180 we saw early i'll be back at 6:00 p.m. for a bonus hour of "fast money. tweet us and tune in to see if we answer your questions. >> i have one. >> submit one. have a great weekend, everybody. "fast money" begins right now. i'm going to tweet once in, too. tonight on fast, why carter worth is inclined to believe, netflix and bills, the streaming giant upping fees, and investors upping the shares, and later on options action, jumping the ark innovation how do you probably yourself as dollars flow out of the cathie wood's ark fund. tonight ace lineup, steve grasso, jeff mills, nadine

termen, and pete najarian. welcome, everybody good to be with you the dow dropping 200 points to close out the week with jpmorgan, goldman sachs, american express. together, shaving about 170 points off the endetection that's most of a -- the weakness coming after earns from jpm and citi both dropping after warning of rising expenses, particularly with wages, wells fargo a surprising, so was this a case of traders selling on the news, or is there something more going on here? steve, let's start with you. not lose sight of the fact this is obviously one day's trading, and there are an awful lot of favorable wins, are there not, supporting the banks industry? >> yes, but when you think about

banking, tyler, you they about the xlf, the etf for the financial sector of which berkshire and jpmorgan make up about 25%. so if you look at berkshire, it's not really a financial, it owns a couple things there it owns appearing, koch, a couple other names that's the one i would continue to buy jpmorgan, when you think about why is it extended we started trading as if the fed was going to stop asset purchases, raise rates and clear the balance sheet immediately. i'm going to take the under with the fed. when you look at these financials, they've doing extraordinarily we have for the last year. time to take a bit of profit if you want to play the regionals, where you think the

economy will start back up again, that's a place where i could by other than that, i think it's time to fade the financials. >> jeff, i see you nodding. >> yeah, yeah, i want to add to a bit of what steve says for me, i think it's generally a time horizon thing i think you can ride the bank trade a bit, for another quarter or two, but i think the rate hike environment and forecast will ultimately be out of step with reality i sent in a chart, hopefully we can put it on the screen, but i think you're already seeing signs that inflation is peaking. prices paid, roll over ultimately, you have the ten-year tracking along with the inflation indicators those are trending up. what we have seen recently is those roll over and the ten-year continue higher. there's no rule that says it has to ultimately roll over, but i

think that inflation dynamic ultimately weighs on the bank trades i think there's money still moving in that direction and there's momentum this is that time horizon thing i'm talking about. i think there's still more room for them to recover, but also to reiterate what steve said, i think you should differentiate between what's going on between the regional it is and the larger banks the regionals have broken out. i would prefer to see jpmorgan above 170, to break out to new highs as well. like at the kbw banking etf and the xbe was up more regional banks there. >> nadine, i see you nodding as well we had a guest earlier on "power lunch" that made this point,

sort of leaning toward the mid-sized banks. do you buy that argument in banking as the stronger place to make money now >> you know, there's two things i think to what jeff said. we were laughing about it this morning because we were agreeing you want to rent this trade. you don't want to own it it's time horizon, number one, but then, two, for us. it's not images about the mid tiers. we're going international. we own european banks. you could use the eufn, that's been on a tear we're looking at other parts of the world that are opening up, that individual stricter rules, you know, they have a ton of catch on the balance sheet we think they'll have more value lovers versus the u.s. here, especially since the valuations only more recently have popped up we've seen the u.s. benefiting pretty much all year.

>> are you a buyer, renter, seller of banks? >> a buyer and a renter. here's why, tyler. i think this is a great example. if you're looking at wells fargo or jpmorgan, where is it trading versus books that's what we oftentimes use as a measuring stick. we're not necessarily looking at p.e., but what is the price versus the book? you look at something like jpmorgan, it's more than two times book that's expensive wells fargo has rips out and outperforming, and basically 1 1/2 times book, so i think you have to look at each one of these names in a different manner to see where they are, which one is a bit more expensive. when you heard today and looked at the guidance, that didn't look that great, so i think there are different a's, and, you know, for instance, i own

bank of america, i also own u.s. bank i had wells fargo. we had huge call activity just two days ago, where they were buying the february 57 1/2 calls. they both 28,000 of those calls. boy, did they work almost immediately. by today, with the big run-up to new 52-week highs, those calls nearly doubled on the day. that was the rental side of it i'm actually out of that trade, but i think i'm very confident in bank of america and some of these other banks as well. u.s. bank is one of those names as well, but i think there's regionals that have a lot of room to run. i don't know if people can see the that is right there. wells fargo up 21% so far this year, citi 10, bank of america 7, morgan stanley and jpmorgan basically flat any final reactions or thoughts? >> pete's exactly right. u.s. bank, i was trying to rifle

