days in a row means the low is probably to be respected that we saw last week and see how much -- >> we're how much of away from a record high right now? >> like 1% to an intraday high. >> after a very volatile period. >> absolutely. >> that's going to do it here on "closing bell. have a good evening, everyone. "fast money" begins now. live from the nasdaq marketed place, this is "fast money. i'm courtney reagan in for melissa lee. guy adami, tim seymour, karen finerman and nadine furman the bulls are back in a big way. the market soaring for the second day with the s&p posting its biggest gain since march we'll be joined by mike wilson for his thoughts on why you should be bracing for more volatility ahead. plus a semi surge. chip stocks soaring to a record close today. every single name up more than 2% but is it too late to get in on that trade?

and believe it or not, it wasn't all green arrows in the market merck, astrazeneca and lilly sitting on the sidelines during today's rally. what the traders are saying about the action in those names now. we start with a massive rally on wall street the nasdaq ripping higher by 3%. no surprise, it was the biggest of the big tech stocks leading the way. apple, microsoft, amazon and the company formerly known as facebook adding a combined $280 billion in market cap just today. that's bigger than one whole salesforce but it wasn't just big tech. every sector in the s&p was up today and the small cap russell 2000 rose more than 2% too so after two days of big gains, can we believe that the worst is behind us? it wasn't that long ago that we had that very big fallout on black friday when we started hearing about omicron and we didn't know what that meant. do we know what it means now are we really not worried

anymore? >> hey, courtney, welcome. as human beings should we be worried? i think yes, absolutely. we've talked about that a number of times what we're tasked to do is figure out how the markets will react. across the board we were surprised about how violent that sell-off was on that friday and the subsequent moves theoretically on the back of the variant that you're talking about now. i thought that the market would look past it i thought the market would be able to digest it and that we've learned how to trade around the virus. i was much more concerned, maybe inappropriately so, about what the fed has done and their 180 posture. so the 4530 level in the s&p 500, which was the prior high in september before we cratered in october seemed to be a logical place for us to stop and effectively that's where we did. so to answer your original question, is the worst over? given the seasonality, it looks like it may be. >> nadine, what do you think

do you think we can put stock in this rally is this the santa claus rally that we've been waiting for? >> courtney, you know, we're talking on friday, the vix was above 30 now it's down 22 and change, right? so i think mike, our guest, is right that you have to expect volatility i think guy is right powell and his words last week caused a lot of fear we've got a big cpi printing coming out this week, an fomc meeting mid-month and options expiration on the 17th there's a lot of wood to chop in addition to investors tax loss harvesting so i don't think it's smooth sailing, but b.k. and i were talking on friday, we bought tech today is the day to trim it. so be a little tactical even if you have a long-term thesis if you're going to make some quick money on some investments, prune it a little bit. >> karen, what do you make of what the fed had to say, what jerome powell had to say specifically, sort of taking some traders or investors a little bit by surprise

>> yeah -- >> i think the fed if anything. >> hang on just a second, tim. karen, jump in >> i thought it took people by surprise when he said it before and said it again. what seemingly sort of unified front, you had mester talking pretty much the same line, tapering and increasing the pace of the taper seems worth doing i forget who else came out, exact same message they're telling us we're going to increase the taper, therefore, ending the taper early and be in a position to raise earlier. so i think that scared the market a little, but it turns out there was more omicron there than -- i don't even know how to pronounce it after a few weeks of it, but there was more concern there than i thought if you saw the rally yesterday on the news that maybe it was going to be less -- you know,

that it was a milder form and then today that maybe there was some drugs that were very effective in dealing with the variants later in the day i think there was a south african official who said some things that i think cooled the market off just a little bit about how effective some of those drugs were so to me it showed there was more fear about the virus than i had thought. so you had the reopen trade really, you know, doing very nicely names like ulta rallying a lot today. i sold a little bit of calls against ulta and i had been buying back igb which i had been back. i didn't buy any back today. like nadine, i'm trying to fade what i think is a little bit of a bubblish rally, i'm not quite sure, and holding on to my old staples. fedex, united, rentals, banks, some retail, and then facebook, alphabet, microsoft and apple,

