin a nice range. we tradedqallçó■year betw■e■ çó0 and 6ko■ months. 120 and 180 and now ate■ 155 the idea we will get to 2%k■■■ia short call it isb■ threatening very much >> we are out of time on thanks for watching. 50&fast money" starts now.ç■x■q■ >> live from new york city times square this isñ■ "fast money." i'm melissa lee.ñ■ who has a real opportunity in this fake world. three names toñ■w■v■■■x■j■watch. plus china tech on a tear.
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later, rivianjf flooring it. buckle up becausexd■here come t options. when they start trading and what you need to know.l the threeñi■moste■ important mas traders -- the dollart■ is at its highest level in more than a year. the russell 2000, andt(■finally &há% >>w■ tim, the dollar cv!tá was ypqours. >>ñ■ it's up almost 7% since5■■ january. a period where th dollar lostokxd■12.5% from the righte1ok toof /* -- ofi■ covid■ bottom the dollar is a sign of two things one, any time we see volatility,
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major changes in market sentiment. but also it's a functioni■ of t fed.e■ a five-year chart shows you a■!r where the fed had lost credibility and then you start to go intoh■■■that!■■■2018 hiki cycle. we all know what happened in december of x■2018 when people k■■■the their bounds.zv■h■ i think the dollar is pricing in a fed that's way behind the curve and is going to get a lot seen them so far i think the dollarñ■ could go substantially higher through the trend off the early 2018 ú to 100 i think itç■c■■■ willçó■]xd■ebbw but what will happen when it gets tot(■102.
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that's not great for energy orñ■ commodities, hasn't been great for emerging markets and what percentage of thee■ s&r getso■ its energy base from an international customer u.s. goodse■ are less competiti int■ foreignw■ currency. $■ >> this implies that this is one of the few asset classes pricing in the fed needing to be much morei■ aggressive. >>ç■ yeah. currency markets tend to do that because when you are((■talking about fed policy o÷(r policy, there is a long laglp equity players start to think, okay, is this really going to change the economic t■outputt? about the u.s.t■ and thex■e■ do hast(■become the new vick.
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there are so many dollar based debt out there if you live int■ a forlyfn country, but have to pay your debt in foreignw3■dollars,ç■ you have to go someplace it's almost as if you are short. that's why ite1 becomes ai] volatility fear index thei]ig it goesnñ >> with this run, we haven't heard companies, so far at least, really talk about the impact of a stronger dollar and the anticipation of that ñ■ss big of ana5■ impact? (t&há■p &hc% 89.50 to xd■4 is ñ)■'■eresting, we have beene■r so. corporate america hasn't beenwm■ able to usew3■that others they have used. they will pull theq■ arrow out
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their quiver when they are ready to what i findokko■b■■■c■ fascinat dollar has a littleñr■move to t■ upside it has coincided with a significant move in gold as well something has toç■ give. maybe this new i]paradigm, this metaverse, gold goes higher as >> you areñ■ worse thanh■átju(u■ america, throwing outñi■metaverr when you don't really mean the metaverse at all dan, what do you think of this i kno■1 it wasn't youro■i■ chart but whatx■ dor dollar >> it's breaking out you seeqwhat we all seee1 here if it wasn't the dixiei■ñ■ and s and attached to a whole host of other th]1■ you would want toe■ buy that but i am concerned what isw■ gog
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on withok rates. look at that move backo■ inq201■ what didñ■e■ ■a■á■áqcorresponde with itf■ indicated they were going start to raise rates we had a massive move. here is the thing. rates aren't going anywhere.( the feds balance sheet is more than it was. i don't think the dollar will g■ higher.l if rates aren't going higher, i don't think dollar is going higher >> the 10-yeare■ yield being whe it is, you think that'si] a betr 1i■d fed policy >>e■ ro■ ou morning saying if inflation is
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1980, it was recession bound i think it's interesting the ■■here is that everybody is on one side. everyone thinks ratesñ)hp)e goi higher they are pushing forward theñ■f■ rate hikes why aren't rates moving? i know there are peopleñr■ó■sma than me that have five reasons why rates aren'tx■ goingg■ñu hi. the technicals stink i think we haveçó■aw3■ó■+■u&tiyr chart. it might break one way or another, but it should be movin■ ifl■v■■■you look back to the e1 you seexd■bottom left. i just don't think rates are goingçó■higher maybe ratesxd■pointt(■to the fa growth expectations are as good as it gets for 2022.e■w■f■ >> tim, i don't want to put words in youre1w3■mouth, but÷■nr
