spot at the moment again, we are just back to where we were in august. i think that's important to keep in mind. but you are going to also be waking up tomorrow and saying, the next day fed reaction is often a reversal and we are into resistance right now, just above 4,00. >> the news conference reaction brought a reversal but it is interesting to see how it shakes out. that's mike santoli's last word. thank you. "fast money" is now. right now on fast, meta more to sis facebook soaring after a hefty buy back in a new era of spending restraint after hours the stock is up almost 18% after bottoming we have a deep dive on meta coming up. plus, jerome powell says he is seeing signs they're starting to win the war on inflation. is it a dovish take? dovish enough to keep the stock market rallying. later, apple and amazon on deck, tradesing those two tech titans ahead of tomorrow's earnings

then would you rather. dividends stocks versus boring money market accounts. which is better? i'm melissa lee. a full fed day desk for you tonight. tim seymour, guy adami we have much more but we have to start off with a major post fed turn around for the market, the nasdaq soaring 2% after the central bank further slowed the rate hikes to a quarter of a percent. the s&p firmly in the green, up over a percent even the dow, down more than 500 points at its low today, managed to eke out a gain. meantime, treasury yield pulled back sharply with the ten-year pulling below 3.4% first time in three weeks and the dollar fell to the lowest level since last april. does today's action suggest the fed has broken the back of the bears. guy, we were postulating that

the fed has nothing to gain by being dovish what did we get today? >> it is interesting i don't think they were particularly dovish, its interpretation i need no help looking stupid but when you see a reaction like we saw today, it reemphasizes exactly that i mean i thought today when the market was down 400, i'm like, all right, they've basically said what they needed to say, the markets will accelerate to the downside no, the reversal today was interesting. look, we have seen good semi numbers, tim talked about it for a while. that's encouraging some of the data is encouraging in so much that it gives the fed air cover. i sit here at 4100 s&p and say we are trading close to 19 1/2 times next year's numbers, assuming we hit those numbers which i don't think is going to happen this market went from being reasonable to being expensive over the last week and a half. >> it is almost like dovishness than hawkishness is in the eyes of the beholder because i heard things like substantially more evidence that it was tamed i heard, i don't see cutting

rates later this year and yet we got this outcome what do you think, michael >> i agree with you. i found him to be extremely dovish >> dovish? dovish i expected him to come in guns blazing, saying, listen, markets, you have gotten way too ahead of yourself. you know, inflation is still a problem, right you saw the employment cost index. yes, on a three-month run rate tim and i were talking about this earlier, you come down a lot. but on a year-over-year basis still north of 5%. the labor market is still hot. look at the jolts data today i don't think you can declare victory at this point, and though he said we're not it seemed like he did by the nature of the fact he didn't come in and hammer the markets >> well, he came in, and let's parse every word, actually go back to the videotape as warner wolf would say it really is, when the videotape was a special moment we didn't get a lot of videotape when we have a lot of individual crow tape in this world.

you have a case where five minutes into the presser you have the s&p down 1.5% we had a 250 basis point inter day, almost a 2% reversal on the s&p, and we know what it did. he started by pointing out we are slowing the pace and down shifting, but implied and even said in that is we still have a lot more to go now, this is a market that basically has the fed priced in one more 25, and then we are done it is a market that has the fed pricing in 40 bips of cuts it is actually now 35 or so. but, again, later on in the press conference what were the keys that had the market take off? one was the financial conditions dynamic. he does not care as long as inflation is on a 2% path and, in fact, as the data has read. the divergence between the market and the fed, he doesn't seem to care those are really important things and, again, at a time when the market often is -- right, and i'm probably going to say that the market is right, but i tell you, i don't think the fed wants to go this year at

all in terms of cutting rates. but the dialogue today from powell said either way, i'm more focused on the labor market right now. the labor market is something we have to worry about. everything else is falling in line >> yeah. so just to continue this sports analogy, you know how when you watch football, which i know you do often >> all the time. >> and the half is over and thy get the coaches to say a couple of words before they go into the tunnel the coach's team is ahead. they get that coach, yeah, we're very happy, the defense was good but we have a whole second half and it is too early to call it i actually didn't think he was at dovish as the market seemed to think i thought that -- to tim's point, i don't see this easing >> no, no way. >> at the end of the year. so i still think inflation needs to come in so, i don't know, i don't think it was -- i was not -- if you told me exactly what he was going to say and exactly what they did, i would not have said this will be the outcome of 300, 400 point jump from where the