hanging on to those regardless of whether it's a christmas rally or not. >> yeah, those turned out pretty well for you today i'm going on omicron, based on my deep sorority knowledge of how to say greek words tim, if i can turn back to you, what do you make of the fed's messaging. hey, at least they told us in very clear language, not once, not twice, but several times what they're going to do, so it's not a surprise, we should be prepared. >> i think that's right. it's proven to be a growth concern, not necessarily an interest rate concern. think about today, also a day when the 2-year note yields moved higher and you continue to see some sense, the bond curve flattens a little bit. this is a sense that the fed is moving faster. as we've all kind of highlighted, the fed highlighting, first of all, be careful what you wish for but very clear if you look at the intraday lows from friday and built all the way through today's rally, it's been based upon growth and based upon some sense. and if you look at the

dispersion within the market, as much as we talked about mega cap tech and i know we'll spend a lot of time talking about semis, i think they're the most important to follow. i think you have a case here where the broader market rallied. the 15% move in oil off those friday lows is impressive. we had some trade data in china this morning that was very encouraging for commodities, iron ore, cop per prices you saw some retail and industrials. it really is a world concerned about growth we got a very weak payroll number on friday i think that's more of a head fake than anything, but that's where the market has struggled we're 3% from all-time highs and you wonder is the market's next move to react to the fed finally. >> you know, guy, they're talking about growth and these big cap tech names that just continue to move higher, but the russell also up 3% today so really broad based and some of those small caps are saying, hey, don't count us out yet.

is that a way to play this market as we swing higher if that's the way we believe things are going toward year's end? >> i think the russell is struggling clearly we had a false breakout a month or so ago. carter worth spoke to that i thought we were off to the races and that proved to be incorrect. the russell is back in that range effectively since february i think you trade it between this 215 and 230 level i can't make heads or tails of it right now i'm not really sure what the russell wants in terms of higher yields or not. i will say to tim's point and i think nadine probably agrees with me on this one. the swing we're seeing on 10-year yields is historic we were at 1.67 a week or so ago. great call by nadine in terms of selling the tlt on the rally we have seen. traded down at 1.33 and here we are at 1.44. we're nowhere if you look at it over the course of six months but the swings in between have been something to watch.

i think at a certain point that volatility will find its way into the equity market. >> nadine, you were nodding your head i want to give you a chance to jump in in. >> guy asked if i agree with him. i do agree with him. you could have reshorted it on friday but we're waiting for that 1.6 number so that was my safety train on friday when can you buy back bonds if you're looking for that safety train? we think if the 10-year hits 1.6, which it might do again, as guy said it's been pretty volatile in a wide range, then you can go back and own bonds and that might be a good bet if you're looking for a safer part of the portfolio to build. >> despite the rally so far, our next guest says it's going to be a bumpy ride through year ending let's bring in morgan stanley's mike wilson. mike, i'm going to give you an open question to kick this off how do you think we should read what's happened here the last couple days? it feels like all systems go

but should we be worried that there's some bumpy road to go still? >> i think absolutely. i think this month is going to be all about positioning both on the upside and the downside. one of the things we talked about this week is i think more than ever, it's december i think a lot of folks had a tough november and got whipped around you need to fade moves both up and down we just had two really good days i'm fading it. last week at the end of the week we got clocked into thursday and friday and you wanted to pick up some stuff but these are trades and i don't think we're out of the woods at all on some of the concerns out there i would highlight three things that we're focused on the most the number one thing is tapering we've been talking about this since september. yes, the market knows this is coming the fed has been very explicit about it when you're going to take $1.5 trillion on an annual rate out of their purchases and take it to zero in four months, it's going to leave a mark, okay?

that's valuations coming down. so we want to be very focused on valuation. you cannot overpay for assets right now. and the russell, guy was just talking about a minute ago, i'm a fader of the russell for sure because the second concern we have is earnings stability and the ability to operate in what is a very difficult environment. you know, this is a low quality index. it's a bunch of companies that are probably struggling to operate in an environment that's quite difficult. so valuation, earning stability, those are the two key factors we're really focused on and this volatility stuff will be with us through the end because of positioning and the need to perform both up and down >> mike, you've been pretty, i think, consistent and steadfast in your caution here and you have been for a couple of months largely as we set up for 2022 and you're talking about higher rates and eps downward revisions, you like value, you like health care, you like