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two charts can e1÷ you are sayingl■ people are pilg into the dollar because they are worried about what future brings which is what dan's words are. >> don't put words in my r mel. i am kidding the point is valid that rates assumption is that the fed is going to step in here more aggressively, there are two schoolst(■of thoughts, one, that the rates could go higher andçó■ you could see them moving substantially higher from here i knowx■ we have inflation i think we have a cycle in terms of creditlpe1 bubbles that have burst and where we are with money. the fedçó■gets in and getsñ■.■■e aggressive than they can and at some point rates ■q■ñ■going to come back downf■ again give me a 3% tenure and i willx■
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lock that in all dayç■ long. i don't think you willñ■ see a tenure in the foreseeable i think a lot of investorsñ■ wo■ love to own that long-term yield. the minute you see the feds getting more aggressive in the market, at some point i think the 10-year will pull back because the assumption is they are going to kill the economy.cñ >> b.k., you have aé@■ twistñ■ee 10-year. >> i am looking at the copper to gold ratio it has been a good predictor the idea is that they are both sensitive to economy andl■ inflation. if copper is rising faster than■ gold, thatñ■ suggests the econo butl get higher rates what we haveñ■ seenñi■(■recentle have gold breaking ob$ñ■from a low base albeit, butq■ breaking out and gold is responding to
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9■ 1■ that tends to be thew3 indicatorñr■d■for the economy. would indicate yields go higher. the problem with yields going higher, once youo■ get above 1.75%, that's where higher rates start to drag on growth we have seen rates get right up■ to 1.75% and haven't b!■gq"■off. i would argue that if we sawç■jw on the 10-year bond in this environment, that would meano■ there is something very wronglpn theñi■inflationxd■front. k>> guy >>x■ to dovetail onoki] brian k, look at what stx andñ■l■i■3■=■■ today just took get clarity and
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visual to everything he wasçó■ discussing my chart is the iwm. we played this a while back and that was my chart. so i would have found it + disingenuous after a nine-month hiatus where we traded between 215 and 235 w■ finally broke out. i happen to thinke1 if the iwm going higher, which it appearsf■ to ius■■it will be hard forxd■t broader market to sell off that wasx■ my most important chart. it continues to be >> guy, if you are a believer there is going to be a lpbreako and small capst■ generally do well, what does thati■ tell you? does that back up theçó■dollar e move, not thec 10-year yield?ç >> i absolutely believe
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up tim without question.e■ we have talked about thisñi■(■oe halftime report andw3■closing bell the move in the iwm hasko■ mir r in inflationary periods since the x■1930s. thate■ suggests thefá economy is should beçó■better i c%6lq■ tell you why 10-year yields are not higher. i think we are ■á■ng there by the end of theo■i■ year. >> b.k., dot(■yow3 think that's because ofq■ positioning >> yes, in some ways, but everybody was betting that rates were going to go higher.ç■t■i■we betting rates will go higher.q after they went lower, everybody
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had to unwind thosei] positions. look at the yield curve, it's >> now they arh■q■f■ going to rq ratesqand crush the economy. that's what the market is telling us e1e1(ñ■ let's bring iné@■ la. which chart do you thinki■ is t most important in the chart rightxn■]ñ and you can go off the board and pick youre1t(■own chart we have■ mentioneznme >> i will take option a and b. i agree with guy i likej■ the iwm chart i think this breakout in small cap is exciting.ó■■■ó■5■l■x■ theyq■ should have been doing much, much better. all ofx■ oure■ inbound call vole
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has been on small capd and whether or not this breakout can equityñ■ investors areo■q■ lookg there is stillc■ bullishness, ch to put toym■h■■■work q=im■■want tor undervalued opportunities are. everythingq■ñ■7■ we have heard companies in this earning season have been that underlying appetite is strong there is no growtho■ on thejf small caps are the way to express the desire to keep equity going forward equity going forward i thinkei■pá's the most a=ig the board. sp#a%5a=iqq■j■ chart is thatñi■affirmation by small caps, you have been on theñ■ sh
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and been rh:ráñ■ about looking all of theñ■ñ■ cyclicality gas? for your call. >> i agree with some of theu comments youx■ guys have made aboutçó■10-year yields and why rates are not breaking out more. what is impressive about smalll■ cap is they are managing to have thisf■ breakout. they are looking at the bigger picture on ther and moving forward growth versus value, cyclical versusw■ qecular, small versus large. i have more conviction inlp the small versus large than value versus growth. we niwoñ the 10-yearf■q■ yiemov.