market was trading before that. >> karen, do you think we have a full half of football to play here >> i think we do we still have got inflation. >> yeah. >> we haven't had china open, so that could be inflationary as well so, you know, the game is definitely not over. >> the thing is, if the market is pricing in cuts for later this year, right, the bond market - >> and it is >> -- that's not good for risk this is what i'm not reconciling. how do you have 19 times multiple with the bond market saying that growth is going to be so bad that the fed is going to actually have to cut rates. >> because all equity sees is lower yields equals higher risk. >> that's right. they're not seeing the forest for the trees. >> exactly >> you know, carter worth talks about this and we have thought yields would go lower and they're moving at least in the ten-year and the inversion continues to widen out before our eyes it has gone from 49 basis points back to over 70 basis points i think it is on its way to 1%,

3 1/4, or whatever it is it is looser than it has been -- >> he was asked that during the press conference about that. >> he was not earnest about that because financial conditions are clearly looser than in quite sometime >> a couple of things important about this week including amd yesterday who was almost -- you know, they were almost a high multiple internet stock today. this is one of the biggest semiconductor companies in the world that was up 12.5% today but rallied -- after being up into the press release, rallied another 5% on what he said so the question is, amd who yesterday pointed out, look, the first half will be tough, we have an inventory glut, but by the second half of the year we see data center and enterprise customers actually reaccelerating the question is where should the equity markets be? what we're seeing, and usually at the point in the market where you should be in a recessionary environment, where the market is almost having a relief rally on numbers that are actually slightly better than what were

bad numbers. this quarter that's exactly what we're getting. these revisions, there's nothing good about the earnings season here let's be clear it has been better than expected but it has been downward and this is what the phenomenon is i think this is where the bears are going to say, look, it comes back to earnings, it comes back to multiples and we don't have them here. i can just tell you from market positioning and from where we've been and from a peak dollar, peak rates, peak inflation, peak fed, this gives the market everything it needs. >> we opened the show with a question and that is did jerome powell just break the back of the bears. did he did he or do you sell this rally? is this a rally to be sold >> let me be clear what i said was and i have been saying for a while, you are going to see him move one way or another in a meaningful way off this to the upside it is probably trading to the august highs. i'm not bullish but it seems to be what is going on here did it break the back? no i don't want to speak for mike wilson he will come on and say to a certain extent they anticipated this probably not to the extreme

we're seeing, but i thought they could see some enthusiasm earlier in the year but earnings were going to matter by the way, earnings do matter, valuations do matter a yield curve that's going to invert i think to 1% negative still matters. short term, absolutely broken the back i'm sitting here scratching my head, but i think people who can see the forest for the trees say,you know, this is an opportunity to sell stocks from we will talk about the fed later on want to get to meta, surging nearly 19% after the company topped estimates it announced a $40 billion stock buy back the conference call getting started in the last few minutes. julia boorstin is listening in she has the number abouts. >> melissa, meta's revenue beat expectations of $31.5 billion. facebook's daily active users hit 2 billion for the first time ever the company added 2 million active users in the saturated u.s. and canada market with average user up, 24 cent better

than anticipated the company took a billion dollar reinstruction charge which meant that the earnings numbers weren't comparable meta pulled down expense guidance between 89 and 95 billion dollars down from prior guidance between 94 and 100 billion. i spoke with meta cfo susan li, she called this the year of efficiency she told me that reels, though still a revenue headwind, are on track to becoming revenue neutral at the end of this year or early next year as for concerns about the ad market, she said, of course, it does continue to be uncertain, but she sees opportunity in the shift from off-line to online ads and says they are doing everything they can to be competitive. melissa, i'm going to jump back on that call. >> thank you, julia boorstin if this stock gain holds in the regular session, this would be the biggest one-day jump in shares of meta on the books. it is an extraordinary move. karen, what do you do here >> well, relief, a big exhale.