banks. one of the problems for value, quote, unquote, has been that value is a major, major underperformer is this the setup that finally sees it? because again, look, banks have had a nice run you could make an argument that they have been a beneficiary of being the best kind of value on the block, where deep value has been kind of the death trap. >> yeah. no, we don't like value per se like the growth versus value continuum. i think people obsess over that too much we have at times too we're making a call on valuation. growth stocks can do just fine, you just can't pay egregious multiples. reasonably priced growth stocks. valuation matters in things like health care we like because it's probably the cheapest it's ever been relative to the market and actually a pretty good growth outlook. banks will be difficult if the market decides rates are going back down and there's going to be a bond rally. we think they're cheap enough

they can weather that storm and the earnings power looks pretty attractive into next year. >> mike, it's karen. thanks for being on. i just want to go back to something you said about the fed tapering so we all agree that they have telegraphed to the market very, very clearly but are you saying that you think the magnitude of the taper is such that even if everybody knows it, there's still going to be a negative reaction to it >> i think so. i think definitely for certain assets i think we can all agree that there's been a little froth and speculation in these markets this year. and a big part of that has been the monetary accommodation, not just from the fed but all central banks. taking the air out of that balloon and doing it quickly i think is going to have a negative impact on some of those parts of the market. now, we saw that the last couple of weeks people were making the argument that that damage was done and we would disagree with that we still see pockets of excess that will be hurt from the air

coming out faster than what people were thinking just a month or two ago. >> mike, even if we're not exactly sure what's going to happen, i guess we never really are, and you see three possible outcomes, what's the best way as an investor to set yourself up for 2022 >> look, there is a bull story here that probably at some point next year, and we're onboard with this, the global economy hasn't even begun to recover yet. so the u.s. has pulled forward on demand. it's been the place to be for sure but the global economy is still kind of wobbling our expectation is that the virus will work its way through this next wave, we'll get vaccination programs up and running further around the world and have a synchronous recovery in the second half of next year. i just don't think we're there yet. we have to get through the initial stages of this tapering. by the way, the fact that the fed is tapering faster is a good thing. it means a recovery is progressing. outside the u.s. i think there's more to come and that could benefit multi national

companies. i just think right now you want to stay closer to home in terms of making sure you know what these companies are going to earn in any kind of environment and you're not overpaying it which is the key variable for the next three or four months. >> got it. mike wilson, thank you very much for joining us tonight and talking through it all tim, what's your take now that we've flushed out this conversation a little bit with mike what do you think of his points? >> mike is right to be cautious about more fed i believe we're certainly going to have to deal with more fed and, therefore, i worry about an environment where central banks are all saying the right things. it's interesting you're only seeing more of the emerging market banks continue to hike rates aggressively and that tells you about people that are very fearful of inflation. i think the fed is moving faster on the taper not necessarily because they're so excited about growth but they too are worried about inflation. so i think that's the thing that we have to be careful of i think the eps revision dynamic may be the place i'm most worried but i would drill into

the places where he is reasonably constructive on next year and talking about multi nationals. think of a coca-cola, a raytheon, even walmart on there as you get into slightly more value oriented companies that i think are less exposed to some of the kcyclicality of interest rates. >> karen, do any of those seem to make sense to you to add positioning if inflation takes off, is even hotter than expected on friday or beyond >> was that to me? >> yes, sorry, karen yes. >> okay. so the retail names that i like. >> yeah, some of the retail questions. tim brings up walmart, that could be a good place to go if consumers are more value oriented in the face of higher inflation. >> target is actually my biggest retail position as well as home depot and lowe's that's a little bit more of housing plays but target is my biggest position hasn't been great the last

couple of weeks, although it's had a very, very good year i actually bought a little footlocker today i cannot believe how cheap it is you know, it's crazy cheap but, you know, clearly there's some headwinds to the business but still ridiculously cheap and then i own capri that had a nice run recently that's sort of my retail exposure i think that they do have -- some of them have good pricing power. lulu i'm out they have excellent pricing power but it's too expensive for me. >> i remember talking about footlocker after those earnings results and the name taking a live you had mentioned that you thought about nibbling you mentioned housing. we do have an earnings alert for you. shares of toll brothers, volatile after its report. let's get right to diana olick with the details what happened here >> well, it was a strong beat for the luxury home builder on eps and revenue but spline chain issues are still weighing on