through those charts pete is a gentleman, and he knows the stock market extremely well i was trying to rip through the charts as he was saying it the best chart he mentioned was u.s. bank. it looked to be a double top and is breaking higher from there. wells fargo to me, too overextended i agreed with everything that handsome pete said, but the problemivity is when you look at this and see on a relative strength index, you don't have to -- when i see a nosebleed chart like that, it's going to warn a lot of selling. i don't disagree with any of the fundamentals folks, we're going to move on i can't take my eye off the artwork. i love that painting of that little girl. that's lovely. meanwhile, the s&p -- it's fun to see everyone's houses the s&p is climbing a

perfect slope, but the chart maer warns perfection never lasts, not even with me. let's go to carter worth >> there are moments in time, but it doesn't last forever, of course, often not very long at all. the market has been perfect, everybody knows this it's been a perpetual motion machine, when one area falls, another area picks up the slack, but we aren't churning and stalling the percentage of stocks are down 20% or more, and now we're losing some of the big ones. i think it ends up more of a drawdown that we have seen three charts, all identical, there's the chart of the s&p, 18 months it's literally a perfect north

by northeast, never too hot. look at the second channel that it's been in, and the question is, is this going to persist what's happening on the surface would suggest no the final chart is leaving the bottom of the channel and an arrow. the arrow is a judgment, that's mine what we're seeing here is big stocks like microsoft, big stocks like google, which will ultimately drive the performance of the market starting to flag if there was enough -- and other areas to pick up a slack, that would be okay, but for every bank that's been good, there's a jpmorgan, a jeffries, consumer names collapsing from nike to lulu so the question is do we churn and roll further i think it's the latter. >> the s&p 500 today was basically flat, the dow down a couple hundred, nasdaq basically

flat as well, but you look tess plus plus/minus, that tells you, as you said, the percentage the stocks in the s&p 500 more than 10% off their highs, these are the things that internals, pete najarian, that we have to pay attention to when the market is churning, as carter put it. >> no question i think so many are following the charts these days of people like carter, and for the wight reasons. these charts have been very, very incredibly accurate, so it's something i think we all have to be very aware of that being said, one of the reasons i loved this past year, we had this rotation throughout the year that i thought was very, very healthy yes, we had some falls to the down side, but i loved the

rotation there were some sesctors that screamed all year long, but the reality is i think there's something healthy to look at ms. underneath, but what are the sectors taking charge? >> jeff, is there a trade here in the broad market, in the s&p, based on the charts that the chart master just showed up? >> i think there is. i think the continued momentum will be in financials and energy longer term, maybe you have some questions there, but that's where the momentum is. to your point, tyler, about internal, our friend chris had a note about risk from the top i think that's what we're talking about. sadly, i agreed with carter that i think there could be more room to the down side so the percentage of nasdaq 100 stocks above their 200-day moving average is only 55% in the prior corrections in the nasdaq over the past, say, 12 to

18 months, we've had the benefit of much stronger internals that's not the case today, so there's a less participation under the surface. that worries me there's more room to go on the down side. i look at the ways microsoft is trading through the 50-day, through the 150-day. that makes me think there's technical damage that needs tore time to resolve itself i worry about that weighing on the overall index. coming up, when we do come back, a streaming surge. why news of higher prices got netflix shares popping today how you should trade the stock right now. and into earnings, and later retail shares getting wrecked today. should you go shopping steer clear of the discount rack we've got answers when "fast money" returns

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customers may not like it, but investors seem to. netflix stock popping at announcing price hikes julia boorstin has the details. >> as netflix has more content, it's raising prices before $1 or

$2 per plan. the standard plan is going to $15.50 a month the basic plan will be a dollar more expensive, and the premium plan is going up by $2 to $20. netflix says we understand people have more entertainment changing than ever and we're more committed man ever. we're updating our prices to continue to offer a wide variety of options mark mahaney says he interprets this as a sign that subscription additions for the quarter that just ended, the outlook for next year are reasonably robust netflix has demonstrated pricing power. while they have increased pricing about every other year, he knows the number of subscribers has accelerated.