you know, we talked for a while about is zuckerberg going to change his tune about how much they're going to spend that seems to be clear, right. at this valuation, you know, every $10 billion helps. so this is -- i mean this is really, really good news the buy back, i like that although they still -- i think they had 18 billion left on the prior buy back so it is an additional 2 or 22 still, that's good he cares about share olders. then the business itself, the revenue line is very good. i mean i was concerned things were getting softer, particularly on the heels of snap we see google is trading up three or four points in the market, the after market this is very good news it is a big sigh of relief it is difficult because it has bounced so much, right and that's sort of a move in a company the size of meta to be up 100% from november 3rd -- >> and your argument --. >> it was down 74 though >> absolutely. it should never have been there.

the question is, all right, if you go out long, you bought it right here so i guess i bought it right here >> right >> do you hold it, should you hold it? >> well, as someone that's long facebook and been long somewhere over the last three or four months, i think you are selling upside calls here. at a minimum you are taking advantage of the upside call because i think the low hanging fruit was not only hearing about cut in spending, we all know we have been very concerned i said a few months ago i thought if mark came out and said i'm actually getting rid of the metaverse that actually the stock would rip. a lot of peoplesaid there's no way he can do it he will never do that, what he is slowly do is backing off the aggressive spend here. there's been a couple of things. they've also talked about a $2 billion hold back on data center spend. they talked about capex coming in 30 to 33 billion. these are all great numbers. a $40 billion buy back cements the concept of a company that wants to make money and return some of the money back to shareholders which is everything we needed to hear, especially on a day when you hear they have

2.96 billion maus. this is massive. no matter what you want to say and how uncool facebook is, it is the platform here and it is obviously other platforms including messenger and reels and things that are important. >> monthly active users. >> average active users. >> and that's the big rpu. >> i think guy likes that word more than i do he uses it and attaches it to me >> i don't attach anything >> rpu this, rpu that. >> what is the time? 5:13 at what point do we get the press release from the white house chastising facebook for buying back $40 billion worth -- >> of stock. >> it is actually a serious question i mean i guess they're allowed to do it, but if you are in the energy sector you are not. so that's going to be interesting to see, number one yes, it is - >> and that's a rhetorical question, by the way, because we know it is never going to happen >> it is never going to happen the metrics are great. context is important but rpus, $58.78 in the united

states this same last year was north of $60. so, yeah, there are a lot of things to like here. for you armchair technicians out there, and i'm sure there's some of them. >> many. >> the gap higher and the volume we're going to trade tomorrow, which is probably close to, i don't know, 150 to 200 million shares, sets us up for a little gap island reversal, dogie star for you playing the home game, just pointing that out >> i don't know what just happened >> can you explain that. >> jargon, jargon. wow. >> we'll have carter on tomorrow but basically if you look at a chart, it will have this little gap above everything else. it will be this little star formation. >> okay. >> subsequently we can see a reversal lower that's extraordinarily - >> what did you call it? >> dogie star. put it out on a poll do you think i make this up. i have done it for how many years? >> forever >> it is like the death star >> by the way, correction. i said it would be the biggest percent gain on record it is biggest in ten years

ten years ago it had a gain of 29%. >> when it was getting mobile together >> right when it started to show profitability. it went from a concept to a profitable company. >> anyway, for more on meta's fourth quarter let's bring in deep water as asset manager gene munster. at 12:30 you tweeted you thought december would be ugly for meta and now we have this what do you make of all of this? >> i did think the quarter was going to be ugly in a year over year, down year-over-year basis. i also talked about the easing numbers going forward, and that was going to be one of the focuses. what i make of this is the results essentially put investors at ease. what investors need to know is that facebook, meta is getting back on their footing. what this translates to is revenue guidance effectively in line with the street, which addresses the macro ad concern separately on a dau number, you were just talking about it but i want to put a finer point on that daus are up 3%, 4% year over

year, but what really matters is u.s. and europe daus those were up about 1% 70% of revenue comes from the second piece that they're getting back on their solid footing is that daus in their most important regions are okay, which means that tiktok is being held in check. so this allows investors toloo at the path forward here which is going to be improving growth rates. that's what i make of this just if i can quickly add a little piece relative to the earnings call, what zuckerberg said, i was only able to join the first ten minutes so far, but this plays into the b improving numbers and why it is important on their focus on efficiency this year zuckerberg is saying exactly what investors want to hear. he kicks off the call, his first sentence, 2023 will be a focus on efficiencies. their priorities, i mean i almost had to do a double take on this here first priority was ai currently in products and ai in future products second was improving reels third was adding more features