deliveries the ceo said they are extending delivery times for their homes they did not say that toll is slowing home sales which we heard from d.r. horton while supply costs have come down, they said based on the strong pricing embedded, we project a 250 basis point improvement which we expect to be second half weighted as peak lumber prices from the spring of 2020 flow through our first half deliveries so again, that big lumber strike still weighing in there. one big surprise in the release, prices toll is on the high ending in the luxury sector but estimates were $840,000 per home and it is now $922,000 while signed contracts were down from a year ago, the value of those contracts was up 10% so inflation, i can't say it enough, courtney, inflation continues in the home builders. >> wow, $922,000

that is much higher than estimates. diana, thank you guy, what do you make of toll brothers and the home builders in general we know supply is tight. diana talked about inflation is this a good way to play >> absolutely. i think we've been pretty, to tim's word, steadfast in these for quite some time. in terms of toll brothers quickly, the average contract price, by the way, was over a million dollars. i think that's the first time i've seen that that speaks to a lot of different things in terms of the stock, here we are at 71 sp.5 this was in a pretty defined range until recently 62.5 to 66, finally broke out i think what you're hoping for is a move back to 66, and see. if it gets to 66, i think you buy it with both hands. >> nadine? >> my back up the truck is at 64 but similar view the stock ran into the print it was a good print.

obviously on pricing because inventory is tight, pricing was firm going into the spring 2022 season the thing we were watching is gross margin so consensus or expectations was for 200 basis points and it was 250. that said it's back end loaded so it's about the lumber pricing but we'll be watching those margins to make sure those are coming through as guy said, we like it. we have home building, itb through an etf i would wait on toll brothers because it did run into the print, somewhere around the 64 range is where we'd be backing up the truck. coming up, we've got a trader triple play in the car space. the headlines catching our attention and how to trade them. that's next. and shares of intel surging after the company announced it will take its self-driving car unit public. we will break down the details and the entire chip space in just a few icwi ft. stk thas

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welcome back to "fast money. we've got a trader triple play in the auto space. stellantis says the company plans to generate $422 million in software revenue.

ford partnering with salesforce to launch a new subscription software business for its commercial fleet shares higher by 4%. more drama for elon musk he was slamming president biden's plan to provide tax incentives for electric vehicles as part of his build back better plan he said honestly, i would just can this whole bill. don't pass it, that's my recommendation so lots of news in the auto space. karen, any of those headlines stick out to you >> yeah, a few that were similar. stellantis, that talk of trying to get to $23 billion of software basically subscription service revenue by 2030. it's not just ev, it's a land grab to own the interface of the car, the intelligence of the car, the feedback of the car and how the driver or the passengers who use the car, that kind of revenue. converting that into a subscription as a service and

getting that kind of multiple. that would be enormous if you look at ford or gm that trades at a high single-digit multiple to get some signed of saas multiple in the 20s or mid-20s would be tremendous. that's a gigantic leap from here gm is my auto bet and it's near the highs, but still that pe multiple is still ridiculously cheap. anything to move it would be nice. >> tim, what about you which of these headlines stick out to you >> i'll jump with ford just because i'll extend what karen said first of all, the f-150 has always been an office on wheels for a good portion of the small business community of this country. it's the most popular vehicle. the software that will now allow them to do paperwork and digitize a lot of their work but at a $39 a month price tag with interactivity is to me the kind of thing that should re-rate the stock. but maybe more importantly even

if it didn't have any of this, this is a company that's largely as profitable as it's been in decades. in other words, they have eradicated bad businesses and streamlined a lot of processes and dropped regions that were not making money ford at 9.2 times earnings is the story. today's announcement is about a company that's trying to strive for being more involved in their consumers' life, and they're doing it. >> nadine, does mr. musk's headlines have any interest for you? i know we pick up on every word he says. i don't know if it makes any difference if you want to look at tesla stock or not, but it's a fun talker. >> yeah. i mean a little surprised there. we've been long vw and porsche so we're going more overseas in the auto area. but on days like today, i hate to sound like a broken record, porsche is up over 8%. those are the kind of days that you're given a gift. people are really excited about things, market bounced back.

take a little off the table. that's what we did we've been long the structural theme. we think it has legs for the intermediate term but it doesn't mean you have to run in and buy on a day like today. we have to caution for investors, you can go long the theme but pick your entry price. get in at a better price. >> we're just getting started here on "fast money. here's what's coming up next. we're dipping into the chips. intel planning to take its self-driving car unit public buckle up, the traders are speeding into this trade, next. plus, freshen that trade up for you? analysts sipping on starbucks ahead of a big union vote. so how should you play the name? you're watching "fast money" live from the nasdaq market site in times square. we're back right after this.