>> all right julia, thanks very much. let's trade it nadine, i'm going to turn to you first. obviously the stock moved up on this news. a buck and a half, $2, maybe these just inflation, right? >> the stock was already down 25% from the november highs, that was the time to short it. investors know that the momentum faded during the quarter so they're probably going to miss guidance next week on the metric, but we were expecting price to say go up, and that's why they did it ahead of time. they're going -- what are they going to do? hike prices, and you like at jim gaffigan's new stand-up comedy, so it's a trade, but i wouldn't trade it into next week, the good news just came out. if there's any weakness next

week on the earnings, that's probably when you pick it up it's about a fair fight right now, 12% up, 12% down on the potential earnings release. >> what do you think, steve, of netflix? last night i watched a movie that is a netflix production, widely panned by critics, called "don't look up." it has dicaprio, jennifer lawrence, meryl streep, jonah hill these folks don't work cheap. >> by the way, i'm actually going out with three of those that you just mentioned tonight. that's sort of a coincidence [ laughter ] >> i think when you look at the chart, nadine is on to something there. the stock has been down about 26% from the november highs. it's sitting right at support, so technically it is a buy my problem, though, tyler, is think about the bigger picture

here how many streaming services can we all carry >> right. >> so, for me in the beginning, i thought netflix had the pricing power. it still does. what i'm starting to feel, though, is that netflix is trying to get more from a slowing base -- or slowing growth rate. so i think fundamentally i'm negative on it technically i think can get a near-term pop like nadine said ultimately i think it's sideways to lower. >> i just want to know more about steve's evening. where are you going? >> i've already said too much. [ laughter ] steve is on to a point here. there are soing streaming optioning, including one bid our parent company, comcast or nbc universal. if you were to sign up for all

of them, you're spending what you spent for the cable bundle >> yeah, but you know what i will say this. i always listen to mark mahaney. and when i look at a lot of the different growth areas of this company, this already tells me something a bit of a sneak preview. he, like, they are getting from a position of power. they started to accelerate some of the subscribers if they can charge us a bit more, that tells me a lot. it tells me they are putting money into content, but at the same time this is a company that over time, we have seen the earnings grow and grow and grow. because of that i think this is finally a company where it looks a bit more interesting steve is talking about it's sitting on one of those levels where it could bowen i think it actually -- this half hour goes by very fast i throw it was pretty good, with

a bit of a political metaphor. the bottom line is we're all going to die that's all you need to know. [ laughter ] a retail reckoning, consumer stocks taking a hit day. how should you trade these stocks gown? stick around for a special edition of "fast money." you like this? coming up at the top of the hour we will tackle your deepest burning, most urgent questions tweet us, and we might just answer you on air. we'll be bacinwok t amazing. jerry, you gotta to see this. seen it. trust me, after 15 walks... gets a little old. ugh

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"buzzkill. amplify online retail -- it hit its second lowest level since 2014 retail sales unexpectedly dropped nearly 2% last month nadine, your prognosis for retail >> there was a great piece today putting a cogent message today the explosive growth is gone two, people won't spend down all their savings. spending will settle the trend it's unlikely to be the same one, but it should be similar. there's a chart if you can pull it up. it looked at real discretionary spending versus growth in total labor income most likely that lower line of

income is heading up that was the problem with jpmorgan today it also means the retail spend is coming down we're going to be having one line come down, one line come up and you won't have the explosive growth, because that support system isn't going to be there anymore. and if the s&p isn't holding steady, people get nervous and some of the that spend doesn't get spend. we would be careful here we're going to go straight to the final trades. steve, what's your trade tonight? >> well, i'll texts about the evening later. my final trade is mp materials, my play on rare earth. it is volatile, so be careful. >> nadine, you're next >> we had a nice pop in gold, gld. the entry price has moved up, so

you don't have to wait for 166. >> pete, you are next. >> a target, i think it's at the levels you have to buy it agaagain. >> jeff, you round it out, brother. >> primoris. keep riding it higher. really fun to do with you, folks. don't go anywhere, "optioning action" is mi acongt you next your record label is taking off.

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that means it's time to optioning action here is what's on tap. . >> one by one, two by two, three by three, investors have bailed from the ark innovation fund with an options life raft. tony is saying there's a way to win even if that trend runs off steam. >> it doesn't matter if retail sale