to message if you notice, we vice president hit metaverse yet and i never heard metaverse. i'm sure he talked about it by the time i had to jump off here. but what that tells me is zuckerberg gets it, and that's important. >> so, gene, thanks for coming on so if we think that zuckerberg has found religion, which is a reasonable interpretation, what is it worth? how do you think about valuing meta >> so if you factor in the 18% move hereinafter hours and what is likely going to happen to earnings, because earnings numbers will be coming up by 17% based on the $5 billion and lower expenses they are talking about for 2023 if you put it all together it will be trading about 15 times 2023 it has had a huge move it has doubled it is still trading on a relatively reasonable valuation relative to google is at 19 times, microsoft is at 29 times. so when you put all of that together, karen, you know, i think that this -- that a lot of faang -- i'm not saying we're in

the clear for 2023 here, but it is probably going to gravitate to that low to high 20s number, and that would kind of imply if you just do the rough math around just a multiple expansion, that can imply kind of 30% upside from where we are at >> how do you extrapolate this to others, gene? we are seeing the move in google, for instance is it this facebook specific >> yeah, it is a big -- i mean everyone, present company included here, nervous about what the macro is. we're just not seeing it i think it is going to be relief it sets a higher bar obviously for google what is most important even beyond the advertising number is that these behemoths continue to be sbookt. i think it is a positive read on apple because they're intact, it is a positive read on google hard not to be optimistic after seeing their guidance. >> gene, we will check in with you later. let us know if you hear anything from the call. >> will do

gene munster that's great news, good news for the biggest part of the market, michael, mr. bear. >> listen, you kind of have these companies out there, the large cap tech that everybody loves to say are real companies, right. they generate real cash. they generate real profits and then you have a lot of companies out there that have run a lot who generate no profits, right that's what really concerns me i mean i look at what the market is doing today and it feels very much like 2019, and the market is saying the fed is going to pivot and we're going back down to zero interest rates, and the speculative fervor you sort of had with zero interest rates takes off and where does that manifest itself? it manifests itself in crypto, spec tech, nonprofitable companies and that's running with facebook and those names. i'm skeptical. i think a lot of this is driven by the expectation for fed policy listen, good earnings are good

earnings and doing good things are doing good things. it will be name specific at well >> yeah, the run has been extraordinary and karen pointed it on. given what snap said, you had to get out of facebook ahead of it. look, clearly wrong. at this point what are you doing? does it make sense to continue to hold? again, if you see a huge volume day tomorrow, which you will, a lot is going to turn i mean i think the prudent thing to do is take money off the table and actually look to potentially sell this thing short. >> we are up 19% almost on shares of meta with the conference call still going on we will keep you posted. coming up next, did markets get too excited after today's fed decision we will be joined by dennis lockhart with his take on what is ahead the semis continue to shine. what is behind this move higher. we will bring you that trade and more when "fast money" returns prizefighter... ...meets trailblazer.

♪ ♪ classic meets modern. ♪ at morgan stanley, we may seem like a contradiction...and we are. ♪ ♪ at 87 years old, we still see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities ♪ and relentlessly working with you to make them real. ♪ partnering to unlock new ideas, ♪ to create new legacies, ♪ to research, innovate, collaborate, ♪ and build the way to transform a company, industry, economy, generation.

♪ because grit and vision working in lockstep puts you on the path to your full potential. ♪

welcome back to "fast money. amd surging after yesterday's earnings nvidia coming along for the ride, up more than 7%. semi stocks up more than 22% already this year. karen, how do you feel about the

gains? >> kind of frothy. you know, we talked about yesterday when amd reported and it was good. you know, it wasn't the greatest outlook. i thought there was maybe a little bit of conservatism there. why not, right it traded well in the after market, up a couple of bucks this extra seven, i'm not sure why that -- i mean obviously because people think, you know, the fed is going to turn around, the fed is super dovish. i don't fully agree with that. what to do with the stock? i'm still hanging on to it it is not cheap. i like it more that nvidia. >> if you believe the fed is going to ease up and things are going to be pretty good. the economy is going to be all right. then you want to be in a cyclical like semiconductors, right? this is exactly where you want to be. >> well, it is back to the football game karen is coaching, you have a case where you probably have four different quarters where the economic cycle is going and you have four different market bases, too with semis they're such early cycle companies we also saw them fall under pressure a lot faster they were the ones with the