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it is a hot category and we have the hottest asset hidden inside of intel, so we wanted to give it more visibility f this is now where we're seeing that inflection point in the category and now it's going to leap forward to be a leader in the entire av technology sector. >> that was intel's ceo on the reason behind spinning off the company's autonomous vehicle division the ipo is expected next year. the news sending intel shares up 5% today check out the moves in marvel, nvidia let's turn to jared wisefeld,

tech sector specialist what do you make of the move >> if you're pat gelsinger and intel, this will help validate it they acquired the asset for $15 billion and now it has a $50 billion valuation. that would be quite strong with respect to the multiple paid it would probably be about 25 times revenue so that's a strong valuation. number two, it helps brings in proceeds from intel and so as you think about diversification efforts and getting capital in the door, it certainly helps not only did intel benefit on the news but you saw nvidia and

marvell also gain on the news. you look at what this brings to intel, was this the right decision 100% it brings capital in the door. does this change the long-term trajectory is i not as much those shares continue to rise appreciably and that doesn't change the long-term trajectory of intel so there's certainly a lot of moving parts here. >> jared, this is nadine i have a question for you because i think you're alluding to this, which is they have aggressive capital spending plans, but that's just because they have been behind the curve versus peers and so is this a sell the news event if you're an intel owner, or how should an investor from intel play this from this point going forward? >> if you're long intel and you see this news, i think you have to be viewing thispositively

from the standpoint of the asset was acquired at $17 billion and it's now going to achieve a $50 billion valuation. that's a positive. they're going to retain majority ownership. it makes sense they're getting proceeds in the door the bigger question is how do you think about their ability to execute and compete against amd, compete against nvidia, compete against marvell. those are the long-term issues actually unresolved and there was a risk-on day in the broader markets. the names that investors want to gravitate towards are the structural share gainers like amds, marvells, nvidias. >> jared, you are a tech specialist and so we'd be remiss not to ask you about the aws outage today it seems like every other day there's another press release with another company that has moved or migrated or started using aws. this outage was pretty significant.

what are the ripple effects going forward? is this more than just a single event? >> for sure. it's a good reminder how the world is so tethered to all of the cloud providers. whether it's microsoft, google, aws. those three dominate our lives this will only increase supply chain complexities tha only increased significantly because of covid over the last 12 months what's amazing is not only are there external implications, but amazon itself is being impacted pretty significantly if you look at the delivery network for amazon and look at all the amazon partners that are trying to make those deliveries and access the amazon app via aws, that's all down right now so the ripple effect not only with respect to if you're an aws customer but amazon itself across the supply chain, especially as we approach the holiday season, this is not the appropriate time to have this outage for sure. >> jared, thank you very much for being here with us today on a very big day for your sector in general and particularly

those chips. >> thank you. >> tim, i want to turn to you. do you think it's too late to get in on some of these chips names? nvidia higher by 7 plus percent here today. >> yeah, and 15% off the intraday lows in two days. look, the fact that semis are closer to their all-time high than any other part of the market, so not only just the s&p but the triple qs and within two or three percent, i think semis are the ones to watch and semis relative to the s&p. if you wanted to do an smh divided by the spy graph you can see semis are arguably breaking out against the s&p through the top of a range they have hit a couple of times in the last year. so yes, i think the answer is i think there's room in a world where we've seen this, one of the reasons why nvidia is up 15% in two days is because the high multiple concerned market where growth is in question is going to get whacked. but if you stay the course here,

this is still where you want to be buying growth in many cases maybe not at nvidia and i'm not going to lean on nvidia at a reasonable price, but i think you are getting in at qualcomm. i'm an intel shareholder and i do like this deal. this is 2% of revenues and could be 25% of market cap in return on this investment so i think it's a good day for intel. >> and a good day for you if you're a holder of intel. we do have a market alert on epam solutions shares soaring as it's set to replace kansas city southern on the s&p 500. guy, this is not a name we talk a lot about, epam, $36 billion what is this company >> the company grows by acquisition, software company. it's a very interesting company if you look. they have probably made 15 or 20 acquisitions over last eight or ten years. the stock traded up a couple of

weeks ago or so and sold off aggressively i think the 575 level was the previous low 21% and basically five or six trading days you look and say this stock is expensive. well, you have 40% revenue growth i want to say you have close to 35% eps growth so that might justify the closest 60 times trading against its numbers so the stock is probably trading 645 or so in the after market on this news. it has real potential to take out that all-time high for a few weeks ago. coming up, starbucks percolating higher after an analyst's upgrade. but could a union vote turn this coffee stock cold? more details on that next. plus we're diving into big pharma as a couple of big players sit out of today's market rally we'll break downha wt it means when "fast money" returns. this... is the planning effect. this is how it feels to have a dedicated fidelity advisor