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even tho probably notp■■■moving up, technically for that value trade to getñ■ going,fáp,■r+á■ need t financials to get goingqá and nd the move inxd■rates to cooperate i thinklp investors are shrewd d saying we know the economy is hot. we will play it in smallñ■ç■ cap keep an eye on what is goingf■n in yieldv■and we will reactw3■ that callñ■ and how itb inflation in the past.ñ■ what if we have an inflationq■ situation here where demand is fine, but youzv■ just can't getñ product? doesn't that cap the revenuet■ potential for small caps because they can't get the productf■t■ sell, it doesn't matter? >> i think it does for certain
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companies. i thinkñi■we saw that even if we look at big cap earnings iok think the market is being shrewd those who canñi■execute are bei rewarded those who haven't been able toe■ manage their inventory and supply chains ark( beingx■ punished with small caps, when your manager, they get caught up in in earningsxd■reports andqspjch company has been executing when you thinkw■ about theç■ investors who trade in small caps as an asset class, the bigger assetñ■e■ allocation fun■ hedge bets they are bets, so they ww,■ be focusing on things like doxd■i want to be involved ■f■ in u.s.ñ■ó■versus r i hear you, but i think the bigger picture investorsx■ are
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just not getting that x■granula to bet(■honest >>x■ lori, always good to hear from you.i]xd■1i]i if one is to believeq■l■ what t small chart isz■■■telegraphing, shoulj?h you be concerned thatte fed will play catch-up and hard? >> i don't think we should be concerned with the fed l■ (t&há■p &hc% i agree with guy i think it is a grea4■p6z■ lookg chart. i wot■rather buy thatq!9■ the ñ■ especially if you think the road ist■ not going top,■ collapse q1 i am not worried that going too■ change their0l■ tune
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be more hawkish. if anyt#ajeu)s& be stable for a while. comingx■ up, a blockbuster singles how traders are playing the china tech turnt(■d■ouarnd metaverse. corporate america seeing real money in thisfá fake world some names when "fast money" returns. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this.
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i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones
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the broader china teche■ sector getting aç■ booster alibaba up 2%.ç■ tim, good news for now what do you think ofe■ the sect■ >> veryñi■good news. even theç■ fxi was up. some oft(■the hong kong listed china stuff including banks and industrials.q■ j.d..comñ■ upe1 e■60% year overr
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evenl■ though this is 4 percente level off theirçó■peak ab the growth level wet(■saw in 20. what is going on betweenç■ aliba and the chineseçó■government in the last year and a half you get some senses■ç■hat the."■ pushback againstñ■ the monopoly practices, or not, but that's part of■p the claim, is benefit■ j.d..com alibaba in the last month and a half is back above the 50,u■■■b thas
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i think chinese interset names arew3■ interesting i!u■ñ■ love ten cent, but i don think#y■ >> an interesting point in terms of being more low key becausei]f the regulatory scrutiny on thee■ part of alibaba. the celebration was scaled down quite a bit. there wasxd■i■pe1 a yeare■ katia theokw3■(■headliner. benedict may be a fan of the show, but he is noñ■ñ■ katie pet >> i happenok to knowfá thatx■ perry is aç■ huge fan of "fast money. we should give her a shout the song e1"wrecking ball" is
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good you made a series of lower lows and highert■ highs you need toe1 close abovexd■180r 182 to have anq■ upside. by the way, the situation between china anl■ki] taiwan ha% been resolvedfáxd■by any stretch and i happen to think it's going toç■ get worse so i think you b at your own risk onfsh some of "my chinese0l■ tech? >> if you haveç■ to buy a chine tech, j.d. is probably the way to go. ñ■p decides to crackdownñ■ on particularl■ sectors (t&há■p &hc% this week that were encouraging. chinese government said they may ■■flow.i
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that meanse■ they need money ñ■t ■■ which means we may get ao■ cred the j. the chineq[■ and consumer aren'■ dead i would ratherñ■ buy the things china wants to buy rather than chinesew3■k equity chs to buy,lp thati■ takes out the government risk. here is what is coming up > wt opportunities inx■ thex■ metavee semis playing ç■catch-up /■ñs one chip about to rip.