inventory glut they are the ones that are going to work through that, that's one of the reasons people are encouraged by amd. the question is, even the second half strength you see is it more reacceleration after working through a terrible headwind? it is not all systems go because if it was you would be buying them all now amd is up 17% in the last sessions i talked about how semis have performed on the s&p that makes sense on a level. this is kind of the hallmark for it i think you are going to get -- it is four quarters of football, and i think we still have more to play. >> nvidia is now trading at 18 times revenue. it is trading at 50 times forward eps which it has done in the past it is not like it is crazy it has been there before to tim's point, this is a stock now up over 100% since the lows we have seen it reports i think on the 22nd of february. we will see. >> this is a dogie candle?

>> no, it is not it is an orderly move. i asked you to put it on a twitter machine, what a doenjjie star >> okay. do you want to own cyclical? do you follow economic cycles or profit cycles? at the end of the day equity should follow private cycles and you don't buy cyclicality until the cycle is bottoming we are just starting earnings session and that's what bothers us >> if you don't believe we are starting an earnings recession -- >> time will tell. >> you guys have had a great call and that's the right call, except the fact stocks trade on momentum and on perception and positioning and a little bit of a catalyst will get you. i agree, the earnings are not there. >> coming up, big tech on deck apple and amazons ready to report tomorrow. we will have that next you are watching "fast money" from the nasdaq market site in

times square ba rhtft ts.ckig aerhi so cdw helped us deploy mac, supercharged by apple silicon. ♪♪ built-in security protects me from malware and forgotten passwords. i've got enough battery life to get me halfway around the globe. and lower overall costs leave more money in our budget. for more practical furniture? this was supposed to be hip. no. can you help me up? with mac, configured by cdw, a solution that works for everyone isn't just possible, it's powerful.

welcome back to "fast money. take a look at lqd, the investment grade corporate bond etf jumping after the fed's latest rate hike karen has been short this one. >> yes >> what is on that >> that feds are really tight, spreads are tight. if the economy is going to slow, it is not a giant leap to think, well, credit spreads will expand and we haven't seen that at all. so it is also somewhat of a hedge. i do own banks but i think independently, i think that's a pretty good work >> you like that trade. >> we love that trade. you have never really seen a situation where the investment

grade yield is so close to the two-year yield you got to ask yourself a question why am i going to take liquidity risk, volatility risk, business risk, credit risk when i can get the same yield at the front end of the treasury curve and take none of that risk, right this is what bothers me with credit you have a situation we're about to go into an earnings recession. the vix is trading at 17 times and vix is a representation of business risk. all that has to happen if the vixs from 17 to 22, 23, spreads are going to widen i see no value in credit at the moment >> it is interesting back in july, you know, of last summer when people were pointing out that at some point this -- as rates are moving higher people were pointing out it will be one of the greatest opportunities for yield investors, especially in credit. at that point high yield spreads moved out to 6%. those high yield spreads are back, what are they, 4.30, 4.25? >> yes >> so markets tend to, again, jump ahead of where you want to be i believe moving up the credit curve is what investors should

be doing you should be finding companies generating free cash flow with pristine balance sheets. you can get paid for that on a relative basis to where we were back then, no. on a yield perspective it is a great time for yield companies that have to pay you more money. >> we were talking with chief u.s. equity strategist. >> and he was talking about if value in yields and bonds. >> exactly, over stocks. >> listen, karen has been on this trade the lqd which for a myriad of different reasons traded significantly lower than the lows we saw in march, april of 2020 now we are back to the march, april 2020 lows. a lot has to do with interest rates coming down, i get it. credit to me is still a big concern nobody is paying attention to probably rightly so because the equity market is back on solid footing. given everything that is going on it feels like something is going to break in the credit market at some point, almost by definition given the level of tightening we are seeing, given the balance sheets being reduced and given the mark, the