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as the company loses the bid to delay a union vote let's get to kate rogers she has the details for us hi, kate. >> hey, courtney the nlrb siding with workers trying to unionize in buffalo, new york, allowing a vote count of the 81 workers to move ahead on thursday being collected tomorrow starbucks had wanted this to go to one regional vote that's a move that typically favors the employer but that request was denied in a letter to partners today ahead of this decision, the ceo, kevin johnson, said we feel strongly that all partners in buffalo should have a voice in the elections. while we recognize this creates some level of uncertainty, we respect the process that is under way and independent of any outcome in these elections, we will continue to stay true to our mission and values starbucks workers accuse starbucks of straying from those core values and said once again starbucks tried to stop partners from voting and once again they failed now, if successful, this would mark the first unionized

starbucks location in the u.s., but the street doesn't seem to mind the stock closing up 2.5% higher today. kevin johnson also will be on "mad money" tonight with jim cramer so tune in and we'll see what happens with this vote later in the week. >> thank you, kate thank you for following this for us. shares of starbucks were up along with the rest of the market to be fair but it was upgraded to buy at mkm let's trade this one karen, if this vote is successful and if this one store does end up forming a union, does this play into any investment thesis if you're an investor currently in starbucks or considering buying into starbucks? how do you need to weigh this? >> well, i actually was an investor in starbucks until about i think it was maybe yesterday. sold some because i thought there was some other things to own. all the days are blending together this isn't part of what i think about. to me it's some of the macro issues china is a significant part of

their business and i think we're seeing a slowdown there. i had thought we would see better results there this year than we have, but that's okay. and then i just sort of feel like the multiple at 30 plus times deserves a premium multiple for sure, it's a premium company, but that just seemed high to me in a world where i think multiples will come down as the fed tightens. so for that reason i sold it, not for this labor reason, which is a headline but doesn't -- i don't know, the input into the model for me isn't as important as some other things. >> nadine, you're nodding here >> i agree with karen. higher labor costs are happening anyway, so this is, i think, a bit of a sideshow, but you have to look at other input costs coffee is at an all-time high, another input costs. even though it got a bump today, the market was up and people are thinking maybe there's more foot traffic if omicron is not as bad. but one problem, though, is people think they will be able

to pass through price and they have historically, but consumers are getting hit on all areas there's a point in which, maybe not in my family the way my kids like to go to starbucks, but there's a point which you draw the line and consumers end up downsizing orders. so i would be a little cautious. our valuation here, we're looking at a price of 116.50 and our range is 107 to 117 and so that's the high end of the range. and it has an implied volatility discounting. before it was at a premium so people were paying for protection, people were concerned. now people have wiped off that protection, so i think as karen said, there's probably better opportunities elsewhere. >> i try to draw the line myself but i cannot make a pumpkin spice latte as good as starbucks can. coming up, buzz kill and big pharma do our traders see this pullback as a healthy entry point find out if they're adding a dose of this to their

portfolios. one options trader sees this trade. what is it much more after this break what's strong with me? i'm ready for anything.

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money. one sad spot in today's market, big cap pharma stocks. merck, astrazeneca and eli lilly sitting out the rally. merck down the most, 1.6%. guy, you flagged this underperformance today why are these names in particular not participating >> each has its own story. full disclosure, my wife works at merck but merck was a $72 stock on september 21st, proceeded to trade north of $91 in a few weeks on the back of some of the covid news then obviously we've round tripped it hiv pipeline concerns i think downgraded at guggenheim, citi had a negative note. merck at $72 is too cheap with close to 24% eps growth. eli lilly is more of a technical thing. carter worth and the technicians will look and see the potential for a pretty major double top but eli lilly is cheap as well each one of these names has their own story.