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what's strong with me? what's strong with me? what's strong with me? what's strong with me? with me! with me! what's strong with me? with me! with me.
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my vision is to use the disney platformqforqthe metaverse. i think it createst■ a e1çó■dlp conventional canvas to expand zk experience or book experience. i thinkçó■those come together without borders,ç■ withoutt■ strength and ourr
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champing at the bit to get into the■á metaverse. >> so many companies trying to figure out howx■ to play this environment. who hase1xd■ó■an opportunity ins fake world and what isxd■the metaverse? andrew, great to have you with us know what itl■e■ is, but you sa■ metaverse isn't something that what is it goingç■t■ to be x■ a long-tm i■ world wheret(■you can go wherev you want to be and goqwherever you want to go dey the tecjo■j■tk to build that opens up all sorts of new ande
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exciting opportunities while we don't think thed>■e■u■■ dystopian version of metaverset■ is coming, there is still ample ñ■pd private companies alike to buil■ it >> a lot of companies areñi■ figuring out theq■ metaverseo■ strategy at this point dou■■■we knowlp t is añtb)afficñi■ in the beç■ worthwhile toñ■q■ these companies? how do you thinka■■■about projections ofe■ that?e■ >> we have metaverse-like things virtualñr■concerts van built their own experience in road blocks 40 million people visited it there areñi■thingsx■q■ happenin
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are already playing in a world that is metaverse-like for sure. [ question inaudible ]ç■ç■e■x■q■ >> guy, we are having an issue with your audio. while we try and straight[xx■■tt out.e■ andrew, in terms of r people may think this isf■ like web 3.0,f■ we are at the early stages what>#&■panies are benefiting from this ideaq■ç■o■ of metaver versus añ■ç■ buzzword. &há% like that, e1xd■ut, again, ther■ companies who woulde1 benefit. a company likex■ okroadblock there arefá brands tripping ove■ themselves to buildqd■experienc in roadblocks.q■
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that will drive traffic andé@■ (t&há■pú3 for video companies like zv■ea, take fá2,"n■ activision, theye1 slowly introduceñ■!■■■iti■ on t latest trend (■ elements on collectibleqt■ç■q■n have metaverse-like experiences, that will doq■ the same thing. the bigger countries, i would question the near term mark zuckerberg said itt(■willf■ take a year or two to get to his version of whúd■ it is, but ther are companies that can modernize for sure >> one wayl■ to think about the metaverse is as another trading block likew■uhe eu or china or u.s. or another gdp. do you have a sense of how big ofp■■■an opportunity is it
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$20 trillion or $10p,■ trillion? >> i don't have a market size. every time i see things about it, we get bigger andñr■bigger numbers. if we use a baseball analogy, we are in batting xd■ractice, let alone starting the day care. metaverse is noto■ necessarily a new conceptçor gamers. they spend $75 billion a year on virtual>'■ods. on the currencwlu■this is open for debate the web 3.0 folks think this is going to be descent the currencye■ will be cryptow3■ currency i think inç■ the view we have it will probably be some cases■ a