complacency on top of everything else >> that's the fourth quarter of this game. no, really ultimately if you have -- well, i know we are killing this one as we like to do we used to beat jokes silly in my house and they get funnier and funnier. this is probably not that funny. you get to a place where lower growth puts a credit stress on people in addition to the move we had phases of the market. we were pricing about the fed and then pricing in recession dynamics we will price in credit at some point. >> before we get to that point doesn't the fed step in? i don't know what the analogy would be time out >> nice job. >> i think it depends -- >> exactly >> and why do they pivot >> they might throw a flag >> it depends on how high spreads go >> they don't want things to break in the credit markets. >> it depends on how wide spreads get. they don't want credit markets to completely freeze, certainly. but, you know, that's going to be a pretty terrible environment if they do so. cyclicality is not going to hold up well in that case >> are you laughing at - >> i don't want the eagles to win the super bowl

it might happen. there are a lot of things i don't want to happen that are probably going to happen i don't want the mets to win a game next year they are probably going to win a game next year >> you are settings yourself up for disappointment, pal. coming up, earnings for alphabet, amazon and apple and more first, markets taking today's fed hike in stride but can the rmins continue foer atlanta fed president dennis lockhart will tell us what is next more "fast money" coming up next

lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

welcome back to "fast money. another check on how market kicked off february. major indices closing higher with the nasdaq up 2 percent after jerome powell's comments even the dow rebounding from a 505 point loss to close slightly in the green financial the only sector to post losses today, all about two stocks in the group closing down for the day. the next guest questions the overall market's reaction to the day's fed's decision dennis lockhart was atlanta fed president during the financial crisis it is always great to get your take did you hear lack of hawkishness? because i think lack of hawkishness in this environment is dovishness. >> it may be, but what i heard was a measured, fairly balanced,

noncommittal in many respects, posture there. the committee is feeling its way along now for this year and taking it meeting by meeting i think for sure we will see a rate increase in march, but after that a question mark i think j. powell was invited to give forward guidance and really didn't give much in the way of forward guidance so, you know, i thought it was a balanced approach and, therefore, i didn't hear extreme dovishness i just heard, you know, some hawkish, some dovish kinds of statements if you want to interpret things that way. >> he was also very diplomatic in how he answered a question specifically about financial conditions and how they are looser these days, and the question -- the person who posed the question pointed to the stock market for one, rates coming down on the ten-year yield, et cetera you know, from the perch of a former fed president, is the market reaction, is that

something that the fed actually watches? do you think that it -- you know, that j. powell was glad to see the nasdaq rally 2% off the back of his comments is that the message he really wanted to send >> well, he's probably not happy with anything that you would interpret as easing, quite frankly, in the battle against inflation. but, yes, the committee watches financial conditions, but i don't believe the committee thinks they can do much about financial conditions as determined by markets. and so they try to do their very best with the policy setting, try to depict the economy and to some extent give a sense of the future outlook and so forth, but they really can't try to get into a point-counterpoint with markets to tighten longer term rate for example >> mr. lockhart, it is karen finerman thanks for okay. let me ask you,

in terms of inflation and the labor market, what other metrics do you think those two things have to get to for them to be able to not just pause but even consider reversing >> well, i thought there was a very interesting piece of information in this meeting, and that is that to some extent j powell dismissed annualizing the month-over-month numbers and concluding we were at 2.5% he went into some explanation that economists -- and i am sure that includes fed economists -- believe that there's a transitory element in goods inflation at that kind of annualized month-over-month 2.5% rate he seemed to settle on 4% as their sense of the underlying inflation rate that clearly is too high i think when they get to 3% or lower, then they can begin to think -- conceivably begin to think about reprioritizing a

little bit and pausing but if they believe the underlying is 4%, that is clearly too high >> dennis, you know, when we think about the financial conditions, the market reaction, you know, the fact that the bond market is pricing in cuts for later this year, you know, i appreciate that the committee can't react and do a point-counterpoint with the markets every meeting, but they must hate the fact they're pricing in cuts even though he said, listen, there's no expectation for cuts later this year what would have been your communication strategy to say, if you were in his shoes, to say, listen, we're not cutting, we don't know why the market assumes we will? it seems there is a credibility problem here and i think the fed needs to have credibility to effectively get the point across >> you know, there were a couple of interesting moments in the