in terms of those two, both are very attractive. >> tim, you're nodding here. do you see an attractive entry point for any of these names, taking advantage of the move today? >> well, i love the call on merck. i think big pharma has been somewhat pulled and pushed in the direction around covid when in fact arguably at one point we were saying that even pfizer, who's had probably the most to gain net, net was not going to be a major beneficiary i think the more interesting move today was for me in the ibb. and again an ibb that for four and a half years i think you could draw outside of some volatility around covid one of the best charts out there. ran out of gas in august a lot of that was with moderna if you look at the ibb, speaking of technicals, and you draw a horizontal line from july of 2020 all the way through, that was resistance then. it's major, major two-year support since then, or one and a half year support since then i think it's something investors

should look at as an opportunity. amgen has been a big disappointment and some of the head fake there and alzheimer's and whatnot. but gilead is a company with cash on the balance sheet, also a problem with falling revenues from hcv, hiv. but again, very interesting place on the chart, really outperformed today and i think moderna as well. coming up, options traders are piling into this one name, making a bet shares could really get energized. will this name heat up your portfolio. mike khouw will break down the move that's coming up next. you're watching "fast moy"ne next we're back right after this. issk for a long period of time? why would i miss work? i don't know. you could sprain your ankle, throw out your back... get hit by a school bus. or a regular bus. get kicked by a horse. fall off a ladder. bathtub mishap. polio. boating accident. stuck by a fork. rabies. wolves. scurvy.

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give your business the gift of savings today. comcast business. powering possibilities. welcome back check out cnbc's new next generation index, outperforming the broader market today it's our exclusive list of the 50 stocks most used, most visited and most admired by millenial and gen z investors. our own jim crkcrammer digs int the names this thursday. sign up with all of the info right there on your screen check out cheniere energy. that stock up nearly 80% this

year options traders are betting that new all-time highs are in store in 2022. mike khouw joins us now with the action hi, mike. >> hi, courtney. so we saw calls outpacing puts by 9-1 today on above average call volume. the most active were the january 125 strike calls trading just under a dollar buyers are betting that the stock could rise to or through that 1.25 strike price by january expiration that would put the stock at new all-time highs and represent an increase of well over 15% when those were put on when the stock was a little higher than it closed today seeing some bullish activity here >> thank you very much, mike nadine, what are your thoughts on this name 80% is an awful big way to run for the year >> i would have sold those calls to those people. i think -- you know, we've been big energy investors all year round. we've told you about bp, shell,

total. so many different positions that we've had. but i've been trimming the last few days, so that's what i do. when people ask my husband what do i do for a living, he says my wife buys low and sells high, that's what she tries to do. that's what you do on energy here i would take the opposite side of this one. that seems a little bit rich for me i'm looking at 4% downside and 80 dips upside so i'd probably fade that. >> karen, what do you make about this trade or maybe energy in general as it keeps going up here. >> well, so for me i don't have giant energy exposure. i do have the oih which has underperformed the commodity lately, so i hope that they converge and if energy is flat or higher, i think that oih trade will do fine. >> for more options action, be sure to tune into the full show on friday at 5:30 p.m. eastern time. up next, it's already time

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welcome back to fast money take a look at shares of stitch

fix dropping after its earnings report, off the lows of the after hours but down significantly after issuing weak sales guidance. it's time for the final trade. let's go around the horn tim, you get to go first today. >> courtney, great having you. i'm going to disagree with the girls on starbucks one of the hardest things to do is letting your winners run. i think they have major, major brand power and pricing power and i stay long. >> nadine? >> i'll go with ice at the 130 level. it's got data, it's an exchange and they make money when there's energy and rate volatility, which we think is going to continue. >> it's at 134 right now karen, what's your final trade >> yeah, we talked about big cap pharma and i really like the whole space and a number of names. but pfizer didn't participate in the rally but i love these low multiple, nice dividend payer stocks, especially if the fed will raise and i think that will happen >> guy, wrap it up for us. what's your final trade?

>> cord knee, how do you feel about michigan being in the final four there >> you had to do it, didn't you? rub salt in the wounds, man. >> i know, it's a tough one. listen, it's been a while. amat >> thank you for watching "fas my mission is simple, to make you money i'm here to level the playing field for all investors. there's 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 want to make friends. i just want to make you money. my job is not just to entertain you but to make you money. call me or tweet me. if you pick in the teeth of last week's selloff and ran for the