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real dollar ande1ñi■in others a■ non-backed currency like crypto currency some of the best investmentsj■xe probably on the q■ut space trying to build some of these experiences in the metaverse >> andrew, this isj■ fascinating stuff. i hope you willqcome back on th■ >> thank you very much >> guy, what do you make of the■ metaverse -- we have straightened out the audiof■w■ no, wef■ didn't. our bad. danr where doe >> i think near term it is in spend $10 billion to create some sort of universe thst■o■ at lea hise1 existing 2.5 billion users can use it and to use their cur%■r5áñ if
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they are getv i think that's how it starts finishes i think there is a visione1 tha■ the walledñ■ garden version will be a0■■■dystopian sort of versi. >> b.k., where do you stand+ on the metaverse? >> i think thea■■■ metaverse is going to be huge i 1 nci trading block as anyw■ of the countries we are talking about now,ñ■ñ■ euko■ or u.s. because ■ encompasses the whole globe. but that's 20 years down the line in th/■ç■i■ meantime■1+ you can■ stuff likex■i■c■w■ invidia butxd■ó■justx■ buying the theor■ get you some exposurexd■to the growth of the metaverse. coming up, one of our traders says this chip stocke■
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>ñady to breakout. >>i■plus, rivian charging higher in its first two days of trade buckle up.
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welcome back to "fast money."fáx gameq■ñ■ technology with a fres■ gameq■ñ■ technology with a fres■ all-timeh■u dangys one name is due for catch-up >> old schoolç((layers will know what i am talking about.x■t■e■ look at western digital. this stock is down about 25% hi. half thef■ multiple ofi■ g it caught a bid,i■ breaking the■ down trend that has been in place since the spring if you are looking toé out the semitrade, this is a very cheap name. this and micron. there isf■ only so much youxd■c pile into. maybe it makes sense now tofá l■ broader across the space >> guy, what do youv
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western digvba■■a catch-up >>d does my mike workñ■now? >> everybody sayse1çó■y■■■it'sp i knowu■■■it's notl■ katyqperry. just talked aboutxd■is about toe broken to the upside i like what dan is throwing, although dan knows5■■■you don'tq seagate on valuation alone >> tim >> you have a casel■ where maybe it could haveqbeen in oure1 blo. it, too, has beenqparabolic. and, yes,ok ç■amd and others h'" something to doñi■with that. western ç■dig had ane■ excellent quartu and had the sameñi■outlo■
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everybody else did about supply chain, et cetera ultimately we are working through that and starting to get ofy thisxú%■ a question of what the multiple is, the bottom end ofx■ the exotic range as these guys are pointing out, this is a case where i think there is relative value in flash and hard drive andl■ i think westernxd■dig looksqi■good micong jfup,ñ■ laying out t timeline and when you can plug into rivian options. growing up in a little red house, on the edge of a forest in norway, there were three things my family encouraged:
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kindness, honesty and hard work. over time, i've come to add a fourth: be curious. be curious about the world around us, and then go. go with an open heart, and you will find inspiration anew. viking. exploring the world in comfort. i'll shoot you an estimate as soon as i get back to the office. hey, i can help you do that right now. high thryv! thryv?