press conference, one of which for me was that he came out and he said, "we have different jobs we, the central back, have one job and the markets have -- market practitioners have another job. he was in so many words saying, i understand different perspectives he also said, you know, it would be ideal if the markets are aligned with the intent of policy, but the markets aren't aligned with the spent of policy i think he did about as much as he could do to try to jaw bone the markets into lining up with the fed. at the same time this is just an outlook based on what they can see today. there were a number of occasions in which he said, you know, if inflation comes down faster than we think, we'll react. therefore, the markets may not be wrong at the end of the day he acknowledged that >> dennis, when i got the notes, one sentence jumped out at me, the notes from the preinterview

you did with one of our producers. you said, as a shareholder you are pleased the market had an enthusiastic reaction to the press conference so your hold stocks. i'm wondering if -- i don't know if this is taboo to ask a former fed president but i'm going to go ahead and ask it because you opened the door saying you are a shareholder. do you trade your portfolio and what is your view on the markets given what you know about the fed and where you think the fed is going to go >> well, i am very much long equities in my own personal money, and even at my advanced stage i'm almost 100% equity having said that, i am really moving toward a passive portfolio with essentially etfs and low expense ratio kinds of etfs i'm actually transitioning at the moment, andthat's -- therefore, i'm not going to take a position that i can predict the market i am just going to try to invest in america's long-term

prosperity and long-term economic strength and leave it at that. >> 100% equities though, that's a -- that's a bold statement we just had a strategist from morgan stanley yesterday tell us that he's recommending bonds because he is telling his clients to look for yield. >> all of the advisers, all of the advisers tell me that i've got it wrong, but i just -- that's what i've been for years, and so i'm going to stick with that approach. >> can i ask you one more question that is within this 100% equity portfolio, dennis, like what percentage is technology i mean are you like riding meta with the 19% gain in the after hours session, are you cheering that on? what does the lockhart portfolio look like? >> it is pretty well balanced actually you know, i am just not -- i don't believe i can be a stock picker i don't believe most people can be stock pickers, and so i'm moving -- as i say, i'm moving

in the direction of passive index funds. it is balanced from small cap to mid cap to large cap, growth value. i'm not believing that i can be smarter than the market for the coming years >> all right fair enough. dennis, pleasure to speak with you. hope you will come back on the show dennis lockhart, former atlanta fed president. >> thank you that was good, missy we should have him on and test -- good for him >> so if he has been doing this for a long time, he has done very well because the stock market has outperformed over a period of time it kind of explains the divergence between the fed and the markets. it really -- ultimately the argument is that the markets are going to do what they're going to do and they're not necessarily totally anchored in where the economy is or where the earning cycle is, but equities have provenen to win. >> i heard hawkish, but i'm

staying long equities. i think so many people out there are sick and tired of being negative that now, you know what they're just throwing -- i believe we are sort of in that caution to the wind. the fed is going to do what they want to do on the other hand you can't bet against the united states. that's at the point of the cycle we are at right now coming up, dividend decisions. should you bet on high-yield names or give money markets a second look? the best place for your money ahead. plus, the busiest season of earnings otrk n acand what to expect when results cross when "fast money" returns (swords clashing)

-had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. this tiny payment thing-

is a giant pain! hi ladies! alex from u.s. bank! can she help? how about a comprehensive point of sale system... that can track inventory, manage schedules- and customize orders? that's what u.s. bank business essentials is for. (oven explosion) what about a new oven, can u.s. bank help us there? we can serve loans in as fast as 12 minutes. that would be a big help! huge! jumbo! ginormous! woo! -woo! finding ways to make your business boom. that's what u.s. bank is for. we'll get there together. (swords clashing) -had enough? -no... arthritis. here. aspercreme arthritis. full prescription-strength? reduces inflammation? thank the gods. don't thank them too soon. kick pain in the aspercreme. the first time your sales reached 100k was also the first time you hit this note... ( screams in joy) save 20% with the lowest transaction fees and keep more of what you make. with a partner that always puts you first. godaddy. tools and support for every small business first.

welcome back to "fast money. with recession worries still top of mind, investors increasingly are looking for defensive plays. one possibility, high dividend stocks devon energy, altria, at&t and vf corp. have some of the highest yields, but yields in the money markets are soaring to levels not seen since the financial crisis look at that 4.15%. we wanted to ask - >> would you rather! are we supposed to do that >> trade it or - >> somebody -- >> it just got very silent >> that was wrap it or - >> would you rather. we asked because we are talking about yield.

do you want to take the risk of losing money in the stock collecting that yield or just get 4% on your money market? >> look, at&t is the perfect example if you are hanging around for a dividend you have been destroyed, right. that stock, they've -- they've destroyed so much capital there. altria is another story for me and i'm long altria. altria is a name i have been long probably six years. there have been cycles here and i think i have been adding to altria over the last few months, over the last couple of weeks. into numbers today that were fantastic. then i was selling upside calls to goose up that yield so i am constructive on their business i'm constructive on the durability of their earnings profile in a recessionary environment, the free cash that they generate. we all know what is going on with the tobacco industry. it is well-flagged and well-priced in that's with altria is a company that has proven they know how to do this. >> by the way, nobody here has ever recommended a stock solely based on the dividend yield. let's be clear on that, number one. but if you believe in the fundamental company's long-term prospects it could be a booster.

>> and devon energy is where i would go because i think energy works in this environment. it has pulled back from the recent all-time high we have seen that dividend yield if i'm right will go down as stocks higher. i think they report on the 22nd. again, the downstream play is at work work yes, it has pulled ♪

prizefighter... ...meets trailblazer. ♪ ♪ classic meets modern. ♪ at morgan stanley, we may seem like a contradiction...and we are. ♪ ♪ at 87 years old, we still see the world with the wonder of new eyes, ♪ helping you discover untapped possibilities ♪ and relentlely working with you to make them real. ♪ partnering to unlock new ideas, ♪ to create new legacies, ♪ to research, innovate, collaborate, ♪ and build the way to transform a company,

industry, economy, generation. ♪ because grit and vision working in lkstep puts you on the path to your full potential. ♪

welcome back to "fast money. let's get an update from meta's earnings call. gene munster of deep water asset management has been listening in gene, what is the latest >> melissa, zuckerberg is the

only founder/ceo of a large-cap tech company and he is teachable. this call has all been about efficiency and specifically around reality labs which is a big surprise because it has been a big cause for him. new ai products this year. if you read between the lines, they're going to be reducing head count that may come through attrition or through further lay-offs. i hope it is the former, but he is definitely shifted script and given investors what they want to hear. >> gene, thanks for the update gene munster of deep water up 19% in the after hours session. let's get to amazon though one options trader getting bullish on the stock in a big way. brian stutland joins us with the action brian. >> they certainly are. outpacing points 2.5 to one. normally it is one-to-one. traders are expecting an 8.6% move in the stock. this call trader expecting a greater move than that they were a seller of 60,000 fed

90 calls they bought at the same time 75,000 june 95 calls, with this kind of strayed structure this trader wants to see the stock move about 15% either direction, either 15% on the upside come june or protect themselves against a big down move, below there $90 looks like they were rolling them into june on the 5 st95 st. maybe amazon is the next big mover tomorrow night >> 15% don't seem so big in light of meta's 18% tonight. brian, thanks. the full show is friday, 5:30 p.m. eastern time. up next, "final trade. "options action" is sponsored by -

lomita feed is 101 years old this year and counting. i'm bill lockwood, current caretaker and owner. when covid hit, we had some challenges like a lot of businesses did. i heard about the payroll tax refund, it allowed us to keep the amount of people that we needed and the people that have been here taking care of us. see if your business may qualify. go to getrefunds.com. ♪♪ i was having challenges with my old bank. lots of red flags. yellow ones, too. fees, penalties... unnecessary fees! ...playing dirty. so i broke up with bad banking and moved on with sofi checking and savings. now, i earn higher interest on all my money,

and pay no account fees. feels good to get my money right. banker disqualified! break up with bad banking. get up to 3.75% interest, and earn up to $250 when you set up direct deposit. sofi. get your money right.

final trade time tim seymour. >> we are talking about altria and i think looking at the companies increasing free crash flow, i like them. >> karen >> i'm going home with the girl that brought me, alphabet.

>> michael >> here in november i said long-term treasuries, about 90 basis points, the fed is going to slow. i like long-term treasuries, tlh. >> guy >> mining. >> he's all on ocinstks thanks for watchin my mansion 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'm just trying to make you a little money my job is not just to entertain you but to educate, teach you. so-call me at 800-743-cnbc or tweet me @jimcramer. the worst part of earning season isn't when i cover a