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welcome back to "fast money. rivian.t(■(■1l is rivian a stock you put in >>t■q■ no. not at this valuation. you aret(■pricing in ane1 awful of truck sales in this thing have at it, go for çó■t, as dan would say. it can go higher.i this is a proty market, but for me i am9 not going to be añ■e■ r of rivian here
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maybe i'm missingi] something. >> you may not want to buy the trade thep when do options start trading. mike >> when you haqo■■a new lis■e■t■ and wondera■■■when theñ■ options first startçó■1xd■trading, the exchanges will list once a couple of requirements ared met rivian given the fact its market cap is over 100÷ñ billion,qthe 100 millioí■3■of shares, it has met the requirements shareholders of record ixçq!%9-■■we could all guess the number is higher thanok that but typically they will check with the brokers to see how man■ shareholders of records there actually are much basically you aret(■looking at a minimumñ■ ofr
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m■ ìá■p &hc% will be listed exchanges won't be listed until they get notif)■k■%=9■ fromx> congratulations to shaun and faye i hope they didn't listen to th■ phone callç■ and hopew#ó it didt happen during thexd■ceremony >>ñ■ i would guess thatqrivianq■
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options would beñ■ highly sought >> one of the things we used to+ talk about isb.■ liquidity wille difficult and spreads wide until there is more room tou run under its belt i do think they are going to be popular. iq@■rr'■ they will be diffice] to trade, and they are going to be expensive.l you are going tol■ have to have some massive short-term movesw3o earn it out if you are playing"■ directionally. >> tim, does this makef■ you mo inclinedf■ñ■ to be in rivian stk >> elon musk tweeted they are not close to profitability and tesla is the only company in th■
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last 100 years level. the reviews that the trucks are getting, obviously deepxd■pocked but strategic investors and this is a car -- a truck that will be part of fleet mobilitye■ transportation and service>!s" maybe different than other competitors. it hasy■■■finally lit a fire unr ■a9 fo. it has been interesting. as rivian's valuation hó3■c■5■■e did they overimpute their stake inñ■i■rivian iti■as been interesting. ford has been down the last couple days.t■ gm is breakingx■ out >> tune in for "options action" tomorrow atçó■ó■5:30 coming çó■p,x■x■ honoring heroe jqpvé,
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the creativity of thinking out of the box, how you can take basic things in the world and create something that's highly productive... when i think about my children, i think about creativity. i'm less focused on technical skills, than i am in terms of making sure that the mind remains open. i am katy huberty. we are morgan stanley. every day in business brings something new. t so get the flexibility ofg sure the new mobile serviceopen. designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers
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with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. welcome back talking with the ceo of lockhee■
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martin catch the full interview at the top ofç■ the hour with jim cram■
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>> or who need the assistance of thexd■organization >> duringqthese covidñi■ restrictions.t x■ñ. to travis and kelly dunn in february ■■b■ schedule, but it wasq■x■ sqt(up(■r■&■ i made surei]hat the families - programs, the global war on terrorism is still on. we are still there and our men, our rangers, our mission, they're never complete they're gearing up for the next
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training cycle to defend the united states on the global war on terrorism we're out of afghanistan and iraq now, but they're all different parts of world here right now. so we want to honor and remember jim and all of the men and women that served our wonderful country over the last number of years and it is just after 20 years, folks, you know, this mission cost our rangers and their families more than you could imagine. these unseen wounds of war have left a lasting impacts and will forever be etched in their lives. so without the support of you and your viewers and our donors, the team did an outstanding job. we could not pough vrovide the resources without your help. so from the bottom of my heart, i want to thank you very much for having me back on. and we have a wonderful time on september 19th, we honored and remembered a number of people especially our first responders and jimmy and we brought it back
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to long island and we had over 500 people do a wonderful run pass jimmy's field which was muncie park field and it was a great tribute to jim and all of the people that we lost. >> jim, it is a high light of the year to see you. we appreciate you for your service. >> thank you. >> -- and thank you for your sacrifice to this country. >> still doing a great job here. so thank you very much for all your viewers, please look to lead the way fund.org and we still need the support thank you. >> jim regan, thank you so much. up next, final trades. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this!
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let's partner for all of it. edward jones
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time for the final tim? tim? okay b.k. >> well, thank you all to the veterans for their service and for those that served in vietnam. by mp, mp materials. >> dan >> a big fan of lead the way an big fan of my dad who is also a veteran to happy veterans day and western digital breaking out. >> do we have tim? oh, tim? all right. this show has just been gremlins
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tonight. what is your final trade >> no doubt. i love that movie. and again lead the way fund, thank you jim and thanks for all who serve. netflix breaking out, mel. >> thanks for watching fast, see you back here tomorrow at 5:00 for more, "mad money" with jim cramer starts right now. >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money," welcome to cramerica other people are my friends and j just trying to make you some money. call me at 800-743-cnbc or tweet me at jim cramer it happened again. i'm talking about how investor

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